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GLOBAL JOURNAL OF
B.Com. M.A. (Eco), Ph.D.
PGDM, M.A. (Eco), Ph.D.
Managing cum Chief Editor
ISSN NO : 2394-8965
Member of Editorial Board
Dr.V. D. Sharma
(M.Sc. M.A, B.Ed, PGDFM, Ph.D)
A Gandhian Professor, Faculty of Management Studies & Ex Proctor Gen.
Secy, Rashtriya Shaikshik Mahsangh (University Campus)VBS
Purvanchal University Jaunpur-222003 (UP)Rajya Prabhari Social
Media(Bharat Swabhiman) UP
Dr. H.K.S.Kumar Chunduri
Sr. Faculty Member, Department of Business Studies,
Ibra College of Technology, IBRA, Sultanate of Oman
Dr. Violetta Gassiy
Associate professor, Public administration department, Kuban State Univer-
sity, 149, Stavropolskaya st., Krasnodar Russia
Prof (Dr) Ramesh Balkrishna Kasetwar (Retd Colonel)
PGDM, M.A. (Eco), Ph.D.
Managing cum Chief Editor
Asstt. Prof. (Mechanical)
Amity University Haryana, Gurgaon
Dr. Rushiraj Upadhyay,
Asst. Professor, M.S.W Department,
Gujarat University, Ahmedabad
Assistant Professor, Mechanical Engg Dept., FET Agra College Agra
Mahendra N. UmareAssociate
Professor & HOD (Civil) at NIT, Nagpur
Department of Global Strategy & Management 2010-presentWestern
Carolina University, Cullowhee, NC
B.Sc, M.SC., Environmental scientist
Dr. Vijay Pithadia,
PhD., MBA, Electronics Technician
Dr. Dheeraj Pawar
Assistant Professor,Amity Institute of Telecom Engineering and Manage-
ment, Amity University, Noida
Raymond W. Thron, Ph.D.,
College of Health Sciences, Walden University
The current changes and challenges experienced by the contemporary
world have been an inspiration for us in elaborating this new forum of dis-
cussions on the real world issues affecting or having a meaningful impact on
the different segment of society and on our lives. This is an attempt of boldly
and unrestrictedly contributing to new Ideas through research findings and
doing things differently, thereby providing quality and value. Scholars, re-
searchers, young researchers worldwide are encouraged to join efforts in find-
ing solutions for the common issues raised by the recent social and environ-
mental changes. It aims to be a dialogue between the scientific community
and the citizens, as a testimony of their concern to place the results of their
work in the service of the society. A new orientation in research policy is
imperative to respond to the new needs of the society to guarantee environ-
mental sustainability and economic growth in the knowledge society. The
purpose of the Global Journal of Multidisciplinary and Multidimenstional
Studies is to make an area of free circulation of ideas and knowledge, of shar-
ing experience and finding effective solutions for real-life problems, to under-
stand their causes and foresee the consequences. While the society needs and
calls for research, research needs to be accountable to society. To this end, the
journal publishes Research papers, survey, articles, research findings, book
reviews, and annotations of new books.
Managing and Chief Editor
Vol. 1 Issue No. 1 January- March 2015
1. Employability in OpenAnd Distnace Learning (ODL):An 1
Empirical Evidence From The National Open University of
Nigeria (NOUN)’Lokoja Study Center
Obaka, Jnabo Abel
2. Behaviour of InvestorTowards Risk in Mutual Funds With 14
Special Reference to Retail Investors in Cochin city
V. Srinivasan and Dr. R. Karuppasamy
3. Remittances and Entrepreneurship Development 26
4. AStudy of Sucsses Factors in International Expansion of 46
Dr. Munaveer Husain
5. Gender Equality in Environmental Issues forAcheving 54
Sustainable Peace and Security in Nigeria
Obaka, Jnabo Abel
6. The Correlation Between Commerce and Management 64
Rochelle R. Dean
7. Quality of Teachers and Infrastructures a Major Road 70
Block fro Universalisation of Elemntary Education in Bihar
Dr. Candra Mohan Singh
GLOBAL JOURNAL OF MULTIDISCIPLINARY
AND MULTIDIMENSTIONAL STUDIES
ISSN NO. 2394-8965, GJMMS
VOL -1, Issue -1, JAN- MAR -2015
FROM THENATIONALOPEN UNIVERSITYOF NIGERIA(NOUN)’S
Lecturer, NationalOpen University of Nigeria, EconomicsUnit,14-16, Ahmadu Bello Way,
Victoria Island, PMB 80067, Lagos. Nigeria.
One of therecurring themes in public discussions about higher education
inNigeria over recent times has been the employability of graduatesfrom the
nation’s higher institutions. The National OpenUniversity of Nigeria (NOUN)
is the first university inWest Africa that operates in an exclusively open
anddistance learning (ODL) mode of education.This study assesses the
employability of NOUN’sgraduates using alumnae of NOUN’s Lokoja study
centre as targetpopulation in which a sample of one hundred and fifty (n=
150) were randomly selected.The Graduates’ Opinion Rating ofEmployability of
Products of Open and Distance Learning (GOREPODL), a model developed
by the researcher, were administered electronicallyand by hand to the sample
over a period of eightweeks. Within the period, 150responses were received.
The summary of the main findings in thesurvey was in many respects an
affirmation of the employability ofNOUN’s graduates. First, the Survey revealed
that the NOUN’sgraduates – about 62per cent of the sample – were either
employed after graduationor benefited from promotion/conversion after
graduation, i.e. thosewho entered NOUN while working.However,majority
of the respondents complained about the poor conditions ofNOUN’s Lokoja
study centre. In view of thefindings above, it is hereby recommended thatall the
NOUN’s studycentres be upgraded with modern amenities. In addition, to
increaseemployability, NOUN’s curricula be redesigned forthe inclusion of
formal training for life skills; provision oftechnical and vocational education
system; the use of more life caseanalyses in teaching to improve practicality;
development ofcompulsory entrepreneurial studies for NOUN’s students
and;improving employability content in curricula and developingemployability
performance indices of NOUN’s graduates.
2/ Employbilityin Open and distance....... Slokoja stady Center
Within the open anddistance learning (ODL) mode of education,
employability is part ofthe Lifelong Learning paradigm, which emphasizes
the continuouslearning process individuals develop throughout their lives
and takesplace in formal, informal, or non-formalcontexts. In this domain,
distance and online universities are seenas key organizations in preparing
adults to fulfill the expectationsof the labour market.
It is a fact that education is the greatestsocial leveler and that education
is the most potent instrument formental and social emancipation. Nations of
the world, in recognitionof this, sought to provide quality education for
majority of theircitizens in an evenhanded and accessible manner (Fafunwa
1974). Therelationship between education and employabilityis of increasing
interest among policy-makers,both on the level of the overall provision and
the development of theeducational programmes (Kottmann and De Weert,2013).
One of the central goals of higher education is thecompetence-development of
students in order to enhance their jobchances (ibid).
Thequality andemployability of universitygraduates arevery important
concernswith regard to human resource development in a country.
Theseare affectedby the level of development of education and training, and
theavailability of skilled mentors and facilities. Research evidencesshow
that openand distance learning (ODL) mode of educationcan improve work
efficiency and productivity, and, thereby,enhance employability (Silva,Lourtie
and Aires, 2013). Workefficiency togetherwithproductivity, in addition toa
definite required level ofeducation, depend upon training and orientation of
human resources.These types of activities would include on-the-job
training,upgrading courses, and awareness courses, which are possible
morethrough ODL mode of education than anyother means.
Further,the ODLsystem can raise employment opportunities inmany
ways, as it helps develop the necessary skills, attitude andmotivation to match
opportunities to fresh job seekersand workers’ advancement aswell as for self-
employment(ibid).Recently, there has been increase in demand for skilled labour
as aresult of globalization and changes in technology and thereorganization
of work structure. The process of skill acquisitionand development through
ODL system in the developingcountries likeNigeria is more important
sinceconventionaltraining institutions do not have the capacity to train all
those whowant to acquire skills.For instance, in Nigeria,about 1.0 million
seek admission to theexisting conventional universities annuallybut only
0.12% get admitted due to inadequate resources in theuniversities (Fabiyi and
Oladipo, 2008).Moreover,only a few of those who want to
acquire universityeducation have the means toafford conventionaltraining.
It is in this context that the value ofthe use ofthe ODL mode of
Obaka,Inabo Abel / 3
education forhuman resource developmentin Nigeria cannot be over
emphasized.Hence, the need toassess the employability of the National Open
University of Nigeria (NOUN)’sgraduates using alumnae of NOUN’s Lokoja
study centrefor empirical verification.
In this section, the researcher reviewed relevant literatures on theconcept
of employability, supply-side anddemand-side elements of employability
and open and distancelearning (ODL) mode of education in Nigeria.
THE CONCEPT OF EMPLOYABILITY
The dictionarydefinition of employability is ‘the character or quality
ofbeing employable’. The Confederation of British Industry (CBI)has defined
employability thus: “Employability is thepossession by an individual of the
qualities and competenciesrequired to meet the changing needs of employers
and customers andthereby help to realise his or her aspirations and potential
in work” (CBI, 1999, p. 1). Otherattempts to define the concept have hinted at
a more holisticapproach, emphasising the impact of both individual
characteristicsand labour market conditions—i.e. both labour demand and
supplyfactors. The Canadian government’s Labour Force DevelopmentBoard
offered the following definition: “Employability is therelative capacity of an
individual to achieve meaningful employmentgiven the interaction of personal
circumstances and the labourmarket.” (Canadian Labour Force Development
Board, 1994, p.viii).
