a research & academic journal of business management

71
A Research & Academic Journal of Business Management ISSN-0975-7988 Vol 10 issue 2 July Dec 2019 Foreword Editorial 3 6 23 30 43 59 4 Anita R Singh, Divya. C, Saritha Kolluri, Veera Shireesha Sangu P. Senthilmurugan Impact of impact of mergers on consumers and employees with respect to banks in India Changing employee attitude with Respect to TQM and Profit Sharing on continuous improvement orientation Can Knowledge Transfer Be Considered Expatriate Success Archana S Kothavale Pharmaceutical Industry B.Thirumoorthi Relevance to The Diversity and Inclusion to The Contemporary India Executive’s Cognitive Factors with Reference to New Product Launch Success in Swati Patil Sujaine Mishra Gate No-8, General Sciences Building, 'C' Block, MSRIT Post, M S Ramaiah Nagar, MSRIT Campus, Bengaluru - 560 054, Website : www.msrim.in

Upload: others

Post on 16-Oct-2021

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: A Research & Academic Journal of Business Management

A Research & Academic Journal of Business Management

ISSN-0975-7988 Vol 10 issue 2 July Dec 2019

Foreword

Editorial

3

6

23

30

43

59

4

Anita R Singh, Divya. C, Saritha Kolluri, Veera Shireesha Sangu

P. Senthilmurugan

Impact of impact of mergers on consumers and employees with respect to banks in India

Changing employee attitude with Respect to TQM and Profit Sharing on continuous improvement orientation

Can Knowledge Transfer Be Considered Expatriate Success

Archana S Kothavale

Pharmaceutical Industry B.Thirumoorthi

Relevance to The Diversity and Inclusion to The Contemporary India

Executive’s Cognitive Factors with Reference to New Product Launch Success in

Swati Patil Sujaine Mishra

Gate No-8, General Sciences Building, 'C' Block, MSRIT Post, M S Ramaiah Nagar, MSRIT Campus, Bengaluru - 560 054, Website : www.msrim.in

Page 2: A Research & Academic Journal of Business Management

1

The M.S. Ramaiah Management Review is a peer reviewed research & academic journal in the field of management. It is a biannual publication which publishes research papers, case studies, interviews and book reviews in all the functional areas of management.

Editorial Board Members

Dr. Elizabeth Rose Professor, University of Leeds

Dr. Easwaramoorthy Rangaswamy Principal & Provost

Amity Global Institute Singapore

Dr. Nazrul Islam Adviser to the Board of Trustees & Dean of School of

Business Canadian University of Bangladesh

Prof. Raghunath R. Indian Institute of Management, Bangalore

Dr. Shwetmala Kashyap Ramaiah Public Policy Center

Dr Aisha Shariff University of Mysore

Prof. V. Narayanan Ramaiah Institute of Management

Dr. H. Muralidharan Ramaiah Institute of Management

Dr. Savitha Rani Ramaiah Institute of Management

Dr. Triveni P Ramaiah Institute of Management

Disclaimer

The views and opinions expressed in the articles and other materials are the personal

opinions of the authors. Those are not necessarily of the publishers.

Page 3: A Research & Academic Journal of Business Management

2

Contents:

Executive’s Cognitive Factors with Reference to New Product Launch Success in Pharmaceutical Industry B.Thirumoorthi

6

Relevance to The Diversity and Inclusion to The Contemporary India Swati Patil Sujaine Mishra

23

Changing employee attitude with Respect to TQM and Profit Sharing on continuous improvement orientation P. Senthilmurugan

30

Can Knowledge Transfer Be Considered Expatriate Success Anita R Singh, Divya. C, Saritha Kolluri, Veera Shireesha Sangu

43

Impact of impact of mergers on consumers and employees with respect to banks in India Archana S Kothavale

59

Page 4: A Research & Academic Journal of Business Management

3

Editorial Board

Human Resources

Dr.H Muralidharan

Dr. V Padmaja

Dr. Bhanumathi P

Finance

Prof. V Narayananan

Prof K N Sreekanthan

Dr. Savithrani Ramachandran

Dr. Triveni P

Marketing

Prof. Purnima Ramaswamy

Dr. Swathi Basu Ghose

Dr. Anuradha T N

Operations

Dr. Asim Kumar Bandyopadyay

Dr. Ranagarajan

Page 5: A Research & Academic Journal of Business Management

4

FOREWORD

It gives us immense pleasure to extend a warm welcome to all our readers to the

current issue of our Bi-annual Journal, the “M. S Ramaiah Management Review”.

It has been our constant endeavor to make the M. S Ramaiah Management Review

a standard refereed journal over time by disseminating quality scholarly research

in the field of business.

The current issue of the Journal contains articles from several key areas of the

management domains and features noteworthy contributions from academia and

industry.

We would like to thank all contributors for their dedication and tireless effort to

help bring this to fruition. We hope that the issue will add to the existing body of

knowledge in the respective areas. We look forward to your suggestions and input

on the issues discussed here and ideas for future issues of the journal.

- Dr. H. Muralidharan

Dean, Ramaiah Institute of Management

Page 6: A Research & Academic Journal of Business Management

5

EDITORIAL

Business schools in India are evolving at a rapid pace. However, if we have to make meaningful

contributions to business education, research and practices, we must produce high quality

management research that cement teaching and learning processes. Research should be

practical and application oriented that facilitates an honest dialogue between academia and

industry.

The M. S Ramaiah Management Review seeks to encourage, welcome research articles, case

studies and papers on current challenges and experiences of academia, the government and

industry in the management domain. The research can be theoretical or empirical but must focus

on actionable outcomes. The current issue of the M. S Ramaiah Management Review covers a

wide range of articles from academia and industry from several key focus areas such as

marketing, finance, operations and human resources.

We take this opportunity to thank our Director, Chief Executive and our Dean for their unending

support and patronage of the journal. We thank all contributors for their dedication, time and

effort in their contributions to the existing body of literature in their respective focus areas. We

look forward to critique, feedback and ideas for further discussion in upcoming issues.

Dr. Rajveer S Rawlin

Dr.Arul Senthil Kumar

Dr. T.Praveen kumar Editors

Page 7: A Research & Academic Journal of Business Management

6

Executive’s Cognitive Factors with Reference to New Product Launch Success in Pharmaceutical

Industry

B.Thirumoorthi*

Abstract

New product launch plays a vital role in the pharmaceutical industry. The study identifies the key

determinants of new product launch success, examines their role and impact on launch

performance and links them to the different stages of product life cycle in the pharmaceutical

new product launch context. In order to determine the factors of new product launch success in

pharmaceutical industry, the factors are as follows Market Orientation, Relationship Orientation,

Product Advantage, Strategic Choices, Tactical Decisions, Sales Force Management, Relationship

Marketing Activities, Customer Acceptance, New Product Launch Success etc. The Sample size

collected for this study are 115 respondents working in Sales, Marketing and Marketing in

different Pharma Companies in India. For the study tools used are Reliability and validity,

Frequency analysis, Descriptive statistics, T-test, ANOVA and Correlation using SPSS. Smart PLS

software also used for drawing the graphical user interface variance-based structural equation

model (SEM) using the partial least squares (PLS) path analysis modelling method for the study.

The research design used for the study is descriptive research Design. The results of the study

show that the Pricing of the Product is a very crucial decision to be Taken by the Company and

Pre-launch activities like Competitor information, KOL identification and discussions and a launch

plan is crucial.

Key words: Product Launch, Pharmaceutical, PLS

*Asst. Professor, Department of Management Studies, Nehru Institute of Technology, Coimbatore, Tamil Nadu

Introduction

You can’t do today’s job with yesterday’s methods and be in business tomorrow”- Gerald Marion. This is

true of Pharma Industry where changes are Happening every day. Newer Drugs, New Combinations aimed

at Convenience and compliance, New dosage Formulations. Companies have to “BE IN THE MARKET

ALWAYS” and adapt themselves to the Changing trends in the Pharma Industry. The Pharma Industry is

an ever-growing industry in India. The Industry has been growing consistently over the years in India. In

Page 8: A Research & Academic Journal of Business Management

7

the earlier years the Industry was dominated by Multi- National Companies like Glaxo, SKF, Abbott, Merck,

Bayer etc. The period from 1980s saw a change with Indian Companies becoming aggressive and started

Growing very fast. The few Indian Companies which became very prominent are Ranbaxy, Cadila, Cipla,

Dr. Reddy’s.Pharma Marketing is Unique and different from other Marketing. The following are the

significant differences

1. In Pharma Marketing is Indirect Marketing as sales happens through Promotion to Doctors,

who are not always end users.

2. In Pharma Marketing the Customer is more Knowledgeable than the Company person, who is

usually arts or science graduate.

3. In Pharma Marketing there may not be any Tangible Product but only the perceived Benefits have to

be experienced.

The First Mover Advantage

The New Product Launch also depends on the Time of launch. The first One Gets always a better

recognition. In 1995 we Launched Nimulid (Nimesulide) In Panacea Biotec which was a smaller Company

that time. Success of Nimulid Changed the Profile of the Company and fuelled Growth of the Brand and

The Company. When Bigger Companies launched also Nimulid remained Market leader and started

growing faster. There are lot of New molecules/Brands which have failed and affected the Image and

Growth of the Company. For Ex Rofecoxib was launched by many Companies but subsequently was

banned due to Side Effects it affected the Companies who had invested a lot of Money and time on this

Product. The Launch of New Products has become a very crucial factor for a Company’s growth and

survival. Today the Companies are looking at this “Don’t find Customers for Your Product, Find Products

for Your Customers” – Seth Godin “The secret of Change is to focus all of your energy, not on fighting the

Old but Building the New” Socrates There has been no Single rule which is there to ensure the launch of

a New Product. Steps to Success of a New Launch is still a Million Dollar question to the Pharma

Companies. This study is an attempt to find out what are the reasons for success or Failures for New

products. The Data has been compiled from Different levels of People from the Industry in Marketing and

sales Departments. The response includes feedback from Top Management, Middle and Front – line sales

Personnel which we feel will give us good inputs in our search to find out the possible “Cognitive factors

responsible for Success of New Launches in Pharma Industry”.

Page 9: A Research & Academic Journal of Business Management

8

Review of Literature

Iran J Pharm Res, Nazila Yousefi , Gholamhossein Mehralian, * Hamid Reza Rasekh, and Mina Yousefi

(2017) states that, “the current market scenario there are several strategies for new product

development. However almost half of the resources are spent on products that may fail. The results of

the study contribute to create base line information for pharma industry for more effective budget

allocation in new product development”.

Dr. S. Raja, Mrs. V.G. GeethaB (2017) states that, “the study helps us to understand the causes of failure

in new product development. This study further gives the solution to avoid failures with specific inputs to

marketing employees to solve the problem”.

Emanuel Gomes, Oscar F. Bustinza , Ferran Vendrell‐Herrero, Tim Baines (2017) states that, “the study

explains the intersection of strategic partnerships, R&D intensity and successful product – as service

innovation. The results reinforce the importance of strategic partnerships to successful product- service

innovation in high R&D industries”.

Marcel Corstjens ,Edouard Demeire &Ira Horowitz (2017) states that, “ the quarterly data of 56 new

ethical drug products launched between 1989-1996 was studied is found that the future success of the

new product is deductible by the third quarter after launch. If the product does not show signs of success

by third quarter its unlikely to be successful. Being the first and best in quality is important for success”.

Robert G. Cooper (2019) states that, “the article identifies the success factors into three categories, ( i )

captures the characteristics of new products such as best practices and nature of the product itself, ( ii )

category captures drivers of success at business innovation strategy and its R&D investments for new

product development , the climate, culture and leadership , (iii) category identifies the system and

methods put in place for new product development”. Asiye Moosivand, Ali Rajabzadeh Ghatari, Hamid

Reza Rasekh (2019) states that, “the study focuses on pharmaceutical supply challenges and the dynamics

of the variables in supply chain. It provides different policies to overcome the challenge. The results can

give a clear view for decision making and highlight the importance of feedbacks in the long term and its

effects on organization decision and goals.”

Page 10: A Research & Academic Journal of Business Management

9

Francesca Bignami,Pauline Mattsson &Jarno Hoekman (2019) states that, “the innovation with the

companies is generated by knowledge from external and geographically dispersed sources. The

importance of geographic proximity depends on the knowledge transferred in R&D”.

Shasha Zhao, Hui Tan, Marina Papanastassiou, Anne-Wil Harzing (2019), “states that the paper shows the

use of licensing behavior to strategies. The in-licensing and out- licensing agreement guide the

development. The study Provide avenues to target the licensing partners”.

Research Gap

A vast amount of research has focused on the general topic of New Product Launch including associated

with launch and novel launch practices. However very limited research has been directed towards

Relationship Management and sales force management. The focus of this study is also to find out their

expectations and satisfaction in both environments.

Need for The Study

Healthcare in India has been growing very fast and the focus is shifting from treatment of diseases to

therapies aimed at well- being of people. To meet this new and diversified demands the industry has to

innovate and bring new products to meet this changing demand. The launch of a new product involves

months of planning, huge expenditure and investment of time and money for few months to few years of

launch. The growth of the companies is dependent on the success of new products to gain better position

in the pharma market and increase their market share. Success of new products will also increase the top

line and bottom line of the company. Therefore, it is essential that we study the cognitive factors in

success of launch of new products. The business in the pharma industry is unique and different from other

FMCG industry. In pharma industry the customer (Doctor) is not the end user of the product. Companies

have to evaluate strategies to communicate to the doctor who to give the time of 30 seconds to 2 minutes

to the representative of the company. Launch of new products also is in different categories: (i) Launch of

new molecules (ii) Launch if extension of current products or new dosage forms. (iii) Launch of new

products from nutraceuticals to bring in natural products with sufficient scientific information. The

success of the strategy will depend on how effectively the company is able to communicate the features

and benefits in the limited time.

