Lcc journal vol2 issue1 2013

JOURNAL OF CONTEMPORARY DEVELOPMENT AND MANAGEMENT STUDIES, VOL. II, Issue 1, 2013

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JOURNAL OF CONTEMPORARY DEVELOPMENT AND MANAGEMENT STUDIES, VOL. II, Issue 1, 2013

JCDMS, a biannual journal Published by London Churchill College London E1 2JA United Kingdom Copyright @ London Churchill College

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JOURNAL OF CONTEMPORARY DEVELOPMENT AND MANAGEMENT STUDIES, VOL. II, Issue 1, 2013

Editorial Board Dr. Dababrata Chowdhury

-Chief Editor

Dr. Mohamed Asim

- Member

Ms. Maria Kordowicz

- Member

Mrs. Kristina Andruskeviciute

- Member

Mr. Rahaman Hasan

- Member

Assistant Editors:

Jane Layzell Russell Kabir Nazmus Sakib R N Chowdhury

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EDITORIAL NOTE Welcome again to the latest edition of the Journal of Contemporary Development and Management Studies (JCDMS). This issue, embedded with both theoretical and empirical works, touches upon a number of relevant issues. With articles ranging from management, economics to information technology, this journal is a source of quality research and insight.

Impact of Information and Technology on Customer Service in Relation to Banks by Khurram Riaz explores the pivotal role of information technology in financial institutions. He explains how

advancement in IT has improved customer satisfaction and how it is related to employee performance and management performance.

Next, Chika Ugoji in Data Collection and Analysis in Management and Business Environment discusses key aspects of practical application of data collection methods and analysis by

conducting research in business, management and finance related organisation. To achieve this, Ms. Ugoji distinguished five different cases.

In Towards the Understanding of Human Resource Management Issues in the Current Hospitality Industry Dr. Samrat Hazra and Miss. Zsuzsanna Nemes investigates the issues in Human

Resource Management (HRM) in the current development of the hospitality industry worldwide. It assesses both the advantages and disadvantages of the recent development in approaches to HRM issues, proposes recommendations for industries and academics.

Industrial Entrepreneurship Led Economic Growth: an Empirical Analysis of Contemporary Industrial Entrepreneurship Trends Contributing to Economic Growth in Bangladesh by A.K.M.A Patwary explores how economic growth is driven and motivated by industrial entrepreneurship. The research discourses how entrepreneurship can be directly related to economic growth and how industrial entrepreneurship is at the heart of economic growth of Bangladesh.

Finally, in China‘s Investment and Trade in Africa: Implications for Development Chisomje Ezeaku analyses the economic relationship between China and Africa. It discusses foreign direct investments in African countries and the factors that determine the inflow of foreign direct investment into the continent. It also analyses China‘s outward foreign direct investment and the factors that affect that and China‘s trade and investments in Africa and the economic impacts of the investments.

I, on behalf of Editorial Board, would like to thank all contributors and staff who helped to publish this journal and hope you find this issue enlightening and informative.

Sincerely,

Kristina Andruskeviciute Member of Editorial Board

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JOURNAL OF CONTEMPORARY DEVELOPMENT AND MANAGEMENT STUDIES, VOL. II, Issue 1, 2013

CONTENTS Sr. No. 01.

TITLE AND NAME OF THE AUTHOR (S) China’s Investment and Trade in Africa: Implications for Development

Page No. 01

- Chisomje Ezeaku 02.

Impact of Information and Technology on Customer Service in Relation to Banks - Khurram Riaz

12

03.

Data Collection and Analysis in Management and Business Environment

18

- Chika Ugoji 04.

Towards the Understanding of Human Resource Management Issues in the Current Hospitality Industry

29

- Samrat Hazra and Zsuzsanna Nemes 05.

Industrial Entrepreneurship Led Economic Growth: an Empirical Analysis of Contemporary Industrial Entrepreneurship Trends Contributing to Economic Growth in Bangladesh

37

- A.K.M.A Patwary

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China’s Investment and Trade in Africa: Implications for Development

Chisomje Ezeaku1

ABSTRACT Trade and foreign direct investment has been growing as a result of globalisation. Africa though recently increasing the amount of trade and foreign direct investment inflows, still accounts for a small fraction of this. China is increasingly emerging as a top player in the world especially in the area of outward foreign investments and trade and the growth of China in the world economic affairs has been attracting a lot of attention from scholars. This paper investigates the economic relationship between China and Africa. It discusses foreign direct investments in African countries and the factors that determine the inflow of foreign direct investment into the continent. It also analyses China‘s outward foreign direct investment and the factors that affect that and China‘s trade and investments in Africa and the economic impacts of the investments.

Keywords: China, investment, trade, Africa, development.

INTRODUCTION African countries are faced with insufficient resources to embark on long term development and effect poverty reduction. Increasingly, attracting foreign direct investment (FDI) has taken a prominent place in the strategies of economic renewal being championed by the African policy makers at the national and international levels.

China‘s growth in recent years has transformed it from a poor nation to an emerging global power and one of the largest exporters of manufactured goods. China‘s transformation should be a model for Africa as it strives to move from a poor continent to a global player in economic activities.

In the last few decades, China has developed some interest in Africa which is home to a good percentage of the world‘s poorest people .China‘s initial interest in Africa has been shaped by need to obtain energy resources to boost economic development and has gradually grown into catering for international demand for its products. The effects of the investments in Africa can be diverse depending on the sectorial composition of the respective economies.

1

Chisomje Ezeaku is a lecturer in Business Economics at London Churchill College. Before this, he has worked as a Business Analyst and Consultant in a few small and medium sized firms. His research interests are on businesses, poverty and development in developing countries. He is a graduate of Nnamdi Azikiwe University Nigeria and City University London.

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Its economic relationship with Africa is growing at a breakneck pace with its 2012 trade being $198.5 billion compared to United States $108.9 billion which is Africa‘s main traditional trading partner and China‘s main competitor on the continent.

This paper will look at trade and investment relationships between China and Africa and what the African policy makers can do in order to increase the benefits accruing to them from this economic relationship. The remaining parts of this paper will discuss FDI in Africa, China‘s Foreign Direct Investment, China in Africa, policy recommendations and conclusion.

FDI in Africa The theoretical basis for studies on FDI and its impact on the economy derives from either neo-classical models of growth or endogenous growth models. In neoclassical models of growth, FDI increases the amount of investment and/or efficiency and leads to long-term level effects and medium-term transitional increases in growth. The new endogenous growth models consider long run growth as a function of technological progress and provide a framework in which FDI can permanently increase the rate of growth in the host economy through technology transfer, diffusion and spill over effects (Nair-Reichert and Weinhold, 2001).

Average annual flows of FDI to Africa doubled during the 1980s to $2.2 billion compared to the 1970s but increased significantly to $6.2 billion and $13.8 billion respectively during the 1990s and 2000-2003. In 2012, the FDI inflow into Africa was $50 billion which was a 5% increase on the previous year though there was a general fall in global FDI by 18% to $1.35 Trillion. On per capita basis, this translates into a more than fourfold increase compared to the 1980s (UNCTAD 2005). Furthermore, investments by collective investment funds (e.g. private equity and hedge funds) – relatively new sources of FDI – have been growing (UNCTAD 2006, 2010) but despite the substantial increase in global FDI recently, Africa has attracted relatively a small part of this Global FDI. Africa receives a very little share of total global flows and flows to developing countries and both have been on a steady downward trend for three decades; As of 2005 the continent accounted for just 2% to 3% of global flows, down from a peak of 6% in the mid-1970s and for less than 9% of developing country flows compared to an earlier peak of 28% in 1976 (UNCTAD 2005). But in recent times, some improvements have been witnessed though still small. Africa attracted 5.5% of global FDI in 2011 which is up from 4.5% in 2010 and 5.6% share in 2012.

Many factors affect the flow of FDI into Africa and different empirical researches in the past highlighted the different factors. According to Asiedu (2004, 2006), countries with large natural resources, large markets, good infrastructure, macroeconomic stability, efficient legal system and an educated labour force, are positive factors in attracting FDI. Bende-Nabende (2002) used a co-integration analysis of 19 African countries and concluded that the main China’s Investment and Trade in Africa: Implications for Development

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dominant factors that affect the FDI flow to Africa are market growth, policies that encourage export orientation and deliberate policies to encourage FDI and market size. Anyanwu (2012) finds that higher financial development has negative effect on FDI inflows while factors like openness to trade, market size and natural resources are positive factors that encourage inflow of FDI. Some of the factors mentioned are discussed below. (a) Market Size and Growth. According to Krugell (2005) and Bende-Nabende (2002), market size and growth has been proved to be one of the most determinants of FDI in Africa with the argument being that large market size and growth generates economies of scale and also improves market potentials. Africa, though still very poor, is home to about 1 billion people with growing middle class in many countries like South Africa, Nigeria, Angola, Botswana, Kenya among others and with the continent being on the lower scale of GDP per capita, there is a huge market and potential market for market seeking foreign direct investments. (b) Natural Resources. Different African countries are endowed with so many different natural resources that are being sort after by different countries and firms from all over the World. From Libya‘s, Nigerians and Angolan‘s oil, to diamonds in Sierra Leone and Ghana‘s gold among other resources like iron, copper, bauxite scattered all over the continent.

Onyeiwu and Shrestha (2004) states that the availability of natural resources have a positive relationship with FDI inflows into the continent, while Basu and Srinivasan (2002) states that the mining of high value minerals and petroleum is where Africa is particularly important as a host to FDI and where great potential for future FDI exists. (c) Labour Force. Countries with a large cheap and educated labour force attract a lot of foreign direct investment with the belief that highly educated personnel will be able to learn and adopt new technologies faster and that the cost of training and retraining will be cheaper.

Yasin (2005) states that Africa has abundant of cheap and educated labour force which has the positive effects of attracting FDI into the continent. (d) Infrastructural Development. Good infrastructures increase productivity of investments and therefore stimulate FDI inflows to a country. With the level of infrastructural development among many of the African countries being poor, this acts as a detriment towards the attraction of FDI inflows into the continent. Even among the FDI inflows into the continents, countries like South Africa (which has much better infrastructures) attracts more FDI than the countries with less infrastructural development. (e) Openness. The effect of Openness which is usually measured as the percentage of trade (import+export) to the GDP varies depending on the type of investment. Trade restrictions might encourage foreign investments from market seeking firms while it might discourage investments from export oriented firms which will prefer countries that are more open. Such empirical works as written by Asiedu (2001) suggest that trade openness in African countries China’s Investment and Trade in Africa: Implications for Development

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have a positive relationship with FDI inflows though it states that openness was less in SubSaharan Africa than the other regions.

China’s Foreign Direct Investment In recent times, China‘s financial presence in the world has grown substantially in terms of trade, investments made and other flows. With more than a trillion dollars in foreign reserves and increasing economic clout, it can send its companies abroad to acquire resources, technology, and exposure to more international market. It has become an important source of outward foreign direct investment. Starting from virtually no outward foreign direct investment (OFDI) in 1979, the initial year of its open door policy, it has accumulated over $90 billion of OFDI (OECD 2008). Though the open door policy of the late 1970‘s led to initial outward flow of FDI, it was the liberalisation associated with Deng Xiapings‘s tour of South China in 1992 and the Go Global strategy initiated in 1999 that led to a substantial boost in Chinese outward FDI (Buckley et al., 2007, Kolstad and Wiig, 2009). The strategy was to promote international operation of capable Chinese firms with a view to improving resource allocation and enhancing their international competitiveness (UNTCAD 2006).

China started publishing outward FDI consistent with IMF and OECD standards in 2003 with the value of the total FDI increasing more than six times in current times between 2003-2006 (Cheung and Qian, 2008). At the infant stage, China‘s FDI was biased towards tax heavens and Southeast Asian countries and are mostly conducted by state controlled enterprises (Morck et al., 2007). Currently, China‘s FDI targets firms across different sectors in all continents though heavily biased towards Asia and Latin America with statistics from Ministry of Commerce showing that in the late two thousand‘s, Asia, Latin America, and Africa accounted for 71%, 20% and 3% of the FDI stock while North America and Europe each accounted for less than 3% each. China‘s OFDI has been increasing significantly with the OFDI being $26.51 billion in 2007 and rising to $55.91 billion and $62.4 billion in 2008 and 2012 respectively.

