2018 · 3rd interdisciplinary conference of management researchers 23rd – 25th october 2018 –...

Organized By: Faculty of Management Studies, Sabaragamuwa University of Sri Lanka

andFaculty of Economics and Management, Universiti Putra Malaysia.

Tuesday, 23rd October – Thursday 25th October, 2018Pegasus Reef Hotel

Sri Lanka

ABSTRACTS

“Unlocking Business Potentials towards a Circular Economy”

3rd Interdisciplinary Conference of Management Researchers (ICMR)

ICMRICMR2 0 1 8

3rd Interdisciplinary Conference of Management Researchers

23rd – 25th October 2018 – Sabaragamuwa University of Sri Lanka

i

PREFACE

Recognizing the importance of having an intellectual dialog on the application of

sustainability practices in the fields of economics and management, the 3rd

Interdisciplinary Conference of Management Researchers (3rd ICMR 2018) is organized

by the Faculty of Management Studies, Sabaragamuwa University of Sri Lanka in

collaboration with the Faculty of Economics and Management, Universiti Putra

Malaysia. Four eminent Professors in the fields of Economics and Management namely,

Professor Ajith de Alwis, Professor D.B.P.H. Dissabandara, Professor Wasantha

Rathnayake, and Associate Professor Yuhanis Abdul Aziz will take part in the conference

as keynote speakers to share them incites under the theme of “Unlocking Business

Potentials Towards a Circular Economy”. More than one hundred peer reviewed

research papers will be presented under nine tracks namely, Accountancy and Finance,

Banking and Insurance, Economics, Environmental Management, General Management,

Human Resources Management, Information Technology, Marketing Management, and

Tourism. This conference provides a great opportunity for the researchers,

professionals, policy makers, undergraduates from different management fields to

discuss and share their research findings relating to key global issues, especially, the

application of environment and sustainability practices to the field of management.

Further this will provide a platform for the researchers to develop a global network in

their disciplines.



ii

Proceedings of the 3rd interdisciplinary Conference of Management Researchers –

2018 The material contained in this publication has been provided by authors of

research abstracts. Neither the Faculty of Management Studies of the

Sabaragamuwa University of Sri Lanka nor the Editorial Committee is responsible

for any material reproduced in this publication.

The correct bibliographic citation for this publication is as follows: Faculty of Management Studies 2018. Proceeding of the 3rd ICMR 2018 Conference. Belihuloya: Sabaragamuwa University of Sri Lanka. ISBN 978-955-644-069-0

Copyright © 2018 by the Faculty of Management Studies, Sabaragamuwa University of Sri Lanka, Belihuloya, Sri Lanka

All rights reserved according to the code of Intellectual Property Act of Sri Lanka, 2003 Published by ICMR 2018 and Faculty of Management Studies. Tel: +94 45 2280007 Fax: +94 45 2280007 October 2018



iii

EDITORIAL BOARD

Dr. R.S.S.W Arachchi – Editor in Chief

Prof. (Dr.) Athula Gnanapala

Prof. (Dr.) Wasantha Rathnayake

Prof. (Dr.) DAI.Dayaratne

Prof. (Dr.) MSM Aslam

Dr. H.P.R Priyankara

Dr. (Mrs) N.P.G.S.I Naotunna

Mr. T.U.I Peiris

Ms. H.K.D.W.M.N.A. Hapuhinna

TECHNICAL ASSISTANCE

Mr. I. A Ekanayake

Ms. A.W Thiranagama

Ms. A.W.G.C.N Wijethunga

Mr. W.C.K.B Wanigasekara

Ms. I.M Katuwandeniya

Ms. T.M.N Tharanga

Ms. P.L.G.S.D Piumali

Ms. T.T Samarasinghe

Ms. N.P.K Ekanayake

Ms. P.R.D Wijesinghe

Ms. H.K.D.W.M.N.A Hapuhinna

SCIENTIFIC COMMITTEE

Dr. R.S.S.W Arachchi

Mr. D.G Dharmaratne

Mr. R.A.C Ushantha

Mr. C.N.R Wijesundara

Dr. W.M.P.S.B Wahala

Mrs. L.D Kalyani

Mr. T.U.I Peiris

Ms. V Muthusamy

CONFERENCE ADVISORS


Prof. (Dr.) D.A.I Dayaratne

Prof. (Dr.) M.S.M Aslam



iv

LIST OF REVIEWERS

Prof. (Dr.) Athula Gnanapala - Sabaragamuwa University of Sri Lanka

Prof. (Dr.) Wasantha Rathnayake - Sabaragamuwa University of Sri Lanka

Prof. (Dr.) D.A.I Dayaratne - Sabaragamuwa University of Sri Lanka

Prof. (Dr.) M.S.M Aslam - Sabaragamuwa University of Sri Lanka

Prof. (Dr.) Y. K. Weerakoon Banda - University of Sri Jayewardenepura

Prof. Rama Shanker - Eritrea Institute of Technology Asmara

Dr. R.S.S.W Arachchi - Sabaragamuwa University of Sri Lanka

Dr. Iraj Rathnayake - Sabaragamuwa University of Sri Lanka

Dr. (Mrs.) L.M.C.S Menike - Sabaragamuwa University of Sri Lanka

Dr. H.P.R Priyankara - Sabaragamuwa University of Sri Lanka

Dr. (Mrs.) Vilasini De Silva - Sabaragamuwa University of Sri Lanka

Dr. (Mrs.) N.P.G.S.I Naotunna - Sabaragamuwa University of Sri Lanka

Dr. (Mrs.) T.C Gamage - Sabaragamuwa University of Sri Lanka

Dr. H. K Salinda Premadasa - Sabaragamuwa University of Sri Lanka

Dr. Sampath Wahala - Sabaragamuwa University of Sri Lanka

Dr. Ambalam Pushpanathan - Vavuniya Campus, Sri Lanka.

Dr. Sampath Fernando - Sabaragamuwa University of Sri Lanka

Dr. S Vasanthapriyan - Sabaragamuwa University of Sri Lanka

Dr. Shantha P. Herath - Wayamba University of Sri Lanka

Dr. R.M Kapila Tharanga Rathnayaka - Sabaragamuwa University of Sri Lanka

Dr. A Aruna Shantha - Sabaragamuwa University of Sri Lanka

Dr. R.A Rathnasiri - Wayamba University of Sri Lanka

Dr. S.K. Gamage - Wayamba University of Sri Lanka

Dr. (Mrs) GRSRC Samaraweera - Sabaragamuwa University of Sri Lanka

Dr. P. D Nimal - University of Sri Jayewardenepura

Dr. D. Aminda Methsila Perera - Wayamba University of Sri Lanka

Mr.T.U.I Peiris - Sabaragamuwa University of Sri Lanka

Ms.K.L.B.G Dharmarathne - Sabaragamuwa University of Sri Lanka

Ms. A.C Jayathilaka - Sabaragamuwa University of Sri Lanka

Mr. R.A.C Ushantha - Sabaragamuwa University of Sri Lanka



v

Mr. A.A.M.D Amarasinghe - Sabaragamuwa University of Sri Lanka

Mr. H.R Sampath - Sabaragamuwa University of Sri Lanka

Ms. K.M Pathmalatha - Sabaragamuwa University of Sri Lanka

Ms. L Kalyani - Sabaragamuwa University of Sri Lanka

Mr. D.G Dharmaratne - Sabaragamuwa University of Sri Lanka

Mr. S Munasinghe - Sabaragamuwa University of Sri Lanka

Mr. H.M.C.G Bandara - Sabaragamuwa University of Sri Lanka

Mr. Namal Wijesundara - Sabaragamuwa University of Sri Lanka

Mr. D. Jasinghe - Sabaragamuwa University of Sri Lanka

Mr. R.V.S.P.K Ranatunga - Sabaragamuwa University of Sri Lanka

Ms. J.K.S.C Perera - Sabaragamuwa University of Sri Lanka

Mr. A.M.J Atthanayake - Sabaragamuwa University of Sri Lanka

Ms. K.D.L.R Kapuge - Sabaragamuwa University of Sri Lanka

Ms. L.A.C Sajeewanie - Sabaragamuwa University of Sri Lanka

Mr. M.L Warnasuriya - Sabaragamuwa University of Sri Lanka

Mr.R.A.G Bandara - Sabaragamuwa University of Sri Lanka

Mr. R.M.N.B Rathnayake - Sabaragamuwa University of Sri Lanka



vi

MESSAGE FROM THE VICE-CHANCELLOR

“Ayubowan”

As the Vice-Chancellor of the Sabaragamuwa University of Sri

Lanka, I warmly extent my heartiest gratitude to the 3rd

Interdisciplinary Conference of Management (ICMR) - 2018

under the theme of “Unlocking Business Potentials towards a

Circular Economy”. I recognized the importance of this theme as inevitable for entire

globe, where human society are being unsustainable practices and unscientific

solutions.

Sabaragamuwa University of Sri Lanka is an emerging research university that

promotes and facilitates research activities among its staff and students extensively. It

launched the first International Symposium in 2006 and continue to hold this

multidisciplinary research conference in every two years. The successful journey of last

five conference led to hold the 3rd ICMR at a grand venue, the Pegasus Reef Hotel, in

Wattala, a most renowned tourism paradise of Sri Lanka. Although physically we are

located in a remote region far away from capital city, virtually and academically we are

becoming one of the most popular university through research and knowledge

dissemination. In my tenue as a Vice-Chancellor my major intention was to enhance the

image and contribution through academic and research activities more than physical

development of the university. It does not mean that we have neglected the physical

development. Our major emphasis is on uplifting the country, society and the university

through research and scientific knowledge. Today, I am also glad to learn that many

academics and scholars especially from Asian continent are expected to participate in

this conference. Therefore, I am sure this conference would be an ideal platform for

domestic and overseas academics to share their knowledge in diverse discipline while

enhancing the networking.

Indeed, anticipating the goal of sustainability claims fundamental changes in problem

solving process and decision-making process with support of scientific knowledge

application and research-based solutions for the issues and challenges. This demand the

nation and entire world to encourage and inspire the researchers, academics, policy



vii

makers and practitioners to lead the institutions, society and the countries towards

sustainable development through scientific researches and knowledge-based

development interventions. Therefore, I, as the Vice Chancellor have taken all possible

efforts to develop a vibrant research culture among the academics, by providing

research grants for carrying out sound research, travel grants to attend overseas

international symposiums, promoting research postgraduate studies and paying

publication fees for those who are publishing their findings in high impact indexed

journals. University also hold faculty conferences and annual research session in

addition to the ICMR. All these steps were taken to develop a favorable research

ambience within the University for Young Academics to work.

Organizing an International conference is a big challenge and I am confident that the

Centre for Research and Knowledge Dissemination together with the support of the

faculties will hold this conference to meet the global standard. I extend my

congratulations to conference committee and secretariat of the conference and wish

them all success.

I wish happiest time in Sri Lanka for all the overseas delegates and an enlightening

conference for all the researchers, academics, students, practitioners and policymakers.

1 Prof. M. Sunil Shantha

2 Vice-Chancellor

3 Sabaragamuwa University of Sri Lanka

4



viii

MESSAGE FROM THE CONFERENCE CHAIR

On behalf of the Organizing Committee, I would like to

cordially welcome distinguished guests, keynote speakers,

delegates, sponsors, presenters and participants to the 3rd

Interdisciplinary Conference of Management Researchers

(ICMR 2018) with the collaboration of University Putra

Malaysia. This time conference is on the theme of “Unlocking the business potentials

towards a circular economy”. It has been decided with the intention of addressing

global issues relating to the environment and sustainability practices in the field of

Management.

We have given you an opportunity to develop a forum to discuss the “Circular Economy

Practices and Challenges “. As you know, we are used to practice Linear Economy

concept in the industry. It means simply, Take, Make and Dispose. However, in the

modern business world, we are talking about the circular economy instead of linear

economy where the concept of make, use and return is following. It has become a buzz

word in the business and field of economy. It is a re-thinking progress which will help to

practice 3R concept and provide a sustainable solution to the business. Circular

Economy will contribute not only to preserve natural resources and environment but

also to contribute innovation and new job opportunities. It is initiating a good way of

living well within the limits of our planet. I hope at the end of this conference, you all

will have a great idea about the application of circular economy to the country.

I hope that the Conference Proceedings will serve as a comprehensive compilation of

the present knowledge and experience and will be used widely by researchers,

professionals, policy makers, undergraduates from different management fields who are

concerned with the subjects. The success of the conference depends ultimately on the

many people who have worked with us in planning and organizing this event.

Eventually, I would like to thank all of them their guidance, support and motivation for

the success of this International Conference.

Dr. Rangana Shalika

Conference Chair– 3rd ICMR 2018



ix

MESSAGE FROM THE DEAN OF THE FACULTY OF

MANAGEMENT STUDIES

It gives me immense pleasure to write this message for the 3rd

Interdisciplinary Conference of Management Researchers (3rd

ICMR) organized by the Faculty of Management Studies of the

Sabaragamuwa University of Sri Lanka.

The Faculty of Management Studies is highly conscious of the need for academic

excellence being a state university and a consumer of public funds. The Faculty is

dedicated to the pursuit of an excellent teaching and research culture to deliver high

quality education in a picturesque and peaceful environment for our students and other

stakeholders. We have identified our academic responsibilities and that is why we

organize these academic conferences to have a global platform for researchers in

different fields to identify, disseminate and enrich solutions to emerging issues and

challenges.

This time we have organized the conference in collaboration with the Faculty of

Economics and Management, Universiti Putra Malaysia. I must take this opportunity to

welcome and give thanks to all our distinguished guests, academics and other

participants who have come all the way from our partner university in Malaysia. Also, I

express my heartiest gratitude and appreciation to all the researchers who have

produced excellent studies and who have agreed to explore and present their valuable

and significant findings at this research platform.

The theme of “Unlocking Business Potential Towards a Circular Economy” has been

chosen for the conference this time. A circular economy is an alternative to a traditional

linear economy in which we keep resources in use for as long as possible, extract the

maximum value from them while they are in use, then recover and regenerate products

and materials at the end of each service life. Why a circular economy is important for

the contemporary business world?

It will enhance business and organizational performance though creating new

opportunities for growth, and a more circular economy will reduce waste, drive greater



x

resource productivity, enhance business competitiveness and help to reduce the

environmental impact of production and consumption in local and global contexts. I

believe this is a timely and important theme for the country as well for the global arena,

and the conference will be an ideal platform for researchers to share their knowledge in

the field of Management and other related disciplines.

I take this opportunity to extend my deep appreciation to the conference chair,

secretary, co-chairs and other members of the organizing committee who have done

excellent work to ensure the success of this conference.

I wish you all the best.


Dean

Faculty of Management Studies

5 Sabaragamuwa University of Sri Lanka



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6 TABLE OF CONTENTS

Preface i

Editorial Board iii

Message from Vice-Chancellor vi

Message from Conference Chair – 3rd ICMR 2018 viii

Message from Dean, Faculty of Management Studies ix

Accountancy and Finance

DETERMINANTS OF CAPITAL STRUCTURE OF MALAYSIAN REAL ESTATE INVESTMENT TRUST FUNDS (M-REITs) Norhuda Abdul Rahim, Nor Aishah Mohd Shawal, Muhamad Aizuddin Bin Ahmad Nazri

2

WHERE DID THEY FIND OUT ABOUT FINANCIAL KNOWLEDGE AND DID THEY PRACTICE GOOD FINANCIAL MANAGEMENT BEHAVIOR? AN ANALYSIS OF STUDENTS’ DEMOGRAPHIC VARIABLES Nor Aishah Mohd Shawal, Junainah Muhammad, Raden Ajeng Habiba Muchtar Muhamadumar

3

GEOMETRIC BROWNIAN MOTION BASED NEW HYBRID STATISTICAL APPROACH FOR STOCK MARKET FORECASTING R. M. Kapila Tharanga Rathnayaka, D. M. K. N. Seneviratna

4

FACTORS INFLUENCING INVESTMENT DECISION MAKING IN SWIFTLET RANCHING INDUSTRY Fatin Farazh Ya’acob, Mohd Shahwahid Othman, Rabiatul Munirah Alpandi, Mohd Hafiz Bin Ghazali

5

WINDING UP OF A COMPANY AS A MODE OF LIQUIDATION: A COMPARATIVE ANALYSIS WITH UK PERSPECTIVES D.M. Thimalee M. Sachindrani, Dilini T. Samayawardena

6

THE IMPACT OF CORPORATE SUSTAINABILITY PRACTICES ON FINANCIAL PERFORMANCE - AN EMPIRICAL STUDY ON LISTED MANUFACTURING COMPANIES OF SRI LANKA H.S. Ajani D.Fernando, W.T.Navini.M.Perera , W.Dilini N.Aruppala

7

INSIGHTS OF INTEGRATED REPORTING IN ORGANIZATIONAL REPORTING PRACTICE: A STUDY OFLISTED COMPANIES ON COLOMBO STOCK EXCHANGE IN SRI LANKA W.T.Navini.M.Perera, H.S. Ajani D.Fernando, W.Dilini.N.Aruppala

8

SHARE HOLDERS’ RESPONSES AT THE ANNOUNCEMENT OF CHANGES IN BOARD OF NON-EXECUTIVE DIRECTORS: EVIDENCE FROM COLOMBO

9



xii

STOCK EXCHANGE (CSE) Dunusinghe G Dharmarathna

THE INFLUENCE OF LEAN ACCOUNTING PRINCIPLES TOWARDS CULINARY MASTERPIECE: A STUDY OF SRI LANKAN APPAREL INDUSTRY Neranjana P. K. Ekanayake

10

DETERMINANTS OF FORWARD-LOOKING INFORMATION IN THE INTEGRATED REPORTS OF SRI LANKA Thilini T. Samarasinghe

11

THE IMPACT OF BOARD CHARACTERISTICS ON DIVIDEND POLICY: EVIDENCE FROM MANUFACTURING SECTOR OF COLOMBO STOCK EXCHANGE Dissanayake D.M.K.T, Dissabandara D.P.B.H

12

DETERMINANTS OF DIVIDEND PAYOUT RATIO; EVIDENCE FROM BANK, FINANCE AND INSURANCE SECTOR IN COLOMBO STOCK EXCHANGE H.K. Achini Sewwandi Indrachapa, D. G Lasantha Rasika

13

MACROECONOMIC DETERMINANTS OF STOCK MARKET DEVELOPMENT IN ASIAN COUNTRIES: DYNAMIC PANEL ANALYSIS Nithumal Dias Kaluarachchi

14

AN ASSESSMENT OF THE CORPORATE SUSTAINABLE PERFORMANCES AND SUSTAINABLE REPORTING IN SRI LANKAN CORPORATE SECTOR H.G.R.S. Somasiri, Manori P. Kovilage

15

IMPACT OF FOREIGN PORTFOLIO INVESTMENTS ON STOCK MARKET PERFORMANCE: A COMPARATIVE STUDY OF WAR AND POST WAR PERIOD Ponnamperumage M. Shamika, Nishadi M. Senevirathne, Piyumi G. Werahera

16

EFFECT OF INFLATION ON BANKS’ PERFORMANCE: EVIDENCE FROM SRI LANKA Amarasena B.W.C.M. , Peiris T.U.I.

17

FIRMS’ CHARACTERISTICS AND INTEGRATED REPORTING: EVIDENCE FROM SRI LANKA Dhananjaya S. Pathiraja, Nadeesha Priyadarshanie 7

18

DYNAMIC RELATIONSHIP BETWEEN LOCAL & FOREIGN INVESTORS’TRADINGS: EVIDENCE FROM COLOMBO STOCK EXCHANGE Marasinghe U.M , Fernando K.D.U.D

19



xiii

Banking and Insurance

JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT: A FIELD STUDY OF INSURANCE AGENTS IN TRINCOMALEE DISTRICT Dinojah Shabdrakumar, Geekiyanage Yashoda Nirmani Gunathilaka

21

A STUDY ON INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE OF SRI LANKAN BANKS W.Dilini N.Aruppala

22

IMPACT OF ETHICAL SALES BEHAVIOUR ON CUSTOMER LOYALTY: AN EMPIRICAL STUDY IN THE LONG-TERM INSURANCE INDUSTRY Wijenayaka H.M.D.S., Perera D.A.M.

23

FACTORS AFFECTING TO THE EFFECTIVENESS OF SETTLING A MOTOR CLAIM ON TIME IN SPECIAL REFERENCE TO THE ALLIANZ INSURANCE LANKA LTD Pradeep Chanaka, Sulakkhana Sinhabahu, Chathurika Edirisinghe

24

PERCEIVED RISK OF ROAD ACCIDENTS AND DEMAND FOR INSURANCE: EVIDENCE FROM MOTORISTS IN SRI LANKA Weedige Sampath Sanjeewa

25

DETERMINANTS OF CUSTOMERS’ INTENTION TO USE PERSONAL FINANCING FROM THE BANKS: SPECIAL REFERENCE TO COMMERCIAL BANKS IN SRI LANKA K.D.L.R Kapuge

26

BANKING SECTOR DEVELOPMENT AND ENDOGENOUS GROWTH: STRUCTURAL EQUATION APPROACH Fernando K.D.U.D, Peiris T.S.G, T U I Peiris

27

IMPACT OF INCOME DIVERSIFICATION ON BANK PERFORMANCE: SPECIAL REFERENCES TO LICENSED COMMERCIAL BANKS IN SRI LANKA Dilhara R.P.L. Jayasena, Malith AAD Amarasinghe

28

IMPACT OF THE ASSETS AND LIABILITY MANAGEMENT ON FINANCIAL PERFORMANCE; EVIDENCE FROM LISTED COMMERCIAL BANKS IN COLOMBO STOCK EXCHANGE Herath Mudiyanselage Tharangani Kumari, Devundara Gedara Lasantha Rasika

29

IMPACT OF GOOD GOVERNANCE ON BANKING SECTOR DEVELOPMENT IN ASIAN REGION Karunarathne S.A.M.D , Fernando K.D.U.D

30

THE IMPACT OF ENTERPRISE RISK MANAGEMENT ON UNDERWRITING PROFIT IN INSURANCE COMPANIES IN SRI LANKA S.P. Kasun Dhananjaya Senanayake, K.D.U. Dinesh Fernando

31



xiv

Economics

A STUDY OF THE CHALLENGES FACING THE CASTE-BASED ECONOMIC IN CONTEMPORARY SOCIETY K.G. Keerthi Prabhash, W.Thilini Hayasinth Dayananda

33

DETERMINATION OF EFFICIENT AND INEFFICIENT UNITS FOR SWIFTLET EDIBLE BIRDSNEST PRODUCTION IN JOHOR BAHRU, MALAYSIA BY USING DATA ENVELOPEMENT ANALYSIS Rabiatul Munirah Alpandi, Mohd Shahwahid Othman, Fakarudin Kamarudin , Fatin Farazh Ya’acob, Muhammad Syafiq Mohd Salam

34

A STUDY ON THE IMPACT THE GLOBALIZATION HAS CAUSED TO CHANGE THE DIRECTION OF THE SRI LANKA’S ECONOMY W. M. Sarasi Chaya Bandara

35

RIGHT LIVELIHOOD (SAMMĀ ĀJĪVA) AS AN ALTERNATIVE MEANS FOR ECONOMIC INEQUALITY AS DEPICTED IN EARLY BUDDHISM. Moragaswewe Vijitha

36

ESTIMATING MARSHALLIAN AND HICKSIAN ELASTICITIES FOR RED MEAT, FISH AND EGGS IN SRI LANKA: AN ALMOST IDEAL DEMAND SYSTEM APPROACH A. Aruna Shantha

37

Environmental Management

A STUDY OF THE REASONS OF THE GARBAGE PROBLEM IN SRI LANKA AND A PROPOSAL FOR A RECYCLABLE WASTE MANAGEMENT SYSTEM Sudhara Karagampitiya, M. Alroy Mascrenghe

39

EFFECT OF CLIMATIC FACTORS TO THE AIR QUALITY LEVELS IN MONTANE PROTECTED AREAS OF SRI LANKA: A CASE STUDY IN HORTON PLAINS NATIONAL PARK Danushka C. Ranathunga, Enoka P. Kudavidanage, H.D.S Premasiri

40

ADOPTION OF GREEN SUPPLY CHAIN MANAGEMENT (GSCM) PRACTICES AND THEIR IMPACT ON CORPORATE PERFORMANCE; WITH SPECIAL REFERENCE TO RUBBER PRODUCTS INDUSTRY IN SRI LANKA Chalani Marasinghe, Manori P. Kovilage

41

FACTORS THAT AFFECT GREEN PURCHASING INTENTION OF SRI LANKAN CONSUMERS IN PURCHASING FAST MOVING CONSUMER GOODS (FMCG) Ishara Madhubhashini, Manori P. Kovilage

42



xv

General Management

FACTORS AFFECTING THE ACADEMIC PERFORMANCE OF THE UNDERGRADUATE STUDENTS, WITH SPECIAL REFERENCE TO THE UNIVERSITY STUDENTS IN SRI LANKA R. M. U. R. K. Rathnayaka

44

PATHWAY TO WOMEN ENTREPRENEURSHIP DEVELOPMENT THROUGH TECHNOLOGY TRANSFER: THE EFFECT OF ENVIRONMENTAL FACTORS. (CASE STUDY OF VIDATHA PROGRAM, SRI LANKA) D.W.C P. Dambugolla

45

AN ASSESMENT OF THE ROLE OF THE INTERNET AS A TOOL FOR SEARCHING A JOB BY GENERATION “Z” Janani M. Lasanthika, Neranjala S.M. Tennakoon, U.T.M.L.C.Tennakoon

46

ISSUES FACED BY THE TRADITIONAL COASTAL FISHERIES INDUSTRY IN NEGOMBO FISHRIES COMMUNITY Menikran Pathiranage Manoj Indrakumara Chandrasena

47

WOMEN EMPOWERMENT IN ENTREPRENEURIAL ACTIVITIES IN MALAYSIA Sa mslnar Md.Sidin, Ravindran Ramasamy, Farhana Tahmida Newaz

48

AN ALGORITHM TO ASSIGN INVIGILATORS TO EXAMS TO MINIMIZE THE MAXIMUM INDIVIDUAL LOAD OF INVIGILATORS Jayalal Wettasinghe

49

RISK MANAGEMENT IMPLEMENTATION OF MANUFACTURING COMPANIES IN MALAYSIA Norafizza Mahat, Mazlina Mustapha

50

DETERMINANTS OF THE DEMAND FOR CABLE TV SERVICES IN THE ERA OF INFORMATION COMMUNICATION TECHNOLOGY P.A.D. Dilini Randika

51

DOES WORK ENVIRONMENT MATTER FOR EMPLOYEE PRODUCTIVITY? AN EVIDENCE FROM PUBLIC SECTOR IN SRI LANKA T.A.I.Priyadarshani, A.K.Anjala

52

THE IMPACT OF RISK CONTROL METHODS ON BUSINESS CONTINUATION: EVIDENCE FROM SME IN KALUTARA Thibbotuge Piyanga Kumari, Devundara Gedara Lasantha Rasika

53

IMPACT OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON LOCAL COMMUNITY WITH SPECIAL REFERENCE TO THE APPAREL INDUSTRY Sulakkhana Sinhabahu, Athula Gnanapala

54

A STUDY ON THE IMPACT OF PSYCHOLOGICAL CAPITAL ON ORGANIZATIONAL IDENTIFICATION OF SALES PERSONS (WITH SPECIAL

55



xvi

REFERENCE TO C GRADE CARGILLS FOOD CITY OUTLETS IN COLOMBO DISTRICT) Maheshi M.C. Rajapaksha, LD Kalyani

INFLUENCE OF KNOWLEDGE SHARING ATTITUDE IN SRI LANKAN SOFTWARE COMPANIES Prabodha D.P.J, Vasanthapriyan Shanmuganathan

56

ANALYSIS OF EMPLOYEE INNOVATIVE BEHAVIOR IN SRI LANKAN SOFTWARE COMPANIES Ariyarathna G.M.R.N., Vasanthapriyan Shanmuganathan

57

IMPACT OF EMOTIONAL INTELLIGENCE ON JOB STRESS OF EXECUTIVE LEVEL EMPLOYEES (AN EMPIRICAL STUDY OF A COMMERCIAL BANK) B.A.P. Suwaris, A. W. Thiranagama

58

RELATIONSHIP OF JOB STRESS AND JOB COMMITMENT OF FINANCE PROFESSIONALS IN SRI LANKAN FOOD RETAIL INDUSTRY’S PRIVATE SECTOR Silva.G.N.D.D, V.Muthusamy

59

COMPARING SERVPERF VERSUS HEDPERF IN MEASURING HIGHER EDUCATION SERVICE QUALITY: A CASE ON SABARAGAMUWA UNIVERSITY OF SRI LANKA Lakmini P. Muthugala, Isuru A. Ekanayake

60

A STUDY ON THE IMPACT OF GLASS CEILING FACTORS ON WOMEN CAREER DEVELOPMENT AT INTERNATIONAL CONSTRUCTION CONSORTIUM (PVT.) LIMITED E.H.S.B.Yomadi, J.K.S.C.Perera

61

IMPACT OF JOB CHARACTERISTICS AND FAMILY SUPPORTIVE SUPERVISOR BEHAVIOR ON WORK FAMILY ENRICHMENT H.M.A.M. Herath, A.W. Thiranagama

62

THE IMPACT OF FAMILY SUPPORTIVE SUPERVISOR BEHAVIOURS ON WORK-TO-FAMILY CONFLICT OF MARRIED FEMALE MACHINE OPERATORS K. V. D. Vishadi Vimukthi, J. K. S. Chrisangika Perera

63

A STUDY ON THE IMPACT OF WORK-TO-FAMILY ENRICHMENT ON JOB SATISFACTION OF OPERATIONAL LEVEL EMPLOYEES (WITH SPECIAL REFERENCE TO ABC (PVT.) LIMITED) D. W. Deepthika Neranjali, J. K. S. Chrisangika Perera

64

WOMEN E-ENTREPRENEURS IN ACTION: IDENTIFYING SKILLS REQUIRED FOR THE SUCCESS AND THE PROBLEMS FACED BY THE FEMALE SOCIAL MEDIA-BASED SMALL BUSINESSES. W.A.K. Amitha

65



xvii

Human Resource Management

EFFECTIVENESS OF USING BIOMETRIC ATTENDANCE SYSTEM (FINGER PRINT) IN PUBLIC SECTOR: A CASE STUDY OF ABC UNIVERSITY, SRI LANKA Sugandika K. Liyanage, Chanuk Liyanage

67

THE NEXUS BETWEEN FLEX WORK AND WORK-LIFE BALANCE: A CRITIQUE Tharindu D. Weerasinghe

68

EMOTIONAL INTELLIGENCE FOR EFFECTIVE LEADERSHIP AT WORKPLACE: A REVIEW Bhasuri Bhagyani Amarathunge

69

FACTORS INFLUENCING EMPLOYEE ENGAGEMENT AMONG GEN Y IN PUBLIC ORGANIZATIONS IN MALAYSIA Zuraina Dato Mansor, Ho Jo Ann, Norlelyy Mat Nata

70

IMPACT OF HUMAN RELATIONS SKILLS OF UNIVERSITY ADMINISTRATIVE OFFICERS TOWARDS ORGANIZATIONAL EFFECTIVENESS Wijenayake M.D.I.P, Perera M.A.C.H.

