Psychological empowerment of employees for

International Journal of Law and Management Psychological empowerment of employees for competitive advantages: An empirical study of Nepalese service sector Dhruba Kumar Gautam, Sunita Bhandari Ghimire,

Downloaded by Professor Dhruba Gautam At 19:13 10 August 2017 (PT)

Article information: To cite this document: Dhruba Kumar Gautam, Sunita Bhandari Ghimire, (2017) "Psychological empowerment of employees for competitive advantages: An empirical study of Nepalese service sector", International Journal of Law and Management, Vol. 59 Issue: 4, pp.466-488, https://doi.org/10.1108/IJLMA-03-2016-0035 Permanent link to this document: https://doi.org/10.1108/IJLMA-03-2016-0035 Downloaded on: 10 August 2017, At: 19:13 (PT) References: this document contains references to 137 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 62 times since 2017*

Users who downloaded this article also downloaded: (2017),"Improving the turnover intention of tourist hotel employees: Transformational leadership, leader-member exchange, and psychological contract breach", International Journal of Contemporary Hospitality Management, Vol. 29 Iss 7 pp. 1914-1936 https://doi.org/10.1108/IJCHM-09-2015-0490 (2017),"Purchase decision: does too much choice leave us unhappy?", European Journal of Marketing, Vol. 51 Iss 7/8 pp. 1248-1265 https:// doi.org/10.1108/EJM-01-2015-0022 Access to this document was granted through an Emerald subscription provided by

For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.

About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download.

The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/1754-243X.htm

IJLMA 59,4

466


Received 31 March 2016 Revised 31 March 2016 Accepted 29 April 2016

Psychological empowerment of employees for competitive advantages An empirical study of Nepalese service sector Dhruba Kumar Gautam and Sunita Bhandari Ghimire Faculty of Management, Tribhuvan University, Kathmandu, Nepal

Abstract Purpose – This paper aims to assess the existing situation of psychological empowerment to employees and explore the relationship between psychological empowerment and competitive advantages in service sector of Nepal.

Design/methodology/approach – The study followed descriptive cum exploratory research design. Data collected through structured questionnaire based on Menon’s three-component model and Wright’s fourcomponent model used to measure psychological employment and competitive advantages from employees of banking and hospital sector.

Findings – Psychological empowerment of employees in service sector is significantly different between public and private organizations. Even though the factors that are extracted are quite different than of Western practices, psychological empowerment has positive and significant impact on the competitive advantages. Research limitations/implications – This study is mainly based on service sector of Nepal: Banking and Hospital. Practical implications – This paper is useful to academicians and practitioners seeking to develop psychological empowerment to achieve competitive advantages in their organizations and help to add values in people management areas particularly in South Asian corporations.

Originality/value – This is perhaps the very first investigation of its kind in the Nepalese context. Keywords Nepal, Resource based view, Psychological empowerment, Competitive advantages Paper type Research paper

International Journal of Law and Management Vol. 59 No. 4, 2017 pp. 466-488 © Emerald Publishing Limited 1754-243X DOI 10.1108/IJLMA-03-2016-0035

Background Over the past two decades, “empowerment” has attracted the interest of many organizational theorists and management practitioners (Argyris, 1998; Conger and Kanungo, 1988; Thomas and Velthouse, 1990; Wall et al., 2004; Spreitzer, 1995; Menon, 2001; Choong, 2011; Baird and Wang, 2010) through which tremendous potential of competitive advantages can be accomplished. Empowerment is an effective way of developing human resources (HRs) to increase the competitive advantage of an organization. It is a process of enhancing feelings of self-efficacy among organizational members (Lee and Koh, 2001) to take an independent autonomous decision on how to deal with a particular situation. Psychological empowerment is creating a stage in which motivational construct manifested in cognitions reflecting an employee’s orientation to his or her work roles (Berman, 1995; Byham, 1992; Laschinger and Finegan, 2005). It measures the extent to which employees perceive that they are allowed to use their own initiative and judgment in performing their jobs (Thomas and Velthouse, 1990). It is a powerful management tool, which is used to


exchange the shared vision that the organization expects to materialize into common goals. Psychological empowerment is a state of mind (Li et al., 2011; Long, 1996; Nick et al., 1995). An employee with an empowered state of mind experiences feelings of: control over the job to be performed; awareness of the context in which work is performed; accountability for personal work output; shared responsibility for unit organizational performance; and equity in the rewards based on individual and collective performance (Conger and Kanungo, 1988; Forrester, 2000; Osborne, 1994; Peterse et al., 2010; Singh and Dixit, 2011). It is an enabling process that occurs from a joint allocation of possessions and prospects that boost decision-making competencies to accomplish change. Today, organizations have to operate in a very turbulent field. Decisions are to be made on the spot, which demands highly competent employees (Wang and Lee, 2009). In addition to the confidence, knowledge and skills are must to undertake increasingly new challenges and assignments. For this, employees need opportunities for growth and career development. Employee empowerment as ongoing process improves the relationships at work, which ultimately improves the effectiveness of the organization and leads to enhancing productivity, performance and job satisfaction (Sundbo, 2009; Wing, 1996). Therefore, this study is concentrated in banking and hospital sector to find out the answers on the following questions: What is the real situation of psychological empowerment in service sector organizations? What factors are given importance for psychological empowerment in service sector of Nepal? What is the relationship between psychological empowerment and competitive advantage in service sector organization? What are the elements essential for increasing competitive advantages in perceptions of employees? To explore answers on these questions, the paper is designed into six sections: literature review on psychological empowerment and competitive advantages; Nepalese context; research design; analysis and interpretation; and discussion and conclusion. Literature review Psychological empowerment Psychological empowerment is the basis of cognitions that affected an employees’ intrinsic motivation, namely, meaning, competence, self-determination and impact (Thomas and Velthouse, 1990). Conger and Kanungo (1988) believe that it is the process of realizing the knowledge and experience for being motivated in which employees themselves possess and increase employees’ self-efficacy, thereby eliminate employees’ sense of powerlessness. The first empowerment for cognition is meaningfulness that concern the value of a work goal or purpose, judged in relation to an employee’s own ideals and standards (Thomas and Velthouse, 1990; Spreitzer, 1995, 1996, 2008). It refers to congruence between requirements of a work role and employee’s beliefs, values and behaviors (Spreitzer, 1995). The second empowerment cognition is competence. It is an employee’s belief in his or her capability to perform task activities skillfully when he or she tries (Thomas and Velthouse, 1990). Bandura’s (1997) self-efficacy concept reflects this competence dimension. Selfdetermination, the third empowerment cognition, involves causal responsibility for a person’s actions. It is the employee’s perception on the autonomy in the initiation and continuation of work behaviors and processes. Finally, impact is the fourth empowerment

