Journal of Business and Management <p>The Journal of Business and Management is published by the School of Business, Faculty of Management Studies, Pokhara University, Pokhara, Nepal.</p> en-US <p>Copyright © the School of Business. All rights reserved. No part of this volume may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by and information storage and retrieval system, without permission in writing from the publisher.</p> (Assoc. Prof. Bharat Ram Dhungana) (Sioux Cumming) Wed, 07 Feb 2024 09:29:50 +0000 OJS 60 The Editorial Note <p>Message from Editorial Board</p> Bharat Ram Dhungana Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Impact of Social Media on Purchase Decisions: A Case Study of Pokhara Valley <p><strong>Background:</strong> In the modern digital landscape, the consumer purchase decision process has been transformed by the influence of social media. This evolution has also led to a paradigm shift in marketing strategies.</p> <p><strong>Objectives:</strong> This research aimed to assess the impact of social media influencers on purchase decisions with special reference to Pokhara Valley.</p> <p><strong>Methods:</strong> This study was conducted in the Pokhara Valley of Nepal, involving 250 respondents. The research utilized a quantitative approach with a descriptive research design. Primary data was collected through a self-administered survey questionnaire. Data analysis involved descriptive statistics and Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine the impact of independent variables on the dependent variable. The study took place in 2023, spanning three months from January to April.</p> <p><strong>Results:</strong> The results revealed that online communities have a positive and significant impact on purchase decisions (β = 0.202, p = 0.006). Similarly, perceived usefulness (β = 0.172, p = 0.019), ratings and reviews (β = 0.234, p = 0.002), and trust (β = 0.140, p = 0.035) significantly influence purchase decisions in a positive manner. However, recommendations and referrals do not have a significant impact on purchase decisions.</p> <p><strong>Conclusion:</strong> This study concluded that individuals who actively participate in online communities, perceive social media as useful for product information and purchasing, rely on ratings and reviews, and place trust in the platform are more likely to make purchase decisions based on their online experiences. Understanding these factors and their implications can guide businesses and marketers in tailoring their strategies to effectively engage with consumers and drive purchasing behaviour.</p> Bal Ram Bhattarai, Sudan Thapa, Deepesh Ranabhat, Pradeep Sapkota, Mala Ranabhat Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Impact of Emotional Intelligence on Employee Engagement at the Workplace: Evidence from Service Sector within Pokhara Metropolitan City <p><strong>Background:</strong> In the dynamic landscape of the service sector, the management of a diverse workforce with varying emotions and motivations presents a compelling challenge. Within this context, unraveling the intricacies of emotional intelligence assumes paramount significance. Understanding the factors that influence emotional intelligence and its subsequent impact on employee engagement is crucial for cultivating a positive work environment and augmenting overall organizational effectiveness.</p> <p><strong>Objectives:</strong> The objective of this study is to analyze the impact of various dimensions of emotional intelligence on employee engagement at the workplace in various service sectors in Pokhara metropolitan city.</p> <p><strong>Methods:</strong> The study utilized a causal comparative research design with a sample of 350 employees from the service sector in Pokhara. Purposive sampling was employed, and structured questionnaires were used for data collection. The analysis included Confirmatory Factor Analysis (CFA) and Path Analysis to explore causal relationships between emotional intelligence dimensions and employee engagement levels.</p> <p><strong>Results:</strong>The result of Confirmatory Factor Analysis showed a good fit with model fit indices as χ2/df =1.231, GFI=0.944, AGFI=0.931, RMSEA= 0.024, CFI=0.901, TLI=0.887. The result of Path Analysis revealed that there is a significant positive impact of all emotional intelligence dimensions on employee engagement, explaining 61% of the variance in the Nepalese service sector.</p> <p><strong>Conclusion:</strong> The research highlights the positive relationship between emotional intelligence and employee engagement in the service sector in Pokhara, emphasizing the importance of fostering emotional intelligence competencies for organizational success. Organizations should invest in targeted interventions and training programs to enhance emotional intelligence among employees, aiming to improve their well-being, job satisfaction, and overall performance, thereby cultivating a highly engaged workforce.</p> Bibek Karmacharya Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Trade Openness and Economic Growth of Nepal: An Econometric Analysis <p><strong>Background:</strong> The relationship between trade openness and economic growth has been a subject of empirical investigation- a multifaceted and evolving issue in the context of Nepal which is a highly import-based economy. In this background, the results of the exploration of the relationship between trade openness and economic growth would be relevant to suggest that policymakers in adopting the policies and boosting the available capital and labour to attain the benefits of trade openness.</p> <p><strong>Objectives:</strong> This study examines the impact of trade openness on the economic growth of Nepal considering GDP, human capital, real gross capital formation, and trade openness employing both descriptive and econometric methods.