71

AN ASSESSMENT OF THE EFFECTS OF INFORMAL GROUPS ON EMPLYEE PERFORMANCE; A CASE STUDY ON GOVERNMENT EDUCATIONAL INSTITUTE IN SRI LANKA Pramoda Sarojini

72

IMPACT OF EMPLOYEE EMPOWERMENT ON EMPLOYEE JOB SATISFACTION: MEDIATORY ANALYSIS Palihana Ralalage Deepika Wijesingha

73

A STUDY OF GREEN HR PRACTICES IN SRI LANKAN ORGANIZATIONS Polwatte R. W. M. S. C. Weerakotuwa

74

AN EMPIRICAL STUDY OF THE RELATIONSHIP OF OCCUPATIONAL STRESS AND TURNOVER INTENTION AMONG THE SRI LANKAN APPAREL MANUFACTURING INDUSTRY WORKERS (STUDY BASED ON WESTERN PROVINCE OF SRI LANKA) Deepal Wijayasekara, Lakmini Jayatilaka, Sivashankar Pathmanathan

75

MUSIC LISTENING AND WORK PERFORMANCE: A LONGITUDINAL STUDY ON APPAREL SECTOR OF SRI LANKA Mampe Kankanamalage Dinithi Padmasiri, Manimeldura Virangi Sonali Mendis

76

KNOWLEDGE MANAGEMENT INVOLVEMENT IN IMPROVING HUMAN RESOURCE MANAGEMENT OF THE ORGANIZATIONS Sashini K. Weerathunga, Vasanthapriyan Shanmuganathan

77

IMPACT OF ORGANIZATIONAL COMMITMENT ON EMPLOYEE TURNOVER INTENTION OF OPERATIONAL LEVEL EMPLOYEES AT JO LANKA

78



xviii

MANUFACTURING (PRIVATE) LIMITED WADDUWA M. D. G. K. Goonatillake, A. C. Jayatilake

IMPACT OF PERSONALITY TRAITS ON JOB INVOLVEMENT OF GOVERNMENT BANKERS IN RATNAPURA MUNICIPLE COUNCILE AREA Nathan A. Perera, Amalie C. Jayatilake

79

A STUDY ON THE IMPACT OF PSYCHOLOGICAL CAPITAL ON INDIVIDUAL WORK PERFORMANCE OF SUPERVISORY LEVEL EMPLOYEES R. A. Geethamali P. Rupasinghe, J. K. S. Chrisangika Perera

80

IMPACT OF PSYCHOLOGICAL EMPOWERMENT ON ORGANIZATIONAL COMMITMENT OF EXECUTIVE LEVEL EMPLOYEES IN NATIONAL DEVELOPMENT BANK PLC IN SOUTHERN PROVINCE H.M.R.Malintha, P. J. Jayathilake

81

THE IMPACT OF PERCEIVED SUPERVISORS’ LEADERSHIP STYLE ON JOB SATISFACTION OF OPERATIONAL LEVEL EMPLOYEES (WITH REFERENCE TO CAMSO LOADSTER (PRIVATE) LIMITED, EKALA) Ekanayaka A.B.D.Kumari, P.J.Jayathilake

82

IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON FEMALE EMPLOYEES PERFORMANCE Nirma P. Sooriyamudali, Harshani Kumarasinghe

83

Information Technology

A STUDY OF EMPLOYEE PERCEPTIONS OF OUTSOURCING OF INFORMATION TECHNOLOGY OPERATIONS IN BANKING SECTOR Amila Bandarawatta, Prabu Premkumar

85

E-BUSINESS IN SRI LANKA: CUSTOMER PERCEPTION ON VALUE CREATION IN TRADE SECTOR I. R. Malawige

86

LEGAL ISSUES ON ELECTRONIC TRANSACTIONS: SL VS. EU Dilini T. Samayawardena, D.M. Thimalee M. Sachindrani

87

IMPACT OF ORGANIZATIONAL ELECTRONIC KNOWLEDGE REPOSITORY USE ON SOFTWARE PROJECT SUCCESS OF SOFTWARE DEVELOPMENT ORGANIZATIONS IN SRI LANKA. Nadun V. Hettiarachchi, Shanmuganathan Vasanthapriyan

88

Marketing Management

ROLE OF DIGITAL MARKETING IN RETAIL FASHION INDUSTRY: A SYNTHESIS OF THE THEORY AND THE PRACTICE R.M.U.R.K.Rathnayaka

90



xix

INFLUENCE OF E-GOVERNANCE ON SERVICE QUALITY IN PUBLIC SECTOR ORGANIZATION IN SRI LANKA: A QUANTITATIVE CASE STUDY Anton Michael Denesh

91

A STUDY TO IDENTIFY THE CAUSES AND PREDICT CUSTOMER CHURN IN TELECOMMUNICATION INDUSTRY IN SRI LANKA Luxman Gnanakurubaran, M. Alroy Mascrenghe

92

THE ATTITUDE OF SMS ADVERTISEMENTS ON ATTITUDE TOWARDS BRAND: WITH SPECIAL REFERENCE TO DOMINO’S CONSUMERS IN SRI LANKA Sanduni D. Piumali

93

INTERNAL BRANDING, BRAND COMMITMENT AND BRAND CITIZENSHIP BEHAVIOR IN INSURANCE INDUSTRY

Wijenayaka, H.M.D.S, Perera D.A.M.

94

IMPACT OF MARKETING MIX ON CONSUMER BUYING BEHAVIOR OF HOUSEHOLD WOODEN FURNITURE: A CASE STUDY IN STATE TIMBER CORPORATION H. M. N. M. Heenkenda, M.A. P. D. P. Wickramaratne

95

THE IMPACT OF STORE ATMOSPHERE ON CUSTOMERS’ PATRONAGE INTENTION IN SRI LANKAN SUPERMARKETS R. P. D. Thanuja Maduwanthi, R. A. Chanaka Ushantha, R. M. Kapila Tharanga Rathnayaka

96

THE IMPACT OF STORE IMAGE ATTRIBUTES ON CONSUMERS’ STORE LOYALTY IN SRI LANKAN SUPERMARKETS S.D. Dileesha Harshani Rathnasiri, R.A. Chanaka Ushantha, R. M. Kapila Tharanga Rathnayaka

97

Tourism Management

FACTORS INFLUENCING THE USE OF PUBLIC URBAN GREEN SPACE IN KUALA LUMPUR Nur Syafiqah A Samad, Abdul Rahim Abdul Samad, Nur Fatihah Shaari, Rabiatul Munirah Alpandi, Siti Mariam Mellisa Abdullah

99

STAKEHOLDERS’ PERCEPTION TOWARDS COMMUNITY-BASED ECOTOURISM DEVELOPMENT BY USING PARTIAL-LEAST SQUARE STRUCTURAL EQUATION MODELLING (PLS-SEM): THE CASE OF MIN HOUSE CAMP, KUBANG KERIAN KELANTAN Siti Mariam Mellisa Abdullah, Mohd Shahwahid Haji Othman, Abdul Rahim Abdul Samad, Nur Syafiqah Abdul Samad, Nur Fatihah Shaari, Rabiatul Munirah Alpandi

101



xx

FACTORS INFLUENCING THE INVOLVEMENT OF AIRLINE PASSENGERS ON CARBON OFFSET PROGRAM Nur Fatihah Shaari, Abdul Rahim Abdul Samad, Nur Syafiqah A Samad, Siti Mariam Mellisa Abdullah, Rabiatul Munirah Alpandi

103

INVESTIGATING THE IMPACT OF ELECTRONIC WORD OF MOUTH ON CONSUMERS’ PURCHASING INTENTIONS IN THE SRI LANKAN TOURISM INDUSTRY Wanigasekara Arachchige Maduni Hansika

104

USE OF SOCIAL NETWORKING SITES BY TOURISTS FOR THEIR DESTINATION SELECTION PROCESS: A STUDY ON SRI LANKA Katupelalla Mudalige Achini Nisansala, Athula Gnanapala

105

CONSTRAINTS ON THE DEVELOPMENT OF RURAL TOURISM WITH SPECIAL REFERENCE TO INGIRIYA M. D. Kalpani L. Gunathilaka

106

WHY DOES A BUDDHIST WANT TO TRAVEL WHEN S/HE IS FULLY AT HOME ‘HERE AND NOW’? Mahesh Hapugoda

108

THE VALIDATION OF THE DESTINATION SUSTAINABILITY CONSTRUCT USING CONFIRMATORY FACTOR ANALYSIS: CASE OF LANGKAWI, MALAYSIA An Nur Nabila Ismail, Yuhanis Abdul Aziz, Anuar Shah Bali Mahomed, Norazlyn Kamal Basha

109

TOURIST ATTITUDES OF VISITOR MANAGEMENT TECHNIQUES IN SIGIRIYA FOR THE VISITOR EXPERIENCE QUALITY D.M.K.D. Dissanayake, R.S.S.W. Arachchi

110

SOCIO-ECONOMIC IMPACT OF WILDLIFE TOURISM ON LOCAL COMMUNITY: A STUDY ON YALA NATIONAL PARK D. H. Nipuni Dinusha Jayalath, Athula Gnanapala

111

PERCEIVED QUALITY OF WELLNESS TOURISM AND ITS’ IMPACT ON REVISIT INTENTION OF THE TOURISTS WITH SPECIAL REFERENCE TO AYURVEDA HOTELS AND SPAS IN SRI LANKA W. M. Madusha Sepali Wellawatta, Athula Gnanapala

112

CAUSES FOR NEGLECTING THE SUSTAINABLE TOURISM PRACTICES OF SRI LANKAN TRAVEL AGENCIES BY FOREIGN TOUR OPERATORS IN TRAVEL AGENCY SELECTION Rumalka Amanthi, Manori P. Kovilage

113

TOURISTS’ PERCEPTION AND SATISFACTION ABOUT THE SUSTAINABLE TOURISM OPERATIONS IN MADU RIVER Kaludura Madushika Gimhani, Athula Gnanapala

114



xxi

THE IMPACTS OF TOUR GUIDE PERFORMANCE ON FOREIGN TOURIST SATISFACTION AND REVISIT INTENTION IN SRI LANKA N.S.K.H.P.Sampath, R.S.S.W.Arachchi

115

THE CONTRIBUTION OF TOURISM DEVELOPMENT TO ECONOMIC GROWTH IN THE SRI LANKAN ECONOMY: A TIME SERIES APPROACH Mohamed Aboobucker Haalisha

116

8



1

Accountancy and Finance



2

DETERMINANTS OF CAPITAL STRUCTURE OF MALAYSIAN REAL ESTATE INVESTMENT TRUST FUNDS (M-REITs)

Norhuda Abdul Rahim, Phd Department of Accounting and Finance, University Putra Malaysia

Selangor, Malaysia [email protected]

Nor Aishah Mohd Shawal

Department of Accounting and Finance, University Putra Malaysia Selangor, Malaysia

[email protected]

Muhamad Aizuddin Bin Ahmad Nazri Department of Accounting and Finance, University Putra Malaysia

Selangor, Malaysia

This study investigates determinants of capital structure decision of Malaysian Real Estate Investment

Trust Funds (M-REITs) using 75 observations from 15 REITs companies listed in the Bursa Malaysia

during 5 years study period of 2011 to 2015. Employing panel data regression model, we found that

asset tangibility is significantly positively related to leverage as the real assets provides a really good

collateral and thus serve to increase the debt capacity of the firm. This result is in line with the nature of

REITs that needs to have more fixed assets rather than intangible assets. Consistent with pecking order

theory, profitability was reported to have significantly negatively relationship with leverage suggesting

that M-REITs with lower (higher) profits have larger (lower) debt. Similar to other industry, these firms

will use retained earnings to fund their operation and will issue external funding when they really need

more capital.

Keywords: Capital structure, Real Estate Investment Trusts (REITs), Leverage, Asset tangibility

mailto:[email protected]




3

WHERE DID THEY FIND OUT ABOUT FINANCIAL KNOWLEDGE AND DID THEY PRACTICE GOOD FINANCIAL MANAGEMENT BEHAVIOR? AN

ANALYSIS OF STUDENTS’ DEMOGRAPHIC VARIABLES

Nor Aishah Mohd Shawal Department of Accounting and Finance, Universiti Putra Malaysia

Selangor, Malaysia [email protected]

Junainah Muhammad

Department of Accounting and Finance, Universiti Putra Malaysia Selangor, Malaysia

[email protected]

Raden Ajeng Habiba Muchtar Muhamadumar

Department of Accounting and Finance, Universiti Putra Malaysia Selangor, Malaysia

This article examined the basic money management, credit, saving and investment, and spending habit of

students. The sample consisted of 182 responses from two higher learning institutions, where majority of

them stated that they received financial knowledge and education from their parents and during school

days more than any other sources such as from seminars and workshops. The result also showed that,

among other things, there is a significant difference between male and female regarding their financial

management behavior. This article suggests a more active role of financial institutions in promoting

sustainable financial behavior because young people have a long financial journey to go and major

financial decision-makings like buying a house or investing for retirement plan are becoming more

complex.

Keywords: saving, investment, socialization agent, credit, spending behavior, money

management





4

GEOMETRIC BROWNIAN MOTION BASED NEW HYBRID STATISTICAL APPROACH FOR STOCK MARKET FORECASTING

Dr. R. M. Kapila Tharanga Rathnayaka Department of Physical Sciences & Technology

Faculty of Applied Sciences Sabaragamuwa University of Sri Lanka

Belihuoya, Sri Lanka. [email protected]

Dr. D. M. K. N. Seneviratna

Department of Interdisciplinary Studies Faculty of Engineering University of Ruhuna

Galle, Sri Lanka. [email protected]

Capital Investments in the stock market is the easiest and fastest way of building the healthy financial

foundation for future life. In the past few decades, stock markets around the world have become more

institutionalized and advanced as the main forms of investments for making profit investments in

numerous organizations as well as individuals to arrange their large investment funds to the general

public. As a result, the stock market prediction has become one of the great challenges caused by its

complexity and eruptive nature.

Generally, stock prices are chaotic and show both linear and nonlinear behaviors. Therefore, the accuracy

of the forecast might be enhanced by modeling the non-linear behaviors of the series as well. The main

purpose of this study is to take an attempt to understand the behavioral patterns as well as seek to

develop a new hybrid forecasting approach based on Geometric Brownian Motion (GBM) for estimating

price indices in Colombo Stock Exchange (CSE), Sri Lanka. Indeed, the Autoregressive integrated moving

average (ARIMA) approach is used as a comparison mode.

The current study was carried out on the basis of CSE daily trading data from January 2010 to May 2018

were extracted and tabulated for calculations. Because of the nonlinear behavioral patterns in the CSE,

the mean absolute percentage error analysis results suggested that new proposed hybrid model (HGBM)

is highly accurate than traditional ARIMA (HGBM (0.521%) < ARIMA (7.18%)) for forecasting one day

ahead predictions. Furthermore, the results reveal that, the new proposed model is more significant for

investors to make their investment decisions precisely.

Keywords: Geometric Brownian Motion, ARIMA, Hybrid model and Colombo Stock Exchange





5

FACTORS INFLUENCING INVESTMENT DECISION MAKING IN SWIFTLET RANCHING INDUSTRY

Fatin Farazh Ya’acob Department of Economics

Faculty of Economics and Management Universiti Putra Malaysia [email protected]

Mohd Shahwahid Othman Department of Economics

Faculty of Economics and Management Universiti Putra Malaysia

[email protected]

Rabiatul Munirah Alpandi Department of Economics


[email protected]

Mohd Hafiz Bin Ghazali Department of Economics


[email protected]

Edible-birdnest industry is an entry point project under the Malaysian transformation plan. The number

of swiftlet houses has increased three and half folds from 2011 to 2016 but with this trend swiftlet houses

failure ranged from 70 to 80%. This study focuses on understanding the investors’ behavior in this

industry and on determining factors that are influencing their investment decision. The basic framework

of analysis is the investor behavior theory by applying the formative first order PLS-SEM model. The

investigation uses data collected from 180 ranchers randomly interviewed from two districts namely

Johor Bahru and Gua Musang. The result revealed that heuristic is a first decision construct that has the

highest impact to investment decision making followed by market, herding and prospect decision

construct.

Keywords: Edible-Birdnest , Johor Bahru, Gua Musang, investment







6

WINDING UP OF A COMPANY AS A MODE OF LIQUIDATION: A COMPARATIVE ANALYSIS WITH UK PERSPECTIVES

D.M. Thimalee M. Sachindrani Presidential Commission

Sri Lanka [email protected]

Dilini T. Samayawardena

Supreme Court Sri Lanka

[email protected]

In present, the world has been globalized. Therefore, each and every person have been interconnected.

Hence, people have started to think in a modernized approached. Consequently, new companies enter

into the business industry. According to the Sri Lankan Law, companies are governed under the

Companies Act, No 07 of 2007. Each and every company which have been and which are going to

establish should be registered under the Registrar of Company. In Sri Lanka, there are different types of

companies incorporated as limited company, unlimited company, company limited by guarantee. A

company is a collaboration of directors, shareholder and employees. Therefore within the company,

when a financial crises occur, when a company is unable to pay its debts, when the company has no

directors the company ends with winding up. According to the Companies Act there are three modes of

winding up. The winding up of a company may be either by the court, voluntary or subject to the

supervision of the court. A liquidator is appointed to conduct this process. Liquidator plays a major role

throughout the liquidation process. The objective of this research is as follows: the difficulties of

liquidation method as mode of winding up a company. Further to ascertain the loopholes of the legal

system related to liquidation. Therefore, a comparative analysis will be taken place with the UK

companies Act 2006. This research is conducted by a qualitative method: primary sources- relevant Acts

and Ordinances, secondary sources-relevant articles, websites, law journals, text book. The research

paper concludes with recommendations for a liquidation process during particular time frame.

Keywords: Companies Act of Sri Lanka, Companies Act of UK, winding up, Liquidation





7

THE IMPACT OF CORPORATE SUSTAINABILITY PRACTICES ON FINANCIAL PERFORMANCE - AN EMPIRICAL STUDY ON LISTED

MANUFACTURING COMPANIES OF SRI LANKA

H.S. Ajani D. Fernando

Faculty of Commerce and Management Studies

University of Kelaniya, Sri Lanka [email protected]

W.T.Navini M. Perera

Department of Accountancy Faculty of Commerce and Management Studies


W.Dilini N. Aruppala



The modern world business organizations tend to operationalize the concept of sustainability into their

bottom line in order to gain the competitive advantage and meet the increased demands of various

stakeholder groups. Following the notions of Stakeholder Theory (ST) and Resource Based View (RBV),

this study aims to assess whether Corporate Sustainability Practices (CSP) contribute towards enhancing

the Corporate Financial Performance (CFP) in listed manufacturing companies of Sri Lanka over the

period of 2007-2017. Further this paper addresses the timely need of research on the holistic concept of

Sustainability, which has been replaced with constricted corporate social responsibility neglecting

economic and environmental dimensions of the broader concept. The research design of this study

deploys content analysis as the qualitative method and statistical analysis (panel data regression model)

as the quantitative method. Disaggregated measures of sustainability have been used to assess CSP using

the checklist following Taib and Ameer,2012, while the CFP is assessed on the dimensions of Return on

Equity (ROE) and Return on Assets (ROA). This paper reported that there is significant positive

relationship between CSP and CFP in listed manufacturing companies of Sri Lanka.

Keywords – Corporate Sustainability Performance (CSP), Corporate Financial Performance (CFP),

Stakeholder theory (ST), Resource Based View (RBV)






8

INSIGHTS OF INTEGRATED REPORTING IN ORGANIZATIONAL REPORTING PRACTICE: A STUDY OFLISTED COMPANIES ON COLOMBO

STOCK EXCHANGE IN SRI LANKA

W.T. Navini M. Perera Department of Accountancy

Faculty of Commerce and Management Studies University of Kelaniya, Sri Lanka

[email protected]

H.S. Ajani D. Fernando Department of Accountancy


[email protected]

W.Dilini N. Aruppala Department of Accountancy


[email protected]

This paper sets out to explore and review the application and nature of disclosures in Integrated

Reporting (IR) among selected organizations listed on Colombo Stock Exchange (CSE) in Sri Lanka. This

study used (Jayasiri:, 2015); one of the studies which was originally contributes with an IR disclosure

index prepared based on the International Integrated Reporting Council Framework (IIRC) and other

non-financial reporting guidelines and frameworks where no previous studies have been addressed.

Further this study used (Abeysekera, 2013); “A template for integrated reporting” as the theoretical base

of this study. The content analysis with qualitative coding technique used for this study and this study

evaluates the extent and nature of IR disclosures by conducting a five-year analysis. Sample consists with

twentyfive Sri Lankan companies listed on Colombo Stock Exchange (CSE)and out of that sample six

companies were awarded as the best Integrated Report prepares by the Institute of Certified

Management Accountants of Sri Lanka in 2015 (ICMASL, 2015). This study shows that the rapid

development of integrated reporting policy and present theoretical and empirical challenges because of

the different ways in which integrated reporting is understood and enacted within organizations. Further

IR has increased in the extent of disclosure of human, social and relational, natural and intellectual capital

information of the listed companies. It highlights many areas where further robust academic research is

needed to guide developments in policy and practice of IR.

Keywords: Integrated reporting (IR), IIRC, Listed companies, content analysis, Sri Lanka.






9

SHARE HOLDERS’ RESPONSES AT THE ANNOUNCEMENT OF CHANGES IN BOARD OF NON-EXECUTIVE DIRECTORS: EVIDENCE FROM

COLOMBO STOCK EXCHANGE (CSE)

Dunusinghe G. Dharmarathna Department of Accountancy & Finance,

Faculty of Management studies, Sabaragamuwa University of Sri Lanka

[email protected]

Identifying the requirement of shifting from an emerging market to a developed market, this study

analyzes the shareholders’ responses at the announcement of the changes in board of non-executive

directors of the companies listed on the CSE thereby provides a test of semi-strong form efficient market

hypothesis in CSE. Event study methodology was used for this purpose. The sample consists with 80

which made 108 announcements of changes in non-executive directors on the CSE during the period of

2012–2016. Abnormal returns around the event are generated by using market model incorporating

ARCH family models namely GARCH (1,1), TGARCH (1,1) and EGARCH (1,1) models. Overall results of this

study show that shareholders’ reaction is significantly positive to the information subsequent to the

announcement of changes in board of non-executive directors within 31-day window in CSE. The

abnormal returns appear prior to the actual announcement of the information, as well as after the actual

announcement of the information. It confirms that there are earlier reactions and delayed reactions

information subsequent to a public announcement of this event. This evidence suggests that Sri Lankan

Share Market is inconsistent with semi-strong form efficient market hypothesis in relation to the

announcement of changes in board of non-executive directors in CSE. These findings will be important for

all parties interested in the share market such as investors, the managers of the companies and the stock

exchange regulatory agencies in their decision-making process

Keywords: ARCH family Models, Event Study, Market Model, Semi-strong Form Efficient Market

Hypothesis




10

THE INFLUENCE OF LEAN ACCOUNTING PRINCIPLES TOWARDS CULINARY MASTERPIECE: A STUDY OF SRI LANKAN APPAREL

INDUSTRY

Neranjana P. K. Ekanayake Department of Accountancy and Finance, Sabaragamuwa University of Sri Lanka

Pambahinna, Belihuloya, Sri Lanka [email protected]

This paper presents the influence of lean accounting principles towards outstanding performance of

Sri Lankan apparel industry. Lean accounting has introduced changes necessitate by a company's

accounting, control, measurement, and management processes to brace lean manufacturing and lean

thinking in modern accounting context. The researcher has scrutinized most effective lean accounting

principles applicable to the apparel industry; (a) lean and simple business accounting, (b) accounting

processes that support lean transformation, (c) clear and timely communication of information, (d)

planning from a lean perspective and (e) strengthen internal accounting control. This study focuses

on the extent of adhering and practicing lean accounting principles by the apparel fabricators in Sri

Lanka. The objective of this study is to search how the lean accounting techniques can support

optimization of resources utilization leading to create value for the organization connecting

contemporary management accounting techniques. This investigation was carried out from

theoretical lenses of system thinking theory and by the theory of contemporary management

accounting techniques attached to lean principles. This paper follows the quantitative research

approach and a structured questionnaire was deployed to collect data. A sample of 30 apparel

fabricators has been selected for the purpose of this study, adopting convenient sampling. The data

analysis was backed by SPSS statistics. This research found out that the majority of Sri Lankan

apparel fabricators are not adopting proper lean accounting tools in order to practice lean accounting

principles even though the management judge that the concept of lean accounting has been absorbed

in to the organizational culture.

