Publications Volume-2 | No. 1 | April, 2015

Editorial

Dr. Khalid Ahmed

Editor-in-Chief

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Dear Readers,

I am really excited to bring you the latest issue of Sukkur-IBA Journal of Management and Business (SIJMB). This issue contains double blind peer reviewed articles which address key business, management and economic issues pertaining to both national and international levels. SIJMB adopts all standard that are prerequisite for publishing quality research work. The Editorial Board of the Journal is having academicians and researchers from technologically advanced countries. Their valuable contribution is crucial in maintaining the quality of the Journal. The findings of the published papers are exceptionally important for the both policy formulation and decision making. Hence, various stakeholders can benefit from it. Moreover, the open access policy of the Journal further increases the readership and grant access to wider audience.

The mission statement of Sukkur IBA clearly demonstrates the importance of research. The research that does not only solve and identify the existing problems but also generate new and innovative ideas. SIJMB is a unique effort of Sukkur IBA towards its commitment to create research based community. The journal provides valuable platform for national and international researchers and publishes their research findings and disseminates it to the largest stakeholders. The journal charges no any fees and also provides complimentary copy (in hard form) to each author also the supplement copies of the journal distributed to HEI and R&D institutions of the country. The journal has been archived by world’s renowned scientific repositories. Journal has received recognition from several research agencies, universities and renowned professors. In coming years, the journal aim to improve its current state by attracting more national and international researchers in the field of Business, Management and Economics.

On behalf of the SIJMB, I welcome submissions for the upcoming issues of the journal and looking forward to receive your valuable feedback.

Impact of Industrial Revolution on Management Thought

Ayesha Gulzar1

University of Management and Technology
ayeshagulzar786@gmail.com

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This theoretical paper traces the discourse of Western Civilization from the agrarian period to industrialization, focussing on impact of industrial revolution on the process of management thought. This paper argues that, how management thought has been influenced the era of modernism when industrial revolution spread across the Europe and the United States as during modernity materialistic ethics were developed.

Determinants of Inflation: Evidence from Pakistan using Autoregressive Distributed Lagged Approach

Niaz Hussain Ghumroc

Assistant Professor Sukkur Institute of Business Administration, Pakistan
niaz_ghumro@iba-suk.edu.pk

Pervaiz A. Memon2

Assistant Professor Sukkur Institute of Business Administration

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Controlling inflation is one of the biggest challenges faced by the macroeconomic policymakers in Pakistan. This research article is aimed at highlighting the main sources of inflation in the economy of Pakistan using an autoregressive distributed lag model for the period from 1980 to 2012. Findings of this study reveal that the one percent rise in the long run money supply, exchange rate, total reserve, and the gross national expenditure change inflation by 0.16, 2.12, 0.36, and 1.78 percent points respectively. The Error Correction model with negative sign remains statistically significant with approximate 81% speed of adjustment to restore the equilibrium in the long run, which shows the quick convergence.

Consumer Purchase Intentions Affected by Cause-Related-Marketing, Skepticism and Brand Loyalty: A Correlational Analysis

Fozia Rehmatc

Student of MS Marketing at Institute of Business and Management University of Engineering and Technology, Lahore Pakistan
foziarehmat@hotmail.com

Tanzeela Farsam2

Student of MS Marketing at Institute of Business and Management, University of Engineering and Technology, Lahore Pakistan

Muhammad Shabbir Ahmad3

Student of MS at Institute of Business and Management University of Engineering and Technology, Lahore Pakistan

Syyed Irfan Raza Naqvi4

Student of MS Marketing at Institute of Business and Management University of Engineering and Technology, Lahore Pakistan

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Cause-Related-Marketing is an emerging strategy which is used to affect purchase intentions of a customer in a very positive way. Purchase intentions may braced by the brand loyalty which can be an outcome of the cause related efforts of marketing. But most of the companies ignore its impact towards skepticism. In this co-relational research, relationship between Cause Related Marketing and purchase intentions have been measured, whereas brand loyalty and skepticism played their role as intervening variables and their effect and nature of relationships are also being measured in this research. Data was gathered from different universities and organizations. Statistical analysis showed a positive relation between Cause Related Marketing, skepticism and brand loyalty. Further impact of both of these Intervening variables was administered on purchase intentions and it demonstrated that relationship between skepticism and purchase intentions was negative and very strong as compared to the positive correlation of brand loyalty and purchase intentions. Regression analysis also revealed very important information. In this research future research directions have also been discussed. This work is significant as achieved results can be helpful for the companies and theoretically it’s important as this research filled a gap by studying the important variables together which have been subjects to much of discussion in Pakistan.

