Browsing by Author "Peter, S."

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Are you a thrill seeker or a safe zone seeker? Impact of demographic factors on risk behavior of undergraduates in Sri Lanka.
(In: Proceedings of the International Postgraduate Research Conference 2017 (IPRC – 2017), Faculty of Graduate Studies, University of Kelaniya, Sri Lanka., 2017) Himasara, T. M. H.; Peter, S.
There is considerable interest in factors that influence individuals' decision-making behavior, in risky contexts. These differences in behaviour have important implications for economic outcomes including occupational choice, investment and consumption choices and insurance coverage. A number of studies have documented the effect of demographic variables such as gender, age, height, education level, income level, marital status and family background on risk behaviour. However, many of these studies have been conducted on human risk behavior, based on the European or Western context while the studies in the Asian context is limited. Therefore, this study attempts to evaluate the risk behaviour of young adults in Sri Lanka and to establish the relationship if any, between individual characteristics, external stimuli and risk behaviour. The research question addressed is, ―What factors determine risk behaviour of young adults in Sri Lanka?‖. A modified version of the Sitkin and Pablo model (1992) was used as a conceptual model to assess risk behavior which was adapted to focus on individual risk characteristics. A cross sectional study was carried out among young adults in five state universities in Sri Lanka using snow-ball sampling method to assess their risk behavior. This sample represents approximately 52.63% amount of the total number of students enrolling Sri Lankan state universities annually. Risk behavior was assessed by their likelihood of engaging in risk related activities associated with their daily life through a scenario based questionnaire. The findings suggest that among the demographic factors, only gender, education stream and the number of dependents were found to be significant. Furthermore, according to the normality test, the distribution of the risk behaviour tends to be right– skewed, suggesting that the overall risk behaviour of an average young adult in Sri Lanka is comparably low. Results also revealed a significant difference in risk behaviour between males and females. Males tended to exhibit high-risk behaviour compared to females. This result was robust even when the education background of the sample was evaluated, with the male dominated stream of engineering, showing the highest risk-taking behavior when compared to the arts, management and sciences. As expected, we found evidence to indicate an inverse relationship between number of dependents and risk behavior. The results could be used in functional areas such as marketing, finance and human resource management in the corporate sector, across multi industries to design and develop new products, understand customer behaviour and financial investment patterns.
A behavioural model to assess risk behaviour of young adults
(Faculty of Science, University of Kelaniya, Sri Lanka, 2016) Himasara, T.M.H.; Peter, S.
Risk behaviour of young adults have progressively escalated over the past few decades. It generally emerges during adolescence, resulting from a sense of invulnerability, combined with boldness. Therefore, young adults for whom risk taking is a preoccupation of daily life, provide a normative sample for assessing risk behavior. Human risk behaviour has been analyzed mainly based on Western context while studies in the developing country setting is limited. The literature review suggests the need of a tool to evaluate the risk behaviour of young adults in a developing country setting and also the need to establish the relationship between individual characteristics, external stimuli and risk behaviour. The study aims to elicit factors that determine risk behaviour of young adults in Sri Lanka and how these factors can be used to develop risk profiles through a comprehensive model. The behavioural model of the determinants of risk behaviour suggests that this is determined by two individual factors, namely risk propensity and risk perception. Risk propensity was found to be positively related and risk perception was negatively related to risk-taking behaviour. It was further postulated that risk perception partially mediates the effect of propensity to take risk. The model was later extended to analyse the effect of risk on decision-making behaviour in organizational settings where the reconceptualised model describes the joint effect of both dispositional and situational factors on decision making along with organizational and problem characteristics. The reconceptualised model of risk behaviour has been used to form the basis of the model and it has been modified according to the Sri Lankan context by including the individual characteristics and excluding the specific organisational related elements. The individual characteristics influence risk preference while both risk preference and inertia will affect the risk propensity of an individual. The way the problem is framed is influenced by attitudes, beliefs, knowledge and experience. Furthermore, the value systems, norms and cultural ideologies form the social influence which affects the risk perception and finally together with risk propensity affects risk behaviour. The proposed model has been developed through review of literature, and interviews with a number of young adults with a dispersed set of individual characteristics and will be validated in the next phase.
A Behavioural Model to Assess the Risk Perception and Behaviour of Individuals in Investment Decisions
(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Mendis, M.N.M.Y.; Peter, S.; Niwunhella, H.
