TOPIC 1: USA

INTRODUCTION

This paper aims to identify the impact of experience, publications, gender, type of university, department
of the research papers of the faculty, level of faculty position on the salaries of the faculty members. This
paper will allow and assist the academic institutions to set a benchmark for the salaries wherein those who
plan to enter into the profession of teaching can also get an idea of the expected salaries they might
receive based on the mentioned determinants.

LITERATURE REVIEW

Tribunella et al. (2007) stated that the profiles of the faculty matter a lot when it comes to determine the
salary variation. In this context, the researchers bifurcated the faculty profiles into ranks (visitor, assistant,
associate, full), earned degree (bachelor, master, PhD), experience, number of publications in top tier
journals etc. It was found that the salaries of the faculty varied with the ranks, publications in top tier
journals, rank of universities etc.

In USA, the determinants determining the salary of faculty includes the age, experience, PhD, number of
publications, experience in other institutes, etc (Papay et al., 2017). As discussed in the above literature,
the ranking of the universities also have an impact on the salaries of the faculty. This research has
collected data from faculty of 9 universities in USA. F

Based on the literature above, following assumptions can be drawn:

H1: There is an impact of number of Publication on the Faculty Salary.

H2: There is an impact of number of Faculty ranking/position on the Faculty Salary.

H3: There is an impact of number of Doctorate Degree (PhD) on the Faculty Salary.

H4: There is an impact of number of Experience on the Faculty Salary.

H5: There is an impact of number of University on the Faculty Salary.

 Independent Variables

Publication

Position of Faculty

PhD

Faculty Salary
Rank of Universities

Gender

Experience

METHODOLOGY

The data is virtuously quantitative in nature in the form of ratios absolute and dichotomous values where
required. The approach will be deductive in nature, where we will be testing specific hypothesis and will
reach to a conclusion. This study will be using Causal-Effect Research design. Along with this, this
research needs its hypothesis to be answered, which can only be addressed by this research design.

The size of the sample if 786 wherein the sample was extracted using the Purposive Sampling. Purposive
Sampling is defined as the judgment sampling method where the researchers, by using their expertise
select a sample of participants who are most relevant to fulfill the purpose of the research. In our case, the
faculty from 9 renowned universities have been chosen to identify the impact of individual as well as
institutional profile on the salary of the faculty (McCombes, 2019).
In order to determine the impact of institutional and personal factors of the faculty on the salary, we will
be using the Multiple Linear Regression Model. This will take into account the data collected from
faculty of 9 universities of USA.

The above shown model has been influenced by the research conducted by Neely et al. (2008) wherein
they identified the positional, personal, and institutional factors and analyzed the data using correlation
and regression to identify the relationship and impact of independent variable.

Regression Model

As mentioned above, the independent variables can be bifurcated into individual and institutional
categories. It can be written in the following way:

Faculty Salary = βP XP + βI XI

The main regression model can further be broken down into the following variables;

Faculty Salary = α + βP1-P5XP1-P5+ βI1-I15XI1-I15

Dependent Variable:

In this research, we have opted Faculty Salary (Y) as the dependent variable. The data gathered for
faculty salary is in thousands of dollars, that is extremely large than the rest of the values of the
independent variables since the salary has been dictated annually leading to multi-thousand USD. This
data will be transformed into log in order to reduce the skewness and to bring uniformity in the data set
(Robbins, 2010).

Independent Variable:

The model above displays the coefficients attached to each of the independent variable. In order to
identify the magnitude of the coefficients and for cause-effect relationship identification, we will run
correlation and regression analysis.

ANALYSIS AND RESULT

Findings and Interpretation of the Results

For the sake of analysis, IBM SPSS Statistics 26 software has been used in order to find the effect or
impact of multiple independent variables on single dependent variable of Faculty Salary. Out of 786
responses, 107 responses had no salary, hence it made no sense to add the same in the analysis as it will
deviate the result.