Keywords: lean accounting, apparel industry, contemporary management accounting.




11

DETERMINANTS OF FORWARD-LOOKING INFORMATION IN THE INTEGRATED REPORTS OF SRI LANKA

Thilini T. Samarasinghe Department of Accountancy and Finance Sabaragamuwa University of Sri Lanka

Pambahinna, Belihuloya, Sri Lanka [email protected]

Integrated Reporting (IR) is a novel concept for Sri Lanka which has incorporated the disclosure of

historic information with the forward-looking information. To enhance the relevance of the information

for the decision making of the stakeholders companies tend to disclose forward looking information in

their Integrated Reports. This study aims to examine different types of forward-looking information

included in the integrated reports in the Sri Lankan context and to identify the determinants for those

information disclosures. The sample for the study involves sixteen (16) companies listed in the Colombo

Stock Exchange (CSE) whose Integrated Reports are publicly available. The Integrated Reports for the

Financial Years 2016 and 2017 which has prepared in accordance with the International Integrated

Reporting Council (IIRC) standards was analyzed through content analysis approach for the sixteen

companies. The forward-looking information was categorized as qualitative and quantitative disclosures

for the analysis purpose. Multivariate Ordinary Least Square Regression was applied to investigate the

associations assumed in the research hypothesis. It was identified that the majority of the companies

disclose qualitative forward looking information than the quantitative. Further the Firm Size, Board Size

and the Board Composition was positively related with forward looking information while leverage was

negatively related. It was not identified a significant impact from the profitability of the company on the

forward looking information. In the Sri Lankan context the studies focused on this novel concept

Integrated Reports is comparatively limited. This study will contribute for the enhancement of the

relevance of information using the forward looking information through identifying the determinants for

those disclosures.

Keywords: Forward Looking Information, Integrated Reporting, Qualitative and Quantitative Information




12

THE IMPACT OF BOARD CHARACTERISTICS ON DIVIDEND POLICY: EVIDENCE FROM MANUFACTURING SECTOR OF COLOMBO STOCK

EXCHANGE

Dissanayake D.M.K.T School of Business,NSBM Green University Town,

Pitipana,Homagama,Sri Lanka [email protected]

Dissabandara D.P.B.H

Department of Finance,University of Sri Jayewardenapura Gangodawila,Nugegoda,Sri Lanka

[email protected]

Finance scholars motivate to seek answers for the query on payment of Dividends by companies and the

affecting factors for the payment of Dividends was majorly due to the prevailing issue of problem of

Dividends since 1950s. The study is based to how one of the main components of corporate governance,

which is the Board characteristics, has influenced dividend policy. The data for this paper was gathered

Manufacturing sector companies in Colombo Stock Exchange taking the last 5-year figures as a base.

Dividend Decision and Dividend pay-out were taken into reflection for the measurement of Dividend

policy. And the three analytical strategies of Descriptive Statistics, Binary Logistic Regression and Panel

Regression were taken as tools of analysis. Descriptive statistics were used to understand the nature of

board characteristics in Banking and Finance sector of Sri Lanka. The effect on Board characteristics on

dividend decision was expansively defined in Binary Logistic regression. The effect on level of dividend

pay-out through Board characteristics were discussed through Panel Regression.

Keywords- Corporate Governance, Board Characteristics, Dividend Policy, Binary Logistic Regression,

Panel Regression



13

DETERMINANTS OF DIVIDEND PAYOUT RATIO; EVIDENCE FROM BANK, FINANCE AND INSURANCE SECTOR IN COLOMBO STOCK

EXCHANGE

Hewa Kodithuwakkuge Achini Sewwandi Indrachapa Department of Accountancy & Finance, Sabaragamuwa University of Sri Lanka

Belihuloya [email protected]

Devundara Gedara Lasantha Rasika

Department of Accountancy & Finance Sabaragamuwa University of Sri Lanka


Dividend payout is the most significant unresolved issues in modern corporate finance. The purpose of

this study is to investigate the determinants of the dividend payout ratio for the companies listed in the

Bank, Finance and Insurance (BFI) Sector of Colombo Stock Exchange (CSE) for a period of 10 years from

2007 to 2016. Panel data sets were obtained from the databases and annual reports of the selected 12

Listed Companies in BFI Sector in CSE. Profitability, Leverage, Liquidity, Corporate Tax, Business Risk,

Firm Size and Past Year Dividend were used to determine Dividend Payout Ratio. The panel data

regression technique was used to examine the impact of Profitability, Leverage, Liquidity, Corporate Tax,

Business Risk, Firm Size and Past Year Dividend on Dividend Payout Ratio. The results revealed that the

Liquidity and Past Year Dividend have a positive significant influence on Dividend Payout Ratio while

Business Risk has a negative significant influence on Dividend Payout Ratio. Moreover, Profitability,

Leverage, Corporate Tax and Firm Size have an insignificant impact on Dividend Payout Ratio. It can be

concluded that Liquidity, Past Year Dividend and Business Risk are the most important determinants of

Dividend Payout. The findings are very useful to the Board of Directors and Management in deciding an

appropriate dividend policy for the company.

Keywords: BFI Sector, Colombo Stock Exchange, Dividend Payout Ratio, Panel Data Regression



14

MACROECONOMIC DETERMINANTS OF STOCK MARKET DEVELOPMENT IN ASIAN COUNTRIES: DYNAMIC PANEL ANALYSIS

Nithumal Dias Kaluarachchi

Sabaragamuwa University of Srilanka.

The study investigates the determinants of stock market development in Asian Continent. The study

focused on the objective with identifying the relationship among determinants of stock market

development in fifteen Asian countries including South Asia, South East Asia and Asia Pacific. The study

employed the deductive research approach by using secondary data from the World Bank Development

indicators and World Bank Governance indicators over the period from 2010 to 2015. System GMM

model was employed for derive the relationship among determinants of stock markets namely

macroeconomic stability (INF), foreign liberalization (NFDI), regulatory quality (RQUA), trade

liberalization (TRAO) and initial income (PCGDP). By went through the previous scholars the study was

found that the market capitalization ratio (MCAP) have a significant relationship among the lagged

market capitalization, foreign liberalization, regulatory quality and initial income in Asian countries. On

the contrary, it scrutinized that the market turnover ratio (TURN) have significant relationship among the

lagged market turnover ratio macroeconomic stability, regulatory quality, trade liberalization and initial

income. Out of the results from two models it can devote a conclusion that the regulatory quality and

initial income gave significant influence on stock market development in Asian economies. Empirical

findings of this study would helpful for investors who are willing to invest in emerging Asian nations,

scholars who are willing to conduct studies on this context and the policy makers to craft their policy

decisions.

Keywords – Stock Market Development, Macroeconomic Determinants, Regulatory Quality, Deductive

Approach, Asian Region.



15

AN ASSESSMENT OF THE CORPORATE SUSTAINABLE PERFORMANCES AND SUSTAINABLE REPORTING IN SRI LANKAN

CORPORATE SECTOR

HGRS Somasiri Department of Tourism Management,

Faculty of Management Studies Sabaragamuwa University of Sri [email protected]

Manori P. Kovilage

Department of Tourism Management, Faculty of Management Studies Sabaragamuwa University of Sri

[email protected]

The purpose of this study was to examine the extent to which Sri Lankan listed companies have adopted

their sustainability reporting based on the requirements of Global Reporting Initiatives (GRI) guideline

and to assess their sustainable performances based on the environmental performance indicators

emphasized in GRI. The researcher considered all (290) the Colombo Stock Exchange listed companies

which engage in sustainable reporting as the population of the study. The sample of the study consisted of

70 companies which represented all the industrial sectors in Sri Lanka except store supplies and

Information technology. Here proportionate stratified random sampling technique was followed. The

researcher used a checklist which was included sustainable reporting and performance requirements

emphasized in GRI G 4 guideline as the data collection instrument. The study found that in Sri Lanka, the

level of social, environmental and economic disclosure which was aligned with GRI guidelines were in a

lower level. Further, even though it showed a lower level, when comparing past few years, a little increase

in sustainable reporting in listed companies in Sri Lanka is shown. The findings of this study may help for

policy makers and governmental bodies to assess the existing status of sustainability reporting in Sri

Lanka and to prepare some policies for governing the sustainable performance and reporting in Sri

Lankan corporate sector.

Keywords: Colombo Stock Exchange (CSE), Corporate Sustainable Reporting (CSR), Global Reporting

Initiatives (GRI)




16

IMPACT OF FOREIGN PORTFOLIO INVESTMENTS ON STOCK MARKET PERFORMANCE: A COMPARATIVE STUDY OF WAR AND POST WAR

PERIOD

Ponnamperumage M. Shamika Department of Accountancy & Finance Sabaragamuwa University of Sri Lanka

[email protected]

Nishadi M. Senevirathne Department of Accountancy & Finance Sabaragamuwa University of Sri Lanka

[email protected]

Piyumi G. Werahera Department of Accountancy & Finance Sabaragamuwa University of Sri Lanka

[email protected]

It is proved that the witness of peace in Sri Lanka has enhanced the performance of Colombo Stock

Exchange (CSE). Provided the stable economic, political and social conditions prevailed in the country,

foreign portfolio investments to Colombo Stock Exchange performance records upward trend recently

comparatively to the war period. Thus, this paper is an attempt to examine whether there is a significant

change from the impact of Foreign Portfolio Investment on stock market performance indicators. Hence,

to fulfill this objective this study conducted war and post war period analysis for the periods January

2005 to May 2009 and June 2009 to December 2017 respectively. For the purpose of measuring the

performance of Colombo Stock Exchange (CSE); two key performance indicators were used. That is Stock

Market Index (All Share Price Index) and the Trade Volume. The analytical approach applied to this study

was Simple Linear Regression methodology to arrive at the results. According to the findings of the study

it was proved that during the post war period Foreign Portfolio Investments have a significant impact on

All Share Price Index. In all the other cases Foreign Portfolio Investments had no significant impact on

the Stock Market Performance.

Keywords: Foreign Portfolio Investment, Sector Index, Stock Market Performance, Trade Volume, War

and Post War Period






17

EFFECT OF INFLATION ON BANKS’ PERFORMANCE: EVIDENCE FROM SRI LANKA

9 Amarasena B.W.C.M.

10 Peoples’ Bank 11 [email protected]

Peiris T.U.I.

Sabaragamuwa University Of Sri Lanka [email protected]

Literature has shown that macroeconomic factors play a significant role in determining banks’

performance. Herein, inflation is considered as a significant determinant of banks’ performance as shown

by the Positivists’ and Negativists’ theories. Further, Neutralists’ theory agues on the phenomena that

inflationary effects are not significant on investments, thereby carries no effect to banks’ performance.

This ambiguousness further confirms with the presence of vague empirical findings on this regard.

However, in this study the researcher hypothesizes that the inflationary effects are not straight forward

to banks’ performance but mediates through interest income and expenditure. This hypothesis is tested

on the Sri Lankan context referring to 19 licensed banks during the period 2011 to 2016. Findings were

obtained through a Structural Equation Model, which reveals that interest expenses carry significantly

positive effects while interest income carries significantly negative effects to banks’ performance.

Therefore, a significantly negative overall effect can be expected because the influence through interest

income is relatively high due to money creation effect, given that both the mediation effects originate

through savings.

Keywords: Banks’ Performance, Direct and Indirect Effects, Inflation, Structural Equation Model.





18

FIRMS’ CHARACTERISTICS AND INTEGRATED REPORTING: EVIDENCE FROM SRI LANKA

Dhananjaya S. Pathiraja Department of Accountancy, Wayamba University of Sri Lanka

Kuliyapitiya, North Western Province, Sri Lanka [email protected]

Nadeesha Priyadarshanie

Department of Accountancy, Wayamba University of Sri Lanka Kuliyapitiya, North Western Province, Sri Lanka

[email protected]

Integrated Reporting (IR) has become a new reporting dimension in current financial reporting arena.

Recently most of the companies around the world have adopted IR concept which some far beyond the

sustainability reporting in their financial statements. Since IR is not yet mandatory requirement in Sri

Lanka, companies adopt IR for their reporting in various levels with the assistance of Integrated

Reporting Framework guidelines given by the International Integrated Reporting Council (IIRC).

Therefore this study focuses to investigate how firms’ characteristics determine the level of integrated

reporting adoption in companies listed in Colombo Stock Exchange (CSE). Objectives of this study were to

analyze the level of IR adoption, examine the association between Firms’ characteristics and level of IR

adoption and investigate the impact of Firms’ characteristics on level of IR adoption. For this study, all IR

adopted companies were selected as the sample. It was revealed that 61 companies have adopted IR for

their reporting by 2016. Data was collected for the years 2016 and 2017 using annual reports of selected

companies. Level of IR adoption was used as the dependent variable while structure related, performance

related and market-related firms’ characteristics of a firm were selected as independent variables.

Structure related variables are firm’s listed age, leverage and ownership dispersion. As the performance

related variables, profitability, assets and total sales were considered. Market value, audit firm size and

industry type were selected as market related variables. Regression analysis was employed to analyze the

impact of firms’ characteristics on level of IR adoption. The relationship between firms’ characteristics

and level of IR adoption was analyzed through Correlation analysis. Findings revealed that there is a

significant impact of Firms’ Age, Leverage, Ownership Dispersion, Total Assets, Total Sales and Industry

type on level of IR adoption.

Keywords: Colombo Stock Exchange, Firms’ Characteristics, Integrated Reporting, Integrated Reporting

Index, International Integrated Reporting Council




19

DYNAMIC RELATIONSHIP BETWEEN LOCAL & FOREIGN INVESTORS’TRADINGS: EVIDENCE FROM COLOMBO STOCK EXCHANGE

Marasinghe U.M

Department of Accountancy and Finance, Faculty of Management Studies Sabaragamuwa University of Sri Lanka, Sri Lanka

[email protected]

Fernando K.D.U.D Department of Accountancy and Finance, Faculty of Management Studies

Sabaragamuwa University of Sri Lanka, Sri Lanka [email protected]

Stock market is also call as share market, capital market and equity market and the stock market play a

critical role in the growth of the industry and commerce of the country that eventually affects the

economy of the country to a great extent. In a market, foreign investors & local investors are investor

consist with individual & institutional investors. This paper investigates the dynamic relationship

between local and foreign investors trade in Colombo stock exchange. Thus, study has used monthly net

trading data of foreign institutional investors, foreign individual investors, local institutional investors

and local individual investors from 1992 to December 2017.The main objective of this study to examine

the dynamic relationship between local and foreign investors trading. Empirical result has shown that

foreign investors negatively related with domestic investors based on vector error correction model

result. This future explored that there is a negative relationship between foreign institutional investors

and local institutional investors, foreign individual investors and local individual investors, foreign

institutional investors and local individual investors and local individual investors and foreign individual

investors. And also found that there is a positive relationship between foreign individual investors and

local institutional investors, local individual investors and foreign individual investors and there is no

long rung relationship between local institutional investors and foreign institutional investors and local

individual investors and foreign institutional investors. According to that result can conclude there is a

negative relationship between foreign and local investor’s trade in Sri Lankan stock market.

Keywords: Foreign institutional investors, foreign individual investors, Local institutional investors,

Local individual investors.





20

Banking and Insurance



21

JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT: A FIELD STUDY OF INSURANCE AGENTS IN TRINCOMALEE DISTRICT

Dinojah Shabdrakumar Department of English Language Teaching, Vavuniya Campus of the University of Jaffna

[email protected]

Geekiyanage Yashoda Nirmani Gunathilaka Department of Economics and Management, Vavuniya Campus of the University of Jaffna

[email protected]

This study attempts to investigate the job satisfaction dimensions and its’ impact on organizational

commitment among insurance agents in Trincomalee district. For this purpose, 100 self-administrated

questionnaires were distributed among insurance agents in Trincomalee district by using stratified

sampling techniques to elicit relevant data from them in this study. The collected data were analyzed

using different econometrics techniques such as descriptive statistics, correlation and multiple liner

regression analysis. Organizational commitment was considered as dependent variable with other eight

independent variables. The results of the correlation analysis revealed that organizational commitment

had moderate positive association between pay, supervision, operating conditions, co-workers and

nature of work. Results highlighted that there was a strong positive association between fringe benefits

and organizational commitment while promotion and communication network found to be insignificant.

Furthermore, there was a moderate positive significant relationship between overall job satisfaction and

organizational commitment. As a result of the multiple liner regression analysis, it is explicit that all the

above explanatory variables show impact on organizational commitment except supervision and co-

workers.

Keywords: Job satisfaction, affective commitment, Continuance Commitment, Normative Commitment





22

A STUDY ON INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE OF SRI LANKAN BANKS

W. Dilini N. Aruppala



The purpose of this study is to examine the impact of Intellectual Capital (IC) on Financial Performance

(FP) of Sri Lankan banks. This study examines the level of IC, level of FP and their inter-play between the

two in context of Sri Lankan banks. This study employs Value Added Intellectual Coefficient (VAIC)

methodology developed by Ante Pulic (2000) to form a measurement basis for the IC. Accordingly,

Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency

(CEE) are used as IC constituents. Return on Equity (ROE), Return on Assets (ROA) and Market to Book

Value Ratio (M/B) measure the FP of selected banks. The data obtained from corporate annual reports

are regressed to measure the impact of IC constituents on FP. Findings of this research indicates that, IC

has a significant positive impact on FP of Sri Lankan banks. Hence, outcomes of this research would

motivate bankers to apply knowledge management practice in their institutions. Moreover, study

provides valuable inputs to the stakeholders and potential investors to assess the value creating

capabilities of selected banks. This study emphasizes the importance of decision makers’ awareness

about the IC as a key factor that can enhance a firm’s ability to maintain their competitive position.

Keywords: Intellectual Capital, VAIC, Financial Performance, Sri Lankan Banks




23

IMPACT OF ETHICAL SALES BEHAVIOUR ON CUSTOMER LOYALTY: AN EMPIRICAL STUDY IN THE LONG-TERM INSURANCE INDUSTRY

H.M.D.S. wijenayaka

Department of Insurance and Risk Management, SANASA Campus, Kegalle [email protected]

D.A.M. Perera

Dept. of Accountancy, Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya, Sri Lanka

Amidst increasing competition, insurance companies are looking for ways to differentiate their services in

the eyes of their customers and to attain high levels of customer satisfaction and loyalty. From the

customer’s perspective, the determinants of customer satisfaction are thought to include factors such as

trust, good relationship, and salesperson’s ethics. Therefore, the salespeople of business need to be

perceived as ethical, trustworthy, and pleasant by their customers. This study focuses on how a

salesperson's ethical sales behaviour can build customer trust in the salesperson, which in turn influences

customer satisfaction and loyalty in the long-term insurance industry. This research represents an initial

step in analyzing the role of ethical sales behaviour, as perceived by long-term insurance customers, in

developing and maintaining satisfaction and loyalty among the customers. A pretested structured

questionnaire was administered with a randomly selected sample of long-term insurance policyholder

(n=126). A Linear Regression and Correlation Analysis were carried, using the SPSS Software (Version 17).

The findings revealed that a salesperson’s ethical behaviour leads to higher customer trust and

satisfaction, which in turn, enhances loyalty to the insurance company that the salesperson represents.

The outcome of analysis provides insights to understand how salespersons behaviour influence on

formation of long-term relationships with customers in insurance industry in Sri Lanka and how it can be

used by marketers to plan their promotional decisions on insurance products.

Keywords: Customer loyalty, Ethical sales behavior, Insurance industry, Satisfaction, Trust




24

FACTORS AFFECTING EFFECTIVENESS OF SETTLING MOTOR CLAIM ON TIME: SPECIAL REFERENCE TO THE ALLIANZ INSURANCE LANKA LTD

Pradeep Chanaka

Pan Asia Bank PLC Embilipitiya, Sabaragamuwa Province, Sri Lanka

[email protected]

Sulakkhana Sinhabahu B.Sc Honors in EcoBusiness Managemnt

Department of Tourism Management Faculty of Management Studies

Sabaragamuwa University of Sri Lanka [email protected]

Chathurika Edirisinghe

Department of Accountancy and Finance Faculty of Management Studies

Sabaragamuwa University of Sri Lanka In the competitive business world; insurance companies play a vital role with safeguarding the businesses

and people from future risks and therefore insurance companies become an essential party to any kind of

business and to the general public. However, when considering Sri Lankan context in the general

insurance; motor insurance is more popular. It is because of the increasing number of vehicles in the

country. However, with the increased number of vehicles tend to more and more accidents and it leads

the insurance companies to a heavy workload with number of claim settlements. This increasing work

load on insurance companies again leads to the ineffectiveness in motor claim settling procedure of

insurance companies. Therefore, it is needed to identify the factors which can enhance the company

effectiveness in settling motor claims. Then the objective of study became to identify the factors which

affect to settle a motor claim on time and also identify which factor affect the most and finally to identify

whether there is an effect of employee demographic factors on the claim settlement effectiveness.

Questionnaire was used to collect primary data for the study. As a sample of this research, the researcher

selected 61 employees in the motor claim department at Allianz Insurance Lanka Ltd. The study is used

Multiple Regression Analysis to assess the impact of factors influencing to the effectiveness of settling a

motor claim on time. As well as SPSS is used as the analyzing tool for this research. According to

Regression Analysis, the study reveals that there is an impact of employee participation, employee

training and development and communication on the motor claim settling effectiveness. Therefore,

insurance companies need to enhance the employee participation and involvement with the settlement

procedure and allowing for more training and development programmes also lead insurance companies

towards the success through an effective motor claim settlement procedure.

Keywords: Insurance Companies, Claim Settlement Procedure, Effectiveness





25

PERCEIVED RISK OF ROAD ACCIDENTS AND DEMAND FOR INSURANCE: EVIDENCE FROM MOTORISTS IN SRI LANKA

Weedige Sampath Sanjeewa

Wayabma University of Sri Lanka Kuliyapitiya, Sri Lanka [email protected]

This study examines the effect of perceived risk of road accidents on the insuring attitude and buying

intention of comprehensive motor insurance cover among the motorist in Sri Lanka. The continuous

increase in road accidents and related death & injuries has become a serious problem in Sri Lanka.

Statistics show that more than 1000 road accidents per week with five to six people being killed every

day. Risk as feelings refers to our instinctive and intuitive reactions to danger. People’s risk perceptions

are linked to exogenous anchors like media coverage or personal experience. Hence, own experience or

frequent media reports publishing on road accidents influence to motorists’ perception about the risk of

road accidents. The general attitude towards risks, the familiarity of road accidents, and demography

used to measure the perceived risk of road accident construct. An exploratory research design was

employed, and a structured questionnaire with the five-point Likert scale was used to measure a

randomly selected sample of 80 motorists in the western province, Sri Lanka. The descriptive statistics

and regression analysis used to measure the effect of the variables. The study results revealed that there

is a significant positive correlation between motorists’ perception of the increase in road accidents and

intention to buy comprehensive motor insurance. Further, the general attitude towards risk and

familiarity with road accident were highly correlated and significant effect to motorists’ perceived risk of

road accident. Both risk-averse attitude and trust of insurance have a positive contributory effect on the

intention to use comprehensive motor insurance cover. The study establishes a contributory link between

hazard perception and intention to use insurance products. The findings are beneficial to the decision

makers of insurance marketing, training, product design, and government policy makers to effectively

utilize the insurance solutions.

Keywords: Hazard Perception and Insurance, Risk of Road Accidents, Comprehensive Motor insurance




26

DETERMINANTS OF CUSTOMERS’ INTENTION TO USE PERSONAL FINANCING FROM THE BANKS: SPECIAL REFERENCE TO COMMERCIAL

BANKS IN SRI LANKA.

K.D.L.R. Kapuge Department of Marketing Management

Faculty of Management Studies Sabaragamuwa University of Sri Lanka

[email protected]

The aim of this paper is to examine the determinants of customers’ intention to use personal financing

offers by the commercial banks in Sri Lanka, by employing an extended version of Theory of reasoned

action (TRA) developed by Fishbein and Ajzen (1975). This study focusses attitude, social influence,

interest rates, service quality, access to guarantors, on the intention to use personal financing offers by

the commercial banks. Data were gathered through 230 respondents from the Western Province of Sri

Lanka using multistage sampling procedure. The main research instrument used was a questionnaire,

based on a Ten-point Likert Scale. Descriptive Analysis, Multiple Linear Regression and Stepwise

Regression Models were used to analyze the data. Research findings revealed that while overall attitude

on personal finance offers by commercial banks were positive and significant with intention to use,

significant positive influence from service quality and mixed results were shown by social influence on

intention to use personal financing offers by the commercial banks. Interest rate and access to guarantors

were significant factors which limit the intention to use personal financing by the commercial banks. As

commercial bankers are persuading personnel financing to increase profitability and facing competition,

bankers need to improve the service quality further, and by articulating appropriate strategies to improve

the interest rates while prioritizing strategies to suggest alternatives for access to guarantors, in order to

improve customers’ intension to use personal financing offers by the commercial banks in Sri Lanka.

Keywords: Commercial Banks, Personal financing, Sri Lanka, Theory of reasoned action (TRA)




27

BANKING SECTOR DEVELOPMENT AND ENDOGENOUS GROWTH: STRUCTURAL EQUATION APPROACH

K.D.U.D. Fernando

Department of Accountancy & Finance Faculty of Management Studies, Sabaragamuwa University of Sri Lanka, Belihuloya

[email protected]

T.S.G. Peiris Department of Mathematics

Faculty of Engineering, University of Moratuwa, Katubedda, Sri Lanka [email protected]

T. U. I. Peiris

Department of Accountancy & Finance Faculty of Management Studies, Sabaragamuwa University of Sri Lanka, Belihuloya

[email protected]

Development of the banking sector is deemed to be a fundamental requirement for acceleration of

economic growth which is a primary result of endogenous effect on investment in human capital,

innovation and knowledge. Further, financial and regulatory authorities have been stressing the cope

with the consequences of the banks’ impact on economies globally. However, empirical studies which

concentrated on influences of BSD on economic growth brought inconsistent results found in different

literature. Therefore, this study empirically investigates the effect of BSD on economic growth through

four (04) theoretically chosen channels. In this regard, channel effects of Physical Investment, Human

Capital, Technology and Good Governance are considered. Further, four (04) indicators of the BSD, bank

intermediation, bank broad access (BA), bank profitability (PF) and bank liquidity (LQ) were identified.

Data were gathered over the period 2006 to 2014 for 18 countries relating to selected variables. A

Structural Equation Model (SEM) is developed to represent the direct and indirect relationship among

these channel variables, economic growth and BSD estimated by Three-Stage Least Squares (3SLS)

estimation technique. The results indicate that only bank broad access (BA) brought the negative direct

effect on economic growth while other indicators showed insignificant results, but with expected sign.

However, bank intermediation (IM) and bank broad access (BA) have only cared the channel effect on

economic growth through Human Capital. Since, improved bank intermediation and bank access have

allowed flowing credits and reliable banking facilities to the entrepreneurs and individuals for the

investment on skilled labor by way of trainings and higher education opportunities which have ultimately

improved the economic growth endogenously. The study suggested that governments and monetary

authorities must review the policies towards the hassle-free financial access and prioritize the productive

investment ventures when providing bank facilities towards the economic growth.

Keywords: Banking Sector Development, Endogenous Growth, Good Governance, Principal Component

Analysis, Three Stage Least Square.