Risk behaviour is the controlled conduct of people in contexts with uncertainty, where there is a possibility of the outcome received deviating from the outcome expected. As any kind of investment bears a certain proportion of risk, investors qualify as a competent sample in analyzing risk behaviour. Investor behaviour depends on external factors such as macro stability, expected earnings, broker recommendations, dividends paid and stock marketability, as well as internal factors such as herd behaviour, optimism and risk appetite of the investor. In developing countries like Sri Lanka, the investment markets are less informationally efficient and investor risk appetite is a less prominent factor. Therefore, the need of upgrading the investment culture of a developing country through a customized model which accurately determines the investor risk appetite has become a timely need. Although numerous studies have been carried out, use of a psychological approach to explain the investor behaviour remains relatively unexplored. The overarching goal of this study is to assess the determinants of risk behaviour and how these factors can be used in developing a comprehensive model that facilitates categorization of people according to their risk profiles. This study focuses on interpreting the individual investor behaviour through a combination of the cognitive psychological approach of perceived self-efficacy and the reconceptualized model of risk behaviour in a developing country context. Perceived self-efficacy is the concept where people’s beliefs and perceptions on their own personal abilities affect their actions taken to reach designated goals. The reconceptualized model suggests that an individual’s risk behaviour is dominated by two major characteristics, namely risk propensity and risk perception. It was further specified that risk propensity positively affects the risk-seeking behaviour while risk perception has a negative effect on it. The reconceptualized model incorporates the cognitive psychological approach of perceived self-efficacy to the risk behaviour model. The risk behaviour model has been adjusted by removing the organizational-related factors from it. The developed model is validated through expert opinion and data obtained from investors who engage in high risk investments.
Board Independence and Corporate Performance
(Faculty of Graduate Studies, University of Kelaniya, 2015) Peter, S.
The large number of dramatic corporate collapses around the world over the last decade, focused attention on the importance of corporate governance to the long term success of a firm. The separation of ownership from management raises a key issue of how to effectively monitor managers to ensure that they act in the best interest of the shareholders and other stakeholders as well. The role of independent directors in improving the effectiveness of control has been the subject of debate in academic literature, especially in the context of a culture of poor corporate governance. The study explores this issue, paying particular attention on the relationship between corporate board independence and firms‘ financial performance in Sri Lanka. Using data obtained from Colombo Stock Exchange for the period 2004 through 2009, a sample consisting of fifty non-financial firms were used to assess board independence and their possible effects on firm performance. Data was gathered through published reports and a primary survey. Independence of the board was deconstructed to board composition as measured by proportion of independent directors and proportion of non-executive directors, and board leadership structure as measured by CEO non duality. The firm performance was measured using both financial and market performance indicators. After controlling for industry, firm size and changes in leadership structure, the results indicate support for stewardship perspective, with no convincing evidence to indicate that inclusion of independent directors is associated with improved financial performance. The weak governance structure which could be exemplified by ownership entrenchment, cross sitting of board members and lack of cumulative voting may explain the lack of evidence found. However, the results indicate that inclusion of independent directors is valued by investors and reflected in enhanced firm value.
Classifying risk and vulnerability in the supply chain during an epidemic outbreak
(Faculty of Science, University of Kelaniya, Sri Lanka, 2020) Perera, M.A.S.M.; Wijayanayake, A.; Peter, S.
Companies always try to maximize shareholders' value by reducing the cost and maximizing profits in the long terms. However, one of the primary difficulties they face in doing so, is because of disruptions in the supply chain (SC). The supply chain can be disrupted due to natural disasters, manmade catastrophes, strikes, legal disputes, and special cases like epidemic outbreaks. The study explores what causes the supply chain to be disrupted in a company during an epidemic outbreak. It focuses on the Sri Lankan apparel industry as it contributes 6% to Sri Lanka’s GDP and 44% percent to Sri Lanka’s National Export Revenue, which is a significant proportion of the country’s economy. The primary objective of this study is to identify the supply chain risks in order to be prepared, mitigate the effects and ensure business continuity. The study proposes a model to identify the SC risks and vulnerabilities during an epidemic outbreak, and which risks should be prioritized. The model was primarily developed through a systematic review of literature and information collected from experts in the apparel sector was used to validate the findings. Leading apparel manufacturing companies in Sri Lanka were selected through convenience sampling and managers with more than five years’ experience were selected through random sampling. Using the output, the identified risks are then analysed and mapped in a vulnerability matrix considering cost and time factors. The model was tested and validated using 80%-20% rule. 80% of the collected data was used to develop the model and 20% of the collected data was used for testing and validation. Moreover, experts’ opinions were also used to validate the vulnerability matrix. Loss of local key supplier, loss of international key supplier, local port closure, international port closure, transportation link disruption (other than ports), raw materials delays and shortages, human resource shortages, product demand variations, order cancellations and lead time variations are SC risks which are considered for this study. The loss of international key suppliers and order cancellations were classified as high risks, whereas, human resource shortages were classified as the least risk. Though, a generalized vulnerability model is developed in this study considering cost and time factors, it can be customized using different factors and risks depending on the experience and needs of the company. Participants for the survey assumed that customers are international, and suppliers are both local and international. The study can be further developed to identify the SC strategies which should be taken to mitigate the SC disruptions during an epidemic outbreak or during a major global crisis.
