ICBI 2019

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Relationship between Training & Development and Performance: A Study of the Academics of University of Kelaniya and University of Ruhuna
(International Conference on Business and Information (ICBI – 2019), [Human Resource Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Samarawickrama, P.P.; Dhammika, K.A.S.
The quality of higher education in any country seriously depends on the academics’ performance. Recently issues arose with regard to the academics’ performance in Sri Lanka especially in the two state universities under study namely, University of Kelaniya and University of Ruhuna were observed. Among a large number of determinants related to the performance of academics, training and development was selected due to the issues identified related to it in the context. Accordingly, the researchers’ objective was to assess the relationship between training & development and the performance of the academics. The sample of the study consisted of 327 academics attached to the two state universities under study, and it was selected using stratified random sampling technique. Primary data were collected by distributing a pre-tested questionnaire, and secondary data were collected by the means of related books, journals and conference proceedings. Data analysis was performed using the SPSS software via frequencies, descriptive statistics and correlation analysis. The hypothesis was tested based on the result of the correlation analysis and it was accepted that there is a significant relationship between training & development and performance of the academics. Since the low mean value indicated dissatisfaction of the academics with training & development, it was recommended to plan and implement effective training & development programs and establishing a more effective process for recognizing the performance of the academics to enhance the academics’ performance by effectively addressing their performance related problems.
A Conceptual Framework for Improving Performance Oriented M-Learning for Marketing Professionals in the Sri Lankan Information Technology Industry
(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2019) Velananda, Y.L.
Marketing Professionals in Sri Lankan information technology industry are frequent travelers and have insufficient time to participate in regular classroom training environment and looking for a new technology era where they can learn at anytime, anywhere. Mobile devices are attached to people’s lives. Therefore, the best solution is use of mobile learning. This study proposes a Conceptual Framework for Improving Performance Oriented M-Learning for Marketing Professionals in the Information Technology Industry concerning nine factors: Perceived Ease of Use, Perceived Usefulness, Personal Innovativeness, Performance Expectancy, Effort Expectancy, Social influence; Self-Management of Learning, Perceived Self Efficacy and Perceived Playfulness. The factors were based on Technology Acceptance Model, Unified Theory of Acceptance and Use of Technology and several other factors from the literature. The report discusses the problem statement, objectives and literature review. Then factors were analyzed based on data collected from 132 participants using a survey questionnaire. Data were analyzed using Cronbach's Analysis, Spearman's Correlation Coefficient and Two-way ANOVA. Based on the results, critical success factors (CSF) were identified and the framework was developed. Finally, the developed framework was tested; recommendations and the future research were discussed. A conceptual framework - nonagon model was built based on the analysis. The Perceived Ease of Use, Perceived Usefulness, Personal Innovativeness, Performance Expectancy, Effort Expectancy, Social Influence, Self-Management of Learning, Perceived Self Efficacy and Perceived Playfulness were found as the CSFs. The software development companies and the educational institutions can adapt to this framework. Researchers can focus on M-learning targeting other professions and industries.
The Impact of Work Values on Turnover Intention of Generation Y Employees in Office Automation Industry of Sri Lanka
(, International Conference on Business and Information (ICBI – 2019), [Human Resource Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Jayamanna, D.A.C.M.; Gamage, P.N.