A broad-rangingdefinition of the concept was developed by Hillage and
Pollard (1998)who see employability as an individual’s ability to gaininitial
employment, maintain employment, move between roles withinthe same
organisation, obtain new employment if required and(ideally) secure suitable
and sufficiently fulfilling work. Hencethis covers both unemployed people
looking for work and employedpeople seeking alternative jobs or promotion.
Employability thus involves; “Thecapability to move self-sufficiently within
the labour market torealise potential through sustainable employment. For
the individual,employability depends on the knowledge, skills and attitudes
theypossess, the way they use those assets and present them to employersand
the context (e.g. personal circumstances and labour marketenvironment)
within which they seek work.” (Hillage andPollard, 1998, p. 12). Schultz,
Bowman,Becker and the like as suggested in Akangbou (1985) believe
thatincrease in the stock of human capital can accelerate nationaldevelopment.
Adeyeye (2000) and Akintayo(1990) criticized the manpower planning
andeducational system of past and present policy-makers. Some otherscholars
blamed graduate unemployment on mad-rush for paperqualification. The need
for a closer look at the educational contentto ensure tie between job demand
4/ Employbilityin Open and distance....... Slokoja stady Center
and the educational course contentwas suggested by authors like Akangbou
(1985) and Akintayo (2006).
Whereas the original EU strategy included employability as a pillar of its
approach, themore flexible, longer-term strategy now advocated by the
European Commission speaks of promoting more and better ‘investment
inhuman capital and strategies for lifelong learning’. However,this and many
of the Commission’s other guidelines forimplementing the strategy (or so-
called ten commandments) reflect thepre-existing focus on employability,
including: the promotion ofactive and preventative measures for the (especially
long-term)unemployed and inactive; improving financial incentives to make
workpay; and promoting active ageing (CEC, 2003b). Other cross-
nationalinstitutions concerned with labour market policy have similarly
emphasised the importance of employability. The United Nations (UN)has
made employability one of its four priorities for national policyaction on youth
employment (along with entrepreneurship, equalopportunities between
young men and women and employment creation).To this end, the UN’s
Youth Employment Network has suggestedthat: “All countries need to review,
re-think and re-orienttheir education, vocational training and labour market
policies tofacilitate the school to work transition and to give young people . ..
a head start in working life.” (UN, 2001, p. 4).
SUPPLY-SIDE ANDDEMAND-SIDE ELEMENTS OF EMPLOYABILITY
Evans et al. (1999)suggest a division of employability into supply-side
and demand-sideelements (described as ‘employability components’
Employabilitycomponents are identified as including;
– the extentof the individual’s transferable skills;
– the level ofpersonal motivation to seek work;
– the extentof the individual’s ‘mobility’ in seeking work;
– access toinformation and support networks;
– and theextent and nature of other personal barriers to work.
– theattitudes of employers towards the unemployed;
– the supplyand quality of training and education;
– theavailability of other assistance for disadvantaged job seekers;
– the extentto which the tax-benefits system successfully eliminates
– and (mostimportantly) the supply of appropriate jobs in the local
Similarly, Kleinmanet al. (1998) discuss a range of ‘micro’ and
‘macro’factors that define the detail of each side of the supply-side–demand-
side equation. In an attempt to arrive at a definition of employability that
would provide a ‘framework for policyanalysis’ and a means of understanding
Obaka,Inabo Abel / 5
the complexities of thebarriers to work faced by individuals, Hillage and Pollard
(1998) have drawn upon many themes from the existing literature.
Theirframework for employability seeks to highlight a complex interactionof
different components, namely;
Employabilityassets: including baseline assets, such as basic skills
andessential personal attributes (for example, reliability and honesty);
intermediate assets, such as job-specific, generic and ‘key’skills (e.g.
communication and problem solving); and highlevelassets, such as those skills
that contribute to organizationalperformance (for example, team work and
Presentation: defined as the ability to secure an appointment to an
appropriateposition through the demonstration of employability assets (for
example, through the competent completion of a curriculum vitae orapplication
form, or participation in an interview).
Deployment: referring to a range of abilities including career management
skills(for example, awareness of one’s own abilities and limitations, awareness
of opportunities in the labour market, and decision-makingand transitional
skills) and job-search skills.
Context factors,or the interaction of personal circumstances and the
labour market: Hillage and Pollard accept that the individual’s ability to realise
the assets and skills discussed above will to some extent depend upon external
socio-economic factors, personal circumstances and the relationship between
the two. Externalconditions such as local labour market demand andemployer
attitudes will impact upon the availability of suitable opportunities, while
personal circumstances will affect theability of individuals to seek and benefit
Forthe purpose of this research, employability is considered both in its
theoretical and practical dimensions. Atthe theoretical level, employability is
the students’ potentialto adapt and make their knowledge, skills, and attitudes
flexibletowards the labour market, promoting their social inclusion
andensuring their quality of life. At a practical level, employabilityis the
potential students bring into practice through their skills to become
employed or promoted afterobtaining NOUN certificates.
OPEN AND DISTANCELEARNING (ODL) MODE OF EDUCATION IN NIGERIA
The National Open University of Nigeria (NOUN) is a public distance
educationuniversity and is the only Nigerian public university to teach all
undergraduate, master’s, and PhD degrees based on ODL system. All
thedegrees have been adapted to the National University Commission
(NUC) approved programmes. Its diversified educational offer is based on a
self-developed pedagogical virtual model that emphasizes the following
principles: i) student-centred learning, ii) flexibility, iii) interaction, iv)
6/ Employbilityin Open and distance....... Slokoja stady Center
accessibility, v) affordability and vi)digital inclusion. These principles guide
teaching procedures, the roles of students and teachers, the planning, design,
and management of learning activities, the materials used, and the assessment
of the acquired skills (Pereira et al., 2007, p. 10).
At the NOUN,the student is at the centre of the university’s pedagogical
model, taken as an active individual, the builder of his/her own knowledge
and integrated within a learning community (Aires, 2007, p.21). At its different
levels, education should facilitate the acquisition and development of
interlinked skills required by thedigital society as well as of specific skills in
the area of knowledge chosen by the student. The planning of teaching and
learning activities is meticulous, giving priority to the development of skills
in each subject (Pereira etal., 2007, p. 10). Additionally, the results of student
learning derive from a combination of autonomous and collaborative learning.
Collaborative learning prepares students for the needs of organizations whose
obligations are based primarily on work in multidisciplinary teams and the
joint construction of knowledge(Pereira et al., 2007, p. 11).
The principles ofthe NOUN virtual pedagogical model meet thechallenges
currently facing higher education in the field of employability. The primacy of
providing students with flexibility, autonomy, reflexivity, and a critical guide
to the development of metacognitive skills, developing their perceptions of
self-efficacy and knowledge about their mechanisms of action, thought, and
development, are all dimensions that are closely linked to the skillsrequired
for employability (ibid).
NOUN is the first university in West Africa that operatesan exclusively
open and distance learning (ODL) mode of education
NOUN focuses mainly on open and distance teaching and learning
system, anddelivers its courses materials via print in combination
withinformation and communication technology (ICT).This ‘single mode’ of
open education is differentfrom the integration of distance learning system
into the face- to-face teaching and learning system, which is more typical
ofconventional Universities in Nigeria and other parts of the world.Thus,
NOUN reflects a novel development in the provision of highereducation in
Nigeria. Though Nigeria is thepioneer of ODL in West Africa with the
establishment of NOUN in 1983,and several universities have distance learning
programs, ODL is yetto be entrenched, and its gains yet to be fully realised in
thecountry (Gambari, 2014). Apart from the problems that bedevil
highereducation in Nigeria in general, ODL suffers setbacks due to thegeneral
infrastructural deficit paricularly in poor postal system,erratic power supply,
ICT spread and penetration, the digital divide(Yusuf, 2006) and poor
connectivity among tertiary institutions inthe country which are essential
Obaka,Inabo Abel / 7
for this mode of learning.
OBJECTIVESOF THE STUDY
The objectives ofthe present research were to study:
1. the employability of NOUN graduates;
2. the adequacy, relevance and application of the distance education to
3. the cost-effectiveness and worth of the NOUN course programmes
: Thecurricular contents of NOUN courses are inadequate and not
comparable to those of other Nigerian universities.
: Thecurricular contents of NOUN courses are adequate and
comparable to those of other Nigerian universities.
:Products of distance learning are not employable
: Products of distance learning are employable
: The NOUN course programmes are not worth the money and time
invested and the course fees are not the lowest among Nigerian universities.
:The NOUN course programmes are worth the money and time
invested and the course fees are the lowest among Nigerian universities.#
:NOUN Study centre atmosphere and decor are not appealing.
: NOUN Study centre atmosphere and decor are appealing.
The samples for this study comprised of NOUN’s graduates randomly
selected from Lokoja study centrein Nigeria. The sample was drawn
from graduated students who registered for various degrees programmes at
the NOUN’s Lokoja study centre. A structured questionnaire entitled the
Graduates’ Opinion Rating of Employability of Products of Open and Distance
Learning (GOREPODL) was developed by the researchers to gather the
required information. The GOREPODL is a7-itemLikert-type closed end
questionaire designed to measure those NOUN’s graduates who had either
secured employment after graduation or werepromoted/upgraded/converted
with their certificates if they were working before undergoing training at
NOUN. The questionnaire was also designed to measure those NOUN’s
graduates who were still unemployed. The instrument was administered to
the NOUN’sgraduates through email, telephone textmessages and by hand
when the researcher travelled to Lokoja, KogiState, Nigeria. Their contact
8/ Employbilityin Open and distance....... Slokoja stady Center
addresses, email addresses andtelephone numbers were obtained from NOUN’s
ICT Department.Subjects were asked to rank each item as yes,no, or undecided.
