Is IT Industry Productive: A Performance Based Investigation of IT Sector Firms Operating in Pakistan

Transcription

1 Inernaional Journal of Business and Managemen May, 2009 Is IT Indusry Producive: A Performance Based Invesigaion of IT Secor Firms Operaing in Pakisan Muhammad Ali Tirmizi (Corresponding auhor) Foundaion Universiy Insiue of Engineering and Managemen Sciences (FUIEMS) New Lalazar, Rawalpind Pakisan (pos code: 46000) Tel: m5aliahir@gmail.com S. Muahir Hussain Shah Cenre for Advance Sudies in Engineering (CASE) Universiy of Engineering and Technologies, Islamabad, Pakisan Tel: muahir5@homail.com Absrac This paper invesigaes he effec of eleven independen variables as subses of Employee Orienaion, Environmen and Organizaional Sysem, on he overall performance of he IT secor firms, operaing in he area of Islamabad, Pakisan. Variables are invesigaed by argeing a sample of 15 leading IT secor firms. A oal of 225 quesionnaires were disribued. The Cronbach s Alpha for he quesionnaire resuled in a score of Exensive analysis afer he applicaion of muliple regression analysis revealed ha, here is an overall average level of relaionship beween he variables considered. IT secor has shown remendous progress. Keywords: Organizaional performance, Employee orienaion, Environmen, Organizaional sysem, Indusry 1. Inroducion Produciviy of he organizaions operaing in he indusry usually defines he overall performance of he indusry in rue leer and spri. Researchers have comprehensively evaluaed and analyzed he subjec of produciviy in erms of performance relaed o operaions of he firms wihin he concerned indusries. The definiion of produciviy in he conex of our sudy is usually defined as a performance measure ha indicaes how effecively an organizaion convers is resources ino is desired producs or services. I is a relaive measure and i is used o compare he effeciveness of a counry, organizaion, deparmen, worksaion or individual over a cerain ime period (Inerne, Answers Search Engine, 02nd, Sepember 2007). Produciviy is generally measured by he raio of inpus o oupus produced efficienly and effecively wih in he given imeframe where, facors affecing produciviy may range from caegories like; produc, process, labor force, capaciy, exernal influences, o qualiy, bu his sudy encompasses a differen angle of performance evaluaion of IT secor firms operaing in Pakisan. Here he main objecive is o invesigae he rue associaion of facors aken as independen variables wih he dependen variable which are furher explained in deail in his sudy. These facors are associaed wih hree broad caegories which are; employee orienaion, Indusrial environmen and organizaional sysem, which are considered as he pillars on which performance of an organizaion can be measured and once he performance of a significan number of firms from he seleced sample are recorded, he overall performance in erms of produciviy of he IT indusry can be esimaed and compared wih he published growh saisics by an auhenicaed publishing source in he counry. The focus of his research sudy is he Informaion Technology Indusry of Pakisan. In Pakisan he IT indusry is comparaively new and iniiaed is operaions bi lae as compared o her neighboring counry India, which is said o be 15 years ahead of us. In spie of his laency he IT indusry of Pakisan has progressed a a remarkable pace. These days IT indusry is one of he mos progressing and dynamic secors in he counry. Almos all he leading world IT companies have heir branches in Pakisan and his shows he srengh of IT indusry in Pakisan. According o he saisics presened in Pakisan Sofware Expor Board, press release, 3rd may (2007), showed ha, in IT indusry of Pakisan he revenue growh is 30 o 40 percen per year for he las couple of years and he oal IT 207