The rapid development of the outward foreign direct investment from China, reflects its economic maturation and integration in the global market place as well as its need to expand abroad to supply the country with new markets, natural resources and advanced technology with the main driving force over the past five years being access to overseas energy resources and raw materials to support the high economic growth rate of the country (Diacom, 2012).

According to some past researches like Cai (1999), Deng (2004) the main motivations of China‘s OFDI are as follows; (a) Natural resources. With the booming and constant growth in the Chinese economy in the recent years, the Chinese government embarks on or supports Chinese firms on foreign investment as a way of securing the much needed domestically scarce endowments like petroleum, timber, minerals etc.

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(b) Market share. This is generally recognised as a significant determinant of FDI flows.

Chinese firms invest in foreign countries with significant market share in order to reap the advantages that are associated with this like better utilization of resources and enjoying the benefits of economies of scale. (c) Policy Liberalisation. According to Buckely et al. (2007), policies on international capital transfers, are likely to have influenced greatly patterns and trends in Chinese OFDI. With Deng Xiaoping‘s South China Tour in 1992 associated with significant domestic market liberalisation, which led to other sub national level authorities allowing the firms under their supervision to internationalise. (d) Technology and managerial skills. The impact of technological and managerial know how has been the subject of both theoretical and empirical research for some time with Kyrkilis and Pantelidis (2003) stating that the ability of firms to organize and produce technological inputs varies across countries according to characteristics such as market structure, government policies, legal and patent systems, availability of skills necessarily for the production of technology. Chinese firms have been investing in strategic acquisition of technological and managerial know how. This can be seen with recent acquisitions of foreign firms by Chinese firms like the acquisition of IBM personal computing business division by Lenovo-China‘s leading personal computer maker. (e) Strategic assets. According to Athreye and Kapur (2009), strategic assets are an important investment motivation for Chinese investors. The kind of strategic assets that attract the Chinese investors are intellectual properties like trademarks, brands and patents. (f) Macroeconomic variables. Economic variables like inflation rate, affect the decision of Chinese firms in investing abroad. Volatile and unpredictable inflation rate can make planning for investment difficult and uncertain, thereby making investment decisions difficult. Chinese firms avoid countries with such unstable economic conditions.

China in Africa China has been showing a lot of interest in Africa recently with trade between the two growing from $10.6 billion in 2000 to $73.3 billion in 2007 and $198.5 billion in 2012, though its percentage of total FDI on the continent is still very small. In 2009, Africa‘s total FDI was $517.4 billion while China‘s FDI was $9.33 billion which represented a 1.8% of the total FDI stock in Africa, though this improved slightly in 2011 with China‘s FDI being $14.

7 billion out of a total FDI stock of $570 billion in the continent which still represents a small percentage of 2.6. Even among China‘s outward FDI, the percentage that goes to Africa is still small compared to total with table 1 below showing a summary of the percentage of the China‘s outward FDI going to Africa between 2004 and 2010.

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Table 1 2004 2005 2006 2007 2008 2009 2010

China‘s FDI in Africa (% of China‘s Total FDI)

4.3

2.8

2.9

5.9

9.8

2.5

0.3

Source: UnctadStat Trade relations between China and Africa can be traced to the first Han emperors of the second Century BC as result of explorations by Chinese navigators. However, the period of explorations was followed by several centuries of disengagement from the world only for the interest to be renewed by the establishment of the People‘s Republic of China in 1949 (Renard, 2011). After the Bandung conference (first large scale Asian-African conference) held in Indonesia in 1955, China established its first diplomatic contact in Egypt in 1956 (Cheung et al., 2012). From this first diplomatic contact, China has been increasing its ties with the continent by offering economic and military support, though from a political perspective, it gave priority to high visible prestige projects like hospitals and stadiums. In the 1980s it changed its policy from being political to a market oriented strategy with the main focus being on obtaining energy resources to support its economic development. For a long period of time, North Africa was the main recipient of the investments followed by West Africa with the investment being mostly in oil, though this trend has changed recently with table 2 below showing the top ten recipients of the China‘s FDI in 2012.

Table 2 Country 1 2 3 4 5 6 7 8 9 10

Amount

Nigeria 15.4 Algeria 9.2 South Africa 6.6 D.R.Congo 6.5 Niger 5.2 Egypt 3.2 Libya 2.6 Zambia 2.4 Sudan 2.2 Ethiopia 1.9 Source: The Heritage Foundation

Initially, most of investments were in strategic sectors like natural resources and infrastructure and were done by state owned firms which receive grants from the government and favourable loans from state owned banks but recently, a lot of privately owned firms are investing heavily in the different African countries, though many of these private investments China’s Investment and Trade in Africa: Implications for Development

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are in the light industries like shoe manufacturing and food processing as well as retailing with data from China‘s Ministry of Commerce showing that private investment projects stands at 923 which is 55% of all Chinese OFDI on the continent (Shen, 2013). Chinese firms are also investing heavily in infrastructural development in many African countries targeting the key sectors like construction, telecommunication, power plants, airports, sea ports etc.

The case of infrastructural development is important as it is a very important driver of economic growth. According to Renard (2011), the main recipients in the infrastructural sector are Nigeria, Angola, Sudan and Ethiopia. For example, in 2013 some Chinese firms reported about embarking on the construction of four airport terminals in Nigeria which is to be financed by a low cost $1.1 billion loan given to the Nigerian government by China‘s government. Other examples of infrastructural projects are the 2007 financing of ten hydroelectric power projects with an estimated value of $3.3 billion across Africa and the announcement in March 2013 of China‘s intention to build a seaport in Tanzania which it intends to complete in 2017 with an estimated $10 billion investment. The effect of these investments varies across the continent which is a home for 53 countries.

With the continent made up of many countries with different development models, regimes and political histories, the effect of the investments will definitely vary across the different countries. There have been arguments about Chinese firms and officials engaging in corrupt practices with African government officials and businesses with reports of Chinese firms bribing officials to get mining licenses, leasing on land etc. According to 2011 bribe payers index by Transparency International (which is a ranking of the propensity of the world‘s 28 leading exporting countries to bribe when operating abroad), China was 27 on the list. Other issues raised by scholars and critics include the following: Job Creation. There are arguments that Chinese companies bring both skilled and unskilled workers from China as workforce for the works they do in Africa thereby denying Africans a lot of job opportunities that they would have benefited from which also leads to minimal transfer of production and managerial skills.

Competition. Low cost products from China are argued to flood the African market which stifles many of the African firms that cannot compete based on cost disadvantage thus making those firms to go out of business with its negative consequences on employment rate.

Particular examples are given in the textile and cloth manufacturing businesses where loads of African textile firms have become victims of China‘s low cost textile materials flooding the continent. This can lead to anti-Chinese feelings in these countries which can lead to civil unrests with its negative consequences.

Work Environment and Employment Relations. There is a huge accusation that Chinese firms do not treat their African workers well and many times, have poor working environment and conditions, with disregard to health and safety issues unlike their western counterparts who take human rights and health and safety issues more seriously.

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Despite all the concerns shown by the Africans, many argue that China‘s economic romance with Africa will be of overall positive development for the continent. In the next section, we will look at what the African countries can do to increase the terms and economic benefits coming out from these investments.

Policy Recommendations African governments can set up policies and institutions that will help them get out more economic benefits for themselves and their citizens from the Chinese economic relationships.

Some issues policy makers should seriously look at are: Corruption. This is still very rampant in Africa with African countries being 17 out of the top 40 most corrupt countries in the world in 2012 according to Transparency International.

They should fight corruption in their respective states and make their officials more accountable. It is only when they increase transparency and accountability can they combat the bribing of local officials by the Chinese representatives and business men. African governments should also demand from Chinese government officials to strictly punish their citizens or firms who are proved to be involved in bribery and corruption and have regulatory measures to discourage the bribery of foreign officials and citizens like the western countries do.

Job Creation. Some countries already have the minimum percentage of local labour force that should be employed in any project. This is a policy that the African countries should support and encourage in order to reap better employment benefits from the projects. In order for their citizens to be employable as well, the African countries should promote and actively engage educational policies that make their citizens more productive and trainable for easier acquisition of the production and managerial know how.

Competitiveness. Africa has abundant of cheap labour just like China but has the big competitive disadvantage of poor infrastructural development like constant power, good road and distribution network etc. The African countries should embark on massive infrastructural development especially in the area of electricity generation and distribution. Empirical works like Lee (2005) has shown that enhanced electricity supply in Africa improves efficiency which will go a long way in reducing production costs especially for the small and medium size firms thus making them competitive and reducing or stopping Africa being a dumping ground for Chinese low cost goods.

Terms of Trade. The African trade negotiators should have a better understanding that it is not a trade of equals and should negotiate for better terms on the transactions. Situations where natural resources are mined in Africa and shipped back to China without it being processed in Africa should be discouraged as the processing of the resources in Africa will

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add better economic values to Africans like increased production knowledge, extra government revenue through taxes and increased employment.

Human Right. China maintains a policy of not interfering with the internal affairs of any country which makes it indirectly encouraging dictatorship and human right abuses by giving the dictators economic powers that can sustain their hold to power to perpetuate their abuses.

Regional bodies like ECOWAS and the African Union should exert a lot more pressure on China not to deal with dictatorial governments or governments that are proved to have serious human right abuses. This will help to improve governance and transparency on the part of leaders.

CONCLUSION The paper discusses the economic relationship between China and Africa and the issues surrounding the trade and the investment relations. The main determinants of FDI inflows into Africa were discussed which are market size and growth, natural resources endowment, cheap labour force, infrastructural development and openness to international trade and investments. The paper also looked at China‘s outward foreign direct investment and the main factors that motivates the flow which include seeking natural resources for home consumption, increase market share, policy liberalisation, technology and managerial skills, strategic assets and macroeconomic variables. China‘s investment activities in Africa were looked at while the issues and concerns raised with respect to the challenges associated with the investments were discussed. At the end, policy recommendations were made which are fighting corruption by the respective African countries, more educational investment to make the cheap labour force more productive, embarking on enormous infrastructural development, negotiating for better terms of trade with the Chinese and mounting serious diplomatic and economic pressure on China to review their dealings with governments that are proved to have serious human rights abuse records.

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Impact of Information and Technology on Customer Service in Relation to Banks Khurram Riaz1

ABSTRACT Information technology plays a pivotal role in financial institutions. Due to the fact that customers demand instant service all the time and wherever they need, the banking institutions must meet this demand by the use of information technology. Even though many studies analysed the effects of information technology in the organization and employee performance, they did not acknowledge one crucial aspect – management – which affects both performance and customer service. Thi1s paper is an attempt to provide an overview of different aspects of information technology improving customer satisfaction and how it is related to employee performance and management performance. This will be achieved by employing statistical methods, including primary sources (preparation and presentation of anonymous questionnaires to the overall management of the organization) and relevant scholarly articles on the issue.

Key words: Information technology, banks, customer service, management.

INTRODUCTION The growth and development of information technology in the Globe has enhanced the financial activities around the World. The advancement of information technology and international networks has supported the reduction of global funds transfer in the international financial institutions. It has also led to the improvement in which the banks process and inseminate information in the financial institutions. This advancement in technology has emerged with new markets, products, services and very flexible channels for the banking industry. This helps the financial institutions to meet their great expectation of satisfying the needs of their customers who are techno savvy as compared to those of the early years.

Currently the banks are working very hard to interconnect their computers system across the World beyond their internal branches with the networks which are prompt in service and they organize local and wide area networks via the internet to meet this demand of improving customer service. The enhancement of information technology has helped in the development of very many banking services like net banking, credit card online, mobile banking, online payment of excise and service tax, phone banking, bill payment, smart money order, card to card funds transfer and e-cheques. This developed new ways of working in the bank and it has reduced the service time but promoted concurrent working on very many issues. This 1

Lecturer, Business School, London Churchill College

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information technology development has allowed the customers to deposit and withdraw money from any bank subsidiary any time after the installation of core banking solutions.