</p> <p><strong>Methods:</strong> This study incorporated the annual time series data published by the government of Nepal from the year 1990 to 2021 and analyzed employing the vector error correction model (VECM) along with the descriptive analysis.</p> <p><strong>Results</strong>: Descriptive statistics reveal that the model follows a normal distribution, as indicated by the results of JarqueBera, where the p-values of the variables exceed 0.05. The variables demonstrate stationary at the first order and are cointegrated as such vector error correction model (VECM) is employed. The presence of a negative and significant error correction term (ECT) indicates that the variables are adjusting towards long run equilibrium. Furthermore, the stability of the model is confirmed by the cumulative sum (CUSUM) test as the residual plots remain within acceptable boundaries of a 5 percent significance level. Finally, the results indicate that trade openness does not have a significant and pivotal influence on economic growth.</p> <p><strong>Conclusion:</strong> Trade openness does not have a significant influence on economic growth. Capital has a significant and positive relationship with stimulating economic growth, however, human capital has a significant but negative relationship with economic growth in the long run in Nepal.</p> Deepak Neupane Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Workforce Diversity and Employee Performance in the Local Government of Kanchanpur, Nepal <p><strong>Background:</strong> In today’s highly competitive governance, diversity has become one of the most critical executive issues, as the local governments have increasingly become diverse concerning their workforce. Diversity emerges in a local government when its members differ from one another. The concept of diversity includes recognizing, accepting, and respecting each difference and understanding that each is unique.</p> <p><strong>Objectives:</strong> The main objective of this paper is to investigate the association between employee performance and workforce diversity in the local government of Kanchanpur district.</p> <p><strong>Methods:</strong> The study adopted a descriptive research design. Purposive and cluster sampling techniques were used, and a structured questionnaire was used to collect the data from 400 employees of different municipalities of Kanchanpur district. To analyze data correlation matrices, ANOVA tables, and coefficient tables as outputs of regression.</p> <p><strong>Results:</strong> The employees in the local governments are becoming more diverse because of the political reforms, the global practice of local government, competitiveness and change in customer preferences, and inclusive participation in the constitution. With the drastic change in politics, the formation of the progressive constitution of Nepal increasing reforms in the last two decades and changing demographics of the labour market local government has become a place for diversity inclusion.</p> <p><strong>Conclusion:</strong> The result revealed that ethnicity diversity, educational diversity, and work performance diversity have positive impacts on employees’ performance. Further, physical disability has a negative impact on employees’ performance. This study highlights how workforce diversity affects employees’ performance in the local governments of Kanchanpur district. These results can be used to build strategies to improve the implementation of employee diversity in existing local governments.</p> Dhan Bahadur Saud Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Exploring the Impact of Loan Loss Provision on Profitability: An Analysis of Commercial Banks in Nepal <p><strong>Background:</strong> The central bank closely examines the loan loss provision maintained by Nepalese commercial banks in order to minimize potential losses resulting from a rise in non-performing loans, which reduces bank capital and squeezes the profitability and sustainability of banks. Establishing the relationship between loan loss provision and profitability is crucial in assessing the financial performance and risk management effectiveness of commercial banks. This analysis enables banks to minimize loan loss provisions, reinforcing profitability and ensuring long-term sustainability through the implementation of appropriate credit policies.</p> <p><strong>Objectives:</strong> This research aims to analyses the influence of loan loss provision on the profitability of commercial banks in Nepal. The study also takes into account pertinent variables: non-performing assets, loans and advances to total deposits, and capital adequacy which may affect the relationship.</p> <p><strong>Methods:</strong> This study has used both the descriptive and causal-comparative study approaches. The study used a panel data set consisting of 105-year observations, spanning from fiscal year 2017/18 to 2021/22, including 21 presently active commercial banks.The return on assets (ROA) is the dependent variable and loan loss provision (LLP) is an independent variable. The Fixed Effect (FE) panel regression has been chosen as an appropriate model as suggested by the Haussmann test.</p> <p><strong>Results:</strong> A panel regression model has found a negative and substantial connection between the provisions for loan losses with the Nepalese commercial banks’ profitability.</p> <p><strong>Conclusion:</strong> The study concluded that the increased provision for loan losses adversely affects the profitability of commercial banks in Nepal. Therefore, commercial banks should carefully evaluate their loan portfolios, carry out thorough credit risk assessments, and adopt sensible policies to maximize profit and ensure financial stability.