Managing employee turnover is a matter of critical importance to any organization in the contemporary business arena. This situation becomes even stringent as organizations are continuously pressurized by greying of the workforce and the constant need to replace them with suitable employees from the emerging generations. In this context, managing generation Y becomes a matter of absolute importance as they are the generation who dominates the contemporary workplace and who will take up responsibility as the leaders in the near future. However, when it comes to generation Y, dealing with employee turnover becomes another critical matter as they report the highest number of employee turnover rates when compared to other generations in the workplace. Conversely, when analyzing the reasons for such turnover, work values play a significant role, as generational differences occur mainly due to the differences in the values they uphold. Therefore, studying the impact of work values on turnover intention of generation Y employees becomes a matter of significance in any industry. However, when it comes to the local office automation industry this situation becomes ever more critical as the average employee turnover rate among millennials skyrockets to 23%. Accordingly, the thesis findings confirmed that work values indeed had a significant impact on turnover intention of generation Y employees. However, results also suggested that intrinsic values such as cognitive and altruistic work values had the strongest impact on turnover intention. On the other hand, traditional extrinsic values such as instrumental and prestige work values had no significant impact on turnover intention of the millennials. The findings thereby indicated that in order to retain generation Y employees, modern organizations should be more interactive and engaging, thereby creating a conducive and free environment for employees to learn and excel themselves professionally. Therefore, it compels managers to think past providing mere financial benefits and traditional welfare measures in order to retain employees. Hence, this research provides a novel contribution to the existing body of knowledge regarding generation Y employees in the Sri Lankan office automation industry.
The Impact of On-the-Job Training on Employee Performance: A Study of Production Assistants in Noritake Lanka (Pvt) Limited
(International Conference on Business and Information (ICBI – 2019), [Human Resource Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Nawarathna, K.J.N.M.D.V.; Abeykoon, M.W.M.; Harshani, M.D.R. M.D.R.
Although a plenty of researches have conducted to assess the effects of employee training in manufacturing industry in other countries, in Sri Lankan context research findings in this regard are very limited. Therefore, the objective of the current study was to assess the impact of employee on-the-job training on performance of production assistants in one of the leading manufacturing organizations in Sri Lanka. The independent variable and the dependent variable of this study were the level of on-the job training and the employee performance respectively. The reliability of the instruments was tested by using Cornbrash’s Alpha coefficient. The type of this study is hypothesis testing ant it was conducted in the natural setting with the minimum interference of the researcher. The study is a cross-sectional in time and the primary data were collected by using random sampling technique and sample size was 100 production assistants who were working in Noritake Lanka (Pvt) Limited located Matale District. Data was collected through a structured questionnaire via an offline survey. The correlation and regressions analysis were performed to test hypotheses and analyzed data. Finding revealed that on-the-job training has a significant impact on employee performance. Correlation analysis shows that on-the-job training has a strong positive relationship with employee performance. As a significant factor, this would mean that it is very significant to pay a high attention regarding the on-the-job training methods, because it directly affects to the performance of the employees in addition to that proper and wellstructured on-the-job training are required to meet with the desired outcomes of the organization.
The Impact of Firm Age on Capital Structure Decisions: A Quantile Regression Approach
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Chathurya, P.A.D.; Perera, D.K.T.S.; Perera, G.K.S.S.; Fernando, W.C.
The main objective of this study is to analyze the effect of firm age on the capital structure decisions of non-financial companies listed under Colombo Stock Exchange over 7-year period from 2012 to 2018. As most Sri Lankan firms considered firm age as a control variable and mostly used firm age since IPO, this study uses firm age as an independents variable where both firm age since IPO date and initial creation being used to determine the relationship with capital structure. Due to non-normal distribution of the data set the disadvantage of using OLS regression was understood and data analysis method changed to quantile regression. Quantile regression analysis is being used to determine that firm age in terms of both initial public offering date and initial creation date has an influence on capital structure with a comparison of ordinary least square method. The results specify that initial public offering date has a significant positive impact and initial creation date has a positive insignificant impact throughout the five levels of leverage in capital structure.
The Impact of Ease of Doing Business and Entrepreneurial Ecosystem on Per Capita Gross Domestic Product
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Udayanga, K.K.T.
Ease of doing business and entrepreneurship ecosystem have evolved to become crucial engines of economic growth. Accordingly, this study attempts to examine the impact of entrepreneurship ecosystem and ease of doing business on per capita gross domestic product. This study uses time series secondary data for the year 2018 covering 124 countries. A multiple regression model was developed that included the variables Per Capita Gross Domestic Product, Global Entrepreneurship Index and Ease of Doing Business Index. The findings of the research reveal that entrepreneurship ecosystem has a significant impact on per capita gross domestic product.
