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The IUP Journal of Management Research

October '09
Focus

Indian industrial activity is segmented into tiny, small, medium and large enterprises. Small and Medium Enterprises (SMEs) play a vital role by supporting the large enterprises as ancillaries and equally serve the final consumers by producing and selling the goods.

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A Cluster Analysis Study of Small and Medium Enterprises
Organizational Justice Perceptions as Predictor of Job Satisfaction and Organizational Commitment
Organizational Culture and Organizational Climate as a Determinant of Motivation
Customer Satisfaction with Indian Mobile Services
Indian Consumers' Perception of Country of Origin on Organizational Capabilities
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A Cluster Analysis Study of Small and Medium Enterprises

-- Meena Sharma and Pawan Wadhawan

The study attempts to cluster the successful Small and Medium Enterprises (SMEs) according to their growth mode and strategies. Cluster analysis is used to derive the taxonomy of successful SMEs. Discriminant analysis is used to ensure accuracy of the clustering process. The discriminant function explained 97.8% of the total variance between clusters. About 11 variables related to characteristics of the firm, entrepreneurs and entrepreneurial dynamics were used as clustering variables. Three clusters were formed which were characterized as stable independent survivors, innovators with continuous growth, and network intensive units. SMEs in the first two clusters were growth-oriented, but the underlying nature of growth was different in each cluster. SMEs in the first cluster were efficiency-oriented, while those of the second cluster were characterized as innovators with continuous growth and SMEs in the third cluster were labeled as stable independent survivors. They had a few network relations and many operated only in the local markets. The results can be of use to SME policymakers and organizations fostering entrepreneurship and SME development because different policy initiatives may be required for different types of firms.

Organizational Justice Perceptions as Predictor of Job Satisfaction and Organizational Commitment

-- Kuldeep Kumar, Arti Bakhshi and Ekta Rani

The present study explores the relationship between perceived organizational justice, job satisfaction and organizational commitment, using a field sample. The results indicate that distributive justice is significantly related to job satisfaction while procedural justice is not. Also, both distributive justice and procedural justice are found to be significantly related to organizational commitment. Theoretical and practical implications of the results are discussed.

Organizational Culture and Organizational Climate as a Determinant of Motivation

-- Prabhjot Kaur Mahal

Organizational climate has a potentially rich, but largely unrealized role in the development of an organization as well as to raise the motivation of employees. Researchers perceive problems arising from significant culture and different climate affecting the management and motivational level among the employees. The study examines the influence of organizational culture and climate on the motivation level among 100 adult employees working in Ranbaxy with the help of various questionnaires. In particular, organizational climate factors include environment, team work, management effectiveness, involvement, reward and recognition, competency and commitment. These factors have been found to influence the motivation and viewed as a multidimensional construct. The study is based on the non-probabilistic cum convenience sampling techniques. The results indicate that all eight variables are positively related to the motivation. It also tries to explain that to improve the motivation level among employees one must try to improve the organizational culture and climate.

Customer Satisfaction with Indian Mobile Services

-- Makam S Balaji

This study investigates the antecedents of customer satisfaction with Indian mobiles services. The American Customer Satisfaction Index (ACSI) model is used as the framework to examine the causal relationships among customer expectations, quality, value, satisfaction and loyalty. The responses were collected using a structured questionnaire from 199 post-paid mobile subscribers in a major city in India. The results from structural equation modeling show that perceived quality is an important predictor to customer satisfaction, which ultimately results in trust, price tolerance and customer loyalty. The findings provide valuable managerial insights for managing customer satisfaction and loyalty.

Indian Consumers' Perception of Country of Origin on Organizational Capabilities

-- Ponnam Abhilash and Subhadip Roy

This paper discusses about consumers' perception of country of origin effects on organizational capabilities and industries. An affirmative result would suggest that marketers could favorably align their promotional strategies considering the Country of Origin (COO) effects. Multiple Correspondence Analysis (MCA) was used to study the COO effects. The results prove the existence of COO effects more acutely for few countries and less intensively for others. The overall results do not nullify the existence of COO effects by and large.

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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