Objectives of The Study

To identify the executive cognitive factor with reference to new product launch success.

Page 11: A Research & Academic Journal of Business Management

10

To examine the impact of cognitive factors on launch performance.

Methodology

The research design is the conceptual structure within which research is conducted; it constitutes the

blue- print for the collection, measurement and analysis of data. The research design used in this study is

descriptive research design. The sampling design used in this study is simple random sampling for

collecting the data from respondents. The simple random sampling means is in which every item of the

population equal probability of being chosen. The Sample Size is determined as 115. The primary data was

collected with the help of a questionnaire consisting of 9 factors Market orientation, Relationship

orientation, Product advantage, Strategic choices, Tactical decisions, Sales force management,

Relationship marketing activities, Customer Acceptance, New product launch success. The structured

questionnaire is used to collect the primary data from the employers of the organization. Responses were

recorded along a five-point Likert scale ranging from 1 (strongly agree) to 5 (strongly disagree) for all the

items in the questionnaire. Standard validated instruments taken from Minna Matikainen (2015) for

measuring New product launch success in pharmaceutical industry towards Market orientation,

Relationship orientation, Product advantage, Strategic choices, Tactical decisions, Sales force

management, Relationship marketing activities, Customer Acceptance, New product launch success.

Reliability Test

Table 1.0 Reliability Test

S. No Variables Cronbach (α) Value

1 Market Orientation 0.939

2 Relationship Orientation 0.925

3 Product Advantage 0.937

4 Strategic Choices 0.953

5 Tactical Decisions 0.933

6 Sales Force Management 0.955

7 Relationship-Marketing

Activities

0.937

8 Customer Acceptance 0.911

Page 12: A Research & Academic Journal of Business Management

11

9 New Product Launch

Success

0.947

The reliability of the 9 variables used in the study was carried out using SMART PLS software. The

alpha scores which greater than 0.7 is generally acceptable as sufficient accuracy for a construct

(Nunnally, 1978)

Conceptual Frame Work of the Study

Fig 1.0 conceptual Frame- work of the study.

New product launch

success

Market

orientation

Relationship

orientation

Product advantage

Strategic choices

Tactical

decisions

Sales Force

management Relationship

marketing

activities

Customer

acceptance

Page 13: A Research & Academic Journal of Business Management

12

Hypothesis of The Study

Hypothesis 1: The Relationship between Market orientation and New product launch success.

Hypothesis 2: The Relationship between Relationship Orientation and New Product Launch

Success.

Hypothesis 3: The Relationship between Product Advantage and New Product Launch Success.

Hypothesis 4: The Relationship between strategic choices and New product launch success.

Hypothesis 5: The Relationship between Tactical Decisions and New product launch success.

Hypothesis 6: The Relationship between Sales force management and New product launch

success.

Hypothesis 7: The Relationship between Relationship marketing activities and New product

launch success.

Hypothesis 8: The Relationship between Customer Acceptance and New product launch success.

Analysis and Result

Demographic variable

One hundred and fifteen respondents participated in this study. Out of the one hundred and

fifteen respondents 109(94.8%), belongs to male category and 6 (5.2%) to the female category.

The education level of the participants was as follows: 73 (63.5%) respondents has completed

graduation ,41 (35.7%) respondents has completed post -graduation and 1 (0.9%) respondents

has completed doctorate. The age of the study of the respondents is as follows: 17(14.8%)

belongs to 20-30 years, 36 (31.3%) belongs to 30-40 years, 45(39.1%) belongs to 40-50 years and

17(14.8%) belongs to 50-60 years category. The occupation of the study of the respondents are

Page 14: A Research & Academic Journal of Business Management

13

as follows: 51(44.3%) belongs to Marketing,63(54.8%) belongs to sales and 1(0.9%) belongs to

market research category. The experience of the study of the respondents are as follows:

11(9.6%) belongs to up to 5 years, 13(11.3%) belongs to 5-10 years, 32(27.8%) belongs to 11-15

years and 59(51.3%) belongs to more than 15 years category. From the above figure, Comparing

the male and female respondents working in the Organization. Male respondents has the highest

frequency than the female respondents. Comparing with the under graduation, post -graduation

and Doctorate, respondents with under graduation degree are higher than the post- graduation

and Doctorate respondents. Therefore, age of the respondents 40-50 Years of the age group of

respondents are higher than all the age groups. 20-30 Years & 50-60 Years of respondents has

the lowest frequency compared with all the age groups. Therefore, occupation of the

respondents is higher in sales and the respondents in market research has the lowest frequency

compared with all other occupation. Therefore, the experience of the respondents is higher in

more than 11-15 years as compared to all other groups and the respondents has the lowest

frequency in up to 5 years compared with all other groups. Inference is drawn for the above

figure for gender, degree and age.

Assessment On the Measurement Model

The measurement model consists of relationships among the conceptual variables and the

measures underlying each construct. The data indicates that the measures are robust in terms of

their internal consistency reliability as indexed by the composite reliability. The composite

reliabilities of the different measures ranged from 0.947 to 0.963 which exceed the

recommended threshold value of 0.778.

Table 2.0 Measurement Model

Variables Items Loadings Cronbach

Alpha

AVE CR R2

Page 15: A Research & Academic Journal of Business Management

14

1.Market

Orientation

MO1

MO2

MO3

MO4

MO5

MO6

0.915

0.910

0.904

0.893

0.770

0.873

0.941

0.773

0.953

-

2.Relationship

Orientation

RO1

RO2

RO3

RO4

0.880

0.908

0.946

0.884

0.926

0.819

0.948

-

3.Product

Advantage

PA1

PA2

PA3

PA4

PA5

0.912

0.863

0.897

0.877

0.932

0.939

0.804

0.953

-

4.Strategic

Choices

SC1

SC2

SC3

SC4

SC5

SC6

0.899

0.897

0.898

0.923

0.922

0.861

0.953

0.810

0.962

-

5.Tactical

Decisions

TD1

TD2

TD3

TD4

TD5

TD6

0.865

0.870

0.817

0.922

0.869

0.853

0.933

0.751

0.947

-

SFM1 0.874

Page 16: A Research & Academic Journal of Business Management

15

6.Sales Force

Management

SFM2

SFM3

SFM4

SFM5

SFM6

0.908

0.925

0.854

0.940

0.913

0.954 0.815 0.963 -

7.Relationship

Marketing

Activities

RMA1

RMA2

RMA3

RMA4

RMA5

0.898

0.896

0.907

0.890

0.886

0.938

0.802

0.953

-

8.Customer

Acceptance

CA1

CA2

CA3

CA4

0.900

0.873

0.840

0.907

0.903

0.775

0.932

-

9.New

Product

Launch

Success

NPLS1

NPLS2

NPLS3

NPLS4

0.939

0.919

0.908

0.913

0.940

0.846

0.957

0.778

Cronbach's Alpha reliability test is used to examine the reliability of the measurement

scale. Scales were analyzed in term of their reliability, by means of the internal consistency.

According to Nunnally (1978) Reliability which is less than 0.6 is consider poor, reliability

test value that is in the range of 0.7 is considered acceptable, those more than 0.8 to 0.9

are considered very good and the closer the Cronbach's Alpha is to 1, from the table its

find that all the Cronbach's Alpha values for the variables are greater than 0.7 which is in

the acceptable range. The coefficient of determination (R2 value) is a statistical measure

of how close the data are to the fitted regression line. In other words, R square is the square

of the correlation between the response values and the predicted response value. The R2

value ranges from 0 to 1. The higher the value, closer to 1, indicates higher level of

predictive accuracy. According to the rough rule of thumb suggested by Hair et al. (2013),

R2 values of 0.75 is substantial, 0.50 is moderate and 0.25 is weak. The New Product Launch

Success is positively influenced towards (Market Orientation) with a path coefficient of

0.689. The R- Square value of New Product Launch Success is 0.778 it can be concluded

Page 17: A Research & Academic Journal of Business Management

16

that 77.8% of variation in New Product Launch Success of the sample as explained by New

Product Launch Success towards (Market Orientation). The New Product Launch Success is

positively influenced towards (Relationship Orientation) with a path coefficient of 0.262.

The New Product Launch Success is positively influence towards (Product Advantage) with

a path coefficient of 0.281. The New Product Launch success is positively influence towards

(Strategic choice) with a path coefficient of 0.766. The New Product Launch Success is

positively influenced towards (Tactical Decisions) with a path coefficient of 0.950. The New

product launch success is positively influenced towards (Sales force management) with a

path coefficient of 0.023. The New Product Launch Success is positively influenced towards

(Relationship Marketing activities) with a path coefficient of 0.911. The New Product

Launch Success is positively influenced towards (Customer Acceptance) with a path

coefficient of 0.007.

Page 18: A Research & Academic Journal of Business Management

17

Figure 2.0 R-Square Values

Reflective measurement model’s validity assessment focuses on convergent validity

and discriminant validity. For convergent validity, researchers need to examine the

average variance extracted (AVE). An AVE value of 0.50 and higher indicates a

sufficient degree of convergent validity, meaning that the latent variable explains

more than half of its Indicators variance. Convergent validity measures the degree to

which items on a scale are in theory linked. A common rule-of-thumb is a loading

greater than 0.6. In the outer model, it is necessary to observe the loading column. In

this case, all items loaded on their constructs range from 0.6 to 0.8 indicating

convergent validity. Each element in the principal diagonal are always higher than off-

diagonal elements in their corresponding row and column. The pattern supports the

measurement scales discriminant validity, as the components in the main diagonal are

constantly higher than the off-diagonal components in their equivalent row and

column. The discriminant validity is tested by exploring the average variance shared

between a construct and its measures (AVE). According to Fornell and Larcker the

values which higher than 0.50 is accepted.

Discriminant Validity

Table 3.0Discriminant Validity

Page 19: A Research & Academic Journal of Business Management

18

Factors

CA

MO

NPL

PA

RO

RMA

SFM

SC

TD

CA

0.880

MO 0.796 0.879

NPL 0.842 0.770 0.920

PA 0.795 0.883 0.713 0.897

RO 0.750 0.898 0.763 0.826 0.905

RMA 0.844 0.829 0.770 0.780 0.741 0.896

SFM 0.871 0.874 0.846 0.841 0.832 0.884 0.903

SC 0.771 0.925 0.748 0.847 0.886 0.849 0.863 0.900

TD 0.805 0.914 0.780 0.865 0.897 0.843 0.892 0.932 0.866

Hypothesis Decision Based Upon Path Coefficient and T-Value:

Table 4.0 Hypothesis decision based upon path coefficient and t-value

Table

4.0Hypothesis

Relationship Std beta Std error t-value Decision

H1

Market

Orientation-> New

Product launch

success

0.062

0.147

0.420

Not

supported

H2 Relationship

Orientation-> New

Product launch

success

0.229

0.196

1.171

Not

supported

H3 Product Advantage

-> New Product

launch success

-0.200

0.180

1.114

Not

supported

H4 Strategic Choices->

New Product

launch success

-0.065

0.211

0.310

Not

supported

Page 20: A Research & Academic Journal of Business Management

19

H5 Tactical Decisions->

New Product

launch success

0.016

0.257

0.063

Not

supported

H6 Sales Force

Management->

New Product

launch success

0.426

0.203

2.102

supported

H7 Relationship

Marketing

Activities-> New

Product launch

success

-0.021

0.193

0.108

Not

supported

H8 Customer

Acceptance-> New

Product launch

success

0.016

0.162

2.865

supported

Page 21: A Research & Academic Journal of Business Management

20

Figure 3.0 hypothesis decision based upon path coefficient and t-value:

H1 (Hypothesis 1):

The Relationship between Market Orientation and New Product Launch Success is not supported,

this is evidenced by the value of the (ß=0.062, t-value= 0.420) since the t- value is lesser than 2

the hypothesis (H1) is Rejected.

Page 22: A Research & Academic Journal of Business Management

21

H2 (Hypothesis 2):

The Relationship between Relationship Orientation and New Product Launch Success is not

supported, this is evidenced by the value of the (ß=0.229, t-value= 1.171) since the t- value is

lesser than 2 the hypothesis (H2) is Rejected.

H3(Hypothesis 3):

The Relationship between Product Advantage and New Product Launch Success is not supported,

this is evidenced by the value of the (ß=-0.200, t-value= 1.171) since the t- value is lesser than 2

the hypothesis (H3) is Rejected.

H4(Hypothesis 4):

The Relationship between strategic choices and New product launch success is not supported,

this is evidenced by the value of the (ß=-0.065, t-value= 0.310) since the t- value is lesser than 2

the hypothesis (H4) is Rejected.

H5(Hypothesis 5):

The Relationship between Tactical Decisions and New product launch success is not supported,

this is evidenced by the value of the (ß=0.016, t-value= 0.063) since the t- value is lesser than 2

the hypothesis (H5) is Rejected.

H6(Hypothesis 6):

The Relationship between Sales force management and New product launch success is

supported, this is evidenced by the value of the (ß=0.046, t-value= 2.102) since the t- value is

greater than 2 the hypothesis (H6) is Accepted.

H7(Hypothesis 7):

Page 23: A Research & Academic Journal of Business Management

22

The Relationship between Relationship marketing activities and New product launch success is

not supported, this is evidenced by the value of the (ß=-0.021, t-value= 0.108) since the t- value

is lesser than 2 the hypothesis (H7) is Rejected.

H8(Hypothesis 8):

The Relationship between Customer Acceptance and New product launch success is supported,

this is evidenced by the value of the (ß=0.016, t-value= 2.865) since the t- value is greater than 2

the hypothesis (H8) is Accepted.