28

IMPACT OF INCOME DIVERSIFICATION ON BANK PERFORMANCE: SPECIAL REFERENCE TO LICENSED COMMERCIAL BANKS IN SRI LANKA

Dilhara R.P.L. Jayasena

Department of Accountancy & Finance Faculty of Management Studies,


Malith A.A.D. Amarasinghe

Department of Accountancy & Finance Faculty of Management Studies


Banks have diversified their income sources by performing new activities such as underwriting and

trading securities, brokerage and investment banking and other activities which generate non-interest

income to the bank. Non- interest income considered as an important source of income diversification for

the bank. The main objective of this study is to find the impact of income diversification on bank

performance special references to commercial banks in Sri Lanka by considering 11 year period from

2006-2016. Ten licensed commercial banks were selected based on highest market capitalization. Study

was done using quantitative research methods with deductive approach and the secondary data was

gathered from final financial statements of each bank. The performance measures are return on equity

and return on assets while income diversification measured by the diversification index. Additionally,

four control variables (bank size, financial leverage, growth rate and lending strategy) were used. Panel

data regression used as main analytical tool as the data set contain cross sections and time series nature

of the data. According to the findings of this study it can be concluded that there is a significant positive

impact of income diversification and bank performance in Sri Lanka (Both Return on Assets and Return

on Equity). As well as, bank size has a significant positive impact on bank performance in both Return on

Assets and Return on Equity models. Financial leverage has a significant positive impact on Return on

Assets and it insignificantly related with Return on Equity. However, growth rate and lending strategy

has insignificant impact on bank performance. Finally, it is concluded that income diversification has

significant positive impact on bank performance. Therefore, this study can be referred to banking

industry to improve overall goals, objectives, and ultimately to enhance their bank performance.

Keywords: Bank Performance, Diversification Index, Income Diversification





29

IMPACT OF THE ASSETS AND LIABILITY MANAGEMENT ON FINANCIAL PERFORMANCE; EVIDENCE FROM LISTED COMMERCIAL

BANKS IN COLOMBO STOCK EXCHANGE

Herath Mudiyanselage Tharangani Kumari Department of Accountancy & Finance, Sabaragamuwa University of Sri Lanka



Department of Accountancy & Finance, Sabaragamuwa University of Sri Lanka Belihuloya

[email protected]

Assets and Liability Management (ALM) is an important concept for every bank. ALM deals with the

optimal investment of assets in view of meeting current goals and future liabilities. It is related to the

management of the risks associated with liquidity mismatch, interest rates and foreign exchange

movements. Therefore, ALM is concerned with an attempt to match assets and liabilities in terms of

maturity and interest rate sensitivity to minimize interest rate and liquidity risks. Financial Performance

is a measure of how well a firm can use assets from its primary mode of business and generate revenues.

The purpose of this study is to explore the impact of the Assets and Liability Management on Financial

Performance of Licensed Commercial Banks in Sri Lanka. The secondary data were obtained from 10

Licensed Commercial Banks listed at Colombo Stock Exchange for the period of eleven years from 2006

to 2016. Return on Assets, Return on Equity and Net Profit Ratio were used to measure the financial

performance. Under AML that effect financial performance was based on the CAMEL approach which

includes Capital Adequacy, Asset Quality, Management Efficiency, Liquidity and Operational Efficiency.

The data was tested using panel regression methods to inference the results throughout Pool Ordinary

Least Square using Fixed Effect and Random Effect models. The findings reveal that Capital Adequacy,

Liquid Asset Ratio and Earnings have a significant positive impact on the financial performance whereas

Assets Quality and Management Efficiency have a negative significant impact on the financial

performance. It can be concluded that Assets and Liability Management has a statistically significant

effect on the financial performance of the commercial banks. It is recommended to follow the policies that

would encourage revenue diversification, reduce operational costs, minimize credit risk and encourage

banks to minimize their liquidity holdings.

Keywords: Assets and Liability Management, CAMEL Model, Commercial Banks, Financial Performance,

Panel Data Regression





30

IMPACT OF GOOD GOVERNANCE ON BANKING SECTOR DEVELOPMENT IN ASIAN REGION

S.A.M.D. Karunarathne

Department of Accountancy and Finance, Faculty of Management Studies Sabaragamuwa University of Sri Lanka

[email protected]

K.D.U.D. Fernando Department of Accountancy and Finance, Faculty of Management Studies


After the socio-economic revolution and the establishment of the free market institutions, the

development and improvement of living standards in post-transition economies are deemed to depend

more and more on the so called secondary ‘generating’ reforms, at the core of which is the good

governance. Drawing from this approach, this study seeks to address the role and the effect of the good

governance in the banking sector development of the Asian countries. The main objective of this study is

to evaluate the impact of good governance on banking sector development in Asian countries using a

panel of 23 countries from 2008-2015. It utilizes the system Generalized Method of Moments (GMM)

dynamic panel model estimator. The researcher creates a composite governance index (CGI) that

summarizes the existing six governance measurements in the Worldwide Governance Indicators (WGI),

using the Principal Components Analysis (PCA) method. Proxies for banking access, size, stability and

efficiency measure the banking sector development. Results indicate that governance indicators strongly

influence to the development of banking access and banking stability. Further study reveals that

governance indicators does not affected to the banking size and efficiency dimensions. Finally, study

found that good governance is very important increase the banking sector development to the Asian

region. Since, the relevant authorities should have to take the decision to increase the banking sector

development of the Asian and then they can enhance the financial sector development also.

Keywords: good governance; banking sector development; bank access; bank stability; bank size and

bank efficiency





31

THE IMPACT OF ENTERPRISE RISK MANAGEMENT ON UNDERWRITING PROFIT IN INSURANCE COMPANIES IN SRI LANKA

S.P. Kasun Dhananjaya Senanayake



K.D.U. Dinesh Fernando



Insurance industry is one of important industry which manages their risk in the proper manner and ERM

is the modern concept which used by insurance companies to manage their risks. This study was

conducted to examine the impact of enterprise risk management on underwriting profit in insurance

companies in Sri Lanka. There are seven factors were identified under the Enterprise Risk Management.

This study was done using quantitative research method with the deductive approach as well as

explanatory research design. The secondary data was collected from the sample of nine insurance

companies in Sri Lanka for the period of six years from 2010 to 2015. The drawing sample data was

tested using panel data regression inference the results throughout pool ordinary least square, fixed

effect and random effect models. According to the finding of this study chief risk officer, risk committee,

independent board of directors, solvency margin, leverage and external stakeholders showed a negative

relationship between underwriting profit and only size showed a positive relationship between

underwriting profit. Moreover, the result of this study found that there was a significant negative impact

from solvency margin on underwriting profit and, there was a significant positive impact on the size on

underwriting profit in insurance companies in Sri Lanka.

Keywords: Risk Management, Enterprise Risk Management, Underwriting profit, Insurance Industry




32

Economics



33

A STUDY OF THE CHALLENGES FACING THE CASTE-BASED ECONOMIC IN CONTEMPORARY SOCIETY

K.G. Keerthi Prabhash Department of Philosophy


W.Thilini Hayasinth Dayananda

Department of Sociology University of Kelaniya, Sri Lanka

[email protected]

There was a strong, self-sufficient social and economic pattern based on the system of caste in the

traditional society. However, since later changes in the social system caused by foreign invasions, the

caste-based social and economic system collapsed. Therefore, the skillful craft of knowledge collapsed,

and the social system based on it broke up. But Craftsmen engaged in traditional jobs can also be seen in

modern society. The problem of the research was, why does the caste-based economy fail to use modern

technology? The main purpose of this research was to understand the reasons behind the caste economy

not to use modern technology. Palpola village in Millaniya secretariat division of Kaluthara district of

Western Province has selected as the research field. This is a comparative study about and the former

study which has done over six decades and the prevailing condition (Professor Bryce Ryan's research

"Sinhalese Village" - 1958). In this research comparative method and historical method were used as the

research methods. Observation, Interviews and survey methods were used as the techniques of collecting

data. Primary data were obtained through field study and secondary data were obtained by referring the

relevant books and articles including Professor Bryce Ryan's book (Sinhalese Village). The results of the

research that modern technology has not been used because of the caste traditions. Therefore, their

products did not fulfill modern requirements.

Keywords: self-sufficient, caste, foreign invasions, skillful craft, modern society





34

DETERMINATION OF EFFICIENT AND INEFFICIENT UNITS FOR SWIFTLET EDIBLE-BIRDSNEST PRODUCTION IN JOHOR BAHRU,

MALAYSIA BY USING DATA ENVELOPEMENT ANALYSIS

Rabiatul Munirah Alpandi Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia

[email protected]

Mohd Shahwahid Othman Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia

[email protected]

Fakarudin Kamarudin Department of Accounting and Finance, Faculty of Economics and Management, Universiti Putra Malaysia

[email protected]

Fatin Farazh Ya’acob Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia

[email protected]

Muhammad Syafiq Mohd Salam Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia

[email protected]

Swiftlet Edible-Birdnest (EBN) industry considers as a priority industry under the New Economic and

Transformation Program (ETP). Under National Key Economic Area (NKEA), the production of EBN is

one of Entry Point Project (EPP) because of its potential contribute towards national economic growth.

This industry is expected to contribute more than RM5.2 billion to the Gross National Income (GNI) and

aims to produce 40 percent of global market demand. The rise in the number of swiftlet ranches leading

to a year-on-year rise in EBN production is testament to the beguiling market demand. However, the

industry faces a major hurdle where about 70 percent to 80 percent of swiftlet ranches are regarded as

inefficient since failed to achieve 1.36kg of nest after one year of operation due to a lack of

understanding and knowledge in the management of swiftlet ranching. This poses a serious threat to the

sustainable development of the industry. In order to boost the production of EBN to its track, level of

efficiency of swiftlet ranching in Johor Bahru has been measured using Data Envelopment Analysis

(DEA) and the result reveal that the efficiency of management inputs (electricity, water irrigation,

human labour and pesticides) of swiftlet ranching more important compared to its scale or size. The DEA

result also suggests there are a total of 15 efficient ranchers that can be as benchmark for inefficient

ranchers. By applying the DEA, an optimum input energy level required only 18.04MJ. As such, total

energy saving that can be made are 286.69% if the ranchers are efficient in using their input

management resources. From the empirical result of second stage using the Tobit regression, the usage

of planks and water irrigation are important determinants that can influence total management

efficiency of swiftlet ranching.

Keywords: Sustainable, Data Envelopement Analysis (DEA), Swiftlet, Edible-Birdnest (EBN), Johor Bahru







35

A STUDY ON THE IMPACT THE GLOBALIZATION HAS CAUSED TO CHANGE THE DIRECTION OF THE SRI LANKA’S ECONOMY

W. M. Sarasi Chaya Bandara

Department of Political Science University of Kelaniya


Globalization can be known as, the entire global economy becoming a single economical market. As a

result of the closeness between economics, societies, cultures and technologies, there had surfaced a

strong unity between the nations of different countries in the world. With such and understanding among

them, it has been identified, there is a free exchange of technologies, capital goods and services, with one

another. Trade, money, aid, immigration and ideas are five things in existence, that interchange between

different countries, giving birth to a globally spread economy and giving directions, are identified as the

results of globalization. From that perspective the entire globalization can be called an economy activity.

The modern societies which are coming to the forefront, the competition of the capitalist market and the

development of multinational companies, give rise to the fast growth of globalization. The complexity of

this research study, lies in verifying how the globalization made an impact on the economy of Sri Lanka,

to create a notable change. For the purpose of this study, information about secondary sources such as

books published on the topic, magazines, letters, reports and information from the internet have been

obtained. Also, qualitative facts, descriptive methodologies, quantitative information, simple statistical

methods and a variety of other methods were used. From the period Sri Lanka came under British

Colonial rule and up to 1945 during the 2nd world war, and from 1945 to 1970 and 1977 when the open

economy was introduced to the country the globalization continued to influence the economic transition

of Sri Lanka directly. Specially the economic transformation that took place within the country, and the

development of the economy and the conditions prevailed, it is quite clear globalization played a direct

role.

Keywords: Globalization, Sri Lanka, Economical Transformation, Market economy




36

RIGHT LIVELIHOOD (SAMMĀ ĀJĪVA) AS AN ALTERNATIVE MEANS FOR ECONOMIC INEQUALITY AS DEPICTED IN EARLY BUDDHISM.

Moragaswewe Vijitha

Department of Buddhist Philosophy Faculty of Buddhist Studies, Buddhist and Pali University of Sri Lanka

[email protected]

The main objective of this paper is to illustrate the importance of Right Livelihood (sammā ājīva) in

Buddhism as a means of replacement for today's economic inequality. Today, economic crisis has become

one of the most troubling social issues in the modern world. Due to economic crisis, crimes, misconduct,

social stress, environmental pollution, ethnical wars are prevalent all over the world. The Buddhist

doctrines concern about the practical issues of suffering like the socio-economic problems in the world.

The Buddha obviously realized that it was very difficult to lead a spiritual way of life without basic human

needs such as food, cloth, shelter and medicine. The Buddha, as a peerless economist, gave a number of

practical exemplified teachings, contributing the stable economic development. Earning is the necessary

part in every human being. From the Buddhist perspective, it should be based on Right Livelihood

(sammā ājīva). Buddhism maintains that mal-distribution of goods and services are likely to create

economic inequalities, resulting in the division of the world into rich and poor, the haves or have-nots.

This has been created a great economic pressure in society. The rulers are expected to alleviate poverty

by making planned gifts of money to put people on their feet and enable them to make a start in life on

their own as Buddhism concerns. The Buddha speaks of managing wealth which earned with earnest and

hard from acceptable ways where no violating the social procedure is one of the crucial segments to get

best use of it. The Buddhist discourses are of the opinion of the importance of rightly gained wealth and

its utilization. The suttas like Singāla, Chakkavattisīhanāda, Kūtadanta, Viyaggapajja, Ujjaya, Pattakamma,

Ina, Kula, Addhammika, Dhanñjāni, Rāsiya, Vanijjā, Anana are expected to be used in this connection.

Keywords: Buddhism, Economics, Extremes Inequality, Right Livelihood



37

ESTIMATING MARSHALLIAN AND HICKSIAN ELASTICITIES FOR RED MEAT, FISH AND EGGS IN SRI LANKA: AN ALMOST IDEAL DEMAND

SYSTEM APPROACH

A. Aruna Shantha Senior Lecturer in Economics,

Department of Economics and Statistics, Sabaragamuwa University of Sri Lanka

[email protected] This is a micro-data based study of demand for red meat, fish and eggs in the framework of a static and

dynamic, utility maximizing that enables the provision of knowledge on the interrelatedness among the

competing commodity groups in a complete demand system. Due to high prevalence of dietary diseases

and malnutrition, it is essential to assess meat and fish consumption pattern in urban, Rural and Estate

sector in Sri Lanka. As a developing country, Sri Lanka, which has a lower-middle-income economy, is

now experiencing a nutritional transition along with under-nutritional, overweight and obesity. Red meat

and fish can make and important contribution to nutrient intakes in the diet and it provide a number of

essential nutrients including protein, zinc Vitamin B 12 and etc. Thus, this is an urgent need for policy

makers and scholars of food sector in Sri Lanka to have knowledge on the spending behavior of the

households in their response on changing consumption determinants, like relative prices, income as well

as the changers in the demography of households themselves during last four decades. The study used the

Linear Approximation of the Almost Ideal Demand System (LA/AIDS) to estimate Marshallian and

Hicksian price elasticity and expenditure elasticity for beef, chicken, pork, eggs and fish. In application,

the AIDS model has been used in linearized form, where the linearization is accomplished by the choice of

a price index to replace the price aggregator function that is within full nonlinear model. This study

employed the cross-sectional household consumption/expenditure micro data set from so called

Household Income and Expenditure Survey (HIES) for the period, from 1986 to 2016 responding three

sector Urban, Rural and State in Sri Lanka. The estimated Marshalina and Hicksian elasticities of red meat,

chicken fish and eggs are found to be price elastic in both rural and state sector. While in the urban sector,

Chicken and eggs are price inelastic and other red meat and fish are price elastic. Very poor substitution

shown among red meat and fish in all sample category and income elasticity reflected luxury behavior of

fish red meat and chicken in both rural and state sector. Using a dynamic generating process the study is

able to calculate consumer speed of adjustment and found that consumers were able to adjust their

consumption to the long-run equilibrium considerably faster. So, by increasing the price of red meat, fish

and eggs, regarding to price elasticity which mentioned above, people will adjust the consumption

behavior and decrease red meat fish and eggs demand. Therefore, in pricing policy and during subsidy

removal or tax changers is respective industry the government of Sri Lanka should be more careful for

those goods which are related to people nutrition and health.

Keywords: Nutritional, Almost Ideal Demand System, Marshallian Demand, Hicksian Demand, and Price

Elasticity




38

Environmental Management



39

A STUDY OF THE REASONS OF THE GARBAGE PROBLEM IN SRI LANKA AND A PROPOSAL FOR A RECYCLABLE WASTE MANAGEMENT SYSTEM

Sudhara Karagampitiya

Business Department Informatics Institute of Technology

Colombo, Western province, Sri-Lanka [email protected]

M. Alroy Mascrenghe

Senior Lecturer and MSc BA - Course Coordinator Business Department

Informatics Institutute of technology Colombo 04, Sri Lanka.

[email protected]

On par with the rapid increase of urbanization in the current society, management of the generated solid

waste has become a severe problem in Sri-Lanka. Rapid growth of population has led to a proportionate

increase of waste generation and the composition of the said waste has varied greatly with the complexity

of the technological innovations. According to the estimations done, the solid waste generated per day per

capita in Sri-Lanka is 1-0.4 kg. But only around 50% of this garbage produced, is collected by local

authorities. The western province is deemed responsible for more than 60% of the waste created island

wide. Uncollected and uncontrolled waste leads to many issues – top among them is the spread of

diseases like Dengue. From individual households to commercial business entities everyone should be

responsible for the waste produced by them, themselves and if handled properly this waste could be a

profitable venture. There are a number of recycling companies in Sri-Lanka, recycling a variety of items

spanning across plastic bottles, batteries and electronic equipment. But most of the citizens are not aware

about the existence of such companies let alone how to reach them and how they are operated. The

objective of this project is to study the reasons for the garbage problem in Sri Lanka and propose a

solution that will bridge gap between the waste generators and the waste recyclers. An IT solution will be

produced which can be accessed by all citizens easily.

Keywords: Waste management, Recycling companies, Sri-Lanka, Waste generators, Disposal





40

EFFECT OF CLIMATIC FACTORS TO THE AIR QUALITY LEVELS IN MONTANE PROTECTED AREAS OF SRI LANKA: A CASE STUDY IN

HORTON PLAINS NATIONAL PARK

Danushka C. Ranathunga Department of Tourism Management, Sabaragamuwa University of Sri Lanka

[email protected]

Enoka P. Kudavidanage, Department of Natural Resources, Sabaragamuwa University of Sri Lanka

[email protected]

H.D.S Premasiri Environmental Division, National Building Research Organization,

Ministry of Disaster Management [email protected]

Horton Plains National Park is considered as highly sensitive ecosystem in montane region of the island

nation. Currently, the park experiencing several threats to its unique biota such as spreading of alien

invasive species, forest fires, soil erosion, forest die back and etc. Declining air quality levels in the park

likely poses a major problem in the future. Several research works have been conducted to study on

atmospheric conditions in the region such as ambient air quality levels of the park and effect of visitor

presence to the air quality levels. Although the climatic factors play a major role in the atmospheric

condition only few attempts have been carried out by the previous scientists to investigate effect of

climatic factors on air quality levels in the park. This research work describes the relationship between

climatic factors and ambient concentrations of NO2 and SO2. Air quality levels were determined by

incorporating passive air sampling technique at twelve sites including two background sites within the

park boundaries and then, correlated with climatic factors such as temperature, rainfall and relative

humidity. Insignificant negative correlations were determined for NO2 levels and rainfall and for SO2

levels insignificant positive and negative correlations were obtained. Insignificant positive and negative

correlations were obtained for average temperature, average relative humidity and ambient

concentration levels of NO2 and SO2. Since all the coefficients are insignificant there is no enough

evidence to conclude that there is an effect of climatic factors to the air quality levels in Horton Plains

National Park. Negative correlations may be attributed to the dissolution of pollutants in atmospheric

water vapor which lower the pollutant levels in ambient air. Positive correlations may be due to climatic

factors such as localized wind effects, rainfall pattern, etc or other factors such as transboundary

pollution impacts. It is recommended to conduct further research to identify the complex behavior of

climatic factors on air quality levels especially in environmental sensitive ecosystems such as protected

areas.

Keywords: Climatic Factors, Horton Plains National Park, Nitrogen Dioxide, Sulphur Dioxide






41

ADOPTION OF GREEN SUPPLY CHAIN MANAGEMENT (GSCM) PRACTICES AND THEIR IMPACT ON CORPORATE PERFORMANCE;

WITH SPECIAL REFERENCE TO RUBBER PRODUCTS INDUSTRY IN SRI LANKA

Chalani Marasinghe

Department of Tourism Management, Faculty of Management Studies Sabaragamuwa University of Sri Lanka

[email protected]

Manori P. Kovilage Department of Tourism Management, Faculty of Management Studies


This study presents one of the earliest surveys on GSCM practices in Sri Lankan rubber products industry.

The main objective of this study was to survey the impact of green supply chain management practices

adoption on corporate performance in Sri Lankan rubber products industry. The population of the study

was all the firms in Sri Lankan rubber product industry and it composed of 187 firms. The study’s sample

consisted of 123 rubber products manufacturers and random sampling technique was followed. A

structured questionnaire was used to collect data and they were statistically analyzed using correlation

and simple linear regression analysis. The study found that majority of firms in Sri Lankan rubber

product industry were in trial level which means the awareness on green supply chain management was

quite good. Further the study concluded that green supply chain management practices had a significant

positive impact on environmental and social performance while it showed an insignificant positive

impact on economic and operational performance. The overall results concluded that green supply chain

management practices adoption has a significant positive impact on corporate performance. The study

focused only the rubber products manufacturing industry and was carried out in the Sri Lankan context.

So other researchers have the possibility to apply this study in other industries and countries. Also, the

study offered some insights on the types of GSCM practices on which firms need to be adopted to improve

the targeted performance dimensions.

Keywords: Green Supply Chain Management; Environmental Performance; Economic Performance;

Operational Performance; Social Performance





42

FACTORS THAT AFFECT GREEN PURCHASING INTENTION OF SRI LANKAN CONSUMERS IN PURCHASING FAST MOVING CONSUMER

GOODS (FMCG).

Ishara Madhubhashini Department of Tourism Management, Faculty of Management Studies


Manori P. Kovilage

Department of Tourism Management, Faculty of Management Studies Sabaragamuwa University of Sri Lanka

[email protected]

Sri Lanka is one of the countries which are facing many environmental problems such as flooding,

landslides, climate changing, droughts, land degradation, air & water pollution and many more. Through

these environmental problems the quality of the life of people in Sri Lanka is highly affected. At present,

people have understood that they have to change their intentions and behaviors towards the

environment to avoid or mitigate the environmental pollution. Green purchasing intention is one of such

initiation that change the traditional buying behavior of human beings and put a start for green

purchasing. There are many factors which affect to the green purchase intention of consumers. These

factors can be changed due to many reasons and there may have many more factors which are not clearly

identified yet. Hence this study focused to analyze the factors that affect green purchasing intention of Sri

Lankan consumers. The primary objective of this study was to identify the factors that affect green

purchasing intention of Sri Lankan consumers in purchasing Fast Moving Consumer Goods (FMCG). The

population of the study was all the consumers who were older than 18 years in Rathnapura district and

the sample of the study consisted of conveniently selected 384 consumers in Rathnapura District. Data

collection was done using a structured questionnaire and they were statistically analyzed using

correlation and multiple regression analysis using SPSS 21 and Minitab 14. The results showed that

environmental concern, environmental knowledge, pro environmental behavior, environmental attitude

and social influence affected green purchasing intention of consumers. It was recommended that the

government, marketers, academics and policy makers should contribute to introduce new policies to

improve the green purchasing intention of Sri Lankan consumers. Also, their contribution towards the

improving the environmental friendly attitudes, knowledge, and skills of the consumers is significant.

Keywords: Green Purchasing Intention, Fast Moving Consumer Goods, Environmental Concern





43

General Management



44

FACTORS AFFECTING THE ACADEMIC PERFORMANCE OF THE

UNDERGRADUATE STUDENTS, WITH SPECIAL REFERENCE TO THE

UNIVERSITY STUDENTS IN SRI LANKA

R. M. U. R. K. Rathnayaka University of Peradeniya

Kandy, Sri Lanka [email protected],

Education has become one of the most emerging and competitive industry in Sri Lankan market. In recent

years many private universities and education institutes are established in the country in order to make

more opportunities to get degrees and other qualifications. The advanced level exam is the most

competitive exam in the Sri Lankan education as here mention due to many reasons such as the key

qualification to enter into a state university, more important for the future career and high competition.

The university education is one of the most important exams after the Advanced Level exam in Sri Lanka.

Since the entire undergraduates who got good marks in their Advanced level it makes more and more

competitive. As found by the number of researchers in their studies show, there are many factors that are

affecting for the academic performance of the undergraduate students. So the focus of the study is to

identify the factors that affected for the academic performance of university students with special

reference to university students in Sri Lanka. According to this study, the academic performance has

measured through better exam results (GPA). Stress, attitude, exam preparation, writing exam paper and

the time management are the independent variables of the study. Based on the variables, five hypotheses

have developed. University of Kelaniya has taken at the research site of the study and 200 students have

selected through the sampling method of non-probability convenience sampling. Both primary and

secondary sources used for the study and the primary data collection have been conducted via a self-

administered questionnaire. Descriptive data analytics enriched with correlation analysis have used to

analysis data with the aid of SPSS. The study findings showed that there’s a positive, strong relationship

between the time management and the academic performance. Also, it has found that, there’s a weak

positive relationship between exam preparation, stress, attitude and writing exam paper between the

academic performances of the students.

Keywords: Stress, Attitude, Exam Preparation, Time Management, Academic performance




45

PATHWAY TO WOMEN ENTREPRENEURSHIP DEVELOPMENT THROUGH TECHNOLOGY TRANSFER: THE EFFECT OF

ENVIRONMENTAL FACTORS. (CASE STUDY OF VIDATHA PROGRAM, SRI LANKA)

D.W.C P. Dambugolla

Ministry Of Foreign Affairs, Sri Lanka

[email protected]

Every aspect of the world is changing rapidly. Political and economic transformations seem to occur

everywhere. Countries converge into demand economies; dictatorships move to democracy and create

new institutions. These changes have created economic pathways for women who expect to operate and

own businesses. Even though women who gradually start their own businesses to contribute large

portion in terms of national economy, the unique skills of women entrepreneurs have not yet been

recognized. Therefore, through this research the effect of environmental factors on women's

entrepreneurial characteristics in Sri Lanka has been examined. The study was conducted with the

VIDATHA program was initiated by the Ministry of Science, Technology and Research in mid-2000. This

analytical study showed that there were similarities and differences in the experiences of women

entrepreneurs. And women entrepreneurs have been able to run and succeed in the business, despite the

work-family conflicts faced by them. The results have shown that support for service companies and

competitiveness are significantly correlated with the environmental factor is the availability of funding

for the development of women entrepreneurship. The characteristics that make women at risk of

business can easily be improved through the activities of business support services, followed by

independence, self-confidence and locus of internal control. The business support service is the main

factor influencing the development of female entrepreneurship. Competitiveness and government

policies have a negative impact on the development of female entrepreneurship.