Background of the Study The introduction of the information technology in the organization can improve the performance and customer satisfaction through the use of computer aided design and computer integrated manufacture. This will help the management in the battle of competitive advantage because it can increase the speed in which the employees serve the customers. This will increase the efficiency in data processing and availability of information to employees which helps to increase the service of the customers. The availability of information technology in the organization also reduces the cost of information processing which is used by the employees in the organization on the way to handle customers. It can be used to commit the customers into the investment and reduce their likelihood of changing their suppliers. This ensures that current customers are retained and new ones are wooed. It is done through the use of quality and fact service to customers by utilization of information technology such as automated tailor machine, electronic point of sale and mobile phones. The use of internet in the organization has become an important instrument for coordination of activities by global companies and such companies have set up internal websites to keep employees informed about company development.

Problem Statement Many studies have been done to identify the effects of information technology in the organization such as employee training, total quality management, team working, and competition, innovation, and employee rewards. But by linking information technology of organization to employee performance, they fail to acknowledge that management plays a vital role in the performance and customer service greatly affects the performance of management. To overcome the constraints, this paper focuses on providing a clear analysis of the various dimensions of which the information technology improves customer satisfaction and utilizes both secondary and primary sources to provide an analysis of how they relate to employee performance and management performance. The appropriate statistical methods include primary sources and scholarly articles on the topic.

The organization dimensions of information technology supports its business strategy and greatly influence employees‘ job satisfaction, employee performance, customer satisfaction, management performance, and its overall performance.

Research Objectives The study was to help the learners know: I.

The impact of use of computers on operational tasks of the banks and on the efficiencies of employee in the organization 13

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II. III.

To determine the level of satisfaction of the customers and workers after the establishment of computerisation in the financial institutions To ascertain the attitude of customers and other organizational stakeholders after the installation of the information technology

Methodological Issues and Study Limitations The study intends to employ both primary and secondary research methods. Primary research will entail preparation and presentation of anonymous questionnaires to the overall management of the organization which will aid in collecting quantitative data. Secondary data will be obtained from different scholarly articles available either in the University‘s library or online library. The collected data will then be analyzed to get an insight of participant‘s responses and presented in form of pie-charts and graphs for easy interpretation.

The study is limited by lack of enough funds and time to get all the tools required for data analysis and to go to every place to gather information. However, the available resources will provide the better results and recommendations on the study.

This research used questionnaire and secondary sources to obtain information that answered the research questions. Questionnaires were used because of the following reasons: 

They provide a standard way of collecting information. They are therefore more objective compared to other methods such as interviews.



They provide a quick way of collecting data as respondents do not need to engage directly with those collecting data.



It enables collection of required data or information from a large group.

Secondary sources such as text books, journals, and online databases were used after thorough consideration of the credibility of authors and publishers. Most of the secondary sources used were from evaluated scholarly articles to ensure quality of the research.

Secondary scholarly sources were chosen because of the following reasons: They usually pass through expert evaluation before publishing to ensure they meet the desired academic standard; they contain references, footnotes, and endnotes that support them; and contain descriptions of methodologies used to gather the data used to write them.

The study uses a quantitative cross-sectional design that provides a description of the variables involved. Cross-sectional design allows collection of relevant data at once at the same time from a variety of populations (Harris & Mossholder, 1996). It provides an overview of the variables that are used in the study and in a specific duration of time. In addition, it provides the behaviour or relationship of the variables in a cross-section of a sample. A cross-sectional quantitative design method is mostly used in researches that require descriptions.

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The qualitative research is to provide an explanation as to the effect information technology to enhance the customer service. A social or human problem can be inquired by using quantitative methods that tests variables expresses numerically and analyzed using various data analysis tools to verify the truth behind predictions regarding the a study (Babbie & Mouton, 2002).

The primary data was collected from the branches of the banks which was taken as bank A and another bank B, which was a private sector bank, through the data collection method called interview and questionnaire. The two methods of data collection involved open ended and closed ended question. The question 1 was on the customers‘ perception on the services of the banks and 2 was on the bank which offers the best services in terms of information technology. The secondary data was collected through books, journals and websites of different banks in the region. Bank A and B were selected out of the best ten banks because they are the most preferred banks in the region. The survey was done on the sample of 156 customers where 82 of them were from bank A and 74 from bank B. Findings a) Analysis of Customers‘ perception in bank A and B Bank A The results which were received and the analysis of the responses from the 82 respondents interviewed in the bank A where 52 of them were male and 30 were women. The male took 64% while the female scored 36% and the remaining customers were students. 36% of those people interviewed were self employed while 52% are permanently employed by companies in the region. Among the 82 people interviewed, 38% have net income of less than £1000, 44% have the income ranging from £1000 to £3000 and 18% have a disposable income of more than £3000. Among the very customers 18% have been customers of the bank for less than one year, 34% of them have been partners of the bank for a period of more than one year and the rest have been operating in the bank for a period of more than three years. 14% of the 82 customers feel that the services of the bank are very good and 22% feel that the impact of the information technology on the service of the customers is very satisfactory. 52% have a feeling that the services are the same and there is no change even after the introduction of the information technology but 12% have a different thought that the services are very poor.

Bank B The number of people who were interviewed was 74 where 56% were male and 44% were female. 8% of the customers interviewed were students, 28 of them were self employed and 64% are permanently employed. The income group of the 12% of the total candidates has income less than £1000, 60% have the income which range in between £1000 to £3000 and 28% have the income group more than £3000. 14% have been customers with the bank for 15 Impact of Information and Technology on Customer Service in Relation to Banks

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less than one year, 30% have been with the bank for more than one year but less than three and 56% are customers who have been customers for a period of more than three years. The largest number of the customers interviewed has been customers for more than three years.

The objective of the collection of the data is to gather the views of those customers who have been dealing with other banks to give their opinion based on the facilities found in other banks. Among the 74 customers interviewed, 54% felt that the services of the bank B is extremely better, 36% felt that they are fair, 8% felt that the services are the same as usual and 2% thought that they are poor as compared to other banks. 74% are satisfied to the extent of the services of bank A while 22% are fairly satisfied and the remaining 6% are not satisfied at all with the services of any branch.

Limitations The fact that questions in a questionnaire are standardised did not provide chances for respondents to ask for further explanation of points that they may misinterpret. Though this could be solved by pilot testing the questionnaires, limited time and finance could not allow.

Another limitation of questionnaires is lack of willingness to provide detailed information.

Some respondents believed that, since they were not going to benefit from responding and they may be penalized for giving their true positions regarding the issues raised, they should not waste their time giving their true opinions (Kotter, 1995).

DISCUSSION AND CONCLUSION It has been found that for the customer service to be improved and management information system enhanced the information technology must be a party to the tools which is used to support the strategy (Brynjolfsson & Hitt, 1995). Information technology has a very important role to play in the banking system for the bank to respond to the needs of its customers adequately but the technology must ensure that it has been assigned in a special area of automation and the best software for it to operate appropriately.

Customer Perceptions Many of the customers in all the financial institutions who were interviewed have been the customers of the bank for more than three years. The customers who have opened the bank account with bank and have attitude that the services they have received from the bank is almost the same with other banks. The customers in other banks feel that the services of bank B are better than those of other banks. It is also indicated that the services received from bank B are better than the services of bank A in terms of customer‘s satisfaction (Loveman, 1994).

This may be due to long waiting minutes, less efficient services and large rush in the branches of bank A. The services of all the banks have improved tremendously due to computerisation and this have affected such areas as transfer transactions, correct balancing, account opening, accurate enquiries and statement of accounts. The areas which have 16 Impact of Information and Technology on Customer Service in Relation to Banks

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deterioration are collection of instruments, passbook printing and cash deposits due to human error (Morrison & Berndt, 1990).

REFERENCES                  

Altiero, S. F. (1997) Virtuality posits a dramatic future for life companies. National underwriter, March, Vol .17, pp. 32-33.

Barkley, B. (1994) Improving service quality with the information technology.

International journal of information management. Vol 14.

Bednar, D., Reeves, C. & Lawrence, C. 1995. The role of technology in services: Listen to the customer. Journal of Retail Banking Services, 17(3).

Bluesky international marketing 2000. The number of retail internet banking in Europe available at www.blueskyinnc.com/pressrelease.june99.htm.

Bonfield, P. (1996) IT helps satisfy customers needs. Management today, December.

Brynjolfsson, E. and Hitt, L. (1995) Computers as Factor of Production: The Role of Differences among Firms. Economics of Innovation and New Technology, Vol. 3 (3-4, May), pp. 183-199.

Lichtenberg, F. (1995) The output contribution of computer equipment and personnel: A firm level analysis, Journal of Economics of Innovation and New Technology, Vol. 3, pp. 201-217.

Loveman, W. (1994) An Assessment of Productivity Impact on Information Technologies. In Allen , T.J. and Motton .S. ( ed.), Information Technology and the Corporation of the 1990́s: Research Studies, MIT Press, Cambridge, MA. Morrison, C. and Berndt, E. (1990) Assessing the Productivity of Information Technology Equipment in US manufacturing industries National Bureau of Economic Research Working paper.

Schneider, B. and Bowen, D. (1995) Winning the Service Game. Boston, MA: Harvard Business School Press.

Osborne, D. and Plastrik, P. (2001). The Reinventor‘s Fieldbook: Tools for Transforming Your Government. Indianapolis: John Wiley & Sons, p. 332.

Kaplan, R. S. and Norton, D. P.( 2001), The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Boston, MA: Harvard Business School Press.

Kotter, J. P. (1995) Leading Change, Harvard Business Review, March-April.

Leadership and Organizational Development Journal, 16(5), pp. 16-21.

Ramsey, R. (2004) Understanding the IT of Your Workplace, Supervision, 65(5), pp.

8-10.

Ronald, R. & Jolly, J (1997), Training of teams in the work place, S.A.M Advanced Management Journal, 62(2), 4.

Sekaran, U. (2003) Research methods for Business: A skill building approach. New York, NY: John Wiley & Sons.

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Data Collection and Analysis in Management and Business Environment Chika Ugoji1

ABSTRACT The purpose of this paper is to provide an overview of the key aspects of practical application of data collection methods and analysis by conducting research in business, management and finance related organisation. To achieve this, five different cases will be presented in this work. Each of them focuses on different methods of data collection. The first two cases focus on qualitative and quantitative methods of data collection by researching the effect of leadership styles and employee behaviour. Case three focuses on the use of interview methods as opposed to the use of questionnaire methods in carrying out a research. Case four focuses on analysing the term ―content analysis and grounded theory analysis‖ and its uses with computer analysis. Lastly, case five examines the use of statistical analysis in establishing validity in sampled result using a case study of finance managers as sample of study.

Key words: data collection, qualitative, quantitative, questionnaire, interview, computer analysis, management.

INTRODUCTION Data collection and analysis methods involves a systematic way in which the researcher records information and analyse the information recorded in order to smoothen the pattern of data collected. The main aim is to use data in understandable and interpretable form so as to ascertain solutions to the research problem. In fact, data collection and analysis involves data collection through field process and analysis of information collected by categorising, ordering, manipulating and summarising data in order to provide answers to the research questions.

This piece of work describes the use of data that will be collected for the empirical analysis and methods that will be applied by analysing them. The data collection in this assignment is designed to be used in collecting and analysing data focusing on the broad sector of management. Data collection in this piece of work covers a wide range of qualitative and quantitative research approaches through a possible application of data collection methods such as documentation, observation, interviews and questionnaires. As Hackman and Oldham (1980) maintain, the combination of questionnaire interview and observations helps the researcher to draw a more extensive wider picture on the investigation (Tewksbury, 2009, p.

39).

1

Doctoral Researcher University of Wales, UK and lecturer, Business, London Churchill College.

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In this paper, the focus will be mainly on the practical applications of these data collection methods and analysis in understanding and conducting research in business, management and finance related organisation. To achieve this, this work will be divided into five different cases covering a wide range of data collection methods.

