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1 – 10 of over 1000Shrimal Perera, Michael Skully and My Nguyen
The purpose of this paper is to investigate whether the level of market concentration in Sri Lanka's banking sector is positively associated with bank‐specific interest spreads…
Abstract
Purpose
The purpose of this paper is to investigate whether the level of market concentration in Sri Lanka's banking sector is positively associated with bank‐specific interest spreads after controlling for other bank‐specific and exogenous influences.
Design/methodology/approach
A pooled, time‐series and cross‐section model is utilized which distinguishes between banks’ dominance in loan and deposit market segments. Results are presented for the total sample as well as for a truncated sample of private‐owned banks.
Findings
Changes in industry concentration do not affect bank‐level interest margins of Sri Lankan banks. Nevertheless, the dominant Sri Lankan banks seem to extract them and banks’ cost structures are priced in their interest spreads. The less‐capitalized, high risk banks operate with narrow interest margins, possibly due to the relatively higher deposit rates they pay to attract deposits. Although regulatory changes seem to have no effect, the growing capital market exerts negative pricing pressure on Sri Lankan banks.
Practical implications
The regulators should closely watch banks with larger loan and deposit market shares because they seem to exploit their dominant presence and geographical reach to extract higher spreads. Similarly, state‐owned banks should also draw regulatory attention for they extract higher interest margins, possibly, in lieu of their high operational inefficiency levels.
Originality/value
The authors employ an extended time‐series and cross‐section model which controls for sample heterogeneity using proxies for cost structures, risk profiles, regulatory restrictions and other environmental influences. Moreover, as far as it could be ascertained, this is the first such study on Sri Lanka's banking sector.
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Dushar Kamini Dayarathna, Peter John Dowling and Timothy Bartram
This paper aims to examine the implications of high performance work system (HPWS) strength from a managerial perspective and the impact of economic, cultural, political, legal…
Abstract
Purpose
This paper aims to examine the implications of high performance work system (HPWS) strength from a managerial perspective and the impact of economic, cultural, political, legal and technological factors on the operationalization of HPWSs in the banking industry in Sri Lanka.
Design/methodology/approach
The data for this study were collected from three licensed commercial banks in Sri Lanka. This research used a case study approach for data collection with archival analysis of records and semi-structured interviews with the CEO, head of HR, two board members and three focus groups (top, middle and lower level managers across various functional areas) in each bank which altogether covers 66 key informants.
Findings
The findings supported the research proposition that to gain positive outcomes on organizational effectiveness, there should be a strong HPWS, resulting in a positive attitudinal climate among employees. Further, the findings provide evidence of the global applicability of HPWSs, although more research is needed to clearly specify the contextual boundaries of HPWS effectiveness.
Originality/value
Contemporary research provides ample evidence to endorse the contribution of high performance work systems toward organizational effectiveness. However, there is a dearth of literature on how high performance work systems are operationalized across the management hierarchy and support the achievement of organizational effectiveness. Few studies have been conducted on high performance work system strength and organizational effectiveness in emerging economies.
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Shahzad Uddin, Kelum Jayasinghe and Shaila Ahmed
The purpose of this paper is to provide an account of banking scandals in relation to corporate governance (CG) failures in an emerging economy, arguing that Anglo-American ideas…
Abstract
Purpose
The purpose of this paper is to provide an account of banking scandals in relation to corporate governance (CG) failures in an emerging economy, arguing that Anglo-American ideas of CG are misplaced in traditional settings.
Design/methodology/approach
Semi-structured interviews were conducted with key stakeholders. Observations of annual general meetings (AGMs) and the personal working experience of one of the researchers, along with documentation, provided triangulating data on CG practices.
Findings
The authors have found that both of the banks studied had adopted CG practices contrary to the expectations of the Sri Lankan CG codes. Key features of CG practices that emerged from their investigations of these two scandals are ineffectual central bank regulations, familial boards of directors, ceremonial board meetings, biased auditing practices and manipulative AGMs, relying on traditional structures of accountability centred around families, kin and social networks.