The questions on theGOREPODL were designed to elicit subjects’opinions
and attitudes towards the adequacy ofskills acquired and the curricular
contentsof NOUN’s courses in comparison to those of other
Nigerianuniversities as well as their employability. Others were
coursesrelevancy and applicability to work schedule, whether NOUN’scourse
programmes were worth the money and time invested, whetherNOUN’s course
fees were the lowest among Nigerian universitiesand whether NOUN’s Study
centre atmosphere and decor areappealing. The instrument wasvalidated by
two experts in research and evaluation; its test-retestreliability was
0.68 (n = 20).One hundred and fifty (n = 150)respondents were from NOUN’s
Lokoja studycentre. Results were analyzed using simple percentagestatistics.
RESULTS AND FINDINGS
RESULTS GENERATED FROM THE INSTRUMENT ARE PRESENTED IN TABLE 1 BELLOW.
TABLE 1: RESULTS OF THE GRADUATES’ OPINION RATING OF
EMPLOYABILITY OF PRODUCTS OF OPEN AND DISTANCE
Source: Authors’ Research Survey 2014
No. Questions Yes No Undecided
1. NOUN Graduates have acquired adequate skills
for the labour market.
2. The curricular contents of NOUN courses are
adequate and comparable to those of other
12 (8%) 18 (12%)
3. As a NOUN Graduate, you were employed or
converted or upgraded after graduation.
93 (62%) 57 (38%) -
4. NOUN Courses were relevant to what NOUN
Graduates use/apply at work.
90 (60%) 60 (40%) -
5. The NOUN course programmes are worth the
money and time invested.
15 (10%) 5 (3.33%)
6. NOUN Course fees are the lowest among
7. NOUN Study centre atmosphere and decor are
60 (40%) 90 (60%) -
Obaka,Inabo Abel / 9
Table:1 above shows the item-by-item percentage analysis
of thestructured questionnaire entitled the Graduates’ Opinion Rating
of Employability of Products of Openand Distance Learning
(GOREPODL)developed by the researcher.One hundred and thirty NOUN’s
graduands(86.67%) perceived that theyhave acquired adequate skills for the
labour market. Twentygraduands (13.33%)disagreed to the statement:
“NOUNGraduates have acquired adequate skills for the labour market.”The
researcher suggest that this finding isnot surprising however, considering
that NOUN’scurricula are designed for life-long learning andemployability.
Responses to Item 2:One hundred and twenty students (80%) agreed
that, “Thecurricular contents of NOUN courses are adequate and comparable to those
of other Nigerian universities. ”This indicate that there is little difference
in graduates’ perceptions of lectures/tutorials used in the conventional
institutions versus NOUN. This finding suggests that students engaged in
ODL willlikely achieve learning outcomes similar to that offered by
conventional educational methods.
In view of the positive responses to Items 1 and 2 above, the study rejected
thenull hypothesis in hypothesis 1 which stated that the curricular contents
of NOUN’s courses are inadequate and not comparable to those of other
Nigerian universities and accepted the alternative hypothesis that thecurricular
contents of NOUN’s courses are adequate and comparable to those of other
A finding from Item 3, “As a NOUN Graduate, you were employed or converted
or upgraded after graduation,” in which ninety-three graduates (62%) agreee
simply that NOUN’s graduates are employable. The study,therefore , rejected
the null hypothesis in hypothesis 2 that products of distancelearning are
not employable and accepted the alternative hypothesisthat products of
distance learning are employable.
Otherfindings in items 4, 5 and 6 were that respondents agreed on courses
relevancy and applicability to work schedule (64%); that NOUN’s course
programmes were worth the money and time invested (86.67%) and that
NOUN’s course fees were the lowest among Nigerian universities
(53.33%). This means that in hypothesis 3, the studyrejectedthe null
hypothesis that the NOUN’s course programmes are not worth the money
and time invested and the course fees are not the lowest among Nigerian
universities. The study, therefore, accepted the alternative hypothesis that
NOUN’s course programmes are worth the money and time investedand the
course fees are the lowest among Nigerian universities.
However, in item 7, ninety respondents (60%) disagreed that NOUN’s
study centres’ atmosphere and decor were appealing. The study, therefore,
accepted the null hypothesis in hypothesis 4 that NOUN’s study centre
atmosphere and decor are not appealing and rejected the alternative hypothesis
10/ Employbilityin Open and distance....... Slokoja stady Center
that NOUN’s study centre atmosphere and decor areappealing.
It has increasingly become important for individuals to take on a highly
flexible, adaptable and proactive approach towards managing their careers,
and by implication, their employability. Being employable is especially relevant
to people studying for degrees and graduates as employers seek graduates
that display qualities that will enable them to ‘hit the ground running’ in
delivering value to the organization and to stay abreast of the latest
development in the career environment. Despite the obvious significance of
employability and widespread interest in the topic, it remains conceptually
ambiguous (Harvey, 2001; McQuaid & Lindsay, 2005) and there is a lack of
empirical studies that explain its foundation (Fugate etal., 2004:16). Moreover,
relatively fewstudies have attempted to measure employability (Silva,Lourtie,
and Aires, 2013) and fewer stillhave focused on developing accurate measures
to assess the employability of ODL graduates in particular.
Findings from this study are very important as well. Although
respondents’ recognition of the worth of ODL university education was never
in doubt, they nonetheless complained about the poor conditions of NOUN
study centre. Graduates’ responses to item 7 supported this assertion.
Most graduates in this study held positive perceptions and attitudes towards
ODL as indicated in their responses to items 1-6. These findings suggest there
is strong rationale for the expansion of the ODL institutions in Nigeria. It
alsosuggests that ODL institutions have reached the critical tipping point of
acceptance, and as such ODL institutions are well positioned to become a
permanent component of the formal education system in Nigeria. Sustaining
students’ favorable perceptions and improving any and all shortcomings as
they arise now rests on the shoulders of those charged with running Nigeria’s
ODL institutions. These educational leaders must not only run ODL
institutions effectively and efficiently, they must strive to continuously improve
the quality of their institutions’ educational offerings and seek ways to expand
their educational provision.
The 150 NOUN’s graduates at Lokoja study centre who responded to
this survey indicated their interest in the unique features that madeup ODL
institutions, such as adequacy and relevance of skills and curricular contents,
employability and worth of time invested in the programmes, comparatively
lower fees, and quality of study centre. The findings reported here also suggest
that those administering and leading Nigeria’s ODL institutions are in an
excellent position to build positively on the favourable perceptions already
held by many distance learning students. They can achieve this through the
effective and efficient management of Nigeria’s ODL institutions.
Obaka,Inabo Abel / 11
CONCLUSION AND RECOMMENDATIONS
The overall purpose of this study was to develop and evaluate a measure
of graduate employability in the context of the ODL mode of education. A
comprehensive literature review provided the context for highlighting the
need for individuals to be employable against the back drop of a turbulent
work and career environment. The employability construct was a structured
questionnaire entitled the Graduates’ Opinion Rating ofEmployability of
Products of Open and Distance Learning (GOREPODL) developed by the
researcher as an instrument to gauge ODLgraduates’employability. The results
of this study have therefore made a contribution to the academic community,
higher education and industrial psychology practice by providing valuable
insight into the conceptualisation and effective measurement of employability,
a construct that has become not just important but indeed imperative in a
continuously shifting work and career space.
Research on the phenomenon of employability in distance higher
education needs further development. The challenges currently facing
the Nigerian higher education, particularly the complexity of entering the
labour market for many graduates, the new paradigm of Lifelong Learning,
and the peculiarities of adult and distance learning, justify more research in
this domain. In view of the findings above, it is hereby recommended that
all the NOUN’s study centres be upgraded with modern amenities. In addition,
to increase employability, NOUN’s curricula be redesigned for the inclusion
of formal training for life skills; provision of technical and vocational education
system; the use of more life case analyses in teaching to improve practicality;
development of compulsory entrepreneurial studies for NOUN’s students and;
improving employability content in curricula and developing employability
performance indices of NOUN’s graduates.
Adeyeye, J.O.(2000). Labour Management Relations in a Recessional
A Quarterly Academic Publication Review Ltd. Vol.1, PP27-42
Akangbou, S.D.(1985). The Economics of Educational Planning in
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Akintayo, M.O.(1990): The relevance of Out – Reach Programmes to
capable under utilization of Resources in Higher Education in Nigeria
in 1990s. The Educational Planner. Vol.1.No.3. pp. 120 – 131
Aires, L., Azevedo, J .;Gaspar,I .and Teixeira, A. (Coords.)
(2007).VirtualLearning Communities and Identities: The project @
CANADIAN LABOUR FORCE DEVELOPMENT BOARD (1994).
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Putting the pieces together:towards a coherent transition system for
Canada’s labour force. Ottawa: Canadian Labour Force Development
Board.CBI (CONFEDERATION OF BRITISH INDUSTRY) (1999).
Making Employability Work: AnAgenda for Action. London: CBI.