Reponses
Total Responses 786
Deleted - No Salary 107

Firstly, we will identify the relationship among the variables using the bivariate Pearson correlation
analysis as it measures the strength and direction of relationship among the variable (Yeager, 2022).

In order to determine the direction of relationship and magnitude of coefficients of the

independent variables on the faculty salary, the following regression model can be extracted.
Faculty Salary = α + βP1-P5XP1-P5 + βI1-I15XI1-I15

α represents the constant impact of non-identified variables on salary. It depicts that even in the
absence of the used variables; there will be some constant impact on the salary which in our case
has a magnitude of 11.108. It shows that even if all other coefficients are 0, there will be an
impact of 11.108 on Salary or the salary will increase by 11.108 units.
 Faculty Salary = 11.108 + 0.002XP1 +0.000XP2 - 0.003XP3 + 0.003XP4 - 0.019XP5 -0.001XP6
- 0.157XI1-.075XI2 +0.164XI3++0.113XI4+ (0.056+0.098+0.019-0.066-0.034-
0.086+0.060+0.024) XI5-I13+(-0.169 - 0.003)XI14-I15

Explanation of Coefficients:

XP1 and XP2 representing publication index and total article pages shows that 1 unit increase in index
level or number of pages of articles will increase the faculty salary by 0.002 and 0.000 units (negligible).
The positive sign shows that there is a positive relationship between salary and publication index. The
result is in concurrence with the study conducted by Bick et al. (2018) in which they identified that
increase in number of pages / articles published in The American Economic review (AER) is likely to
increase the salary by 1.3% - 1.9% / year.

XI1 - XI4 - represents the positions held by the respondent faculty in the universities they are affiliated
with. In this regard, it was found that assistant and associate professors have a negative impact on the
salary wherein full time professor and department chair have a positive relationship with faculty salary.
The result have been found similar to the study in which full time professor’s as well as department
head’s salary is associated with high salary as compared to those lower in the rank. The study also
identified the difference in the salaries of positions occupied in different department like Accounting,
Management, and Economics etc (Bergeth, 2007). Moreover, Papay et al. (2017) also concurred with our
results stating that those faculty members possessing significant positions often get salary boost. Being
the head of a department, current or former is statistically significant, resulting in an increase in salary for
holding that position (Bergeth, 2007).
Explanation of Variance Inflation Factor (VIF) and Collinearity:

VIF is the measure of the correlation between the target independent variable and with the rest of the
variables in the regression model. A high VIF indicates that the particular variable is highly correlated
with the rest of the determinants wherein low value helps to understand whether the variable is necessary
in the model (POTTERS and LI, 2019). A value of 5 or greater for VIF is desirable for multicorrelation.
Among our variables, the highest correlation is of Full time professor with the rest of the variable wherein
no variable has shown 0 correlation making a little impact with the rest of the variables in the model.
Explanation of Residual Analysis of the Regression Model:

The analysis depict the difference between the predicted and observed depended variable value.

Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 10.6957388 12.1131372 11.2589172 .24274066 679
Residual -1.21930850 1.08185470 .00000000 .23344156 679
Std. Predicted Value -2.320 3.519 .000 1.000 679
Std. Residual -5.146 4.566 .000 .985 679
a. Dependent Variable: lsalary
 pubi top20ph indian
ndx totpge assist assoc prof chair d Yearphd female osu iowa a purdue msu minn mich wisc illinois y92 y95 y99 exper
Pearson .496** .497** -.343** -.297** .536* .121** 0.042 -.091* -.160** 0.030 -0.008 -0.024 -0.068 -.120** 0.043 .086* 0.072 -0.023 -.242** -0.025 .265** .424**
*
Correlation

lsalary Sig. (2-tailed) 0.00 0.000 0.000 0.000 0.00 0.002 0.277 0.018 0.000 0.439 0.834 0.532 0.076 0.002 0.259 0.025 0.062 0.550 0.000 0.509 0.000 0.000
0
N 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679 679

Table 2 – Correlation
It can be seen in the table above, publication index, total pages in articles, gender, professor, full professor, department chair, OSU, MINN, MICH,
WISC, Experience has a positive relationship with the salary of the faculty, wherein assistant, associate professor, year of PhD, gender, IOWA,
INDIANA, PURDUE, MSU, ILLINOIS, Y92, Y95 have a negative relationship with the Salary.