Keywords: Women Entrepreneurs, Entrepreneurial traits, Entrepreneurial environmental Factors




46

AN ASSESMENT OF THE ROLE OF THE INTERNET AS A TOOL FOR SEARCHING A JOB BY GENERATION “Z”

Janani M. Lasanthika Department of Business Studies and Finance

Wayamba University of Sri Lanka [email protected]

Neranjala S.M. Tennakoon

Department of Business Studies and Finance Wayamba University of Sri Lanka

[email protected]

U.T.M.L.C. Tennakoon Department of Business Studies and Finance


Among the uses of the Internet for businesses, getting fulfill the manpower requirements becomes a

topmost use of the Internet due to its cost efficiency over conventional recruitment strategies. Followed

by this organizational practice, many individuals use the Internet as a tool for searching & selecting a job.

Importantly, generation “Z” in which the Internet penetration is in height, extensively use the Internet for

finding a job with right match. Yet, the role of the Internet as a tool for searching jobs is seldom addressed

in existing scholarly outcomes. Thus, the objective of this study is to ascertain empirical evidences on the

role of the Internet as a tool for searching a job in the context of generation “Z”. An explanatory study was

conducted with the participation of randomly picked 151 generation “Z” respondents who represent the

Ihaal Udugampola grama Niladhari division of Gampaha district of Sri Lanka. Data gathering technique

was a survey questionnaire of 41 items in which the responses are ranked based on a five Point Likert

scale. Four key determinants namely; security, posting, service quality and convenience were found to be

critical for the effectiveness of Internet as a tool for probing for a job by generation “Z”. Further, the

results of confirmatory factor analysis figured out that several indicators determine the effectiveness of

the internet as a tool for selecting a job by generation “Z”. While stressing the empirical evidence on the

role of the Internet as an effective tool for searching jobs, the findings carry practical implication of

strengthening security, convenience, posting and service quality of the web sites those function as job

agencies. Future studies are proposed deployment of representative sample for swelling the

generalizability of the findings.

Keywords: Internet, Generation “Z”, searching jobs






47

ISSUES FACED BY TRADITIONAL COASTAL FISHERIES INDUSTRY IN NEGOMBO FISHRIES COMMUNITY

Menikran Pathiranage Manoj Indrakumara Chandrasena

[email protected]

This research mainly examines the issues faced by the traditional coastal fisheries industry in Negombo

fisheries community. Coastal community encounters many issues at present. Mainly poor financial

situation and other facing problems from Colombo Port City project etc. Hence based on these issues the

whole economic and social problems have been generated in fisheries community. There are three

objectives in this research; to analyze issues faced by traditional coastal fisheries industry in Negombo

fisheries community, to study the present states of traditional see fisheries industry with their livelihood

and identify the solutions which the government implement for develop this industry etc. The research

has been performed by using primary data gathered from mainly Focus Group Discussions, Interviews

and Participatory Observations. There are 100 members has been interviewed in Focus Group

Discussions. Unstructured interviews have been performed with officers related to fisheries sector.

Participatory observations performed by using experiences by observing and dealing with livelihood of

fishermen and their families. Secondary data has been gathered from publications. Both descriptive

method and statistical method used for analysis Qualitative and Quantitative data in respectively. When

analyzing data the researcher has been identified main twelve reasons for affecting to traditional coastal

fisheries industry in Negombo fisheries community. Mainly the participants have been emphasized that

adverse effects from Colombo Port City project, coastal environment pollution, restriction nets and

instruments, lack of assistance and substitutes etc. The researcher suggested some solutions for

implement the discussed issues, like the Government intervention should necessary for buying fisheries

boats and related instruments, stop adverse environmental influences from Port City project

immediately, stop the environmental pollution, strictly follows the laws and regulations for the

sustainability of the biodiversity both sea and land, providing welfare facilities and Insurance schemes for

fisheries communities etc.

Keywords: traditional, coastal, development, issues




48

WOMEN ENTREPRENEURIAL EMPOWERMENT IN MALAYSIA

Samslnar Md. Sidin Faculty of Economics and Management

Universiti Putra Malaysia Kuala Lumpur, Malaysia

[email protected]

Ravindran Ramasamy Graduate School of Business

Universiti Tun Abdul Razak (UNIRAZAK) Kuala Lumpur, Malaysia

[email protected]

Farhana Tahmida Newaz Graduate School of Business

Universiti Tun Abdul Razak (UNIRAZAK) Kuala Lumpur, Malaysia

[email protected] Entrepreneurial activities by women are pertinent as a saying goes like this, ‘educate a woman, the entire

family is educated', in the same vein 'provide an opportunity to be an entrepreneur to a woman, then in

the entire country there would be some entrepreneurial activity’. Because it is easy for woman to

communicate, convince and start entrepreneurial activities. As such, this paper analyses and reports, in

Malaysia among women how far this entrepreneurial activity popular? What role they play? What are

their concerns, fear and impediments? Where they get motivation, help and assistance? Are the

entrepreneurial educations adequate at present and what are their expectations about entrepreneurial

education? What are the perceptions and capabilities of women in opportunity recognition? What is the

present status of women in Malaysia in Total of early stage entrepreneurship, baby business, startup, and

established Business? Finally, what is their firm growth rate and job creation rate? To answer all the

above questions, this research uses the data collected by Global Entrepreneurship Monitor (GEM) from

year 2010 to 2017 among female Malaysian entrepreneurs. A total of 2033 respondents in different parts

of Malaysia were involved in this study. From the result, it observes that motivation, education and help

from the government are growing, while the fear of failure and discontinuance are declining. Though it is

a welcome sign, still the stakeholders have to do a lot to improve the women entrepreneurial activities in

Malaysia.

Keywords: Women entrepreneurship, entrepreneurial empowerment, Malaysia






49

AN ALGORITHM TO ASSIGN INVIGILATORS TO EXAMS TO MINIMIZE THE MAXIMUM INDIVIDUAL LOAD OF INVIGILATORS

Jayalal Wettasinghe

Department of Manufacturing Technology, University of Vocational Technology

Ratmalana, Sri Lanka [email protected]

Scheduling exams and assigning invigilators to the exams are important activities for any educational

institute. Usually, heuristic methods are used to accomplish this task and only the invigilator’s availability

at the required time slot is often taken into consideration. However, there are many other factors which

will affect to the individual load of invigilators. By considering such factors and suitably determining the

weights of the exams based on those factors, this task can be accomplished in a scientific way. Some

mathematical models have already been developed to address this problem. In this study an algorithm is

developed based on standard job shop and flow shop scheduling algorithms to assign exams to

invigilators such that the total maximum individual load of invigilators is minimized. Weights of the

exams determined by using Analytic Network Process (ANP) in the study. The algorithms are developed

mainly for two cases i.e., case 1: required number of invigilators is one, case 2: required number of

invigilators is more than one and fixed. The results are compared with the results of previously published

research works and found that the proposed algorithm gives improved results. Assigning invigilators to

exams is one application and the algorithm can be used in other assignment problems having similar

characteristics as in exam scheduling problems.

Keywords: Invigilator scheduling, Scheduling algorithms, Exam scheduling




50

RISK MANAGEMENT IMPLEMENTATION OF MANUFACTURING COMPANIES IN MALAYSIA

Norafizza Mahat & Mazlina Mustapha


43400 UPM, Serdang, Selangor, Malaysia [email protected]

Manufacturing companies face various undesirable and uncertain events and risks in their day to day

operations. These risks would affect their performance and sustainability in the long run if appropriate

actions are not taken. Over the years, risk management has been identified as a significant process in an

organization. It is claimed that risk management is intended to control the level of risk and to mitigate

their effects, and being part of organisational activities, which help the organisation to achieve its

objectives. Thus, this study aims to examine how risk management assist organisations to face the crisis

in their operations. Primary data was used to collect the data. Questionnaires were distributed to 100

manufacturing companies in central region of Malaysia. The findings of the study indicate that risk

management activities significantly help the manufacturing companies in solving manufacturer-suppliers

relationship, face challenges from competitors and manage economic changes. Perceived benefits and

challenges of risk management in manufacturing companies are also discussed. This study contributes to

the risk management literature especially relating to manufacturing sector in a developing country.

Keywords: Risk assessment, risk management, manufacturing companies, Malaysia




51

DETERMINANTS OF THE DEMAND FOR CABLE TV SERVICES IN THE ERA OF INFORMATION COMMUNICATION TECHNOLOGY

P.A.D. Dilini Randika

Department of Accounting and Finance South Eastern University of Sri Lanka

[email protected]

This research investigates the determinants of the demand for cable TV services in the era of

Information Communication Technology in reference to dialog cable TV pearl package. Data for the

study were collected from January, 2015 to March, 2018. Very recent data were gathered to enhance

the relativeness of the results for the current era of the information technology. The process includes

identifying the significant independent variables that determine demand of the selected product,

analyzed data using multiple linear regression and Log-linear regression forward selection method to

identified significant variables which best fit for the demand of Pearl TV package. Based on the

analysis performed, it is noted that Log-linear regression model is the most appropriate model to

explain the relationship between the dependent and the independent variables of the Pearl TV

package. R square of the study shows 88.93% variation of the dependent variables is explained by the

model. The F ratio indicates that the model as a whole is significant at the 5% significance level. And

price of complementary product (X7), annual household income (X6) and Tax component (X3)

variables are explain the dependent variable for the demand of cable TV in reference to dialog PLC

pearl package.

Keywords: Demand, Cable TV, ICT




52

DOES WORK ENVIRONMENT MATTER IN EMPLOYEE PRODUCTIVITY? EVIDENCE FROM PUBLIC SECTOR IN SRI LANKA

T.A.I. Priyadarshani

Department of Business Management Faculty of Management Studies Rajarata University of Sri Lanka [email protected]

A.K. Anjala

Department of Business Management Faculty of Management Studies Rajarata University of Sri Lanka

[email protected] This study is mainly intended to investigate the impact of work environment on productivity of

Management Assistant employee of Divisional Secretariat in Anuradhapura District. As a quantitative

study complemented by explanatory research design the study collected data from 80 Management

Assistant employees in Divisional secretariats in Anuradhapura district by using simple random method

employing a self-completion questionnaire to analyses the impact of as Physical work environment,

Psychological work environment and Social work environment on employee productivity. The

questionnaire consisted with two parts and first part was devoted to collect the demographic information

of respondents as age, gender, education and experience while the second part was devoted to assess the

work environment and productivity. Work environment and productivity measured by employing five

point Likert scale. Data analysis was performed by using Descriptive statistics, ANOVA, correlation and

regression analysis by using Statistical Package for Social Sciences (SPSS) 21.0 version. As per the findings

Psychological work environment and Social work environment show significant impact on employee

productivity the researcher recommended that public sector productivity can be increased by asserting

high consideration on both Psychological work environment variables (salary, health and safety, job

security) and social work environment (communication, performance feed- back, supervisory support,

decision making, workplace culture and co-workers) in the divisional secretariat offices in Anuradhapura

district.

Keywords: Productivity, Physical Work environment, Psychological Work environment, Social

Work environment, Public sector employees





53

THE IMPACT OF RISK CONTROL METHODS ON BUSINESS CONTINUATION: EVIDENCE FROM SME IN KALUTARA

Thibbotuge Piyanga Kumari

Department of Accountancy & Finance Sabaragamuwa University of Sri Lanka



Department of Accountancy & Finance, Sabaragamuwa University of Sri Lanka


Currently both large companies and small and medium companies face various types of risk when they

conduct their day-to-day business operations. These risk factors highly affect to their business

continuation. Many Small and Medium-sized Enterprise (SME) start their business from time to time but

only few of these businesses can survive for a longer period. One of the major reasons for the failure of

these business is the poor risk controls methods that they are following to minimize the losses. The aim of

this research is to determine the impact of risk control methods on business continuation with the

evidence from SME in Kalutara. Risk Avoidance, Risk Prevention, Risk Reduction and Risk Transferring

were used as independent variables. Purposive sampling method was used to select the sample of 100

SMEs out of the 109 SME manufacturers registered in Kalutara Divisional Secretariat. Ten direct-

interviews were conducted with the owners of SME and a sample survey was carried out using structured

questionnaires to collect primary data. Thematic analysis and Multiple Regression analysis were used to

assess the impact of risk control methods on business continuation of SME. Findings of thematic analysis

reveal that most of businesses face different kind of disasters and they highly affect to their business

operational activities. Many SME do not use safety equipment for risk reduction and even they do not

consider about it. However, SME should consider their employee’s safety. The results of regression

analysis reveal that there is statistically significant impact of risk reduction and risk prevention on

business continuation while risk avoidance and risk transferring do not have a statistically significant

impact on business continuation. Therefore, policy makers should pay attention to motivate SME owners

to follow sound risk control methods in their business premises for the log-term success.

Keywords: Business Continuation, Kalutara, Risk Control Methods, SME





54

IMPACT OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON LOCAL COMMUNITY: SPECIAL REFERENCE TO THE APPAREL

INDUSTRY

Sulakkhana Sinhabahu Department of Tourism Management


[email protected]

Athula Gnanapala



Business organizations, in the globalized world, play a vital role in the development process of any

country. The contributions may be both financial and nonfinancial. The state and private sector

organizations make attempts to build a better community relation through different programmes and

that also known as the Corporate Social Responsibility (CSR). CSR activities will lead an organization

towards a good corporate citizen while enhancing the community wellbeing. However, there is a criticism

that business firms will engage in CSR activities to enhance their popularity rather than providing

benefits to the community and other stakeholders. Therefore, the current study investigates the impact of

CSR practices on Local Community with special reference to the apparel industry in Horana divisional

secretariat of Sri Lanka. The target population for the study was the residents in Horana divisional

secretariat and nearly 113,000 peoples. A questionnaire survey was conducted using 384 respondents

through stratified random sampling method. The respondents were the beneficiaries of CSR programs

initiated by 3 different garment factories in Horana area. A multiple regression was performed to

investigate the impacts of CSR activities. Pertaining to the previous research findings, the current study

brought evidence to a significant positive impact of legal responsibility and philanthropic responsibility

on community development. In contrast to the previous research findings, this study highlighted that

there is no any impact of economic responsibility on community development and the ethical

responsibility is also showing a negative impact. Consequently, this study will help organizations to

rethink about their CSR programs and its impact on the target groups. This study creates a novel

contribution to the existing literature as well as to the apparel industry to develop programs which

deliver the expected benefits to the local community.

Keywords: corporate social responsibility, community development, local community





55

A STUDY ON THE IMPACT OF PSYCHOLOGICAL CAPITAL ON ORGANIZATIONAL IDENTIFICATION OF SALES PERSONS

(WITH SPECIAL REFERENCE TO C GRADE CARGILLS FOOD CITY OUTLETS IN COLOMBO DISTRICT)

Maheshi M.C. Rajapaksha

Department of Business Management Faculty of Management Studies, Sabaragamuwa University,

Belihuloya, Sri Lanka [email protected]

L.D. Kalyani

Department of Business Management Faculty of Management Studies, Sabaragamuwa University of Sri Lanka,

Belihuloya, Sri Lanka [email protected],

In today’s context human resource is considered as a valuable resource for any business organization as

business organizations are operating in a very competitive environment. Hence, researcher investigated

the research problem with related to the organizational identification of sales persons. The current study

was aimed at investigating the impact of Psychological Capital and its dimensions (Self-efficacy, Hope,

Optimism, Resilience) on Organizational Identification of sales persons of C grade Cargills Food City

outlets. Since sales persons play a vital role in an outlet, they were treated as the target population of this

study. There were 116 sales persons in C grade Cargills Food City outlets in Colombo district. The

researcher considered entire population for the study as it was considered census method for collecting

data. Data were collected through standard questionnaires developed by previous authors. Simple

regression analysis and multiple regression were performed to investigate the impacts of the variables

interested. Organizational Identification acted as the dependent variable where Psychological Capital and

its dimensions (Self-efficacy, Optimism, Hope, and Resilience) were the predictors of the study. Pertaining

to the previous research findings, the current study also brought evidence to a significant impact of

Psychological Capital, Self-efficacy, Hope and Resilience on Organizational Identification. In contrast to

the previous research findings, this study highlighted no any impact of optimism on organizational

identification.

Keywords: Psychological Capital, Organizational Identification





56

INFLUENCE OF KNOWLEDGE SHARING ATTITUDE IN SRI LANKAN

SOFTWARE COMPANIES

Prabodha D.P.J Department of Computing and Information Systems, Faculty of Applied Sciences

Sabaragamuwa University of Sri Lanka, Belihuloya [email protected]

Vasanthapriyan Shanmuganathan Department of Computing and Information Systems, Faculty of Applied Sciences,

Sabaragamuwa University of Sri Lanka, Belihuloya

[email protected]

Knowledge sharing is a vital factor for the success of organizations, mainly for the knowledge intensive

organizations such as software companies. This study is a survey-based empirical investigation which

conducted to identify current status and the existing knowledge sharing barriers in software companies

in the context of Sri Lanka. In order to provide a more comprehensive and complete description to the

related study, quantitative research method is used to conduct the survey with staff of the development

teams in selected software companies. The Theory of Planned Behavior is applied as the basis of this

study, in order to, create the relationship between knowledge sharing behavior, intention and attitude for

knowledge sharing. Questionnaire was designed considering individual, organizational and technical

factors based on the previous literature covering dependent variable; attitude for knowledge sharing; and

independent variables; motivation and willingness, trust, time, power relationships, expected reciprocity,

communication skills, organizational culture and structure, leadership, reward systems, and technology.

Structural equation modelling is used to analyses data, in order to assess both measurement model and

structural model. Barriers prevailing in software companies were reviewed regarding three major growth

paths of a firm; organic growth, acquisition growth, and network growth. According to findings,

hypothesized associations with motivation and willingness, time, power relationships, expected

reciprocity, communication skills, organizational culture and structure, and leadership were identified to

have a significant impact on knowledge sharing attitude while, trust, reward systems, and technology

depict no significant relationship. Findings further emphasize lack of time, improper organizational

structures, power relationships, language and expected reciprocity as the main barriers in software

companies.

Keywords: Knowledge sharing attitude, Structural equation modelling, Theory of Planned Behavior



57

ANALYSIS OF EMPLOYEE INNOVATIVE BEHAVIOR IN SRI LANKAN SOFTWARE COMPANIES

G.M.R.N. Ariyarathna

Department of Computing and Information Systems, Faculty of Applied Sciences Sabaragamuwa University of Sri Lanka, Belihuloya

[email protected]

Vasanthapriyan Shanmuganathan Department of Computing and Information Systems, Faculty of Applied Sciences


Along with the advancement of the technology, software companies have to face a huge competition in the

global market. To face this competition, innovations can be used as a strategic weapon. As employees are

the main driving forces of innovation, their behavior can be a crucial factor in boosting innovation.

Innovative behavior is referred as the introduction and application of new ideas, products, processes, and

procedures to a person's work role or an organization. This behavior directly affects innovation

performance of an organization. The main aim of this study is to identify the factors that affect employee

innovative behavior and their effect in Sri Lankan software companies using a quantitative methodology.

Apart from that this study provides a conclusive summary of the current status of innovative behavior of

employees. As the initial step mapping study was done to find the past literature related to the research

topic. From that study, seventeen papers were identified as primary studies. Factors that have been

proved by previously done research were used in this study. So, nine factors were considered to cover a

broad area of innovative behavior. A model was constructed by considering the above factors to get a

clear idea about the study. Findings of the study emphasize that both individual and organizational

factors effect on innovative behavior. Results have proven that psychological capital, organizational

support, rewards, resource availability, leadership and social capital have a significant impact on

employee innovative behavior while organizational structure, organizational commitment and work

characteristics haven’t any impact. Proposed model was reconstructed according to the results and areas

that should be improved were identified. Furthermore, innovative behavior was compared in different

growth types of a firm and there most influential factors and barriers in improving employee innovative

behavior were identified.

Keywords: Innovation, Innovation performance, Quantitative methodology




58

IMPACT OF EMOTIONAL INTELLIGENCE ON JOB STRESS OF EXECUTIVE LEVEL EMPLOYEES (AN EMPIRICAL STUDY OF A COMMERCIAL BANK)

B.A.P. Suwaris

Department of Business Management Sabaragamuwa University of Sri Lanka


A. W. Thiranagama



As human beings we all have undergone some sort of stress in our life either positively or negatively. But

unpleasant mental uncertainty may be harmful in our life if it happens continuously. Therefore, job stress

holds a dominant place among the stress types. Job stress is conceptualized as the mental, emotional, and

physical drain brought about by the perceived incongruence between job demands and employees’

capabilities and resources. Job stress affects the employees’ performance and as a result, employees do

not work efficiently and effectively which affect to the performance of the organization at large. Banking

sector of Sri Lanka is one of the leading parts of the financial sector and it plays a vital role in the

country’s development. Like any other organization, employees of banks also suffer from the job stress.

The preliminary survey confirmed that there was a high level of job stress in Executive level employees in

NDB Banks in western province. Literature shows that employees who are having higher level of

emotional intelligence can successfully manage their job stress. Emotional Intelligence is the capacity for

recognizing our own feelings and feelings of others, for motivating ourselves and for managing emotions

well in ourselves and in our relationships. Therefore, this research aims at investigating the Impact of

emotional intelligence on job stress. Reliable and a validated questionnaire was used as the primary data

collecting instrument and data were collected from 120 respondents. Simple and multiple regression

analysis were used to test the proposed hypotheses. Findings revealed that Emotional Intelligence and

dimensions of emotional intelligence: (a) self-awareness, (b) self-management, (c) social awareness,

significantly and negatively impact on the level of job stress of executive level employees in the respective

bank except the dimension of (d) relationship management since it was positively impact on the level of

job stress. Thus, it can be concluded Emotional intelligence impact on reducing job stress in banking

sector employees and people who are have high emotional intelligence can manage their stress

appropriately.

Keywords: Self-awareness, Self-management, Social awareness, Relationship management, Emotional

intelligence, Job stress





59

RELATIONSHIP OF JOB STRESS AND JOB COMMITMENT OF FINANCE PROFESSIONALS IN SRI LANKAN FOOD RETAIL INDUSTRY’S PRIVATE

SECTOR

G.N.D.D. Silva Sabaragamuwa University of Sri Lanka

[email protected]

V. Muthusamy


The aim of this research study is to investigate the impact of job stress on the job commitment of finance

professionals in the Food Retail Industry’s private sector. Field survey was conducted with 118 sample

size. Data collection undertook through randomly distributed questionnaires and interviews in the Food

retail Industry’s major four companies namely; Cargills Foods Company, Keels Super. Arpico Super Centre

and LAUGHFs super Market. Data was analyzed by using the statistical techniques with SPSS (version 21).

The results showed that there is an impact between the job stress and the job commitment of the finance

professionals in the Food Retail Industry’s private sector. Through the prior research studies the

researcher selected five major independent variables which are lead to the job stress. The research

results showed that among those five variables only two variables have significant impact on the job

commitment of finance professionals. Those variables are the experience, organizational commitment,

role clarity and the level of work. Social support, organizational context and role ambiguity and social

support have no impact on the job commitment in the finance employees in the specified industry. The

main variables that impact on the employee commitment are the Level of work and the experience in the

position. Hence, this study provides new insight to management for build the job commitment of the

employees by reducing job stress.

Keywords: Job commitment, Job stress, Experience in the position, Role ambiguity, Organizational

context, Level of work





60

COMPARING SERVPERF VERSUS HEDPERF IN MEASURING HIGHER EDUCATION SERVICE QUALITY: A CASE ON SABARAGAMUWA

UNIVERSITY OF SRI LANKA

Lakmini P. Muthugala Department of Business Management, Sabaragamuwa University of Sri Lanka


Isuru A. Ekanayake Department of Business Management, Sabaragamuwa University of Sri Lanka


Sri Lanka as a developing country has to pay more consideration towards the tertiary education sector

within the country as education is vital for the development of all individual, family, societal, national and

global levels. When paying attention to the higher education sector it is important to measure the quality

of the service provided from the universities to students from their perspective as they are the primary

customers of education. Among different measures available, the current study is focused on comparing

two measures of service quality known as SERVPERF and HEdPERF, to identify the most superior

measure to deploy in higher education sector. The SERVPERF model is a prominent measurement for

general service quality and HEdPERF is a model developed to assess perception of service quality

specifically in the higher education sector. The two scales were compared in terms of validity, reliability,

and explained variance. The study has applied survey method including both SERVPERF and HEdPERF

scales with 22 items and 41 items respectively. The study has been carried out by collecting data from the

sample of 211 management undergraduates in 3rd year of Sabaragamuwa University of Sri Lanka. The

findings revealed that HEdPERF is more appropriate to measure service quality of higher education as

HEdPERF resulted in more reliable estimations, greater validity and greater explained variance. But still

HEdPERF should be modified in Sri Lankan context as two dimensions out of six were removed due to

their low reliability values. Thus there is a need of a novel model to measure higher education service

quality in Sri Lanka.

Keywords: HEDPERF, higher education, service quality, SERVPERF





61

A STUDY ON THE IMPACT OF GLASS CEILING FACTORS ON WOMEN CAREER DEVELOPMENT: AT INTERNATIONAL CONSTRUCTION

CONSORTIUM (PVT.) LIMITED

E.H.S.B. Yomadi Department of Business Management

Sabaragamuwa University of Sri Lanka Belihuloya

J. K. S. Chrisangika Perera Department of Business Management, Sabaragamuwa University of Sri Lanka Belihuloya

[email protected]

The Constitution of Sri Lanka reckons that women are equal citizens entitled to all the privileges that men

can avail themselves of. Nonetheless, constitutional guarantees, women in the workplace have not been

provided with equal opportunities to achieve leadership positions and this problem is sever in the

construction industry. The lack of women career development in construction industry has been a

concern for many years. Therefore, the researcher investigated impact of glass ceiling factors in the form

of cultural factors, work-life conflict and organisational factors on women career development at

International Construction Consortium (Pvt.) Limited. This study was conducted based on positivistic

research paradigm and quantitative research methodology. A self-administered questionnaire was

prepared using validated and reliable scales. A census study was conducted and data were collected from

102 female employees in the company. A multiple regression analysis was used to test the hypothesised

model. Findings of the study revealed that only work-life conflict and organisational factors significantly

impact on women career development at International Construction Consortium (Pvt.) Limited.

Moreover, it was found that work-life conflict is the highest impacting factor. However, cultural factors do

not have an impact on women career development at the selected context. Hence, management of the

company should be more concerned on improving women friendly work-life policies and should ensure

fair treatment of the female employees at the workplace. The findings of this research will be helpful for

managers to identify the invisible barriers that hinder the career development of women and will make a

novel contribution to the construction industry of Sri Lanka.

Keywords: Cultural factors, Glass ceiling factors, Organisational factors, Women career

development, Work-life conflict




62

IMPACT OF JOB CHARACTERISTICS AND FAMILY SUPPORTIVE SUPERVISOR BEHAVIOR ON WORK FAMILY ENRICHMENT

H.M.A.M. Herath

Department of Business Management Faculty of Management Studies


A.W. Thiranagama

Department of Business Management Faculty of Management Studies


Work and family roles are like two sides of a coin. Those two domains are crucial points for the

individuals as well the organizations betterment. Most of the work-family concepts are discuss about the

negative side of the work-family interface over the past decades. But there is an essentiality to investigate

the bright side of the work-family interface. Therefore, this study attempts to investigate the positive side

of work-family interface. There are several concepts within the work-family interface such as work-family

positive spillover, enhancement, enrichment, facilitation. Those are interchangeable. Current study

engrossed on work family enrichment which defined as the extent to which experiences in work role

improve the quality of family life. Two main antecedents were selected by referring the existing body of

knowledge regarding the work-family interface namely job characteristics and family supportive

supervisor behavior and selected context was banking industry. Based on that researcher investigated the

impact of job characteristics and family supportive supervisor behavior on work to family enrichment of

all the bankers of Bank of Ceylon branches within Rathnapura Municipal Council area. Data were

gathered from 92 bankers through a standard and validated questionnaire and analysed those data by

using SPSS 21 statistical software. A multiple regression was performed to investigate the impact of the

variables interested. Pertaining to the previous research findings, the current study also brought evidence

to a significant positive impact of job characteristics on work to family enrichment. In contrast to the

previous research findings, no any impact was found of family supportive supervisor behaviors on work

to family enrichment. Therefore, the study concludes that job characteristics would facilitate individuals

functioning in the family domain. Consequently, this will help the organization to rethink about their job

designing strategies to enhance the job characteristics so that it will enhance the work to family

enrichment.