A conceptual framework to assess supply chain risk in the apparel industry.
(International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Erandi, H.; Peter, S.
Along with the advent of globalization and the championing of free trade together with improved communication and transportation systems, enterprises have the ability to source supplies from a globally distributed supply chain. However, on the flip side, due to the complexities in dealing with a dispersed network of suppliers, manufacturing companies are facing risks of disruption to their supply chains. As risk is very context dependent, it is important to identify supply chain risks in different contexts and industries. Sri Lankan apparel industry plays a major role in the country’s economy, making it vital for companies to engage in proper identification and assessment of these risks. Therefore, the objective of this study is to conceptualize a model to assess identified supply chain risks and thereby to generate an overall risk assessment score for an apparel manufacturing company. The initial base for risk identification is through the use of the Ishikawa model. The cause and the effect for supply chain risks were established by analysing the initial data collected and via industry experts, a list of risk classes and sub classes were formed. Thereafter, a modified version of risk numeric analysis model is used to setup each and every class weight where industry experts’ opinion is taken for calculating the appropriate weights. Instead of using Analytical Process Hierarchy (AHP) which was used in the original model, Analytical Network Process (ANP) is used to prioritize the identified risk classes. The decision to use ANP is due to its ability to consider the complex inter relationships and linkages between risk classes and sub classes during the prioritization process. Finally, an aggregate score is developed for the overall company in terms of the supply chain risks by using the scores obtained for each risk class. The model will highlight the different types of supply chain risks that an apparel manufacturing company may face and how a proper mechanism can be developed to quantify these risks. The model would facilitate the company to directly identify the magnitude of each and every supply chain risk and the risk distribution via the overall risk score of the company. The risk score can be used by managers as a flag or an indicator that signals the company about potential risks. Apart from that, this model can be used to compare historical figures to monitor and evaluate the overall risk scores of the company. Furthermore this risk score can be used to compare the company performance with other competitors’ score values and to analyse how competitive the company is within the industry.
Consumer behavior models and microfinance in Sri Lanka: A systematic review of literature.
(International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Senasinghe, V.; Peter, S.
Study of consumer behavior helps enterprises understand the psychology of the customers on how they make their purchase decisions. The objective of this paper is to present a comprehensive review of the literature on the models of consumer behavior. The studies on consumer behavior and consumer decision making have developed various theories and models to explain the consumer behavioral patterns. There are two types of cognitive models that are widely used. Analytical models provide a framework of the key elements that are purported to explain the behavior of consumers and prescriptive models provide a framework to organize how consumer behavior is organized. The theory of buyer behavior is an analytical model and it provides a sophisticated integration of various social, psychological and market influences on consumer decision making. There is, however, widespread questioning of the model’s validity due to the lack of empirical work. In the consumer decision model, many of the elements are similar to those presented in the buyer behavior model. However, the structure of presentation and relationship between the variables somewhat differs. The model is also critiqued to be too restrictive to adequately accommodate the variety of consumer decision making situations. Theory of reasoned action is a prescriptive model and it is a further development of the Fishbein model which proposed that a person’s overall attitude toward an object is derived from his beliefs and feelings about various attributes of the object. Theory of planned behavior which is an extension of theory of reasoned action is developed including an additional mediating variable between intentions and behavior. The model of goal directed behavior can be described as humanistic in its approach as it seeks to explore concepts introspective to the individual consumer rather than describe generic processes. Microfinance relates to the provision of financing to those traditionally unable to obtain funds due to lack of formal income sources. Due to the mushrooming of companies offering the product due to the low default and the high interest rates charged, assessing risk behavior of these customers have become critical. Misuse of the product may cause the entire industry to fail and deprive legitimate customers from obtaining much needed finance to uplift their economic status. In the literature, there are no models relating to the customer risk behavior in microfinance. Therefore, the general consumer behavior models are used to try and explain customer risk behavioral patterns in the microfinance. Though the contexts differ in these two instances, since the loans could also be considered as products and a customer is involved, the models used in consumer behavior are assumed to depict the same type of behavior in the microfinance industry as well.