2 Vol. 4, No. 5 Inernaional Journal of Business and Managemen indusry revenues crossed USD 2 billion in fiscal year ( ) whereas, oal expors crossed USD 1 billion. This growh of IT indusry expors in he las hree years was around 50 percen, while he domesic marke has grown a 33 percen per annum. The global IT companies like NCR, IBM, Oracle, Hyundai IT, and Halliburon are operaing for Souh Asia and Middle Eas from Pakisan. Hundreds of millions of qualiy sofware is being developed and over 60 housand professionals are employed in his indusry. Recen publicaions in he counry confirms ha Pakisan is now on he world IT map and he overall size of IT indusry is on he pah of expansion. 2. Raionale of he sudy The numerical figures and daa saed above moivaed us o iniiae a sudy which evaluaes and analyzes he produciviy of IT indusry based on performance of individual IT firms. We also wan o invesigae ha, up o wha exen an individual IT firm is conribuing o he overall growh of he IT indusry of Pakisan?. In-order o accomplish his ask, eleven facors represening hree main areas for performance evaluaion are aken as independen variables which are; Organizaional Commimen and Espri de Corps as facors of Employee Orienaion; Markeing Turbulence, Compeiive Inensiy, Technology Turbulence, and Marke Dynamics as facors of Environmen; Formalizaion, Cenralizaion, Deparmenalizaion, and Rewards as facors of Organizaional Sysem. The dependen variable in his sudy is Organizaional Performance. This sudy basically arges he companies operaing in he IT indusry in he geographical area of Islamabad, he capial of Pakisan. This sudy will definiely be a value addiion o he knowledge base and will be beneficial for he academic insiuions, research organizaions, individual researchers, echnocras and indusrial analyss in Pakisan and abroad, who wan o improve heir undersanding regarding performance of Informaion Technology Indusry of Pakisan. 3. Purpose of he sudy The purpose of he paper is o es he associaion developed in he quesion saed below and also o es he formulaed hypohesis: Wha is he level of associaion of he independen variables ha are; Organizaional Commimen, Espri de Corps, Markeing Turbulence, Compeiive Inensiy, Technology Turbulence, Marke Dynamics, Formalizaion, Cenralizaion, Deparmenalizaion, and Rewards wih he dependen variable ha is; Organizaional Performance of IT secor firms operaing in Islamabad, Pakisan? 4. Lieraure review 4.1 Organizaional Produciviy and Performance The sudy of Vonoras and Auger (2002) found ha he firm s produciviy ulimaely defines he overall performance of he indusry in which hey operae. They also saed ha marke share of any firm also predics is performance in he indusry. There is considerable evidence available from he previous researches, which indicaes ha high performance human resource pracices are associaed wih organizaional performance as i was found by Wrigh, Gardner, Moynihan and Allen (2005); Barel (2004); Appelbaum e al. (2000); Bae and Lawler (2000); Ba (2002); Guhrie (2001); Huselid (1995); MacDuffie (1995) and Arhur (1994). 4.2 Organizaional Commimen In he sudy of Fey and Bjorkman (2001) and Kling (1995) i is menioned ha wih he involvemen of more employees under he concep of empowermen and decenralizaion, where employees can easily perform he operaional decision making, can subsanially conribue o he organizaional performance. In muliple sudies and books, i is menioned and emphasized ha a proper work srucure of he organizaions, where employees perform heir asks, have a posiive impac on he performance of he organizaion. This saemen indicaes ha organizaional commimen will be greaer in hose employees who find working environmen comforable and conducive, and his phenomenon will ulimaely enhance he organizaional produciviy. Kelley (1993) saed ha organizaional commimen generally ranslaed ino organizaional goals and values. For example if a manager of an organizaion feels more commied o he organizaion and acceps he values and objecives assigned by he organizaion will evenually pu his maximum effors for he well being of he organizaion as saed by Locke and Laham (1990); Koher and Heske (1992). In muliple sudies, organizaional commimen was found posiively associaed wih employee performance and i is obvious ha when an employee performs well on his job, is organizaional performance also increases as saed by Brown and Peerson, (1993); Singh e al. (1996) and Parker e al. (2003). 4.3 Espiri de Corps The field sudy of Banker and Field s (1996) repored ha he effec of work eams on he organizaional manufacuring performance, where he effec of work eams is also pronounced as Espiri de Corps, resulan of devoion and commimen of eam members, has enhanced he qualiy and labor produciviy in he organizaion. 208

3 Inernaional Journal of Business and Managemen May, Marke Turbulence Marke urbulence is he rae of change in he composiion of cusomers and heir preferences repored in he sudy of Jaworski and Kohli (1993). If he marke is urbulen hen he preferences of he cusomer changes frequenly whereas in he sable marke he preferences of cusomers show lile flucuaions overime. So, organizaional performance needs o be adjused as according o he marke urbulence and dynamics. 4.5 Compeiive Inensiy The effec of marke s environmen on an organizaion as saed in he previous researches is ofen used as an independen variable o predic he organizaional performance as found and saed by Cooper (1993), Cooper and Gimeno Gascon (1992) and Keeley and Roure (1990). Jaworshi and Kohli (1993) found ha he organizaions ha face less compeiion or operae in low compeiive or inense environmen may ge success because in his case cusomers have no oher choice oher han demanding he curren firm s produc or service. The research of Appiah-Adu and Singh (1998) found ha he firms ha usually operae in urbulen markes provide promp informaion o heir cusomers and compeiors in-order o reduce he facor of uncerainy. Compeiive inensiy as repored by Joworski and Kohli (1993) is a condiion of high compeiion, where here are muliple opions available o cusomers in he marke o fulfill heir demands, which deermine ha, in an inense compeiive environmen an organizaion can loose is business. Thus, evidence shows ha, compeiive inensiy has a srong impac on he performance of he business. 4.6 Technological Turbulence The sudy of Jaworski & Kohli (1993) found an inverse relaionship beween echnological urbulence and organizaional performance. Benne and Cooper (1981), Houson (1986), Kaldor (1971) and Tauber (1974) repored ha he compeiive advanage of an organizaion is associaed wih he fac ha how fas an organizaion changes iself wih he changing echnological orienaion of he indusrial environmen, because an obsolee echnology can no benefi an organizaion and fulfill he changing demands of he cusomers, who are dependen on he sae of he ar echnologically manufacured producs. 4.7 Marke Dynamics Muller, Waler and Gemuenden (2001) found ha he marke dynamics is associaed wih he shor span of produc life in marke due o he high innovaiveness of he compeiion relaed o sofware producs. Gray e al. (1998) repored ha marke environmen also has a grea impac if i is aken as moderaing variable in he sudy. 4.8 Governmen Policies I is observed as well as repored by researchers ha, if he governmenal policies are in favor of he organizaion in paricular and indusry in general he overall performance of he organizaion on individual level and indusry on collecive level improves. 4.9 Formalizaion Formalizaion is a cenral dimension of decision making srucure as repored by Argouslidis and Balas (2007). There are hree basic dimensions of he organizaional research which are specializaion, formalizaion and cenralizaion. Hall, Hans and Johnsons (1967) repored ha, formalizaion represens he degree o which rules define roles, auhoriy relaions, communicaions, norms and sancions and procedures. So, formalizaion has srong ies wih he organizaional performance Cenralizaion Hage and Aiken (1970) found ha he cenralizaion refers o he inverse of he amoun of delegaion of decision-making auhoriy hroughou an organizaion and he exen of paricipaion by organizaional members in decision making. In he sudy of Pugh, Hickson, Hinings and Turner (1969) i is repored ha he cenralizaion deermines he inensiy up o which he power regarding decision making is confirmed o he upper hierarchy of organizaional managemen, in which auonomy, locus of conrol and auhoriy delegaed are considered as adminisraive ools. Arhur (1994) evaluaed hiry mini-mills on he basis of produciviy and found ha when he auhoriy is decenralized, he urnover was reduced among he employees, hus, enhanced he organizaional commimen and resuled in increased organizaional performance Reward Sysem The observaions of Delery and Doy (1996) prediced ha when an organizaion provides job securiy and rewards o is employees, i resuls in long-erm commimen of he employees wih he organizaion which will ulimaely compel hem o pu-in heir bes o increase organizaional performance. Lawler (1990) found ha he corporae reward sraegy should be adoped by he organizaions ha will cerainly help hem o leap ahead of heir compeiors in he marke and also a he same ime provide hem a compeiive advanage. 209

