Business Perspectives and Research, Ahead of Print.
This article explores the impact of foreign institutional investor’s (FII) ownership on the investment efficiency of Indian manufacturing firms. In this article, unbalanced panel data is used, in total, 21,214 firm-year observations of 1,205 companies listed in Centre for Monitoring Indian Economy (CMIE) COSPI (CMIE Overall Share Price Index) are taken into account. The data range is from 2001 to 2019. This research article considers investment-investment opportunities sensitivity as the proxy for investment efficiency, where investment opportunities are measured Tobin’s Q. As per our findings FII’s ownership impacts investment efficiency in a negative way. It is further found that this inverse relationship between FII’s ownership and investment efficiency is more pronounced in resource abundant firms, compared to the resource constrained firms. In this study both fixed as well as random effect models are developed incorporating robust standard error, additionally system generalized method of moments (GMM) model as well as two step Heckman model are also used to check the robustness of the findings.This study adds to the existing literature as a pioneering study on impact of FII’s ownership on firm’s investment efficiency in the context of India, a large emerging market economy.
Category Archives: Business Perspectives and Research
Price Discovery in the Presence of Embedded Location Options: The Evidence from Chana Contracts in India
Business Perspectives and Research, Ahead of Print.
The presence of embedded location options in agricultural commodity futures contracts allows for several additional deliverable locations in addition to the reference location for the delivery of the underlying asset using location specific adjustments to futures settlement prices. Price discovery contribution assessment in this context needs to be done simultaneously across futures and cash markets in all these deliverable locations in contrast to present bivariate studies in the Indian context, which only consider futures and the cash market at reference location. We assess price discovery contributions across all the deliverable cash markets and the most liquid futures contract for Chana (Gram/Chickpea) in India. We find that while futures lead price discovery as expected, the cash market at the reference location plays almost no role in price discovery with cash markets at additional deliverable locations playing a larger than expected role. We interpret these results as arising from large values of location options for Chana due to inappropriate specifications of deliverable asset locations and associated premiums and discounts. These results provide evidence that exchanges and regulators need to monitor option values and optimize delivery specifications of futures contracts so that they perform their functions of price discovery and risk transfer well.
The presence of embedded location options in agricultural commodity futures contracts allows for several additional deliverable locations in addition to the reference location for the delivery of the underlying asset using location specific adjustments to futures settlement prices. Price discovery contribution assessment in this context needs to be done simultaneously across futures and cash markets in all these deliverable locations in contrast to present bivariate studies in the Indian context, which only consider futures and the cash market at reference location. We assess price discovery contributions across all the deliverable cash markets and the most liquid futures contract for Chana (Gram/Chickpea) in India. We find that while futures lead price discovery as expected, the cash market at the reference location plays almost no role in price discovery with cash markets at additional deliverable locations playing a larger than expected role. We interpret these results as arising from large values of location options for Chana due to inappropriate specifications of deliverable asset locations and associated premiums and discounts. These results provide evidence that exchanges and regulators need to monitor option values and optimize delivery specifications of futures contracts so that they perform their functions of price discovery and risk transfer well.
Exploring the Effects of Firm-Specific Factors on Financing Preferences of Listed SMEs in India
Business Perspectives and Research, Ahead of Print.
Small and medium-sized enterprises (SMEs) are the driving force for the robust socioeconomic growth of a country. The study primarily aims to empirically evaluate the impact of certain firm-specific factors on the financing preferences of the listed SMEs with specific reference to India. It attempts to examine their financing practices and also investigates if they follow the order explained under various theories of finance. The sample consists of 134 listed SMEs on NSE as well as BSE SME exchange. They have been studied for the period from 2014 to 2019. The sample and the time period of the study differentiates it from the existing studies in the domain. It concludes that though majority of the variables included in the model are statistically significant, there is a possibility of influence of other micro-level variables or macro-level economic factors on the financing decisions of the listed SMEs. It is also revealed that for their financial needs, SMEs prefer short-term spontaneous sources, that is, payables and provisions, then accumulated profits followed by short-term borrowings and in last opt for the long-term debt. The study also found that there is no single theory that can completely explain the financing behavior of the listed SMEs. Moreover, it is also observed that no additional benefit is available for SMEs out of listing in India.