Customer perceived quality management practices and organizational performance: Case of private healthcare sector in Sri Lanka.
(International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Sowmiya, B. A.; Peter, S.
Quality in a healthcare organization is three dimensional: patient quality is what patients say they want, professional quality is what professionals believe patients need (outcome and process), and management quality is the optimisation of resources to provide patients what they want and need, without waste, errors or delay, and within the policy and legal regulation. Therefore, Patient perceived quality is the overall service quality of healthcare organization. Perceived service quality is the customer’s judgment about the service’s overall excellence, based on perceptions of what is received and what is given. Most studies on quality however, have focused on the manufacturing with relatively less focus on the service sector. In Sri Lanka, private healthcare services have flourished with even the middle to lower income people patronizing their services. This growth has had a positive effect on public healthcare service in raising their standards and service level from what they were previously. The study investigates the impact of customer perceived quality management (QM) practices on organizational performance in selected private healthcare providers. The study assesses the extent to which customer perceived QM components have been implemented in these hospitals and to identify which of these customer perceived QM components are associated with improvement of performance at these hospitals. The study was restricted to the Western Province which the Private Health Services Regulatory Council reveals has over 40% of the private hospitals in the country. Hence, the sample included a total of eight healthcare service providers which comprised some of the leading healthcare providers in Colombo. Many previous studies have focused on the customer-perceived quality in services. Parasuraman in his study on customer-perceived quality, reduced the original ten factors that he identified to five: tangibles, reliability, responsiveness, assurance, and empathy. This SERVQUAL model has been successfully used to assess quality in the services industry including the healthcare sector. In general, many studies have found the application of SERVQUAL to be reliable in the health-care context. This study used the SERVQUAL model as a basis to assess the private healthcare sector in the country. It should be noted that interpretation and operationalization of some of the variables were adjusted to suit the local context. Dimensions of SERVQUAL model, reliability, responsiveness, assurance, empathy and tangibles were assessed while performance was measured using both financial as well as non-financial indicators. The study found significant evidence to establish a relationship between customer perceived QM components and organizational performance of healthcare firms. The regression analysis results suggest that customer perceived QM components, reliability, responsiveness, assurance, empathy and tangibles all contributed to the improved performance. The results of the study can be used by hospitals to better understand customer needs and thus enhance the levels of patient satisfaction.
Developing a model to identify the factors affecting customer satisfaction and their impact on third party logistics services in Sri Lanka
(Faculty of Science, University of Kelaniya, Sri Lanka, 2020) Egodawela, S. M. D. T. K.; Peter, S.; Wijayanayake, A.
Locating on a major east-west trade route near India, Sri Lanka has significant geographic advantages that are necessary to become a major logistics hub in South Asia. Despite its underdeveloped economy, the island country's total trade volume is around $ 88.9 billion (2018), making it a major hub for the region. A number of shipping lines use this site to, consolidate and deconsolidate cargo for transhipping to various destinations. Considering logistics performance, Sri Lanka was ranked 94th out of 167 countries according to the World Bank’s 2018 Logistics Performance Indicator (LPI). Therefore, Sri Lankan Logistics and Freight Forwarder Association has identified that the country needs to move up on the index, while providing a competitive service to the customers’ need. Both practitioners and scholars recognize the fact that embracing corporate sustainability as well as enhancing customer satisfaction can produce several relevant business benefits such as decrease of the intention to switch. Although past research captures the relationship between customer satisfaction and service quality through a combination of the SERVQUAL (service quality) model or the SERVPERF (service performance) model, however, the controllable factors may influence this relationship when considering the Third Party Logistics (3PL) industry in Sri Lanka. The model developed explores both service and performance, and other controllable factors affecting on customer satisfaction and their impact on the 3PL industry in Sri Lanka. It considered all key influencing factors and their relationship with each other using a systematic review process and complemented by reviews from industry experts. The model constructs include relationship performance as the independent variables while the impact of the 3PL industry on customer satisfaction has been measured using customer loyalty, customer switching behaviour and customer complaints which also been considered as dependent variables. Tech initiation has been recognized as a moderator variable for the operational performance and the Organizational image has been recognized as a controllable variable of customer satisfaction. The study results show that there is a statistically significant impact of the overall dimensions on the customer’s satisfaction and it implies that 8.09% of customer Loyalty depends on the above four independent variables and 18.85% of Switching Behaviour and 6.30% of Customer Complaints depends on all the independent variables. The proposed model which has verified will lead 3PL service providers, to distinguish significant factors, which have a considerable effect on the customer satisfaction. Further, the outcomes would assist the 3PL providers to minimize customer switching behaviour and switching costs, as they have a clear idea about the expectations of customers that should be fulfilled when delivering 3PL services.