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presented at the 3rd pre-Convocation Lecture of the National Open
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Pereira, A., Mendes, AQ, Morgado, L., Lover, L. & Bidarra, J.
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14/ Behaviour of Investor Towards ........ Cochin City
ISSN NO. 2394-8965, GJMMS
VOL -1, Issue -1, JAN- MAR -2015
BEHAVIOUR OF INVESTOR TOWARDS RISK IN MUTUAL FUNDS
WITH SPECIAL REFERENCE TO RETAIL INVESTORS IN COCHIN CITY
Research Scholar in Management Studies, Karpagam University, Coimbatore
Dr. R. Karuppasamy
Director, Nehru Institute of Technology ,Coimbatore
A retail investor makes an investment in a mutual fund scheme in
expectation of higher return. The risk is the actual return may be less than
expected return. The investment behaviour of a retail investor varies with
various factors contributing to his risk level while making an investment in
a mutual fund scheme. This study makes an attempt to understand the investor
behaviour towards risk in mutual funds. The study finds that the investment
behaviour of mutual fund investors’ is positive towards the mutual fund
industry as investors are satisfied with the returns and service provided by
mutual funds. Company reputation and schemes’ features are the driving
factors for the investors to invest in mutual funds. The risk preference of the
investors is increasing with decrease in age and with decrease in number of
dependents. However, there is a mismatch between income levels and risk-
return preference by investors as individual from varied income levels is willing
to take high risk to achieve high returns. In order to avoid this mismatch an
“Investors’ Risk Taxonomy Model and Matrix” is been developed using the primary
Primary data have been collected from mutual fund investors in Cochin,
India through structured questionnaire.
KEYWORDS : INVESTMENT BEHAVIOUR, INVESTOR BEHAVIOUR TOWARDS RISK, MUTUAL
FUNDS, KNOWLEDGE, INVESTORS RISK TAXONOMY MODEL AND MATRIX, COCHIN, INDIA.
At the time of investing, nothing will pay off more than educating oneself.
The investors should be aware of various aspects while making an investment
in an investment avenue. In any economy, investments are the major source
of growth. Presently retail investors’ have plenty of options for making an
investment, but in the current economic position where the inflation is growing
at a faster pace than the interest rate of bank savings and high volatility of
V. Srinivasan . Dr. R. Karuppasamy / 15
share market prices puts the investor in a dilemma to choose a suitable and
profitable investment avenue.
This need of investors’ gears to shift the investment trend to mutual
funds where the pool of funds are collected from investors and invested in
securities like shares, bonds, debentures, gold, money market instruments
etc. which are managed by a professional fund manager. Mutual fund offers
various schemes which suit the risk appetite and return needs of different
kinds of investors. If an investors, invest in a mutual fund scheme without
having the knowledge of own risk tolerance level, he/she may end up losing
money due to various risks involved in a particular scheme. It is the
responsibility of a Mutual Fund house to understand the risk profile and
investment behaviour of investors and suggest suitable scheme to them and
also have to manage the risk efficiently by revising the portfolio according to
market shifts to match the risk level and investment objective of a particular
This research helps in identifying the differences in the risk profiles of
mutual fund investors and their investment behaviour.
1. REVIEW OF LITERATURE
V G Murugan (2012), evaluated the investors behaviour in mutual fund
and found that one–third of investors out of 300 respondents have not formed
any attitude towards mutual fund investments. The main reason behind this
has been observed to be the lack of awareness of investors about the concept
and working of the mutual funds. As far as the benefits delivered by the
mutual funds are concerned, ‘return potential’ and ‘liquidity’ have been
perceived to be the most attractive by the investors, followed by ‘flexibility’,
‘affordability’ and ‘transparency’.
Dr. K. Lakshmana Rao (2011), analysed investors perception towards
mutual fund schemes and suggested that Regulatory bodies like SEBI, IRDA,
AMFI and other AMC’s have to conduct educational and orientation
programmes in Universities, institutes and stock exchanges, so that investors’
will enhance their knowledge for making more prudent investment decisions.
D Kandavel (2011), conducted a research on attitude of the investors
towards mutual fund selection criterion in Puducherry and found that varied
age group people have varied attitude towards mutual fund selection. Gender
and education level has no significant influence on the attitude level of investors.
Alex Wang (2011), studied the young generations investing behaviours
in mutual funds and found that gender, income, knowledge, and experience
emerge as important personal and social influences on younger generations’
investing behaviours in mutual funds. This underscores the importance of
financial socialization of younger generations at school and home.
16/ Behaviour of Investor Towards ........ Cochin City
Simran Saini, Dr Bimal Anjum and Ramandeep Saini (2011), examined
the investors’ perception and awareness towards mutual funds and outlined
that mostly the investors have positive approach towards investing in mutual
funds. In order to maintain their confidence in mutual funds they should be
provided with timely information relating to different trends in the mutual
Nidhi Walia (2009), analysed the risk perception towards mutual fund
services and reveals that due to volatility in the market, retail investors prefer
mutual funds to stocks, but some desired investors need innovation and added
quality dimensions to the existing mutual fund services to prefer it a prior
Ms T R Rajeswari (2001), examined the factors influencing the mutual
fund scheme selection by retail investors reveals that mutual fund is the fourth
most preferred investment vehicle. The investors look for safety first in mutual
fund products, followed by good returns, tax benefits, liquidity and capital
2. MUTUAL FUND
Mutual fund is a vehicle to mobilize funds from investors, to invest in
different markets and securities, in line with the investment objectives agreed
upon, between the mutual fund and the investors.
Fig 3.1: Mutual fund working process
3.1 ADVANTAGES OF MUTUAL FUNDS FOR RETAIL INVESTORS
a. Professional Management
b. Affordable Portfolio Diversification
c. Economies of Scale
e. Tax Deferral
f. Tax benefits
V. Srinivasan . Dr. R. Karuppasamy / 17
g. Convenient Options
h. Investment Comfort
i. Regulatory Comfort
j. Systematic approach to investments
3. RESEARCH METHODOLOGY
In mutual funds different levels of risks are associated with different type
of schemes/funds. It is important to study the investment behaviour of mutual
fund investors towards risk is to understand their investment needs, risk
tolerance level and risk-return needs and other factors influencing the
investment behaviour of retail mutual fund investors.
A well-structured questionnaire have been prepared and distributed to
the retail mutual fund investors of Cochin region. Since the population is
huge convenience sampling method is adopted for collecting primary data.
Responses of 50 individual investors were collected from Cochin using
questionnaire and those were assumed to be having knowledge of financial
4.1 OBJECTIVES OF THE STUDY
- To assess the differences in the risk profile of investors and to suggest
a risk model
- To analyse the factors influencing the decision of investors to invest
in Mutual Funds
- To estimate the satisfaction level of investors who invested in Mutual
4. ANALYSIS AND DISCUSSION
The primary data collected from retail investors using the interview
method is been analysed using the frequencies, percentages and factor analysis
5.1. PROFILING OF RETAIL MF INVESTORS IN COCHIN REGION.
Table 5.1.1: Gender of respondents
18/ Behaviour of Investor Towards ........ Cochin City
Table 5.1.2: Age of respondents
Age of Investor Respondents
20-30 years 36%
30-40 years 32%
40-50 years 16%
50-60 years 14%
60-70 years 2%
70-80 years 0%
Table 5.1.3: Annual Income of respondents
Annual Income Respondents
< 1 Lakh 0%
1-2 Lakhs 10%
2-3 Lakhs 26%
3-4 Lakhs 16%
4-5 Lakhs 18%
5-6 Lakhs 4%
6-7 Lakhs 2%
7-8 Lakhs 0%
8-9 Lakhs 0%
9-10 Lakhs 0%
> 10 Lakhs 4%
Table 5.1.4: Annual savings of respondents
Annual Savings of investor Respondents
< 50 Thousand 8%
50 Thousand - 1 Lakh 42%
1-2 Lakhs 22%
2-3 Lakhs 16%
3-4 Lakhs 2%
4-5 Lakhs 4%
5-6 Lakhs 4%
> 6 Lakhs 2%
V. Srinivasan . Dr. R. Karuppasamy / 19
Table 5.1.5: Education Level of respondents
Qualification of investor Respondents
Post Graduate’s 44%
Higher Secondary 10%
No Education 0%
Table 5.1.6: Marital Status of respondents
Marital Status of Investor Respondents
Table 5.1.7: Occupation of respondents
Occupation of Investor Respondents
Private Employee 54%
Government Employee 20%
Self Employed 22%
5.2. INVESTMENT BEHAVIOUR OF RETAIL MUTUAL FUND INVESTORS
From the appendix fig. 5.2.1 it is observed that out of the total population
of retail mutual fund investors, 30% of investors prefer mutual funds as their
best investment avenue, 18% prefer to invest in savings bank account, 16%
prefer to invest in bank fixed deposits, 8% prefer to invest in public provident
fund, 4% prefer to invest in life insurance policies, 16% prefer to invest in
equity shares whereas 8% people prefer to invest in Gold, Recurring deposits,
post office savings and commodities.
From the appendix fig. 5.2.2 it is seen that out of the total population of
retail mutual fund investors, 72% people prefer to invest in equity related
schemes, 20% prefer to invest in balanced schemes and the remaining 8%
prefer to invest in tax saver and debt schemes.