Key Words: Work to family enrichment, Job characteristic, Family supportive supervisor behavior





63

THE IMPACT OF FAMILY SUPPORTIVE SUPERVISOR BEHAVIOURS ON WORK-TO-FAMILY CONFLICT OF MARRIED FEMALE MACHINE

OPERATORS

K. V. D. Vishadi Vimukthi Department of Business Management


J. K. S. Chrisangika Perera

Department of Business Management Sabaragamuwa University of Sri Lanka, Belihuloya

[email protected]

Work-to-family conflict is one of the challenging and critical problems faced by the adults in today’s

society. As more women are entering into the labour force this problem is developing to a higher extent.

Through the preliminary study the researcher found that married female machine operators are

experiencing more work-to-family conflict at Brandix Apparel Solutions Limited-Casualwear, Rathmalana.

Emerging literature shows that supervisor role is one of the critical factors for determining work-to-

family conflict. Further, the researcher observed that some supervisors are not much supportive towards

the machine operators in the selected context. Literature shows that emotional support, instrumental

support, role modelling behaviours and creative work-family management are dimensions of the family

supportive supervisor behaviours. Therefore, this study further aimed to find out the impact of each

dimension of family supportive supervisor behaviours on work-to-family conflict of the married female

machine operators. The population of the study was 360 married female machine operators at Brandix

Apparel Solutions Limited-Casualwear. Among them a sample of 186 was selected using simple random

sampling method. This is a quantitative study. Data was collected through a self-administered

questionnaire which was developed by using validated and reliable scales. Data was analysed by using

both simple and multiple regression analysis. The simple regression was used to measure the impact of

family supportive supervisor behaviours on work-to-family conflict while a multiple regression was used

to measure the impact of each dimension of family supportive supervisor behaviours on work-to-family

conflict. The study found that there is a negative impact of family supportive supervisor behaviours and

each dimension of family supportive supervisor behaviours on work-to-family conflict. Hence,

management of the company should focus its attention to improve family supportive behaviours of its

supervisors in order to reduce work-to-family conflict of the married female machine operators.

Keywords: work-to-family conflict, family supportive supervisor behaviours, emotional support,

instrumental support, role modeling behaviours




64

A STUDY ON THE IMPACT OF WORK-TO-FAMILY ENRICHMENT ON JOB SATISFACTION OF OPERATIONAL LEVEL EMPLOYEES (WITH SPECIAL

REFERENCE TO ABC (PVT.) LIMITED)

D.W. Deepthika Neranjali Department of Business Management,



Department of Business Management Sabaragamuwa University of Sri Lanka, Belihuloya

[email protected]

Research suggests that employees work more effectively, creatively, and collaboratively when they are

satisfied at work. According to the preliminary study the researcher identified that operational

employees are less satisfied about their job at ABC (Pvt.) Limited, one of the companies in biscuit and

confectionary industry. Based on emerging literature, the researcher selected work-to-family enrichment

as one of the possible antecedents on job satisfaction. There are three dimensions of work-to-family

enrichment: development, affect and capital. Purpose of this study was to find out whether there is an

impact of work-to-family enrichment and each dimension of work-to-family enrichment on job

satisfaction of operational level employees at ABC (Pvt.) Limited. The research was conducted in

positivistic research paradigm and quantitative methodology under deductive approach. Data was

collected by using standard and validated questionnaire. The population of this study was all operational

level employees at ABC (Pvt.) Limited that is 320. Out of them a sample of 175 was selected using simple

random sampling method. Data was analyzed by using simple and multiple regressions. Simple

regression was used to find out the impact of work-to-family enrichment on job satisfaction and multiple

regressions was used to find out the impact of each dimension of work-to-family enrichment on job

satisfaction. The study found that there is a significant impact of work-to-family enrichment and each

dimension of work-to-family enrichment on job satisfaction of operational level employees at ABC (Pvt.)

Limited. Work-to-family enrichment is the most influential factor on job satisfaction of operational level

employees at ABC (Pvt.) Limited. This study provides implication for managers of the company to uplift

job satisfaction of the operational level employees by strengthening their work-to-family enrichment.

Keywords: Job satisfaction, work-to-family enrichment, work-to-family development, work-to-family

affect, work-to-family capital



65

WOMEN E-ENTREPRENEURS IN ACTION: IDENTIFYING SKILLS REQUIRED FOR THE SUCCESS AND THE PROBLEMS FACED BY THE

FEMALE SOCIAL MEDIA-BASED SMALL BUSINESSES.

W.A.K. Amitha Faculty of Graduate Studies


We are in the information economy and working in many sophisticated ways. Starting and operating a

business is not a difficult task further more in this era compared to the past. As we all believe,

entrepreneurs are the lifeblood to develop a country as they always work more innovatively. Moreover,

women entrepreneurs are playing a big role in both of their families and economy. With new

technological developments women entrepreneurs are trying to practice in novel areas like social media

based small scale businesses. One results of this effort is e-women entrepreneurship. According to

previous studies, usage of information technology has become a great factor in achieving the success.

However according to the observations and information gathered from e-women entrepreneurs in small

scale businesses of Sri Lanka, the researcher could identify that most of the females are functioning the

social media-based businesses in very small scale. Even though the researcher could notice that the

women e-entrepreneurs are not performing well in the industry like male e-entrepreneurs. Accordingly,

the researcher adopted the qualitative study with the objectives to identify the factors affecting the

success and the problems faced by the female social media based small businesses. The researcher

collected the qualitative data via face book messenger interviews based on unstructured questions. As per

the findings, the most impactful skill of female e-entrepreneurs is, the way they handle their words.

Moreover, the identified problems are, requesting unnecessary information, cancelling the orders, no on

time payments, send unnecessary orders etc. The study was conducted based on convenience sampling

technique and thematic analysis is the analysis technique utilized by the researcher. Finally, the

researcher concluded that, social media-based small businesses are as a good tool to operate business

with more modifications and females need more protection and need to use more strategies to function

successfully.

Key words: E- entrepreneurship, Social Media, small business




66

Human Resource Management



67

EFFECTIVENESS OF USING BIOMETRIC ATTENDANCE SYSTEM (FINGER PRINT) IN PUBLIC SECTOR: A CASE STUDY OF ABC UNIVERSITY, SRI

LANKA

Sugandika K. Liyanage National productivity Secretariat

9th Floor, Sethsiripaya –Stage II,Battaramulla [email protected]

Chanuk Liyanage

Sri Lanka Customs No 40, Main Street, Colombo 11

[email protected]

Managing and monitoring attendance of employees is very important aspect for smooth functioning of

any public or private organization. To obtain and maintain the attendance of employees in an

organization has become a challenging aspect to deal with. In order to avoid human bias and direct

human intervention, government institutions have implemented biometric attendance system to record

employee attendance on daily basis. This research aims to understand the nature, employee’s attitudes,

issues and challenges of Biometric Attendance System. Employees belong to five categories of a

university have been selected as the sample and questionnaires and structured interviews were used to

collect the data. Both descriptive and non-descriptive statistical methods were used to analysis the data.

The study revealed that attitudes towards Biometric attendance system depend on job category, age,

work experience and gender. According to the developed indices, most of the employees think that

previous manual system had lots of difficulties and current biometric attendance system made them feel

easy and supervision on employees has been increased. Also, most think that current biometric system

has more expenditure than previous system. It has been found out that there are four important factors

affecting the overall attitudes towards the biometric attendance. Those are prevailing attitudes towards

manual attendance system, general attitudes towards biometric system, attitudes of supervision, and

efficiency. The first one affects negatively while other three factors affect positively. The study also

indicates the issues and challenges faced in Biometric Attendance System including possible

misconducts done by operators, inability to ensure the presence inside the office and issues in marking

attendance when working at outstations. Suggestions to improve existing loopholes of the system and

policy implications have also been highlighted. The study can be further extended to analyze

effectiveness of Biometric Attendance System on other government institutions.

Keywords: Biometric attendance system, Fingerprint, Employee attitudes, Issues and Challenges



68

THE NEXUS BETWEEN FLEX WORK AND WORK-LIFE BALANCE: A CRITIQUE

Tharindu D. Weerasinghe

Department of Human Resource Management Faculty of Commerce and Management Studies

University of Kelaniya, Sri Lanka [email protected] / [email protected]

The current paper reviews and summarizes the key findings of research on the nexus between flex work

and work life balance featuring the main three dimensions of flex work: time flexibility; location flexibility

and operational flexibility. Building on Clark's (2000) job border theory, a content analysis of relevant

research papers known to the author was conducted. It is found that time flexibility is positively

correlated with work life balance of employees whereas location flexibility is negatively correlated with

work life balance. However, the underline relationships between operational flexibility and work life

balance is not clear and consistent across the extant literature, so that, it remains yet to be studied further

in future research studies. Moreover, the job border theory is challenged throughout the current review

and establishes a notion that, there is no border between work-life and the non-work life of flex workers

to cross daily, instead they experience a borderless and timeless work and a life. In conclusion, for flex

workers no separate work life and a separate family life, they experience a blended life.

Keywords: Flex-work, Flex workers, Work-life balance, Blended life, Job border theory





69

EMOTIONAL INTELLIGENCE FOR EFFECTIVE LEADERSHIP AT WORKPLACE: A REVIEW

Bhasuri Bhagyani Amarathunge NSBM Green University Town

Mahenwatta, Pitipana, Homagama, Sri Lanka. [email protected]

Leadership is a vital element in achieving organizational success. Intelligent leaders are essential to

possess multiple intelligence in order to be successful. Emotional Intelligence (EI) has been a vital factor

among multiple intelligence identified as required for effective leaders. The recent focus of management

researches has been considering the importance of application of head and heart in the workplace to

improve the performance of employees. Emotional Intelligence is identified as the means of connecting

the thinking and feeling process of people. In leadership, dealing effectively with emotions may contribute

to how one handles the needs of individuals, how one effectively motivates employees, and makes them

`feel’ at work. Thus, the objective of this review is to explore the concept of Emotional Intelligence and to

discuss its relevance to Effective leadership at workplace based on the existent literature.

Keywords: Emotional Intelligence, Leadership, Effective leadership, Charismatic Leadership, Job

performance



70

FACTORS INFLUENCING EMPLOYEE ENGAGEMENT AMONG GEN Y IN PUBLIC ORGANIZATIONS IN MALAYSIA

Zuraina Dato Mansor

Department of Management and Marketing Faculty of Economics and Management, UPM Serdang, Selangor, Malaysia [email protected]

Ho Jo Ann

Department of Management and Marketing Faculty of Economics and Management, UPM Serdang, Selangor, Malaysia

Norlelyy Mat Nata

Ministry of Education (MOE) Putrajaya, Malaysia

Organizations competing for talent in today’s strong job market are increasingly putting their attention to

prevent fatigue, burnout and improve employee engagement. However, the challenges are intact and with

so many variables that can influence and degrade engagement, it is difficult to determine which factors

should be given attention. Employee engagement can give effects to overall organization performance.

Lack of understanding towards the influence of employee engagement can cause employers or managers

not able to take appropriate and correct actions to improve employee motivation and performance. This

paper is written to examine the factors that influence the Gen Y engagement in public organizations in

Malaysia. The respondents for this study were Gen Y who worked in fourteen ministries in Putrajaya, the

federal administrative of Malaysia. A total of 229 respondents participated in this study. We found that

factors such as career development, supervisor and subordinate relationship had a positive and moderate

influence with employee engagement. While another factor, which is work life balance, had a positive but

low strength influence to employee engagement. The result suggested that the government has managed

its staff career development well and this has led to engagement with their organizations.

Keywords: employee engagement, gen Y, public organizations, Malaysia




71

IMPACT OF HUMAN RELATIONS SKILLS OF UNIVERSITY

ADMINISTRATIVE OFFICERS TOWARDS ORGANIZATIONAL

EFFECTIVENESS

Wijenayake M D I P


Perera M A C H

Department of Insurance & Valuation Faculty of Business Studies & Finance


This research study was designed to analyze the impact of human relations skills of University

Administrative Officers towards organizational effectiveness in the University system. In the present

context, the effectiveness of University system as a whole is of utmost importance. It is clear that there is

a problem of effectiveness of University system in Sri Lanka when referring to the literature in terms of

internal administration, decision making process, leadership skills; styles, motivational skills; levels,

communications skills of authorities etc. The importance of human relations skills of University

administrative officers towards effectiveness of Universities has been highlighted in the past research

studies too.

This study aimed at investigating the variables of human relations skills while conceptualizing the model

with eight indictors. Researcher adopted questionnaire was used to collect data. Data analysis using

Likert methods and analysis of findings using Likert mean, standard deviation, correlation, univariate,

bivariate and multivariate analysis of variation were used.

The study tested fifteen hypotheses using correlation and regression. It has been empirically and

statistically proven that all independent variables are positively correlated with organizational

effectiveness and listening, speaking, writing, creative problem solving, team building and goal setting

skills are significantly influenced the organizational effectiveness whilst empowerment and

handling/managing conflicts are not significantly influenced. The key findings of the study provide a

substantial support for the hypothesized paths of the model.

Most importantly this research could be used for formulation and implementation of suitable

programmes in view of improving competencies, capabilities and skills of University Administrative

Officers for long term sustainability of the University system, while taking them to a new high.

Keywords: Human Relations Skills, Organizational Effectiveness, University Administrative Officers





72

AN ASSESSMENT OF THE EFFECTS OF INFORMAL GROUPS ON EMPLYEE PERFORMANCE; A CASE STUDY ON GOVERNMENT

EDUCATIONAL INSTITUTE IN SRI LANKA

Pramoda Sarojini Sri Lanka Foundation Institute

Colombo [email protected]

The groups are created formally and informally within the organization at different times and for

different goals. Those groups have the negative and positive influences on the organization structure and

function. In this work, the group concept in the organizations is studied and the influence of group

behaviors within the organizations is discussed conceptually. This research investigated the effects of

informal groups on employee performance. Under this purpose, the research questions were; what are

the effects of informal groups on employee performance? How can educational institute effectively deal

with informal groups? A descriptive survey design was used to describe the effects of informal groups on

employee performance. Structured interviews and questionnaires were used to collect data. Fifty junior

management & senior management employees were included to the sample. Study sought to identify the

most popular types of informal groups in the institute. 92% of the respondents indicated that interest

groups are common while 8% are friendship groups. Study sought to identify reasons for engaging into

informal groups among the junior and senior management were diverse. Junior management belongs to

groups for meeting and socialize with friends where as senior management belongs to group to discuss

workplace grievances and sharing confidential matters. Research was found that the most common

reason for belonging to informal groups is to socialize with friends and this constitutes 61% of the

respondents. 23% of the respondents indicated the reasons to discuss workplace grievances and sharing

common maters. Frequency distribution of senior management who agree that overall intuitional

performance is heavily affected by informal groups. Furthermore, findings that 60% of the respondents

indicated that informal groups negatively affect employee performance, while 35% indicated that

informal groups positively affect performance and 5% indicated that informal groups have both negative

and positive effects on employee performance. When respondents were asked how often they discuss

ideas related to their jobs during informal group interaction, 30% indicated that they discuss very often,

50% sometimes discuss work related issues while 10% indicated that they have never discussed work

related issues during their informal group interaction. Study sought to find out senior management’s

perceptions on ways of dealing with or managing informal groups and the findings show that employees

have different views on how the institute can manage informal groups.

Keywords: groups, senior, junior, management, performance




73

IMPACT OF EMPLOYEE EMPOWERMENT ON EMPLOYEE JOB

SATISFACTION: MEDIATORY ANALYSIS

Palihana Ralalage Deepika Wijesingha Faculty of Management Studies

Sabaragamuwa university of Sri Lanka [email protected]

The purpose of this paper is to examine the relationships among employee empowerment (structural

empowerment, psychological empowerment) and job satisfaction of non-executive employees in Sri

Lankan Airline Centre, BIA, Katunayake. The study examines relationships between the independent

variable, structural empowerment and the dependent variable Job Satisfaction as well as exploring the

relationship between psychological empowerment and Job Satisfaction and between the two

independent variables structural empowerment and psychological empowerment. A mediation model

was tested to explain the relationship between structural empowerment, psychological empowerment

and Job Satisfaction. A correlational research design was used. Convenience samples of 88 Non-

executive staff in the Airline Centre were selected from the departments. Survey was used to collect

data using four instruments: (a) Demographic data, (b) The Psychological Empowerment Scale, and (c)

The Conditions of Work Effectiveness Questionnaire-II. Statistically significant positive correlations

were found between psychological empowerment demonstrate the weakest relationship with the

employee job satisfaction (r=0.443). Structural empowerment demonstrates the strong positive

relationship with the job satisfaction of employees (r=0.968). Mediating variable (psychological

empowerment) demonstrate the weakest relationship with the employee job satisfaction (r=0.382).

Regression analysis has been run under the enter method with the mediating variable, all the entered

factors have been statistically significant under the 95% of confidence level. Therefore, researcher says

that if the company increase the employee empowerment then they can gain satisfied employees.

Keywords: airline Industry, psychological empowerment, structural empowerment, job

satisfaction, job attitudes




74

A STUDY OF GREEN HR PRACTICES IN SRI LANKAN ORGANIZATIONS

Polwatte R. W. M. S. C. Weerakotuwa Department of Human Resource Management

University of Peradeniya [email protected]

It is a growing need for organizations to move towards a better environmental management: in other

words, to go “Green”. Green HRM is the Human Resources aspect of the concept of Green and is a novel

field on which researchers are yet to explore. This study is an attempt to discover the different Green HR

practices used by the Sri Lankan organizations and their significance in the commercial sector. The study

adopted qualitative methodology through interviews to gather data on Green HR practices of

organizations. Purposive sampling was used as the sampling method and thematic analysis was used for

data analysis. Online job advertising, tele-recruitment, recyclable ID cards, electronic pay slip, waste

management, energy management, controlled air pollution, reduced carbon emission, CSR activities to

protect the environment, on-line work arrangements, attitude changing programmes and awareness

programmes are among the findings as existing Green HR practices. The concept of Green HR is yet to

develop in order to achieve its whole purpose. In Sri Lanka, this concept has not yet achieved its due

recognition as an effective tool in ensuring a better environmental management. But it is good to observe

that some Sri Lankan organizations are now recognizing Green HRM and implementing Green HR

practices into their organizations through which despite the already existing advantage of being eco-

friendly, the companies are further benefitted by the economical and marketable aspects of following

these practices.

Keywords: Green HRM, HR Practices




75

AN EMPIRICAL STUDY OF THE RELATIONSHIP OF OCCUPATIONAL

STRESS AND TURNOVER INTENTION AMONG THE SRI LANKAN APPAREL MANUFACTURING INDUSTRY WORKERS (STUDY BASED ON

WESTERN PROVINCE OF SRI LANKA)

Deepal Wijayasekara Sabaragamuwa University of Sri lanka

[email protected]

Lakmini Jayatilaka Department of Commerce and Financial Management

University of Kelaniya

Sivashankar Pathmanathan Department of Agribusiness Management


Occupational stress is rapidly growing concern to HR researchers. Among the numerous consequences

of the occupational stress, employees' turnover is one of a major concern of HR. This study was done to

identify the relationship between the occupational stress and employee turnover intention among the

apparel industry workers of Sri Lanka. The study has three major objectives. First the study assesses

the level of occupational stress among the apparel manufacturing workers of Sri Lanka. Secondly the

study determines the relationship of the occupational stress and employee' turnover intention. Thirdly

it explores the existing extend of the above variables. The study was designed exploratory correlation

research. The target population was apparel manufacturing industry workers. Ten (10) apparel

manufacturing organizations were selected by representing small, medium and large-scale

organizations in Western Province in Sri Lanka. 150 questionnaires were taken as the sample.

Descriptive Statistic and Inferential Statistic methods were used for analysis. The study has used

organizational stress screening tool called ASSET model which developed by Cartwright and Cooper

(2002) to assess the risk of occupational stress. The "3 items scale” generated for measure the turnover

intention of the workers adapted from Michaels Spector (1982) used for measure the turnover

intention. According to the results more than 69 percent out of the total population has medium

occupational stress level. The rest have low and high stress level respectively 26 percent and 4.7

percent. The Variables have shown there is a significant moderate correlation between these two

variables. There is a vast knowledge gap in Sri Lank that need to conduct researches how to minimize

the occupational stress in sustainable manner. Prior to that, it needs to clarify the consequences of this

occupational stress. Therefore, the findings would be light up the way of entrepreneurs, managers,

employees and the future researchers.

Keywords: Occupational Stress, Turnover Intention, ASSET Model




76

MUSIC LISTENING AND WORK PERFORMANCE: A LONGITUDINAL STUDY ON APPAREL SECTOR OF SRI LANKA

Mampe Kankanamalage Dinithi Padmasiri

Department of Human Resource Management, University of Kelaniya [email protected]

Manimeldura Virangi Sonali Mendis

Department of Human Resource Management, University of Kelaniya [email protected]

From an overall perspective, music listening is considered as an informal exercise in daily life, however, it

awards a formal appearance by conducting an academic research on music listening. Today, playing

music at work places grow into an evolving practice and this is a research attempts to investigate the

impact of music listening on employees’ work performance. Meanwhile, several objectives were

constructed; to identify the employee work performance level with and without music listening, to

identify the importance of music listening, to provide recommendations to the selected organization, and

to provide new evidence about music therapy for work and organization psychology. Machine operators

in a leading apparel company of Sri Lanka were the sample of the study. Sixty (60) employees were

selected using simple random sampling method where self-administrated structured questionnaire was

used. Data was collected from the same sample at two times as with& without music. The data was

analyzed by using Correlation, Regression analysis and Paired sample t-test. The study confirmed that,

music listening makes a positive impact to the work performance of employees. As managerial

implications, it is recommended to use different songs, getting suggestions from employees, and changing

the music based on the situation to increase the work performance.

Keywords: Music, Music listening, Work Performance and Apparel Industry



77

KNOWLEDGE MANAGEMENT INVOLVEMENT IN IMPROVING HUMAN RESOURCE MANAGEMENT OF THE ORGANIZATIONS

Sashini K. Weerathunga Department of Computing and Information Systems,

Faculty of Applied Sciences, Sabaragamuwa University of Sri Lanka

[email protected]

Vasanthapriyan Shanmuganathan Department of Computing and Information Systems,

Faculty of Applied Sciences, Sabaragamuwa University of Sri Lanka

[email protected]

Human Resource Management is identified as essential for driving the human resources of any

organization towards its success. Since the employees of a company possess the knowledge required to

execute job functions and create new knowledge to do it better, which is similar to human resource

department also, Human Resource Management is a knowledge intensive process, and, thus, knowledge

management practices could be involved in the process of improving Human Resource Management

functions. This study was carried out investigating how knowledge management practices could be

involved in four human resource functions for a better implementation, as of; recruitment and selection,

performance management, training and development and rewards and compensation management.

Hence, a quantitative research was conducted along with a questionnaire distributed among human

resource professionals which resulted many positives towards the importance of using knowledge

management practices in their job functions. Five Knowledge Management practices were identified that

could make an impact for Human Resource functions as of; knowledge creation, acquisition, sharing,

storage and implementation. In the forms of brainstorming sessions, cross functional teams, regular

meetings, databases, internal magazines, notice boards, special meetups after training; knowledge

sharing and storage have found to be required, considering the importance of sharing expert knowledge

to perform the Human Resource functions better, as well as reusing best practices through proper

storage of knowledge. Recent studies have also evidenced an increased interest towards the topic

emphasizing that it would ultimately result in conducting the Human Resource functions in a consistent

and improved manner as a result of creating and acquiring best knowledge, which is then shared and

stored across the company effectively.

Keywords: Human Resource Management, Knowledge Management, knowledge sharing, knowledge

reuse, knowledge storage



78

IMPACT OF ORGANIZATIONAL COMMITMENT ON EMPLOYEE

TURNOVER INTENTION OF OPERATIONAL LEVEL EMPLOYEES AT JO LANKA MANUFACTURING (PRIVATE) LIMITED WADDUWA

M. D. G. K. Goonatillake

Department of Business Management, Faculty of Management Studies, Sabaragamuwa University of Sri Lanka,

[email protected]

A. C. Jayatilake Department of Business Management, Faculty of Management Studies,

Sabaragamuwa University of Sri Lanka, . [email protected]

In modern business world turnover intention has become massive issue in all most all the countries

throughout the world. Therefore, every organization have to pay attention to cope up from this issue and

navigate towards the organizational success. Therefore, researcher carried out a pilot survey to

determine the level of turnover intention within employees in Jo Lanka Manufacturing (Private) Limited

Wadduwa and identified high turnover intention among operational level employees in this context. By

reviewing the literature, the researcher identified that organizational commitment is the most influential

factor which impact on turnover intention. The aims of this study is to identify the impact of

organizational commitment on turnover intention and the impact of the dimensions of organizational

commitment (affective, normative, continuance) on turnover intention with respect to the operational

level employees in Jo Lanka Manufacturing (Private) Limited Wadduwa. Among 310 operational level

employees in this research context, 175 operational level employees were selected as the sample after

applying stratified random sampling method and data were collected by using self-administrated

questionnaire. Researcher used simple regression analysis to find out the impact of organizational

commitment on turnover intention and multiple regression analysis to find out impact of three

dimensions of organizational commitment on turnover intention. The results revealed that

organizational commitment and three dimensions of organizational commitment have impacted on

turnover intention of operational level employees in Jo Lanka Manufacturing (Private) Limited

Wadduwa. Further this study recommended the management of this study context to formulate relevant

training plans, career development strategies and remuneration, welfare facilities for employees to

enhance their organizational commitment which will leads to reduce employee turnover intention.

Furthermore, this will provide guidelines for the future researchers to conduct their studies by

considering all the other levels of employees, rather than the operational level employee and in different

research contexts.

Keywords: Affective Commitment, Continuance Commitment, Normative Commitment,

Organizational Commitment, Turnover Intention.





79

IMPACT OF PERSONALITY TRAITS ON JOB INVOLVEMENT OF

GOVERNMENT BANKERS IN RATNAPURA MUNICIPLE COUNCILE AREA

Nathan A. Perera Department of Business Management, Sabaragamuwa University of Sri Lanka

[email protected]

Amalie C. Jayatilake

Department of Business Management, Sabaragamuwa University of Sri Lanka

[email protected]

Job Involvement has become a popular topic in the modern business context since organizations are

operating in a very competitive environment. Therefore, job involvement has become a sustainable

competitive advantage for the ultimate purpose of achieving its goals and objectives. Researcher

conducted a preliminary survey to measure the level of job involvement of private and government

bankers in Ratnapura municipal council area and found that there is low level of job involvement among

the government bankers in the mentioned research context. After reviewing the literature, the researcher

found that big five personality traits (experience, conscientiousness, extraversion, agreeableness,

neuroticism) are the mostly influencing factors on job involvement. Therefore, the present study aimed to

identify the positive impact of experience, conscientiousness, extraversion and negative impact of

neuroticism on job involvement of government bankers in Ratnapura municipal council area. This study

was conducted based on positivistic research paradigm and quantitative research methodology. Census

strategy was applied to collect data since there are only 119 bankers at government commercial banks in

Ratnapura municipal council area. Data were gathered through self-administered questionnaire. Data was

analysed using multiple regression. Findings of the study reviled that conscientiousness was not impacted

on job involvement of government bankers in Ratnapura municipal council area. Nevertheless, it was

found a positive impact of three personality traits namely openness to experience, extraversion and

agreeableness on job involvement and negative impact of neuroticism on job involvement of government

bankers in Ratnapura municipal council area. Bankers who possess openness to experience traits shows

the highest impact on job involvement among other dimensions. Therefore, the management of the

government banks in this research context can organize workshops in order to improve their personality

of the. Since conscientiousness personality trait got insignificant in present research study, future

researchers can determine the reasons for such insignificancy.