</p> Rajesh Gurung, Binod Ghimire, Pramod Dahal Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Online Shopping and Customer Satisfaction in College–Level Students in Kathmandu Valley <p><strong>Background:</strong> Online shopping is becoming a popular electronic business day by day even in. Consumers can directly buy goods or services through the internet using a web browser when they engage in online shopping.</p> <p><strong>Objectives:</strong> The primary objective of the study is to investigate how factors such as product quality, information accessibility, and shipping costs affect customer satisfaction toward online shopping in Kathmandu Valley.</p> <p><strong>Methods:</strong> The study used an analytical research design. By utilizing a convenience sampling technique, 400 respondents were chosen from college-level students in Kathmandu Valley. The questionnaire survey was used to gather the primary data, which was then analyzed using cross-tabulation, an independent t-test, correlation analysis, and regression to produce the study's findings.</p> <p><strong>Results:</strong> There is an association between information availability, product quality, and shipping cost with customer satisfaction toward online shopping, however, there is a strong association between the information availability and customer satisfaction. Customer satisfaction was highly impacted by the product quality and information availability, whereas it was not affected by the shipping cost. The quality of the product, the availability of information, and customer satisfaction were not impacted by gender; only shipping costs were affected.</p> <p><strong>Conclusion:</strong> In conclusion, the online company needs to provide accurate information about their products and their business to draw potential customers and maintain the standard of websites with up-to-date information to retain regular customers. The company also needs to sell a high standard of its products and services to improve the company’s reputation to fulfill customers’ expectations. The company should also consider providing better service by timely delivering items at low cost. Future researchers will have access to a larger sample size across a variety of geographic concentrations to evaluate customer satisfaction in online shopping together with other independent factors of the general public.</p> Raju Bhai Manandhar, Jagat Timilsina Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Historical Nostalgia and Destination Loyalty Intention: Mediating Role of Perceived Value and Satisfaction among Visitors of Cultural Heritage Sites of Nepal <p><strong>Background:</strong> Heritage sites of Nepal are the center of attraction for national and international visitors. It is essential to delve into the factors that drive visitors to these destinations, which are influenced by the narratives and cultural significance associated with Nepal's heritage sites.</p> <p><strong>Objective:</strong> The purpose of this paper is to examine the mediating role of Perceived Value (PV) and Satisfaction (SAT) in the relationship between Historical Nostalgia (HN) and Destination Loyalty Intention (DLI) among visitors of cultural heritage sites of Nepal.</p> <p><strong>Methods:</strong> The research applied a cross-sectional survey research design to collect data from 256 domestic tourists. The purposive sampling method was used to reach the respondents. Partial Least Squares Structural Equation (PLS-SEM) was applied to test hypotheses.</p> <p><strong>Results:</strong> The paper findings showed that perceived values do not mediate the relationship between historical nostalgia and destination loyalty intention but show a direct effect between historical nostalgia and destination loyalty intention whereas satisfaction displays the role of mediation between historical nostalgia and destination loyalty intention. Further, historical nostalgia positively influences perceived value and satisfaction, leading to increased destination loyalty intention. Moreover, the impact of perceived value on destination loyalty intention was not supported.</p> <p><strong>Conclusions:</strong> This paper can help destination managers design marketing strategies to evoke historic nostalgia and improve visitor experiences at Nepal's heritage sites. The tourism board can apply the findings to enhance destination loyalty and increase the tourism revenue of Nepal.</p> Sajina Satyal, Gopal Subedi, Laxman Pokhrel Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Key Factors Influencing Adoption of Online Dispute Resolution in Banking Sector: An Empirical Analysis <p><strong>Background:</strong> Online dispute resolution system helps banks to reduce expenses and time associated with dispute resolution while enhancing client satisfaction and loyalty However, it faces several challenges necessitating the establishment of standards to ensure consistency and security.</p> <p><strong>Objectives:</strong> Many online dispute resolution (ODR) services like email, chat, and video conferencing offer global grievance solutions, yet individuals face challenges due to diverse regulations, leading to security, privacy, and connectivity issues. Thus, this study aims to understand how customers perceive online dispute resolution for resolving banking issues.</p> <p><strong>Methods:</strong> The research adopts an explanatory research design and employs a convenient sampling method for data collection. It's grounded in the Unified Theory of Acceptance and Use of Technology theory. A total of 403 data points were gathered using structured questionnaires and were analyzed using both descriptive and inferential analysis.