Conclusion

From the data analysis few points stand out to be crucial for Success of Launch of New Product:

Pricing: "Pricing is actually pretty simple...Customers will not pay literally a penny more than the true

value of the product." - Ron Johnson Fixing the Right Product for the Price becomes very crucial for

success of a Product. The Company should take into consideration the cost of Therapy for the

Product and Justify the same if they Decide Skimming Pricing. Very high Prices Deter the

Physicians from Supporting as they are apprehensive whether the Patients may Buy or not. So

right price is the major decision. “The aim of marketing is to know and understand the customer

so well the product or service fits him and sells itself.” Peter Drucker. Relationship Marketing:

Acceptance by KOL – Identification and Building relationship with the KOL by the Company is very

important. Acceptance of the Product by Key Opinion Leaders is found to be next important thing.

These KOL have many followers and hence once they Like the Product the Product will be taken

up by many more. So building up KOL and involving them in Prelaunch and follow of these KOL

past Launch is very Important. “Working Hard for something we love is Passion” Simon Sinek.

Create the Passion in them. Co Ordination of Activities of the Sales staff: Once the launch plan is

made its crucial to execute the same perfectly to ensure success. The execution of sales force

Ensure transfer of Communication effectively to the Physicians and active follow up of KOL leads

to success. The success of Launch of a New Product is determined by the Tactical Decisions of the

Company like – Branding, Pricing, launch plan and execution and followed by Availability. The

four Ps continue to remain important – Product, Price, Promotion and Place (availability)

Page 24: A Research & Academic Journal of Business Management

23

Relationship Marketing like Building and maintaining a Team of KOL and involving them in Pre

and Post launch activities is important. Sales force Management - Allocation of Resources,

Training people on the Launch strategy and communication have to be ensured. Sales- people

have to made accountable for success and should be Incentivized for good Performance.

References

S. Raja, Mrs. V.G. Geetha B (2017): A Study on Causes of Failures in New Product

Development in Pharmaceutical Business Management. SSRG International Journal of

Economics and Management Studies (SSRG -IJEMS) – 4(3).

Marcel Corstjens ,Edouard Demeire &Ira Horowitz (2017): New-product success in the

pharmaceutical industry: how many bites at the cherry? :319-331.

Robert G. Cooper (2019): The drivers of success in new-product development. Industrial

Marketing Management, Volume 76.

Shasha Zhao, Hui Tan, Marina Papanastassiou, Anne-Wil Harzing (2019): The

internationalization of innovation towards the South: A historical case study of a global

pharmaceutical corporation in China (1993–2017).

Francesca Bignami,Pauline Mattsson &Jarno Hoekman (2019): The importance of

geographical distance to different types of R&D collaboration in the pharmaceutical

industry.

Emanuel Gomes, Oscar F. Bustinza , Ferran Vendrell‐Herrero, Tim Baines (2017): Product–

service innovation and performance: the role of collaborative partnerships and R&D

intensity.

Asiye Moosivand , Ali Rajabzadeh Ghatari, Hamid Reza Rasekh (2019) : Supply Chain

Challenges in Pharmaceutical Manufacturing Companies: Using Qualitative System

Dynamics Methodology. Department of Pharmacoeconomics and Pharmaceutical

Management School of Pharmacy, Shahid Beheshti University, of Medical Sciences,

Page 25: A Research & Academic Journal of Business Management

24

Tehran, Iran. School of Management and Economics, Tarbiat Modares University, Tehran,

Iran.

Relevance to The Diversity and Inclusion to The Contemporary India

Swati Patil* Sujaine Mishra *

Abstract

In recent years Diversity and Inclusion is been in practice as a business imperative in

organizations. It adds value in creating a growth strategy of organizations. Diversity and inclusive

companies drive a culture of innovative projects. Still many organizations often failing to adopt

diverse talent along with inclusivity issues in the workplace. For organizations who are

implementing the diversity and inclusion programs and policies, practices, the change can be

difficult and beneficial. Thus having diversity along with inclusivity in organization helps in its

competitive growth as well development of employees’ workplace environment as well as

organizational growth.

Keywords: Diversity & Inclusion, leadership, Competitive Advantage, Growth, business strategy.

*Student ,Centre for Management Studies Presidency College, Bangalore

Introduction

Diversity and Inclusion are business imperative which benefits organization to driven success and

growth. It helps to improve organization performance along with financial growth and create an

open cultural environment for employees who imply on empowerment of these employees in

organization helps them to have a competitive advantage and work effectively. Diversity and

Inclusion is always been considered as an bottom-up organizational culture which creates an

value for every organization.so that it is main for organization to prioritize the definition of

diversity and inclusion which is a having motto of business strategry.it includes attracting and

retaining of talents in organization which strengthens a healthy environment as well a right

person for right decision-making and possess capabilities of handling resources and work

Page 26: A Research & Academic Journal of Business Management

25

effectively it is all about people analytics, which mainly concentrates on growth strategy for

organization.

Recent studies on organizations shows limited practice of inclusion that’s it many organizations

have diversity culture but missing out adding an inclusivity practices and approaches for it.

Literature review

Michele EA Jayne, Robert L Dipboye (2004) This paper research findings show the diverse

workforce improves the business performance in organization and helps in development. This

article reviews shows the empirical research and relationship between workplace and

performance of organization.

Nisha Nair, Neharika Vohra (2015) Diversity and inclusion at the workplace this paper reviews

about the diversity and inclusion practice in workplace and interlinking the leadership with

diversity and inclusion practices, having the diverse culture in organization helps in improving the

firm’s performance.it also adds tangible and intangible values.

Robert T Crouch (2015) A study of perception of diversity and inclusion initiatives in producing

improved productive work cultures This paper gives the research reviews relation the diversity

with inclusion practices which enhances the work culture and allows employees to improve their

one-self as well benefiting organization.

Brigitte Rohwerder (2017) Impact of diversity and inclusion within organizations This article gives

the findings of diversity along with inclusive culture benefits the organization to grow and

develop.it allows organization to work effectively.it helps in improving the performance of result

outcomes.

Objectives

1. To understand the concept of diversity and inclusion.

2. To analyze the strategies of diversity and inclusion in an organization.

Page 27: A Research & Academic Journal of Business Management

26

3. To assess the implication of diversity and inclusion in an organization.

Methodology, Scope and importance

It is a conceptual research study in which research data are secondary data sources.

This review of article mainly focuses on understanding diversity and inclusion, and

interpretations related to them.

Definition of diversity and inclusion.

Diversity along inclusion practices.

Challenges in diversity + Inclusion practices.

Leadership roles in creating a value of diversity and inclusion in organization.

Definition of diversity and inclusion

Diversity includes different populations in an organization within a community includes race,

age, gender, language, culture, nationality, status, ability, religion ,ethnicity, locality, knowledge

, skills etc. It represents set of wide variety of population. Inclusion is value creation process

includes the empowering employees by allowing them to feel full as a team giving whole

consideration in all aspects, they contributions are being valued. It is good public relation

component which benefits company from its bottom line growth.

How Diversity and Inclusion Are Related

Diversity and inclusion are inter-related, for example when employees /staff and managers make

decisions based on fairness it should be unbiased. If staff/employees do not speak English, is

there any language barrier to communicate, It is needed to find a way of communicating with

those employees so that they are up-to-date with decisions, policy changes, be adaptable. It is

been in practice when employees who feel valued are likely to work effectively and creates

competitive advantage in organization. Inclusive and diversity environments are places where

individuals of all different aspects are made to feel fairly treated, which is unbiased valued for

Page 28: A Research & Academic Journal of Business Management

27

who they are and accept as they are and are also made part of core decision making by

considering their views When inclusion practice is been implemented the employees takes

initiative in better working result because they feel they are invested in the company and their

work is been recognized their views are considered thus they show more interest towards adding

value for work and create that organizational culture.

Why do we need?

Diversity and inclusion is key aspect of entrepreneurism. It creates ownerships, equality and

removes gender discrimination in an organization. Since diverse force is there in workforce which

drives economic growth. And it can also capture greater share of consumer market. Recruiting

from diverse pool of candidates means a more qualified workforces present. A diverse and

inclusion helps businesses avoid employee turnover costs. It also fosters more creativity and

adaptability in organization. As changing nation is competitive in nature and to exist in economic

market is very much important and helps in making up of organization full potential. A research

findings from McKinsey in 2018, includes the study of diversity and inclusion practices, greater

diversity practices in the workforce results in greater profitability and organizational

development by value creation and financial growth. As McKinsey found a inter-relationship

between diverse leadership and better financial performance which helps organization to grow

and expand.

Dangers of Ignoring Inclusion in organization

Usually organizations mission is to be including treating employees as asset for organization.

When Employees who don’t feel considered easily tend to become demotivated from working

and eventually reach depressed and withdrawn, they start having feel ignored or rejected. This

may affect the quality of their work, which costs the company to reach out loss consequences.

Their morale values get limited and allow road for lack of communication which directly have

adversely effect on the team and organization which lowers its productivity. They may also leave

their jobs because of these reasons, the company will incur the cost of loss, again to hire and

Page 29: A Research & Academic Journal of Business Management

28

train replacements, and it tends for lowering the productivity. Thus it is very much important for

an organization to manage the best by the practice of diversity along with inclusion.

Strategies

Major companies have made efforts to be more diverse and inclusion to varying degrees of

effectiveness. List of strategies are:

Measure the right things in order to know that it’s working: once companies understand

that change is happening and it is resulting into positivity and adopt this principle.

It is not enough to have only diversity: other than diversity, it is very important to have

inclusion as well. To get effective and efficient result from the organization, that kind of

environment should be there.

Avoid mandatory training, but get the right people in the room: you can’t force everyone

in the company to be an ally. To do transformations gradually build foundation of change.

Principles

Cultivating principles are:

Define a focus: while diversity can cover lot of areas like gender equity, including

leadership level and the balance of life-long employees and more open recognition

(lesbian, gay and lgbt community).

Embed an inclusive mindset: while defining goals for workforce diversity, there should be

real driver to adapt and look for changes.

Remember fundamentals: while working together, employees should also understand

the priorities and concerns for positive moves.

Align with business strategy: there should be flextime and flex place of movement to

attain companies’ objectives. To further enhance work-life balance will ensure working

efficiency.

Page 30: A Research & Academic Journal of Business Management

29

Role of leadership quality in Diversity and Inclusion practices

Leadership plays a major role in creating and supporting inclusion and diversity culture in the

workplace inside organization. The inclusive leadership and inclusive practices are inter-related

leadership includes main quality of empowerment of oneself along with others .the main

Characteristics of the inclusive empowered leader is identified as one who takes initiative in

diversity culture involving and creating values for other employees in contributions,

collaborative leadership style, the leader has the ability to manage conflict, negotiations, decision

making, possesses cultural competency, competitive advantage and creates a sense of collective

identity inside the organization it also motivates the other employees to work for betterment of

one-self also for organizations. This leadership quality allows employee to have insight of

innovation and team spirit by inclusion culture.

Leaders who are involved in inclusive cultures need to value the diversity of talents, knowledge,

skills experiences, and identities that employees possess; they are needed to be treated on a

same balanced ground with their uniqueness and belongingness which adds up value for inclusive

culture. Thus it is required to treat employees unique and recognized for their differences as a

diversity culture, organizations that follow this diversity along with inclusive culture stand the

best chance of benefiting from workforce diversity with greater business productivity.

Advantages of having D+I in organization:

This culture perspective helps to inspire and also to drive innovation and generate new

ideas in working environment.

It allows to have bottom line market knowledge and have insights creates competitive

advantage and allows to have a business strategy for profitable aspect.

It creates a room to have great cultural insights as well sensitivity and market structure

analysis which includes higher quality and better targeted market to work on.

This D+I culture in organization allows adaptability range of products and serviced.

It creates an environment of culture which works more effectively for greater productivity

and performs better for best result outcomes.

Page 31: A Research & Academic Journal of Business Management

30

It also provides great opportunity for personal as well as professional growth of

employees.

Thus implementing D+I culture in organizations is considered to be a business strategy in

this contemporary India.

Conclusion

Organizations should follow the practice of Diversity and Inclusion which gives an inter-related

relationship that helps in development and growth of company as a business strategy. so it is

important that not only diversity to be concerned along with that inclusivity is to be considered

for greater productivity and financial growth of organization. It manifest in individual as well team

in creating a competitive advantage, collective behavior and achieve best result outcomes.

References

Brigitte Rohwerder, “Impact of diversity and inclusion within organizations”, - 50/50 by

2030 Foundation, 2017

J. Prime and E. R. Salib, "Inclusive leadership: The view from six countries," Catalyst, New

York, 2014.

MEA Jayne, RL Dipboye - … in Cooperation with the School of …, 2004 - Wiley Online

Library

P. A. Kreitz, "Best practices for managing organizational diversity," The Journal of

Academic Librarianship, vol. 34, no. 2, pp. 101-120, 2008.

P. Daya, "Diversity and inclusion in an emerging market context," Equality, Diversity &

Inclusion, vol. 33, no. 3, pp. 293-308, 2014.

Q. M. Roberson, "Disentangling the meanings of diversity and inclusion in organizations,"

Group & Organization Management, vol. 31, pp. 212-236, 2006.

R. Hays-Thomas and M. Bendick, "Professionalizing diversity and inclusion practice:

Should voluntary standards be the chicken or the egg?" Industrial & Organizational

Psychology, vol. 6, no. 3, pp. 193-205, 2013.