Psychological empowerment of employees

467

IJLMA 59,4


468

cognition. It reflects the degree to which an employee can influence strategic, administrative or operating outcomes at work (Conger and Kunango, 1988). Perceived control (PCO), perceived competence (PCM) and goal internalization (GI) are the elements of psychological empowerment which are main issues of this study. PCO is taken as an internal urge or drive to influence and control others. These internal drives have been variously referred to as the power motive or need for power striving for personal causation and intrinsic motivation to feel competent and self-determination. Empowered employees feel confident and in control of their environment (Menon, 2001). Empowerment strategies such as delegation, increased participation and providing information and strategies (Kanter, 1983a, 1983b) can lead to a sense of PCO. Two element in Thomas and Velthouse’s (1990) formulation-impact and choice also reflect the importance of PCO for psychological empowerment (Menon, 2001). Another element of psychological empowerment is PCM, which refers to selfefficacy as “beliefs in ones capabilities to mobilize the motivation, cognitive resources and course of action needed to meet given situational demands” (Wood and Bandura, 1989). Self-efficacy affects the choice of behavioral settings and initiation of effort. People tend to avoid situations that they believe would exceed their coping skills. On the other hand, they get involved in activities that they believe to be within their power to handle. If follows that a sense of competence is essential for psychological enabling (Bandura, 1977). PCM is an underlying theme of majority of empowerment research. Enhancing self-efficacy beliefs is the cornerstone of Conger and Kanungo’s (1988) empowerment strategy. Research in the leadership tradition also identifies competence as a critical dimension of empowerment. PCM is also a major component of Thomas and Velthouses’s(1990) model of empowerment. The next issue of psychological empowerment is GI which is the task of organizational leadership practices such as visionary and inspirational leadership, charismatic leadership (Conger and Kananugo, 1988) and, more generally, transformational leadership to transform the beliefs and attitudes of employees in line with the organization’s mission and objectives (Menon, 2001). Feeling of significance, community and enjoyment reflect the appeal of ideas and GI. Leaders formulate and articulate future goals that serve to energies and hence empower subordinates to the extent that these goals are internalized (Kanungo and Mendonca, 1996; Menon, 2001). Castro et al. (2008) take the basis for conducting the research on transformational leadership and followers’ attitudes taking psychological empowerment as the mediating factor found that psychological empowerment mediates between transformational leadership and the attitudes of followers with respect to general job satisfaction and affective commitment to the organization. Competitive advantage through psychological empowerment Competitive advantage is an organizational capability to perform in one or many ways that competitors find difficult to imitate now and in the future (Kotler, 1997; Kotler, 2000). Nevertheless, Porter (1985) recognized competitive advantage as a strategic goal; that is a dependent variable and the reason behind this is that the good performance is related to achieving a competitive advantage (Read and Defillipi, 1990; Mata et al., 1995; AI Rousan, 2009; Agha, 2012; Schuler and Macmillan, 1984; Swiercz and Spencer, 1992). Others see competitive advantage as an ability to produce products or offer services different to what competitors do (Lado, 1994; Boxall, 1998), by utilizing the strengths that organizations possess so as to add value in a way that competitors find it difficult to imitate (Pitts and Lei, 1968). Barney (1991) suggests that in order for a resource to


qualify as a source of sustained competitive advantage, the resource must add value to the firm, it must be rare, it must be inimitable and it must be non-substitutable. Wright et al. (1994) has shown that human resources meet Barney’s criteria for being a source of sustainable competitive advantage. Coff (1994) and Pfeffer (2005) argue that human assets are a key source of sustainable advantage because of causal ambiguity and systematic information, making them inimitable. When a firm is implementing a valuecreating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy, then we can say the firm has a sustained competitive advantage (Barney, 1991). Kahreh (2011) investigated the impact of employee’s empowerment on gaining sustainable competitive advantage for the organizations in the financial service sector in Iran. Results of data analysis have shown that employee’s empowerment has high positive affect on the competitive advantage and also positive affect on the main dimensions of the competitive advantage for the organizations that activated in the services sector. Research carried out by Yukl et al. (2006) identified meaningfulness, competence, choice and impact as the four variables of psychological empowerment during their research. They found that to be sustained, empowerment needs to be a part of the long-term strategy of the organization. It enhances employees’ sense of personal power and allows them to delight their customers through commitment, quality on products and services, efficiency, responsiveness, synergy, management leverage and increased competitiveness in the global marketplace (Lashley, 1995). Employees who are fully empowered and communicated with customers in an attentive manner could evoke more customer satisfaction (Sparks et al., 1997). Studies of Kazlauskaite et al. (2006); Greasley (2005); Hoare and Butcher (2008); Boudrias et al. (2009); Colwell et al. (2009) and Yang and Choi (2009) concluded that employee empowerment can contribute a lot toward business growth and development through customer satisfaction. Conger and Kanungo (1988) accept empowerment as a motivational concept and define empowerment as the improvement of employees’ self-competence. It is accepted that people with high achievement motivation have also strong instincts of achieving individual and organizational success, being result-oriented, making the difference, strong determination and being resolute (Epstein and Harackiewicz, 1992). Studies have also shown that people who have high achievement motivation are more creative, have a higher tendency to take risks and are more eager in attempting to take up hard tasks (Spence et al., 1989). The major sources of competitive advantage of service sector will lie not in new technology but largely in the dedication, the quality of the commitment and competence of the workforce (Gronoos, 2001; Looy et al., 2003). The results of the human capital energy and creativity are the company’s most important resource. To be successful in today’s business environment, companies need the knowledge, ideas, energy and creativity of every employee, from front-line workers to the top-level managers in the executive suite (Argyris, 1998; Bogg, 1995) which is possible only through psychological empowerment. Spreitzer (1995) built upon Thomas and Velthouse’s (1990) model and validated a measure of psychological empowerment. Menon (2001), on the basis of the review of literature and mainly the work of conger and Kanungo as well as Thomas and Velthouse, identified three main dimensions of the experience of power as the root of psychological empowerment underlying the empowerment process as: (1) power as PCO; (2) power as PCM; and (3) power as being energized toward achieving valued goals (Table I).


469

IJLMA 59,4

Author (Year)

Objectives/findings

Kanter (1979)

Individual attitudes and behaviors were shaped primarily in response to their positions within an organization Sustained competitive advantage is achieved through an analysis of a firm’s external market position but through a careful analysis of its skills and capabilities People encompass the general RBV assumptions of value, rareness, inimitability and non-substitution Develop and validate a multidimensional measure of psychological empowerment Research adds clarity to empowerment research by explicitly defining empowerment as a cognitive state To be sustained, empowerment needs to be a part of the long-term strategy of the organization Analysis showed that employees’ empowerment have highly positive impact on the competitive advantage for the organizations that are related to service sector The effective management of people in organizations is a driving force in the transformation process that enhances the achievement of a competitive advantage, which sets the enterprise ahead of others Self-determination and impact have positive relationship with the organizational commitment, whereas meaning and competence do not have significant positive relationship with the organizational commitment

Barney (1991)

470

Wright et al. (1994) Spreitzer (1995) Menon (2001) Yukl (2006)


Kahreh et al. (2011)

Table I. Previous study on empowerment and competitive advantages

Inyang (2011) Ambad (2012)

Nepalese context Although economic liberalization process begins in Nepal from the mid-1980s, the economy was regulated till the end of this decade. After the restoration of democracy in 1990, it has been recognized that the social, economic and political empowerment of female employees and backward ethnical groups along with others are essential for sustainable development in all areas of life. Even though some policies and programs have been formulated to address empowerment and development issues and problems in various ways at national as well as local levels, because of the absence of effective mechanisms and political commitment to implementing them, their concerns and needs tend to be marginalized and lost during the course of implementation. Government efforts to encourage private investors for the investment and for the maximum utilization of managerial and technical skills, modern technology and foreign capital were not responded positively within these 20 years because of politically instability (Gautam, 2015). In Nepalese corporations, utilization of human capital is least prioritized (Agrawal, 1999), training is not regarded as an investment in human resources (Adhikari and Gautam, 2011), strategic management of human capital is at an infant stage (Cranet, 2005; Adhikari and Gautam, 2007) and the process of indoctrination is very poor (Baniya, 2004). It is believed that the bottom-line result of managing human resource is the performance. Therefore, the main concern of managing people in organizations is to raise performance of employees and subsequently performance of the organization. As Schuler and Jackson (1987) believe on bundle and synergetic effect of Human Resources (HRs) practice to raise organizational performance, there is a strong influence of social, cultural, economic and political factors on empowering policies and practices to the employees (Khadka, 2008). Many researches, therefore, also have exerted their concerted effort to examine impact of contextual factors on human resource empowerment for effective HR practices for organizational performance (Adhikari, 2010), Gautam and Davis (2007), Poudel (2009), Adhikari (2011), Gautam (2015). Besides many external factors, Nepalese business leaders now faced a number


of challenges internally. So, they have to take initiatives to raise capability of employees, making them ready to provide delivery to cope with external challenges (Gautam, 2015). Therefore, Adhikari (2010) argued that to implement programs for human development in Nepalese organizations, effective teams following a holistic approach to navigate organizations around the various obstacles need to be raised for competitiveness. Based on these scenarios of Nepalese context, this study uses well-grounded theories to measure the relationship between empowerment and competitiveness with resource-based approach to human resource management. The findings of this study will contribute to the discussion about contextualizing employee empowerment psychologically, adding further weights to the growing body of literature. Research questions This study will examine the employee empowerment practices of Nepalese service sector and show the relationship between psychological empowerment and competitive advantage. The main hypothesis for this study is that “firms that empower their employees have significant positive relationship on competitive advantages of the organizations”. Followings are the research questions emerged based on literature related to empowerment and national-specific factors: RQ1.