4 Vol. 4, No. 5 Inernaional Journal of Business and Managemen 4.12 Deparmenalizaion Jaworski and Kohli (1993) found ha he Deparmenalizaion basically refers o he numbers of deparmens ino which organizaional aciviies are segregaed and comparmenalized. (See figure-1) 4.13 Mahemaical Model The diagrammaical research model shown in figure-1 is wrien in a mahemaical form below: OrgPer OrgCom TechTub Re wsys EsDec MaDyn 6 2 MarTub GovPol 7 3 CompIn Form 8 4 Cenz 9 In above mahemaical model, (i) represens he firm having a cerain level of performance a a paricular ime. So, organizaional performance is he funcion of x having ( > 0) and (i approaches o n number of firms) o be evaluaed regarding heir level of performance. Thus, he sum of predicors in above mahemaical equaion can be wrien as follows: Ind Pr od n, f x n, OrgPerf 0 n i 1 OrgCom EsDec 1 2 MarTub CompIn 3 4 TechTub MaDyn 5 6 GovPol Form 7 8 (where, > 0) Cenz Re wsys 9 10 The equaion menioned above represens he sum of variables conribuing o he indusrial produciviy where i ranges from (1 o n) number of firms operaing in he indusry. Now, he above equaion can be wrien as: f x Facors of Employee Orienaion n n, OrgPerf Facors of Organizaional Environmen 0 i 1 Facors of Organizaional Sysem The above wrien equaion represens ha he funcion of x is equal o he sum of he facors of employee orienaion, organizaional environmen and organizaional sysem sigma o he organizaional performance of he firms ranging from (1 o n) operaing in he indusry plus consan and model errors. The inerpreaions of he above mahemaical equaion are given in he able 1. (See able-1) 5. Hypohesis Developmen The hypoheses formulaed afer review of he lieraure are given below: Hypohesis - 1: There is srong relaionship beween (organizaional commimen) high performance human resource pracices and organizaional performance. Hypohesis - 2: Espiri de Corps has a srong relaionship wih he qualiy and labor produciviy in he organizaion. Hypohesis - 3: There is an inverse (negaive) relaionship beween marke urbulence and organizaional performance. Hypohesis - 4: Compeiive inensiy has an inverse (negaive) relaionship wih he performance of he business. Hypohesis - 5: There is an inverse (negaive) relaionship beween echnological urbulence and organizaional performance. Hypohesis - 6: The marke dynamics is inversely (negaive) associaed wih he organizaional performance due o he high innovaiveness of he compeiion relaed o sofware producs. Hypohesis - 7: There is srong relaionship beween governmen policies and organizaional performance. Hypohesis - 8: There is srong relaionship beween formalizaion and organizaional performance. 210