The Association of Transformational Leadership with Employee Empowerment: A Study among IT Professionals
(International Conference on Business and Information (ICBI – 2019), [Human Resource Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Mathew, G.C.; Ramanathan, H.N.; Athira, L.
Organizations in the 21st century are in the process of identifying different ways and means to develop and maintain leadership in the domain they work. By influencing the attitude and behavior of employees, as well as motivating them to contribute more, leaders can play a pivotal role in the achievement of organizational goals. Empowerment of employees gives them an extent of autonomy as well as decision making capacity to the employees at lower level. Inadequate empowerment of employees may lead various consequences like turnover of employees, lack of productivity among employees, decreased contribution; absence of updating knowledge as well as techniques, lack of development and growth, excessive wastage and creation of non-qualitative products and services. Organizational decision makers are more or less myopic about this. Moreover, not much attention has been paid to identify whether and how leadership influences employee empowerment. This study will help the organizational executives to know the role of transformational leadership style on employee empowerment. Descriptive research was carried out adopting a 7-point scale structured questionnaire to collect primary data. Regression analysis was used, and it is found that transformational leadership is positively associated with employee’s feeling of control; in other words, managerial empowerment.
Determinants of Foreign Direct Investment and its impact on Economic Growth: Evidence from South Asian Association for Regional Cooperation (SAARC) Countries
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Gunawardhana, C.S.; Damayanthi, N.M.M.
It is argued that Foreign Direct Investment (FDI) inflows benefits the recipient countries by providing capital, technology and long term foreign exchange and bridges savings and investment gap of the recipient country. Further, FDI provides an important role in achieving economic growth in the developing countries. This paper identifies the influential factors that determine FDI inflow in the South Asian Association for Regional Cooperation (SAARC) Countries and empirically investigates the relationship between economic growth and FDI. Further, this study uses time series data from 1980 to 2018 and considered the size of the economy, economic growth, potential of the host market, economic stability, and degree of openness, income level and institutional developments in the host country to identify influential factors to determinants of FDI. Analysis reveal that countries with larger Gross Domestic Product (GDP) growth rate can successfully attract FDI and FDI on the other hand, significantly affect economic growth of a country. In addition, it was found that current account balance, financial deepening and trade openness significantly play a crucial role in determining the FDI flows into recipient countries.
The Influence of Corporate Governance on Earnings Management in Listed Manufacturing Companies in Sri Lanka
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Rajapaksha, R.A.S.; Tilakasiri, K.K.
The main objective of this paper is to investigate the influence of corporate governance on earnings management. Unlike most prior studies in the area, focused mainly on US firms, this study looks at the listed manufacturing companies in Sri Lanka. The study used secondary data of 30 manufacturing companies (2013-2017). The findings of the study reveal that board members with Finance expertise has a negative significant relationship with earnings management. This confirms that board members with finance expertise lead to reduce earnings management. Further, CEO duality has a negative significant relationship with earnings management. This means that firms which have two separate positions for chief Executive Officer and chairman are more effective in reducing earnings management. Moreover, it is revealed that board meeting has a positive significant relationship with earning management.
The Impact of Remittances and Gender on Expenditure Pattern on Rural Households in Sri Lanka
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Dharmadasa, R.A.P.I.S.; Rathnayake, K.K.H.M.; Samaraweera, W.G.R.L.
This study examines the impact of migrant remittances on expenditure pattern of rural households in Sri Lanka. Using a nationally representative data set, fractional logit models were estimated within the Engel curve framework for female headed and male headed households in order to examine the relationship between gender, remittances and expenditures of the rural households. The results suggest that with the receipt of internal remittances, male household heads allocate less on education and more on ad hoc purchases, entertainment and transport expenditure, while female household heads allocate more on food expenditure. The results further reveal that international remittances do not provide significant impact on household expenditure pattern in the rural sector households. Moreover, remitters’ contribution for the ad hoc purchases, entertainment and transport expenditure increases while their presence as a migrant to the household head. Based on the results, the research concludes that there is an association between receipt of remittances and expenditure pattern of rural Sri Lankan households and also the gender of the household head and expenditure pattern of rural Sri Lankan households.