Page 32: A Research & Academic Journal of Business Management

31

https://www.aperianglobal.com/leaders-diversity-inclusion-5-lessons-top-global-

companies/

Changing employee attitude with Respect to TQM and Profit Sharing on continuous

improvement orientation

P. Senthilmurugan*

Abstract

Total Quality Management (TQM) has remained on the fringes of mainstream academic research

while the practitioners oriented literature on TQM has mushroomed, within an explosive number

of articles promulgating the ‘how to succeed’ recipe. The aim of this paper is to examine the

effects of change on employee’s orientation to continuous improvement. The study empirically

tests the assumptions underpinning the TQM framework that training and education will lead to

effective change at the individual level in relation to the goals of TQM.

Key Words: TQM, Employee attitude, Profit sharing, Continuous improvement

*Assist. Professor, School of Business Studies and Social Sciences, Christ Deemed to be University,

Bengaluru

Introduction

The antidote in the form of rigorous scientific studies is beginning to take effect, with recent

contributions investigating a variety of theoretical and empirical issues surrounding TQM. These

contributions have been partly overshadowed by a perception that TQM has a faddish character.

Page 33: A Research & Academic Journal of Business Management

32

However, cardy and stewart (1998) argue that particular quality programs may come and go as

fashions changes, yet the underlying principles may endure for years to come. Despite the

emergence of more rigorous studies, empirical research examining and evaluating changes in a

TQM context remains quite exclusive. The empirical research that does exist offers mixed support

for the efficacy of TQM. With some studies suggesting that TQM can affect organizational

performance and others failing to demonstrate any effect. The mixed support for TQM may be

the result of insufficient attention to attitudinal change. Several researchers have highlighted the

importance of attitudinal changes to the success of interventions such as TQM assert that the

inability to changes the organizational culture may account for the success or failure of initiatives

like TQM. More generally, Devos, Vanderheyen and Van den broeck note that the failure of

changes frequently is a consequence of the lack of motivation and commitment of employees

who are required to implement the change. Within the TQM arena, the dominant approach to

achieving. Organizational change is through the mechanism of training and education and at the

same time, the importance of top management and first line supervisor support for the changes

is recognized. As Kaplan, Birmingham and Ferris argue, TQM’s emphasis on logic and rationality

implies that organizational members who are not pro quality at first merely need to be educated.

The prevalence of training as a key lever for changes is borne out in the practice of TQM. The role

of reward systems, as an additional means of achieving change is dismissed by the TQM

authorities, who rely on the well documented problems of linking pay to performance stance.

Review of Literature

Samson kauame (2017) has taken initiative to investigate the effect of total quality management

factors on firm's operational performance. They used regression linear analysis to conduct this

research study. The samples used to conduct this analysis were selected form World Bank's

Business Environment and Enterprise Performance Survey data. A total of 437 samples were

selected from this business environment. This study has shown that few selected TQM factors

were related to performance. The results revealed that the primary obstacles were based on

some hypothetical assessment in the survey questionnaire. However, it is recommended that

firms should continue implementing TQM with all variables to improve performance.

Page 34: A Research & Academic Journal of Business Management

33

Muhammad Shafiq, Flevy Lasrado & Khalid Hafeez (2017), this study contributes in the important

debate in the operations management literature related to convergence versus divergence

argument in TQM implementation. Therefore, this study provides empirical evidence from a

developing country. Data were collected from the member companies of All Textile Mills

Association by using a questionnaire. The questionnaires were sent to 210 textile companies and

the respondents were quality or production managers. Structural equation modeling was used

to investigate the effect of TQM practices on organizational performance. The findings of this

study indicate that TQM has a highly positive effect on organizational performance. These

findings support the divergence argument, which indicates that the positive effect of TQM on

organizational performance is not limited only to companies.

Lee J, Park S and Baker R (2017), it focus on the relationships among human resource

development (HRD) efforts, top management support, and employees’ attitudes in the context.

Based on the Human Capital Corporate Panel survey data, 3,899 responses from 159 large

companies were analyzed by adopting hierarchical multiple regression analysis and a regression-

based path analysis. The results indicated that HRD efforts positively affected organizational

commitment through job satisfaction. In addition, job satisfaction had a moderated mediation

effect on the interaction of HRD efforts and top management support on organization

commitment. Finally, top management support moderates the relationship between HRD efforts

and employees’ attitudes such that increased top management support for HRD efforts improves

employees’ job satisfaction and organizational commitment.

Noor Juliana, Mohammed Yusof, (2017), has conducted a research to ascertain the quality

approached deployed in garment manufacturing industry in three key areas namely quality

systems and tools, quality control and types of control as well as sampling procedures chosen for

garment inspection.The results revealed that almost all companies have established their own

mechanism of process control by conducting a series of quality inspections for daily production.

In addition, quality inspection has been the predominant quality control activity in the garment

manufacturing, while the level of complexity of these activities was substantially dictated by the

customers. Moreover, AQL-based sampling was utilized by companies dealing with exports,

Page 35: A Research & Academic Journal of Business Management

34

whilst almost all the companies that only concentrated on the domestic market were

comfortable using their own sampling procedures for garment inspection. Hence, this research

has provided insights into the implementation of a number of quality approaches that were

perceived as important and useful in the garment manufacturing sector, which is truly labor-

intensive.

Beloor V, Nanjundeswaraswamy T, Swamy D,(2017), in this study they identified that employee

commitment has three components they are Affective, Normative, Continuance commitment

and QWL is a multidimensional construct it includes job satisfaction, adequate pay, work

environment, organizational culture etc, these factors affects on the employee performance,

productivity, absenteeism, retention rate etc. These QWL components may affect on the

commitment of employees towards the organization, it may also enhance retention rate.

Meshbahuddin Chowdry, Himangshu Paul, Anupam Das, (2018), in this study the researcher

identified the list of critical factors namely top management commitment, supplier quality

management, continuous improvement, product innovation, benchmarking, employee

involvement, reward and recognition, education and training, customer focus and product

quality. To measure each factor a number of indicators are also identified. The reliability and

validity of all the factors were tested and validated using data from 45 garment manufacturing

companies. Various statistical methods were employed for this test and validation. To identify

the impact of top management commitment on the nine TQM factors a paired sample test

between high-top and low-top management firms were conducted. Besides that step wise

regression analysis was done to find the significant predictors of product quality construct for

high-top and low-top management firms. From the analysis the findings emerges firstly, firms

with high top management commitment implement the other nine TQM factors more rigorously

than those with low top management commitment firms. Secondly, in high-top management

firm two TQM factors namely employee involvement and product innovation are the primary

predictors of the product quality. Finally, in firms with low-top management firm two of the eight

TQM factors namely customer focus, and employee involvement are the primary predictors of

the product quality.

Page 36: A Research & Academic Journal of Business Management

35

Objectives of the Study

To study the employee’s perceived fairness of profit sharing and perceived ability to contribute

the profitability of the organization were associated with continuous improvement orientation

Scope of the Study

The study aimed an individual to develop a collectivist orientation and to engage in behavior for

the benefit of group and continuous improvement orientation emphasizing a proactive approach

to preventing problems and a search for better ways of doing things. The extent to which

continuous improvement has been realized in an organization would be evident in the perceived

in activities responsibility for quality and participation in activities aimed at improving quality at

the individual level of analysis. The focus of rewards determines the climate for the sustainability

of change. Profit sharing can contribute to the achievement of TQM goals through its

reinforcement effect or by enhancing the perceived fairness of the outcomes has instant appeal.

Methodology

The research design used in this study is descriptive research design. The sample design used in

this study is simple random sampling for collecting the data from the respondents. The sample

size of the study is determined by the G power analysis Gpower 3. The sample size is determined

based on the specific power, alpha level and effect size (medium=0.5) in the G power analysis.

The sample size is determined as 110. The primary data was collected with the help of a

questionnaire consisting of 8 attributes (attitude towards continuous improvement, top

management support, supervisory reinforcement, organizational commitment, participation in

TQM intervention, perceived benefits of TQM intervention, fairness of profit sharing plan,

perceived ability to contribute.) The measurement scale for changing employees attitude: the

independent effect of TQM and profit sharing shahid mohammed , faisol quader, aftab ahmed

(2014) and for attributes, organizational commitment Bellor V, nanjundeshwaraswamy T, Swamy

D (2017), top management support Lee J, Park S and Baker R (2017), TQM interventions Samson

Kauame (2017), participation in TQM interventions Daniel I, Prajogo, Cooper (2017) scales were

used in this study.

Page 37: A Research & Academic Journal of Business Management

36

Hypothesis

HO (1): There is no significant mean difference between the educational qualification of the

respondents and 1. Continuous improvement orientation 2. Top management support 3.

Supervisory reinforcement 4. Organizational commitment 5. Participation in TQM interventions

6. Perceived benefits of TQM interventions 7. Fairness of profit sharing plan 8. Perceived ability

to contribute.

HO (2): There is no significant difference between the Gender of the respondent and 1.

Continuous improvement orientation 2. Top management support 3. Supervisory reinforcement

4. Organizational commitment 5. Participation in TQM interventions 6. Perceived benefits of

TQM interventions 7. Fairness of profit sharing plan 8. Perceived ability to contribute

HO (3): There is homogeneity across the different level of 1) Continuous improvement

orientation 2) Top management support 3) Supervisory reinforcement 4) Organizational

commitment 5) Participation in TQM intervention 6) Perceived benefits of TQM intervention 7)

Fairness of profit sharing plan 8) Perceived ability to contribute.

Analysis and Results

Demographic Variable

Hundred and ten respondents participated in this study. Out of 110, 32.7% belonged to male

category and 67.3% to the female category. The educational level of the participants are as

follows: 32.7% were below UG, 47.3% were under graduates and 20.0% were post graduates.

The age of the participants is as follows: 70.9% belongs to 21-30 years, 23.6% belongs to 31-40

years, 4.5% belongs to 41-50 years and 0.9% belongs above 50 years’ category.

Comparison of Mean – T- Test

Perspective of the study construct was assessed by male and female respondents and also the

educational qualification among the respondents, to study whether both this groups had similar

Page 38: A Research & Academic Journal of Business Management

37

perceptions the T- test was carried out to test the difference in the subscale of attitude towards

TQM intervention and profit sharing.

HO (1): There is no significant mean difference between the educational qualification of the

respondents and

1. Continuous improvement orientation 2.Top management support 3.Supervisory

reinforcement 4.Organizational commitment 5.Participation in TQM interventions 6.Perceived

benefits of TQM interventions 7.Fairness of profit sharing plan 8.Perceived ability to contribute.

Table 1.0 : T- test comparison of significant mean difference between the Educational

qualification and study constructs

S.NO Constructs F Sig t df Sig(2-

tailed)

Inference

1 Continuous improvement

orientation.

2.015 .159 2.249 102 .027 Ho Rejected

2.536 54.203 .014

2 Top management

Support.

.045 .832 .780 102 .437 Ho Accepted

.800 44.754 .428

3 Supervisory reinforcement. 1.936 .167 -.431 102 .668 Ho Accepted

-.519 63.290 .605

4 Organizational commitment. .515 .475 -2.218 102 .029 Ho Rejected

-2.370 48.462 .022

5 Participation

TQM interventions.

.135 .714 .620 102 .537 Ho Accepted

.588 39.419 .560

6 Perceived benefits of

TQM interventions.

.852 .358 -2.240 102 .027 Ho Rejected

-2.408 49.036 .020

7 Fairness of profit sharing

plan.

.182 .670 -.494 102 .623 Ho Accepted

-.489 42.149 .628

8 .002 .966 1.331 102 .186 Ho Accepted

Page 39: A Research & Academic Journal of Business Management

38

Perceived ability to

contribute.

1.321 42.361 .193

INFERENCE

The significance values (2- tailed value / P value) of the study constructs changing employees

attitude the independent effects of TQM and profit sharing, Top management support,

supervisory reinforcement, participation in TQM interventions, fairness of profit sharing,

perceived ability to contribute, over all educational qualification and over all job satisfaction

seems to be greater than .05 as seen in the table 1.0. This proves the HO null hypothesis and

reject the alternate hypothesis stating that there is no significant difference between the

educational qualification and study constructs, top management support, supervisory

reinforcement, participation in TQM interventions, fairness of profit sharing and perceived ability

to contribute .The significant value for the attributes continuous improvement orientation,

organizational commitment and perceived benefits of TQM interventions, over all educational

qualification and job satisfaction seems to be less than .05 as seen in table 2.3, this proves H1

alternate hypothesis and reject the null hypothesis HO stating that there is a significant difference

between the educational qualification and study constructs, continuous improvement

orientation, organizational commitment and perceived benefits of TQM.

HO(2) : There is no significant difference between the Gender of the respondent and

1. Continuous improvement orientation 2. Top management support 3.Supervisory

reinforcement 4.Organizational commitment 5.Participation in TQM interventions 6.Perceived

benefits of TQM interventions 7.Fairness of profit sharing plan 8.Perceived ability to contribute.

Page 40: A Research & Academic Journal of Business Management

39

Table 2.0 : T test comparison of significant mean difference between the gender and the

study constructs

S.NO Constructs F Sig T df Sig(2-

tailed)

Inference

1 Continuous

improvement

orientation.

.866 .354 -.862 108 .390 HO ACCEPTED

-.8870 74.903 .378

2

Top management

Support.

4.915 .029 .241 108 .810 HO ACCEPTED

.268 91.872 .789

3 Supervisory

reinforcement.

1.811 .181 1.910 108 .059 HO ACCEPTED

2.141 93.227 .035

4 Organizational

commitment.

.001 .980 1.109 108 .270 HO ACCEPTED

1.099 67.802 .276

5 Participation

TQM interventions.

.253 .616

-.563 108

.575

HO ACCEPTED

-.549 65.236 .585

6 Perceived benefits of

TQM interventions.