Research limitations/implications
The authors argue, drawing on Weber (1958, 1961, 1968, 1978), that the traditionalist culture mediates the process of rationality in bank governance codes and regulatory frameworks Therefore, practices fall far short of expectations.
Originality/value
The paper builds on the extended critique of shareholder-centric CG models and their transferability to alien contexts. It contributes to the CG studies calling for more appreciation of the need to move beyond the conventional view of CG problems as simply down to conflicts of interests. The authors complement and advance the decoupling debate in CG studies drawing on the Weberian notion of traditionalism.
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Candauda Arachchige Saliya and Kelum Jayasinghe
The purpose of this paper is to focus on the enterprise lending and control process in closely held banks, with special reference to Sri Lanka. It explores how those processes are…
Abstract
Purpose
The purpose of this paper is to focus on the enterprise lending and control process in closely held banks, with special reference to Sri Lanka. It explores how those processes are being influenced by the distinctive cultural and political processes at organizational and societal levels.
Design/methodology/approach
The study relies on three cases built upon the life experiences of several employees in a closely held bank, articulating multiple sources of evidence: interviews, observations, documents, archival records, open-ended questionnaires, internet conversations and exchange of e-mails. The data analysis adopts cultural political economy theory.
Findings
The study’s findings reveal how cultural and political factors, such as egoistic motives and politics, gifts/rewards and a manipulative culture, along with exploitative and discriminatory politics at organizational and societal levels, articulate into the enterprise lending and control process (“five Cs”) in closely held banks. “Rational” enterprise lending and control processes in this context merely become a “ceremonial” practice, serving the petty interest of powerful capitalist business owners. Whereas previous studies emphasize that the criteria (five Cs) discriminate against ordinary people, as distinct from the élite, the findings of this study implicate that over and above that the criteria are set aside when it suits in order to favor or accommodate the élite.
Originality/value
The paper provides a “qualitative inquiry” on how cultural politics at organizational and societal-level effect on enterprise lending and control process within closely held banks in less developed countries (LDCs). The previous studies on bank lending and control used either large-scale surveys or alternatively devoted their interest toward the role and impact of accounting in World Bank and IMF-led lending schemes and policies, particularly in LDCs.
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J.A.S.K. Jayakody and W.M.A. Sanjeewani
The purpose of this paper is to identify the impact of transformational leadership behavior of salespersons on the level of customers' trust and customers' relationship commitment…
Abstract
Purpose
The purpose of this paper is to identify the impact of transformational leadership behavior of salespersons on the level of customers' trust and customers' relationship commitment with the salespersons in the Sri Lankan corporate banking sector.
Design/methodology/approach
Based on the literature, it was hypothesized that idealized influence behavior and individualized considerate behavior of salespersons positively affect customers' trust and customers' relationship commitment. A survey was undertaken among 47 sales persons in the Sri Lankan corporate banking sector, and the regression analysis was performed to test hypotheses.
Findings
It was found that idealized influence behavior of salespersons positively influences customer trust, which, together with individualized consideration of salespersons, in turn influences customer commitment. It was also found that the joint effect of both customers' trust and individualized considerate behavior of the salesperson is greater than each alone on customers' relationship commitment.
Research limitations/implications
The small sample and non‐probabilistic sampling procedure demand further corroboration of the findings. As the relationship marketing literature stresses the coexistence of both relationship and transactional marketing, future researchers may use the full‐range of leadership model.
Practical implications/implications
This study shows how the two facets of transformational leadership behavior of salespersons implicate their customers' relationship marketing behavior, and thus points out how leadership development training can be adapted to improve relationship marketing skills of sales persons.
Originality/value
The present paper illustrates how transformational leadership provides a more appropriate knowledge domain for understanding relationship marketing dynamics at salesperson‐individual customer level.