</p> <p><strong>Results:</strong> This study reveals that the trust placed in ODR technology, trust in the bank's services, and the perceived ease of use (effort expectancy) are crucial determinants shaping individuals' intentions to engage with ODR. The challenges of limited technology access, lack of awareness and trust, and inadequate infrastructure pose constraints on online dispute resolution's effectiveness. Addressing these limitations involves enhancing access to technology, and infrastructure and organizing awareness programs as managerial solutions.</p> <p><strong>Conclusion:</strong> Trust in ODR technology, trust in the bank's services, and perceived ease of use are key factors influencing individuals' intentions to utilize ODR. Challenges, including limited technology access, lack of awareness and trust, and inadequate infrastructure, pose significant constraints on the effectiveness of online dispute resolution. Managerial solutions should prioritize enhancing technology access, improving infrastructure, and implementing awareness programs to overcome these barriers and optimize the potential of ODR.</p> Salina Amatya, Devid Kumar Basyal, Purnima Lawaju, Udaya Raj Paudel, Anil Bhandari Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Business Student Satisfaction: The Role of Academic and Non-Academic Services in Higher Education Institutions <p><strong>Background:</strong> Scholarly literature widely acknowledges the significance of academic and non-academic services in determining student satisfaction in higher education institutions. However, the opinion of students in determining various aspects of academic and non-academic services has not been considered, especially in developing nations.</p> <p><strong>Objectives:</strong> This study aims to examine business students’ satisfaction with academic and non-academic services.</p> <p><strong>Methods:</strong> 255 business students were purposively selected for this descriptive quantitative study. The reason for adopting purposive sampling in this study is that different people hold different and essential views about the issue and, therefore, must be included in the sample. Using the Higher Education Performance (HedPERFormance) measurement instrument, a 19-item structured survey was developed for self-administration. The data were analyzed using SPSS 21.0 and AMOS 22.0 versions. The variables determining students' satisfaction levels with academic and non-academic services were examined using descriptive statistics. Confirmatory factor analysis and structural equation modelling were used to demonstrate the interrelationship of the three constructs and validate the hypothesis.</p> <p><strong>Results:</strong> The study revealed a significant positive relationship between student satisfaction and academic and non-academic services. However, the study results demonstrated a greater significance of academic services for students in higher education institutions.</p> <p><strong>Conclusion:</strong> The findings concluded that student satisfaction extends beyond academic services, encompassing nonacademic or administrative services. These aspects directly influence how students perceive and assess the educational institution. This indicates that the satisfaction students derive from their educational experience is not solely reliant on academic factors but is equally shaped by the quality of administrative services, contributing significantly to their overall evaluation of the institution.</p> Santosh Kumar Gurung, Ramkrishna Chapagain, Kabita Thapa Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 Users’ Behavioral Intention to Use E-Payment Service in Nepal: Based on SEM Analysis <p><strong>Background:</strong> Digital payments were revolutionized after 1990 in Nepal’s payment system, and the rise of ICT and mobile tech since 2010 led customers to embrace e-payments. While e-payment adoption grows, progress is needed to make bank cards default for online purchases and enhance user awareness and trust for secure digital transactions. Further, understanding user perspectives and influencing factors is crucial.</p> <p><strong>Objectives:</strong> This study aims to analyze the intention of users to use e-payment services in the Nepalese context.</p> <p><strong>Methods:</strong> Explanatory research design is used to meet the purpose of the study. A total of 295 respondents were selected as users of the e-payment services are increasing and there is no exact number of users identified. A structured questionnaire was developed and a pretest was carried out on 10% of the sample. Data is collected from the survey through the structured questionnaire and used the Kobo Toolbox and Interviewed from Key Informants Interview (KII) method.</p> <p><strong>Results:</strong> The study shows mobile banking users are highly increasing yearly, followed by internet banking with growing users. The SEM result depicts the significant relationship between behavioral intention on user satisfaction (β = 0.191, P &lt; 0.05), perceived usefulness (β = 0.099, P &lt; 0.05), perceived ease of use (β = 0.084, P &lt; 0.05), social influence (β = 0.064, P &lt; 0.05) and perceived credibility (β =0.096, P &lt; 0.05). Furthermore, improved credibility and ease in e-payment functions can enhance customer satisfaction.</p> <p><strong>Conclusion:</strong> The study concluded that Perceived Credibility (PC), Perceived Usefulness (PU), Perceived Ease of and Social Influence (SCI) have an impact on user satisfaction and Behavioral Intention (BI) to use the e-payment system. Additionally, User Satisfaction was also found to be related to Behavioral Intention (BI) to use an e-payment system.</p> Sashi Rana Magar, Kabita Adhikari, Niranjan Devkota, Surendra Mahato, Sushanta Mahapatra, Seeprata Parajuli, Sushmita Upreti, Udaya Raj Paudel Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000 List of Peer Reviewers <p>This is the List of Peer Reviewers.</p> Peer Reviewers of JBM Copyright (c) 2023 School of Business, Pokhara University Sun, 31 Dec 2023 00:00:00 +0000