From the appendix fig. 5.2.3 it is observed that out of the total population
of retail mutual fund investors, 80% prefer to invest when market is performing
low, 8% prefer to invest when market is balanced, 8% prefer to invest when
market is performing well and the remaining 4% prefer to invest when market
From the appendix fig. 5.2.4 it is seen that out of the total population of
retail mutual fund investors, 26% people believe that investing in mutual
fund schemes will help them in achieving their goals, 52% people has a partial
confidence that investing in mutual fund schemes will help them in achieving
their goals and 22% people has a no idea whether investing in mutual fund
will help in achieving their goals.
20/ Behaviour of Investor Towards ........ Cochin City
5.3. RISK PREFERENCE, AWARENESS AND TOLERANCE LEVEL AMONG MUTUAL FUND
From the appendix fig. 5.3.1 it is observed that out of the total population
of retail mutual fund investors, 80% people are well aware of the risks involved
before investing in a mutual fund scheme, 18% people are partially aware of
the risks involved before investing in a mutual fund scheme whereas only 2%
people are unaware of the risks involved before investing in mutual fund
From the appendix fig. 5.3.2 it is seen that out of the total population of
retail mutual fund investors, 74% people has good knowledge of fact sheet
before investing in a mutual fund scheme, 18% people has partial knowledge
of fact sheet before investing in a mutual fund scheme whereas 8% has no
knowledge of factsheet before investing in a mutual fund scheme.
From the appendix fig. 5.3.3 it is observed that out of the total population
of retail mutual fund investors, 32% prefer a portfolio which yields high risk
and returns, 56% prefer a portfolio which yield above average risk and returns,
6% prefer a portfolio which yields below average risk and returns and
remaining 6% prefer a portfolio which yields low risk and returns.
From the appendix fig. 5.3.4 it is seen that out of the total population of
retail mutual fund investors, the investors who belong to the age group of
20-30 years tend to take higher risk and the investors who belong to the age
group of above 50 years tend to take below to above average risk.
From the appendix fig. 5.3.5 it is observed that out of the total population
of retail mutual fund investors, the investors who have the earning of 2-3
Lakh annual income willing to take high risk aiming for high returns and
investors who earn above 5 lakhs also willing to take high risk aiming to
earn high return.
From the appendix fig. 5.3.6 it is seen that out of the total population of
retail mutual fund investors, the investors who has two and less than two
dependents tend to take high risk while investing, whereas the investors
who has more than two dependents tend to take moderate risk.
V. Srinivasan . Dr. R. Karuppasamy / 21
5.4. INVESTORS RISK TAXONOMY MODEL AND MATRIX.
Fig 5.4.1: Investors Risk Taxonomy Model
Based on the demographics and the risk – return needs of the Mutual
Fund investors the following Risk Taxonomy Model and Matrix has been
prepared in order to provide a suitable scheme to a particular investor to suit
one’s risk tolerance level and risk preference which helps the Mutual Fund
companies to gain investors’ trust for long term and also to avoid future loss
to the investor.
22/ Behaviour of Investor Towards ........ Cochin City
Table 5.4.1: Investor Risk Taxonomy Matrix.
The Risk Taxonomy Matrix is used to identify exact risk tolerance level
of an investor with characteristics varied by age group, income level and
number of dependents.
5.5. SATISFACTION LEVEL OF INVESTORS TOWARDS MUTUAL FUNDS
From the appendix fig. 5.5.1 it is seen that out of the total population of
retail mutual fund investors 6% investors are highly satisfied with the returns
produced by their investment, 82% investors are satisfied with the returns
produced by their investment and 12% investors are moderately satisfied with
the returns produced by their investment.
H H H H H H H H 1
AA AA AA H H H H H 2
BA AA AA AA H H H H 3
AA AA H H H H H H 1
BA BA AA AA H H H H 2
BA BA AA AA AA H H H 3
AA AA AA H H H H H 1
BA BA AA AA AA H H H 2
BA BA BA AA AA AA H H 3
AA AA AA AA H H H H 1
BA BA BA AA AA AA H H 2
BA BA BA BA BA AA H H 3
AA AA AA AA AA AA H H 1
BA BA BA BA AA AA H H 2
L L BA BA BA BA AA H 3
BA BA AA AA AA AA H H 1
L BA BA BA BA AA AA AA 2
L L L L BA BA BA AA 3
V. Srinivasan . Dr. R. Karuppasamy / 23
From the appendix fig. 5.5.2 it is observed that out of the total population
of retail mutual fund investors 10% investors are highly satisfied with the
service provided by the Mutual Fund companies, 80% investors are satisfied
with the service whereas 10% investors are moderately satisfied with the service.
5.6. FACTORS INFLUENCING INVESTORS TO INVEST IN MUTUAL FUNDS
From the table 5.6.1 and 5.6.2 it is observed that factor analysis is
conducted using 14 variables identified. The results of factor analysis identified
three factors which influence the investment decision of retail investors are
iii. Innovativeness and Rating
This Factor analysis clearly says that investors tend to choose a scheme
from a Mutual Fund house by taking into consideration the reputation of
mutual fund house, features, innovativeness and rating of scheme.
This study reveals that the investment behaviour of mutual fund investors’
is positive towards the industry. The mutual fund investors are satisfied with
the returns and service provided by the mutual fund companies. Reputation
of the company and fund features’ are found to be the driving factors for the
investors to invest in schemes of mutual funds.
The mismatch between the investors’ risk tolerance level and the risk-
return preference of the investors leads to the loss in the investors’ principal
and trust. To avoid this mutual fund companies should suggest suitable scheme
to the investors where the risk prevailed in the scheme is perfectly tolerable
by the investor.
Since this study is carried out among the investors in Cochin City, there
is a further scope for the researchers to extend similar studies in other cities.
6. SUGGESTIONS AND RECOMMENDATIONS
- Among the respondents 34% of the investors have chosen savings
bank account and bank fixed deposit as their favourite investment avenue.
Thus there is an ample opportunity for the mutual fund companies to capture
these markets by imparting knowledge in the minds of investors about the
advantages of investing in mutual funds.
- Out of the total respondents 20% have less or no knowledge of the
risks involved in a scheme before making an investment decision. The Mutual
Fund companies should feel responsible in making their investors aware of
risks involved before making an investment decision.
- Out of the total respondents 26% do not have knowledge of fact-sheet
before making an investment decision. Hence all the investors should be
24/ Behaviour of Investor Towards ........ Cochin City
requested to go through fact-sheet before making an investment.
- There is a high mismatch between the investors risk tolerance level
and the risk an investor is facing after making an investment. This should be
avoided by following the Investor Risk Taxonomy Model suggested in chapter
- When investors are requested to give suggestions for improvement in
the selection of Mutual Fund schemes, most of the investors suggested that
conducting seminars and workshops in a frequent intervals to educate them
regarding the performance of the schemes will help them in making a wise
Kandavel D. (2011), “Attitude of the Investors towards Mutual Fund
Selection Criterion in Puducherry an Empirical Study.” International
Referred Research Journal, Volume 3, Issue 26, pp. 18:20.
Murugan V G. (2012), “Evaluation of Investors Behaviour in Mutual
Funds.” EXCEL International Journal of Multidisciplinary Management
Studies, Volume 2, Issue 1, pp. 274-285.
Rajeswari T R and V E Rama Moorthy.(2011), “An Empirical Study
on Factors Influencing the Mutual Fund/Scheme Selection by Retail
Rao K.Lakshmana. (2011), “Analysis of Investors’Perceptions towards
Mutual Fund Schemes with Reference to Awareness and Adoption of
Personal and Family Considerations.” International Journal of
Multidisciplinary Research, Volume 1, Issue 8, pp. 175-192.
Saini Simran, Dr Bimal Anjum and Ramandeep Saini. (May 2011),
“Investors’ Awareness and Perception About Mutual Funds.”
International Journal of Multidisciplinary Research, Volume 1, Issue 1, pp.
Walia Nidhi and Dr Ravi Kiran, (May 2009), “AnAnalysis of Investor’s
Risk Perception towards Mutual Funds Services.” International Journal
of Business and Management, Volume 4, No. 5, pp. 106-120.
Wang Alex. (2012): “Younger Generations’ Investing Behaviours in
Mutual Funds: Does Gender Matter?.” The Journal of Wealth Management.
NISM-Series-V (2011), “A: Mutual Fund Distributors Certification
Examination” National Institute of Securities Markets. Navi Mumbai.
Malhotra, Naresh K.( 2003) “Marketing Research”. Pearson Education.
V. Srinivasan . Dr. R. Karuppasamy / 25
Chawla, Deepak and Neena Sondhi (2011) “Research Methodology”.
Vikas Publishing house pvt. Ltd.New Delhi.
Satish D and Kishore Krishna P (2006), Behavioral Finance – An
Introduction, The ICFAI University Press. Hyderabad.
26/ Remittances and Enterpreneurship Development
ISSN NO. 2394-8965, GJMMS
VOL -1, Issue -1, JAN- MAR -2015
Department of Economics University of Gujrat
For the last one decade, remittances have been showing an upward
increasing trend in case of Pakistan and being, the second best source of
foreign exchange and foreign investment, they work like a dominant force to
manage the current account deficit. During the global economic down turn,
remittances have shown resilience and recorded 23.9 percent growth during
2009 over the previous year 19.5 percent in 2008. Remittances have become
the economic lifeline for the destiny of Pakistan and promoted economic
growth as it shows 5.5 percent share in GDP of Pakistan in 2010. As far as the
matter of entrepreneurship is concerned, it is the software of the economy
and works like blood in vain for economic growth. In developing countries
like Pakistan, entrepreneurship plays a vital role in promoting the economic
growth through employment creation and poverty reduction. The situation
of entrepreneurship in Pakistan is not satisfactory due to some factors like
corruption, property rights, policy implications, tax regulations etc. This study
conducts a survey to analyze the role of remittances in entrepreneurship
development. The survey includes the 120 households that were interviewed,
located in rural and urban areas of Gujrat. The major focus of the study is on
an important source of entrepreneurship development for the households of
Gujrat, remittances. This study employs the logistic regression to compute
the results as econometric technique and it concludes five variables as Amount
of remittances, Family business experience, Profession in abroad, Marital
status, and Domestic credit availability are significant and have positive
association with the entrepreneurship development except Marital status.
