Publications Volume: 3 | No. 2 | July - December, 2016

Editorial

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Dear Readers,

Once again it’s a pleasure to bring you the latest issue of Sukkur-IBA Journal of Management and Business (SIJMB). Following our editorial policy, this issue contains double blind peer-reviewed articles which address key business, management and economic issues pertaining to both national and international levels. The continued efforts of our editorial team and reviewers have enabled SIJMB to present you the high quality research work based on the innovation, originality and contemporary issues in the core areas, but not limited to business, management and economics. SIJMB follows continuous improvement policy, and I thank all the stakeholders who have been the part of it. Moreover, SIJMB has continued its open access policy in order to reach larger audience and wider dissemination of published work.

While not forgetting that the SIJMB has an institutional association with Sukkur Institute of Business Administration. In fact, the initiation of SIJMB is an outcome of strong research orientation followed by the institute and I am grateful for continuous institutional support in this regard. In addition, the SIJMB 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 The journal has been archived by world’s renowned scientific repositories.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 aims 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.

Dr. Khalid Ahmed
Editor-in-Chief

Impact of Product Mix and Corporate Governance Practices on Earnings Volatility-Evidence from Banking Sector of Pakistan

Natasha Yaqub1

Department of Business Administration, Fatima Jinnah Women University, Pakistan
natasha.raja@hotmail.com

Huma Ayub2

Department of Business Administration, Fatima Jinnah Women University, Pakistan
huma_ayub@fjwu.edu.pk

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The study examines the relationship between product mix and corporate governance on earnings volatility with the help of degree of total leverage (DTL) model. The present study attempts to fill the gap by investigating the relationship between product mix and corporate governance on earnings volatility for developing financial market during the period of 2005-2015. Earnings volatility is analysed by two proxies’ .i.e. revenue volatility and degree of total leverage. This study has used mainly two types of product mix that consists of lending and fee-based activities while board size, board independence and CEO power is used to measure corporate governance. The results of the study signify the adverse impact of fee-based activities on earnings volatility in the banking sector of Pakistan. Corporate governance confirms the board size and power of CEO in the board as contributing factors to control earnings volatility. The findings are useful to the bankers and regulators to comprehend the role of diversification and corporate governance in creating value and reducing risk for the stakeholders.

Keywords: Corporate Governance, Degree of total leverage, Diversification, Earnings Volatility, Product Mix.

The Relationship between Transformational Leadership and Job Performance: An Empirical Investigation

Syed Mir Muhammad Shah1

Sukkur Institute of Business Administration, Pakistan
syedmir@iba-suk.edu.pk

Abdul Halim bin Abdul Majid2

School of Business Management, Universiti Utara Malaysia
ahalim@uum.edu.my

Altaf Hussain Samo3

Sukkur Institute of Business Administration, Pakistan
altaf@iba-suk.edu.pk

Pervaiz Ahmed Memon4

Sukkur Institute of Business Administration, Pakistan
pervaiz@iba-suk.edu.pk

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The main objective of the present paper is to assess the relationship between transformational leadership and job performance empirically. The study was conducted in the banking sector of Pakistan focusing on six large banks. A total number of 308 responses were collected through survey questionnaire from the bank managers. The data was then coded into SPSS for early stage analysis such as data screening. This was followed through applying SmartPLS to analyze the data and the results have been presented in its standard reporting style. The findings revealed a positive relationship between transformational leadership and job performance in banking sector of Pakistan supporting the hypothesized relationship. Finally, the paper has presented a way forward for future research.

Keywords: Transformational Leadership, Job Performance, Banks, Pakistan, SmartPLS.

Financing the Fiscal Deficit in Pakistan: Evidence on Ricardian Equivalence

Neelma Shamsi1

The University of Lahore, Sargodha Campus, Pakistan
neelma_shamsi@yahoo.com

Muhammad Waqas2

UMR-SADAPT Agroparistech, France
m.waqas@uos.edu.pk

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This study investigated the validity of Ricardian equivalence hypothesis in case of Pakistan. Annual time series data from 1978 to 2013 has been used for analysis. Two models have been estimated; structural consumption function and structural saving function. The results of unit root tests explored that all the variables have different order of integration. The results of ARDL co-integration approach verified the existence of a long run relationship among variables for both models. By using OLS, wald test rejects the restrictions on both models and concludes that Pakistan is a non-ricardian economy.