Is there significant relationship between psychological empowerment of employees and competitive advantage in hospitals and commercial banks of Nepal?

RQ2. Is there significant difference between competitive advantages across the public and private hospitals and commercial banks when employees are psychologically empowered? RQ3.

Is there a significant relationship between employee empowerment and competitive advantages because of age of hospitals and banks across the public and private?

RQ4.

Is there a significant relationship between employee empowerment and competitive advantages because of marital status of hospital employees and bank employees?

Research design This study is based on descriptive cum exploratory research design following structural questionnaire-based quantitative and co-relational interpretation. Competitive advantage is considered as the dependent variable, and factors for psychological empowerment are considered as the independent variables. Demographic factors (age, gender) are considered as the control variable. These variables and questions are based on the study of Menon’s (2001) three-component and Wright et al.’s (1994) four-component models. Five-point Likert scale questionnaire (5 = strongly agree to 1 = strongly disagree) has been used for each of the statements. The three components of psychological empowerment (PCO, PCM and GI) is represented by nine items. The four components of competitive advantage are based on resource based on Barney (1991) view (value added, inimitable, rare and non-substitutable) represented by 12 items. This study assumed that commercial banks and hospitals of Kathmandu valley which have passed more than five years of operation are taken as population. Four organizations from the banking industry and four from the hospital industry are selected for study through judgment


471

IJLMA 59,4

472

sampling including public and private. Employees working in these organizations are defined as the sample population from which 240 employees have been selected as samples. Only 223 respondents responded, which comes around 93 per cent of total selected respondents, in which 116 respondents responded from banking sector. Data collected through questionnaire are inserted into SPSS to test the significance of the result, F test and R2 test and factor analysis. To check the reliability of the items and its factorial groups, internal consistency analysis was performed. As suggested by Nunally (1967), value of Cronbach’s alpha more than 0.6 is sufficient value in an exploratory research, which indicates that all items and factorial groups of this research are sufficiently reliable measures.


Analysis The descriptive statistics indicate that most of the respondents agree that employee empowerment program plays a key role in increasing the competitive advantage of the organizations. New product/service development, quality management in human resource, encouragement by supervisor/manager for new ideas are other areas where respondents have shown high agreement for increasing the competitive advantage of the organizations. For the analysis, factors are extracted on principal component factor analysis method. One item – capabilities required – is to be dropped during the course of analysis due to cross loading. Cronbach alpha after dropping of variable is 0.697 and the Bartlett test is 0.697, which is significant as the p value is 0. These values are for psychological empowerment as a whole. Values are acceptable for further analysis as they are greater than 0.6. Three factors are extracted as on the conceptual framework whose Cronbach alpha and Kaiser-Meyer-Olkin (KMO) test are acceptable and are significant (Table II).

Table II. Factor analysis for competitive advantage

Cronbach alpha after dropping items

KMO and Bartlett’s test

Significance 0.000

Items

Factor

Higher quality people than competitors Development of unique intellectual capital Employees market value Cost-effective human resources Competent and skilled human resourcesa Attraction of competent and skilled persons Investment of organization in careera Technological support to employees Willingness to achieve the goals at any cost Employees add value Organization culture and valuea Employees are key for customer satisfaction

Rare resource

0.713

0.715

In-imitable resources

0.734

0.723

Non- substitutable resources

0.742

Resources add value

0.657

Note: aItems with are dropped items for analysis


Three items are to be dropped during the course of analysis. Cronbach’s alpha after dropping of variables is 0.734 and the Bartlett test is 0.718, with high level of significance as the p value is near 0. Four factors are extracted from the factor analysis whose Cronbach alpha are greater than 0.6, so are acceptable for further analysis (Table III). After the extraction of the different variables and correlations between different variables calculated, regression is done to find out the relationship between competitive advantage and psychological empowerment. Regression between above-stated variables is calculated to find out the impact of psychological empowerment on competitive advantage. Competitive advantage is calculated after the sum of its variables; resources add value, resources are in-imitable, resources are rare and resources are non-substitutable. Competitive advantage is taken as the dependent variable and the variables of psychological empowerment are taken as independent variables.


473

Psychological empowerment and competitive advantages Step wise regression is done to find out the impact of psychological empowerment on competitive advantages. Variables of psychological empowerment are PCM, PCO and GI, whereas variables of competitive advantage are rare, added value, inimitable and nonsubstitutable. Model for regression is stated in the following: Y ¼ b0 þ b1 x1 þ b2 X2 þ : : : þ bk xk Competitive advantage ¼ b0 þ b1 GI þ b2 PCM þ b3 PCO

A. Perceived competence 1. Skills and abilities 2. Competence to work effectively B. Perceived control 1. Influence the way work is done 2. Influence decision in department 3. Authority to make decisions C. Goal Internalization 1. Inspired by achievement 2. Inspired by goals 3. Enthusiastic on organization objectives D. Rare resources 1. Higher quality people than competitors 2. Employees market value 3. Development of unique intellectual capital E. In-imitable resources 1. Cost-effective human resources 2. Attraction of competent and skilled persons F. Non-substitutable resources 1 Technological support to employees 2. Willingness to achieve the goals at any cost G. Resources add value 1. Employees add value 2. Employees are means to customer satisfaction

1 and 2 0.651**

–

–

1 and A 2 and A 0.906** 0.911**

–

1 and 2 2 and 3 1 and 3 1 and E 2 and E 3 and E 0.614** 0.601** 0.547** 0.714** 0.804** 0.745** 1 and 2 2 and 3 1 and 3 1 and C 0.601** 0.543** 0.517** 0.654**

2 and C 0.664**

3 and C 0.843**

1 and 2 2 and 3 1 and 3 1 and D 2 and D 3 and D 0.663** 0.592** 0.647** 0.867** 0.765** 0.757** 1 and 2 2 and 3 0.665** –

1 and 3 –

1 and E 2 and E 3 and F 0.865** 0.847**

1 and 2 2 and 3 0.656**

1 and 3

1 and F 0.769**

1 and 2 2 and 3 0.689** –

1 and 3 –

1 and G 2 and G 3 and G 0.863** 0.863** –

2 and F 0.761**

3 and F

Note: **During the reliability analysis, items which are low than the Cronbach alpha standard are dropped