Firstly, case one and two focus on the use of qualitative and quantitative methods of data collection in conducting research focusing on the effect of leadership styles and employee behaviour and researching on the effects of the company‘s marketing strategies and financial performance respectively. Secondly, case three focuses on the use of interview methods as oppose to the use of questionnaire methods in carrying out a research. Case four focuses on analysing the term ―content analysis and grounded theory analysis‖ and its uses with respect to computer analysis. Then, case five will highlight on the use of statistical analysis in establishing validity in sampled result using a case study of finance managers as sample of study.

Case Study 1: Data collection on the effects of different Leadership styles on employee behaviour and performance; what methods of research might be adopted and why?

Leadership style is a part of management and employee behaviour refers to study of human behaviour. Over the years management research has been revolving around the application of both qualitative and quantitative research methods (Easterby-Smith et al., 2011, p. 2). A leader is one who takes charge in the management of people or activities while leadership style involves a pattern or style in which the manager or leader employs in controlling the human and other activities of the organisation in order to achieve the objectives of the organisation. Meanwhile, it is believed that organisations enhance performance by adopting a strategic style of management that suits into the goals of the organisation.

Conducting research on leadership style entails changes in the process in order to ensure monitoring on the performance and this allows for comparison to be made based on the current performance when a particular leadership style is in use and otherwise. On the other hand, information that pertains to the outcome of the processes is obtained from the employees as well as performance measurement.

Therefore, in order to conduct this research investigation it is important to highlight on the processes and techniques involved in collecting qualitative and quantitative research and the reason behind the use of any of the technique. Finally, show the research method adopted and the reasons behind the chosen method.

Below are the analysis and explanations on the procedure to be undertaken in collecting data for this research using qualitative and quantitative research methods. At the end the adopted method will be illuminated and the reasons for the chosen method explained.

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Using Qualitative Research and Data Collection Methods Qualitative research involves a process of inquiry with the aim of having a better understanding into social or human activities or problems from various viewpoints and with the basic objective of creating a holistic picture of the problem being investigated. In management research qualitative method is commonly used because it provides the researcher the opportunity to carry a research study from different perspectives through asking specific questions within a broad area of study. A qualitative research method gives more emphasis on interpretation and provides the researcher with a complete view by focusing on the context and an in-depth understanding of the concept studied (Tewksbury, 2009, p. 39). The qualitative research in general sense is viewed from the ―subjectivist‖ point of view. This means that the reality of a research is subjective depending on the views of the participant. From the epistemological assumption qualitative research aims at achieving the result in the data collection process using qualitative method, the researcher is expected to have interaction with the participants.

In this investigation on the effects of different leadership styles on employee behaviour and performance, it seems to the researcher that it would be more appropriate to adopt the use of direct observation of the leadership style exhibited by the manager and how employees respond to the leadership. On the other hand, observation can be challenging in the sense that sometimes it might be difficult in managing relationship that might arise during the interaction.

For the purpose of having a more in-depth response in this issue, the researcher planned to run alongside direct observation via the use of an in-depth interview with the leaders as well as the employees of the organization. This will help to give more understanding on the observation made. Tewksbury suggests that the interview method of data collections allows the researcher to conduct a structured conversation with the participants; it helps the researcher to learn about the participant as well as the having a true knowledge of the concept (2009, p. 43). A good advantage in the use of qualitative research method is that it provides the researcher the opportunity to modify the presentation and identify means of action from the interactions, in other words, to arrive at more positive outcome.

Applying Quantitative Data in the Case Quantitative research method involves the collection and converting it in numeric form in which statistical or mathematical method will be used in analysing and interpreting the data.

It focuses on testing the strength and relationship that exist among the variables which exist in the study. The epistemology and ontology assumption of quantitative methods believes that reality is objective and that the researcher is independent from what is being researched (Sukamolson, pp. 6-7). The quantitative research is described as being ―realistic‖ and in some cases ―positivism‖. Qualitative research is realistic in the sense that it tries to dig down to the truth of an existing reality, though the truth in reality might be objectively problematic in the

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long-run. Quantitative research can be in form of survey, correlation, experimental and causal-comparative research.

Survey research involves the use of scientific sampling and questionnaire design to draw measurement of variables in the population using statistical methods. It tends to provide answers to questions such as ―how do people feel about the use of democratic leadership style‖, ―what impact does autocratic leadership style have on employee performance‖. Survey research method is a commonly used research in management that allows the research to draw comparison between two or more samples and provide estimates from the sample.

Reasons for using both qualitative and quantitative research in this case study The type of research to be conducted on the above question is participatory research and the researcher chooses to adopt of both qualitative and quantitative data collection methods. In participatory research qualitative research generated will be converted into number for scoring and ranking. Garbarino and Holland (2009, p. 8) maintains that participatory research methods can be quick and efficient, and very helpful in producing data information on the time that is full of evidence and action.

Case study 2: Data Collection on the effects of different marketing strategies on company’s financial performance; what quantitative research methods can be adopted and why? Is there a need for use qualitative research method?

Much of the quantitative research in management seeks to identify how a result is determined by applying a set of variables. Quantitative research focuses on a deductive approach in which a theory or hypothesis is adopted to justify the variables, therefore it is important to pay attention to phrasing of research questions so that the research will produce valid hypothesis when tested. For instance, in researching the effects of different marketing strategies on company financial performance, using quantitative approach will be more appropriate because the study tends to cover a wider population and most of the information data to be collected in measuring performance will be in numeric form.

Ideally, a researcher will adopt the use of survey method of data collection. This method of data collection will give the researcher more room to generalise and make inferences in interpreting the result of the population. To achieve this, the researcher will employ the use of descriptive statistics, in other words, to draw meaning to the data collected; these include: use of percentages, means and standard deviation. This will help in describing the situation effect of marketing strategies and also will be able to derive answer to the research questions. To conduct this research, the researcher will employ a survey method through the use of questionnaire data collection technique.

Furthermore, it will be required to test various factors in the concept that have contributed to the possible changes in the financial performance of the company, the researcher extends the analysis further by using some statistical techniques such as ANOVA or T-test to test hypothesis and the relationship that exists among them. These techniques will help to Data Collection and Analysis in Management and Business Environment

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determine whether any significant difference or relationship exists among the indicators or whether the mean of one group is significantly different from another (Borrego et al. 2009, p.

55). The researchers plan to conduct this statistical analysis using analysis software application for social sciences known as SPSS, it will help to determine statistical data such as mean, mode, median and standard deviation as well as conduct the relationship among data variables through T-test and ANOVA (Johnson, 2008, p. 3).

However, for conducting this research, it is necessary to accommodate qualitative research approach through conducting an in-depth interview within the management of the company in order to validate some of the discrepancies and provide more clarification on the numerical data and outcome of the quantitative approach used. In this type of research, it will be more appropriate to accommodate both qualitative and quantitative research methods of data collection; this will give the researcher a wider scope in achieving at a more acceptable result and analysis. Combination of qualitative and quantitative (known as mixed approach) helps to advance the concept of the study. ―It is an extensive and creative form of research, not a limiting form of research. It is inclusive, pluralistic, and complementary, and it suggests that researchers take an eclectic approach to method selection and the thinking about and conduct of the research‖ (Johnson & Onwuegbuzie, 2004, p.17).

While the researcher is keeping in mind the ethical issues that might arise, especially when the research is focused on financial performance of the company, there is every possibility that the company might be uneasy in letting go of some sensitive accept of their operations, especially with respect to the financial information of the organisation. Ethical issues are very important when conducting both qualitative and quantitative research, it is important to keep in mind that under no circumstances should a research bring harm to either the individual participant or the organisation at large (Easterby-Smith et al., 2011, p. 166). The research should ensure absolute confidentiality of the information being disclosed as well as being honest throughout the whole process.

Case Study 3: When and why would one choose to conduct interviews within a research project as opposed to using a questionnaire based survey?

Interview method stands as a very useful tool for carrying research, especially in learning about the social life of people at work. Interview method is part of a qualitative research approach that involves an in-depth interactive process with individuals and a small group of individual or respondents purposely to ensure their views on a particular issue, idea, program or situation (Boyce & Neale, 2006, p. 3). The interview can be very useful tool when research requires an in-depth understanding and information about the thoughts and attitude of individuals. In conducting interviews, it is the choice of the researcher to select a participant for the interview based on their knowledge and experience on the issue or problem being researched. It gives a holistic view of what happened and reasons behind it.

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Generally, the popularity of interview method of data collection depends on its strength in obtaining a range of information from the participant and the ability to communicate information obtained from different perspectives on the issue interviewed. It is believed that an interview provides the researcher with undiluted information because of the direct procedure that is involved and offers opportunity for clarification on the issue on the spot and creates more understanding of the concept being studied through follow-up question. This goes to explain that interview process has a lot to do with a dual aspect of personal interaction and dialogue between the interviewer and the participants which is influenced by power, emotions and the interpersonal process (Carcary, 2011, p. 13). This is a huge advantage on the use of interview method of data collection to other data collection techniques such as questionnaire. During the interview process, the interview may develop or quickly change dimensions as soon as he or she observes the direction of the interview or requires deriving more understanding of the concept. As opposed to the questionnaire method the researcher is stuck with the outlined questions, it is more rigid to work around or change the questionnaire questions but interview methods involve a more flexible approach.

Easterby-Smith (2011, p. 147) suggests six relevant practical perspectives that are very important in conducting a successful interview, these include: evidence of trust from both parties, awareness of social interaction that might be applied during the interview process, appropriate use of language, accesses to information required, choosing an appropriate venue for the interview and proper recording of the interview. To achieve this, interview might be in the form of structured, unstructured or semi-structured, the use of these methods depends on the approach that the interviewer feels more comfortable to use. Furthermore, as opposed to the use of questionnaire method any of these methods of interview adopted during the interview process can be inter-shift during the interview process, the use of these methods depends on emotion, feeling and response of the participant but questionnaire method never allows for such on the field or instant changes (Jandagh & Matin, 2010, p. 62).

However, another advantage of interview method of data collection as opposed to questionnaire method is that during the interview process it is more easier for the interviewer to establish a rapport or relationship during his/her interaction with the participant.

More importantly, interview as opposed to questionnaire provides the researcher with a more detailed platform to acquire as much information as possible during the process, especially in a situation where the participant feels a good sense of confidence talking privately regarding the issue at hand. Although past researchers argue that the interview might be prone to being biased and time consuming, its analysis and outcome prove to contain a more detailed information and gives a more realistic result (Boyce & Neale, 2006, p. 3).

Overall, a successful interview requires that the interviewer should possess a good level of personal interview skills as well as the capacity to organise and structure interview process.

In qualitative research, interview method of data collection is more flexible and dynamic qualitative approach of research than other qualitative research methods such as questionnaires (Ehigie & Ehigie, 2005, p. 62).

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Case Study 4: What are the terms “content analysis and grounded analysis” and its application? What role does it play in computer analysis?

Content and grounded analyses are several of the major analytical methods of data collection used in understanding a concept. Grounded theory is a research methodology that spreads across a range of discipline, this is because of its explanatory power in dealing with issues and it allows for the identification of theories (Mills et al., 2006, p. 7). On the other hand, content analysis is a method of data collection that deals with analysis of written, verbal or visual communication messages, it was first used in the 19th century in analysing hymns, newspaper and magazines, articles, political speeches and advertisement (Elo & Kyngas, 2008, pp. 107-108). According to Kaplan (1964, p. 21), content analysis can be defined as a data collection ―technique used for making applicable and valid inferences from data to their context‖ and to Weber (1990) it is a research method that applies the use of procedure in making inference from the text (Westbrook,1994, p. 241). While according to Matin and Turner (1986, p. 141), grounded analysis is defined as an inductive theory that opens up the researcher to developing a theoretical account based on the general features of the subject while grounding the account in empirical observation or data (Jones & Alony, 2011, p. 96).