Evaluating the Factors that Affect the Reverse Logistics Performance in Plastic Supply Chain
(Department of Industrial Management, Faculty of Science, University of Kelaniya Sri Lanka, 2022) Thilakarathne, H. G. K. L. S.; Wijayanayake, A. N.; Peter, S.
Reverse Logistics includes all the processes involved in moving goods from their typical final destination to recapture value or for proper disposal. This study aims to identify the factors affecting reverse logistics performance within the plastic supply chains in Sri Lanka and the identification of factors that would facilitate the enhancement of reverse logistics performance. Factors were identified through literature review and by industry experts. Factors were classified under five domains: economic and market factors, knowledge and awareness factors, policy and legislature factors, management and leadership factors, and technology and infrastructure factors. Factors were analyzed using the Partial Least Squares, Structural Equation Modelling (PLS-SEM) technique to evaluate their effect on reverse logistics performance. Results of the analysis show that the policy and legislature factors are the only significant factor to affect reverse logistic performance in plastic supply chains in Sri Lanka. All the remaining factors do not show a significant relationship with the reverse logistics performance though they show a positive correlation with the performance.
Evidence of maturing of the Colombo Stock Exchange: Informational efficiency perspective
(International Research Conference on Smart Computing and Systems Engineering - SCSE 2018, 2018) Upeksha, P.G.S.; Peter, S.
Due to the dynamic nature of capital markets, understanding the informational efficiency of financial markets has become crucial for investors. An implication of an efficient market hypothesis is that no excess returns can be gained from available information, since it is believed that information is priced already in the stock. The objective of this study is to assess market efficiency of the Colombo Stock Exchange (CSE) in Sri Lanka, which is one of the emerging markets in the world. In order to test for weak form efficiency, stationarity of the selected time series is tested using Augmented Dickey-Fuller test. Sri Lanka stock market as a whole and the top three sectors with the highest market capitalization, exhibit random walk processes. Event study methodology is used to assess semi-strong efficiency. Preliminary analysis using both market model and GARCH model revealed that information disclosure of the selected companies has no significant impact on the returns in the CSE as a whole or on the returns of the particular sector.
Ex-Dividend Day Stock Price Behaviour - Evidence from Colombo Stock Exchange
(Faculty of Graduate Studies, University of Kelaniya, 2015) Karunaratne, P.; Peter, S.
Efficient market is one in which prices fully reflect available information. Implication of an efficient market is that no excess returns can be made since current prices already reflect all available information. Recent research supports the hypothesis that CSE is not a semi-strong market and as a result there is a possibility for investors to make abnormal gains. The objectives of this paper was to identify ex-dividend price behaviour of stocks at the CSE and to identify suitable trading strategies around ex-dividend day to exploit this anomaly. A sample of 85 listed companies‘ with 470 ex-dividend events were selected covering the period January 2003 to December 2012. Relative Liquidity Ratio (RLR) was used to divide the sample into two groups to control for liquidity. Initially the stock price behaviour on exdividend day was examined using Raw Price Ratio (RPR), Raw Price Drop Ratio (RPDR) and Market Adjusted Price Drop Ratio (MAPDR). Thereafter, the event study methodology was used to examine the abnormal returns and abnormal volumes on and around ex-dividend day using the market model, mean adjusted returns model and market adjusted returns model. The findings from RPR, RPDR and MAPDR implied that the stock prices drop by less than dividend on the ex-dividend day. The results from the event study implied significant positive abnormal returns and volumes on and around ex-dividend day. This finding is consistent with the short term trading hypothesis, but could not be explained by the taxation hypothesis. Further, the results indicated that for the liquid stocks there are significant negative abnormal returns on cum-dividend day followed by significant positive abnormal returns on exdividend day. For the least liquid stocks there are significant positive abnormal returns on exdividend day followed by significant negative abnormal returns on the following day. These results also confirm that the CSE is not information efficient and investors have the opportunity to make unusual gains by trading around ex-dividend day.
Impact of Customer Orientation Practices in Supply Chain, on Supply Chain Performance
(Faculty of Graduate Studies, University of Kelaniya, 2015) Peter, S.; Heiyantuduwa, M.
