PAF – Karachi Institute of Economics and Technology North Campus

Course: MBR
Faculty: Dr Atif Aziz
Class ID: 10598
Examination: (Fall - 2020) Date: 05/12/20

Section A (All section carrying equal Marks)

Read the following information and answer it appropriately.

The sector of healthcare has evidently outlined tremendous development and progress (Almalki
et al., 2011; Cucciniello & Nasi, 2014), but the businesses in the sector are a little lacking,
particularly in the arena of innovation performance ( Moreira, Maria, Gherman, & Sousa; Tuan
& Venkatesh, 2010). In connection to Pakistan, a considerable hindrance comes from the
managers and leaders` weaker skills that could have helped address innovation performance (Al
Othman & Sohaib, 2016). Therein, it is important for such people in authority to understand that
there is a dire need to bring in such procedures through which innovative ideas and practices
could be developed and taken further for implementation (Iqbal, 2011). Notably, evidences are
available, outlining some measures taken in this regard in some private healthcare hospitals to
foster innovation. Therein, these hospitals are engaging their staff members in the decision
making process, incorporating innovative and creative strategies for recruitment and application
of work standards (MOH, 2013). There have sadly, been very limited studies in this regards
which could potentially guide and educate economy like Pakistan pertaining to how the
enhancement of management practices should be done to foster innovation performance
especially in the healthcare sector of the country.
Although many studies have proved that Human resource practices influence innovation
performance, the findings are inconsistent because previous studies on the relationship between
Human resource practices and innovation vary in identifying the set of practices that influence
innovation. The variation occurs because of the different approaches used to study the
relationship between Human resource practices and innovation. For instance, Long, Kowang,
and Wan Ismail (2015) identified the Human resource practices of leadership, strategic planning,
customer focus, process management, and people management. By contrast, Fernandese,
Lorenco, and Silva (2014) identified Human resource practices leadership, customer focus,
continuous improvement, involvement and development of people’s relationship with suppliers,
measuring results, and product design. Moreover, Schniederjans and Schniederjans (2015) found
that only soft quality practices (e.g., teamwork, employee involvement, employee empowerment,
and training) have an impact on innovation. Thus, the current study will try to clarify which
Human resource practices are successful in enhancing innovation performance. The relationship
between Human resource practices and innovation in previous studies shows that the relationship
has not been fully addressed by healthcare organizations. For instance, Mustafa and Bon (2014)
involved studying the relationship between Human resource practices and innovation in hospitals
is still uncovered. Although Human resource practices has been applied in Pakistan hospitals
since 1993, shortcomings are still found in the outcomes with regard to innovation performance
(Almaliki et al., 2011). Therefore, studying innovation is one of the main ways to tackle the
issue.
However, one of the common difficulties of Human resource practices implementation in
healthcare organizations is creating and supporting organizational quality culture (Mosadeghrad,
2013). Therefore, creating and supporting a proper quality culture is one of the important
indicators of successful Human resource practices such as Human resource practices
implementation in the healthcare sector. Quality culture and Human resource practices are an
ideal strategic system that forms the organizational management system and organizational
competitiveness, which is linked to the level of innovation (Büschgens et al., 2013). Human
resource practices support the organizational management system through the practices that
create a strong quality culture. A quality culture directs the managerial decision toward
effectiveness and innovation. Human resource practices and a quality culture create and support
strong competitiveness through innovation and creativity, particularly human innovation and
creativity (Hernández, González, & Aquiahuatl, 2013). Therefore, quality culture has an
________ role in the relationship between Human resource practices and innovation.

Important to note that, there are also evidences, suggesting that at times transformational
leadership may come up with varied results, particularly in connection to innovation
performance (Boerner, Eisenbeiss, & Griesser, 2007). In parallel, there are studies that found no
relationship between transformational leadership and how it could possibly enhance innovation
prospects (Jaussi & Dionne, 2003; Osborn & Marion, 2009; Wilson-Evered et al., 2001).
Henceforth, the mixed and inconsistent results of transformational leadership and its influence on
performance and innovation outcomes requires further studies (Pieterse et al., 2010). Therein, the
direction of the correlation can be changed when there exist a moderator effect within a
correlational framework. This statement supports the theory of Baron & Kenyy (1986), a basic
moderator effect can be explains that moderator-type effect which is suited in this context is
considered as the demonstration of a crossover interaction of the form that is the insufficient
explanation effect dependent variable.

In the light of above mentioned please newer the following question.

1) Suggest any appropriate research topic for above-mentioned scenario and describe
briefly?
2) Identify latent variables of independent, dependent, moderating and mediating variable
and develop conceptual framework?
3) Briefly describe logical justification which were given in above mentioned scenario to
conduct research on theoretical framework (dependent, independent, moderating and
mediating variables)?
4) In the sum, what do you think? Above mentioned statement highlights all the relevant
research gaps to conduct research?
Section “B”

Read the following information and answer it appropriately

Most of the studies on large firms have adopted quantitative measures of organizational
performance. In contrast, most studies conducted among SMEs have used qualitative measures
of firm performance.

Based on these several definitions of firm performance, this study defines SMEs’ performance as
the ability of the SMEs to effectively and efficiently utilize the available resources in order to
survive, satisfy customers and contribute to the creation of employment.