What Determines Balance of Payments: A Case of Pakistan

Syeda Azra Batoolc

Bahauddin Zakariya University, Multan Pakistan
azrabatools@yahoo.com

Tahir Memood2

University of Punjab, Lahore Pakistan

Atif Khan Jadoon3

University of Punjab, Lahore Pakistan

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Distortion in balance of payments is one of the dominant causes for the sluggish economic condition of Pakistan. The present article has focused to scrutinize the relationship of the balance of payments to its certain determinants that are actually blamable or not for its distortion. The robust ARDL structure has been utilized to develop the bound testing approach to co-integration and error correction models on data set for 1972-2013.The bound test declares that there exists stable long run relationship of balance of payments to its determinants. The upshots indicate that real exchange rate inversely influences the balance of payments not only in the long run but also in the short run. Interest rate inversely affects the balance of payment in the long run but positively affects in the short run .Fiscal balance affects the BOP negatively in the long and short run simultaneously. As regards the real GDP, it moves the BOP in the positive direction in both long and short run. The money supply cast positive influence on the BOP in the short run but negative effect in the long run. So the need of the hour is that the real GDP of Pakistan should be increased by the deliberate policy of the government. Because it is the GDP that can increase our savings consumption and government expenditures and exports and can improve balance of balance of payment.

Twin Deficit Hypothesis: A Case of Pakistan

Farrah Yasminc

The Women University, Multan Pakistan
farraheconomist@gmail.com

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The prime motive of this study is to scrutinize the twin deficit for annual time series data over the period 1990-2010 for Pakistan. Twin deficit hypothesis expressed that an expansion in budget deficit will ground for rise in current account deficit. To diagnose affiliation amongst couple of variables, applied Unit root test (ADF-test), Johansen cointegration technique, Impulse response function and Granger causality test. The Granger causality demonstrate that the causality direction travel from current account deficit to budget deficit. When current account deficit occurs it leads to budget deficit. So the finding proves that there is a positive connection among both variables. Investigations are most reliable for Pakistan economy. Finally, this study confirms the rapport amid current account deficit and budget deficit.

Failure of Brand Intoxication with the Mediating Effect of Ad Skepticism

Rafique Ahmed Khuhroc

PhD. Scholar, Department of Business Administration, Sukkur IBA, Sukkur-65200, Sindh Pakistan
rafique.khuro@iba-suk.edu.pk

Niaz Ahmed Bhutto2

Professor, Department of Business Administration, Sukkur IBA, Sukkur-65200, Sindh Pakistan

Irshad Hussain Sarki3

PhD. Scholar, Department of Business Administration, Sukkur IBA, Sukkur-65200, Sindh Pakistan

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Brands still have not intoxicated the all segments of customers, yet there are people who have motivations to escape from brand. This study explores the mediating role of ad skepticism between self-image congruency, product knowledge and brand escapism motivation. The other purpose is to see the direct relation of product knowledge and self-image congruency on brand escapism motivation. A Study of 267mobile phone users is conducted, who use iconic and less iconic mobile phone brands. Proposed relationships were empirically tested through SPSS and SPSS Macro for Multiple Mediation. People in Pakistan consider mobile phone brands as their social status, due to this their beliefs and disbeliefs about advertising and motivation in brand escapism are helpful to understand. Pakistan is a developing country, consumers are not so much brand conscious and do not pay attention to advertising issues like developed countries. Because of this mediating effect of ad skepticism is not supported. The results support the effects of self-image congruence and product knowledge on the brand escapism motivation but not on the ad skepticism.