Does Weather Contributes to Stock Price Variation? A Cointegration Analysis
(, International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Gunasekara, A.L.; Jayasinghe, J.A.D.K.
The objectives of this study are to investigate whether there is a long term relationship between stock returns and weather factors and to examine whether the weather factors have an outperforming effect over macroeconomic variables when explaining the stock price variation. This study is motivated by the emergence of behavioral branch of asset pricing which pays attention towards the irrationality of investors who are influenced by the mood and the sentiment. This study investigates this phenomenon taking evidence from a growing market, Colombo Stock Exchange. The study use Johansen Cointegration Test with VAR - Vector Error Correction Estimates and Variance Decomposition. The results confirm that weather factors are related with the stock prices in the long run and reveal that temperature has an outperforming contribution to the stock price variation whiles supporting the Temperature Anomaly which is widely researched in this background.
Association between Working Capital Management and Financial Performance: Moderating Effect of Management Policies
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Madushan, A.M.T.; Dissanayake, T.D.S.H.
Many studies have recognized different types of associations between working capital management and firms’ financial performance while a very few studies had identified the moderating effect on the association between working capital management and firms’ financial performance. Thus, this study aims to investigate the association between working capital management and firms’ financial performance and the moderating effect management policies. Data were gathered from manufacturing companies listed in the Colombo Stock Exchange for the period of five years from 2014 to 2018. Sample consist of 28 manufacturing companies. This study uses correlation, multivariate regression and panel regression to obtain the results. The results show that the working capital management in terms of cash conversion cycle is negatively associated with the firms’ financial performance in terms of return on assets and net profit margin while the effectiveness of management policies in terms of average age of inventory, average collection period and average payment period strengthens the association between working capital management and firms’ financial performance. This study is useful for the future studies, analysts, financial managers in achieving their goals and objectives.
Retention of Generation-Z in ICT Sector in Sri Lanka: A Conceptual Paper
(International Conference on Business and Information (ICBI – 2019), [Human Resource Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Jayathilake, H.D.
It is predicted that millennials and generation Z will take the stake of 75% of the workplace population by 2025. Concurrently, Sri Lanka put its prospect on ICT industry to be one of the major employers in the country. Presently, the industry has created over 95,000 bread-winners; however, the industry has hit with very high employee turnover ratio as per the Department of Statistics Sri Lanka. So, it is conspicuous that industry is in a dilemma to retain its employees. Moreover, there are very little researches have been done on the gen-z work behaviors in ICT sector of Sri Lanka where would be one of the biggest employers for gen-z digital natives in Sri Lanka. Therefore, the objective of this study was to construct a conceptual framework which addresses the research problem that to find out the expectations of the gen-z in Sri Lankan context to improve the motivation of Gen-Zs’ in-order to reduce the employee turnover in ICT industry. A narrative review of literature was done based on the journal articles published from 1991-to-2019 in emerald. Five holistically independent constructs were found which are significantly and positively correlated to improve employee retention in ICT sector. Therefore, it is emphasized that there is a research gap to fill through the future research based on the current conceptual framework with enhancing the reliability by incorporating with the real-world simulation through a pragmatic worldview research approach.
Influence of Brand Citizenship Behavior on Employee Brand Commitment in the Non-Banking Financial Services Sector in Sri Lanka
(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Jayampathi, G.A.S.