Keywords: Agreeableness, Conscientiousness, Extraversion, Job involvement, Neuroticism, Openness to

Experience




80

A STUDY ON THE IMPACT OF PSYCHOLOGICAL CAPITAL ON

INDIVIDUAL WORK PERFORMANCE OF SUPERVISORY LEVEL

EMPLOYEES

R. A. Geethamali P. Rupasinghe

Department of Business Management, Faculty of Management Studies

Sabaragamuwa University of Sri Lanka. [email protected]



[email protected]

In the present, human resource has become a sustainable competitive advantage and the employee

performance is the key to increase organisational performance with the ultimate purpose of achieving

organisational goals and objectives. Therefore, there is no doubt that work performance of employees is

very important to determine the success of any organisation. By a preliminary study the researcher

identified that supervisory level employees have a less individual work performance at Industrial

Clothing (Pvt.) Limited. Further by reviewing theoretical and empirical evidence, the researcher

identified that development of psychological capital is one of the essential elements to enhance the work

performance. Therefore, this study aims to find out whether psychological capital impacts on individual

work performance and whether each dimension of psychological capital (self-efficacy, optimism, hope

and resilience) impacts on individual work performance of supervisory level employees. The researcher

used a self-administrated questionnaire to collect data from a population of 171 supervisory level

employees by using census method but the final response rate was 80%. A simple regression analysis

was applied to find out the impact of psychological capital on individual work performance while a

multiple regression analysis was applied to find out the impact of each dimension of psychological capital

on individual work performance. The findings indicate that the psychological capital and each dimension

have a positive impact on individual work performance of supervisory level employees at Industrial

Clothing (Pvt.) limited. Findings further revealed that self-efficacy is the most influential factor of

individual work performance. By considering the research findings the company can enhance individual

work performance focusing on improving psychological capital, especially self-efficacy, within the

supervisory level employees of the company. Suggestions are given for future researchers to further

expand this study by using multiple methods, and obtaining work performance evidence from immediate

supervisors rather than individuals themselves.

Keywords: Psychological capital, Individual work performance, Self-efficacy, Hope, Optimism, Resilience





81

IMPACT OF PSYCHOLOGICAL EMPOWERMENT ON ORGANIZATIONAL

COMMITMENT OF EXECUTIVE LEVEL EMPLOYEES IN NATIONAL DEVELOPMENT BANK PLC IN SOUTHERN PROVINCE

H. M. R. Malintha

Department of Business Management, Faculty of Management Studies,


P. J. Jayathilake

Department of Business Management, Faculty of Management Studies,

Sabaragamuwa University of Sri Lanka, [email protected]

Organizational commitment, the spirit of the organization is essential for the success of any organization.

To determine the research problem researcher conducted a pilot survey and base on the survey result, it

was able to determine that there is a low level of organizational commitment within the executive level

employees in National Development Bank PLC in Southern province. Based on the literature researcher

identified that psychological empowerment is one of the factors affecting on organizational commitment.

This study aimed to determine the impact of psychological empowerment on organizational commitment

with respect to the research context. Population of the study was 90 of executive employees. Researcher

used census method to collect data by using self-administrated questionnaire and all so used two models

to find out the impact of both variables. Researcher used simple regression analysis for Model A to find

out the impact of psychological empowerment on organizational commitment and multiple regression

analysis for Model B to find out impact of four dimensions of psychological empowerment on

organizational commitment. Final results emphasized that psychological empowerment and four

dimensions of meaning, competence, self-determination, and impact have impacted on organizational

commitment of executive level employees in National Development Bank PLC in Southern province. This

research finding will be mostly supportive for management to reduce the unfavorable psychological

circumstances and enhance the organizational commitment within the organization. Moreover, future

researchers can apply this study for different context.

Keywords: Organizational Commitment, Psychological Empowerment, Meaning, Competence, Self

Determination, Impact





82

THE IMPACT OF PERCEIVED SUPERVISORS’ LEADERSHIP STYLE ON JOB SATISFACTION OF OPERATIONAL LEVEL EMPLOYEES (WITH REFERENCE TO CAMSO LOADSTER (PRIVATE) LIMITED, EKALA)

Ekanayaka A. B. D. Kumari Department of Business Management,

Faculty of Management Studies, Sabaragamuwa University of Sri Lanka, [email protected]

P. J. Jayathilake Department of Business Management,

Faculty of Management Studies, Sabaragamuwa University of Sri Lanka,

[email protected] Employee satisfaction is one of the important concepts in Human Resource Management and academic

researches. Building a satisfied workforce in an organization is critical for any organization. Satisfied

employees cause to increase quality of products, efficiency level of organization and customer

satisfaction. Every organization’s ultimate aim is customer satisfaction. Organizations can win that

ultimate aim through job satisfaction. When considering tire and tube industries, operational level

employees are very important and their satisfaction level also important to organization productivity.

Therefore, this thesis is aimed to identify the impact of leadership styles on job satisfaction of operational

level employees of Camso Loadstar (Pvt.) Ltd. Loadstar is the leading export tire manufacturing company

in Sri Lanka. By conducting preliminary survey, the researcher actually identified that the organization

has low level of satisfaction. When considering about previous researches, researcher identified lot of

factors which affect to the job satisfaction. Among those factors’ researcher selected only leadership style.

Leadership means how people work with their subordinate. With the support of literature, researcher

identified few leadership styles. Among those styles transformational leadership and transactional

leadership are very much important. Due to that this study focused to identify the impact of supervisor’s

transformational leadership and transactional leadership on employee satisfaction in Camso Loadstar

(Pvt.) Ltd. This organization has 483 operational level employees (permanent category) and researcher

selected 214 operational level employees by exercising simple random sampling technique to conduct

this study. Survey method was used as the research strategy and self-administrated questionnaires were

distributed among 214 respondents to collect data for the study. Hypotheses were tested by using

multiple regression analysis with the help of SPSS 21.0 and Minitab16.0 statistical package. Result

showed that transformational leadership has a significant positive impact on employee job satisfaction

and transactional leadership has negative impact on employee job satisfaction.

Keywords: Job Satisfaction, Transactional Leadership, Transformational Leadership





83

IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON FEMALE EMPLOYEES PERFORMANCE

Nirma P. Sooriyamudali Wayamba University of Sri Lanka

[email protected]

Harshani Kumarasinghe Wayamba University of Sri Lanka [email protected]

Since the advent of globalization, the business environment has undergone drastic changes both in terms

of complexity and dynamism. Organizations are grappling with changes in market conditions, workforce

demographics and diversity technological innovations, increased focus on customer and quality, shortage

of talent and economic changes (Noe, 2002). Hence, every organization need to continuously modify their

business strategy, policies and practices to be aligned with the changing environment for steering

towards predetermined objectives effectively and efficiently. In this context, human resources play the

most prominent role within the organization. Every organization require effective Human Resources

System in handling other resources where those HR system is supported with the platform of the best HR

practices. HRM practices refer to organization activities directed at managing the group of HR and

ensuring that the resources are employed towards the fulfillment of organization goals where those HR

practices affect all employer in the organization including female employees. This research was

conducted to determine the impact of HR practices on female employee performances in Banking

Industry in Sri Lanka. The study focuses the HR practices including selection, training, career planning,

compensation, performances appraisal, and job definition and employee participation on female

employee performances. Further, this research discussed why HRM decisions are likely to have an

important and unique influence on female employee performances. This research will be a wide platform

for advance research in this area. The results of the study evaluate that there is a significant positive

relationship between HR practices and female employee performances.

Keywords: Female employee, Human resources practices, Performances, Banking Industry





84

Information Technology



85

A STUDY OF EMPLOYEE PERCEPTIONS OF OUTSOURCING OF INFORMATION TECHNOLOGY OPERATIONS IN BANKING SECTOR

Amila Bandarawatta Postgraduate Department,

International College of Business and Technology Kandy, Sri Lanka

[email protected]

Prabu Premkumar Faculty of Information Technology and Sciences,

International College of Business and Technology Colombo, Sri Lanka [email protected]

The outsourcing seems to have become the new trend in organizational strategy. The outsourcing of

Information Technology (IT) is a well-established part of Sri Lankan banking sector. Although the

potential economic benefits of outsourcing are thought to be considerable, a growing number of

evaluation studies show disappointing outcomes since organizations tend to focus almost exclusively on

economic aspects, ignoring the human and social impacts. IT outsourcing poses a potential job loss threat

to IT professionals. This study investigated the perception level of employees directly involved in IT

outsourcing, deals in an effort to relate these perceptions to factors identified in earlier studies. The

following human resource factors associated with outsourcing were evaluated: skills, control, job security

and job satisfaction. The study uses an adopted model from a previous study and evaluated four

hypotheses that contended differences in perception in terms of demographic factors. The study used

survey questionnaire to collect primary data from the entire population of 52 permanent employees of IT

department of a leading private bank. Collected data was analyzed by use of descriptive and inferential

data analysis methods, this was done with aid of Statistical Package for Social Sciences (SPSS v.20. It was

revealed that permanent employees in this organization had negative perception towards IT outsourcing.

The hypothesis results revealed that age have a significant effect on employee perception. The study

recommends that organizations should embrace knowledge sharing programs, feed forward controls,

quality management strategies, management support, proactive communication, erect positive work

environment, recognition and rewarding to enhance level of perception on permanent employees thus led

to more successful outsourcing ventures. The study further recommends for more studies to be carried

out on different sectors to build on and further develop knowledge in this area.

Keywords: Outsourcing, Employee Perception, Information Technology




86

E-BUSINESS IN SRI LANKA: CUSTOMER PERCEPTION ON VALUE CREATION IN TRADE SECTOR

I. R. Malawige

University of Moratuwa, Katubedda, Sri Lanka [email protected]

E-business has emerged as a pioneering paradigm of present-day trade, with intense advancement of

information and communication technology (ICT). This growth in ICT has used to deliver main activities

in trade namely buying or selling, promotion, customer communication, and market studies, using various

methods of ICT, which generally involves simple to very complicated processes. However, all these

processes in trading activities has to design to achieve one goal in order to be effective, that is to achieve

customer satisfaction (preferably customer loyalty), by creating value to customer. Value creation is

producing product or service that meets customer demands, which involves innovation and new product

or service or process development intends to create prominence to customers and ultimately

stakeholders. These value propositions delivered through internal operations in e-business, namely

novelty, lock-in, complementarities, and efficiency, have limitedly researched in Sri Lanka. This research

statistically validates a model of e-business value creation, based on data drawn with interviews and

structured questionnaire referring to these four tactics. The study, with explanatory purpose and survey

strategy was carried out in 2018 covering 183 e-business customers in trade sectors in Sri Lanka to

achieve two research objectives: to identify sources of value creation in e-business and to examine

customer perception on created value in e-business. Mix research method was employed for data

collection and analysis to ensure achievement of these research objectives. The results demonstrate that

characteristics of the core product is more appropriate than complementarities in e-business to create

value in trade sector, as customers generally concern on what to purchase in number of viewpoints, and

then only they look at combined value of purchasing bundle of goods together against total value of

having each of the goods separately. The research also acknowledges the interconnectivity of these four

perspectives in strengthening value creation in e-business.

Keywords: e-business, value creation, operations, trade sector, Sri Lanka




87

LEGAL ISSUES ON ELECTRONIC TRANSACTIONS: SL VS. EU

Dilini T. Samayawardena Supreme Court


D.M. Thimalee M. Sachindrani

Presidential Commission Sri Lanka

[email protected] In the modern business epoch, the electronic transactions are considered as the key method of

transaction to deal with the global digital financial system. By entering into an era of IT advancement, the

e-transactions are being developed throughout the business world. Consequently, people have taken

place most transactions over the internet with using their electronic instruments as it is easy to fulfill

their requirements without wasting time. The e-transaction can be executed by the way of business to

business, business to consumer and consumer to consumer. It is noted that there is a massive growth in

e-transactions due to the globalization and it opens the door to the national e-business as well as to the

across-broader market.

By the common global consensus, Sri Lanka has taken a significant effort to develop the international e-

commercial law: vide the Electronic Transaction Act, No. 19 of 2006 as it is amended by the Act No. 25 of

2017. The crucial problem of this study is whether there is a sufficient protection to the consumers or

businesses throughout electronic transactions in Sri Lanka. This paper will be carried out based on the

qualitative method: primary sources viz. relevant Acts and secondary sources viz. relevant articles,

websites, journals, text book. The core objective of this study is to critically analyze the Electronic

Transaction Act in Sri Lanka comparing with the European Union Legislations relating to e-transactions.

Yet, the contemporary law in SL has not included any penal provisions to punish swindlers who may

cause grave loss or damage to innocent consumers. At the conclusion, this paper will recommend to set

forth a secured legal framework which deals with electronic authentication to the protection of

consumers and businesses.

Keywords: e-transaction, Sri Lanka, European Union, Data Protection, Electronic Signature





88

IMPACT OF ORGANIZATIONAL ELECTRONIC KNOWLEDGE REPOSITORY USE ON SOFTWARE PROJECT SUCCESS OF SOFTWARE

DEVELOPMENT ORGANIZATIONS IN SI LANKA

Nadun V. Hettiarachchi Department of Computing and Information Systems

Sabaragamuwa university of Sri Lanka. [email protected]

Shanmuganathan Vasanthapriyan

Department of Computing and Information Systems Sabaragamuwa university of Sri Lanka.

[email protected] Software development is a human and knowledge intensive activity. Software development organizations

have to make sure that the necessary knowledge is available for the software developers in order to make

best possible decisions. Organizational Electronic Knowledge Repository (EKR) can be used for this

purpose. But studies regarding how EKR affect to software project success and how different factors

affects to EKR use for software development activities is very rare. This study tried to find how EKR use

affects to software project success in terms of team performance, team members’ success and how

codification effort, task interdependence and perceived task-technology fit affect to EKR for software

development activities. Quantitative research method was used to gather information form software

developers of ten software development organizations in Sri Lanka which were using organizational

EKRs. Five hypotheses were tested using responses from hundred software developers. It was found that

EKR use has a significant positive impact on team performances and team members’ success. Even

though codification effort doesn’t show a significant relationship with EKR use, task interdependence and

perceived task technology fit show a significant positive relationship with EKR use for software

development activities. These findings are very important to the managers of software development

organizations to take investing, designing and managing decisions regarding organizational electronic

knowledge repository within the organization.

Keywords: Software development organizations, team performance, team members’ success.



89

Marketing Management



90

ROLE OF DIGITAL MARKETING IN RETAIL FASHION INDUSTRY: A

SYNTHESIS OF THE THEORY AND THE PRACTICE

R.M.U.R.K. Rathnayaka Department of Marketing Management

University of Peradeniya [email protected]

With the extensive technology development which has undertaken by the world, traditional concept of

marketing has fabricated with a digital mode that brings the whole world to the customer’s doorstep in

one click. The rising penetration nature of the internet and various faster digital communication channels,

wider networks and new devices and their connectivity with marketers made consumers more

informative and knowledgeable regarding the value they expected to return to the cost they incurred. The

utmost purpose of the study is to identify the impact of Digital Marketing in consumer behavior with

special reference to retail fashion industry. Secondary sources of data has used for the study and based on

the results of the secondary data analysis, conclusion has derived with the findings. Accordingly, the

research study addressed on how digital Marketing has changed the retail fashion industry and how it

effects on the consumer behavior. With the analysis, it has recommended Customer Relationship

Marketing as a strategic response to face the changes made from digital marketing in the retail fashion

industry. Also, it has identified on how the skills, attitudes and the behavior of the professional marketers

should be shaped in strategizing the Customer Relationship Marketing to the retail fashion industry in the

digital platform. The research study has conducted based on the secondary data sources such as

published journals, books, magazines, E blogs and syndicated research articles and a conceptual analysis

has conducted through number of theories, concepts and the models in marketing. Mind mapping, force

field analysis, Model of consumer decision making by Schiffman and Kanuk and relationship marketing

hierarchy are some of them.

Keywords: Digital Marketing, Customer Relationship Marketing, Consumer Behavior




91

INFLUENCE OF E-GOVERNANCE ON SERVICE QUALITY IN PUBLIC SECTOR ORGANIZATION IN SRI LANKA: A QUANTITATIVE CASE STUDY

Anton Michael Denesh

Faculty of Graduate Studies University of Colombo [email protected]

E-Governance is one of the major progressive concepts in Sri Lanka. Though the government of Sri Lanka

implemented the e-governance system in most of the public sector organizations and local authorities to

the benefits of citizens, it is still in its infant stage and developing gradually. The objective of the research

is to assess the service quality of e-governance in selected public sector organizations in Sri Lanka. Seven

variables were identified to explain the status of e-governance adequately. Incorporating the identified

variables, a questionnaire was prepared and administered among the potential respondents. The

questionnaire respondents were the public and clients of the Ministry of Public Administration and

Management and its affiliated Departments and Authorities. The data were cleaned for additional and

ambiguous inputs and statistically analyzed. The descriptive data were used to capture important

information regarding the general trends of the respondents. Using data summaries, meaningful cross-

tabulations were formed to find the relationship between measured independent and dependent

variables. Results revealed more than 80% majority of the e-services provided were compliant with

people demand. It was found that E-Governance is used to deliver services in many public organizations

and most of the public who have received services from public sector organizations were believed that

service quality of e-governance is effective and efficient compared to the manual method.

Keywords: influencing factors, Public Sector Organizations, service quality, survey




92

A STUDY TO IDENTIFY THE CAUSES AND PREDICT CUSTOMER CHURN IN TELECOMMUNICATION INDUSTRY IN SRI LANKA

Luxman Gnanakurubaran Information Systems with Business Management,

Informatics Institutute of technology [email protected]

M. Alroy Mascrenghe

Senior Lecturer and MSc BA - Course Coordinator Informatics Institutute of technology

[email protected]

Telecommunication (Telecom) is one of the major and indispensable industry that delivers technological

foundation for societal communications which has impacted each aspect of our lives. Customers switch

from one network service provider to another because due to many reasons. In telecom industry,

customer churn analysis has become a core research topic in recent years. The objectives of our research

are to find out the reasons for customer churn and predict customers who will leave the network in the

future.

Further, Problem domain was identified and industrial survey conducted to the right audience via

questionnaires and interviews. The analysis report revealed poor quality in billing services, Hassle in

complaints, Lack of customer loyalty and lack of transparency and gap between BI analyst and BU users

to communicate being the top reasons for customer churn. Requirements were elicited to design and

develop an ‘IT’ solution.

The proposed IT solution will look at the reasons from a sample set of data and propose a model whereby

customer churn can be predicted. Using computer algorithms and artificial intelligence techniques the

system will learn from past data and predict in the future.

Overall the application will increase the efficiency, effectiveness and productivity of the users and

digitization process make users to create the campaign easily the proposed application was evaluated by

field experts and received positive feedbacks from them.

Keyword: Telecommunication, customer churn, artificial Intelligence





93

THE ATTITUDE OF SMS ADVERTISEMENTS ON ATTITUDE TOWARDS BRAND: WITH SPECIAL REFERENCE TO DOMINO’S CONSUMERS IN SRI

LANKA

12 Sanduni D. Piumali Department of Marketing Management Sabara gamuwa University of Sri Lanka

[email protected]

The purpose of this research is to examine the relationship between attitude towards the SMS advertising

and attitude towards the brand with special reference to Domino’s outlets in Sri Lanka. For this purpose,

two objectives are developed and tested. And also, additionally another three sub objectives were

developed and tested. In this study empirically evaluated the two dimensions of attitude towards the SMS

advertisements (Positive attitude and Negative attitude) and their relationship and impact on attitude

towards the brand. The majority of the data was gathered using well-structured questionnaire. The

sample comprised of 250 male and female. The data analysis carried out using SPSS 21.0 where a factor

analysis was initially carried out to measure Reliability and Validity of the study. Next examined the level

of relationship between independent variable and dependent variable and the influence of independent

variable on dependent variable by conducting descriptive, correlation and regression analysis were

undertaken to achieve the objectives of the research. Research also discusses the greatest impact on

customers’ attitude towards the brand. According to the findings there is a significant relationship

between customers’ attitude towards the SMS advertisements and attitude towards the brand and also,

negative attitude towards the SMS advertisements negatively impact on attitude towards the brand and

positive attitude towards the brand showed positive impact on attitude towards the brand.

Keywords: SMS Advertising, Mobile Marketing, Brand Attitude, Customer satisfaction.




94

INTERNAL BRANDING, BRAND COMMITMENT AND BRAND CITIZENSHIP BEHAVIOR IN INSURANCE INDUSTRY

Wijenayaka, H.M.D.S.

Department of Insurance and Risk Management, Faculty of Management and Finance, SANASA Campus, Kegalle, Sri Lanka

Perera D.A.M.

Department of Accountancy, Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya, Sri Lanka

[email protected]

Brand citizenship behavior is comparatively new concept, which explores the behaviors of employees

towards customers in order to respect them or create intimate relationship to attract them and improve

activities of organization. The main objective of this study is to identify the effect of internal brand (IB)

management on brand citizenship behavior (BCB) in presence of brand commitment (BC) in insurance

industry of Sri Lanka. Therefore, this study integrated internal branding, brand commitment and brand

citizenship behaviors of employees; then, the influence of internal brand management on BC and BCB was

examined. Data was collected from 123 employees, including both executives and non-executives selected

through limited sampling technique. A standard questionnaire was employed to gather data and in order

to check the reliability of the questionnaire, Cronbach's alpha coefficient was used. For data analysis,

correlation test and regression analysis were used. The data base was created using SPSS (version 23)

software, and then the research hypotheses were tested accordingly. The findings reveal that internal

branding has a positive and significant positive effect on brand citizenship behaviors of employees, at

95% confidence level, along with it mediates the effect of brand commitment on these behaviors. The

results provide valuable insights for brand managers in insurance industry on how an internal branding

can be used to ensure the delivery of the brand citizenship behaviors, with the meditational effects of

employees' brand commitment.

Keywords: Brand citizenship behaviors, Brand commitment, Internal branding, Insurance Industry



95

IMPACT OF MARKETING MIX ON CONSUMER BUYING BEHAVIOR OF

HOUSEHOLD WOODEN FURNITURE: A CASE STUDY IN STATE TIMBER CORPORATION

H. M. N. M. Heenkenda

Department of Agricultural Economics and Extension, Faculty of Agriculture,

University of Ruhuna,SriLanka.

[email protected]

M.A. P. D. P. Wickramaratne

Department of Agricultural Economics and Extension, Faculty of Agriculture,

University of Ruhuna,SriLanka.

Analyzing the consumers’ insights on marketing of Household wooden furniture is essential to

survive in highly competitive market and to enhance the market share. In this background, the study

was carried out to examine the impact of product, price, place and promotion factors on consumer

buying behavior of household wooden furniture. To realize aforesaid objective, Sixty State Timber

Corporation (STC) furniture customers from Boossa and Pallekale showrooms were randomly

selected. Primary data were collected through field survey by using pre-tested structured

questionnaire. Consumer profile information reveled that majority of respondents were government

employees who belongs to high-middle income category.

Wilcoxon sign rank test was employed to find the most important factor under each dimension of

marketing mix. Accordingly, product factors such as quality, utilization, function, and durability were

more important for the customer’s purchase decision on STC Wooden furniture. Current payment

facilities and reasonable price for quality were mainly considered as price factors. Since, people

accepted that quality of the product is related with price. Place and promotion factors were not much

important to consumers compared to the product and price factors. However, convenience parking

and good aftercare services were prominently considered under place and promotion respectively.

Consequently, the results revealed that product and price factors have more significant influence on

purchase decision of STC Wooden furniture than place and promotion factors. Further, consumers are

expecting that the current payment facilities and delivery system should be improved. The outcomes

of this study suggested that it is important to identify the correct market segment and offer relevant

promotion campaigns to position the STC wooden furniture. Further, this study suggested that STC

should improve E-marketing while reducing prices by cutting down costs and wastages in order to

compete with the local competitors.

Keywords: Consumer buying Behavior, Marketing mix, Wooden Furniture



96

THE IMPACT OF STORE ATMOSPHERE ON CUSTOMERS’ PATRONAGE INTENTION IN SRI LANKAN SUPERMARKETS

R. P. D. Thanuja Maduwanthi

Department of Marketing Management Faculty of Management Studies


R.A. Chanaka Ushantha



Dr. R. M. Kapila Tharanga Rathnayaka

Department of Physical Sciences & Technology Faculty of Applied Sciences


Retail atmosphere is an imperative mechanism for retailers to differentiate their shopping experience

from competitors. An impressive and an attractive atmosphere of a retail store forms enjoyable

experience among the consumers and it directly affects consumers' purchase intention and their

decision-making process. The main purposes of this study are to examine the impact of store

atmosphere on customers’ patronage intention and to examine the mediating effect of customer

emotion on the relationship between store atmosphere and customer patronage intention. This study

concentrates six store atmosphere attributes namely display and layout, color, music, lighting,

cleanliness and participant factors as the independent variable and customer patronage intention as

the dependent variable. This study was conducted by using quantitative research approach and a

sample of 310 out of 365 consumers were taken who usually visited six retail outlets from three main

retail supermarket brands in Colombo district representing majority of the 62.3% in the 20-40 age

group while 23.9% respondents are comprised into 41-60 age group. The empirical analyses show that,

the customer patronage intention has the highest mean value (4.0284) and lowest mean value is

3.6381 and it is for lighting. Furthermore, the Pearson correlation results indicates the significant

positive impact on the store atmosphere and customer patronage (0.773) and customer emotion and

customer patronage intention (0.926) in the Sri Lankan supermarket industry. Indeed, the hierarchical

regression analysis with Sobel test results shows the direct effect of store atmosphere on patronage

intention (0.695) and store atmosphere has an indirect effect on patronage intention (0.727) through

its impact on customer emotions.

Keywords: store atmosphere, customer emotion, customer patronage intention, supermarkets






97

THE IMPACT OF STORE IMAGE ATTRIBUTES ON CONSUMERS’ STORE LOYALTY IN SRI LANKAN SUPERMARKETS

S.D. Dileesha Harshani Rathnasiri



R.A. Chanaka Ushantha



Dr. R. M. Kapila Tharanga Rathnayaka

Department of Physical Sciences & Technology Faculty of Applied Sciences


Store image attributes are an effective way to create store image, satisfy customers and build loyal

customers. The current research seeks to accomplish under the two objectives: to examine the impact of

store image attributes on consumers’ store loyalty in Sri Lankan supermarkets and to examine the

mediating role of store satisfaction in the relationship between store image attributes and store loyalty

in Sri Lankan supermarkets. In additionally, comparison analysis was done between the selected private

and government supermarkets based on the store six image attributes (merchandise, service, store

atmosphere, pricing, sales personnel and convenience), store loyalty and store satisfaction. A self –

administrated questionnaire was successfully distributed among the 412 respondents out of 436 were

selected through the stratified sampling and used for further analysis representing the majority of the

55% respondents were female, while 69% respondents were married. The empirical findings show that,

store atmosphere with the highest mean (3.9242) and store satisfaction with the lowest mean (3.5372)

respectively. Furthermore, the correlation analysis shows the significant positive impact of selected

store image attributes on store loyalty. Further, the hypothesis testing results confirm that the indirect

impact of store image attributes (0.000<0.05) on store loyalty through the store satisfaction.