The study presents a conceptual model that links customer orientation practices and supply chain performance. Rising competitiveness has motivated businesses to seek innovative and effective methods to build competitiveness across all value enhancing activities of its operations. Recent research have highlighted that ―Companies do not compete; supply chains do‖, leading the companies to seek means of achieving sustainable business success through collaborative supply chains. Further, identifying and satisfying, or rather going beyond satisfying customers‘ expectations is essential for sustaining business performance. Linking these two important notions; supply chain focus and customer orientation, this study presents a model that enables assessing how the use of customer orientation practices, affects supply chain performance. Several models on customer orientation and on supply chain performance measurement were analyzed and subsequently combined and adjusted to suit the specific requirement. Expert opinion was used in the process of refining the proposed model. The presented model categorizes customer orientation practices in supply chain in to three main categories as information sharing practices, operational practices and customer service practices. Under each of these there are several sub categories of practices defined. This multi-tier categorization allows specifically identifying which type of practices impacts the most or least on supply chain performance in the context of a particular supply chain, or a particular industry. Hence the use of the model is twofold, as it enables ascertaining if there is a significant impact of using customer orientation practices, on supply chain performance in a certain firm or industry, as well as identifying best practices of customer orientation in that context. Therefore it is capable of providing guidance in implementing customer orientation practices in supply chains, and thus effectively enhancing supply chain performance.
Microfinance and poverty alleviation: Case of the Northern Province in Sri Lanka
(Faculty of Graduate Studies, University of Kelaniya, 2015) Sivatheepan, B.; Peter, S.
The paper evaluates the impact of microfinance on poverty alleviation in the Northern Province of Sri Lanka. After being the central area of conflict over the last three decades, the cessation of hostilities has provided the residents of the province the opportunity to rebuild their lives and recommence their economic livelihood. Since many residents have limited access to funds, the microfinance product has become a key component in the revival of the economy in the region. Data was collected and analyzed in 2013, through a structured questionnaire, from all five districts in the Northern Province where microfinance is offered by banks and a large number of private financial institutions all competing to offer the product as the returns and risk on the product are deemed very attractive. The conceptual model associates beneficiaries‘ income and living standards with the key dimensions of the microfinance product which include interest cost, credit availability and the credit appraisal process. An econometric methodology using the ANOVA model was used to assess the data. The results of empirical analysis indicate a positive relationship between microfinance and poverty alleviation in the period under study. Awareness levels of the population on the micro finance product were extremely high. However, a lack of an integrated credit appraisal system and competition among vendors to attract customers has provided an enabling environment for possible misuse of the product. Access to low cost funding and high interest rates has made the product very attractive even for the more established financial institutions, though the objective of using the product to alleviate poverty has got blurred. The results are similar to what was found in Bangladesh, where it was found that microfinance not only contributes to alleviating poverty, but also contributes to overall human development in the country. However, the results are contrary to what was observed in Indonesia, where it was found that the impact of micro finance on various household outcomes is generally insignificant.
Model for consumer purchasing behaviour of Generation Z
(4th International Research Symposium on Pure and Applied Sciences, Faculty of Science, University of Kelaniya, Sri Lanka, 2019) Kahawandala, N.; Peter, S.
The free market economy and the lifting of restriction of trade across national boundaries have provided the consumer, the opportunity to choose from an increasing product range. As the consumer is spoilt for choice, manufacturers face intense competition to catch the attention of the discerning customer. Generation Z consumers have been identified as unique as they are the first generation of digital natives who are born with digital chromosomes in their DNA. Therefore, this segment of the market differs in their characteristics, needs, attributes and work style from other generations. Their influence and economic power are expected to increase rapidly and their buying power is currently estimated as more than $44 billion. They spend approximately a quarter of their time online, but are known to selectively filter this digital information first, before making the purchase decision. In order to cater their demands with a proper strategy, it is important to investigate the determinant factors of these buyer’s, characteristics and actions. Although there are models like Technology Acceptance Model; theory in information system and theory of reasoned action; theory in social psychology which has been used previously to investigate purchasing behaviour, their ability to factor the unique characteristics of this market segment is questionable. The purpose of this paper is to develop and test an extended research model based on the Theory of Planned Behaviour (TPB) that identifies factors influencing the purchasing behaviour of generation Z. TPB is a well-known psychological theoretical framework which links one’s beliefs and behaviour. It states that attitudes towards behaviour, subjective norm, and perceived behavioural control together shape an individual’s behavioural intentions. The proposed extended model of TPB incorporates the additional constructs of market mavenism, technology self-efficacy and social identity to capture the specific characteristics of the Generation Z. Expert opinion from selected personnel in academia and industry were used to validate the proposed model. Implications of this validated model can be utilized to assist in predicting potential consumer adoption behaviour and in designing favourable shopping environments that are compatible with these specific consumer traits
Model to assess factors influencing performance of customer orientated supply chains: The manufacturing firms‟ perspective
(Faculty of Graduate Studies, University of Kelaniya, 2015) Peter, S.; Thilakarathna, R.H.