Content analysis is a method that can be used within qualitative and quantitative data analysis and can be used in either inductive or deductive manner. Content analysis plays a good role when there is lack of firsthand knowledge about a concept, then the inductive approach will be used to support data analysis, whereas deductive analysis is applied when the analysis will be built upon already existing knowledge and the aim of the study lies on testing theory (Elo, S. & Kyngas, H., 2008, p. 111). Researchers apply deductive content analysis when there is a need to retest existing data in a new context. This is followed by developing categorising matrix and coding of data. On the other hand, the inductive content analysis focuses on organizing the qualitative data which may include open coding, creating categories, and abstractions. The main focuses of content analysis are on working with data, organizing data, breaking the data into manageable units, synthesizing data, searching for patterns, discovering what is important about the data and deciding the outcome of the data (Westbrook, 1994).While grounded theory seeks to collect data information and ideas about people that are inductive in nature. According to Haig (1995), a good grounded theory is one that is capable of focusing on the following: derived from inductive data, subjected to theoretical elaboration and judged based on its origins with respect to a number of evaluation criteria (Esteves et. al., 2002, p. 130).

In management research grounded theory is of great benefit; as it fits when conducting a complex investigation that has to do with multifaceted concept. It helps in exploring social related issues. As noted by Sussan (2006, p. 80), grounded theory applies the generation of innovative theory sourced from data collected from a given real life investigation or situations that is relevant to the research problem. Grounded theory has the ability to fit into different types of research, especially when dealing with concepts that are social in nature (Jones & Alony, 2011, p. 97). The basic rule in grounded theory in analyzing data lies in the constant comparison methods; when using interview method, interview texts are analyzed Data Collection and Analysis in Management and Business Environment

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line by line and subsequently compared with other transcript used in the data collection process so as to ensure consistency. The rule also suggests that the researcher is not meant to leave the field and stop sampling until data saturation is reached, or when no additional information can be found in the data. The most commonly used qualitative methods in grounded analysis include in-depth interviews, observation and memos which describe situations such as records, events, track of ideas and feeling (Goulding, 2005, p. 297).

Grounded analysis is a data collection technique that helps the researchers carry investigation and develop substantial and significant theory.

Recently, researchers have developed computer based models so as to make grounded theory and content analysis to be much more attractive. Current studies have illustrated the use of computer based assisted qualitative and quantitative analysis software as a tool used in analysing data information. The most commonly 19th century computer analysis invention is the qualitative computer assisted program such as NVIVO which deals with analyzing explanatory models that is grounded in the data. This program and software is designed to allow researchers to conduct complex analysis without performing the basic principles of the analysis. For instance, NVIVO computer software helps to facilitate the iterative process of the grounded theory by translating the recorded initial thought collected using any of the qualitative data collection process such as focus groups, interviews, and provide coding categories for these data. According to Gibbs (2012, p. 4), many qualitative researchers now rely on the use of computer assisted qualitative data analysing software in supporting the analysis of their research. Most of this software provides coding approach to research analysis by coding and revising the coding data, arrange the coding schemes and retrieve coded data. The nature of data that can be analysed using this computer assisted software includes text, images, audios or even video recording. Computer analysis also supports the use of annotations of data, the writing and linking of analytic memos during the analysis (Gibbs, 2012, p. 4).

Also, when using computer analysis the bulk of the analysis is performed by the computer, for instance the program ―facilitate and allows text searches to be linked, data coded and searched, and models to be drawn while always been able to instantly give access to the original data behind the concepts‖ (Bringer et.al., 2006, p. 248). The major merit of using computer analysis such as NVIVO in grounded analysis is that it assists the researcher in transforming the nature of data in which data is viewed and allows for a relationship to be drawn within the categories. Weaver & Atkinson (1994) maintain that it also makes text formatting more visible and creates hyperlinks to other documents and categories (Bringer et.al., 2006, p. 249). Furthermore, Grgorio suggests that with the use of computer analysis program in grounded theory, literature review notes can be transferred into the program, that is, it allows integration of literatures more closely within the research process (2000, p. 250).

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Case Study 5: Select a sample of Finance Managers from the largest 50 Hotels in the UK, survey their views on proposed changes to corporation tax regulation. Explain how many finance managers you would include in your sample and establish the statistical validity of the sample results.

In this research survey, one of the most important goals is how to collect samples that will be a representative of a population. It is the responsibility of the researcher to plan on how to gather information from the survey sample and present findings from the drawn sample within the limit of random error. But the major issues for every researcher still remains, how large samples are required to form a population for a research survey? A number of authors and researchers have come up with a tested approach that allows research studies to make full use of statistical approaches in measuring sample survey for a research and which give researchers leverage in determining the correct sample size. Orne maintained that primary principle that influences the determination of sample size is based on statistics, it is the responsibility of the researcher to come up with a plan to be used in determining sample size which might be based on experience, rules of thumb and budget constraints (2000, p. 58).

In deciding the sample size of largest 50 UK hotel businesses, surveying their opinion, it is important to work on how to avoid sampling errors. Orne explained that sampling error occurs when samples collected from respondent‘s deviates from the underlying population, in the case of sample being drawn from a random sample, sample error may occur by chance. In this sampling error can be reduced by increasing the sample size (2000, p. 58). In other words, in this type of investigative method researcher stands a better chance of limiting sampling error by having a wider scope of information or data collection from a good number of respondents that will give information on the phenomenon (changes in health and safety regulations).

Krejcie and Morgan (1970) introduced a formula for determining a sample size in research survey, this is based on identical sample size where the researcher is expected to adjust the (+-) positive and negative value within the sample population size. And this assumes .05 degree of accuracy (Bartlett et al., 2001, p. 43).

Moreover, a successful research outcome depends on appropriate application of statistical methods; inappropriate use of statistical method can lead to incorrect conclusion which nullifies the statistical validity of the research outcome. Golbeck (1986) suggests two important steps in measuring the appropriateness of a method. The first step involves categorising the research study based on its basic statistical purpose with respect to examining variables. The aim of this focuses on describing variables, exploring the relationship that exists among the variables or building prediction models based on the outcome of the variables. Secondly, the next step involves evaluating the validity of research by categorising the variety of research based on their levels of measurement such as nominal, ordinal, interval and ration. However, in most cases ordinal level measurement is assumed to be more appropriate, especially when statistical purpose of the research study is to explore Data Collection and Analysis in Management and Business Environment

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the relationship among variables. And several methods are available which include simple correlation, factor analysis and multidimensional scaling.

Therefore, the appropriate statistical validity of research survey in this investigation, there is a need to focus on exploring the relationship and building of models by testing hypothesis using the variables. Golberk (2010) proposed that when statistical purpose of a research study is being built upon prediction models using variables, it is more appropriate to use (these are most commonly used methods) regression methods. Although it is very important and useful for researchers to exhibit different opinions as to how sample size should be calculated, but the procedure used should be such that allows the reader to make his or her judgement on the acceptance of researcher‘s assumptions and procedures (Bartlett et.al., 2001, p. 49). Hence, applying adequate sample alongside with high quality data collection methods gives the researcher a more reliable and valid result and helps to generalize results. It also makes for resource saving and eliminates wastage of time.

CONCLUSION It is evident that for every research topic there is a need to firstly study the question so as to provide a suitable research method. Looking at the various case studies on business and management presented above, it seems very reasonable to find out based on the nature of the study or topic and provide systematic research methods that fit into the study. As a researcher, depending on the nature of the enquiry, it is expected to choose from the pool of qualitative and quantitative data collection techniques one which is capable of producing a valid result at the end of the enquiry. As Sunder et. al (2003, p. 3) states, using range of methods and data collection techniques in management research enables the researcher to gain new insight, knowledge and understanding of the concept.

REFERENCES       

Barlettt, J.E., Kotrlik, J.W & Higgins, C.C. (2001) Organisation Research: Determing Appropiate Sample Size in Survey Research. Information Technology, Learning and Performance Journal, 19 (1), pp. 43-50.

Borrego M, Douglas, E. P. &. Amelink, C.T. (2009) Quatitative, Qualitative, and Mixed Research in Engineering Education. Journal of Engineering Education, pp. 53-66.

Boyce, C. &. Neale, P. (2006), Conducting In-depth Interviews: A Guide for Designing and Conducting In-depth Interviews for Evaluations Input., Pathfinder International.

Bringer, J. D., Johnson, L. H. &. Brackenridge, C.H. (2006) Using Computer Assisted Qualitative Data Analysis Software to Develop a Grounded Theory Project. Sage Publication, 18 (3), pp. 245-266.

Carcary, M. (2011) Evidence Analysis Using CAODAS: Insights from a Qualitative Researcher. The Electronic Journal of Business Researcher Method, 9(1), pp. 10-24.

Eaterby-Smith, M., Thorpe,. R. &. Jackson, P.R. (2011) Management Research. 3rd Edn ed. London: SAGE Publications.

Ehigie, B. O &. Ehigie, R. I. (2005) Applying Qualitative Methods in Organisations: A Note for industrial Psychologist. The Quantiative Report, 10(3), pp. 621-638.

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    

         



Elo, S. &. Kyngas. H. (2008) The Qualitative Content Analysis Process. Journal of Advanced Nursing, 62((1)), pp. 107-115.

Esteves, J., Ramos, I. &. Carveho, J. (2002) Use of Grounded Theory in Information Systems Area: An Exploratory Analysis. European Conference on Research Methodology for Business and Management, pp. 129-136.

Garbarino, S. &. Holland, J. (2009) Qualitative and Quantitative methods in Imapct Evaluation and Measuring Result. Social Development Direct.

Gibbs, G. (2012) Grounded Theory, Coding and Computer-Assisted Analysis. University of Hudderssfield Repository, pp. 337-343. Available at: http//:www.eprints.hud.ac.uk Golberk, A. (1986) Evaluating Statistical Validity of Research Report: a Guide for Managers, Planners and Researchers. California: Pacific Southwest Forest and Range Experiment Station.

Available at: http://www.fs.fed.us/psw/publications/documents/psw_gtr087/psw_gtr087 Goulding, C. (2005) Grounded Theory, Ethnography and Phenomonology. A comparison of three Qualitative Strategies for marketing Research. European Journal of Marketing, 39((3/4)), pp. 294-308.

Jandagh, G. & Matin, H. (2010) Application of Qualitative Research in Management (Why, When and How). Iranian Journal of Management Studies , 3(3), pp. 59-74.

Johnson, B.R. &. Onwuegbuzie, A.J. (2004) Mixed Methods Research: A Research Paradigm Whose Time Has Gone. American Education Research Association , 3(7), pp.

14-26.

Johnson, K. (2008) Comparing and Contrasting Quantitative and Qualitative Research Methods. Nova Southeastern University, pp. 1-5.

Jones, M. &. Alony, I. (2011) Grounding the use of Grounded Theory in Doctoral Studies- An Example from the Australian Film Industry. International Journal of Doctoral Studies, Volume 6, pp. 96-114.

Mills, J., Bonner, A. &. Francis, K. (2006) The Development of Constructive Grounded Theory. The International Journal of Qualitative Methods, 5 (1).

Orne, B. (2010) Getting Started for Product Design and Pricing Research. 2nd ed.

Madison: Research Publishers.

Tewksbury, R. (2009) Qualitative versus Quantitative Methods: Understanding why Qualitative Methods are superior for Criminology and Criminal Justice. Journal of Theoretical and Philosophical Criminology, 1 ((1)), pp. 38-58.

Sukamolson, S., Fundamentals of Quantitative Research. Available at: http//www.paulchapmanpublishing.co.uk/books/ch1.pdf [Accessed 22nd June, 2012] Sussan, G. (2006) Chapter VI-Rigor IN Grounded Theory Research: An Interpretative perspective on generating theory from Qualitative Field Studies. College of Information Science and Technology, Drexel University libraries, Available at: http//idea.library.drexel.edu.

Westbrook, L. (1994) Qualitative Research Methods: A Review of Major Stages, Data Analysis Techniques and Quartely Controls. Michigan: Undergraduate Library, University of Michigan.