4.781 .031 2.396 108 .018 HO REJECTED

2.650 90.223 .010

7 Fairness of profit sharing

plan.

1.013 .316 .682 108 .497 HO ACCEPTED

.693 72.242 .491

8

Perceived ability to

contribute.

2.934 .090 -.923 108 .358 HO ACCEPTED

-.857 57.849 .395

Page 41: A Research & Academic Journal of Business Management

40

INFERENCE

The significance values (2- tailed value / P value) of the study constructs changing employees

attitude the independent effects of TQM and profit sharing, continuous improvement

orientation, Top management support, supervisory reinforcement, organizational commitment,

participation in TQM interventions, fairness of profit sharing, perceived ability to contribute, over

Gender and over all job satisfaction seems to be greater than .05 as seen in the table 2.3. This

proves the HO null hypothesis and reject the alternate hypothesis stating that there is no

significant difference between the Gender and study constructs, continuous improvement

orientation, top management support, supervisory reinforcement, organizational commitment,

participation in TQM intervention, fairness of profit sharing and perceived ability to contribute.

The significant value for the attributes perceived benefits of TQM interventions, over Gender and

job satisfaction seems to be less than .05 as seen in table 2.0, this proves H1 alternate hypothesis

and reject the null hypothesis HO stating that there is a significant difference between Gender

and study constructs, perceived benefits of TQM.

TESTING OF HOMOGENEITY – ANOVA

Total quality and profit sharing focus pertaining to department, gender, age and educational

qualification were solicited during data collection. To test if the demographic variable had an

impact on quality improvement (continuous improvement orientation, top management

support, supervisory reinforcement, organizational commitment, participation in TQM

intervention, perceived benefit of TQM intervention, fairness of profit sharing plan, perceived

ability to contribute) overall employee identity in one-way analysis variance was carried out. The

consolidated hypothesis formulated for the same is given below.

HO(3): There is homogeneity across the different level of 1) Continuous improvement orientation

2) Top management support 3) Supervisory reinforcement 4) Organizational commitment 5)

Participation in TQM intervention 6) Perceived benefits of TQM intervention 7) Fairness of profit

sharing plan 8) Perceived ability to contribute.

Page 42: A Research & Academic Journal of Business Management

41

Table 3.0: Testing for Homogeneity

S.No Constructs F Sig

1 continuous improvement orientation

2.192 .055

HO ACCEPTED

2 Top management support

1.430 .244

HO ACCEPTED

3 Supervisory reinforcement

2.514 .086

HO ACCEPTED

4 Organizational commitment

.278 .758

HO ACCEPTED

5 Participation in TQM intervention

.933 .397

HO ACCEPTED

6 Perceived benefits of TQM intervention

2.827 .064

HO ACCEPTED

7 Fairness of profit sharing plan

.396 .674

HO ACCEPTED

8 Perceived ability to contribute

2.660 .075

HO ACCEPTED

Inference

Testing of Homogeneity across Different level of age group with respect to construct the

respondents of this study belongs to four categories with respect to age group of 21-30 years,

31-40 years, 41-50 years and above 51 years. The hypothesis formulated is given below. HO:

There is homogeneity across the different level of 1) Continuous improvement orientation 2) Top

management support 3) Supervisory reinforcement 4) Organizational commitment 5)

Participation in TQM intervention 6) Perceived benefits of TQM intervention 7) Fairness of profit

sharing plan 8) Perceived ability to contribute. The ANOVA result of study constructs across four

levels of age group is presented in table 3.0. The continuous improvement orientation (F=2.982,

P= 0.055), Top management support (F= 1.430, P=0.244), Supervisory reinforcement (F= 2.514,

Page 43: A Research & Academic Journal of Business Management

42

P= 0.086), Organizational commitment (F= 0.278, P= 0.58), Participation in TQM interventions

(F= 0.933, P=0.397), Perceived benefits of TQM interventions (F= 2.827, P= 0.064), Fairness of

profit sharing plan(F= 0.396, P= 0.674), Perceived ability to contribute (F= 2.660, P= 0.075) were

found to be insignificant as p values are greater than 0.05 so their null hypothesis is accepted and

conclude that there is no homogeneity across different levels of age groups with respect to

Continuous improvement orientation, Top management support, Supervisory reinforcement,

Organizational commitment, Participation in TQM intervention, Perceived benefits of TQM

intervention, Fairness of profit sharing plan, Perceived ability to contribute.

Conclusion

In this ever-changing and competitive society, it is important for companies to provide a happy

working environment for their employees, as happy employees can help to improve productivity

which make the company to survive in the market. It is essential that before developing good

Quality practices, company should make sure their employees are having positive attitudes

toward quality. Overall, the results of this study provide evidence to suggest that quality activity

at work, directly and indirectly affects employee identity. Specifically, quality activity at work was

positively and directly related to organizational productivity and employee performance.

References

D. Samson and M. Terziovski, “Relationship between total quality management practices

and operational performance,” Journal of Operations Management, vol. 17, no. 4, pp.

393–409, 1999.

Shafiq, M., Lasrado, F., & Hafeez, K. (2019). The effect of TQM on organisational

performance: empirical evidence from the textile sector of a developing country using

SEM. Total Quality Management & Business Excellence, 30(1-2), 31-52.

Park, M., Kim, J. J. Y., Kwon, K. M., & Yu, G. J. (2017). Process control and economic cost

design for total quality management. Total Quality Management & Business Excellence,

28(7-8), 858-878.

Page 44: A Research & Academic Journal of Business Management

43

Beloor, V., Nanjundeswaraswamy, T. S., & Swamy, D. R. (2017). Employee commitment

and quality of work life–a literature review. The International Journal of Indian

Psychology, 4(2), 175-188.

Chowdhury, M., Paul, H., & Das, A. (2007). The impact of top management commitment

on total quality management practice: an exploratory study in the Thai garment industry.

Global Journal of Flexible Systems Management, 8(1-2), 17-29.

Page 45: A Research & Academic Journal of Business Management

44

Can Knowledge Transfer Be Considered Expatriate Success

Anita R Singh**, Divya. C*, Saritha Kolluri*, Veera Shireesha Sangu*

Abstract This paper endeavours to study expatriate success through one of the primary roles of expatriate,

that it, knowledge transfer. This present research was designed to analyze expatriate capability,

that is, their ability and willingness to transfer both technical and managerial knowledge to the

subsidiary. This study identifies the tools for transfer knowledge and finally, examines the

relationship between expatriate motivation and their use of knowledge transfer tools. The

findings indicate that managerial and functional skills are important for effective expatriate

knowledge transfer in the subsidiaries. The results also show that there is a significant

relationship between expatriate motivation and using face-to-face interactions for transferring

knowledge. These findings have implication for corporate managers designing strategic policies

and practices facilitating expatriate knowledge transfer in the subsidiaries.

Key Words: Knowledge transfer, expatriates, abilities, motivation, tools of knowledge transfer

** Faculty ,M S Ramaiah Institute Of Management, Bangalore *Student ,M S Ramaiah Institute Of Management, Bangalore

Page 46: A Research & Academic Journal of Business Management

45

Introduction

An important competitive advantage of Multi-National Companies (MNCs) lies in their ability to

create and transfer knowledge from headquarters to subsidiaries and vice versa. MNCs often use

expatriates to transfer knowledge from headquarters to subsidiaries and such knowledge is

believed to be vital to subsidiary performance. This knowledge transfer to a subsidiary however,

depends on expatriate ability, motivation, and opportunity to perform the transfer. Moreover,

internal knowledge often being tacit is transferred through extensive interactions between

expatriates and local employees in the subsidiaries. The challenge then, for MNCs is to accurately

understand the cost versus benefit of using expatriates so as to effectively recruit expatriates

who can use their capabilities to transfer knowledge while on international assignments so as to

gain a competitive advantage and thus achieve higher subsidiary performance. Despite this,

many MNC’s still fail to achieve their targeted profitability level and growth levels. This could be

attributed to incapability of these expatriates in terms of failure to adapt to the environment,

incompetence on how best to transfer the needed managerial and technical knowledge from the

parent company to the subsidiary hence inability for the organization to effectively compete and

thus continued poor financial performance. International staffing scholars have identified

important expatriate roles, such as control, coordination and knowledge transfer (Harzing,

2001b), and beyond technical knowledge and skills, socialize the subsidiary to the corporate

culture in the subsidiary (Harzing, 1999; Selmer and de Leon, 2002). Moreover, knowledge

transfer from the parent (besides shared vision, local responsiveness, and local adaptation) has

been identified as one of the important intermediate mechanism through which expatriate

staffing indirectly impacts a subsidiaries host market performance (Colakoglu & Jiang, 2013).

Leach (1994) emphasized that for expatriates to function effectively as transferor; they must

transfer appropriate up-to-date knowledge and skills in their current posts and prepare local

employees to take over their duties when they leave. The latter requires making certain that local

managers can consistently and effectively apply existing practical knowledge and skills to

improving planning and organization within the institution, which means that local employees

must have some managerial knowledge and skills to begin with. She found that when local

Page 47: A Research & Academic Journal of Business Management

46

employees had poor organizational and managerial skills, expatriates spent most of their time on

administrative duties and directing the work of local managers, rather than transferring

knowledge and skills to them. This paper endeavours to study expatriate success through one of

the primary roles of expatriate, that it, knowledge transfer. This present research was designed

to analyze expatriate capability to transfer knowledge to subsidiary. This study identifies the

tools for transfer knowledge and finally, examines the relationship between expatriate

motivation and knowledge transfer tools. The findings indicate that managerial and functional

skills are important for effective expatriate knowledge transfer in the subsidiaries. The results

show that there is also a significant relationship between expatriate motivation and using face-

to-face interactions for transferring knowledge. These findings have implication for corporate

managers designing strategic policies and practices facilitating expatriate knowledge transfer in

the subsidiaries.

Literature Review

It is a common to find foreign companies in the developing countries managed or headed by

expatriate managers from the home country whose management style is in accordance with their

home country’s culture. These expatriates are sent to a foreign country by MNCs with the intent

to control their operations and to provide technical and administrative services (Jun, et al., 2001).

Existing literature recognizes many advantages of staffing these subsidiaries with expatriates

over host country nationals. Compared to their locally hired counterparts, expatriates are

generally believed to have a better understanding and a greater commitment to overall

corporate goals (Doz&Prahalad, 1986; Kobrin, 1988). Expatriates’ familiarity with the corporate

culture and the control system of headquarters would result in more effective communication

and coordination (Scullion, 1994) and are effective in replicating existing organizational

specificities and the operating procedures in headquarters in the subsidiaries (Rosenzweig&

Singh, 1991).

Expatriate Capabilities are highly considered when selecting expatriates to send on overseas

assignments (Torrington, 1994) and these are based on three attributes namely, competencies,

Page 48: A Research & Academic Journal of Business Management

47

willingness and adaptability of expatriates (Hyondong, 2005). Competencies are looked at in

terms of knowledge and skills in managerial and technical aspects which must be possessed by

expatriate managers (Tung, 1981, 1987; Bjorkman&Schaap, 1994). Technical competence has

been almost the sole variable used in deciding whom to send on overseas assignments, despite

the fact that multiple skills are necessary for successful performance in international assignments

(Mendanhall, et al., 1987). Previous research suggests that, most importantly, competent and

valuable expatriates must possess superior managerial and technical skills. For example, Tung

(1981, 1987) notes on a number of occasions that one of the most basic elements that expatriate

managers must possess is professional knowledge and competence. The findings of Bjorkman

and Schaap’s (1994) study on western expatriates working in China reveal that Chinese

employees are more willing to learn from expatriates possessing superior managerial and

technological skills, and less likely to do so from those who fail to measure up to the expected

standards of overseas subsidiary demands. In fact, expatriates who are not professionally

competent are resented for receiving high compensation packages, therefore hindering

knowledge transfer.

Knowledge transfer in the process through which organizations learn from each other’s

experience and adapt all or some of the knowledge acquired (Darr&Kurtzberg, 2000). Knowledge

transfer can take place through a variety of channels that involve the transmission of ideas and

new technologies. Literature often makes the distinction between tacit and explicit knowledge

(Polanyi, 1967), wherein explicit knowledge is what can be formally expressed clearly, fully, and

leaves nothing implied and can be stored in specifications, reference manuals, procedures and

company handbooks (Nonaka& Takeuchi, 1995). Tacit knowledge on the other hand, cannot be

easily as know-how. While it is always difficult to decide which knowledge can be considered as

tacit rather than explicit, however, the two types are not completely distinct: knowledge

codifiability and tacitness should be considered as a continuum and when knowledge is

transferred, that process will generally involve both tacit and explicit knowledge (Nonaka&

Takeuchi, 1995).

The very reason why MNCs exist and succeed is that they are efficient vehicles for creating and

transferring knowledge across borders (Gupta & Govindarajan, 1991; Kogut & Zander, 1993;

Page 49: A Research & Academic Journal of Business Management

48

Borensztein, De Gregorio, & Lee, 1995). Foreign Direct Investment (FDI) also contributes to

economic growth via technology transfer since MNCs can transfer technology directly (internally)

to their foreign owned enterprises (FOE) through their expatriates (Blomstrom, &Lipsey, 2000).

Technological and managerial knowledge are the two major types of knowledge embedded in

FDI. Technological knowledge has gained much significance (Hansen &Lovas, 2004) unlike in the

past when technology was considered in terms of tangible objects like working machinery and

artifacts, giving little significance to knowledge related aspects (Ford &Saren, 1996). Technology

thus is much more than machinery for it involves the practical application of scientific knowledge

that is codified and easily accessible in addition to nonscientific knowledge that may be

embedded in the culture of society or company, group, worker or inventor tasks (Fernandize, et

al., 1999). Ford and Saren (1996) describe different technologies under the product, process and

market technologies categories.