The dynamic external macro environmental changes that are happening have a major impact on businesses around the world. Businesses which were cocooned and protected from outside forces due to protectionist policies were accustomed to dealing with and managing competition at the industry level and firm level. However, opening up of markets to worldwide competition has made even these internal rivalries more intense. It‘s a well-known fact that today it‘s not just a competition at firm level, but it has expanded to a level where it has become a competition between supply chains. In this sort of a context being customer oriented and embedding customer values in the supply chain environment becomes highly important to make the supply chain more appealing to customers amidst these varying conditions which they do not control. The relationship between customer oriented practices and supply chain performance is an intriguing relationship which is now becoming a focus of research. This paper outlines a framework that could be used to identify the impact of factors influencing the relationship between customer orientated supply chains and supply chain performance. Past literature on this relationship was analyzed and several existing models by various authors were identified. These models were later used as the basis and other factors influencing this relationship which were studied separately, were collated into the base model to make the model comprehensive. These included organizational learning, supply chain practices, interactive infrastructure, innovation in supply chains, and supply chain capabilities. Expert opinion was used in the process of refining the proposed model. The framework conceptualized through the study could be used to assess supply chain performance and key variables impacting on the relationship between customer orientated supply chains and supply chain performance.
A Model To Determine Factors Influencing the Decision-Making Process of Consumer Online Purchasing in Sri Lanka
(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Wickramasinghe, D.M.; Peter, S.; Niwunhella, H.
There are a wide range of products and services available online where the consumers can conveniently shop anytime from anywhere in the world. Despite the steady growth in e-commerce over the past few years, the rate of penetration of online shopping in Sri Lanka remains low. The available literature contains evidence that advocate that there is consumer reluctance, resistance and hesitation to engage in online shopping, due to diverse reasons. Inarguably, online and offline channels present different shopping experiences, even in instances where the same product is purchased. It is therefore, vital to investigate the consumer behaviour related to online shopping. According to well established literature, negative attitudes and motivation of the consumer, lack of trust and less propensity to take risks impedes the consumer-online vendor relationship. Consequently, a conceptual framework has been developed integrating perspectives from consumer behaviour, trust and risk propensity as a significant step towards a better understanding of the consumer. It has been developed primarily based on the theory of planned behaviour, Mayer’s trust model, and the risk propensity from Pablo and Sitkin Model. The conceptual model investigates the main antecedents which influences consumers to engage in online shopping through the identified predictors. A systematic set of hypotheses are formulated on the basis of the conceptual model and a methodology is developed for testing and analysing such behaviour. While the constructs from theory of planned behaviour and consumer trust have an impact on the purchasing behaviour, the risk propensity of the consumer has a moderating effecting on the antecedents. The conceptual model has been initially validated by expert opinion. The conceptual model will be tested subsequently, through an empirical study. The final model would be of use to the marketing practitioners, academic researchers and the industry.
A multi-pronged approach to assess informational efficiency of the Colombo Stock Exchange.
(International Research Symposium on Pure and Applied Sciences, 2017 Faculty of Science, University of Kelaniya, Sri Lanka., 2017) Upeksha, P. G. S.; Peter, S.
With the dynamic nature of the capital market environment, understanding informational efficiency of financial markets has become crucial. Efficient market is one in which prices fully reflect the available information. An implication of an efficient market is that no excess returns can be made from the available information, since it has already been reflected on the current prices. Efficient markets where information can be trusted, channeled to market participants, absorbed and reflected in the stock prices, are important characteristics that global investors look for when deciding to invest, especially in the emerging markets. The objective of this study is to assess the market efficiency of the Colombo Stock Exchange (CSE), Sri Lanka, which is one of the emerging markets in the world. In the post millennium period, a number of studies that have assessed market efficiency at the CSE. However, after the end of the Sri Lankan civil war, the economy underwent dramatic change with the indices showing rapid growth and achieving new heights. Therefore, due to the difference in the sentiment and behavior of the market and investors post conflict, it would be prudent to review whether the results seen previously for weak form and semi-strong form of efficiency still holds. In order to test for weak form efficiency, existence of any correlations of share returns are evaluated. This is done by testing the autocorrelation nature of the selected time series. In order to assess semi-strong efficiency, ‘Event study’ methodology is applied. In event study, the following approaches have been used to derive the abnormal returns. Arbitrage Pricing Theory (APT) Model is a multifactor model. It permits the researchers to choose the best factors. However, it cannot explain variation in asset return in terms of a limited number of easily identifiable factors. Capital Asset Pricing Model (CAPM) accounts for systematic risk. However, it imposes an additional restriction (the intercept equals the risk-free rate) that the variance of the error will be larger than in the market model. Market Model is the vastly used and widely accepted method in short return windows in the event studies. Market Model usually outperforms CAPM. GARCH Model estimates volatility. It is a preferred method because, with asset returns volatility seems to vary during certain periods of time. It further aims to minimize errors in forecasting by accounting for errors in prior forecasting, enhancing the accuracy of ongoing predictions. Taking into consideration the context of the local stock exchange, market participation, and institutional activity, two alternative methods were identified to derive the abnormal returns, i.e. Market Model and GARCH Model. The study expects to use dividend announcements as the primary informational source, and it is expected to identify whether evidence of abnormal returns is shown after the announcement, in order to determine whether CSE is semi-strong efficient.
