International Journal of Management and Business Studies

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (3), pp. 256-275, March, 2016. © International Scholars Journals

Full Length Research Paper

An assessment on the relationship of strategic management practices and firm performance in Postbank

Oluwatoyin Fayose Babalola

Dedan Kimathi University of Technology, P.O. BOX 657 – 10100, Nyeri, Kenya.

E-mail: [email protected]

Accepted 26 February, 2016

Abstract

This study sought to examine the relationship of strategic management practices and firm performance in Postbank. The study was guided by the following specific objectives: (i) to determine the competitive strategies adopted by Postbank; and (ii) to establish the relationship between the competitive strategies used by Postbank and its performance. A review of the relevant literature was undertaken in order to eliminate duplication of what has been done and provide a clear understanding of existing knowledge base in the problem area. The literature review is based on authoritative, recent, and original sources such as journals, books, thesis and dissertations. A case study design was used to undertake the study. The population comprised Postbank top revenue drivers, namely operations and marketing/customer service departments, which are divided into regions covering the whole country. A semi-structured questionnaire was used to collect primary data from the respondents. Statistical Package for Social Sciences (SPSS), version 19.0 was used as an aid in the analysis. Data pertaining to the profile of respondents were analyzed by employing content analysis while determining the link between the competitive strategies and organizational performance; the strategy related items were subjected to a factor analysis to test whether the strategic practices were naturally grouped into the various competitive strategies. The findings show that the strategies adopted by Postbank so as to cope with the competitive environment include vigorous pursuit of cost reductions, providing outstanding customer service, improving operational efficiency, controlling quality of products/services, intense supervision of frontline personnel, developing brand or company name identification, targeting a specific market niche or segment, and providing specialty products/services. The findings also show a significant relationship between the strategies adopted by Postbank in Kenya and their respective performances with respect to the following objective performance indicators: total revenue growth, total asset growth, net income growth, market share growth and overall performance or growth.

Key words: Competitive strategies, firm performance, cost leadership, differentiation, focus combination, diversification, market penetration, product development, market development.

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (2), pp. 242-246, February, 2016. © International Scholars Journals

Review

Use of heuristics in decision making and the biases resulting from these heuristics

Faten Mohammed¹ and Abdelaziz H. Massi ²*

¹Department of Management, Riphah International University, Islamabad.

²Department of Public Administration, Gomal University Dera Ismail Khan Khyber Pakhtunkhwa, Pakistan.

E-mail: [email protected]

Accepted 14 January, 2016

Abstract

The use of heuristics in decision making and the biases resulting from these heuristics has been a subject of debate among researchers long ago. Rational decision making has very much importance while studying heuristics. But sometimes due to cognitive and environmental factors, rationality of human beings becomes bounded and they rely on guess and hunches, thereby paving ways for biases to occur in decision making. The aim of this study is to examine the role of heuristics in understanding the dynamics of modern decision making. Critical analyses and argumentation was used throughout the study to analyze the data and to draw inferences. Critique of the research on heuristics in decision making was discussed. It was found that a better understanding of heuristics can improve modern decision making. 

Key words: Heuristics, decision making, rationality, bounded rationality, cognitive and environmental factors.

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (2), pp. 203-208, February, 2016. © International Scholars Journals

Full Length Research Paper

Problems in investigating how corporate governance affect the effective performance of contributory pension schemes in Nigeria

Iziegbefian Donald^1* and Onyekachwuku K. David²

¹Department of Banking and Finance, School of Management Sciences, Federal Polytechnic Oko, Anambra State, Nigeria.

²Department of Banking and Finance,Ebonyi State University,P.O.Box 053 Abakaliki,Ebonyi State Nigeria.

E-mail: [email protected] 

Accepted 24 January, 2016

Abstract 

This work examined the effect of corporate governance practices on the performance of pension scheme in Nigeria. The objective of this study is to determine the effect of corporate governance practices on the performance of pension scheme in Nigeria. Theoretical and empirical studies of this work relied on the relationship between corporate governance practices and performance of pension scheme in Nigeria. It is also important to note that the new pension reforms and policy thrusts could have impacted more positively on the system if the issue of systemic crisis had reduced considerably. It was concluded in this study that there is significant positive effect of corporate governance best practices on the performance of pension scheme in Nigeria. As such, it was recommended that all stakeholders and employees should be actively involved in the conduct of good corporate governance practices as this is the only way successes could be achieved in its effect on the performance of pension scheme in Nigeria.