They can provide their affiliate with too few or the wrong kind of technological capabilities, or

even limit access to the technology of the parent company. The transfer of technology can be

prevented if it is not consistent with the MNC’s profit maximizing objective and if the cost of

preventing the transfer is low. Consequently, the production of its affiliates could be restricted

to low-level activities and the scope for technical change and technological learning within the

affiliate reduced (Adeolu&Obafemi, 2007).

The expatriation literature frequently cites the need to transfer resources abroad as a primary

reason for expatriating capable home-country nationals to foreign affiliates (Dowling et al.,

1994). MNCs use competent expatriates as a means of organizational development, aimed at

increasing knowledge transfer within the subsidiary processes (Harzing, 2001b) through a

“contagion” effect from the more advanced technology and management practices used by

foreign firms (Findlay, 1978).

For the transfer to be successful, mechanisms based on human resources are relied on (Nonaka&

Takeuchi, 1995). Consequently, expatriate capabilities are a legitimate way of transferring

embedded knowledge (Downes& Thomas, 2000). Expatriates with a given set of capabilities are

employed in the MNCs as vehicles for the knowledge transfer from one unit to the other

(Minbaeva et al., 2003). According to Downes and Thomas (2000) the greater the number of

Page 50: A Research & Academic Journal of Business Management

49

expatriates in a subsidiary, the more the knowledge that can be transferred as such, the practice

of employing expatriates may be a strategic move on the part of an MNC to increase the

international experience and knowledge base of present and future managers. Thus, expatriation

is a tool by which organizations can gather and maintain a resident base of knowledge about the

complexities of international operations.

The ability of a firm to transfer knowledge depends on knowledge, skills, and competencies of

individuals who are directly involved in the transfer process, because ultimately it is the

individuals who are imparting and receiving knowledge (Argyris&Schon, 1978). One of the major

responsibilities of expatriates is to bring and transfer skills from the parent firms to the affiliates

in the host countries (Bonache et al., 2001). Expatriate assignment thus, is an effective means

that increase knowledge stock within a relatively short time horizon by grafting knowledge that

is new and useful to the host country context to the overseas affiliates (Huber, 1991). When the

underlying knowledge being transferred is tacit or the objective of the transfer is to change the

mindsets of knowledge recipients, significant learning would not take place without the presence

of expatriates (Pucik, 1988; Tsang, 1999, 2001). Thus, the success of knowledge transfer depends

critically on the types of expatriates being appointed. Delios and Bjorkman (2000) and Tsang,

(2001) suggest that given the knowledge function that expatriates play, the greater knowledge

and skills the expatriates possess, the greater knowledge and skills will be transferred to foreign

subsidiaries. In recent field research, Wang et al. (2004) also found that sending overseas

expatriates with professional competence increases knowledge transfer from MNCs to foreign

subsidiaries. Several previous studies evidence the importance of individual and contextual

factors that are weakly related to competence of expatriates (Dowling et al.1999). However,

most MNCs place heavy emphasis on technical and managerial capabilities of expatriates: unless

expatriates possess and develop their expertise that is necessary to overseas operation

effectiveness, the contribution of these individual and contextual factors may be questionable.

Thus, expatriates who are competent and possess professional knowledge are valuable corporate

resources. Using the resource-based logic, appointing valuable expatriates to an overseas

subsidiary should help improve the subsidiary’s performance.

Page 51: A Research & Academic Journal of Business Management

50

In addition to abilities, the expatriates’ willingness to transfer knowledge is essential to

implement effective knowledge transfer program. Literature on expatriate staffing and

localization suggests that expatriates who are useful and valuable to overseas affiliates must have

the genuine desire to impart years of hard-earned professional know-how to local employees

and commit to localization (Rogers, 1999). Thus individual willingness and motivation for

knowledge transfer has been suggested to have greater impact on individual behavioral

outcomes (Gupta &Govindarajan, 2000). Expatriate managers however, have little incentive to

share knowledge they have acquired because, to the extent that they harbor a monopoly of

locally-developed knowledge, they gain bargaining power in the MNC by controlling a crucial

asset (Coff, 2003). Furthermore, it is impossible for the organization to be aware of all the

knowledge expatriates gain during their assignments or to monitor the extent to which that

information is shared. This results in a basic principal-agent problem as described by agency

theory. Expatriates then, have to be motivated to share their valuable knowledge especially the

tacit one despite the fact that their income and status within the firm are invariably linked to

their know–how. This is acute when there is no prospect of receiving an immediate payback in

equally valuable knowledge or when there is a fear that it may be leaked to competitors.

Hence, for intrafirm knowledge transfer to take place, expatriates (the source of knowledge)

must be sufficiently motivated to engage in transfer. This study thus postulates to test the

hypothesis:

H0: There is no significant relationship between motivation of expatriate and their use

of face-to-face interactions as a transfer knowledge tool.

H1: There is a significant relationship between motivation of expatriate and their use of

face-to-face interactions as a transfer knowledge tool.

Methods

For this descriptive cross-sectional study, primary data was collected using the survey methods

using a structured questionnaire as the tool from 30 expatriates using purposive sampling from

twelve firms. There were five Information Technology firms, two financial consultancies, and

Page 52: A Research & Academic Journal of Business Management

51

three were electronics firms. Of these, ten were MNCs with global operations, a hospital based

in Saudi Arabia having a team of international doctors sharing knowledge with each other, and

finally a local firm created to be ‘born global’ right from its inception, where knowledge is

transferred regarding international clients and technical knowledge is institutionalized. For this

study, these two firms’ professionals were thus considered as expatriates too. The expatriate

capabilities has been measured in terms of their ability and willingness to transfer both technical

and managerial knowledge within the organization. The structured questionnaire had 4

questions profiling the respondents- age, gender, marital status, nationality; 3 questions

regarding the assignment- designation held during the assignment, country of assignment (host

country), and purpose of assignment. There were 2 questions regarding the company- name of

the company and home country of the parent company; 5 questions on expatriate capabilities

on a five-point scale, from strongly agree to strongly disagree; 2 questions on tools or methods

of knowledge transfer, also on a five-point scale, from always, often, sometimes, rarely to neural.

Data Analysis

The data was tabulated and analyzed and the hypothesis was tested using Pearson Correlation.

Table 1. Demographics of Respondents

Frequency Approx.%

Age 20-30 19 63

30-40 5 17

40-50 4 13

Above 50 2 7

Total 30 100

Gender Male 21 70

Female 9 30

Total 30 100

Marital Status Single 17 57

Married 13 43

Page 53: A Research & Academic Journal of Business Management

52

Separated 0 0

Total 30 100

Nationality Indian 30 100

Others 0 0

Total 30 100

Designation Middle level executive 24 80

Top level executive 6 20

Total 30 100

The above table1 shows that all the expatriates who participated in the survey were all of the

Indian nationality, mostly young, in the age group 20-30 years. While 70% of them were male,

57% of the respondents were single, and none were separated. The majority (80%) held middle

level executive positions during their international assignment.

Moreover, for 16%, these assignments ranged from 1-2 years, for 23% it was 2-3 years and for

the majority, the duration was more than 3 years. In the survey, for 40% of the expatriate

respondents the home country of their company was in India, for 24% it was in the USA, for 6%

of the expatriates it was in Singapore, for 13% home country was in Saudi Arabia, and finally for

5% of the expatriates it was in Kuwait. The survey also shows that the subsidiary host country,

for 27% was in the USA, followed by Singapore (23%), Saudi Arabia (17%) and Kuwait (10%). The

rest were posted in Africa and New Zealand. The purpose of these assignments was mostly for

technical assistance, followed by both control and starting a new branch, while four of them

responded that it was for yet other purposes.

Data analysis yielded results regarding the expatriates’ managerial and functional ability: 63% of

them strongly agreed that they possess superior managerial skills and 37% agreed that they

possess superior people management skills such as communication, conflict resolution,

leadership and administration skills which have been considered crucial to effectively transfer

knowledge to subsidiaries. Moreover, 57% of the respondents “Strongly Agree” that they possess

superior functional skills and 37% “Agree” that they possess superior functional skills such as

Page 54: A Research & Academic Journal of Business Management

53

knowledge of products and procedures of the company, and technology which are transferred to

subsidiaries.

Regarding the fear of losing power and control in solving difficulties in the subsidiary, 33% of the

respondents “Strongly Agree”, 47% “Agree” and 20% remained neutral to the issue.

The study was also interested in finding how willing were these expatriates to solve problems

and for this transfer their knowledge to the subsidiary. The results showed that the majority

(60%) of the respondents were very willing, 37% “Agree” and 3% did not express their view on

the issue. Data analysis results showed 57% of the respondents strongly agreeing and 43%

agreeing that they are willing to cope with cultural differences to transfer knowledge to

subsidiary employees. This may be because Indians live in a culturally diverse country and hence

they have a higher willingness to cope with such diversity even when transferred overseas.

Expatriates’ use of different tools of knowledge transfer was examined. Regarding holding

regular meetings to discuss business trends, results showed that 50% of them use it always, 33%

of them “Often” and 17% of them “Sometimes”. However, 40% “Always”, 43% “Often”, 10%

“Sometimes” and 7% “Never” use face-to-face interactions as a tool for knowledge transfer.

The hypothesis regarding relationship between motivations of expatriate and their use of face-

to-face interactions as a transfer knowledge tool was tested using Person Correlation.

Table 2: Correlation

Factors Motivation Face to Face

Interaction

Motivation 1

Face to Face

Interaction

0.916191 1

Page 55: A Research & Academic Journal of Business Management

54

From the above table 2, it can be inferred that there is a positive and high correlation (r = .91)

between expatriate motivation and using face-to-face interactions as a tool for transfer

knowledge. At 95% level of significance the p value is 0.00001. The result is thus significant at p

< 0.05. The alternate hypothesis is then accepted that there is a significant relationship between

expatriate motivation and using face-to-face interactions as a tool for knowledge transfer.

Findings

The results of the study indicate that managerial skills such as communication, conflict resolution,

leadership and administration skills are considered critical for effective knowledge transfer. Most

(94%) expatriates state that functional skills such as knowledge of products and procedures of

the company, technology are important to effectively transfer knowledge to subsidiary

employees. Most (80%) of the expatriates who participated in the study stated that they are not

afraid to lose power and control to solve difficulties during knowledge transfer. The majority

(97%) of the expatriates are willing to solve problems thus transferring knowledge in the

organization.

All expatriates surveyed are highly motivated to cope up with the cultural differences thereby

reducing the difficulty in transferring organizational knowledge. The majority (83%) share their

knowledge in subsidiaries by holding regular meetings to discuss business trends and use face-

to-face interactions as a tool for knowledge transfer.

Finally, the findings show that there is a significant relationship between expatriate motivation

and using face-to-face interactions as a tool for transfer knowledge. Expatriates are thus making

an effort within the organization to communicate with employees face-to-face, building strong

relationships, enhancing trust, thereby easing the process of knowledge transfer.

Conclusion

This study on intra-organizational transfer of knowledge by expatriates was designed with the

objective of analyzing expatriate capability to transfer knowledge to others (or subsidiaries)

within the firm. It also identified the tools or methods to transfer knowledge and finally,

Page 56: A Research & Academic Journal of Business Management

55

examined the relationship between expatriate motivation and face-to-face interaction as a

knowledge transfer tool. The results of the research highlight that expatriates’ managerial and

functional capabilities help them in transferring knowledge effectively. The study shows that the

willingness of the expatriates to cope up with cultural differences, devote time and effort, and

not being afraid of losing power and control in solving difficulties are important for successful

transfer of knowledge to employees. Moreover, formal meetings and face-to-face interactions

have been found in the study to be the most popular means of knowledge transfer by expatriates.

Finally, the research shows that when expatriates are motivated, there is more face-to-face

interaction than otherwise.

Limitations and Recommendations for Future Research

While this study is carried out on a relatively smaller size of expatriates, it is still a representative

sample since are from five different countries. Knowledge transfer research could be undertaken

on a larger sample size with expatriates from many more different home countries. Similarly, the

industries could be diverse to include for example manufacturing and pharmaceutical where

knowledge transfer is intensive using expatriates. Yet other scholars could undertake such a study

in “born globals” which will offer unique insights in the abilities, willingness and tools of

knowledge transfer.

Another limitation of the present study is its cross-sectional design. However, this offers an

opportunity to examine knowledge transfer over a period. This call for a longitudinal study as

knowledge transfer in organizations is the process “through which one unit (e.g., group,

department, or division) is affected by the experience of another” (Argot & Ingram, 2000) hence

the outcomes must be studied at different points of time. Subsidiary performance as an outcome

is the most widely researched subject; it is now time to investigate expatriate success (not failure)

in filling the position and transferring knowledge in the host country. Such a study could also call

for studying several variables simultaneously; hence, the complexity of the study would

recommend the use of structural equation model.

Page 57: A Research & Academic Journal of Business Management

56

Finally, the study presents recommendations for corporate managers designing strategic policies

and practices facilitating expatriate knowledge transfer in the subsidiaries. Most organizations

select expatriates based on their technical skills. However, from the study it can conclude that

the ability and motivation capabilities of the expatriates are critical for effective knowledge

transfer. Thus, it is recommended that expatriates are selected keeping these factors in mind.

Moreover, knowledge transfer, especially tacit knowledge involves interaction between the

expatriates and other employees in the organization. Therefore, the selection of the right tools

of knowledge transfer is of significance. Since there is a trust and cooperation between the

expatriates and employees, informal knowledge transfer tools like experience sharing and

meetings should be used to transfer knowledge.