Table 3 - Model Summaryb

Change Statistics
Std. Error of the
Model R R Square Adjusted R Square Durbin-Watson
Estimate R Square Change F Change df1 df2 Sig. F Change

1 .721a .520 .505 .23696275 .520 35.573 20 658 .000 .887

a. Predictors: (Constant), exper, minn, y95, chair, female, illinois, yearphd, indiana, purdue, iowa, assoc, osu, totpge, wisc, top20phd, y92, assist, msu, pubindx, prof

b. Dependent Variable: lsalary

Based on the result of Model Summary, it is evident that the regression model fits the data set provided by 52% or there is a 52% similarity in the
observed data and the model prepared for faculty salary. As stated by Zach (2019), an R square value of 0.95 or more is considered reliable.
 Table 4 - ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 39.950 20 1.997 35.573 .000b
Residual 36.948 658 .056
Total 76.897 678
a. Dependent Variable: lsalary
b. Predictors: (Constant), exper, minn, y95, chair, female, illinois, yearphd, indiana, purdue, iowa, assoc, osu, totpge, wisc, top20phd, y92, assist,
msu, pubindx, prof
The overall reliability of the model can be shown with the help of Sig value, which is less than 0.05.if the
value of Regression Sig is less than 0.05, it is interpreted that the independent variables have a significant
impact or reliably predict the variation in the dependent variable i.e. faculty salary.

CONCLUSION

As per the analysis, it can be concluded there is a significant impact of variables highlighted in Sig value
column of table 1 on the salary of the faculty that are the publication index, total page of article, assistant
professor., full time professor, year of affiliation with the institute of the faculty and experience which has
also been supported by previous literature as well.
 TOPIC 2: UNITED KINGDOM
INTRODUCTION

Innovation is defined as the idea, invention that is transformed into a good or service with a value that a
customer is willing to pay. Some of the examples of innovation is the introduction of touch screens,
electric cars, rockets taking to you mars, batteries with longer ranges etc. (sinnaps, 2015).
The innovation in the organizations depends on multiple determinants including size of the organization,
market structure, profit / net income of the firm, and growth where the intensity of impact depends on the
nature of the firm. As per one of the study conducted in Australian manufacturing businesses,
determinants of R&D, size, profit and market structure show high impact on the innovation in high-tech
firm wherein the same variables show less significance in low-tech firms (Bhattacharya and Bloch, 2004).
Innovation as a service is defined as the new approached of experimentation that has a huge impact on the
efficiency of the organization (Taillieu, 2022). Some of the examples of service innovation includes
enhancement of the usage of the product, customer support i.e. after sales services, warranties, guarantees
etc. Moreover, this innovation enhances the utility of the product or the offer. Some of the example of
service example includes Amazon-Smile, which is simple way to support one’s charitable organization
every time one shop at a low or no cost. The services will be similar to that on Amazon.com, but an
additional innovation of donations from the shopping amount, without any additional deduction (Witell et
al., 2016). Hence, the service oriented company; Amazon.com has made the innovation in the service via
Amazon-Smile.
This paper intends to identify the impact of cooperation agreement and size of the firm in terms of
employees on the innovation development of 4922 companies of UK.
Based on the above-mentioned literature review, we can derive the following assumptions:

 There is a significant impact of size on the innovation in firms.

 There is a significant impact of Cooperation agreement on innovation in firms.