Small and medium-sized enterprises (SMEs) are the driving force for the robust socioeconomic growth of a country. The study primarily aims to empirically evaluate the impact of certain firm-specific factors on the financing preferences of the listed SMEs with specific reference to India. It attempts to examine their financing practices and also investigates if they follow the order explained under various theories of finance. The sample consists of 134 listed SMEs on NSE as well as BSE SME exchange. They have been studied for the period from 2014 to 2019. The sample and the time period of the study differentiates it from the existing studies in the domain. It concludes that though majority of the variables included in the model are statistically significant, there is a possibility of influence of other micro-level variables or macro-level economic factors on the financing decisions of the listed SMEs. It is also revealed that for their financial needs, SMEs prefer short-term spontaneous sources, that is, payables and provisions, then accumulated profits followed by short-term borrowings and in last opt for the long-term debt. The study also found that there is no single theory that can completely explain the financing behavior of the listed SMEs. Moreover, it is also observed that no additional benefit is available for SMEs out of listing in India.
Profiling ROPO Shoppers: Shopping Value Perspective
Business Perspectives and Research, Ahead of Print.
Today’s consumers are multichannel shoppers, that is, they have many channel options for searching product-related information and purchase. This study focuses on one such form of multichannel shopping behavior of online search and offline purchase sequence known as ROPO (research online and purchase offline) behavior in the post-COVID-19 pandemic context. As shoppers return to stores post-COVID-19 pandemic, understanding this ROPO behavior will help retailers to develop strategies to meet their needs. This study attempts to profile the shoppers showing ROPO behavior based on the theory of perceived value of shopping, that is, shoppers select the channels at each stage of shopping that provide maximum value considering the various costs associated with those channels. Six drivers of ROPO behaviors are confirmed based on the sample of 526 respondents using confirmatory factor analysis. Furthermore, three distinct segments of shoppers—risk averters, value maximizers, and convenience seekers—showing ROPO behaviors are identified using k-means cluster analysis. Knowledge of these distinct shopper segments will provide managerial insight for retailers to provide an excellent shopping experience to their customers during the post-COVID-19 pandemic.
Today’s consumers are multichannel shoppers, that is, they have many channel options for searching product-related information and purchase. This study focuses on one such form of multichannel shopping behavior of online search and offline purchase sequence known as ROPO (research online and purchase offline) behavior in the post-COVID-19 pandemic context. As shoppers return to stores post-COVID-19 pandemic, understanding this ROPO behavior will help retailers to develop strategies to meet their needs. This study attempts to profile the shoppers showing ROPO behavior based on the theory of perceived value of shopping, that is, shoppers select the channels at each stage of shopping that provide maximum value considering the various costs associated with those channels. Six drivers of ROPO behaviors are confirmed based on the sample of 526 respondents using confirmatory factor analysis. Furthermore, three distinct segments of shoppers—risk averters, value maximizers, and convenience seekers—showing ROPO behaviors are identified using k-means cluster analysis. Knowledge of these distinct shopper segments will provide managerial insight for retailers to provide an excellent shopping experience to their customers during the post-COVID-19 pandemic.
Extending Information System Success Model with Customer Experience: A MOOC System Evaluation
Business Perspectives and Research, Ahead of Print.
An extension of the open education resource (OER) and open course ware (OCW) movement, massive open online courses (MOOCs) have changed the education landscape. MOOCs offer free courses from reputed universities to learners across the world. Despite immense popularity and universal adoption, very little is known about what constitutes MOOC success and effectiveness. The purpose of this study was to investigate the factors influencing MOOC success by developing a model named the learner satisfaction model for MOOCs (LSMM). The model was empirically tested through a cross-sectional research design. Primary data were collected using purposive sampling from 227 respondents in India. The partial least square structural equation modelling (PLS-SEM) technique was used for testing the hypothesized relationships. The outcomes demonstrated that MOOC system usage significantly influenced the user satisfaction of MOOC learners. Also, the learner experience positively influenced MOOC system usage and satisfaction. However, it was observed that system quality influenced satisfaction but did not impact usage, and information quality had no impact on system use and satisfaction. Although the study has limited generalizability, the findings will help the MOOC platform providers, facilitators, and other stakeholders to design and implement the MOOCs in such a way to enhance their success and effectiveness.