References

Adeolu, B.A. and Obafemi, A. (2007). FDI and Economic Growth: Evidence from Nigeria.

AERC Research Paper 165. African Economic Research Consortium, Nairobi April.

Argote, L., and Ingram, P. (2000). Knowledge transfer: A basis for competitive advantage

in firms. Organizational Behavior and Human Decision Processes, 82, 150–169.

Argyris, C.A. and Schon, D. A. (1978). Organizational Learning: A Theory of Action

Perspective. Reading, MA: Addison Wesley.

Bjorkman, I. and Schaap, A. (1994). Outsiders in the middle kingdom: Expatriate managers

in Chinese-western joint ventures. European Management Journal 12(2): 147-153

Blomstrom, M.D.K. and Lipsey, R. E. (2000). FDI in the Restructuring of the Japanese

economy. The European Institute of Japanese Studies (EIJS), Working Paper No 91.

Stockholm.

Bonache, J. and Brewster, C. (2001). Knowledge transfer and the management of

expatriation. Thunderbird International Business Review 43(1), 145-168.

Borensztein, E., De Gregorio, J. & Lee, J. (1995). How Does Foreign Direct Investment

Affect Economic Growth? NBER Working Paper No. 5057, 22

Coff, R. (2003). Bidding wars over r&d-intensive firms: knowledge, opportunism, and the

market for corporate control, Academy of Management Journal, 46, 74

Page 58: A Research & Academic Journal of Business Management

57

Colakoglu, S., & Jiang, Y. (2013). Subsidiary-level outcomes of expatriate staffing: an

empirical examination of MNC subsidiaries in the USA. European Journal of International

Management, 7(6), 696-718.

Darr, E. D., & Kurtzberg, T. R. (2000). An investigation of partner similarity dimensions on

knowledge transfer. Organizational behavior and human decision processes, 82(1), 28-44.

Delios, A. and Bjorkman, I. (2000). Expatriate staffing in foreign subsidiaries of Japanese

multinational corporations in the PRC and the United States”, International Journal of

Human Resource Management, 11 (2), 278-93.

Dowling, P. J., Welch, D.E. and Schuler, R.S. (1994). International Dimensions of Human

Resource Management, 2nd ed. Belmont, CA: Wadsworth.

Dowling, P. J., Welch, D.E. and Schuler, R.S. (1999). International Human Resource

Management: Managing people in a multinational context, Mason, OH: South-Western

College Publishing.

Downes, M. and Thomas, A. (2000). Knowledge transfer through expatriation: The Ucurve

approach to overseas staffing. Journal of Managerial Issues, 12(2), 131-149

Doz, Y., & Prahalad, C. K. (1986). Controlled variety: A challenge for human resource

management in the MNC. Human Resource Management, 25(1), 55-71.

Fernandez, E., Montes, J. M., Perez-Bustamante, G. O., & Vazquez, C. J. (1999).

Competitive strategy in technological knowledge imitation. International Journal of

Technology Management, 18(5-8), 535-548.

Findlay, Ronald (1978), ‘Relative Backwardness, Direct Foreign Investment, and the

Transfer of Technology: A Simple Dynamic Model’, Quarterly Journal of Economics, 92, 1–

16.

Ford, D., & Saren, M. (1996). Technology strategy for business. Cengage Learning EMEA.

Gupta, A.K. and Govindarajan, V. (1991). Knowledge flows and the structure of control

within multinational corporations. Academy of Management Review, 16, 768-792.

Gupta, A.K. and Govindarajan, V. (2000). 'Knowledge flows within multinational

corporations'. Strategic Management Journal, 21, 473-96.

Page 59: A Research & Academic Journal of Business Management

58

Hansen, M.T. and Lovas, B. (2004). Leveraging technological competences. Strategic

Management J, 25, 801–822.

Harzing, A. W. (1999). Managing the multinationals: An international study of control

mechanisms. E. Elgar.

Harzing, A.W.K. (2001b). Who’s in charge? An empirical study of executive staffing

practices in foreign subsidiaries. Human Resource Management, 40(2), 139–158.

Huber, G. P. 1991. Organizational learning: The contributing processes and the literatures.

Organization Science, 2(1): 88–115.

Hyondong, K. (2005). Expatriate Capabilities, Knowledge Transfer, and Foreign Direct

Investment Performance

Jun, S., Gentry, J. W., & Hyun, Y. J. (2001). Cultural adaptation of business expatriates in

the host marketplace. Journal of International Business Studies, 32(2), 369-377.

Kobrin, S.J. (1988). Expatriate reduction and strategic control in American multinational

corporations. Human Resource Management, 27, 411–432.

Kogut, B., & Zander, U. (1993). Knowledge of the firm and the evolutionary theory of the

multinational corporation. Journal of international business studies, 24(4), 625-645.

Leach, F. (1994). Expatriates as agents of cross‐cultural transmission. Compare, 24(3),

217-231.

Mendenhall, M. E., Dunbar, E., & Oddou, G. R. (1987). Expatriate selection, training and

career‐pathing: a review and critique. Human Resource Management, 26(3), 331-345.

Minbaeva, D., Pedersen. T., Björkman, I., Fey, C. and Park, H. J. (2003). MNC Knowledge

Transfer, Subsidiary Absorptive Capacity and HRM. Journal of International Business

Studies, 34 (6), 586-599.

Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese

companies create the dynamics of innovation. Oxford university press.

Polanyi, M. (1967). The Tacit Dimension. London: Routledge and Kegan Paul.

Pucik, V. (1988). Strategic alliances, organizational learning, and competitive advantage:

The HRM agenda. Human Resource Management, 27(1), 77-93.

Page 60: A Research & Academic Journal of Business Management

59

Rogers, B. (1999). The expatriate in China – A dying species. Localization in China: Best

Practice Hong Kong: Asia Law & Practice, 43-62.

Rosenzweig, P. M., & Singh, J. V. 1991. Organizational environments and the multinational

enterprise. Academy of Management Review, 16: 340-361.

Selmer, J., & de Leon, C. T. (2002). Parent cultural control of foreign subsidiaries through

organizational acculturation: a longitudinal study. International Journal of Human

Resource Management, 13(8), 1147-1165.

Torrington, D. (1994), International Human Resource Management, Prentice-Hall, London

Tsang, E.W.K. (1999). The knowledge transfer and learning aspects of international HRM:

an empirical study of Singapore MNCs. International Business Review 8 (5/6), 591-609.

Tsang, E.W.K. (2001). Managerial learning in foreign-invested enterprises of China.

Management International Review 41(1), 29-51.

Tung, R. (1981). Selection and training of personnel for overseas assignments, Columbia

Journal of World Business 16(1), 68-78.

Tung, R. (1987). Expatriate assignments: Enhancing success and minimizing failure.

Academy of Management Executive, 1, 117–126.

Wang, P., Tong, T. W., & Koh, C. P. (2004). An integrated model of knowledge transfer

from MNC parent to China subsidiary. Journal of World Business, 39(2), 168-182.

Page 61: A Research & Academic Journal of Business Management

60

Impact of impact of mergers on consumers and employees with respect to banks in India

Archana S Kothavale*

Abstract

The intention of the paper is to have an overview of the post amalgamation of banks. Here most

of the small financial Institutions are absorbed by the larger ones, thus simplifying the end use of

customers and the Government, by framing their own parameters bounded by the laws of RBI.

The objective of this paper is to present the motives of the banks for merger, which has been

narrated with the live examples. Apart from the merger aspects it also mentions from the point

of view of human resource management and the various kinds of operations undertaken. Also by

the merger there would be a major impact in human resources, like the employees opting for the

voluntary retirement which is a positive aspect for the organization, thereby overviewing the

paper presentation we can say that there is a positive impact by the merger and simplified

banking.

Key words: Amalgamation, parameters, human resources.

Introduction

In every economy banking sector plays an important role as it is one of the rapid growing

segments in our country. Since there is a stiff competition, due to the existence of

multinationals, to face and survive in the current situation, merger was absolutely

required. Commercial banks in India are going through tremendous changes in the

regulations due to various factors such as the financials, risk management and the

introduction of online transactions. All these factors make the financial institutions in our

country very competitive and effective. In India merger of banks began in the 60’s to

strengthen the weaker banks and protect the public interests.

Keywords : Merger , Banks, Impact

Page 62: A Research & Academic Journal of Business Management

61

*Faculty ,Ramaiah College of Law

Objectives of The Study

The recent scenario of mergers in the banking sector.

Understanding the merger procedure in banking.

To find the effects of merger of banks.

To know the impact of mergers on consumers and employment conditions.

1n case of banking sector, Merger is combining of multiple banks, to form a single bank. It

is a financial activity which is undertaken in a large variety of industries, hospitals, financial

institutions, private institutions, industries and many more. Among the major mergers one

of the prominent mergers are merger of ICICI Ltd.with its banking component ICICI BANK

Ltd. and the Global Trust bank with Oriental Bank of Commerce. This is said to be one of the

major banking reforms post liberalization. The merger consists of three types of components

namely Vertical merger, Horizontal merger and lastly Conglomerate merger. A Vertical

merger is a merger between companies in the same sector but in various levels in the

production process. In short vertical merger takes place between companies where one

purchases or sells something from or to the other .For instance :Soft drinks like Pepsi merger

with restaurant chains involving the sale of beverages. The amalgamation between firms leads

to Horizontal merger which are selling similar type of products in the same market. The

examples of Horizontal merger are Eighties bank merger and the merger of HP and COM

PAQ, impacting the competition decrease in the market.

Conglomerate merger is a combination between companies in different industries.

The financial institutions pertaining to 10 public sector undertakings (PSUs) will be amalgamated

into 4 banks w.e.f 1st April, 2020 which was announced by the Finance Ministry in August

2019.With this impact the public sector banks has been downsized to to 12 w. e. f. 2017. But due

to the formation of merger exercise it may defer for some time due to the covid-19.

The major merger of PSU banks which would come into effect from 1st April:

With the amalgamation of Punjab National Bank with The Oriental Bank of Commerce and United Bank of India.

The merger of above said institutions would form the second largest public sector after

Page 63: A Research & Academic Journal of Business Management

62

State Bank of India.

The merger of Bank of Baroda with Dena Bank and Vijaya Bank, it would create the 3rd largest public sector bank.

With the merger of Canara Bank and Syndicate Bank, it would make them the fourth – largest public sector Bank. .

Indian bank will be amalgamated with Allahabad bank.

Union Bank of India would be merged with Andhra Bank and Corporation Bank.

With effect from 1st April 2020 the customers of merging banks will be treated as customers of the banks in which these banks have been merged.

In a nutshell, there will be 12 PSU’s, consisting of 6 merged banks and 6 independent public sector banks.

o 6 merged banks include SBI, bank of Baroda, Punjab National bank, Union Bank of India and Indian Bank, Canara Bank.

o 6 independent banks consist of Indian overseas banks, UCO bank, Bank of Maharashtra,Punjab and Sind Bank , Bank Of India , Central Bank Of India .

Henceforth, The oriental Bank Of Commerce and United Bank of India will operate as the branches of the Punjab national bank w.e.f.1st April 2020.

Dena Bank and Vijaya Bank would be the branches of Bank of Baroda with effect from 1st April 2020.

Syndicate Bank would function as the branch of Canara Bank w.e.f. 1st April 2020.

All Allahabad bank branches would be henceforth treated as branches of the Indian bank

Similarly all branches of Andhra Bank and corporation bank would function as Union bank of India branches w.e.f. 1st April 2020.

Objectives and Advantages

With mergers in the ban king sector, the ban k can achieve growth in their operations and reduce their

expenses to a larger extent. Competition is also reduced because merger eliminates competitors from

the banking industry. Mergers will increase the lending capacity. No person will lose the job. The

employees of merging banks will benefit in the larger extent. As the banks are using a’ CORE BANKING

SYSTEM’ the software for these banks have merged accordingly so that there would not be any difficulty

for the employee

The Government also gave Rs.2.5 lakhs crore for recapitalization of the banks, besides other reforms

Page 64: A Research & Academic Journal of Business Management

63

which have made the banking sector stronger than before. The banks merger was done under the

bank consolidation plan of the Union Government. It would reduce their dependence on the

government for the capital since it would increase the role of internal and market resources.

Further it would open up more capita! Generation opportunities, both internally and from the

market, for the merged concern . For the government it would create more dividends, as a part of non-

tax revenue. As there would be less competitors in the ban king industry, they could concentrate

on payment and settlement. The merger of banks would decrease the operational risks as it would

fill the geographical gap between management and operational personnel. It is a next generation

technology for the banking sector, reduced Public sector banks from 27 to 1 2 in India.

Banks with large bad debts and poor revenue would merge itself with another bank for its

survival, and thereby consolidating financial institutions, to sustain in the day to day business

activities.

To reduce the scope of inefficiency in small banks, mergers lead to gain in the larger scale of

expertise.

Mergers give a sufficient and higher capital with more liquidity flow which decreases the

obligation of governments; in recapitalizing the PSBs time and again, transferring the skills

and sharing the resources and working efficiently to sustain in a competitive market.

Procedure for Merger of Banks

The amalgamation of the banking companies must be compiled with the rules and

regulations under sec 44A of the banking regulation act 1949.

For merger of banks the approval of shareholders is necessary, followed by approval of

SEBI and there by a new company is formed. The shares are issued to the shareholders of

the transferor company.

Under the banking act no financial institution shall be merged with another financial

institution unless there is a provision for such merger has been placed in draft before the

respective shareholders of each of the banking companies and the same has to approved

by the 2/3rd majority of shareholders present in person or by way of meeting.

The notice of such meeting has to be given to or keep informed to every share holder of

the respective merging banks indicating the time, venue and purpose of the meeting

which should be published in 2 leading circulars, of which one should be understood

locally.