Personality Trait Model to Assess Creditworthiness
(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Mawela, M.R.T.D.; Peter, S.; Niwunhella, H.
Despite the fact that financial institutions evaluate the creditworthiness of loan applicants a significant number of them fail or fall behind on their promised payments. While in some cases, this could be due to unforeseen external circumstances, inherent internal characteristics of the applicant also contributes towards this delinquency. A non-performing loan (NPL) is an amount of borrowed money upon which the borrower has failed to meet the scheduled payment, generally 90 or more days. The NPLs of financial institutions over the last few years have been rising, despite even stringent requirements enforced by the regulatory authorities. This rising proportion of non-performing loans, if left unchecked could lead to a systematic failure of the banking system and could have a catastrophic impact on the economy. Therefore, there is a need for a model that could filter applicants who could potentially default. Lending takes place when trust is developed between lender and the borrower. Studies carried out previously have put forward various quantitative and qualitative models upon broad microeconomic and demographic factors to assess lender borrower trust. However, the impact of personality characteristics of the borrower has not been sufficiently exploited in this regard. Trust is a complicated behaviour which has been defined from different perspectives in numerous disciplines. Literature depicts that trustworthiness of the trustee is a key antecedent of trust. The study proposes an integrated model to assess the trustworthiness of the borrower based on their personality characteristics. The study modifies the HEXACO personality model by including guilt proneness as the seventh dimension to the model. A systematic set of hypotheses are formulated on the basis of the conceptual model and a framework is developed to analyse the impact of personality traits on trustworthiness. The developed model has been initially validated through expert opinion and is validated through an empirical study using a survey questionnaire intended to capture personality traits using modified HEXACO model and trustworthiness using David Maister’s trust equation administered to a sample of loan eligible people. Furthermore, data obtained from financial institutes engaged in lending business will also be used in the validation process.
Possibility of applying Industry 4.0 as a business process re-engineering tool: Case study from an apparel production plant
(Faculty of Science, University of Kelaniya, Sri Lanka, 2016) Jayatilake, H.S.B.; Withanaarachchi, A.S.; Peter, S.
The industrial revolution began with the mechanization of the textile industry, followed by the age of mass production and subsequently manufacturing going digital. The world is now gradually moving to the fourth industrial revolution which draws together Cyber-Physical Systems, the Internet of Things and the Industrial Internet of Things along with the concept of “smart factory”. The concept of fourth industrial revolution has originated from countries like Germany as “Industry 4.0”, as a government initiative, and from USA as “Industrial Internet Consortium” as an initiative from leading multinational organizations. This case study is based on real time analysis and the experiences in the operational function of an apparel manufacturing plant in Sri Lanka. The production plant is currently facing serious issues such as labor shortage, high labor turnover and weaknesses in inventory management which required an immediate process reengineering in order to become viable and sustainable business. The main objective of this case study is to identify the possibility of re-engineering the business process of the production plant by applying the concepts of Industry 4.0, rather than depending only on conventional process re-engineering concepts. Implementing smart factory concept in the apparel industry is still an emerging approach in Industry 4.0 which has been considered in this article as a novel approach. In order to attain the stated research objectives, a qualitative approach has been adopted in this study. Senior management and selected operational level employees, were interviewed using structured and unstructured questionnaires along with five months of self-observations in the production plant by the authors themselves and a detailed literature survey. The findings indicate that the plant has the necessary features to implement Industry 4.0. However, in terms of readiness to implement Industry 4.0, the plant is still in the initial stage. In conclusion, the production plant’s potential to be converted as a smart factory from its current position by resolving the major issues is assessed. It also discusses the capability of Industry 4.0 to become the new benchmark for smart factories, going beyond the concept of using business process reengineering to align the organization to adapt to the dynamic environmental changes taking place in the world currently.