Table III. Correlation between the items and with their factor

IJLMA 59,4


474

Predictors: (constant), GI Predictors: (constant), GI, PCM Predictors: (constant), GI, PCM, PCO Dependent variable: competitive advantage – CA Here, PCO = perceived control; GI = goal internalization; PCM = perceived competence; and CA = competitive advantage (Table IV). Value of R, R2 and adjusted R2 is noted to be increasing as the researcher goes on increasing the predictors as the independent variables. After entering all the variables, value of R, R2 as well as adjusted R2 are greater than 0.6. This tells us that the independent variables are capable of defining the dependent variable which is competitive advantage. Analysis of variance (ANOVA) table shows that variables of psychological empowerment are defining the dependent variable competitive advantage significantly, as the value of F is high and the p value is 0.000. Every additional 1 percentage increase in GI is responsible for increasing 12 percentage in competitive advantage of the organization, provided the effects of other variables are held constant. Employees perceive that the organizational goals achievement will lead toward the fulfillment of their goals or interest; this will increase the competitive advantage of the organization proves the positive impact of psychological empowerment on the competitive advantage of organizations (Table V). Every additional 1 percentage increase in PCM is responsible for increasing nearly 9 percentage in competitive advantage of the organization, provided the effects of other variables are held constant. If the employees perceive that they are competent in doing their works, competitive advantage for organizations can be created. Similarly, every additional 1 percentage increase in access in information with training is responsible for increasing 10 percentage in competitive advantage of the organization, provided the effects of other variables are held constant. Employees if are empowered by providing the needed information for carrying out their jobs, they can provide competitive

R

R2

0.542a 0.634c 0.797f

0.294 0.402 0.635

Particulars

Table IV. Regression and ANOVA

1 2 3

Model summary Adjusted R2

Standard error of the estimate

0.278 0.392 0.627

1.0679 0.98321 0.80669

Unstandardized coefficients Particulars B Standard error

Standardized coefficients Beta t sig

Constant GI PCM PCO

0.804 0.585 0.634

0.889 0.121 0.087 0.089

0.333 0.078 0.081 0.068

9.255 8.457 6.237 7.756

0 0 0 0

Collinearity statistics Tolerance VIF 0.706 0.598 0.365

1.416 1.672 2.739

Table V. Coefficient table with Note: All the three variables have shown the impact on the dependent variable which is a competitive collinearity statistics advantage


advantage to the organization. Every additional 1 percentage increase in PCO is responsible for increasing 8 percentage in competitive advantage of the organization, provided the effects of other variables are held constant. If the employees think that they have authority to make decisions and can influence decisions made in the organization as well as influence the process in which works are done, competitive advantage can be increased. Impact of the variable GI is the highest one where as the PCO is the lowest one. Impact of other variables seems to be medium. There is no problem of multi-collinearity in the model since variance inflation factor (VIF) values are close to unity. To evaluate whether the model fulfills its assumptions or not, different other tests are done by the researcher which is discussed below (Figures 1 and 2) (Table VI). Histogram exhibits that residuals are normally distributed. Normal p-p plot also exhibits that the residuals are normally distributed (Figure 3). The null plot indicates random pattern. There is no problem of heteroscedasticity. One sample Kolmogorov-Smirnov test shows that the error terms are normally distributed since the p-value of the test is 0.263 > 0.05.


475

Figure 1. Histogram, graph showing normal distribution of data

IJLMA 59,4


476

Figure 2. Normal pp plot of regression standardized residual

Particulars N Normal parametersa,b Mean SD

Table VI. One-sample KolmogorovSmirnov test

Most extreme differences Absolute Positive Negative Kolmogorov-Smirnov Z Asymp. significance (2-tailed)

Unstandardized residual 222

0.0000000 0.89078768

0.068 0.041 0.068 0. 78 0.263

Note: a0.05; b0.1

Ownership pattern on psychological empowerment and competitive advantages As the F value (Table VII) is significant, there is at least one type of organization whose mean competitive advantage is different from other types of organization. To know the real situation, post hoc analysis is done and result is shown below. The result of post hoc analysis depicts that competitive advantage of private bank is the highest and of the public hospital is the lowest. Mean competitive advantage of public hospital is significantly different from that of private bank, private hospital as well as public bank (Table VIII).



477

Figure 3. Scatter plot, graph showing relation between data

Organizations Regression Residual Total

Sum of squares

df

Mean square

2987.738 1946.609 4934.347

6 215 221

497.956 9.0539

ANOVA F

Significance

54.99

0

Empowerment

Sum of squares

df

Mean square

F

Significance

Between groups Within groups Total

198.006 4415.860 4613.865

3 219 222

66.002 20.164

3.273

0.022

As the F value is significant, there is at least one type of organization whose mean psychological empowerment is different from other types of organization. To know the real situation, post hoc analysis is done and result is shown below. Post hoc analysis showed that there is mean psychological difference in the private bank and public bank, private hospital and public hospital. Mean difference is not seen in 5 per cent level of significance between private bank and public hospital but at 10 per cent level of significance, difference is seen. Age of organization on psychological empowerment and competitive advantages In Table IX, as the p value is 0, tested hypothesis is accepted at 5 per cent level of significance, i. e. there is mean difference in trend of market share coverage between the organizations on the basis of their age. To know the actual situation, post hoc analysis is done. After the post hoc analysis, highest mean of trend of market share coverage is seen in the middle-aged organizations. Significant difference is seen in the middle-aged organization with newly established and old-aged organizations.

Table VII. ANOVA table for testing difference in mean competitive advantage between organizations

Table VIII. ANOVA of psychological empowerment

IJLMA 59,4


478

To test the hypothesis, ANOVA test is carried (Table X). As the p value is 0, tested hypothesis is accepted at 5 per cent level of significance, i.e. there is mean difference in competitive position of organizations in terms of sales between the organizations on the basis of their age. To know the actual situation, post hoc analysis is done whose result is given below. After the post hoc analysis, highest mean of trend of competitive position in terms of sales is seen in the middle-aged organizations where lowest is seen in the newly established organizations. Old organizations’ and middle-aged organizations’ competitive position in terms of sales seems to be significantly different from newly established organizations. Marital status on psychological empowerment and competitive advantages In Table XI, as the p value is high, there is evidence to reject tested hypothesis, i.e. there is no significant difference in mean for competitive advantage in between married and unmarried. Discussions Resource-based view of a firm is resource heterogeneity, which helps to achieve sustained competitive advantage by making the resources valuable, rare, inimitable and nonsubstitutable (Youndt and Wright, 1996; Barney, 1991; Boxall, 1998). Within the SHRM paradigm, there is significant support of the resource-based view as a tool for competitive advantage through analysis of human capital (Barney and Wright, 1998; Becker and Gerhart, 1996; Boxall, 1996, 1998; coff, 1997; De Saa Perez et al., 2002; Jackson and Schuler, 1995; Khatri, 2000; Lado and Wilson, 1994; Mueller, 1996; Schuler et al., 1993; Swiercz and Spencer, 1992; Wright and McMahan, 1992).