Despite the emerging popularity of the concept of the brand citizenship behavior (BCB) deployed to align brand commitment of employees, little has been studied about how BCB influences the brand commitment of employees in the non-banking financial services sector of Sri Lanka (NBFS.) The prime objective of the study is to find out the influence of brand citizenship behavior on employee brand commitment where employee’s brand love mediates the relationship between brand citizenship behavior and employee brand commitment. There are four independent variable identified as helping behavior, brand sportsmanship, brand endorsement, and self – development, whereas the dependent variable is employee brand commitment. The research employed stratified random sampling method where 385 employees who are dealing with customers for marketing purposes from NBFS sector through structured questionnaire. Furthermore, the structural equation modeling was the principal data analysis technique employed. Alongside, author used a deductive approach, associated academic publications and industry-related publications to review empirical arguments. Further, the study attempts to review theoretical and empirical contribution to justify the relationship between brand citizenship behavior and employee brand commitment. Finally, major findings reveals that there is an empirical research gap to further investigate the brand citizenship behavior and employee brand commitment. This paper directs the future research directions to further examine the relationship between brand citizenship behavior and employee brand commitment in the field of non - banking financial services sector in Sri Lanka.
The Impact of Psychological and Behavioral Factors on Investment Decisions: Evidence from Individual Investors in Colombo Stock Exchange
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Bandara, O.A.K.D.; Weligamage, S.S.
Behavioral Finance is a newer field of study that attempts to explain irrational behavior of investors which traditional financial theory fails to explain. This study aims to identify the psychological and behavioral factors that affect the investment decisions; to assess the impact of the identified factors on the investment decisions and finally to evaluate the extent to which these factors can explain the investment decisions of individual investors in the Colombo Stock Exchange (CSE). Snowball sampling technique was used to identify respondents for the study and the sample consisted of 74 respondents. A questionnaire was used to collect data from the identified respondents. Factor analysis, multiple regression analysis and case study descriptions were used to analyze and interpret the data. Findings of this study proved that prospect factors have significant negative and market factors have a significant positive influence on investment decisions of CSE investors. Hence it can be concluded individual investor decisions are affected by irrational biases and investors should attempt to avoid these biases to generate higher returns in their portfolios and investment advisors should consider the influence of these factors on their client’s investment decisions for the purpose of enhancing their wealth.
The Impact of Corporate Social Responsibility on Employee Commitment and Compassion at Work: The Mediating Effect of Meaningful Work and Positive Affect
(International Conference on Business and Information (ICBI – 2019), [Human Resource Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Weerasekara, N.; Ajward, R.
This paper aims to theoretically explain the relationships between Corporate Social Responsibility (CSR), employee commitment and compassion at work using both Social Identity Theory (SIT) and Social Exchange Theory (SET) by developing a conceptual model into which incorporates mediation effects of meaningful work and positive affect. Further, this paper highlights the importance of examining employees’ perception of CSR activities in the licensed commercial banking sector. A structured questionnaire that was developed based on a comprehensive review of literature and refined using both expert opinions and a pilot survey was used for data collection. Sample comprised of 410 respondents with a response rate of 91%, and a convenience sampling strategy was used to secure responses from 13 local licensed commercial banks in Sri Lanka. Structural equation modelling using Smart Partial Least Square (PLS) was utilized to test the proposed relationships. As per the findings, there are significant (p<0.05) positive relationships between CSR and employee commitment and compassion at work. Also, meaningful work partially mediates the relationships between CSR and employee commitment and CSR and compassion at work. However, positive affect partially mediates the relationship between CSR and employee commitment only. It does not mediate the relationship between CSR and compassion at work. Theoretically, this study fills a gap by utilizing both SIT and SET in explaining relationships between CSR, employee commitment and compassion at work. Findings enhance existing literature on CSR, commitment and compassion at work. Moreover, this adds new insights on mediating capability of psychologically related variables.
Environmental Management Practices of an Apparel Manufacturer in Sri Lanka: A Critique
(International Conference on Business and Information (ICBI – 2019), [Entrepreneurship & Small Business Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Thevanes, N.