Additionally, found a significant difference between private supermarkets and government

supermarkets in terms of their store image attributes, store satisfaction and store image attributes. This

means that, the consumers of private supermarkets tend to have higher store satisfaction than

consumers of government supermarkets in Sri Lankan supermarkets.

Keywords: Store Image Attributes, Store Loyalty, Store Satisfaction, Supermarkets






98

Tourism Management



99

FACTORS INFLUENCING THE USE OF PUBLIC URBAN GREEN SPACE IN

KUALA LUMPUR

Nur Syafiqah A Samad Department of Economics


[email protected]

Abdul Rahim Abdul Samad Department of Economics


[email protected]

Nur Fatihah Shaari Department of Economics


[email protected]



[email protected]

Siti Mariam Mellisa Abdullah Department of Economics


[email protected]

Previous research indicates that individual factor and urban green spaces (UGSs) attributes influence the

use of UGS. UGSs attributes are consist of the physical environment and perceived physical environment.

However, current research on the use of public UGSs conducted in European Countries and China stated

that there is a relationship between relevant knowledge and behavior towards the environment. With

this recognition and resulting from prior studies, there is a real need to investigate the relationship

between individual, UGSs attributes and knowledge and the use of UGSs thoroughly. A questionnaire

mainly based on the socio-ecological model was developed and distributes to the 400 respondents at 15

public UGSs in Kuala Lumpur (KL) city. The structural equation modelling (SEM) and reliability analysis

aid by SmartPLS tool applied to the items set to create a valid measurement scale. The results confirm

that physical environment attribute is the most important factor influencing the use of UGSs. The results

also indicate that all factors including individual, physical, perceived and knowledge significantly

contribute to the use of UGS. The findings suggested that the use of UGS not only depends on the element

of the socio-ecological model but it also influenced by another factor that is relevant knowledge. This

finding provides insightful implications for public authorities, UGS management and government sector

especially the Ministry of Education. The study indicated that while individual, UGS attributes and also








100

knowledge influence the use of UGSs, promotional campaigns should be launched to change user’s

attitudes and to position their use of UGS as a social trend. Other than that, the Ministry of Education

should introduce the environmental subject as a core subject at least at the secondary school level.

Keywords: Use of urban green spaces (UGSs), socio-ecological model, structural equation modelling

(SEM)



101

STAKEHOLDERS’ PERCEPTION TOWARDS COMMUNITY BASED ECOTOURISM DEVELOPMENT BY USING PARTIAL-LEAST SQUARE

STRUCTURAL EQUATION MODELLING (PLS-SEM): THE CASE OF MIN HOUSE CAMP, KUBANG KERIAN KELANTAN

Siti Mariam Mellisa Abdullah

Department of Economics Faculty of Economics and Management

Universiti Putra Malaysia [email protected]

Mohd Shahwahid Haji Othman

PDepartment of Economics Faculty of Economics and Management


Abdul Rahim Abdul Samad Department of Economics


[email protected]

Nur Syafiqah Abdul Samad Department of Economics


[email protected]

Nur Fatihah Shaari Department of Economics


[email protected]



[email protected]

Similar to other natural resourced endowed developing economies, Malaysia has also been aggressively

boosting ecotourism as a subset of the tourism industry. It has become apparent in recent years that

ecotourism in this country is gaining recognition, largely owed to the increasing worldwide awareness of

sustainability and environmentalism. One of a new form of ecotourism product is community-based

ecotourism (CBE) which is involved and managed locally by the communities in its development and

management, and substantial benefits remain within the community. In the tourism studies, previous

literature are focus only on local residents’ role and perception in tourism development, leaving a gap in

knowledge on stakeholders' involvement in tourism development process. Therefore, this study

investigates stakeholders’ perceptions’ and attitudes in supporting CBE development and their

willingness to pay for conservation and management fees to support such development. This study has




102

been conducted in the village of Min House Camp, Kelantan which certified as a Green Hotel in Malaysia. A

survey of 200 different stakeholders’ were collected using partial-least square-structural equation

modelling (PLS-SEM) to access the proposed measurement and structural models. Findings reveal that

stakeholders' support for CBE development is a function of perceived benefits and perceived cost of

tourism impacts and three exogenous variables of stakeholders’ involvement, knowledge of CBE, and

conservation attitudes. This tourism impacts also resulted in willingness to pay for conservation and

management fees to support CBE development. The proposed research framework also predicted the

impact of three exogenous variables on stakeholders’ support for CBE development through mediating

variables of perceived benefits and costs. Some practical implications of those findings for tourism

planning and development are also discussed.

Keywords: Ecotourism, Sustainability, Partial-Least Square-Structural Equation Modelling Community-

Based Ecotourism, Kelantan



103

FACTORS INFLUENCING THE INVOLVEMENT OF AIRLINE PASSENGERS ON CARBON OFFSET PROGRAM

Nur Fatihah Shaari

Department of Economics, Faculty of Economics and Management, University Putra Malaysia Serdang, Selangor, Malaysia.

[email protected]

Abdul Rahim Abdul Samad Department of Economics, Faculty of Economics and Management, University Putra Malaysia

Serdang, Selangor, Malaysia. [email protected]

Nur Syafiqah A Samad


[email protected]

Siti Mariam Mellisa Abdullah Department of Economics, Faculty of Economics and Management, University Putra Malaysia

Serdang, Selangor, Malaysia. [email protected]

Rabiatul Munirah Alpandi


[email protected]

The environmental problem nowadays has gained international attention and cannot be solved solely. It

is better to understand human attitudes and the behaviour in solving an environmental issue. The New

Ecological paradigm, the theory of Planned Behavior and other variables used from the literature were

employed to measure general environmental attitude, intermediate beliefs and specific behaviour

attitudes and norms. By adding a general and carbon-specific knowledge as a new variable in

intermediate beliefs, the outcomes demonstrate that both general and carbon-specific knowledge

contributes as one of the mediators in intermediate beliefs have a positive inclination towards the

intentions. The general environmental attitude directly has a relationship with the intentions and

together through the beliefs. A total of 407 Malaysian airline passengers were randomly surveyed at

Kuala Lumpur International Airport (KLIA) and Kuala Lumpur International Airport 2 (KLIA2). Using

SmartPLS, Partial Least Square Structural Equation Modeling was applied to investigate factor influencing

the involvement of air passengers on carbon offsets program. The contribution of this research is to

broaden the understanding of airlines passengers’ attitude towards the environmental problems and it

can be beneficial for airlines to promote carbon offset program worldwide.

Keywords: New ecological paradigm, theory of planned behavior, structural equation modelling (SEM),

carbon offset, airlines



104

INVESTIGATING THE IMPACT OF ELECTRONIC WORD OF MOUTH ON CONSUMERS’ PURCHASING INTENTIONS IN THE SRI LANKAN TOURISM

INDUSTRY

Wanigasekara Arachchige Maduni Hansika Department of Business Management,


The traditional Word of Mouth (WOM) is a mode of communication that was described originally as a

means of sharing opinion and comments as regards to the products and services that people were

transacting. However, word of mouth has evolved into an entirely new form of communication that

exploits modern technology. This is termed as electronic word of mouth (eWOM) communication. This

research has undertaken with the main purpose of exploring the impact of Electronic Word of Mouth on

Consumers’ Purchasing Decisions in Sri Lankan tourism industry. Population of the study consist of

1,164,647 and sample for the study has selected through adoption of Morgan’s table produced by Krejcie

and Morgan, 1970. Regression analysis has adopted in analyzing data. The results show that Sri Tourists

are very much influenced by eWOM. Accordingly, as far as the tourism industry is concerned, particular

organizations need to concentrate much on eWOM & when they design their marketing strategies, they

need to focus on more on the eWOM concept as a strategy of attracting tourists.

Keywords; Consumers, Electronic Word of Mouth, Purchasing Decisions, Tourism Industry



105

USE OF SOCIAL NETWORKING SITES BY TOURISTS FOR THEIR DESTINATION SELECTION PROCESS: A STUDY ON SRI LANKA

Katupelalla Mudalige Achini Nisansala Department of Tourism Management


[email protected]

Athula Gnanapala Department of Tourism Management


[email protected]

The social media has become the main promotion tool in today`s tourism industry with the rapid

development of Web 2.0. The objective of this study is to identify the influence of social networking sites

for the destination selection process of the tourists with special reference to Sri Lanka. A questionnaire

survey was carried out using 271 international tourists who visit Colombo, Sri Lanka to collect the

information to meet the research objective. The conceptual model was integrated three constructs such

as, social persuasion, information quality, and enjoyment as the independent variables and destination

selection as the dependent variable. The findings revealed that the social persuasion is the most affected

reason to use the social networking sites for the destination selection process of the tourists while

information quality and enjoyment also impacted on destination selection positively. Therefore, the

national tourism organizations and the destination management organizations can use the social

networking sites more effectively to attract the tourists while emphasizing the findings of the study.

Keywords: Destination selection; enjoyment; information quality; social media; social networking sites;

social persuasion.





106

CONSTRAINTS ON THE DEVELOPMENT OF RURAL TOURISM WITH SPECIAL REFERENCE TO INGIRIYA

M. D. Kalpani L. Gunathilaka Department of Geography

University of Colombo, Sri Lanka. [email protected]

Ingiriya is a developing town located in the western province of Sri Lanka. Between the administrative

boundaries of Western province and Sabaragamuwa province, Ingiriya town has created as a nucleated

settlement. The topography and the drainage pattern of the area have influenced for the attractive

landscape created in Ingiriya. The river Kalu is the source of this drainage pattern. The metric map of the

area clearly shows the rolling terrain and monadnocks or isolated hills to the eastward of Ingiriya. There

are specific landscapes that have already attracted domestic tourists in the country. These landscapes are

including Nachchimale, Madakada aranya senasanaya, Paraithota, Dombagskanda forest reserve

(Bodhinagala aranya senasanaya) , Bodhinagala bird reserve, Horakele reserve, Kura uda ella and Mawak

oya. Though these landscapes are attractive, have obtained a less attention value as tourist destinations.

These landscapes have the potential to develop rural tourism in the area while expanding the area into a

developed service area. However, the rural tourism has not highly raised in Ingiriya.

Therefore, it is necessary to identify the constraints affect the development of rural tourism in the area

which blocks regional development. The main objective of the study was to evaluate the constraints on

the development of rural tourism in Ingiriya. In order to fulfil the objective of the study, two sub-

objectives were assessed too. The study has used a structured questionnaire survey for villagers to

identify the constraints on rural tourism development. Water samples were collected to study the

suitability of landscapes for tourism.

Applying Leopold analysis method identified the most suitable landscapes for rural tourism in Ingiriya.

SWOT analysis and Stakeholder analysis have also done to highlight the constraints where the

stakeholder matrix prepared to identify the key performance roles. SPSS and Ms excel used to analyse

collected data. Aesthetic landscape value analysed via Leopold analysis method ranked the areas.

Accordingly, Nachchimale, Paraithota, Mawak Oya and Bodhinagala were the first four most suitable

landscapes for rural tourism destinations.

Overall study, has identified Nachchimale as the most appropriate landscape for the development of rural

tourism in Ingiriya. The negative behavioural aspect of villagers was significant and act as one of the main

constraints to develop these areas for rural tourism. Because of the highly fragile environment and

hermitage surrounding, it is necessary to conserve these landscapes without any disturbance. Less

publicity and fewer quality services were another main constraint in Ingiriya. Both SWOT and

Stakeholder analysis have revealed various constraints on the development of rural tourism. There was

no any proper management plan for tourism in the area. As a result, some of the domestic tourist

behaviours were not suitable for the society and the environment. Therefore, the necessity of a rural




107

tourism management plan was highly stressed with community participatory rural tourism management

to change the behavioural aspect of both tourists and villagers. The most primary strategic activity was

the proper publicity to disseminate the information on these destinations. The expansion and

development of the service area also identified to develop these landscapes for rural tourism

development.

Keywords: constraints, behaviour, landscape, Leopold analysis, rural tourism



108

WHY DOES A BUDDHIST WANT TO TRAVEL WHEN S/HE IS FULLY AT HOME ‘HERE AND NOW’?

Mahesh Hapugoda

Department of Languages, Sabaragamuwa University of Sri Lanka

[email protected] This review attempts to re-contextualize the western notion of travelling for leisure through the Buddhist

ontological theories advanced by the Kyoto School of Thoughts. As Buddhism understands it, the more

knowledge or information one discovers in the objective world the more one becomes entrapped in the

fictional darkness of ego or ignorance (avidyā). Though Buddhism does not deny the existence of a

material world, it rather traverses the inner emptiness of an individual and discovers the nothingness

that envelopes our existence to reach at prajnā (true wisdom); ‘the knowing of not-knowing’. Since the

western soul is ‘thrown into’ this inorganic world, ‘a foreign inhospitable universe’, he or she is

fundamentally suffering from a pain or alienation of not-belonging (Zizek 2001: 8). But Buddhism denies

searching for any beginning or end of our being in this world and encourages man to live in this moment

(here and now). By being conscious of the dying world that is alive in front of us, wherever he or she lives,

an enlightened Buddhist becomes ‘fully home’ when a western individual becomes ‘homeless’ or

‘dislocated’ in this very moment (Ibid, 9). So, in a Heideggerian sense, a western soul is motivated to

travel more in this alien world since he is trying to be fully at home by realizing his potential to be actively

and productively in exchange with it (Ibid, 9). The western soul is always an Outsider (divinely thrown

out) who wants to be a fully engaged Insider whereas a Buddhist is an Insider who wants to

transcendentally attend the self-joyous attainment of non-attachment where self is no longer attached to

itself (no ego). Hence, the Buddhist way of looking at the phenomenological world is, according to

Nishitani (2001), ‘those who lively walk in the Tokyo fashion houses right now, whether young or old, will

be skeletons in hundred years from now on’. For a Buddhist, there is a constant and unavoidable

synchronicity in life-in-death and death-in-life. The more one travels the more suffering and

disappointment one accumulates while adding more to the circle of life (samsāra) delaying the attainment

of nirvāna (the end of the circle).

Keywords: Buddhism; Kyoto School of Thoughts; Ignorance (avidyā); Circle of life (samsāra)



109

THE VALIDATION OF THE DESTINATION SUSTAINABILITY CONSTRUCT USING CONFIRMATORY FACTOR ANALYSIS: CASE OF

LANGKAWI, MALAYSIA

An Nur Nabila Ismail Department of Management and Marketing


[email protected]

Yuhanis Abdul Aziz

Department of Management and Marketing Faculty of Economics and Management


Anuar Shah Bali Mahomed



Norazlyn Kamal Basha



The environment and natural resources are the most crucial elements in the tourism industry. The main

highlight of one particular tourism destination depends on the attractiveness and the beauty of its nature.

Thus, travel destinations should sustain its natural environments. Most of the research today is more

likely to focus on the environmental management, but there is limited study that focuses on the

sustainability of the environment. This paper aims to validate several constructs that will be used to

measure the sustainability of destinations. These constructs are adapted from past studies and bring it to

the current study by making some adjustments to make sure the suitability of question with the current

study. This study is conducted at Langkawi, Malaysia because it is one of the top tourist destinations in

Malaysia and it has been recognized as a Global Geopark by United Nations Educational Scientific and

Cultural Organization (UNESCO). A total of 318 local and international tourists participated in this study

and the data was collected by using self-administrated questionnaires. To confirm the construct,

confirmatory factor analysis (CFA) was adopted by using SEM- AMOS. The finding indicates that there are

18 constructs that can represent the destination sustainability. The study’s practical implication and

limitation are discussed.

Keywords: Destination Sustainability, Confirmatory Factor Analysis (CFA), Langkawi, Malaysia



110

TOURIST ATTITUDES OF VISITOR MANAGEMENT TECHNIQUES IN SIGIRIYA FOR THE VISITOR EXPERIENCE QUALITY

D.M.K.D. Dissanayake


Sabragamuwa University of Sri Lanka [email protected]

R.S.S.W. Arachchi Department of Tourism Management

Faculty of Management Studies Sabragamuwa University of Sri Lanka

[email protected] Sigiriya is a destination identified as an over capacity attraction in Sri Lanka. The Visitor management

techniques can assist to control the problem. Visitor management techniques can use to improve the

quality of visitor experience. The Study has used both qualitative and quantitative approaches and data

were collected from 200 respondents. The Study conceptualized using service and infrastructure, source

of information, crowd management and safety (Independent Variable, Interesting, Relaxing and Pleasant

(Medium Variable) and Features, Impression, Service, Sensory and culture as dependent variable. The

findings highlighted there is a positive relationship between visitor management techniques and quality

of visitor experience in Sigiriya. And quality of visitor experience positively related to the repeat visit

intention. However, there are many areas visitors have negative attitude which need to improve such as

refreshment and catering facilities, sanitary facilities, Direction and signing facilities and medical

facilities.

Keywords: Visitor Management Techniques, Visitor Experience, Repeat Visit Intention



111

SOCIO-ECONOMIC IMPACT OF WILDLIFE TOURISM ON LOCAL COMMUNITY: A STUDY ON YALA NATIONAL PARK

D. H. Nipuni Dinusha Jayalath Department of Tourism Management


[email protected]



[email protected]

Tourism Industry, as one of the largest and fastest growing industries, has ability to generate both

positive and negative impacts on local community. Presently, the socio-economic contribution of tourism

on local communities has been recognized as one of the most vital aspects of the global tourism

operations. The wildlife tourism including national parks has recognized as one of the key areas that

creates impacts for locals. The previous studies also have emphasized the importance of the national

parks for the improvement of the livelihood of local communities. Therefore, the objectives of this study

are, first, to identify the socio-economic impacts of wildlife tourism on local community through Yala

national park, second, to identify the perception of local community on tourism development in their

neighborhood. The study was conducted using mixed methodology. The data is generated through a

structured questionnaire survey using 352 families in eight villages and personal interviews. The study is

conceptualized positive socio-economic benefits as income and standard of living, employment

opportunities, entrepreneurship development, investment, increasing the level of education, quality of

life, women empowerment, positive changes in values and custom (independent variables) and the local

community development (dependent variable). The study has identified that community is actively

involved in tourism and they also have positive perception regarding the tourism development. The

results show that there exists a positive impact of tourism trough employment generation,

entrepreneurship development, increased investment, improvements in quality of life, women

empowerment on community development. However, the study has identified that there is no impact of

tourism to increase the level of education and the positive changes of the values and custom of the local

community in the area. The findings highlight the positive social impacts are exist at a minimum level

when comparing with the positive economic impacts generates though tourism development in the area.

Keywords: Socio-Economic Impacts; Community Perception; Wildlife Tourism, National Parks; Local

Community Development



112

PERCEIVED QUALITY OF WELLNESS TOURISM AND ITS’ IMPACT ON REVISIT INTENTION OF THE TOURISTS WITH SPECIAL REFERENCE TO

AYURVEDA HOTELS AND SPAS IN SRI LANKA

W. M. Madusha Sepali Wellawatta Department of Tourism Management


[email protected]



[email protected]

Despite the considerable growth of the wellness spa tourism market, a few research studies have

examined the perceived quality of wellness tourism and its’ impact on revisit intention of tourists.

Therefore, the study focused on mainly two objectives, first, to identify the impact of perceived quality of

wellness tourism on revisit intention of the tourists and, second, to identify the factors affecting for

wellness tourists to revisit Sri Lanka. Deductive approach was utilized and mainly a questionnaire survey

was conducted to collect data using a sample of 294 tourists who visited the Ayurveda hotels and spas in

down south area of the country. The questioner survey was developed based on the dimensions of

previous research findings of Wang (2012) and Hana (2012) and examined the respondents’ perception

of treatment quality, service quality, price, rest and relaxation, safety and its effect on revisit intention in

wellness and spa centers in Sri Lanka. Descriptive statistics, correlation and regression analyses were

utilized to analyze the collected data. The findings highlighted that the observed dimensions i.e. price,

ability of rest and relaxation, perceived safeness and value were positively impacted the tourists to

revisit the wellness and spa centers in Sri Lanka. However, the perceived treatment quality and service

quality were not significantly influenced the revisit intention of the tourists. The tourists voiced that

treatment quality is vary from place to place based on the nature, size and management of such places.

Therefore, it is necessary to have a quality control and regulation mechanism to ensure and maintain the

treatment and service quality of wellness and spa centers in Sri Lanka. By referring this finding, wellness

service providers and regulating bodies can identify the major factors which affect to wellness tourists

perceived quality and their revisit intention.

Keywords: Ayurveda; Perceived Quality; Revisit intention; Spa treatments; Wellness Tourism





113

CAUSES FOR NEGLECTING THE SUSTAINABLE TOURISM PRACTICES OF SRI LANKAN TRAVEL AGENCIES BY FOREIGN TOUR OPERATORS IN

TRAVEL AGENCY SELECTION

Rumalka Amanthi Department of Tourism Management


[email protected]

Manori P. Kovilage Department of Tourism Management


[email protected]

Among all the entities in the Tourism Industry Supply Chain (TISC), travel agencies (TA) play a significant

role. Travel agencies connects the demanders and suppliers. For sustaining the tourism industry,

Sustainable Tourism Practices (STPs) can be followed by the TAs. A Foreign Tour Operator (FTO) is

another entity in the TISC which selects a TA to organize tours for the tourists in its country. Through the

preliminary study the researchers found that the majority of the FTOs of TAs in Sri Lanka have a better

concern on the sustainable tourism, but the priority given to sustainable tourism practices of TAs in TA

selection was very poor. The main objective of the study was to identify the causes for FTOs’ negligence

on STPs of Sri Lankan TAs in TA selection and to develop an Interpretive Structural Modeling (ISM) based

model of these causes. Through interviewing 30 tourism industry related experts, 37 causes were

identified and then a questionnaire survey was conducted among these 30 experts to select the dominant

causes of this research problem. Subsequently structured interviews were conducted with 10 experts to

identify the interrelationships among the selected 10 dominant causes. Then these causes were classified

using MICMAC and lack of demand from the clients (Tourists) of FTOs, FTOs’ poor awareness on the

“sustainable-tourism” and STPs are not a mandatory requirement for FTOs were identified as the driving

causes. Then sustainable tourism products are expensive than conventional products, other factors

(price, fast responsiveness, quality, suppliers) are more important than STPs, FTOs do not practice STPs,

FTOs do not offer products related to Sustainable Tourism were the dependent causes and lack of

awareness of FTOs about STPs at Sri Lankan TAs and difficulty of getting the involvement of green

suppliers were the linkage causes.

Keywords: Sustainable Tourism Practices, Travel Agencies, Foreign Tour Operators





114

TOURISTS’ PERCEPTION AND SATISFACTION ABOUT THE SUSTAINABLE TOURISM OPERATIONS IN MADU RIVER

Kaludura Madushika Gimhani Department of Tourism Management

Faculty of Management Studies, Sabaragamuwa University of Sri Lanka [email protected]

Athula Gnanapala

Department of Tourism Management Faculty of Management Studies, Sabaragamuwa University of Sri Lanka

[email protected]

The wetland tourism has become one of the most attractive niche market tourism segments in Sri Lanka

and, therefore, the tourists’ participation for those activities are increased gradually during the last few

years specially after ending the terrorism problem in Sri Lanka in 2009. The wetland eco-tourism can

define as a niche tourism segment of tourists who have particular favor at attraction, scenery and bio

diversity, boat safari and other activities in wetland destinations. The Madu River can be identified as a

popular natural wetland destination which use mainly for boat safaris and subsequently for other tourism

related activities. The ever-increasing tourist arrivals has created both positive and negative impacts to

the destination. Further, the tourists are also has faced various problems and issues at the destination.

Therefore, the identification of the tourists’ perception and satisfaction about tourism operation in Madu

River has become vital important. The main objectives of this study are, first, to identify the tourists’

perception and satisfaction about the tourism operation in Madu River and second to discuss the problem

and issues related to sustainable tourism development in Madu River. The research has conducted

through a questionnaire survey with 170 foreign and local tourists who has participated in boat safari in

Madu River. The study is conceptualized using the tourists’ perception regarding the attractions and

services, quality of boats, price and payments, safety and security, food and beverage, environmental

management, guide services and information, service quality, support services as the independent

variables and the tourists’ satisfaction as the dependent variable. The findings highlight that there is a

positive relationship between tourists’ perception and tourists’ satisfaction. Further, the tourists are

mainly satisfied with attraction and services, quality of boats, safety and security and guide services and

information and other observed factors are not positively contributed for their satisfaction. Also, the

study has identified many problems and issues which affect for the sustainability of the tourism in Madu

River. Mainly the contamination of kerosene oil with water which change the taste of fish. In addition to

that the price discrimination, unequal distribution of benefits, fast riding of boats, cutting of mangroves

and less economic benefits to the locals are the suffering problems and issues in the area. Therefore, the

relevant and responsible authorities should intervene to solve the issues and problems which affect for

the sustainability of the industry.

Keywords: Problem and issues; sustainable tourism; Tourist’s perception; Tourist’s satisfaction; Wetland eco-tourism.





115

THE IMPACTS OF TOUR GUIDE PERFORMANCE ON FOREIGN TOURIST SATISFACTION AND REVISIT INTENTION IN SRI LANKA

N.S.K.H.P. Sampath

Department of Tourism Management Faculty of Management Studeis


R.S.S.W. Arachchi

Department of Tourism Management Sabaragamuwa University of Sri Lanka

[email protected]

Tourism is a fast-growing industry in Sri Lanka. In that case stakeholders of the tourism industry act a

major role of developing sustainable tourism industry within the island. When considering about the

stakeholders of the industry tourist guides take important place. But sometimes when they are operating

their performance to achieve their targets while developing the sustainable tourism in Sri Lanka they

have to face many issues. As well as there are many problems in the performances of tourist guides in Sri

Lanka. In that case grabbed the data of the challenges of tourist guide working environment that impact

on their performance by using interview method and collected the data to understand the relationship

among tourist guide performance, tourist satisfaction and tourist revisit intention with a survey;

questionnaire. In that case15 respondents from tourist guides were interviewed. Tourist guides

performance are described using two major skills called Intrapersonal servability and interpersonal

servability with organizational skills. Then questionnaires were given to 150 respondents from tourists

who visit Sri Lanka. After conducting exploratory factor analysis, 5 challenges with 17 items that affect

tour guide performance in the context of Sri Lanka were generated. Finally, three intrapersonal

servability skills including appearance, work attitude and communication skill as well as four

interpersonal servability and organizational skills including empathy, solving problem skill, organization

skill and entertainment introduction skill were identified as the factors that have significant and positive

relationship with tourist satisfaction. Furthermore, identified that all above skills besides empathy have

significant and positive relationship with tourist revisit intention also.

Keywords: Challenges of tour guides, Tour guide performance, Tourist satisfaction, Tourist revisit

intention





116

THE CONTRIBUTION OF TOURISM DEVELOPMENT TO ECONOMIC GROWTH IN THE SRI LANKAN ECONOMY: A TIME SERIES APPROACH

Mohamed Aboobucker Haalisha

Department of Mathematical Sciences, Faculty of Applied Sciences, South Eastern University of Sri Lanka

Sammanthurai, Eastern Province, Sri Lanka [email protected]

This study investigates the causal relations between tourism development and economic growth for the

Sri Lankan economy by using Engle and Granger two-phase approach and a bivariate Vector

Autoregression (VAR) model. Two standard results arise from this study. First, the results of a

cointegration test designate that there is no long-run equilibrium association between two sequence.

Next, the results of Granger causality test suggest the uni-directional causal relationship of economic-

determined tourism development. The hypothesis of tourism-directed economic development is not

detained in the Sri Lankan economy. This consequence is sustained by analyzing the sensitivity of

causality test under distinct lag selections beside with the optimal lag.

Keywords: Sri Lankan Economy, Cointegration, Tourism development, Causality

http://www.icmr.sab.ac.lk

2018 · 3rd interdisciplinary conference of management researchers 23rd – 25th october 2018 –...

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