METHODOLOGY
Research Method: The research has extracted the Secondary Datafrom the database of UK innovation
survey analysis that holds information for the innovation in companies and how size and cooperation
arrangement influences the innovation in the company.
Sample Size: This research has taken into account 4922 cases or companies into account as the sample
out of the population of all the companies in the UK. The companies have been extracted using simple
random sampling technique where each company in the population of UK has equal chance of being
included in the study.
The software that will be used for analysis is the SPSS Statistics 26.
Steps in Data Sorting: Initially, as it is evident by the data of firm size, the numbers are random and
multiple. Hence, for sorting, we have been recommended to transform the size of the firm into three
labels i.e. Micro (1) for number of employees ranging from 0-9; Small (2) for number of employees
ranging from 10-49; Medium (3) for employees 50-249 and rest to categorize large (4). This will reduce
the data to 4 categories only and will give the following descriptive analysis.

Size Labelled

Frequency Percent Valid Percent Cumulative Percent

Valid Micro 559 11.4 11.4 11.4

Small 2018 41.0 41.0 52.4

Medium 1636 33.2 33.2 85.6

Large 709 14.4 14.4 100.0

Total 4922 100.0 100.0

Statistical Technique: Since the study tends to identify the impact of cooperation agreement and size of
the firm on innovation, the best statistical technique to do so is the Regression Model development where
dependent variable will be the innovation and independent variables will be size and cooperation
agreement.

Following regression model can be developed:

Innovation = α + βsizeXsize + βCoop.arr. XCoop.arr
βsizeXsize– Coefficient and units of size
βCoop.arr.- Coefficient and unit of Cooperation Agreement
Since, the data for innovation has been provided to us segregated into logistics, manufacturing, product,
service and support; we will transform the data into cluster using the cluster analysis first, before
analyzing the regression model since we need to have a single dependent variable of innovation.
Therefore, we will perform Cluster Analysis before Regression Analysis.
Factor Analysis is the powerful data reduction tactic that allows the researcher to identify the variable in a
number of variables that cannot be measured easily. It allows to extract the most viable or relevant
variable in the provided data set.

ANALYSIS AND RESULT

\ FACTOR ANALYSIS:
First, the dependent variables of innovation have been omitted using the Factor Analysis. By running the
Factor Analysis, following result has been obtained:

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings
Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.223 44.457 44.457 2.223 44.457 44.457
 2 .866 17.320 61.777
3 .772 15.444 77.221
4 .575 11.505 88.727
5 .564 11.273 100.000
Extraction Method: Principal Component Analysis.

SPSS Tutorials (2022), states that Eigenvalue of 1 or greater should be taken into consideration to identify
the significance of the variable. In this case, the only variable that is greater than 1 is variable 1 i.e.
innovation in goods with a R square of 44.46%. This means that innovation in good is the only dependent
variable among all that has the highest variation among the rest as depicted in the Cumulative % as well
as Total value of Eigenvalues 44.457% and 2.223. Hence, the only dependent variable viable in this case
if the innovation in good and rest must be omitted.

REGRESSION ANALYSIS:

Model Summaryb
Change Statistics
Adjusted R Std. Error of Durbin-
Model R R Square R Square
Square the Estimate F Change df1 df2 Sig. F Change Watson
Change
1 .379a .143 .143 .456 .143 411.942 2 4919 .000 1.836
a. Predictors: (Constant), Size Labelled, Cooperation
b. Dependent Variable: Innovation goods
 The variables of size and cooperation agreement only account for 14.3% variation in innovations
good that is very low. As stated by Zach (2019), an R square value of 0.95 or more is considered
reliable. Hence, we can say that the reliability of our regression model is low and more
independent variables need to be added to increase the reliability.

Coefficientsa
Standardized
Unstandardized Coefficients
Model Coefficients t Sig.
B Std. Error Beta
(Constant) -.007 .013 -.517 .605
1 Cooperation .135 .010 .191 13.182 .000
Size Labelled .032 .005 .090 6.236 .000
a. Dependent Variable: Innovation services

The model can be rewritten as -

Innovation = -0.007 + .135Xsize + .0.32 XCoop.arr
Hence, the result shows that there is a positive impact of size and cooperation agreement on the
innovation of goods that has been concurred by previous researchers as discussed in introduction.