Market share

Table IX. ANOVA-Market share coverage

Table X. ANOVA test for different ages of organizations

Sum of squares

df

Mean square

F

Significance


12.680 123.832 136.511

2 220 222

6.340 0.563

11.236

0.000

Age of organizations

Sum of squares

df

Mean square

F

Significance

12.251 101.444 113.695

2 220 222

6.126 0.461

13.284

0.000


Marital status

Table XI. t-Test for competitive advantage on the basis of marital status

Married Unmarried Absolute difference Notes: t = 0.977; p = 0.331

Mean

Standard error

N

31.1563 31.9241 0.76789

0.70013 0.35626 0.78556

64 145


The employee empowerment literature reiterates that empowered workforce helps the organization in achieving a competitive advantage (Conger and Kanango, 1988). A company can achieve a competitive advantage and reach its goals by adopting an efficient usage of its personnel according to different researchers. Kahreh et al. (2011) concluded that the empowering employee is positively affected on the three dimensions of competitive advantage including responsiveness innovation and efficiency for the organizations in the service sector. Separately the dimensions of resource view model, competitive advantage and psychological empowerment are used as the research tool by different researchers at different times as discussed before. But the main thing that is done under this research is the integrated use of these dimensions under one research for increasing the competitive advantage of service sector. Researchers have tried to make the match between the heterogeneity of service sector which is the differentiation strategy for making the use of heterogeneous resource human resource in terms of their psychological thoughts to increase the competitive advantage of service sector organizations. Under this research, Menon’s psychological dimensions have been used, which has been rarely used by other researchers. Organization age is taken as an intervening variable, which is not generally found in the research of psychological empowerment. Hence, this research analysis could add value in the research field of resource-based view, competitive advantage and psychological empowerment. Other findings are supporting the findings that have been seen in the early research. To make it clearer, some discussions under the finding part are carried on. From descriptive analysis on collected data, we can extract that psychological empowerment as well as competitive advantage is seen in the service sector organizations, as mean is greater than 3 with standard deviation less than 1 in most of the items. Three factors for psychological empowerment and four factors for competitive advantage are extracted from the factor analysis. Significant correlation is found between the items and extracted variables from the factor analysis. Also, significant correlation is found between variables and their sub-variables. Regression analysis has given the significant result with the conclusion that empowerment has the impact on the competitive advantage. Psychological empowerment has positive and significant impact on the competitive advantage of an organization. ANOVA test also showed the significant result. Tolerance (TOL) and VIF test has shown absence of multicollinearity, as TOL values are less than 1, whereas values of VIF are less than 10. Different other plots and tests discussed in the analysis part show that data are normally distributed and there is absence of heteroscedasticity. From the analysis, it is found that mean competitive advantage of public hospital is significantly different from that of private bank, private hospital and public bank. Mean competitive advantage, mean structural empowerment as well as mean psychological empowerment of public hospital are seen the lowest and significantly different from that of other types of organizations. On the basis of the age of the organization, it is found that organizations between ages of 11 and 50 are more effective in organizational market coverage as well as in competitive position in terms of sales. No difference is found in competitive advantage between male and female as well as married and unmarried. Chi-square test has shown that age of the employees and the age of the organization have an association with competitive advantage of the organization. Significant difference is found in the competitive advantage between the public sector and the private sector of the organizations. Public hospitals are seen to be the poorest in increasing their competitive advantage through the resource-based view of the organization.


479

IJLMA 59,4


480

Gender and marital status show no link with the competitive advantage of the organization. However, age of the organization and age of the employees’ show a significant relationship with the competitive advantage of the organization. There is no significant mean difference in the resource-based view of the organizations. This shows that all types of organizations are using the resource-based view for managing human resources, as the mean of resource based view (RBV) is high with low standard deviation. Most of the organizations are using the resource-based view for managing human resources. But all the organizations are not being able to empower their resources structurally as well as psychologically to increase the competitive advantage of the organization. Empowerment has the significant impact on the competitive advantage but there is no evidence that resource-based view always leads to empowerment of employees leading to competitive advantage. This research could not support the other research that organizations using the resourcebased approach in managing human resources definitely could empower employees, as no mean difference is seen in the resource-based approach of organizations. Mean of resourcebased view is high for all types of organizations but mean for empowerment and competitive advantage ranges from high to low. But this research has supported that empowered employees could lead to the competitive advantage of the organization. Here, we can find the gap between the perception of the employees and the real situation of the competitive level of the organizations. Company in Nepal has followed the quite traditional technique for granting the authority. All power and authority are resumed by the top level and decisions are made by them. But the lower level managers are those people who are “close to action” and face problems with customer as well as employee; hence, they must be participating in decision-making. Research on Nepalese Banking sector (Shrestha, 2006) indicated low level of training and development practices in the banking industry. Coverage of training seemed to be in very inferior status. The use of succession plan that designed for the internal selection and promotion are in low practices in Nepalese Banking Industry. Nepalese Banks need to make strategy of succession planning. The result showed that employees are quiet positive toward the work environment and climate in the Banking Industry in Nepal. The transparent regulation, financial system and practice of good governance have made the banking industry an attractive place for the employees than other sectors in mean time. This research also shows that public hospitals are showing quiet low degree of employee empowerment as well as competitive advantage in comparison to other sectors. This can create a vicious cycle in the health of the middle-level people as well as lower-level people because the target or the customers of the public hospitals are these people. This does not only have adverse impact on the health of these people but also in the economy of this level. For the development of the nation as well as to ensure the long-term sustainability of these organizations, they have to focus on empowerment so that competitive advantage of these organizations could be increased. Public banks do not differ so much in comparison to private banks. This shows that public banks have started focusing on the long-term sustainability by improving on their working processes and employee empowerment. Marital status shows no significant impact on the empowerment and competitive advantage. So, despite of marital status, organizations should focus on empowering all by providing equal opportunities. From this it can be concluded that organizations should empower their employees irrespective of marital status to increase the competitive advantage of the organizations. However, age of the organization shows the significant impact on the outputs. This finding leads us to learn that experience plays a vital role in


increasing the competitive advantage of the organizations. As the organizations between ages of 11 and 50 show the high degree of effectiveness, experience with new vision plays a vital role in increasing the competitive advantage of the organization. Conclusion From the analysis, it is seen that structural empowerment as well as psychological empowerment has the impact on the competitive advantage of the organization in Nepal as in other countries. But the factors that are extracted are quite different from that of Western organizations. The interest of managing human resource is based around the notion that people at work are the key source of sustained competitive advantages. We all believe that in this century, organizations are not competing on the basis of the product they produce rather the quality of the people they employ. This belief is based on the expectation that people can make the difference because of their capabilities and commitment which are rare, non-substitutable, valuable and inimitable (Barney, 1991). According to Kanter (1983a, 1983b), when people do not have access to information, support, resources and opportunity, they feel powerless. Those with access to power and opportunity, according to Kanter’s theory, are highly motivated and are able to contribute to the development of an empowering environment by sharing their sources of power. Considerable support for the validity of Kanter’s theory has been established in the nursing profession, where perceptions of empowerment of both staff nurses and nurse managers have been examined in a variety of organizations, ranging from large acute care teaching facilities to small community hospitals. Nurse empowerment has been found to be related to the nurses’ organizational commitment, burnout, work satisfaction, immediate manager’s leadership style, level in the hierarchy and autonomy. In this research, only three variables of structural empowerment are extracted. They are support, access to information with training and access to resources with expertise help. These all variables have shown significant correlation with the structural empowerment and competitive advantage. From this we can conclude that organizations should focus on empowerment for increasing their competitive advantage. This research has also shown that empowered human resources are capable of increasing the competitive advantage of an organization. It is essential that the organization should focus on empowering employees structurally and psychologically so that competitive advantage of the organization could be increased. References Agha, S., Alrubaiee, L. and Jamhour, M. (2012), “Effect of core competence on competitive advantage and organizational performance”, International Journal of Business and Management, Vol. 7 No. 1, pp. 192-204. AI Rousan, M. and Qawasweh, F., (2009), “The impact of SWOT analysis on achieving a competitive advantage: evidence from Jordanian banking industry”, International Bulletin of Business Administration, No. 6, pp. 82-92. Argyris, C. (1998), “Empowerment: the emperor’s new clothes”, Harvard Business Review, Vol. 76 No. 3, pp. 98-105. Adhikari, D.R. (2010), “Human resource development (HRD) for performance management, the case of Nepalese organizations”, International Journal of Productivity and Performance Management, Vol. 59 No. 4, pp. 306-324. Adhikari, D.R. and Gautam, D.K. (2007), “Empowering Nepalese managers for organizational performance”, Paper presented at International Colloquium of Asian Pacific Researchers in