An extension of the open education resource (OER) and open course ware (OCW) movement, massive open online courses (MOOCs) have changed the education landscape. MOOCs offer free courses from reputed universities to learners across the world. Despite immense popularity and universal adoption, very little is known about what constitutes MOOC success and effectiveness. The purpose of this study was to investigate the factors influencing MOOC success by developing a model named the learner satisfaction model for MOOCs (LSMM). The model was empirically tested through a cross-sectional research design. Primary data were collected using purposive sampling from 227 respondents in India. The partial least square structural equation modelling (PLS-SEM) technique was used for testing the hypothesized relationships. The outcomes demonstrated that MOOC system usage significantly influenced the user satisfaction of MOOC learners. Also, the learner experience positively influenced MOOC system usage and satisfaction. However, it was observed that system quality influenced satisfaction but did not impact usage, and information quality had no impact on system use and satisfaction. Although the study has limited generalizability, the findings will help the MOOC platform providers, facilitators, and other stakeholders to design and implement the MOOCs in such a way to enhance their success and effectiveness.
Perception of Organizational Politics and Career Satisfaction: Mediating Role of Networking Ability and Self-promotion Behavior
Business Perspectives and Research, Volume 11, Issue 3, Page 387-400, September 2023.
This study has developed a model incorporating employee networking ability and self-promotion behavior in the relationship between perception of organizational politics and career satisfaction. Specifically, this study examined (a) the direct association of perception of organizational politics, networking ability, and self-promotion behavior with career satisfaction, and (b) mediating role of networking ability and self-promotion behavior in the relationship between perceptions of organizational politics and career satisfaction. Positivist research philosophy and deductive reasoning approach were adopted to conclude. “AMOS” structural equation modeling was used to examine self-reported perceptual cross-sectional data acquired from 725 employees working in Nepalese commercial banks. The direct influence of organizational politics on career satisfaction was significant, although it was in the opposite direction of the predicted connection. Both networking abilities and self-promotion behavior mediated the association between organizational politics perception and career satisfaction. Besides the hypothesized relationship, a causal impact of self-promotion behavior on networking ability was established to improve the model fit index. Direct and indirect (through networking ability and self-promotion behavior) effects of perception of organizational politics on an employee’s career satisfaction were measured. It issuggested that the findings have a number of theoretical and practical implications.
This study has developed a model incorporating employee networking ability and self-promotion behavior in the relationship between perception of organizational politics and career satisfaction. Specifically, this study examined (a) the direct association of perception of organizational politics, networking ability, and self-promotion behavior with career satisfaction, and (b) mediating role of networking ability and self-promotion behavior in the relationship between perceptions of organizational politics and career satisfaction. Positivist research philosophy and deductive reasoning approach were adopted to conclude. “AMOS” structural equation modeling was used to examine self-reported perceptual cross-sectional data acquired from 725 employees working in Nepalese commercial banks. The direct influence of organizational politics on career satisfaction was significant, although it was in the opposite direction of the predicted connection. Both networking abilities and self-promotion behavior mediated the association between organizational politics perception and career satisfaction. Besides the hypothesized relationship, a causal impact of self-promotion behavior on networking ability was established to improve the model fit index. Direct and indirect (through networking ability and self-promotion behavior) effects of perception of organizational politics on an employee’s career satisfaction were measured. It issuggested that the findings have a number of theoretical and practical implications.
What Drives People to Adopt Grocery Apps? The Moderating Role of Household Size
Business Perspectives and Research, Ahead of Print.