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 26.514 2 13.257 141.857 .000b
Residual 459.696 4919 .093
Total 486.210 4921
a. Dependent Variable: Innovation services
b. Predictors: (Constant), Size Labelled, Cooperation
The ANOVA table shows the overall acceptability of the regression model. The overall reliability of the
model can be shown with the help of Sig value, which is less than 0.05.if the value of Regression Sig is
less than 0.05, it is interpreted that the independent variables have a significant impact or reliably predict
the variation in the dependent variable.

ANOVA ANALYSIS:
Cooperation Agreement:
As per the rule of thumb, there must be greater than 2 levels of categories of independent variable which
in this case negates the application of analysis since there are only 2 categories i.e. 0 and 1 (Bevans,
2020).
Size of firm:

ANOVA
Innovation goods
Sum of Squares df Mean Square F Sig.
Between Groups 78.615 3 26.205 115.424 .000
Within Groups 1116.556 4918 .227
Total 1195.171 4921

The table shows that there is significant difference among the means of micro, small, medium and large
firm size hence making sure that the variation in the dependent variable is real and not merely a chance. It
has been suggested with the help of F value which is greater than 1 and with the help of sig value which is
less than 0.05.

Multiple Comparisons
Dependent Variable: Innovation goods
Tukey HSD
Mean 95% Confidence Interval
(I) Size Labelled (J) Size Labelled Difference (I-J) Std. Error Sig. Lower Bound Upper Bound
Micro Small -.212* .023 .000 -.27 -.15
*
Medium -.364 .023 .000 -.42 -.30
*
Large -.423 .027 .000 -.49 -.35
*
Small Micro .212 .023 .000 .15 .27
*
Medium -.152 .016 .000 -.19 -.11
*
Large -.212 .021 .000 -.27 -.16
*
Medium Micro .364 .023 .000 .30 .42
*
Small .152 .016 .000 .11 .19
Large -.059* .021 .028 -.11 .00
*
Large Micro .423 .027 .000 .35 .49
*
Small .212 .021 .000 .16 .27
*
Medium .059 .021 .028 .00 .11
*. The mean difference is significant at the 0.05 level.

The table above shows that the main difference has been concluded due to the difference in
means of all groups which is evident by the sig values in which all are less than 0.05 making sure
that all accounts for the fitness of the model.
CLUSTER ANALYSIS:
This analysis allow the researcher to identify the spot that causes the association or pattern in
data but not the cause of the association or pattern (Qualtrics, 2018). It clusters or group data that
has similar responses to other variables (ProfAndyField, 2017).
As evident in Annexure 1 of the Cluster diagram, the areas made clustered of are responsible to
make the overall difference in means, variance in innovation of goods and other responses of the
analysis conducted in this research.

CONCLUSION
Hence, with the help of multiple analysis conducted in this study i.e. regression, ANOVA, factor
analysis and clustered analysis, it is evident that there is a positive impact of firm size in terms of
employees and cooperation agreement on the innovation of goods and there has been less impact
on the rest of the innovation categories. The findings has been confirmed in the following
literatures.

Cooperation arrangement, lastly determine the impact of the innovation linkages of the company on the
innovation outputs and inputs. The results shows that cooperation in the non-R&D activities positively
influence the introduction of new product. The developing countries company rely on coexistence with
companies who invest heavily on the innovation. The cooperation can either be in the form of learning the
innovation tactics and passing on to the employees via training, or using the capabilities of the partner
regarding the innovation and measuring the impact on the products and services developed by it
(Fernández Sastre and Vaca Vera, 2017).
Innovation is not self-concentrated and is based heavily on the requirement of the market and the
customers. For a manufacturing firm, product innovation is of prime concern. Product innovation is
defined as the development and introduction of redesigned and improved goods or services in the market
as per the needs and wants of the customers (Witall et al., 2016).
Annexure 1
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