5 Inernaional Journal of Business and Managemen May, 2009 Hypohesis - 9: There is an inverse (negaive) relaionship beween cenralizaion and organizaional performance. Hypohesis - 10: here is srong relaionship beween reward sysem of employees and organizaional performance. The esing of he hypoheses is confined o he primary daa colleced from he area of Islamabad. 6. Mehodology 6.1 Sample The sample is drawn from he oal number of employees working in he IT secor firms operaing in Islamabad, Pakisan, in a non-conrived environmen. We have seleced fifeen leading IT secor firms [i.e, ZTE, Moorola, Teraligh, Benley, Averox, IBM, Falcon, Nesol, Norel, CISCO, Askari Informaion Sysems (AIS), Pakisan Sofware Expor Board (PSEB), DPS, Pakisan Revenue Auomaion Limied (PRAL), LMKR] from which respondens where pooled up in he sample. Each organizaion was given 15 quesionnaires which resuled in a oal of 225 quesionnaires. A convenien sampling echnique (non-probabiliy sampling mehod) was adoped o ap he responses from he respondens. A oal of 142 employees of IT secor firms responded and reurned he compleely filled quesionnaires, for which he response rae resuled ino a score of 63 percen. 6.2 Insrumenaion The insrumen used o collec daa from he subjecs was a quesionnaire having differen sub-pars. The insrumen was basically comprised of hree pars in which quesions were disribued regarding, employee orienaion, environmenal componen, organizaional sysem, and organizaional performance. The sub-pars of he hree major pars incorporaed in he quesionnaire were adoped from differen previous sudies; Par 1 (Organizaional Commimen, Espiri de Corps), Par 2 Marke Turbulence, Compeiive Inensiy, Technological Turbulence), Par 3 (Formalizaion, Cenralizaion, Deparmenalizaion, Reward Sysems) and Par 4 (Organizaional/ firm Performance, quesion 1 & 2) are adoped from he sudy of Jaworski & Kohli (1993). Par 2 (Marke dynamics) and Par 4 (Organizaional/ Company Performance, quesions 3 o 7) are adoped from he sudy of Mueller, Waler & Gemuenden (2001). Afer collecing 142 responses he reliabiliy of he insrumen was checked by he help of Saisical Package for Social Sciences which resuled in a Cronbach s Alpha score of , which confirmed he reliabiliy of he insrumen. All he iems of he quesionnaire were designed on five poin scale ranging from (Srongly Disagree as 1 o Srongly Agree as 5 ) (see annexure). 6.3 Procedure The daa collecion was done by means of well developed, adoped quesionnaire having four pars. This quesionnaire was furher arranged according o he needs of he curren sudy. All of he quesionnaires were disribued among he respondens in he area of Islamabad personally by he researchers. The daa was colleced in he ime frame of 55 days and hen responses were fed ino he Saisical Package for Social Sciences (SPSS) for analysis and evaluaion. Muliple regression analysis was used as a saisical es o deermine he degree of relaionship/associaion beween he variables involved in his sudy. 7. Resuls The Table 2 explains ha he probabiliy of F saisics is for he overall regression analysis (p>0.001), (p>0.05). The un-sandardized coefficiens (bea for IV-2, IV-4, IV-6 & IV-9 are negaive) show ha, hey have inverse relaionship wih oher independen variables of he sudy. The (p > 0.05 for IV-10, IV-1 & IV-7) shows ha, hey are he major conribuors in he overall srengh of he relaionship among he independen and dependen variables considered in his sudy. (See able 2) The significance values for (IV-2, IV-3, IV-4, IV-5, IV-6, IV-8, IV-9) is (p>0.05) which shows ha hese independen variables have no significance relaionship wih he dependen variable, whereas, resul of (p<0.05) for (IV-1, IV-7, IV-10) shows ha hese independen variables have a significance relaionship wih he dependen variable. The value of R-square shows ha, here is an average level of relaionship in he overall models of independen variables wih he dependen variable. The esing of hypoheses developed earlier revealed he following resuls afer which he mahemaical model of his research has been modified: Ind Pr od n, f x n, OrgPerf 0 n i 1 OrgCom 1 MarTub 3 TechTub 5 GovPol 7 Cenz 9 EsDec 2 CompIn 4 MaDyn 6 Form 8 Re wsys 10 (where, > 0) 211