481

IJLMA 59,4


482

Organization Studies (APROS), Management Development Institute (IMS), Gurgaon, December 9-12. Adhikari, D.R. and Gautam, D.K. (2011), “Employees commitment and organizational performance in Nepal: a typological framework”, SEBON Journal, Vol. 1 No. 17. Ambad, A.N.S. (2012), “Psychological empowerment: the influence of organizational commitment among employees in the construction sector”, The Journal of Global Business Management, Vol. 8 No. 2, pp. 73-81. Baird, K. and Wang, H. (2010), “Employee empowerment: extent of adoption and influential factors”, Personnel Review, Vol. 39 No. 5, pp. 574-599. Barney, J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120. Bandura, A. (1977), “Self-efficacy: toward a unifying theory of behavioral change”, Psychological Review, Vol. 84 No. 2, pp. 191-215. Baniya, L.B. (2004), “Human resource development practice in Nepalese business organizations: a case study of manufacturing enterprises in pokhara”, The Journal of Nepalese Business Studies, Vol. 1 No. 1, pp. 58-68. Barney, J.B. and wright, P.M. (1998), “On becoming a strategic partner: the role of human resources in gaining competitive advantage”, Human Resource Management, Vol. 37 No. 1, pp. 31-46. Berman, E.M. (1995), “Empowering employees in state agencies: a survey of recent progress”, International Journal of Public Administration, Vol. 18 No. 5, pp. 833-850. Bogg, J. (1995), “The practice of empowerment – making the most of human competence”, Leadership and Organization Development Journal, Vol. 16 No. 6, pp. 46-47. Boxall, P. (1996), “The strategic human resource management debate and the resource-based view of the firm”, Human Resource Management Journal, Vol. 6 No. 3, pp. 59-75. Boxall, P. (1998), “Achieving competitive advantage through human resource strategy: towards a theory of industry dynamics”, Human Resource Management Review, Vol. 8 No. 3, pp. 265-288. Byham, W.C. (1992), “Would you recognize an empowered organization if you saw one?”, Tapping the Network Journal, Vol. 3 No. 2, pp. 10-13. Boudrias, J.S., Gaudreau, P., Savoie, A. and Morin, A.J.S. (2009), “Employee empowerment: from managerial practices to employees behavioral empowerment”, Journal of Leadership Organizational Development, Vol. 30 No. 7, pp. 625-638. Castro, B.C., Perinan, M.M.V. and Bueno, J.C.C. (2008), “Transformational leadership and followers’ attitudes: the mediating role of psychological empowerment”, The International Journal of Human Resource Management, Vol. 19 No. 10, pp. 1842-1863. Choong, O.Y., Wong, L.K. and Lau, T.C. (2011), “Psychological empowerment and organizational commitment in the Malaysian private higher education institutions: a review of research agenda”, Academic Research International, Vol. 1 No. 3. Coff, R. (1994), Human Assets and Organization Control: Implications of the Resource Based View, in John, M. (Ed.), Olin School of Business Washington University, St. Louis. Colwell, S., Hogarth-Scott, S., Jiang, D. and Joshi, A. (2009), “Effects of organizational and service person orientation on customer loyalty”, Journal of Management Decisions, Vol. 47 No. 10, pp. 1489-1513. Conger, J.A. and Kanungo, R.N. (1988), “The empowerment process: integrating theory and practice”, Academy of Management Review, Vol. 13 No. 3, pp. 471-482. Epstein, J. and Harackiewicz, J.M. (1992), “Winning is not enough: the effects of competition and achievement orientation on intrinsic interest perspective”, Social Psychology Bulletin, Vol. 18 No. 2, pp. 128-138.


Forrester, R. (2000), “Empowerment: rejuvenating a potent idea”, Academy of Management Executives, Vol. 143 No. 3, pp. 67-80. Gautam, D.K. (2015), “Strategic integration of HRM for organizational performance: Nepalese reality”, South Asian Journal of Global Business Research, Vol. 4 No. 1, pp. 110-128. Greasley, K. (2005), “Employee perception of empowerment”, Journal of employment relations, Vol. 27 No. 4, pp. 354-368. Gronoos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach, 2nd ed., Johnwiley and Sons limited. Inyang, J.B. (2011), “Creating value through people: best human resource practices in Nigeria”, International Business and Management, Vol. 2 No. 1. Kahreh, S.M., Ahmadi, H. and Hashemi, A. (2011), “Achieving competitive advantage through empowering employees: an empirical study”, Far East Journal of Psychology and Business, Vol. 3 No. 2, pp. 26-37. Kanungo, R.N. and Mendonca, M. (1996), Ethical Dimensions of Leadership, Sage, Thousand Oaks, CA. Kanter, R.M. (1979), “Power failure in management circuits”, Harvard Business Review, Vol. 57 No. 4, pp. 65-75. Khan, M.A., Rehman, K., Rehman, I., Safwan, N. and Ahmed, A. (2011), “Modeling link between internal service quality in human resource management and employee retention: a case study of Pakistani privatized and public sector banks”, African Journal of Business Management, Vol. 5 No. 3, pp. 949-959. Khadka, G.S. (2008), “Employee empowerment in Nepalese banks”, Thesis Submitted to Department of Management, Tribhuvan University, Kathmandu. Kotler, P. (1997), Marketing Management Analysis, Planning, Implementation and Control, Prentice Hall, New Jersey, Upper Saddle River. Kotler, P. (2000), “From market driven to market driving”, European Management Journal, Vol. 18 No. 2, pp. 129-142. Lado, A.A. and Wilson, M.C. (1994), “Human resource systems and sustained competitive advantage: a competency based perspective”, Academy of Management Review, Vol. 19 No. 4, pp. 699-727. Laschinger, H.K. and Finegan, J. (2005), “Empowering nurses for work engagement and health in hospital settings”, Journal of Nursing Adminstration, Vol. 35 No. 10, pp. 439-448. Lashley, C. (1995), “Towards an understanding of employee empowerment in hospitability services”, Journal of Contemporary Hospitality Management, Vol. 7 No. 1, pp. 27-32. Lee, M., and Koh, J. (2001), “Is empowerment really a new concept?”, International Journal of Human Resource Management, Vol. 12 No. 4, pp. 684-695. Li, C., Wu, K., Johnson, D.E. and Wu, M. (2011), “Moral leadership and psychological empowerment in China”, Journal of Managerial Psychology, Vol. 27 No. 1, pp. 90-108. Looy, B.V., Gemmel, P. and Dierdonck, R.V. (Eds) (2003), Service Management: An Integrated Approach, 2nd ed., Person education limited, Great Britian. Long, R.F. (1996), “Empowerment –a management style for the millennium?”, Empowerment in Organizations, Vol. 4 No. 3, pp. 5-15. Menon, S.T. (2001), “Employee empowerment: an integrative psychological approach”, Applied Psychology: An International Review, Vol. 50 No. 1, pp. 153-180. Mata, F.J., Fuerst, W.L. and Barney, J.B. (1995), “Information technology and sustained competitive advantage: a resource based analysis”, MIS Quarterly, Vol. 19 No. 44, pp. 487-505. Nick, N., Sonny, S.A., Jack, L.S. and Jean, P. (1995), “Empowerment for the year 2000 and beyond”, Empowerment in Organizations, Vol. 3 No. 4, pp. 36-42.