Remittances don’t very robustly impact on the entrepreneurship development.
Based on the results and discussion, the study suggests that government
should provide the technical education, opportunities to invest, remove the
high constraints on the credit, and remove the obstacles on the way of
entrepreneurship. Last but not least, the government should sketch out
entrepreneurship and innovation based policies.
Jubran Khalid / 27
KEYWORDS: REMITTANCES, ENTREPRENEURSHIP, CREDIT AVAILABILITY, BUSINESS EXPERIENCE,
International migration is one of the important factors, which affect the
relations between developing and developed economies in 21st
2010, the stock of international migrants in foreign countries has touched the
figure 215.8 million or 3.2 Percent of the world population. Official recorded
amount of remittances from these workers constituted the amount of $440
billion in 2010 of which the developing countries received $325 billion. Even
though, these remittances show resilience during the global economic crisis
as fell by 6 Percent and afterward they recovered soon (World Bank, 2011).
Remittances work like an energy for the developing economies as they
help to build the financial sector, improving the living standard of the
households, bring them out of the extreme poverty, and prepare them against
the income shocks as well. The changing behaviour of the households leads
an increase in the demand of the goods and services, which in turn boost up
the entrepreneurship environment in the economy, create the employment
and promote higher economic growth [Orozco, M. (2007), Khan, A. (2009)].
No doubt, remittances are important for the economic growth and
development, they are also play a vital role in promoting the entrepreneurship
development for the households who receive the foreign earning. The recipient
households are more tend to invest the amount of remittances in
entrepreneurial activities (i.e. to initiate a business) which in the long run
leads economic growth in the economy [Yang, D. (2004), Dornates and Poze
(2006), Adams, R. H. (2007), Vacaso, C. (2010)]. Entrepreneurship is one of the
important engines of growth for Pakistan. The pity is that the entrepreneurial
activities remain limited in Pakistan since its independence. It is believed that
entrepreneurship cope with the new economic, social and environmental
challenges. Pakistan ranks at 85th
among the 183 countries in the world with
respect to ease of doing business in 2010 and 105th
in 2012. To highlight the
importance of the entrepreneurship development, it believed that without it
the sustainable growth is not possible [Hussain et al (2006), Orozco, M. (2007),
Naude (2008), EIP (2009), World Bank, (2012)]. This study measures the role
of remittances in entrepreneurship development and highlights the importance
of remittances as the best source of capital for entrepreneurship development.
As for Pakistan, remittances have become the second best source of foreign
reserve and foreign investment. For the last one decade, Pakistan has
experienced a high growth in its remittances than any other of its neighbor
country and they have grown by 22.6 percent in 2006-07, 19.5 percent in
2007-08, 23.9 percent in 2009-10, and 23.8 percent in 2010-11 from $7.3 billion
to $9.1 billion and 25.8 percent during the 2011-12. Due to the high trend of
28/ Remittances and Enterpreneurship Development
remittances in Pakistan, it ranked the fifth largest remittances recipient country
in the world by 2011. This recent per-excellent growth in remittances attributed
to the unmatchable efforts of government to renovate the remittances from
informal to formal channels. Since the launch of Pakistan Remittances Initiative
(PRI) in 2009, the remittances received from the formal channel amounted up
to 91 percent in 2011-12 from the 75 percent in 2009-10 (Economic Survey,
Figure 1.1: Remittances Inflow to Pakistan US$ Million
Source: World Bank, 2011
In Pakistan most of the people are involved in inherited business i.e.
Father’s business and people mostly imitate in business adoption (Haque 2007).
The New Growth Framework for Pakistan confirmed that entrepreneurship
is an engine for the economic growth and development but still its growth is
stagnant (Haque, 2011). Entrepreneurship in Pakistan, remains limited and,
the most problematic factors for doing business in Pakistan are corruption,
policy instability, crime and theft, tax regulation. (Global Competitiveness
Report 2011-12). Due to these factors, the environment of doing business is
impacted a lot and need to control them for the entrepreneurship development.
The self-employed in Pakistan are 15.6 million people (hold own business) in
1999, 16.7 million in 2005-06 and 18.3 million in 2009-10 (Human and Labor
Force Statistics, 2000-10). These facts also confirmed that the number of self-
employed people is increasing over the time.
Ever increasing remittances become the economic lifeline of Pakistan and
the second largest source of foreign exchange earnings and foreign investment.
It is clear remittances play an important role in entrepreneurship development
and prove a good source of capital to finance consumption, construction,
savings and investment (i.e. human capital, Manufacturing, Agriculture and
small businesses) [Woodruff and Zanteno (2001), Yang, D. (2004), Dornates
and Poze (2006), Adams, R. (2007), Vacaso, C. (2010)]. However, in case of
Pakistan, with this fact that Pakistan stands at 5th
world’s largest remittances
recipient countries, the remittances are not used in a productive way. Instead
the major amount of these remittances are used for the consumption,
Jubran Khalid / 29
construction, travelling etc. [Hussian, et al (2006), Haque, (2007), Chemin, M.
(2008), Economic Survey 2011-12]. Therefore, it is really an alarming situation
for Pakistan and it needs to cope with the problems in the way of low
entrepreneurship growth, as the going era is entrepreneurship-based. Gujrat
is very prominent with respect to international migration as the 24.3 percent
households receive remittances and this study measures the role of remittances
in entrepreneurship development in Gujrat for the recipient households.
International remittances and its impact on the migrants’ households is
still a hot debate and much of the literature has been conducted to explain
Massey et al (1987) explores the notion of remittances impact on the
entrepreneurial activities and business formation. They uses the data collected
among thirty Mexican communities and U.S. destination areas and estimate
the model including uses of personal resources, household assets, community
characteristics, local market potential and macro condition of market to predict
the odd of business formation. The results tell that the receipt of U.S. earning
by the households significantly increased the odd of business formation and
Lopez, J. R. and Seligson, M. A. (1989) made a study with respect to
check the impact of remittances on the small business development in El
Salvador. The study uses the purposive sampling for the collection of the
qualitative information and sample size 200 was to be covered. Businesses are
differing with respect to type as repair shop, auto shop, vendors, restaurants
etc. The results are differing to Mexico as the residents of El Salvador are more
likely to invest in businesses than that of Mexicans. Finally, the study concludes
that half of the respondents report that they invest the amount of remittances
in business development.
Blanchflower, D. G. and Oswald, A. J. (1998) explain the factors which
affect the supply of the entrepreneur in the society to take part in the
entrepreneurial activities or not. The authors find that the availability of credit
and inheritance facilitate an individual to be self-employed. The study uses a
survey comprises of interviews of the respondents selected by the random
sampling design and Probit model is used as modeling technique. Many of
them who report that they don’t own a business is due to lack of capital.
Wit et al (2000) explains the successful determinants of entrepreneurship.
The study uses the data from EIM firm survey. It includes the panel data on
the people who started a business in 1994. The success of the business depends
on the profits, employment created by the entrepreneur and the survival period
of enterprise. The multiple regression technique is used for the analysis. The
results find that the duration in business and profit are important
30/ Remittances and Enterpreneurship Development
determinants of a successful entrepreneurship.
Woodruff and Zanteno (2001) examine that credit plays a vital role in
small scale enterprise. The secondary data is used on enterprise taken from
the Mexico National Urban Employment Survey 1998. The data shows that
access to capital from remittances have significant effect on the invested capital.
The regression findings also suggest that access to remittances determined
the decision to start an enterprise. The results show that almost 20 Percent
remittances are responsible in the invested capital in micro enterprises in urban
Yang, D. (2004) uses the four survey data in his study as LFS, SOF, FIES
and APIS for impact analysis of remittances on the households. The study
finds that remittances income helps the households to overcome the credit
constraints, which hamper the investment. Favorable migrant shocks improve
the migrants’families’child schooling, reduce child labor, increased expenditure
on education and durable goods ownership. Further, the author found that
better overseas economic opportunities provide help to the source households
to invest and encourage them to engage themselves in riskier entrepreneurial
Haas, H. (2005) in his study in Morocco checks the impact of migration,
remittances on economic development on the sending region. He conducts a
survey for qualitative data among the sampled 507 non-migrant, internal
and international migrants’ households in Moroccan Todgas Oasis. The study
concludes that international migration and remittances significantly contribute
to economic development and their standard of living. The migrants’
households are able to invest more than that of non-migrants in housing,
agriculture and other enterprises.