6 Vol. 4, No. 5 Inernaional Journal of Business and Managemen The above modificaion of he mahemaical model is done afer he analysis which shows ha funcion of x represening he indusrial produciviy, has srong associaion wih he organizaional commimen, governmenal policies and reward sysem of he employees. Res of he variables in he model have weak associaion wih he organizaional performance and hus considered as weak predicors of he indusrial produciviy. 8. Discussion I is eviden from he resuls as prediced by he figures illusraed in he able 2 ha, organizaional commimen has a srong relaionship wih he organizaional performance as i is suppored by he muliple sudies of: Brown and Peerson (1993); Singh e al. (1996); Parker e al. (2003). I is rue because in IT secor of Pakisan, firms have a good salary srucure which is generally a facor which reains he young professionals in hese IT firms. The (p<0.05) for he independen variable for governmen policies which is also an undersood case, because a favorable policy devised by governmen always brings improvemen in he performance of he indusry and i is eviden from he curren improvemens in he policy srucure regarding doing business in Pakisan by he governmen and also inroduced muliple sraegies and procedures clearly saed in he Medium Term Developmen Framework (MTDF) ( ) road map o enhance he capaciy of domesic indusries as well as o arac FDIs. The hird case in which (p<0.05) is of reward sysem which can be suppored by he evidence from he sudy of Delery and Doy (1996) in which hey repored a posiive associaion of rewards sysem wih he performance of he organizaion. In Pakisan, he IT secor always rewards medals and cerificaes o is employees on heir performances. I is no resriced o he firms bu he former Miniser for Informaion Technology, Mr. Owais Ahmed Lagari had also given achievemen of excellence awards o he bes performers on yearly basis in he IT indusry of Pakisan. This culure of rewarding bes IT people is sill presen in he indusry. The (p>0.05) for he independen variables which are, Espri de Corps, Markeing Turbulence, Compeiive Inensiy, Technology Turbulence, and Marke Dynamics, Formalizaion and Cenralizaion. Here, we can generally suppor his resul wih he argumen ha, he IT indusry of Pakisan is relaively new indusry wih around years of enure, where firms are developing a a fas pace. In-addiion, he las fiscal year s revenue also prediced he high performance of he IT indusry and i is obvious ha individual firms are also on he pah of growh and prosperiy. These associaions and confirmaion of null hypohesis also explains ha in IT indusry of Pakisan, if sofware marke is urbulen, compeiive and dynamic he performance level of each firm operaing in he indusry will be affeced. We found ha produciviy is enhanced in hose firms which have well organized deparmens led by an experienced and professional deparmen head. Globalizaion along wih is dynamics and challenges has a srong impac on he echnology being used by he firms across he world. So, as world advances in ime, echnology being used by he firms ges obsolee. This obsolescence facor of echnology resuled in he adapaion of new sae of he ar echnology o mee and exceed he needs of he cusomers and creaed compeiive advanage for he organizaion. In our sudy echnological urbulence resuled in direc relaionship wih he performance of he firms operaing in he IT secor of Pakisan and his resul is no concurren wih he hypohesized saemen. The firms sudied have cenralized srucure which was eviden from he all hierarchy of hese firms. I can be suppored by he fac ha majoriy of he organizaions in Pakisan have cenralized sysem of operaions and all decisions are direced from op o boom. So, similar is he case wih he firms seleced for his paper. Insead of a srong cenralized organizaional srucure, we found non-formalized working environmen in hese firms. Espri de Corps, ranslaed as eamwork is no so popular in companies operaing in Pakisan as managers and employees pursue heir individual assignmens as par of he projec assigned o hem. This basically resuled in an inverse associaion of Espri de Corps wih he organizaional performance in he IT secor firms of Pakisan. 9. Conclusion This research encompasses an in-deph analysis of he associaion of he independen variables wih he dependen variable. The resuls and analysis from SPSS confirmed ha organizaional commimen, governmenal policies and reward sysems have a srong associaion, where as Espri de Corps, Markeing Turbulence, Compeiive Inensiy, Technology Turbulence, and Marke Dynamics, Formalizaion and Cenralizaion have negaive associaion wih he organizaional performance as in his case we have rejeced he alernae hypohesis developed afer he lieraure review. In he culure of Pakisan where economy is growing a GDP rae of 7.0 percen per annum, old firms are growing, and new are emerging as well as enering in o he indusries of muliple disciplines operaing in Pakisan. Similar is he case of Informaion Technology indusry where firms are growing and expanding heir businesses. The curren poliical sabiliy and good economic indicaors have given confidence o he local as well as foreign invesors o indulge in business aciviies in Pakisan wihou any hindrance. Bu, being a young IT indusry, he firms have o face cerain challenges and his facor changed he responses, and alered some of he associaions in he sudy. The findings of he 212