483

IJLMA 59,4


484

Osborne, S.P. (1994), “The language of empowerment”, International Journal of Public Sector Management, Vol. 7 No. 1, pp. 56-62. Peterse, A.N., Knippenberg, D.V., Schippers, M. and Stam, D. (2010), “Transformational and transactional leadership and innovative behavior: the moderating role of psychological empowerment”, Journal of Organizational Behavior, Vol. 31 No. 4, pp. 609-623. Pfeffer, J. (2005), “Producing competitive advantage through the effective management of people”, Academy of Management Executive, Vol. 19 No. 4, pp. 95-107. Porter, M. (1985), Chapter 1, Competitive Advantage: Creating and Sustaining Superior Performance, Free press, NY, pp. 1-30. Poudel, S.P. (2009), “Effectiveness of human resource function in Nepalese commercial banks”, Thesis Submitted to Department of Management, Tribhuvan University, Kathmandu. Read, R. and Defillipi R.J. (1990), “Causal ambiguity barriers to imitation and sustainable competitive advantage”, Academy of Management Review, Vol. 15 No. 1, pp. 88-102. Schuler, R.S. and MacMillan, I. (1984), “Gaining competitive advantage through human resource practices”, Human Resource Management, Vol. 23 No. 3, pp. 241-256. Schuler, R.S. and Jackson, S.E. (1987), “Linking competitive strategies with human resource management practices”, Academy of Management Executives, Vol. 1 No. 3, pp. 207-219. Shrestha, Y.K. (2006), “Human resource management and organizational performance: an evidence from Nepalese banking industry”, Thesis Submitted to Department of Management, Tribhuvan University, Kathmandu. Singh, S. and Dixit, K.P. (2011), “Employee empowerment: a light on the real meaning of the philosophy”, International Journal of Business and Management Research, Vol. 1 No. 9, pp. 587-593. Sparks, B., Bradely, G. and Callan, V. (1997), “The impact of staff empowerment and communication style on customer evaluations: the special case of service failure”, Psychology and Marketing Journal, Vol. 14 No. 3, pp. 475-493. Spence, J.T., Pred, R.S. and Helmreich, R.L. (1989), “Achievement strivings, scholastic aptitude and academic performance: a follow up to impatience versus achievement strivings in a type of pattern”, Journal of Applied Psychology, Vol. 74 No. 1, pp. 176-178. Spreitzer, G.M. (1995), “Psychological empowerment in the workplace: construct, definition, measurement and validation”, Academy of Management Journal, Vol. 38 No. 5, pp. 1442-1465. Spreitzer, G.M. (2008), “Taking stock: a review of more than twenty years of research on empowerment at work”, in Cooper, C. and Barling, J. (Eds), The Handbook of Organizational Behavior, Sage Publications, pp. 54-72. Swiercz, P.M. and Spencer, B.A. (1992), “HRM and sustainable competitive advantage: lessons from delta air lines”, Human Resource Planning, Vol. 15 No. 2, pp. 35-46. Thomas, K.W. and Velthouse, B.A. (1990), “Cognitive elements of empowerment: an “interpretive” model of intrinsic task motivation”, Academy of Management Review, Vol. 15 No. 4, pp. 666-681. Wall, T.D., Wood, S.J. and Leach, D.J. (2004), “Empowerment and performance”, International Review of Industrial and Organizational Psychology, Vol. 19 (May), pp. 1-46. Wang, G.P. and Lee, D.P. (2009), “Psychological empowerment and job satisfaction: an analysis of interactive effects”, Group and Organization Management Sage Publications, Vol. 34 No. 3, pp. 271-296. Wing, L.S. (1996), “Personnel empowerment: self as tool”, Empowerment in Organizations, Vol. 4 No. 3, pp. 5-15. Wood, R.E. and Bandura, A. (1989), “Impact of conceptions of ability on self-regulatory mechanism and complex decision making”, Journal of Personality and Social Psychology, Vol. 56 No. 3, pp. 407-415.


Wright, P., McMahan, G. and McWilliams, A. (1994), “Human resources and sustained competitive advantage: a resource-based perspective”, International Journal of Human Resource Management, Vol. 5 No. 2, pp. 301-326. Yang, B. and Choi, S.O. (2009), “Employee empowerment and team performance: autonomy, responsibility, information and creativity”, Journal of Team Performance and Management, Vol. 15 Nos 5/6, pp. 289-301. Yukl, G.A. and Becker, S.W. (2006), “Effective empowerment in organizations”, Organization Management Journal. Linking Theory and Practice: EAM White Papers Series, Vol. 3 No. 3, pp. 210-231. Further reading Abelson, M. and BaySinger, B. (1984), “Optional and dysfunctional turnover: toward an organizational level model”, Academy of Management Review, Vol. 9 No. 2, pp. 331-341. Adhikari, D.R. (2002), “Human resource management: an agenda for the future research in Nepal”, Banijya Sansar, Vol. 10 No. 1, pp. 26-30. Adhikari, D.R. (2012), “Status of corporate social responsibility in selected Nepalese companies”, Vol. 12 No. 5, pp. 642-655. Afiouni, F. (2007), “Human resource management and knowledge management: a road map toward improving organizational performance”, Journal of American Academy of Business, Vol. 11 No. 2, p. 124. Agrawal, G.R. (1999), Dynamics of human resource management in of Nepal, Buddha Publications, Kathmandu. Agrawal, R. and Ferrat, T.W. (2001), “Crafting an HR strategy to meet the need for IT workers’. association for computing machinery”, Communications of the ACM, Vol. 44 No. 7, pp. 58-64. Ashforth, B.E. (1989), “The experience of powerlessness in organizations”, Organizational Behavior and Human Decision Processes, Vol. 43 No. 2, pp. 207-242. Barney, J.B. (1986b), “Organizational culture: can it be a source of sustained competitive advantage?”, Academy of Management Review, Vol. 26 No. 1, pp. 41-56. Barney, J.B. (2001), “Is the resource based view of the firm: ten years after 1991”, Journal of Management, Vol. 27 No. 6, pp. 654-741. Becker, B. and Gerhart, B. (1996), “The impact of human resource management on organizational performance; progress and prospects”, Academy of Management Journal, Vol. 39 No. 4, pp. 779-801. Bhandari, S. (2013), “Empowerment and competitiveness: a resource based approach to human resource management,”, Thesis Submitted to Department of Management, Tribhuvan University, Kathmandu. Boudreu, J. and Berger, C. (1985), “Decision theoretic utility analysis applied to employee separations and acquisitions”, Journal of Applied Psychology, Vol. 70 No. 3, pp. 581-612. Bowen, D.E. and Lawer, E.E. (1992), “The empowerment of service workers: what, why, how and when?”, Sloan Management Review, Vol. 33 No. 3, pp. 31-39. Bowen, D.E. and Lawer, E.E. (1995), “Empowering service employees”, Sloan Management Review, Vol. 36 No. 4, p. 73. Collis, D.J. (1991), “A resource based anlaysis of global competition: the case of the bearings industry”, Strategic Management Journal, Vol. 12 No. S1, pp. 49-68. Collis, D.J. (1994), “How valuable are organizational capabilities”, Strategic Management Journal, Vol. 15 No. S1, pp. 143-152. Collis, D.J. and Mongomery, C.A. (1995), “Competing on resources: strategy in the 1990s”, Harvard Business Review, Vol. 73 No. 4, pp. 118-128.