Environmental degradation is considered as one of the critical issues in the current world. In order to respond to this issue, organizations and businesses around the world seriously focus on environmental protection and management. In this sense, there is a need to explore and identify the sustainable environmental management practices which are actually practice by the organizations. Hence, this paper aims to report existing sustainable environmental management practices and to explore the implementation of environmental management practices in an apparel manufacturer in Sri Lanka. Secondary data were collected from the published sustainability reports of the selected organization for two consecutive years. Further, the researchers employed the observation method to confirm whether this company is really carrying out the environmental practices which were reported in their sustainability reports. The researchers identified several sustainable environmental management practices under the three main categories energy conservation, water conservation and earth conservation and confirms that the selected organization were really carrying out environmental management practices. This study provides insight to understanding environmental management practices of an organization.
Exploring the Financial Literacy Programmes Delivered by the Sri Lankan Micro Finance Institutions: A Case Study Approach
(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Premarathne, W.G.I.D.; Abeysekera, R.
Global Financial Literacy Survey done by the Standard & Poor’s Ratings Services reveal that in 2014 only 35% of adults are financially literate in Sri Lanka. There is a dearth of researches covering this critical area using a qualitative approach. Thus, the purpose of this paper is to focus on the critical, yet an under-researched dimension of MF, the intercession of MFIs in delivering FL to the MF clientele focusing on the profiles such as delivering channels, importance, constraints, and strategies to address. Multiple case study method was used as the research method. The data were gathered from a purposive sample using in-depth interviews. The findings show that several channels of delivering FL; social mobilization programmes, seminars, training programmes, community committees, and credit societies, and the importance of delivering FL are; enhancement of human capital, the sustainability of industry and firm, upgrade new venture survival, client protection, and social and economic empowerment and development. Further, the barriers to delivering FL; budget, industry competition, inactive participation, clients’ attitudes, inactive regulatory bodies’ contribution, and external barriers were investigated with the strategies adopted in addressing barriers; community awareness, motivational strategies, regulatory framework and cost addressing strategies. Findings of this study have implications for policymakers in paying attention to make a financially literate clientele in the MF discipline.
The Impact of User Demography on Contextual Issues of E-learning: With Reference to Banking Sector Employees
(International Conference on Business and Information (ICBI – 2019), [Innovation & Technology], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Rathnasekara, K.I.; Suraweera, S.A.D.H.N.; Yatigammana, M.R.K.N.
The introduction of information technology in learning processes, commonly referred to as elearning, opens new dimensions in developing competent employees over traditional forms of training and development functions. E-Learning is highly cost effective to the organization, convenient to the learners and saves learning time by quicker delivery cycles. Therefore, many organizations, including banks have introduced e-learning to their employees with the intention of bridging the competency gaps in a more effective and efficient way. However, there is a claim and statistically proven evidence that the expected effectiveness cannot be achieved due to low e-learning engagement of employees. Therefore, the purpose of this study is to critically examine the effect of demographic characteristics on the contextual issues faced by the employees in order to reveal any indications, if any, towards their effective engagement of elearning. A questionnaire was used to collect data from 523 employees covering all employee segments in the selected bank employing the random sampling method. The findings of the study revealed that time management related contextual issues have majority of significant difference with demographic characteristics of employees and organizational related contextual issues have no any statistical significant difference.
The Persuasive Power in Virtual Reality Advertising on YouTube
(, International Conference on Business and Information (ICBI – 2019), [Marketing Management], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Ranaweera, H.R.A.T.
Virtual Reality (VR) is a rapidly booming area of technological advancement. Despite, the evaluation in VR technology which gives rise to both opportunities as well as challenges, there is a severe lack of research exploring VR from a marketing perspective. Given this background, this preliminary study seeks to understand the persuasive power of VR advertising. The study adopts a qualitative content analysis of 1690 User Generated Content (UGC) corresponding to 10 digital advertisements created using VR technology. They were selected based on their popularity which was determined by the number of viewers. The content analysis revealed three major persuasive mechanisms applied in VR advertising: 1) Persuasion through immersive experience; 2) Persuasion as a function of people reflections about the content of a message and; 3) Persuasion through emotional engagement. This extant research adds to the emerging scholarship on the application of VR in marketing by identifying how persuasion mechanisms are applied in VR adverts.