Many studies on firm performance have used several firm resources to investigate factor
influencing SMEs’ performance. Fornoni et al, (2012) study social capital, mediated by access to
resources, comprising access to finance, access to production, access to markets and access to
information to performance. They found that the performance of an entrepreneurial venture is
influenced by the entrepreneur’s access to finance, markets and information.

Other studies have used EO to investigate firm performance (Fatoki, 2012; Lechner &
Gudmundsson, 2012; Mutlu & Aksoy, 2014; Polat & Mutlu, 2012; Tang & Tang, 2012).
Likewise, several studies have used MO to examine firm performance (Charles, Joel, & Samwel,
2012; Huhtala, Sihvonen, Frösén, Jaakkola, & Tikkanen, 2014; Polat & Mutlu, 2012; Suliyanto
& Rahab, 2012; Wang et al., 2012). Other studies have considered LO as a variable that
improves firm performance (Farrell et al., 2008; Hakala, 2013; Martinette & Obenchain-Leeson,
2012; Mavondo et al., 2005; Nybakk, 2012; Suliyanto & Rahab, 2012). Finally, several studies
have used TO to investigate firm performance (Hakala & Kohtamaki, 2011; Hortinha, Lages, &
Lages, 2011; Voss & Voss, 2000).

Neely (2005) states that firm performance has several dimensions that are measured using
various dimensions in the literature. These include quality, human resources, delivery speed,
delivery reliability, price (cost), customer satisfaction and flexibility, as the important
dimensions of performance. However, time, quality and flexibility are normally used in
measuring firm performance (Neely, 2005). Finance, such as price and costs, is also considered
to be a critical dimension of performance (Otley, 2002). Apart from this, customer satisfaction
and human resources are considered crucial measures of firm performance (Clark, 2002). Neely
(2005) further argues that measuring these key factors will ensure balanced and multi-
dimensional performance that reflects the interest of the stakeholders.

Synthesis literature on following patterns

 Contextual background of study ( e.g. history of education sector of Nigeria)
 Definitions
 Dimensions
 Importance of variables
 Measurement
 Synchronization of study in the form of ( e.g. individual, personal and organization
factors)
 Consequences of variable
 Relationship between variable (theoretical and contextual)
Section “C” Marks: 30 (All questions carrying equal marks)

Read the following information and answer it appropriately.

Dr Javed is newly appointed as Head of research unit in MNC Company. In that connection, Dr
Javed required to design appropriate research methodology to conduct reserach. In that search,
he collected following information,

 The measurement, construct for exogenous and endogenous variables is not developed
yet and did not meeting all the criteria of measurement (Average, composite reliability
Alpha Cronbach); in sum, reliability and validity of construct are not proven yet.
 The complete information of target respondent is not identified which does not contain
any external heterogeneous and internally homogenous characteristics.
 The research focuses Subjective and inductive research approach. which will use open
end measurement.
 Krejcie & Morgan (1970) sampling technique will adapted to identify sampling size.
 The measurement will be adapted from the viewpoint of operational definitions.

In the light of above mentioned please newer the following question.

1) Suggest appropriated research approach (Quantitative, Qualitative or mixed research) for

above-mentioned situations and why?
2) Suggest appropriate sampling strategy (Probability or Non- Probability) and sampling
technique?
3) What are important steps should discuss in the PLS Software or SPSS (Measurement and
Structure model)?
2. Define below mentioned measurements table in your words and explain benchmark of each
parameters.

Table of Reliability
Composite Average variance
Latent Variables Cronbach’s Alpha
Reliability Extracted (AVE)
CS 0.4358 0.8741 0.5006
ES 0.7857 0.4570 0.5549
IS 0.7895 0.8337 0.4275
MS 0.8896 0.4230 0.6907
OS 0.8181 0.8661 0.4232
PA 0.7276 0.4166 0.5623
PC 0.7763 0.6768 0.4371
PE 0.4805 0.6919 0.5065
PN 0.6504 0.4933 0.6704
PO 0.7424 0.3244 0.5187
PS 0.9007 0.2187 0.5886
TS 0.2958 0.8084 0.5721
EI 0.7588 0.2346 0.5038
EP 0.8837 0.9073 2.5017

Note; EP= Employability, communication skills=CS, thinking skills=TS, management skills=MS, interpersonal
skills=IS, Computational skills=OS, Political skills=PS, Enterprise and entrepreneurs skills= ES, Neuroticism, PN,
Extroversion=PE, Open to Experience= PO, Agreeableness= PA, Conscientious=PC Emotional Intelligence = EI

3. Define below mentioned structure table in your words and explain importance of path
coefficient, T value and P- Value

Hypothesis/ Path Standard T-

Hypothesis P value
Relationship coefficient Error Statistics
0.0422**
H13 CS > EP 0.2043 0.0459 4.4533
0.1828
H14 TS > EP 0.1481 0.2862 0.5177
0.0709
H15 OS > EP 0.0086 0.1441 0.0599
0.0483**
H16 MS > EP 0.1422 0.0150 9.4705
0.3058
H17 ES > EP 0.2289 0.2611 0.8768
Section “D”

1. Why it is important to review literature before to conclude your findings in social science
research?
2. Differentiate between the limitations and future recommendations and describe relevant
information required in limitations and future recommendation?
3. The findings of social science research should be impact on society. Thus, these findings
should explain in practical implications. Do you agree?