485

IJLMA 59,4


486

Conner, K.R. (1991), “A historical comparison of resource based theory and five schools of thought within industrial organizational economics: do we have a new theory of the firm?”, Journal of Management, Vol. 17 No. 1, pp. 121-154. Conner, K.R. and Prahalad, C.K. (1991), “A resource based theory of the firm: knowledge versus opportunism”, Organization Science, Vol. 7 No. 5, pp. 447-501. Chung, C.E.E. (2011), “Job stress, mentoring, psychological empowerment and job satisfaction among nursing faculty”, Theses/Dissertations/Professional/Papers/capstones, paper. 1266. Cranet (2005), Cranet Survey on Comparative Human Resource Management: International Executive Report-2005, CRANET, Cranfield University, UK. Dewettinck, K. and Ameijde, M.V. (2011), “Linking leadership empowerment behavior to employee attitudes and behavioral intentions”, Personnel Review, Vol. 40 No. 3, pp. 284-305. Dierickx, I. and Cool, K. (1989), “Asset stock accumulation and sustainability of competitive advantage”, Management Science, Vol. 35 No. 12, pp. 1504-1511. Farrell, A., Souchon, A. and Durden, G. (2001), “Service encounter conceptualization: employee’s service behaviors and customer’s service quality perceptions”, Journal of Marketing Management, Vol. 17 Nos 5/6, pp. 577-593. Fiol, C.M. (1991), “Managing culture as a competitive resource: an identity based view of sustainable competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 191-212. Flatt Sylvia, J. and Kowalczyk Stanley, J. (2008), “Creating competitive advantage through intangible assets: the direct and indirect effects of corporate culture and reputation”, Advances in Competitiveness Research, Vol. 16 No. 1, p. 13. Foster, K. and Sandel, M. (2010), “Abuse of women and disabilities: toward an empowerment perspective”, Sex Disabilities, Vol. 28 No. 3, pp. 177-218. Gandz, J. (1990), “The employee empowerment era”, Business Quarterly, Vol. 55 No. 2, p. 74. Gautam, D.K. and Davis, A.J. (2007), “Integration and devolvement of human resource practices in Nepal”, Employee Relations, Vol. 29 No. 6, pp. 711-726. Grant, R.M. (1991), “The resource based theory of competitive advantage; implications for strategy formulation”, California Management Review, Vol. 33 No. 3, pp. 114-135. Gratton, L. (1977), “Human resource strategy”, People Management, Vol. 3 No. 15, pp. 22-27. Guest, D. (1990), “Human resource management and the American dream”, Journal of Management Studies, Vol. 27 No. 1, pp. 377-397. Hackman, J.R. and Oldham, G.R. (1976), “Motivation through the design of work: test of a theory”, Organizational Behavior and Human Performance, Vol. 16 No. 2, pp. 250-279. Hafeez, H., Yan Bing, Z. and Malak, N. (2002), “Core competence for sustainable competitive advantage. a structured methodology for identifying core competence”, IEEE Transactions on Engineering Management, Vol. 49 No. 1, pp. 28-35. Hammuda, I.M. and Dulaimi, M. (1997), “The theory and application of empowerment in constructing service and manufacturing industries”, International Journal of Project Management, Vol. 15 No. 5, pp. 289-296. Hart, C. and Schlesinger, C. (1991), “Total quality management and human resource professional: applying the baldrige framework to human resources”, Human Resource Management, Vol. 30 No. 49, pp. 433-454. Herrenkohl, R.C., Judson, G.T. and Heffner, J.A. (1999), “Defining and measuring employee empowerment”, Journal of Applied Behavioral Science, Vol. 35 No. 3, pp. 373-389, available at: www.himalayanbank.com Hoare, R.J. and Butcher, K, (2008), “Chinese cultural values affect customer satisfaction/loyalty”, International Journal of Contemporary Hospitability Management, Vol. 20 No. 2, pp. 156-171.


Hocutt, M. and Stone, T. (1998), “The impact of employee empowerment on the quality of a service recovery effort”, Journal of Quality Management, Vol. 3 No. 1, pp. 41-50. Jackson, S.E. and Schuler, R.S. (1995), “Understanding human resource management in the context of organizations and their environments”, Annual Review of Psychology, Vol. 46 No. 1, pp. 237-264. Jones, G. (1984), “Task visibility, free riding and shirking: exploring the effect of structure and technology on employee behaviors”, Academy of Management Review, Vol. 9 No. 4, pp. 684-695. Kanter, R.M. (1983a), “Frontiers for strategic human resource planning and management”, Human Resource Management, Vol. 22 Nos 1/2, pp. 9-21. Kanter, R.M. (1983b), The Change Master, Simon and Schuster, New York, NY. Kazlauskaite, R., Buciuniene, I. and Tarauskas, L. (2006), “Building employee commitment in the hospitability industry, Baltic Journal of Management, Vol. 1 No. 3, pp. 300-314. Kirkman, B.L. and Rosen, B. (1999), “Beyond self-management: antecedents and consequences of team empowerment”, Academy of Management Journal, Vol. 42 No. 1, pp. 58-74. Mahoney, J.T. and Pandian, J.R. (1992), “The resource based view within the conversation of strategic management”, Strategic Management Journal, Vol. 15 No. 5, pp. 363-380. Mueller, F. (1996), “Human resources as strategic assets: an evolutionary resource based theory”, Journal of Management Studies, Vol. 33 No. 6, pp. 757-785. Nayab, N. (2011), “How employees empowerment has pushed companies ahead”, available at: www. brighthub.com/off/humanresources/articles/123676.aspx (accessed 24 April 2012). Newman, K., Maylor, U. and Chansarkar, B. (2001), “The nurse retention, quality of care and patient satisfaction chain”, International Journal of Health Care Quality Assurance, Vol. 14 No. 2, pp. 57-64. Newman, K., Maylor, U. and Chansarkar, B. (2002), “The nurse satisfaction, service quality and nurse retention chain: implications for management of recruitment and retention”, Journal of Manangement in Medicine, Vol. 16 Nos 4/5, pp. 271-291. Nixon, B. (1994), “Facilitating empowerment in organizations”, Leadership and Organization Development Journal, Vol. 15 No. 4, pp. 3-11. Peters, C. and Mazdarani, E. (2008), “The impact of employee empowerment on service quality and customer satisfaction in service organizations”, A case study of Lansfersakringar Bank AB, available at: www.essays.se/essays/a6a2e82b5c Peteraf, M. (1993), “The cornerstones of competitive advantage: a resource based view”, Strategic Management Journal, Vol. 14 No. 3, pp. 179-191. Pfeffer, J. (1994), Competitive Advantage Through People, Harvard School Business Press, Boston MA. Pitts, R.A. and Lei, D. (1995), Strategic Management Building and Sustaining Competitive Advantage, West Publishing to USA. Quinn, R.E. and Spreitzer, G.M. (1997), “The road to empowerment: seven questions every leader should consider”, Organizational Dynamics, Vol. 26 No. 2, pp. 37-49. Randolph, W.A. (1995), “Navigating the journey to empowerment”, Organization Dynamics, Vol. 23 No. 3, pp. 19-32. Rugman, A.M. and Verbeke, A. (2002), “Edith Penrose’s contribution to the resource based views of strategic management”, Strategic Management Journal, Vol. 23 No.8, pp. 769-780. Schmidt, R., Hunter, J., Mackenzie, R. and Muldrow, T. (1979), “Impact of valid selection procedures on workforce productivity”, Journal of Applied Psychology, Vol. 64 No. 6, pp. 609-626. Schuler, R.S., Dowling, P.J. and De Cieri, H. (1993), “An integrative framework of strategic international human resource management”, Journal of Management, Vol. 19 No. 2, pp. 419-459.


487

IJLMA 59,4


488

Spreitzer, G.M., Kizilos, M.A. and Nason, S.W. (1997), “A dimensional analysis of the relationship between psychological empowerment and effectiveness, satisfaction and strain”, Journal of Management, Vol. 23 No. 5, pp. 679-704. Snow, R. and Snell, S. (1992), “Staffing as strategy”, in Schmitt, N. and Borman, W. (Eds), Personnel Selection, Vol. 4, Jossey Bass, San Francisco, CA. Steffy, B. and Maurer, S. (1988), “Conceptualizing and measuring the economic effectiveness of human resource activities”, Academy of Management Review, Vol. 13 No. 2, pp. 271-286. Sundbo, J. (1999), “Empowerment of employees in small and medium sized service firms”, Employee Relations, Vol. 21 No. 2, pp. 105-127. Sundbo, J. (2009), “Innovation in the experience economy: a taxonomy of innovation organizations”, The Service Industries Journal, Vol. 29 No. 4, pp. 431-455. Wernerfert, B. (1984), “A resource based view of the firm”, Strategic Management Journal, Vol. 5 No. 2, pp. 171-182. Wright, P. and McMahan, G. (1992), “Theoretical perspectives for strategic human resource management”, Journal of Management, Vol. 18 No. 2, pp. 295-320. Zeithaml, V., Parasuraman, A. and Berry, L. (1985), “A conceptual model of service quality and its implications for future research”, Journal of Marketing, Vol. 49 No. 3, pp. 580-607. Corresponding author Dhruba Kumar Gautam can be contacted at: [email protected]

For instructions on how to order reprints of this article, please visit our website: www.emeraldgrouppublishing.com/licensing/reprints.htm Or contact us for further details: [email protected]