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Towards the Understanding of Human Resource Management Issues in the Current Hospitality Industry Dr. Samrat Hazra1 and Miss. Zsuzsanna Nemes2

ABSTRACT This article critically evaluates the issues in Human Resource Management (HRM) in the current development of the hospitality industry worldwide. It investigates especially the soft and hard HRM issues which affect the effective management and development of the hospitality industry. It assesses both the advantages and disadvantages of the recent development in approaches to HRM issues, providing details of methodological understanding to empirically explore the phenomena. Finally, it proposes recommendations for industries, as well as academics, for future research opportunities.

Keywords: Human Resource Management, Hospitality Industry, Tourism, Development.

INTRODUCTION According to World Travel and Tourism Council (WTTC, 2013), tourism is one of the industries which are experiencing continuous expansion and diversification, becoming one of the largest and fastest-growing economic sectors in the world (Cooper et al., 2005). Despite sporadic blows, international tourist arrivals have shown virtually uninterrupted growth, from 25 million in 1950, to 278 million in 1980, 528 million in 1995, and 1,035 million in 2012 (WTO, 2013). An ever increasing number of destinations have opened up and invested in tourism, turning the sector into a key driver of socio-economic progress through export revenues (USD 1.3 Trillion, 6% of the world‘s exports), the creation of jobs (1 in 11 jobs worldwide) and enterprises (9% of GDP direct, indirect and induced impact), and infrastructure development (WTO, 2013). The market share of emerging economies increased from 30% in 1980 to 47% in 2012, and is expected to reach 57% by 2030, equivalent to over one billion international tourist arrivals (Figure 1).

1 2

Lecturer, HND Hospitality Management, London Churchill College and Bournemouth University.

Student, HND Hospitality Management, London Churchill College

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Figure 1, UNWTO Tourism Towards 2030: actual trend and forecast 1950-2030 Source: UNWTO, 2013 Tourism involves the movement of people from one location to another outside their own community (Johnson, 2002). Hence most of the tourism activities take place in the destination context. Travellers to the destination context demand a range of activities, experiences and facilities. As Knowles (2001, p. 1) puts, ―the provision of accommodation, food and drink is the key ingredient within the tourism industry‖. These components are part of the hospitality trade. Therefore, there is a clear overlap between the tourism and hospitality industries. They complement each other. Hence, the success of tourism is related to the development of hospitality within a region.

The hospitality industry includes hotels, restaurants, pubs, clubs, meeting, catering and other accommodation services (McGee, 1995; Verginis and Wood, 2002; Walker, 2013). These are both products and services where human interaction is at the heart of the very industry.

Contemporary apposite hospitality can not be delivered without the presence of customers as well as employees. Employees especially are directly involved in many aspects of the delivery of hospitality services (Knowles, 2001). Hospitality is also a labour intensive industry (Nickson, 2002). Hence, the hospitality workforce has to be managed effectively to keep the industry moving smoothly (Glover, 1995). Consequently, Human Resource Management (HRM) has become an integral part in hospitality operations today.

Subsequently, the purpose of this article is to critically evaluate various approaches to HRM which are used in the current hospitality industry.

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Human Resource Management in Hospitality Context HRM is common to all organisations and refers to systems and processes providing directions to employees. The management of human resources or personnel within hospitality operations can be both a generalist function and a separate department, depending on the size and scale of the establishment (Knowles, 2001). HRM can play a key role in ensuring that the strategy of the company is successful. Cakar and Bititci (2001 in Price, 2007, p. 34) emphasises that “HRM (people management) is a critical input enhancing the business results …… HRM criteria covers planning, managing and improving the human resources; identifying, developing and sustaining people’s knowledge and competencies; involving and empowering people. All these things have an effect on business results, because human resources are key assets………” The traditional definition of Corporate Social Responsibility (CSR) is conceptualised as a managerial obligation to take action to protect and improve both the welfare of society as a whole and the interests of an organisation (Poolthong and Mandhachitara, 2009).

It is the guardian of management style thus protecting image, and culture with regard to people. Therefore, it can be said that HRM co-ordinates a powerful asset – people (Groucutt, 2005). It has influence over the establishment‘s ethos, principals and management style.

HRM also has strategic control over recruitment and termination of employees, training and development, employee wages, health and safety, performance and management/appraisal etc. (Nickson, 2002). Fitz-Enz (1994) argues that businesses, mainly services industries, adopt one of three approaches. The first category is Zombies – they take the ‗staff as expense‘ view to people management. Examples of this approach can be found in small-medium and family owned enterprises where professionalism is not often the priority. Secondly, Reactors, where the establishment may not want some of the responsibilities but think they have no alternatives. Finally, the Confidant are where the company takes HR issues seriously.

Hospitality establishments (e.g. hotels and restaurants) often have similar products, so in many cases it is the human element that captures success for one place over another, and gives that crucial competitive edge (Knowles, 2001) and enhances the Unique Selling Proposition (USP) for the company itself. Hence HRM demands that people (employees) are the key resource or asset to a business (Nickson, 2002; Walker, 2013). Consequently, Pfeffer (1998) stresses the greatest competitive advantage is to be obtained from people rather than technology. Pfeffer (1998) continues that investment in technology is not enough, because that technology is (or soon will be) available to competitors. The more complex the technology, the more it requires people skills anyway. Instead, what is needed is ‗highperformance management‘ or ‗high-commitment management‘. Therefore, HRM should be seen as an investment not a cost. HR specialists need to adopt a management style which suits the business as well as the employees to serve the clients successfully (Pavesic & Brymer, 1995).

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Modern Approaches to HRM The roots of people management lie deep in the past. Just as today, in the ancient world people divided the jobs amongst those who can perform the best. The ‗division of labour‘ has been practised since prehistoric times; according to their skills and knowledge (e.g. edible plant gathering, medicinal plants, hunting, cooking). Price (2007) documents that this is practised in today‘s business environment too. As he mentions, the subdivision of work so that specific tasks or jobs are allocated to individuals deemed most suitable on the basis of skill, experience and cultural tradition.

All societies practise division of labour. Some cultures traditionally allocated tasks to particular social groups, such as the caste system India. In others, higher status jobs have been reserved for the members of a power elite such as the products of the British ‗public school and Oxbridge‘ system or the French ‗grandes écoles‘. Price (2007) also points out that modern HRM aims to identify and develop the best people for specific jobs, regardless of background, class or gender. There are mainly two approaches to HRM today: hard and soft (Fitz-Enz, 1994; Knowles, 2001; Pfeffer, 1998; Price, 2007).

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Figure 2, Characteristics of Hard and Soft HRM Practices

Scientific Management

Human Relations

 Selection of ‘best people’ for the job  Time and motion  Direction of effort  Minimum staffing  Performance management  Performance-related pay  Anti-union climate

 People matter  Consultative management  Working conditions  Motivation other than pay  Team working  Informal organisation  Group phenomena  Peer pressure

Hard Strategic management

HRM

Soft

Practises

Japanese Management      

Commitment Development Organisational culture Quality Just-in-time resourcing Core-periphery (flexibility)  Continuous improvement

 Long-term thinking  Missions and objectives  Values  Planned activities  Resource management  Proactive, focused direction

Source: Price, 2007

Hard HRM consider employees as zombies and reactors (as suggested by Fitz-Enz (1994)), and take a ‗whips and goads‘ approach, whereas ‗Soft HRM‘ takes responsibilities seriously.

Softer models of HRM suggest that HR managers should become (Price, 2007): 

Enablers: structuring organisations to allow employees to achieve objectives



Empowerers: developing decision-making at the lowest level



Facilitators: encouraging and assisting employees

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Organisational culture has one of the significant influences on the HRM activities.

Organisational culture is the pattern of shared rituals, heroes, symbols, practices, myths, assumptions, beliefs, and values (Hofstede et al., 1990; Kotler et al., 2010; O‘Neill, 2012).

Organisational culture is a schema agreed on by the members in the company, suggesting that members have learnt the process and understand information the same way, and have agreed to do so. In this case, depending on the very culture of a hospitality organisation, a hard (scientific and strategic management) or soft (human relations and Japanese management) HRM path would be taken. It would be interesting to find which types of hotels follow which types (or a combination) of HRM and their effectiveness. This would have implications for other hospitality organisations.

Proposed Research Methodology Both primary and secondary research is considered to fulfil the aim of this article. Smith (1995) considers that secondary data are those that have been developed by third parties for their own purposes, but are available for others to use. Textbooks, academic journals, and other printed materials are used to expand a theoretical understanding of the topic under investigation. Through the support of secondary data, the researcher is ready to collect primary data. Qualitative and quantitative are the two key primary data collection techniques.

Following an exploratory path, and current opportunities; it would be appropriate to begin this research with qualitative techniques. This would then become the stepping stone for a much larger investigation/survey with quantitative questionnaire for future researchers.

According to Creswell (2003), characteristics of qualitative research include: 

Takes place in a natural setting.



Diversity of data collection methods.



Emergent rather than tightly preconfigured.



Fundamentally interpretative.



Views phenomena holistically.



Requires research flexibility.



Activities of collecting, analysing and writing up data are simultaneous.

Initially, qualitative interviews would help to explore the issues of hard and soft HRM with hospitality trade people. Hotels would be a starting point because they are numerous, prominent, and have ‗departments and documents‘ to deal with HRM. This will ensure easy access to both information and participants. Hotel owners, managers, and senior level employees would be targeted because they can talk authoritatively. Theoretical-sampling techniques would be a suitable option to sample the population. Likewise, Silverman (2006) Towards the Understanding of Human Resource Management Issues in the Current Hospitality Industry

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suggests sampling in qualitative research is neither statistical nor purely personal; it is or should be theoretically grounded. This is likely to be more productive than a random selection from the entire population of the industry. General staff could be part at the second stage of the research (quantitative questionnaire) in much larger numbers as discussed earlier.

The interview data will be analysed using themes and codes both from the literature and new ones emerging from the data. As Patton (2002) explains, qualitative data interpretation and analysis involve making sense out of what people have said, looking for patterns, putting together what is said in one place with what is said in another place, and integrating what different people have said.

CONCLUSION This article brings more understanding of HRM issues currently exercised by the industry.

There are several approaches to HRM. Size, scale, opportunity, type and culture of a company influence the HRM activity within it. However, as it is found, it would be interesting to investigate the appropriateness of hard and soft HRM issues in hospitality organisations. The findings would bring factors which should be considered to the application of soft or hard HRM. This will help not only the academics to widen understanding and knowledge but also for the practitioners to apply and improve their efficiency. This would be particularly useful during this economically challenging time. The study could also be extended to other hospitality organisations (i.e. restaurants, guest houses, gamming industries, theme parks) with a view to determining which type of HRM, hard or soft, works best in individual hospitality industry sub-sectors.

REFERENCES         

Creswell, J. W. (2003) Research design: qualitative, quantitative and mixed approaches.

Thousand Oaks, CA: SAGE Publications.

Ferdinand, N. and Kitchen, P. J., (2012). Events Management: an International Approach. Sage Publications: London.

Fitz-Enz, J. (1994) How to Measure Management. 2nd edition. McGraw-Hill: London.

Groucutt, J. (2005) Foundations of Marketing. Palgrave Macmillan: Hampshire.

Johnson, C. (2002) The Supply of Accommodation. In: Verginis, C. S. and Wood, R. (Eds.) (2002) Accommodation Management: Perspectives for the International Hotel Industry. Thomson Learning: Cornwall.

Knowles, T. (2001) Hospitality Management: an Introduction. 2nd edition. Longman: Harlow.

Kotler, et al. (2010) Marketing for Hospitality and Tourism. 5th edition. Pearson: London.

Kotler, P. et al. (1999) Principals of Marketing. 2nd European edition. Prentice Hall Europe: London.

Kotler, P. et al. (2010) Marketing for Hospitality and Tourism. 5th edition. Pearson: London.

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             

McGee, R., (1995) Remaking the Hospitality Industry. In: Rutherford, D. G. (1995) Hotel Management and Operations. 2nd edition. Van Nostrand Reinhold: London.

O‘Neill, J. W. (2012) The Determinants of a Culture of Partying Among Managers in the Hotel Industry. International Journal of Contemporary Hospitality Management. 24(1), pp. 81-96.