Keywords: Ricardian Equivalence Theory, Budget Deficit, Pakistan.

Determinants of Organizational Performance: A Case of Punjab Police

Hood Laeeq1

Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia
hood.laeeq@hotmail.com

Arfan Shahzad2

Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia

Subramaniam Sri Ramalu3

Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia

Muhammad Fareed4

School of Business and Management, Universiti Utara Malaysia

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In the last three decades, the security issues have been raised in the state of the Punjab (Pakistan) which ultimately leads to the breakdown of the country’s economy. However, the purpose of this paper is to determine the effect of the political interference on the performance of Punjab police (Pakistan) with the moderating role of organizational support. To elicit the findings, a total of 159 survey questionnaires were compiled from station house officers (SHOs) of Punjab police (Pakistan). Furthermore, this study has applied PLS-SEM technique to analyze the data. The findings reveal that a negatively significant effect of political interference on the performance of Punjab police (Pakistan). Moreover, the findings also showed the significant moderating effect of organizational support in the instance of political interference.

Keywords: Pakistan Organizational Performance, Political Interference, Organizational Support, Punjab Police, Pakistan, PLS-SEM.

The Interaction effect of Psychological Contract Breach on the relation between Psychological Capital, Work Engagement and Burnout

Raheela Haque1

Faculty of Business Administration, Sukkur Institute of Business Administration
raheela@iba-suk.edu.pk

Niaz Ahmed Bhutto2

Faculty of Business Administration, Sukkur Institute of Business Administration
niaz@iba-suk.edu.pk

Irshad Hussain Sarki3

Faculty of Business Administration, Sukkur Institute of Business Administration
ih_sarki@iba-suk.edu.pk

Khalil Ahmed Channa4

Faculty of Business Administration, Sukkur Institute of Business Administration
khalilchanna@iba-suk.edu.pk

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This study investigates the impact of psychological capital on employee work engagement & burnout, and the interaction effect of psychological contract breach in between the relationships. Data for the study were collected from doctors (N=306), working in health care units operating in different cities of Pakistan, by using random sampling technique. All of the study hypotheses were tested through structural regression (SR) model by using AMOS. Moreover, Orthogonalization was used to test the interaction effect. As per results, all of the hypothesized relationships were supported.

Keywords: Psychological capital; psychological contract breach; Work engagement; Burnout.

Organization Justice and Organization Citizenship Behaviour: Employee Trust Acting as Mediator

Rezwan Ullah1

Department of Business Administration, Institute of Management Sciences, Peshawar
rezwanullah1990@yahoo.com

Syed Zubair Ahmad2

Member Board, Islamabad Chapter, Association of Certified Fraud Examiners, USA

Sahibzada Yaseen Ahmad3

Department of Management Sciences Bahria University Islamabad

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Justice in the organizations mostly focused on two perspectives, fairness of results and fairness of techniques is used to determine that outcomes and the perspectives were called as distributive justice and procedural justice respectively. The organizational justice covers everything on versatile concept from system of payment to treatment of your boss. Researchers of organizational behaviour recognized four types of organizational justice that is procedural, distributive, interactional and informational justice. Procedural justice perceptions considered to be one of the most crucial variables of organizational justice perceptions. The effect of different level of organizational justice on organizational citizenship behaviour is a widespread researched topic and explains the importance of organizational justice in an organization. The purpose of this quantitative study is to investigate the impact of employee trust on the relationship between organizational justice and organizational citizenship behaviour in the perspective of call centre industry in Pakistan. The sample size covered 160 employees of different call centres of Islamabad. A total of 38 questions were asked based on a 5 point Likert scale responses. For accurate data processing, SPSS Statistics software package is used for statistical analysis. Regression is used to test the hypothesis. The results show that there is a positive relationship between Organizational Justice and OCB (Accepted), there is a positive relationship between Procedural Justice and OCB (Rejected), there is a positive relationship between Distributional Justice and OCB (Accepted), there is a positive relationship between Interactional Justice and OCB (Accepted) and employee trust does not mediate the associations between Organizational Justice and OCB, which is a positive effects on OCB.

Keywords: Organizational citizenship behaviour, Procedural Justice, Distributive Justice, Interactional justice, Employee trust.