With the advancement of information technology, varied important applications have eventually brought a change in the people’s lifestyle. Moreover, smartphones gave a new face with the emergence of mobile apps. Grocery apps are one of such applications that have created customized and finest shopping experiences for consumers today. The purpose of the paper is to highlight the underlying factors influencing a consumer’s behavioral intention (BI) to adopt and accept the technology (i.e., grocery apps). The unique constructs have been derived from potential models of technology acceptance. The paper investigated the effects and relationships of such factors in adoption of grocery apps and its actual usage. Thus, a general adoption model was evolved that provided a comprehensive understanding of the consumers’ intention to adopt the grocery apps and identify the level of its acceptance. Based on the insights from prior research, a new model has been developed. 440 respondents have provided their valuable responses. The research findings revealed that household size significantly moderates the relationship between BI and actual use (AU).
With the advancement of information technology, varied important applications have eventually brought a change in the people’s lifestyle. Moreover, smartphones gave a new face with the emergence of mobile apps. Grocery apps are one of such applications that have created customized and finest shopping experiences for consumers today. The purpose of the paper is to highlight the underlying factors influencing a consumer’s behavioral intention (BI) to adopt and accept the technology (i.e., grocery apps). The unique constructs have been derived from potential models of technology acceptance. The paper investigated the effects and relationships of such factors in adoption of grocery apps and its actual usage. Thus, a general adoption model was evolved that provided a comprehensive understanding of the consumers’ intention to adopt the grocery apps and identify the level of its acceptance. Based on the insights from prior research, a new model has been developed. 440 respondents have provided their valuable responses. The research findings revealed that household size significantly moderates the relationship between BI and actual use (AU).
Entrepreneurial Success: Key Challenges Faced by Malaysian Women Entrepreneurs in the Aged Care Industry
Business Perspectives and Research, Ahead of Print.
Women entrepreneurship is on the rise in Malaysia due to government support. However, financial, sociocultural, environmental, and individual factors handicap women’s entrepreneurial success in Malaysia. Even though women’s personality attributes such as tenderness, empathy, patience, and care fit with the need of the aged care industry, their involvement in this industry is minimal when compared to other businesses. The entry of Malaysian women as an aging care center operator may help the Malaysian government overcome the looming challenge of the aging population. This study investigates the challenges women entrepreneurs face in achieving entrepreneurial success in the aged care industry. Ten women entrepreneurs who were running aged care centers in Malaysia were interviewed. Semi-structured interviews were utilized to gather data, and Saldaña (2018) structured inductive data analysis methodology was used to analyze the data. A success model for women entrepreneurs in the service industry is proposed by identifying women entrepreneurs’ critical challenges in the aged care industry. Despite many challenges, the centers are still sustainable and depict women entrepreneurs’ potential to excel in this industry. This carries implications for the industry, policymakers, investors, and society. The present study proposes a business model for women entrepreneurs, a novel contribution to the mainstream literature.
Women entrepreneurship is on the rise in Malaysia due to government support. However, financial, sociocultural, environmental, and individual factors handicap women’s entrepreneurial success in Malaysia. Even though women’s personality attributes such as tenderness, empathy, patience, and care fit with the need of the aged care industry, their involvement in this industry is minimal when compared to other businesses. The entry of Malaysian women as an aging care center operator may help the Malaysian government overcome the looming challenge of the aging population. This study investigates the challenges women entrepreneurs face in achieving entrepreneurial success in the aged care industry. Ten women entrepreneurs who were running aged care centers in Malaysia were interviewed. Semi-structured interviews were utilized to gather data, and Saldaña (2018) structured inductive data analysis methodology was used to analyze the data. A success model for women entrepreneurs in the service industry is proposed by identifying women entrepreneurs’ critical challenges in the aged care industry. Despite many challenges, the centers are still sustainable and depict women entrepreneurs’ potential to excel in this industry. This carries implications for the industry, policymakers, investors, and society. The present study proposes a business model for women entrepreneurs, a novel contribution to the mainstream literature.
Impact of the US Dollar Index and Crude Oil on Prices of Arabica and Robusta Varieties of Indian Coffee
Business Perspectives and Research, Ahead of Print.