Patton, M.Q. (2002) Qualitative evaluation and research methods. 3rd ed. Newbury Park: Sage Publications.

Pfeffer, J. (1998) The Human Equation: Building Profits by Putting People First. Harvard Business School Press: USA. Poolthong, Y. and Mandhachitara, R. (2009) Customer expectations of CSR perceived service quality and brand effect in Thai retail banking. International Journal of Bank Marketing, 27(6), pp. 408-427.

Price, A., (2007) Human Resource Management in a Business Context. 3rd edition.

Cengage Learning: EMEA: UK. Ransley, J. and Ingram, H., (2000) Developing Hospitality Properties and Facilities.

Butterworth Heinemann: Oxford.

Rutherford, D. G. (1995) Hotel Management and Operations. 2nd edition. Van Nostrand Reinhold: London.

Saunders, M. et al., (2009) Research Methods for Business Students. 5th edition. Prentice Hall: London.

Silverman, D. (2006) Interpreting qualitative data: methods for analysing talk, text and interaction. 3rd ed. London: Sage Publications.

Slack, N. and Lewis, M. (2002) Operations Strategy. Prentice Hall: London.

Verginis, C. S. and Wood, R.(Eds.) (2002) Accommodation Management: Perspectives for the International Hotel Industry. Thomson Learning: Cornwall.

Walker, J. R. (2013) Introduction to Hospitality: an International Edition. 6th edition.

Pearson: London.

World Tourism Organisation- UNWTO., (2013). UNWTO Tourism Highlights 2013 Edition. UNWTO: Madrid.

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Industrial Entrepreneurship Led Economic Growth: an Empirical Analysis of Contemporary Industrial Entrepreneurship Trends Contributing to Economic Growth in Bangladesh A.K.M.A Patwary1

ABSTRACT Entrepreneurs and industrialisation are prerequisite to Globalisation and economic boom. The following brief study detailed and underpinned the partly empirical and causative analysis on how Economic growth is driven and motivated by industrial entrepreneurship. Considering the present economic scenario, pros and cons it has been manifested that economic growth should be based and progressed on concentration and subsequent development of all scale of industrial entrepreneurship schemes across all sectors in economy of Bangladesh. It has been also evident that entrepreneurs are key and vital to change the economic miseries and devastations. The absolute and timely recovery to redress and minimise economic crises and maximise economic betterment and welfare amidst of rational decision makings and of them the industrial entrepreneurship is considered one. Why the economy has been staggering low and declining characterised with regressive GDP and growth rate. Obviously definitive to determine that relationship between economic growth and prospective entrepreneurship in industries as well finding causes set entrepreneurship behind gradually for the greater interest of economic growth ascertainment. And, below efforts are deployed to manage all findings within the discussed circumstances.

Key words: Entrepreneurship, Industrialisation, economic growth, Economic development GDP, Macro economies, Endogenous growth, RMG sector.

INTRODUCTION Economic growth has been always high on the research agenda of modern economists and Government. It is through entrepreneurship that new source of supply are discovered and creation of new business organisations that directly affect the economy. Creation of new business opportunities through entrepreneurship, productivity and innovation leads to economic growth. This therefore means that when there is more entrepreneurship in an economy more growth is expected.

Entrepreneurship is a combination of innovative ideas by which the management skills resources meet identified needs in the market place. Entrepreneurs implement actions that are not generally done in the ordinary course of business. The concept of entrepreneurship has 1

Lecturer, Business Department, London Churchill College.

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been around for a very long time, but its resurgent popularity implies a sudden discovery.

Entrepreneurship constitutes the driving force of the economic dream. Entrepreneurship is one of the four mainstream economic factors: land, labour, capital and entrepreneurship.

Garrison (2001) has integrated economic growth into macroeconomics by showing how time preference, saving, and technological innovation deepen the structure of production and expand future output. The structure of production has been a distinctive feature and its integration into growth theory is a significant advance on the neoclassical theory of growth, which contains no structure of production. Kirzner (1985) has emphasized the distinction between secular growth—the planned growth that comes about from increasing resources through savings—and entrepreneurial growth, which is the spontaneous growth that occurs through the discovery of previously unexploited opportunities. In terms of how entrepreneurship has been stimulant in economic growth, there exist enormous discussions and debates but it is, however, eminent to realise the importance of constant innovations and rivalry enhancements (Todtling & Wanzanbock, 2003). There has been a problem in defining and measuring entrepreneurial factors and has further complicated the exact contributions to economic growth.

This research discourses how entrepreneurship can be directly related to economic growth and how industrial entrepreneurship is at the heart of economic growth of Bangladesh.

Entrepreneurship is basically concerned with creating wealth through production of goods and services. This results in a process of upward change whereby the real per capita income of a country rises overtime or, in other words, economic development takes place. Thus entrepreneurial development is the key to economic development. In fact, it is one of the most critical inputs in the economic development of a region. It speeds up the process of activating factors of production leading to a higher rate of economic growth, dispersal of economic activities and development of backward regions. Bangladesh is a country of immense potential of productivity and mass growth; a relative advantage of Bangladesh is cheap labour and cheap raw materials with hardworking people with little capacity of entrepreneurs up and down the country that lags behind the economic prosperity.

Entrepreneurship also injects entrepreneurship by starting a chain reaction when the entrepreneur continuously tries to improve the quality of existing goods and services and adds new ones. So, the identification and development of first generation entrepreneurs through Entrepreneurial Development Programmes is an important strategy. Consequently, planners realized that absence of a strong entrepreneurial base acts as a serious handicap in the industrial development of a region. It is the entrepreneurial spirit of the people, which can transform the economy into growth and mobilization. Building the trend of entrepreneurs is of utmost significance for achieving the goal of economic development. In Bangladesh, large enterprises account for only 7.05 per cent of industries whereas small and medium-sized businesses account for 92.95 per cent (In the Outline Perspective Plan (OPP) of Bangladesh 2010 – 2021).

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The key criteria of one‘s research success will be whether a set of clear objectives and expected to achieve these objectives set out. To critically analyse how industrial entrepreneurship largely contributes to economic growth is one of the mostly required objectives of this entire study.

Background to the study: Being an economy of one of least developed countries, the socio economic development of Bangladesh has not progressed up to the mark. The government backed industrialisation has not been made throughout past decades which resulted into slowing down the GDP growth and terribly lower economic growth recorded. It is inevitable to point out that some private entrepreneurship initiatives were made and carried out which brought some manufacturing operation and physical investment in couple of industry sector especially Garments and Information technology over couple of years. And, limited productivity in some industries has enhanced our GDP to little extent.

However, the current economic state of Bangladesh is in a severe need of intensively massive entrepreneurship for rapid transition in the socio economic development. Government has been putting effort and using all organs of Government to work on entrepreneur friendly regulations and new policies to support people to come forward to be encouraged for all small medium enterprises and large enterprises in some priority industries and other industries with potentials. Since the past governments, the concerned law makers have not realised the vitality of patron the entrepreneurship trend and culture to secure substantial economic growth. Nowadays they realise the necessity of stable and sustained social development including economic self reliance. Now people, private small entrepreneurs gradually feel that their initiatives regardless of size, nature would change at the micro economic level and that would aggregately establish the economic recovery.

It is also observed that current global economic block BRICS economies have strengthened and equipped their prestigious absolute positions relatively to other world economies using the economic scale of production in form of large scale of industrialisation till to date.

As a whole, the economic growth has faced economic downturn and became prevalent for last couple of decades and lack of visionary and leadership in entrepreneurship sharply declined the possibility of economic failure where all research endeavours undermined exploring the key way to balance a steady growth of economy. Nonetheless, some sectors embraced and facilitated slow step forward in few industry due to industrial entrepreneurship in collaboration with some financial and infrastructural engineering companies and stimulus plans in industry earlier. And, noticeable changes have alarmed and woke up all allied partners and bodies to align their policies towards the objective of industrialisation ahead and aspiration for economic growth. In the fiscal year of 2007 and 2008 this RMG industry earned more than 10.7 billion US dollars from exports, comprised over 4700 factories, employed two and a half million workers including male and female (predominantly female), Industrial Entrepreneurship Led Economic Growth: an Empirical Analysis of Contemporary Industrial Entrepreneurship Trends Contributing to Economic Growth in Bangladesh

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and accounted for more than 76 % of the country‘s total export earnings (Mottleb & Sonobe, 2009).

Entrepreneurial Effects in the Growth of Economy To sum up the contributions of entrepreneurship to economic growth, Carree and Thurik (2002) have provided five strands of empirical evidence to show their involvement. The first evidence mainly deals with the turbulence effect of entrepreneurship on the growth of economy. Turbulence can be viewed as the total entries and exits in regions or industries and can easily be interpreted as one of the powerful indicators of entrepreneurial activities. The effect of and changes in size distributions in regions represents the second strand of evidence as identified by the two researchers (Lioyd-Ellis & Bernhardt, 2000).

Develop new markets: Entrepreneurs are resourceful and creative. They can create customers or buyers which makes entrepreneurs different from ordinary businessmen to perform traditional functions of management.

Discover new sources of materials: Due to their innovative nature, Entrepreneurs persist on discovering new sources of materials to improve their enterprises and enjoy a comparative advantage in terms of supply, cost and quality.

Mobilise capital resources: Entrepreneurs are the organizers and coordinators of the major factors of production, such as land labour and capital.

Introduce new technologies, new industries and new products: Entrepreneurs can introduce something new or something different through entrepreneurial spirit. Every year, there are new technologies and new products.

Create employment: The biggest employer is the private business sector. Millions of jobs are provided by the factories, service industries, agricultural enterprises, and the numerous small-scale businesses.

Literature review and synthesis This section reviews the empirical literature examining the relationships between growths, entrepreneurship and then review theories of entrepreneurship. The following is a review of empirical studies using the most prevalent measures of entrepreneurial activity: new business start-ups and other prevalent theories.

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New Business Start-ups as Entrepreneurship The majority of the evidence suggests new firm start-ups enhance growth. Audretsch and Keilbach (2004) introduce entrepreneurship capital into a standard production function, to find that the degree of entrepreneurship capital (measured by start-ups) has a positive impact on GDP. Endogenous growth theory suggested that entrepreneurship is an important determinant of growth. Such models predicted that an increase in the resources devoted toward innovation and R&D mechanically lead to higher growth, implying positive correlation between entrepreneurship and growth (Aghion & Howitt, 1992; Grossman and Helpman, 1991; Segerstrom, 1991, 1998); entrepreneurship is the means to launch, but not sustain, the economy.

It is believed that the change in size distribution and its ultimate effects can have a significant impact on the growth of economy (Caree, Van Stel, Thurik & Wennekers, 2002). The number of markets participants in any industry will finally have an important effect on economic growth and this is recognised as another strand of evidence of the role or entrepreneurship in economy expansion (Chell & Ozkan, 2010).

The term ―entrepreneur‖ goes back to 1755 and Cantillon. Here the function of the entrepreneur was, quite explicitly, ―… [to] buy the country produce from those who bring it or to order it to be brought on their account. They pay ascertain price … to resell wholesale or retail at an uncertain price‖ (Cantillon, 1931, p. 51). In short, the entrepreneur at the outset was essentially an independent commodity speculator. As the eighteenth century progressed, so the notion of profit maximisation emerged as the motive for entrepreneurial action (Long, 1983, p. 49). But it was at the height of the Industrial Revolution in Britain that what was expected of the entrepreneur began to adjust to the new demands of rapid industrial development. According to Say (1964; first published in 1803), the entrepreneur now had to be sufficiently multifaceted to ensure the proper co-ordination of a range of activities such as the raising of capital, the organization of production, and the distribution of the product: the entrepreneurs were their own managers. In Casson‘s model, therefore, the position of the supply curve for entrepreneurship depends on: the number of able entrepreneurs in the economic system (i.e. the stock and distribution of entrepreneurial ability among the population); and the proportion of able entrepreneurs who are qualified. The latter is in turn determined by the distribution of personal wealth, the organization of education, the social structure, the degree of social mobility between entrepreneurial and non-entrepreneurial groups, and institutional framework, including the effectiveness of mechanisms used by large firms; McClelland identifies specific child-rearing patterns as crucial to the development of high N-Ach and hence as essential to the emergence of entrepreneurship. Among other things, child-rearing practices conducive to entrepreneurship emphasise reasonably high standards of excellence, self reliance training and mastery, maternal warmth and low father dominance.