7 Inernaional Journal of Business and Managemen May, 2009 sudy as assessed afer he applicaion of muliple regression analysis elucidaed he fac ha here exiss an average level of associaion among he variables considered in he curren sudy. Thus, we are confiden ha he overall performance of he IT secor of Pakisan is saisfacory and he indusry is producive. There is a room for improvemen in his secor which can be achieved by enhancing he produciviy of he IT firms by greaer emphasis on issues regarding human capial, up-gradaion of exising infrasrucure, consan up-gradaion of he exising echnology and equipmen as well as close coordinaion of all sakeholder o uplif his indusry, so ha i can become one of he leading sofware exporing indusry of he Asian region. 10. Furher research There is a need o uilize ools oher han we have adoped like; produciviy raios for Toal Facor Produciviy o assess he overall produciviy of he IT secor firms as well as he indusry. The lis of conceps used in his research can be exended o ge insigh ino oher facors of produciviy in which infrasrucure, echnology and qualiy can be used as variables. The performance of firms operaing across Pakisan especially in he ciies of Lahore and Karach (among he major meropolians of Pakisan) can also be apped o expose useful informaion regarding imporan facors of produciviy, in-order o undersand he complee picure of Informaion Technology indusry of Pakisan. References Appelbaum, E., Bailey, T., Berg, P., and Kalleberg, A. (2000). Manufacuring advanage: Why high-performance work sysems pay off, Ihaca, NY: ILR Press, USA. Appiah-Adu, Kwaku; Singh and Sayendra, (1998). Cusomer orienaion and performance: a sudy of SMEs. Managemen Decision, 36 (6), Argouslidis, Paraskevas and Balas, George. (2007). Srucure in produc line managemen: The role of formalizaion in service eliminaion decisions. Journal of he Academy of Markeing Science, 35 (4), Arhur, J. (1994). Effecs of human resource sysems on manufacuring performance and urnover. Academy of Managemen Journal, 37: Bae, J., & Lawler, J. J. (2000). Organizaional and HRM sraegies in Korea: Impac on firm performance in an emerging economy. Academy of Managemen Journal, 43: Banker, R.D. and Field, J.M. (1996). Impac of Work Teams on Manufacuring Performance: A Longiudinal Field Sudy. Academy of Managemen Journal, 39(4): Barel, A. P. (2004). Human resource managemen and organizaional performance: Evidence from reail banking. Indusrial and Labor Relaions Review, 57: Ba, R. (2002). Managing cusomer services: Human resource pracices, qui raes, and sales growh. Academy of Managemen Journal, 45: Benne, Roger and Rober Cooper. (1981). Beyond he Markeing Concep, Business Horizons, 22 (June), Brown SP, Peerson RA. (1993). Anecedens and consequences of salesperson job-saisfacion mea-analysis and assessmen of causal effecs. Journal of Markeing Research, 30: Cooper, Arnold C. (1993). Challenges in Predicing New Firm Performance. Journal of Business Venuring, 8, Cooper, Arnold C.; Gimeno Gascón, F. Javier. (1992). Enrepreneurs, processes of founding, and new firm performance, Sexon, Donald L.; Kasarda, John D. (eds.): The Sae of he Ar of Enrepreneurship, Delery, J. E., & Doy, H. D. (1996). Modes of heorizing in sraegic human resources managemen: Tes of universalisic, coningency, and configuraional performance predicions. Academy of Managemen Journal, (39), Fey, C.F. and Bjorkman, I. (2001). The Effec of Human Resource Managemen Pracices on MNC Subsidiary Performance in Russia. Journal of Inernaional Business Sudies, 32(1): Fey, C.F. and Bjorkman, I. (2001). The Effec of Human Resource Managemen Pracices on MNC Subsidiary Performance in Russia. Journal of Inernaional Business Sudies, 32(1): Gray, Brendan, Maear, Sheelagh, Boshoff, Chriso, Maheson and Phil. (1998). Developing a beer measure of marke orienaion. European Journal of Markeing, (32), Guhrie, J. P. (2001). High involvemen work pracices, urnover and produciviy: Evidence from New Zealand. Academy of Managemen Journal, (44), Hage, Jerald and Michael. Aiken. (1970). Social Change in Complex Organizaions, (New York), USA. Hall, Richard; J Eugene Hans, and Norman. J. Johnson. (1967). Organizaional Size, Complexiy and Formalizaion. 213

8 Vol. 4, No. 5 Inernaional Journal of Business and Managemen American Sociological Review, 32, 6 (December 1967), pp Houson, Franklin S. (1986). The Markeing Concep: Wha I Is Wha I Is No. Journal of Markeing, 50 (April), Huselid, M. A. (1995). The impac of human resource managemen pracices on urnover, produciviy, and corporae financial performance. Academy of Managemen Journal, (38), Inerne definiion of produciviy. [Online]: Rerieved, Ocober 30, 2007, from hp://sraegis.ic.gc.ca/sc_innov/produciviy/engdoc/prod_quesions.hml. Jaworsk B. J & Kohl A. K. (1993). Marke Orienaion: Anecedens and Consequences. Journal of Markeing, Vol. 57, Kaldor, A. G. (1971). Imbricaive Markeing, Journal of Markeing, 35 (April), Keeley, Rober H.; Roure, Juan B. (1990). Managemen, Sraegy, and Indusry Srucure as Influences on he Success of New Firms: A Srucural Model, Managemen Science, 36 (10), Kelley SW. (1993). Discreion and he service employee, Journal of Reailing, (69), Kling, J. (1995). High Performance Work Sysems and Firm Performance, Monhly Labor Review, 118(5): Koer JP, Heske JL. (1992). Corporae Culure and Performance, The Free Press: New York. Locke EA, Laham GP (1990). Work moivaion: he high performance cycle. In: Work Moivaion (UEA Kleinbeck), pp Erlbaum Associaes: Hillsdale, New Jersey, USA. Lawler, Edward. E. (1990). Sraegic Pay: Aligning Organizaional Sraegies and Pay Sysems, San Francisco, USA. Locke EA, Laham G. P. (1990). Work moivaion: he high performance cycle. In Work Moivaion, (ed., UEA Kleinbeck), pp Erlbaum Associaes: Hillsdale, New Jersey, USA. MacDuffie, J. P. (1995). Human resource bundles and manufacuring performance, Indusrial and Labor Relaions Review, (48), Mueller, T. A; Waler, A. & Gemuenden, H. G. (2001). The Impac of Cusomer Orienaion and Compeior Orienaion on Organizaional Performance of New Sofware Venures, IMP-2001, Compeiive, Deparmen of Technology and Innovaion Managemen, Technical Universiy of Berlin, Germany. Pakisan Sofware Board press release, Pakisan IT Revenue Crossed USD 2 billion daed 3 rd May, 2007, rerieved, Ocober 31, 2007, from hp:// Parker CP, Bales BB, Young SA, Huff JW, Almann RA, e al. (2003). Relaionships beween psychological climae percepions and work oucomes: a mea-analyic review, Journal of Organizaional Behavior, (24), Pugh, D. S., Hickson, D. J., Hinings, C. R., & Turner, C. (1969). The conex of organizaion srucures, Adminisraive Science Quarerly, 14, Singh J, Verbeke W, Rhoads GK. (1996). Do organizaional pracices maer in role sress processes? A sudy of direc and moderaing effecs for markeing-oriened boundary spanners, Journal of Markeing, (60), Tauber, Edward M. (1974). How Markeing Discourages Major Innovaion. Business Horizons, 17 (June), Vonoras, Nicholas and Robin Auger. (2002). Assessing Indusrial Performance, Manuscrip: Cener for Inernaional Science and Technology Policy; George Washingon Universiy, USA. Wrigh, P. M., Gardner, T. M., Moynihan, L. M., & Allen, M. R. (2005). The relaionship beween HR pracices and firm performance: Examining causal order. Personnel Psychology, (58),