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Padmi Nagirikandalage and Ben Binsardi
The purpose of this paper is to critically explore the implementation of cost accounting systems (CAS) using content analysis. In particular, it aims to examine the impact of Sri…
Abstract
Purpose
The purpose of this paper is to critically explore the implementation of cost accounting systems (CAS) using content analysis. In particular, it aims to examine the impact of Sri Lankan cultural and local characteristics on the adoption of CAS. In particular, it examines the factors that facilitate or hinder the adoption of CAS in Sri Lanka.
Design/methodology/approach
Primary data for the research were obtained by interviewing selected respondents from Sri Lanka’s manufacturing and service sectors. They were shortlisted using maximum variation sampling to obtain a representative cross-section of the national population. A total of 16 respondents were interviewed, which resulted in 57 interview paragraphs to be coded. Several theories were used to analyse them, namely, the theory of institutional isomorphism (homogeneity) and the theory of heterogeneity, as well as Clifford Geertz’s cultural theories.
Findings
A cross-comparison between the findings and relevant literature indicates the existence of complete institutional isomorphism and partial institutional heterogeneity in Sri Lanka. Heterogeneity exists in organisations such as foreign multinationals, which have adopted unique and sophisticated CAS. In addition, inadequate access to information and the orientation of the local culture has affected the implementation of CAS in Sri Lanka, with a lack of awareness of the importance of CAS, a sluggish approach to costing and cultural values forming prominent barriers to its implementation. These findings are plausible in light of the relationship between a sluggish approach towards costing (a low cost awareness), and local attitudes towards the implementation of more efficient accounting practices such as CAS.
Practical implications
This research is invaluable as a tool for Sri Lankan policymakers and practitioners, enabling the public and private sectors to provide education and training to enhance staff understanding and promote a positive attitude towards costing. With more efficient institutional CAS, the country’s economy will be more competitive internationally. As well as policymakers and practitioners, this research could be used by academicians for advancing theoretical development around the cultural triggers and barriers for adopting more innovative and fresher CAS in Sri Lanka.
Originality/value
The originality of this research can be justified on two counts. Firstly, although a wealth of research exists that examines the influence of culture on behaviour, this research specifically evaluates the impact of cultural factors on attitudes towards costing. These factors could be facilitators or obstructions for implementing CAS. Secondly, this research aims to combine both earlier and recent theories of institutionalism with Clifford Geertz’s cultural theory, to investigate how people and institutions in Sri Lanka adopt CAS. Earlier studies have focused merely on earlier theories of institutional homogeneity.
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The motivation of this study is to identify whether the overall rating of a banking app actually reflects the customer opinion and to find the causes for reduced ratings. Thus…
Abstract
Purpose
The motivation of this study is to identify whether the overall rating of a banking app actually reflects the customer opinion and to find the causes for reduced ratings. Thus, these causes lead to the dissatisfaction of customers. Additionally, these insights reflect the overall rating of the app and it is a source of information to the executive management to contemplate on their services and take timely and effective decisions to improve their mobile app.
Design/methodology/approach
This research was conducted on ten reputed Sri Lankan mobile banking apps to analyze the textual opinions of the customers. Data were collected from the Google Play Store considering the higher Android consumers in Sri Lanka. Each review was automatically classified into a relevant sentiment (positive, negative or neutral). These classified reviews were examined along with its rating to identify any discrepancies. The trends of the positive and negative reviews of each app were observed separately along with time. Topic modeling techniques were used to identify the causes of such behavior.
Findings
Although banks expect to perpetuate good customer reviews all the time, there were aberrant negative trends observed during certain time ranges. The results revealed that unstable versions after recent updates, bad customer service, erroneous functional and nonfunctional features are the root causes toward the dissatisfaction of the customers.
Originality/value
No previous study has been done on the textual reviews of Sri Lankan mobile banking apps. Most studies had considered analyzing the reviews of the app on the entire period of its usage, whereas this research finds the trends where negative reviews surpass the positive reviews and analyze the causes of such behavior.