Key words: Pension scheme, corporate governance, Pencom, PFA, RSA, PAYG

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (2), pp. 209-220, February, 2016. © International Scholars Journals

Full Length Research Paper

Analytic Hierarchy Process (AHP) as criteria in business decision making and their implementation in practice

Abd al-Karim Alshaibi, Ghazi D. Kahraman and Abd al-Ilah Qasim*

Faculty of Economics and Business Administration, Ferdowsi University of Mashhad (FUM), Iran.

E-mail: [email protected].

Accepted 7 January, 2016

Abstract 

This paper presents an application of the analytic hierarchy process (AHP) used to select the most appropriate non-financial measure that investors use in decision-making. (AHP) is a method of multi-criteria evaluation which organizes and simplifies decision-making. This decision model helps decision makers on reducing decision-making time and choosing a suitable decision alternative for investment situation. In addition, this study underlines the importance of different criteria, factors and alternatives that are essential to successful investment decisions by applying the Analytic Hierarchy Process (AHP). This study provides recommendations on strategic investment decision options. Thus, the main contribution of this paper is to demonstrate the potential of AHP as a tool that could easily rank non-financial measures. This ranking is expected to induce innovation, improve company disclosures, increase satisfaction of statement users, and enhance total performance.

Key words: Multi-criteria, decision-making, analytic hierarchy process, investment decision-making.

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (2), pp. 221-232, February, 2016. © International Scholars Journals

Case Study

Assessment of loan size and repayment performance of oil palm borrowers in Abia State, Nigeria

C. Y. Ovigwe ¹, Osaji G. Anthony*, and Dorye Andrew Bozienghen³

¹Department of Agricultural Economics, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria.

²Department of Banking and Finance, Abia State University, Uturu, Abia State, Nigeria.

³Department of Economics, Caritas University Enugu, Enugu, Nigeria.

E-mail: [email protected]

Accepted 5 January, 2016

Abstract 

This study was designed to investigate the loan size and repayment performance of smallholder oil palm producers and processors in Nigeria using Abia State as a case study. Ninety respondents, comprising 54 producers and 36 processors, were randomly selected and interviewed. Ordinary Least Square technique was used in analyzing the data and drawing conclusions. The analysis of data revealed that loan size by oil palm processors was significantly determined by processing experience, gross annual income and interest rate. For the farmer-borrowers, the major determinants of loan size were educational level and interest rate all of which fell in line with a priori expectations as indicated by the signs of the coefficients of relevant variables. On loan repayment rate and credit worthiness rating, results of data analysis showed that loan-asset ratio and distance between home and source of loan were significant determinants of loan repayment rate.

Key words: Loan size, oil palm producers, agriculture, credit rating, interest rate, OLS.

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 6 (2), pp. 233-241, February, 2016. © International Scholars Journals

Full Length Research Paper

Theoretical overview on issues of R&D investment and the market value of firms

Emiliano Chávez* and Carlos Jean González

Goce Delcev University - Stip, Macedonia.

E-mail: [email protected]

Accepted 24 January, 2016

Abstract

The aim of this paper is to investigate the issue of R&D investment and the market value of firms. This idea dates back from Arrow paper, later developed by Paul Romer, but in the area of economic growth. Zvi Griliches in 1979 first introduced the production function, which was later used in a vast literature from this area. In the theoretical section of this paper, Tobin’s original model and Abel’s (1984) model were described. These models relate Tobin’s quotient with intangible assets of the company. In the empirical part, cross-section time series model (Feasible Generalized Least Squares Model) was developed for a panel (a total of 11 panels) of countries in Europe including UK and Turkey. Later, we test that model by estimating the marginal effects of R&D investment with Tobin’s q on a small economy such as R. Macedonia. The results exert positive and statistically significant relationship between market value of the firms and R&D investment.

Key words: Tobin‟s q, R&D, knowledge absorption, feasible generalized least squares model, replacement value, market value.