Page 65: A Research & Academic Journal of Business Management

64

There on by the approval of the amalgamation by the required majority of shareholders

binding the laws the same would be submitted to the RBI for the sanction and if

sanctioned the RBI would pass the order in writing binding the bylaws of banking

companies and its shareholders . On the post sanction of the amalgamation, the assets

and liabilities of amalgamated banking company be transferred to the said banking

company.

The RBI after approving the dissolution of the amalgamated banking company, the same

is produced to the Registrar to complete the closure formalities. The amalgamation

process would stand as conclusion, once the requirement of sec 19 of the banking laws

1963 is compiled with and a certified copy in writing by the concerned RBI officer.

In case of amalgamation the draft scheme of the same is thoroughly scrutinized by the

respective board of directors, before giving their final approval. In case of private banks

the procedure is the same but within the parameter of reserve bank of India’s master

direction for amalgamation of private sector banks 2016.

Lastly to conclude the amalgamation of private banks is not complicated and are rather

straight forward, whereas the amalgamation of public sector banks is a lengthy process

which required the nod of the government. In power and to have the approvals of the

required numbers in both the houses of parliament. Also, the assets and liabilities and the

human resource should be managed efficiently for the successful operation of the

amalgamation process and there by not causing any kind of inconvenience to the

customers of the amalgamated bank.

Legal Implications of Merger:

The Banking Regulation Act of l949, governs the private banks and other related financial

institutions, whereby merger between banking industries is regulated by Section 44 of the said

Act . According to this a merger is required to be approved by a two third majority of shareholders

of each of the merging companies. Section 45 of this Act 1 949, deals with the compulsory

amalgamation of banks... Section 35 refers to acquisition of business of other banks. Thereby the

shareholders of the public listed banks would be affected and that impact would be known only,

once the swap ratios are announced. The legal aspects are bounded in such a way that the

shareholders get appropriate ratio of their holdings. The Following are the latest announcements

on merging State run Banks: As announced by the lClC1 securities it estimated that the

shareholders of Syndicate Bank would get 140 shares of Canara Bank for every 1000 shares of

Page 66: A Research & Academic Journal of Business Management

65

the Syndicate bank. The shareholders of Allahabad Bank would get 176 shares of the Indian bank

for every 1000 shares held in Allahabad bank. They also estimated that the shareholders of

Oriental Bank of Commerce would get 1130 shares of the Punjab National Bank for every 1000

shares held in Oriental Bank of Commerce. The shareholders of United Bank would get 160 shares

of PNB for every 1000 shares held in United Bank, as part of the agreed merger swap ratios.

Similarly the shareholders of Andhra Bank would get 330 shares of the Union bank of India for

every 1000 shares held in Andhra bank and the shareholders of Corporation bank would get

320 shares of the Union bank of India for every 1000 shares held in Corporation bank .The

stakeholders of Vijaya Bank will get 402 equity shares of Bank of Baroda for every 1000 shares

held. The shareholders of Dena Bank will get 110 shares of Bank of Baroda for every 1000 shares.

Impacts of Merger

The foremost requisite would be to change the cheque book (new format) sometimes the

logo of the banks have to be changed.

There would be a change in IFSC codes with the merged bank and the exchanging of the

debit/credit card.

There would be a change in interest rates for the fixed deposit and lending rates in the case of Post horizontal

merger, the bank which has induced may have to face the NPAs of the merged bank if

any.

Post-merger the banks are expected to make settlement of the employees and their

statutory dues for those who opt for the Voluntary Retirement.

Disadvantages

The management would have to face critical challenges with merger and respect to staff

integration, rationalization of branches, synchronizing accounting, cultural compatibility,

policies for recognition of bad loans etc. The process of merger would face resistance from the

employee Unions who would afraid of losing jobs or promotions The rationalization of branches

would lead to their relaxation. Pensions would be affected due to various employees benefit

structures. The major disadvantage is the compliance and risk consistency as both the

Page 67: A Research & Academic Journal of Business Management

66

merger organization would have different norms and risk culture leading to uncertainty

which creates a negative foot-print on the profitability of the organization.

Suggestions

Minimize the Existing banks, by merging with the smaller banks. Which in turn would again

reduce the competition and survival of the sick banks.

To introduce of more banks in overseas, to increase deposits, and other banking facilities.

Effective training is to be provided to the employees to build a good, and friendly

relationship with the customers.

Merge of major scheduled and cooperative banks with the nationalized banks.

Reintroduce of Reverse Mortgage loans to the senior citizens , whereby the senior citizens

could avail loan on their assets and after their death the legal heirs could close the loan or

the asset would be owned by the bank

Minimize the Existing banks, by merging with the smaller banks. Which in turn would again

reduce the competition and survival of the sick banks.

To introduce of more banks in overseas, to increase deposits, and other banking facilities.

Effective training is to be provided to the employees to build a good, and friendly

relationship with the customers.

Merge of major scheduled and cooperative banks with the nationalized banks.

Reintroduce of Reverse Mortgage loans to the senior citizens ,whereby the senior citizens

could avail loan on their assets and after their death the legal heirs could close the loan or

the asset would be owned by the bank

Outsource the employees, to reduce the statutory dues and their wages.

Provide good incentives and benefits to the employees.

Reduce the minimum amount of account opening, and providing doorstep services to the

customers.

Introduce of more single windows in retail banking so as to fulfil the needs of the

customers.

Introduce more ATM’s and reduce the limitation for withdrawal.

Introduce mobile ATMs in remote places.

To encourage implementing corporate social responsibilities as philanthropic activities as

most of the banks would be in a better position of earning profits due to the merger.

Update the CIBIL scores of the customers in time and again which is otherwise not done

regularly.

Page 68: A Research & Academic Journal of Business Management

67

Conclusion

It is true the Merger of banks would boost our economy and there by function more efficiently

and effectively and thus creating more profits and healthy financials. The act of merger should

be such that it should merge with the respective competitive banks to maintain the status and

also share their respective parameter and man power. Through merger, the banks financial status

would improve by and large.

References

Articles: How strong are the arguments for bank mergers

Market based mergers in Indian Banking Institutions

Mergers in Banking industry of India :some emerging issues—Asian journal of business

and management studies

Mergers in Indian banking :An analysis Impact of mergers on the cost efficiency of Indian

commercial banks

Merger &Amalgamation in banking sector in India—researchersclub.wordpress.com

Will bank mergers make a difference—Financial express.com

Merger &Acquisition in Banking Industry—www.acadpub/eu/hub/

Insights into Editorial :Big bank theory:on public sector bank mergers

How the mega bank mergers will impact you—economic times.indiatimes.com

How will mergers affect PSBs—the hindu.com

Mega bank merger:key figures,motive,impact,significance—www.jagran

josh.com>current affairs

Digging deeper /the big bank merger—What,why,&whatnext?—money control.com

PSUbank mergers:customers of which banks are likely to be impacted &how—economic

times.indiatimes.com

Nirmala Sitharaman Announces big reforms for PSBs—key highlights—economic

times.Indiatimes.com

Mega PSU merger—wishfin.com

The Big Bank Merger:Pros&cons—Capitalvia.com

GD Topic—Banks Merger in India:Is it good for Indian Economy?—

www.mbauniverse.com

Summary&Conclusions:shodhganga.inflibnet.ac.in>bitstream(PDF)

Advocate khoj.com

Blog of pleaders.in>banking

Page 69: A Research & Academic Journal of Business Management

IV. Literature Review:

The literature review must include a detailed review of the existing body of work and must contain only reviews of articles in peer reviewed journals. At least 15 articles must be reviewed and website and other references don’t count.

A Comparative Study on Public Sector Bank Asset Quality in India

II. Abstract:

The abstract should summarize the entire study in not more than 300 words. It should be a brief summary of the research questions investigated, the methodology used, the key findings and conclusion.

The introduction should bring out the current context of the study and relate it to the existing body of work in the researchers focus area. This is to be done in about 700-800 words.

III. Introduction:

V. Methodology:

The methodology section must present all research methods and research tools used to analyze the data collected.

VI. Results:

IX. Referencing:

The referencing must follow the APA style. Other forms of referencing are unacceptable. Merely citing web links is not acceptable.

VII. Discussion and Analysis:

The results must be discussed in context of similar studies and observations made by top researchers in the area of study.

The results segment must have all analyzed data properly tabulated and all figures presented in sequence. Raw output from data analysis software is not acceptable.

The conclusion must sum up all key findings and relate it to the purpose of the study.

2.Plagiarism:

RIM believes that all research work will have original contributions of the author. These contributions of the author could be an extension of existing literature or newly explored content through research or purely conceptual in nature. Giving due credit to original contributors will ensure zero plagiarism. However, given the technology permeation and possible content contributed being similar to other documents or near replication of content, the manuscript for the RIM journal must not exceed 15%. Anything above 15% will result in immediate rejection of the manuscript. Authors are required to check their manuscript for plagiarism and submit only if the level of plagiarism is below 15%. RIM on its part will also have the manuscript screened for level of plagiarism for due acceptance / Rejection of the manuscript.

3.The entire paper shall not exceed 3000 words.

VIII. Conclusion:

I. Title

VIII. Conclusion

Dear Colleagues and friends,

We at the Ramaiah Institute of Management (RIM) believes that knowledge is pervasive and universal. It can come from any source and form. However, with a view to standardize and have an organized presentation of the content published by RIM, we have set the following guidelines for all our journal publications and request your kind cooperation in adhering to the guidelines.

I. Title:

VI. Results

Paper Title

Author(s) Name(s)

E-mail

The main title should be not more than 15 words, centered, and in Times New Roman 14-point, boldface type. The following format must be followed:

III. Introduction

II. Abstract

1.Any research paper for consideration to the MSRIM review must contain the following sections:

IV. Literature Review

VII. Discussion and Analysis

IX. References

The title page must be in the following format:

V. Methodology

Author Affiliation(s)

Guidelines for Paper Submission

Page 70: A Research & Academic Journal of Business Management

The contributions must be original in nature and should neither have been published nor be under consideration for publication anywhere else.

An abstract of not more than 200 words is required.

Authors should submit their articles printed on one side of A4 size paper, having double spacing, and with 12 pt Times Roman Font.

Keywords should be given after abstract.

M.S. Ramaiah Management Review invites full length research papers, brief papers, case studies, short articles on current topics, book reviews. The following are the guidelines :

SUBMISSION INFORMATION FOR AUTHORS

The maximum length of papers in the above format will be as given below :

The cover page should contain the title of the paper, author's name, designation, official address, contact details and an abstract of not more than 200 words.

Reference should be listed at the end of the paper in the order of their appearance in the text and should be cited by using the author's name, year of publication, title of the paper,

Journal name, pp and the reference number (For example:

a) Berry Leonard L, 1986, 'Retail Businesses Are Service Businesses', Journal of Retailing 62 (Spring) 3-6 [1].

b) Kpmg.com2005, consumer market in India - 'The next big thing', September. Accessed on 12th July 2006.

Figures and tables should be numbered consequently and should appear near the text, where they are first cited. The figure should accommodated within two-thirds of A4 size paper. Captions o the figures of the bottom and tables at the top are to be given. Sections and sub-sections heading should start from the left hand margin.

Authors using questionnaire for collections of data for preparing the paper should send a copy of questionnaire along with manuscript.

One soft copy (in MS word format) of the manuscript are to be sent to :[email protected]

The contributions are processed through a blind referral system by experts in the subject areas. To ensure anonymity, the writer's name, designation and other details should appear only on the first page of the manuscript.

Correspondence and proofs for corrections, if required will be sent to first named authors. Unless otherwise indicated, corrected proofs should be returned within 7 days.

Brief Papers 10 pages

Survey or Full Length Papers 20 pages

Book Reviews 4 pages

Case Studies 10 pages

Page 71: A Research & Academic Journal of Business Management

M.S Ramaiah Institute of Management (Post Graduate Centre for Management

Studies & Research) was established in 1995 by Gokula Education Foundation.

Founded by late Dr. M.S. Ramaiah with the purpose of imparting quality

education at all levels, GEF has made commendable progress and stands today

as an institute of excellence in different disciplines. Spread across a sprawling

campus of around 100 acres, GEF is a family of institutions which provides high

quality education in various disciplines.

¡ M S Ramaiah Institute of Technology

M S Ramaiah Medical College ¡

M S Ramaiah Medical Teaching Hospital ¡

M S Ramaiah Institute of Nursing Education & Research ¡

M S Ramaiah Composite Pre-University College ¡

M S Ramaiah College of Arts, Science & Commerce ¡

M S Ramaiah Vidhyaniketan ¡

M S Ramaiah Institute of Management ¡

M S Ramaiah Management Institute ¡

M S Ramaiah Academy of Management ¡

M S Ramaiah College of Law ¡

M S Ramaiah Institute of Physical Medicine & Rehabilitation ¡

P G Course in Nursing [M Sc (N)] ¡

M S Ramaiah Polytechnic ¡

M.S Ramaiah Institute of Oncology ¡

M.S Ramaiah Institute of Cardiology ¡

M.S Ramaiah Institute of Nephro-Urology ¡

M.S. Ramaiah University of Applied Sciences (MSRUAS) ¡

M.S. Ramaiah Dental College ¡

M.S. Ramaiah College of Pharmacy ¡

M.S. Ramaiah College of Hotel Management ¡

M.S. Ramaiah School of Advanced Studies ¡

M.S. Ramaiah Advanced Learning Centre ¡

Gate No-8, General Sciences Building, 'C' Block, MSRIT Post, M S Ramaiah Nagar, MSRIT Campus, Bengaluru - 560 054, Website : www.msrim.in