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While orthodox Marxian socialist principles firmly believed and aligned the rational allocation of all relevant resources required and emphasised the enhancement of production and manufacturing works for an equitable society in the line with other socialist philosophies for new nations, it could be equally applied for economy of Bangladesh primarily.

Furthermore, it is argued that these practices are in turn primarily determined by parents‘ religious and ideological values. Although McClelland‘s theory does not increase economists‘ understanding of the essence of the entrepreneurial function, it does yield some new insights into the factors influencing entrepreneurial supply. Included here is its explanation of the effects of family socialisation (and other aspects of the social and cultural environment) on the development of N-Ach and hence on the subsequent emergence of entrepreneurs.

Boettke and Coyne have advanced the provocative thesis that entrepreneurship is not the cause of economic growth. Because entrepreneurship is so widespread, it cannot explain differences in growth rates between different regions.

In their words, ―... entrepreneurship cannot be the cause of development‖, but rather ―the type of entrepreneurship associated with economic development is a consequence of it‖. That is, development is caused by the adoption of certain institutions, which in turn channel and encourage entrepreneurial aspect of human action in a direction that spurs economic growth (Boettke & Coyne, 2003, p. 3).

Boettke and Coyne (2003) single out private property and the rule of law as the main institutions that lead to productive entrepreneurship and growth. Boettke and Coyne‘s emphasis on institutions leads directly to the question of how proper institutions emerge.

The Government of Bangladesh reorganised the SME Task Force in 2010 in order to formulate a realistic strategy for promoting growth and competitiveness among SMEs (Financial Express, 2012).

Caree and Thurik (2003) have recently found the relevant relationship of innovation, creative change and creativity with economic growth. Similarly, in twentieth century writers emphasised the long term linkage of economic growth and entrepreneurship (Cipolla, 1981).

Institutional theory: In the context of a mature industry, institutional theory helps explain the great degree of isomorphism and similarity of behaviours and strategies among firms by suggesting that three types of forces act to cause firms to become similar within an industry (DiMaggio & Powell, 1983):  Coercive isomorphism – Social sanctions or laws effect an exogenous imposition of structure and order.

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 

Mimetic isomorphism – Firms observe the structure and performance of each other (e.g., benchmarking). Successful structures are copied.

Normative isomorphism – Values are socialized through extra-firm organizations (e.g., professionals) to encourage the adoption of selected structural features.

But such traditional organizational perspectives have much less to say about the initial emergence of the industry – how organizational fields are constructed, how the artefacts of the industry (firms, markets, value chains, etc.) are initially produced and organized, and how these result over time from the decisions and behaviours of the early actors (Chiles et al., 2004).

Much of the recent strategy literature on change and evolution in industry structures has drawn from institutional theory‘s conception of path dependency, which argues that institutions are the culminating result of specific historical processes that have occurred (North, 1981). These historical processes can involve actions that initiate feedback mechanisms that make going back politically impractical, so that paths that were once viable options become lost (Pierson & Skocpol, 2002).

Schumpeter Entrepreneurship theory According to Schumpeter, ―the essence of entrepreneurship is the ability to break away from routine, to destroy existing structures, to move the system away from the even, circular flow of equilibrium. For Schumpeter the entrepreneur is the disruptive, disequilibrating force that dislodges the market from the somnolence of equilibrium‖ (Kirzner, 1973, p. 127).

The primary consequence of Schumpeter‘s entrepreneurship was the long-run economic development of the capitalist system.

Kirzner has gone some way toward reconciling his theory of entrepreneurship with Schumpeter‘s. Entrepreneurs who successfully exploit any of the three kinds of opportunities increase the value of output by increasing the efficiency with which scarce resources are used.

Overview to Industrial context in Bangladesh: Given trade liberalisation and free market economy and philosophies opened up the access of challenge, completion and some amount of stark threats to emergence and building of Bangladeshi economy and gripped the third world developing economy in the arm of octopus which slowdown economic growth of Bangladesh.

To ensure rapid growth and unprecedented entrepreneurship the following overt scenario should be glanced at: Industrial Entrepreneurship Led Economic Growth: an Empirical Analysis of Contemporary Industrial Entrepreneurship Trends Contributing to Economic Growth in Bangladesh

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Bangladesh and present Government has been relentlessly striving for the economic development driven by sharp industrial growth and mobilisation of local natural and indigenous resources with technological supports.

Though Global trade and business environment posed much challenges and poised impacts of competitiveness, Bangladesh and industrialisation pace in Bangladesh is able to align with global spree in terms of qualitative and quantitative aspects.

And export oriented industrialisation has marked an unrivaled growth and import substitution industries are also developing more than earlier; resulting in a lower import orientation.

High tech innovations are highly prioritised in both private and public sectors and PPP enterprises are approaching these techno intensive and tech backed industries creating a great dimension in industrialisation.

SME entrepreneurs are at the forefront and acting as contributors to successful economic growth in regardless thrust and potential and craft industries which enliven the rural economies and ensure women economic empowerment and economic leadership as a whole to a large extent.

Despite all above outlined, RMG sector and textile industries are described and regarded as the most successful and efficient of all industry sectors and account for 13% of aggregate GDP and recorded and proven 79 % of export earning foreign exchange (www.epb.gov) and cause reasonable reduction in deficit balance of trade.

Women in entrepreneurship in Bangladesh In Bangladesh entrepreneurship in Bangladesh constitutes 10% of total business entrepreneurs in businesses as the precise picture of women entrepreneurship in Bangladesh.

Contribution by women is no less than men in society and economy and their contribution is increasing steadily in most of forefront sectors of Economy despite manifold drawbacks and limitations created by male dominated society along with women unfriendly policies and legislations across the lawmakers amidst different government rules.

In addition, the economy requires drive and collective efforts to promote women entrepreneurship culture across Bangladesh. Moreover, this culture is gradually developing and being popular to women of this modern age and rate of women entrepreneurship in urban area are marked by lower growth than that of rural area.

RECOMMENDATIONS AND CONCLUSION There are no doubts about the inevitability and establishment of the spree for entrepreneurship in every level and sector initiated driven by both men and women and phenomenal endeavour to translate the collective effort to realise the economic aspiration and achievement for Bangladesh. Bangladesh, likewise other highly industrial economies such as Industrial Entrepreneurship Led Economic Growth: an Empirical Analysis of Contemporary Industrial Entrepreneurship Trends Contributing to Economic Growth in Bangladesh

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Japan, China and Korea, Singapore and Hong Kong, set a vision of enormous industrial nations to march ahead and get to it in no time for stabilising the economic growth and sustain it down the line towards far reaching economic development.

Some recommendations are put forward to take them into immediate account.

However, there are more essential points not pointed here: a. Allocation of logistic, financial support and infrastructural facilities to facilitate industrialisation. b. Encourage young men and women and embed the entrepreneurship learning and education in higher studies. c. Ensure the cost cut of technology and fundamental supports behind entrepreneurship and availability of all required supports. d. Governmental policies and regulations should be convenient, supportive and incentive to be given, as well as larger women participation should be welcomed. e. More specialised EPZ and industrial zones will ensure mass industrialisation and government should address the immediate establishment of those projects.

If one recalled the past of economic dominance and supreme leadership by the UK, Germany Russia in early 18th and 19 th century, it was remarkable. So far Bangladesh in the context of world has surprisingly demonstrated substantial capability and promising potential to outmarch and outpace many of the emerging economies faster and the potential industrial entrepreneurship will pave the way and ensure win in this target. The success of Bangladeshi economy mostly lies in rapid and incessant growth of industrial entrepreneurship and justified in above. Therefore, all private and public patrons and think tanks and legislators should unanimously get the ball rolling, put all out efforts to gain the economic growth, eradicate all crises, backwardness and long termed trajectory.

REFERENCES  Audretsch, D.B. and Keilbach, M. (2004) Entrepreneurship Capital and Economic Performance, Regional Studies, 38(8), pp. 949-959.  Aghion, Philippe and Peter Howitt (1992). Growth and Unemployment, mimeo, University of Western Ontario.  Boettke, P. J. and Coyne, Christopher J. (2003) Entrepreneurship and Development: Cause or Consequence? available on http://mercatus.org/uploadedFiles/Mercatus/Publications/Cause%20or%20Consequence.p df [Accessed on 29th of September 2013].  Cantillon, R. (1931) The Circulation and Exchange of Goods and Merchandise, Chapter 13 of Higgs, H. (Ed.), Essai sur la Nature du Commerce en Général, Macmillan, London.  Chell E., & Ozkan, K. M. (2010) Nascent Entrepreneurship and Learning. Northampton: Edward Elgar .  Carree, M., Van Stel, A., Thurik, R., & Wennekers, S. (2002) Economic development and business ownership: an analysis using data of 23 OECD countries in the period 19761996. Small Business Economics, Vol. 19, pp. 271-290.

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 Cipolla, C.M. (1981) Before the industrial Revolution: European Society and Economy,1000-1700. 2nd Edition, Cambridge, UK: Cambridge University Press.  Carree, M.A. and Thurik, R. (2003) The Impact of Entrepreneurship on Economic Growth in Audretsch, D. B. and Acs, Z. J. (eds.), Handbook of Entrepreneurship Research, Boston/Dordrecht: Kluwer-Academic Publishers, pp. 437-471.  Chiles, T.H., Meyer, A.D.,and Hench, T.J. (2004) Organizational emergence: The origin and transformation of Branson, Missouri's musical theatres. Organization Science, 15(5), pp. 499‐519.  DiMaggio, P.J. and Powell, W. W. (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, Vol. 48, pp. 147‐160.  Financial Express (2012), Promoting growth of entrepreneurship, September 12, 2012, (Online news).

Available at http://www.thefinancialexpress bd.com/more.php?news_id=143093&date=2012-09-12 [Accessed on 14th July 2013].  Garrison, R. W. (2001). Time and Money: The Macroeconomics of Capital Structure.

London: Routledge.  Grossman, G. M. and Helpman, E. 1991 Innovation and Growth in the Global Economy.

Cambridge, MA: MIT Press.  Long, W. (1983) The Meaning of Entrepreneurship, American Journal of Small Business, 8 (2), pp. 47-5.  Johnson, B. and Christensen, L. (2010) Educational Research: Quantitative, Qualitative, and Mixed Approaches. UK: SAGE.  Jankowicz, A.D. 2005. Business Research Projects. 4th edition. London: Thomson Learning.  Kirzner, I. (1985) Discovery and the Capitalist Process. Chicago: University of Chicago Press.  Motalleb, K.A., Sonobe, T. (2009) An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh. National Graduate Institute for Policy Studies Global Center of Excellence.

[Online] at http://www3.grips.ac.jp/~globalcoe/e/publications/working_papers/empirical/GCOE_EW P21.pdf.  North,D. C. (1981) Structure and change in economic history. New York, NY: Norton.  Saunders, M., Lewis P. and Thornhill, A. (2009) Research methods for business students.

5th edition. Harlow: FT/Prentice Hall, England.  Schumpeter, Joseph A. (1942) Capitalism, Socialism and Democracy. (Reprint, 1950).

New York: Harper and Row.  Pierson, P. And Skocpol, T. (2002) Historical institutionalism in contemporary political science. In Katznelson, I. and Milner, H. V. (Eds.), Political science: The state of the discipline. New York, NY: W.W. Norton & Company, pp. 693‐721.  Todtling, F., and Wanzenbock, H (2003) Regional differences in structural characteristics of start Entrepreneurship & Regional Development,15 (4), pp. 351-370.  Website sources:  http://voices.yahoo.com/challenges-women-entrepreneurs-bangladesh-598592.html [Accessed on 20th September 2013].  http://www.epb.gov.bd/ [Accessed on 20th September 2013].

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