9 Inernaional Journal of Business and Managemen May, 2009 Table 1. Symbols and heir meanings of he mahemaical model Symbol i n IndProd Meaning Consan Model error Firm i operaing in he indusry Firm performance a a paricular ime Number of Firms in he indusry Indusrial Produciviy Consan OrgPerf Organizaional Performance IV-1 OrgCom Organizaional Commimen IV-2 EsDec Espiri De Corps IV-3 MarTub Markeing Turbulence IV-4 CompIn Compeiive Inensiy IV-5 TechTub Technological Turbulence IV-6 MaDyn Marke Dynamics IV-7 Govpol Governmenal Policies IV-8 Form Formalizaion IV-9 Cenz Cenralizaion IV-10 Rewsys Reward Sysem 215

10 Vol. 4, No. 5 Inernaional Journal of Business and Managemen Table 2. (Bea Coefficiens, Sandard error in parenhesis, -Value in Brackes and P-Values in ialics) Cons. IV-1 IV-2 IV-3 IV-4 IV-5 IV (4.221) [0.590] (0.134) [2.936] (0.123) [-0.634] (0.142) [0.066] (0.133) [0.192] (0.173) [0.015] (0.166) [-0.109] Resul of Hypohesis Tesing H1 Acceped H2 Rejeced H3 Rejeced H4 Rejeced H5 Rejeced H6 Rejeced IV-7 IV-8 IV-9 IV-10 R Squ. F-Sa (0.162) [2.893] (0.102) [0.089] (0.102) [-1.40] (0.117) [3.90] H7 Acceped H8 Rejeced H9 Rejeced H10 Acceped Legend: IV-1: Measure of frequency of respondens regarding organizaional commimen. IV-2: Measure of frequency of respondens regarding espiri de corps. IV-3: Measure of frequency of respondens regarding markeing urbulence. IV-4: Measure of frequency of respondens regarding compeiive inensiy. IV-5: Measure of frequency of respondens regarding echnological urbulence. IV-6: Measure of frequency of respondens regarding marke dynamics. IV-7: Measure of frequency of respondens regarding governmenal policies. IV-8: Measure of frequency of respondens regarding formalizaion. IV-9: Measure of frequency of respondens regarding cenralizaion. IV-10: Measure of frequency of respondens regarding reward sysem. 216

11 Inernaional Journal of Business and Managemen May, 2009 MAIN INDEPENDENT DEPENDENT AREAS VARIABLES VARIABLE Employee Orienaion Organizaional Commimen Espri De Corps (IV: 1, 2) Predicion of IT Indusry Produciviy of Pakisan Indusrial cum Organizaional Environmen Markeing urbulence Compeiive Inensiy Technology urbulence Marke Dynamics Governmen policies (IV: 3, 4, 5, 6, 7) (= 0.74) ( = 0.62) Organizaional Performance (DV) ( = 0.71) Organizaional Sysem Formalizaion Cenralizaion Deparmenalisaion Reward Sysem (IV: 8, 9, 10, 11) Figure 1. Research model (Theoreical Framework) 217