Hussain et al (2006) argues that over the time period remittances affect
the consumption and production in Pakistan. The most affected sectors in
Pakistan are: construction, transport, communication and consumer goods
industries. The people have set up small businesses are trade like: motor shops,
grinding flour mills, cement agencies, tailoring, bakries and fertilizer shops
especially those who received remittances. Remittances also used in the real
Hass, H. (2007) elaborates the relationship between international
remittances and various direction of socio-economic development in developing
countries. He cites several studies, which indicate that remittance promotes
access to self-employment and increases the investment in shape of small
businesses. In the absence of well functioning credit markets, remittances
provide migrants and their families’ financial resources to invest in enterprises.
Remittance essentially has a substantial potential to reduce poverty indirectly
through multiplier effects generated by remittances expenditures and
Jubran Khalid / 31
Nude, W. (2008) discusses the entrepreneurship with respect to economic
viewpoint. For this study, a survey was undertaken and found that
entrepreneurship in developing countries remained an under researched
phenomenon. Economic development is the structural phenomenon toward
a modern, technological economy based on the services and manufacturing.
Entrepreneurship has both positive and negative effects on economic
development. High economic growth result in high per capita income. The
policy implication suggests that promoting the entrepreneurship in kind that
in turn promotes high economic growth.
Faridi et al (2010) focuses on the determinants of entrepreneurship in
Pakistan. They use the primary data for it at district level and cover the 494
sampled workers in their interview in district Bahawalpur. For the results
analysis, logistic regression technique is employed and the study concludes
that experience and age of the workers have positive and significant effect on
self-employment. Further education and good health of the individual also
positively related to the decision to start their own business so the Govt.
should provide the good facilities of health especially in rural areas.
Vasco, C. (2010) reveals in his study that migration and remittances are
insignificant for the rural likelihood to own a business. He uses the Living
standard Measurement survey (LSMS) 2005-06 data. Probit model is used for
results. Instead of remittances and migration, he found that education, credit
access and access to services are positively correlated with the probability that
the households would own a business. However, the households who have
at least one member in abroad have more number of family members in
Rehman, M. (2011) checks the economic benefits of remittances from the
migrants to their families in the home country. The data is taken from the
Household survey conducted in Bangladesh and for qualitative data; the
author conducts an interview of the Bangladesh respondents. The survey
consists of 12893 sample but the author took 4427 among them i.e. only those
who were working in Saudi Arabia. The study concludes that only 18 Percent
households use remittances for income generating purposes i.e. doing
Theoretical framework elaborates the possible channels of the selected
variables and their inter-links and how they impact the outcome variable in
their turn. The private sector investment (i.e. Entrepreneurship development)
causes to raise the employment and income level, which in turn promotes
economic growth as well.
32/ Remittances and Enterpreneurship Development
Source: [Lopez and Seligson (1989), Blanchflower, D. G. and Oswald,
A. J. (1998), Woodruff and Zanteno (2001), Ya,ng, D. (2004), Dornates and
Poze (2006), Adams, R. H. (2007), Acosta, Fajnzylber, and López (2008)]
Blanchflower, D. G. and Oswald, A. J. (1998), Shad et al (2006), Vasco, C.
(2010), Massey et al (1987) and, support that if credit is available from financial
institutes, friend and family domestically then more the probability to develop
enterprise. The microfinance plays a vital role in this field and provides credit
to the individuals through they have developed their small businesses and
start earning livelihood.
Woodruff and Zanteno (2001), Cuervo, A (2005), and Faridi, et al (2010)
find that experience in doing business has significant impact on to start a
business as compare to a non-experience holder. It means entrepreneurial
abilities also important in doing a business.
Arif (1999) uses the job in abroad as explanatory variable in his study to
check its probability for entrepreneurship development in the country of origin
by households of the migrants. If an individual is self-employed or engaged
with the entrepreneurial activities in the country of destination then more
the chances that he start business in the country of origin.
Wagner, J. and Sternberg, R. (2002) use contact with the entrepreneurs
in the society in his study and find that it increases the probability that the
individual to become an entrepreneur. As most of us imitate in doing business
and Haque (2007) confirms that individual often imitate in business adoption.
So contact with the entrepreneurs in the society helps them to adopt the
Marital status of emigrant of post migration also affects the decision to
develop the entrepreneurship. Arif (1999) uses marital status of the migrant
in his study and found that being married show a negative association to the
propensity to invest. Faridi et al (2010) also employs the marital status as
variable for the worker finds it an influencing factor in decision to involve in
Jubran Khalid / 33
The study uses the data for analysis, which is collected by holding a
survey in Gujrat. The nature of the dependent variable is binary as the
remitter’s family is asked whether they have initiated any business = 1 and 0
= otherwise. No doubt that different econometric technique can be applied to
this proposed model as Nero-Network technique, Factor analysis etc. but the
study employs the Binary logistics for the analysis as different studies uses
the Logistic regression to estimate such models [Arif, 1999 and Faridi et al
Tahseel Gujrat is selected for this study and this study is based on the
primary data, which is collected by conducting a survey among the selected
population and interviewed them face to face. At first stage, the present study
uses stratified sampling. The data on its union councils and its Mohallahs, is
achieved from the 1998 consensus. The study considers Rural and Urban as
two stratas. At the second stage, due to lacking of proper sampling frame, the
study considers the two clusters as 44 rural union councils and 21 urban
union councils out of total 67 union councils of Tahseel Gujrat. By using the
SPSS software, the number of elements i.e. rural and urban UCs, are selected
from each cluster as 8 UCs from rural and 4 from Urban UCs. It is total of 12
UCs selected the survey to collect the data. As one rural UC covers on average
7 villages while one urban UC covers 10 mohallahs on average. From each
rural and urban selected UCs, two villages and two mohallahs are selected by
using the SPSS software through the simple random technique. Five
respondents are selected from each selected village and mohallah by using the
purposive sampling to fulfill the targeted sample size 120.
On the base of preceding discussion and existing literature such as, Arif
(1999), woodruff and Zenteno (2004), Adams, R (2005) Dornates and Poze
(2006) and Adams et al (2008) the given model is employed to estimate the role
of remittances in entrepreneurship development.
stands for Logit model and the log of odd ratios is linear not only in
explanatory variables but also in parameters.
ENT = Entrepreneurship AREM = Amount of Remittances
EDB = Experience in Doing Business DCA = Domestically Credit
34/ Remittances and Enterpreneurship Development
PMS = Post Marital Status Cont E = Contact with entrepreneur
PAb = Profession in Abroad
Entrepreneurship is used as dependent variable and binary in nature as
1 = the remitter family initiate an enterprise and 0 = otherwise. P if Ent = 1 and
1-P if Ent = 0. The remitter family is asked that they have initiated any business
after migration. Remittances are defined as the amount of remittances received
by the migrant family and used in continuous form in the model. Post
migration marital status of the migrant is used in nominal form in the model
and experience in doing business means the family business experience before
initiating current business and employ in nominal form as 1 = Yes and 2 = No.
The contact with the entrepreneurs in the society is also employ in nominal
form 1 = Yes and 2 = No. Domestic credit availability facility is used in nominal
form in the model 1 = Yes and 2 = No. Profession in abroad is used in nominal
form in the model 1 = Business man and 0 = otherwise. They are employed as
independent variables in the model ( Gujrati, 2004)
RESULTS AND DISCUSSION
The reliability statistics of the data is given in Table 1. Cronbach’s Alpha
is the most common measure of internal consistency (reliability). A commonly
rule of the thumb for describing the internal consistency using Cornbach’s
Alpha is as alpha is greater than 0.7.
Table 1 Reliability Statistics
Cronbach’s Alpha N of Items
Table 6.1 is showing the test statistics for the reliability of the data and
the score of Alpha is 0.851 which shows a high level of internal consistency
for our scale with this specific sample.
The descriptive analysis for the respondents is give in table 2 which tells
that for each urban 1.3 rural are available and the mean age is 31 years which
shows that it is 13.119 varying from its mean.
Table 2 Descriptive Statistics of Respondents
Variables N Minimum Maximum Mean Std.
Location of 120 1.00 2.00 1.39 .49
Education of the 120 .00 3.00 1.70 .91
Marital status of 120 1.00 4.00 1.47 .54
Jubran Khalid / 35
Age of Respondent 120 16.00 81.00 31.16 13.19
Member of Family 120 2.00 19.00 7.32 3.12
As for the member of the family, 2 is minimum and 19 is maximum and on
average 7.3 members of the family live in a house.
Table 3 Pre-Migration Descriptive Analysis
Variable N Minimum Maximum Mean Std.
Locality 120 1.00 2.00 1.36 .48
Marital status 120 1.00 2.00 1.27 .45
Age 120 1.00 45.00 24.80 5.77
Education 120 .00 3.00 1.58 .82
Table 3 explains the pre migration descriptive for the emigrants, which
explain that against one urban 1.3 rural are emigrants and their mean age is
24 years which is 5.77 varying from its mean.
Table 4 Post Migration Descriptive Analysis
Variables N Minimum Maximum Mean Std.
Age 120 22.00 60.00 34.60 10.02
Location 120 1.00 2.00 1.42 .49
Education 120 .00 3.00 1.60 .82
Marital status 120 1.00 2.00 1.71 .45
Table 4 shows post migration that the average age of the emigrants is 34 and
against 1 urban 1.4 rural is available. More of the emigrants are married after
their migration as compare to their pre-migration. As for the education, it
remains same for pre-post migration for the emigrants.
DEMOGRAPHIC PROFILE OF RESPONDENTS
Table 5 presents demographic profile of the respondents including their
age, education, marital status, member of the family and family system by
location. Education is highly significant among these variables as the p-value
is (0.001). It means there is significant variation in education level among
rural and urban i.e. rural and urban differ due to their education. Those who
live in urban location are more educated than those who live in rural areas.