Coffee is one of the largest traded agri-plantation commodities consumed as a popular beverage across the globe. India exports 75% of its coffee to Europe, the USA, and other developed countries; however, prices depend upon multiple factors of national and international importance. This study makes an in-depth analysis of the US dollar, crude oil, International Coffee Organisation’s (ICO) coffee spot, and futures on Indian coffee auction prices of Arabica and Robusta. The study adopting causal research method examined cointegration and relative effect by administering Johansen cointegration, vector error correction model under VAR environment, VEC-Granger causality, and block exogeneity Wald test. The study found cointegration and long-run association of the US dollar index and crude oil on Arabica than Robusta coffee. Hence, any change in the prices of ICO spot, Arabica coffee futures, crude oil, and the US $ index leads to long-term change in the Indian Arabica coffee auction prices. Coffee exporter should hedge their currency risk on Arabica export and coffee farmers may anticipate increase in domestic prices against sharp rise in US dollar.
Coffee is one of the largest traded agri-plantation commodities consumed as a popular beverage across the globe. India exports 75% of its coffee to Europe, the USA, and other developed countries; however, prices depend upon multiple factors of national and international importance. This study makes an in-depth analysis of the US dollar, crude oil, International Coffee Organisation’s (ICO) coffee spot, and futures on Indian coffee auction prices of Arabica and Robusta. The study adopting causal research method examined cointegration and relative effect by administering Johansen cointegration, vector error correction model under VAR environment, VEC-Granger causality, and block exogeneity Wald test. The study found cointegration and long-run association of the US dollar index and crude oil on Arabica than Robusta coffee. Hence, any change in the prices of ICO spot, Arabica coffee futures, crude oil, and the US $ index leads to long-term change in the Indian Arabica coffee auction prices. Coffee exporter should hedge their currency risk on Arabica export and coffee farmers may anticipate increase in domestic prices against sharp rise in US dollar.
Operationalizing Organizational Capacity Assessment for Identifying Capability Gaps in the Indian Hospital Sector
Business Perspectives and Research, Ahead of Print.
This study interprets the development and validation of the organizational capacity assessment tool, which is designed to evaluate the gaps in capabilities of hospitals across India. This assessment tool was tested on 300 managers working in hospitals across 16 states of India, with a majority coming from small-sized hospitals. The 40-item measure assessed six factors of organizational capabilities, namely, organizational foundation, organizational resources, organizational capacities, core task implementation, benefits and impacts, and external relations. Gaps in the capacities were identified. Internal consistency was evaluated using the Cronbach’s alpha. Confirmatory factor analysis supported the inclusion of the items in the questionnaire. In addition, structural equation modeling was conducted to evaluate the goodness of fit of the model demonstrating the relationships between the study variables. It was found that individual factors such as core task implementation and organizational foundation significantly influenced benefits and impacts as well as external relations. Similarly, organizational resources positively impacted evaluation capacity outcomes. In contrast, organizational capacity had no significant influence on either benefits and impacts or external relations. This study only validates the capacity assessment tool; however, it needs to be measured with varied types of work personnel within the healthcare sector as there is a huge diversity in the work force of this area. Based on this empirical study, many future research implications were suggested.
This study interprets the development and validation of the organizational capacity assessment tool, which is designed to evaluate the gaps in capabilities of hospitals across India. This assessment tool was tested on 300 managers working in hospitals across 16 states of India, with a majority coming from small-sized hospitals. The 40-item measure assessed six factors of organizational capabilities, namely, organizational foundation, organizational resources, organizational capacities, core task implementation, benefits and impacts, and external relations. Gaps in the capacities were identified. Internal consistency was evaluated using the Cronbach’s alpha. Confirmatory factor analysis supported the inclusion of the items in the questionnaire. In addition, structural equation modeling was conducted to evaluate the goodness of fit of the model demonstrating the relationships between the study variables. It was found that individual factors such as core task implementation and organizational foundation significantly influenced benefits and impacts as well as external relations. Similarly, organizational resources positively impacted evaluation capacity outcomes. In contrast, organizational capacity had no significant influence on either benefits and impacts or external relations. This study only validates the capacity assessment tool; however, it needs to be measured with varied types of work personnel within the healthcare sector as there is a huge diversity in the work force of this area. Based on this empirical study, many future research implications were suggested.