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The rapid growth of digitalization is being used for the betterment of the banking and financial services sector and many other industries. Digital banking (DB) is transforming…
Abstract
The rapid growth of digitalization is being used for the betterment of the banking and financial services sector and many other industries. Digital banking (DB) is transforming traditional banking activities into a digital environment. The benefits and conveniences that DB bring to consumers and financial institutions (FIs) have led FIs to adopt various DB innovations. However, to determine whether the demand for DB is at a healthy level, it is necessary to evaluate how DB innovations are accepted among consumers. This chapter is a “viewpoint” of the author that reviews the background of DB in Sri Lanka (SL) and evaluates the success of its diffusion.
The status of the DB diffusion in SL is discussed under DB ecosystem, and DB customer adoption. The DB ecosystem is discussed through the topics of the country’s digital infrastructure (DI), technological know-how within the banks, technology adoption of the market vendors, and consumer’s digital literacy. Then, the consumer use of the DB services is evaluated using the transactions that happened through DB systems against paper-based payments. Statistics presented by Central Bank of Sri Lanka (CBSL) are used as secondary data for the study.
According to the findings of this report, consumer DB adaption is still in its infancy compared to the development of the country’s DB ecosystem. Considering the causes that drives consumer innovation decisions, this chapter highlights the need for industry practitioners to revisit their DB marketing strategies based on consumers’ culture and innovativeness. To that end, further studies are necessary on how individuals’ culture influences DB adoption.
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The purpose of this paper is to trace the history and legacy of Islamic finance (IF) in Sri Lanka in the context of the emergence of life finance. It tracks the social life of…
Abstract
Purpose
The purpose of this paper is to trace the history and legacy of Islamic finance (IF) in Sri Lanka in the context of the emergence of life finance. It tracks the social life of finance through a genealogy of trust and capital.
Design/methodology/approach
The methodology used is qualitative. It is an extended case study using conversations, company documents and newspaper archival research.
Findings
Trust, transparency and ethics must be understood locally to have salience. The implicit effect of locally understood ideas of trust that have been built into the movement of capital (via ethical branding and transparency in IF, education and social awareness) can reconfigure relationships between communities in a country that has been ravaged by war.
Research limitations/implications
There have been few studies on IF in Sri Lanka; this study will enrich those offerings. However, they must be understood in relation to the emergence of life finance.
Practical implications
This study presents a new viewpoint on the relationship between finance and social well-being and new categories through which to understand finance.
Social implications
The implicit effect of locally understood ideas of trust which have been built into movements of capital (via ethical branding and transparency in IF, education, socially aware) can reconfigure relationships between communities in a country that has been ravaged by war.
Originality/value
There have been few studies on Islamic Finance in Sri Lanka; this study will enrich those offerings. But they must be understood in relation to the emergence of life-finance in South Asia.
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Despite the increasing number of small and medium enterprises pursuing international opportunities and penetrating global markets, international entrepreneurship literature has…
Abstract
Despite the increasing number of small and medium enterprises pursuing international opportunities and penetrating global markets, international entrepreneurship literature has paid limited attention to emerging markets and entrepreneur-specific factors that influence internationalisation. Traditional internationalisation theories and international entrepreneurship theories consider organisation as the unit of analysis and lack sensitivity to the context, which influences ventures’ foreign market decisions. Moreover, only a handful of studies related to internationalisation in emerging markets are available. To address this gap, this chapter explores barriers and drivers for SMEs’ internationalisation in Sri Lanka, an emerging market. Semi-structured interviews with forty Sri Lankan youth entrepreneurs suggest structural barriers consisting of access to capital, legal restrictions and lack of legal, institutional and government support were prominent. These barriers suggest a need for policy changes in the entrepreneurial environment, finance, entrepreneurial culture and skill development, technology, research and development and regional balance. The findings also indicate that information communication technology is a driver for internationalisation.
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