36/ Remittances and Enterpreneurship Development
Table 5: Demographics of Respondents
Source: own survey
*shows the significance at 1% level of confidence
Figure 1: Locality
Figure 2: Marital Status
The Figure 1 is showing that 39 percent of the respondents live in rural
area where as 61 percent are living in urban areas. Figure 2 is showing that
the population, which is selected for survey, 45 percent is married and 54
percent are single. However, the 1 percent is who is widower.
DEMOGRAPHIC PROFILE OF MIGRANTS
Migrants’ demographics are given in Table 6 including their education,
= 17.138 df = 3 Sig. = 0.001
38/ Remittances and Enterpreneurship Development
showing that most of the emigrants are single as 72 percent are single and
only 28 percent are married at the time of migration.
BUSINESS DEVELOPMENT AND SOME INDEPENDENT VARIABLES
Table 7 discusses the analysis for some of the independent variables with
respect to the business initiation with the help of remittances. Six out of ten
variables are statistically significant and have significant variation with respect
that do remittances help them to initiate a business? Country of migration
(0.007), family business experience before initiating this business (0.000), contact
with the entrepreneur in the society (0.000), and amount of remittances (0.007)
are significant at 1 Percent level of confidence while domestic credit availability
(0.071), migrant marital status during migration (0.072) are significant at 10
Percent level of confidence.
Table 7: Business Development and Some Independent Variables
Source: own survey
*shows significance at 1% level of confidence
Variables Do remittances help you to initiate a business?
= 12.135 df = 3 Sig. = 0.007
Marital Status of
= 3.230 df = 1 Sig. = 0.072
= 35.884 df = 1 Sig. = 0.000
Contact with Ent*
= 30.316 df = 1 Sig. = 0.000
= 3.269 df = 1 Sig. = 0.071
1500 + above
= 12.023 df = 3 Sig. = 0.007
Jubran Khalid / 39
**shows significance at 5% level of confidence
***shows significance at 10% level of confidence
The p-value (0.007) for the country of migration shows that those
migrants who are residing in the Middle East are 63 of which 25 initiated
their own business with the amount of remittances and 44 are those who
lives in Europe of which 28 has initiated their own business with remittances.
The migrants who are in Europe direct more remittances in initiating the
business than those who are in Middle East. The families who have business
experience use the amount of remittances significantly in initiating the business
after the migration of family member. The p-value (0.007) for the amount of
remittances shows that it is highly significant that those who receive 100-499
thousand rupees yearly as remittances are 68 of which 27 say that they have
initiated a business and 41 say they have used for other purposes. As the
amount of remittances increase from 100-499 thousand, the proportion of
those who don’t spend on business development decrease and they shift the
amount of remittances into business development. Contact with the
entrepreneurs in the society also show positive association to initiate a business
with remittances. Domestic credit availability and marital status shows
significant association with business initiation.
However, four variables, education of the migrant (0.606), duration of
stay in abroad (0.288), profession in abroad (0.181) and age of the migrant
(0.183) show no significant difference in initiating a business. It means that
these variables don’t affect to initiate the business decision significantly i.e.
no significantly association between these variables and initiating a business.
() shows the p-values
ECONOMETRIC ESTIMATION OF THE MODEL
The logistic regression is given in Table 8. In Table 8, the value of Cox
and Snell R-square, value of Nagelkerke R-square and the number of the
cases are also given. The value of Cox and Snell R-square (0.595) shows the
goodness of fit of the model i.e. 60 Percent variation in dependent variable is
explained by the logistic model i.e. the independent variables and the value of
Nagelkerke R-square (0.804) indicates that there is strong relationship of 80.4
Percent between the independent and the dependent variables.
40/ Remittances and Enterpreneurship Development
Table 8: Binary Logistics Regression Analysis of Remittances and
Source: own survey
*shows significance at 1% level of confidence
**shows significance at 5% level of confidence
***shows significance at 10% level of confidence
The odd ratio of amount of remittances is showing that it is not very
much influencing the dependent variable. Family business experience before
initiating the business is highly significant in the model and positively related
with the dependent variable that higher the family experience in business
leads more the probability that they direct the amount of remittance to initiate
an enterprise. The model predicts that the odds of developing entrepreneurship
22.660 times higher for those who have family business experience than those
who don’t have family business experience. The odds ratio of entrepreneurship
development is 4.963 times higher for those who are self-employed
(businessman) in abroad than those who are not self-employed. The odds of
entrepreneurship development show that 4.244 times is higher for those who
have domestic credit availability than those who don’t have domestic credit
availability. Post migration marital status of the emigrant negatively influencing
the entrepreneurship development as the odds of entrepreneurship
development 0.214 shows that married spend less as compare to those who
are single. However, the contact with entrepreneurs in the society comes out
to be insignificant.
Table 9 is showing that in which field the focus of enterprises is high.
Trading and Agriculture are significant at 1 percent level and there is high
association between these variables and remittances. Those who say that
remittances help them to initiate a trading business are 48 people out of total
Variables Parameters SE Wald Sig. Exp(B)
Contact with Entrepreneur -0.502 0.855 0.344 0.557 .606
Domestically Access to Credit 1.446*** 0.851 2.884 0.089 4.244
Marital Status -1.542*** 0.895 2.969 0.085 0.214
Profession in Abroad 1.602*** 0.895 3.204 0.073 4.963
Family Business Experience 3.121* 0.971 10.324 0.001 22.660
Amount of Remittances 0.0000051909* 0.0000013459 14.876 0.000 1.000
Constant -4.975* 1.092 20.775 0.000 .007
Cox and Snell R-square 0.595
Nagelkerke R-square 0.804
Jubran Khalid / 41
population while 3 say remittances don’t help them to initiate this business
and 72 respondent inform that they don’t have trading business and 13 are
those who say that remittances help them to develop the business other than
Table 9: Remittances and Entrepreneurship
As for the agriculture, 6 respondents report they develop agriculture
with the help of remittances and 0 responses receive by the respondents for
other than agriculture. As for the real estate business, only 5 respondents
give response that remittances help them to initiate real estate business and 0
of others and 115 are those who inform they have initiated a business other
than real estate of which 53 say remittances help them to initiate this business.
Remittances work like energy for the economy and without it the
sustainable growth not possible. The present era is also entrepreneurship
and innovation based. The present study measures the role of remittances in
entrepreneurship development in Gujrat. Including the six independent
variables such as amount of remittances, family business experience, credit
availability, marital status, profession in abroad and contact with the
entrepreneurs in the society, the binary logistic regression is employed to
estimate the model.
The results and findings of the study confirm that there is no association
between amount of remittances and entrepreneurship development but for
those who have family business experience is highly significant in the model
and show positive association with the dependent variable in business
initiation. The other variables also give positive association except the marital
status. The families with business experience shows a highly significant impact
on the entrepreneurship development as its odd ratio shows 22 times higher
to initiate an enterprise than those who don’t have business experience.
Likewise, the credit availability and profession in abroad also considerably
affect the probability to start a business (Table 8).
Variables Do Remittances help you to initiate a business?
= 66.079 df = 1 Sig. = 0.000
= 6.751 df = 1 Sig = 0.009
= 5.577 df = 1 Sig. = 0.018
42/ Remittances and Enterpreneurship Development
Table 9 gives the glimpses of the entrepreneurship development and fulfills
the second objective of the study as more of the respondent response that
they have directed more of the amount of remittances to initiate the trade-
base business as shop of mobile, grocer, cycles, oil agency, poultry farm, etc.
as compare to the agriculture and real estate businesses. So, the study concludes
that people develop enterprises more in trading field than any other.
In short, the entrepreneurship works like the software for the economy
but due to some problems like policy instability, tax regulations, legal insecurity,
market failure and poor access to credit prevent the migrants’ households to
take risk of investing the money in entrepreneurship development.
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46/ A Study of Success factors.............. Expansion of a Business
ISSN NO. 2394-8965, GJMMS
VOL -1, Issue -1, JAN- MAR -2015
ASTUDYOFSUCCESS FACTORS IN INTERNATIONALEXPAN-
Dr. Munawwer Husain
Visiting Associate Professor School of Business Management
College of Business University Utara Malaysia
Studies have been made on how companies use the Internet as a tool in
their expansion strategy, however an overlooked field has been how Internet
companies expand their business internationally. Varying generality has been
identified within these areas, with the organizational structure, marketing
and sales, and economic factors being the most standardized amongst the
case study subjects. the results can be used as an example of general success
factors in international expansion by other Internet-service companies.
KEYWORDS: SUCCESS FACTORS, INTERNATIONAL EXPANSION, MARKETING STRATEGIES
The Internet has enabled international expansion possibilities for business
which before only was limited to those of certain organization size and
financial strength. The structural IT-development within the last decade and
the break-through of the Internet has had an extensive impact on global
commerce. The Internet is one of the fastest growing communication channels
in the world (International Telecommunication Union 2008) with a regular
estimate of almost 1.6 billion user (Internet World Statistics 2009) . The Internet
has set new standards for communication and rationalized information sharing
peer-to-peer. A large number of new business models have been invented
through the use of Internet, as well as creating a new market space for all
modern businesses of today. The internationalization is a key process for
Internet companies although there are several barriers including geographical-
and cultural factors depending on the country expanded to. Variations can
therefore be required in the service delivery as well as organizational structure.
Also different countries require specific marketing and sales strategies as well