12 Vol. 4, No. 5 Inernaional Journal of Business and Managemen Annexure: Quesionnaire adoped and re-designed for he research sudy PART 1: Daa collecion regarding Organizaional Commimen and Espiri de Corps Nor Agree Srongly Disagree Disagree Agree Srongly Agree Scale Nor Disagree 1 Employees feel ha as hrough heir fuure is inimaely linked o ha of his organizaion 2 Employees would be happy o make personnel sacrifices 3 The bond beween his organizaion and is employees is weak 4 In general, employees are proud o work for his organizaion 5 Employees ofen go above and beyond he call of duy o ensure he well-being of his organizaion 6 Our people have lile or no commimen o his organizaion 7 I is clear ha employees are fond of his organizaion 8 People in his organizaion/ company are genuinely concerned abou he needs and problems of each oher 9 A eam spiri pervades all ranks in his organizaion 10 Working for his organizaion is like being a par of a big family 11 People in his organizaion feel emoionally aached o each oher 12 People in his organizaion feel like hey are in i ogeher 13 This organizaion lacks an spiri de corps 14 People in his organizaion view hemselves as independen individuals who have o olerae ohers around hem 218

13 Inernaional Journal of Business and Managemen May, 2009 PART 2: Daa collecion regarding Markeing Turbulence, Compeiive Inensiy, Technological Turbulence, Marke Dynamics and Governmenal Policies Scale Srongly Disagree Disagree Nor Agree Nor Disagree Agree Srongly Agree 1 In our kind of business, cusomers' produc or service preferences change quie a bi over ime 2 Our cusomers end o look for new produc or service all he ime 3 Our cusomers are very price-sensiive 4 5 We are winessing demand for our producs and services from cusomers who never bough hem before New cusomers end o have produc or service-relaed needs ha are differen from hose of our exising cusomers 6 We service many of he same cusomers ha we used o service in he pas 7 Compeiion in our indusry is cuhroa 8 There are many "promoion wars" in our indusry 9 Anyhing ha one compeior can offer, ohers can mach readily 10 Price compeiion is a hallmark of our indusry 11 One hears of a new compeiive move almos every day 12 Our compeiors are relaively weak 13 The echnology in our indusry is changing rapidly 14 Technological changes provide big opporuniies in our indusry 15 I is very difficul o forecas our indusrial echnology in he nex 2 o 3 years 16 A large number of new produc/service ideas have been made possible hrough echnological breakhroughs in our indusry 17 Technological developmens in our indusry are raher minor 18 In our arge marke suppliers launched frequenly new producs or producs wih exended feaures 19 We had anicipaed enry of new, addiional compeiors in our marke 20 Needs and requiremens of our cusomers changed rapidly 21 The compeiion reaced efficienly o changed cusomer requiremens 22 The compeiors changed heir markeing aciviies frequenly 23 Producs and services on he arge marke became rapidly obsolee 24 Governmenal policies are in favor of our organizaion 25 The organizaion is performing well under he policies of he governmen 26 I am saisfied wih he overall performance of he organizaion 27 There is a need of consisency in he governmenal policies relaed o he indusry 28 Governmen should revise is policies relaed o he indusry 219

14 Vol. 4, No. 5 Inernaional Journal of Business and Managemen Scale PART 3 Daa collecion regarding Formalizaion, Cenralizaion, Deparmenalizaion and Reward Sysems Srongly Disagree Disagree Nor Agree Nor Disagree Agree Srongly Agree Number of Deparmens in your Organizaion 1 I feel ha I am my own boss in mos of he maers 2 3 A person in his organizaion can make his own decisions wihou checking wih anybody else How hings are done in his organizaion is lef up o he person who does he work 4 People in our organizaion are allowed o do work in heir own pleasing syle 5 Mos people in his organizaion make heir own rules on he job 6 The employees are consanly being checked on for rule violaions People here feel ha hey are consanly being wached, o see ha hey obey all he rules In his organizaion no a single acion can be aken unil a supervisor approves he decision A person who wans o make his own decision would be quickly discouraged here 10 Even small maers have o be referred o someone higher up for a final answer 11 I have o ask my boss before I do almos anyhing 12 Any decision I make has o have my boss's approval No maer which deparmen hey are in, people in his organizaion ge recognized for heir conribuions Cusomer saisfacion assessmens influence senior managers' pay in his organizaion Formal rewards (i.e., pay raise, promoion) are available o anyone who consisenly provides good marke inelligence Employee performance in his organizaion is measured by he srengh of relaionships hey build wih he cusomers Employee's moneary compensaion is almos enirely based on heir performance 18 We use cusomer polls o evaluae organizaional performance 220

15 Inernaional Journal of Business and Managemen May, 2009 Scale for Quesion 1 & 2 Scale for Quesion 3 7 PART 4: Daa collecion regarding Company/ Organizaional Performance Poor Average Good Very Good Excellen Srongly Disagree Disagree Nor Agree Nor Disagree Agree Srongly Agree 1 The overall performance of he organizaion/ company year las year 2 The overall performance of he organizaion/ company relaive o major compeiors las year 3 The marke-share of he organizaion has increased in he las 3 years 4 I am very saisfied wih he financial success of he organizaion 5 The organizaion has reached a srong compeiive posiion in he marke 6 I am very saisfied wih he marke performance of he organizaion 7 The organizaion/company has reached an excellen echnological compeiive posiion 221