Journal Title: Journal of Management and Tourism Research
Volume : 2
Issue : 1
Page : 1 – 16
Submitted: September 17, 2018; Revised: May 13, 2019; Accepted: May 28, 2019
Correspondence :  rthanuja78427@yahoo.com

This study empirically examines eight human resource management practices (HRMPs) and their impact on business performance among small and medium sized enterprises in manufacturing sector (MSMEs) in Sri Lanka. There is a little attention given to the effect of HRMPs on performance of MSMES in Sri Lanka. Thus, this study addresses this knowledge gap in the literature in relation to MSMEs. Fifty MSMEs in Hambanthota district in Sri Lanka (HDSL) were randomly selected as the sample. Structured questionnaire was administrated and in-depth interviews were conducted with owner-managers. Results revealed that selected MSMEs in HDSL are mainly adopting informal HR practices. On average, these firms adopted two out of eight possible formal HR practices. Two-thirds of MSMEs adopted fewer than three HR practices and one-third did not adopt any formal HR practices. Further, results revealed that most commonly adopted HR practices are using professional sources of recruitment, using written criteria for firing and having a Human Resource plan for the firm. The nature of HRMPs in MSMEs in HDSL differs according to owner-manager’s education qualification and the firm size. Results illustrated that insignificant weak positive relationship between the formal Human Resource Management Practices and business performance of MSMEs in HDSL. There is a positive relationship between all the HRMPs variables, except presence of HR specialist(s) and overall business performance. Spending training for employees is the significant predictor of business performance of MSMEs in HDSL. It can also be concluded that there is a significant positive relationship among education qualification, firm size and formal HRMPs.

Keywords: Human Resource Management practices, Small and medium enterprises, Manufacturing Small and medium enterprises, Business performance, Sri Lanka.

Journal Title: Journal of Management and Tourism Research
Volume : 2
Issue : 1
Page : 17-32
Submitted: March 31, 2019; Revised: May 30, 2019; Accepted: July 04, 2019
Correspondence :  shafnaz1993@gmail.com

Modern organizations need able and willing employees to invest in their jobs psychologically. It is timely to check weather Work Engagement has something to do with ethical climate of an employee. There is a lack of research in studying the impact of Ethical Climate on Work Engagement. The current study was aimed at identifying the impact of Ethical Climate on Work Engagement of operational level employees in garment sector.Research problem of the study was derived as why there is a low level of Work Engagement of operational level employees in garment sector. Simple Regression was performed to investigate the impact of ethical climate on Work Engagement and Multiple Regression was performed to investigate the impact of dimensions of Ethical Climate on Work Engagement. Work engagement acts as the dependent variable of the study. The ethical climate acts as the independent variable of the study including five dimensions; Caring, Law & Code, Rules, Instrumental and independence. Through this study, it was concluded that the Ethical Climate impacts on Work Engagement; Law & Code, Rules and Independence impact on Work Engagement. The study contributes theoretically and empirically to the broad HR management discourse.

Key words: Work Engagement, Ethical Climate, Caring, Law & Code, Rules, Instrumental, Independence

Journal Title: Journal of Management and Tourism Research
Volume : 2
Issue : 1
Page : 33-49
Submitted: May 12, 2019; Revised: June 20, 2019; Accepted: July 04, 2019
Correspondence : mskumanayake@gmail.com

Credit risk attached with commercial bank loans can be considered as one of the main risks which commercial banks face. Thus, commercial banks diversify their loan portfolio to enhance performance through mitigating the credit risk. Loan portfolio diversification refers to providing loans into different sectors without concentrating on a particular sector. However, there is no consensus in the literature about the link between loan portfolio diversification and performance of commercial banks. Therefore this study examines the impact of loan portfolio diversification on performance of commercial banks in Sri Lanka. Hirschman Herfindahl Index was used to measure the loan portfolio diversification while performance measured by the CAMEL model. The variables such as Interest Rate Spread and Bank size are considered as the control variables. Data were collected from audited annual financial statements of commercial banks during the period of 2008 – 2017. The sample consists of ten licensed commercial banks including six systemically important commercial banks in Sri Lanka out of 25 licensed commercial banks in Sri Lanka. Data were analyzed by using Pearson correlation and fixed effect panel regression model. The results reveal that there is a significant negative impact of loan portfolio diversification on commercial bank performance. Further, control variables-bank size positively links with commercial bank performance while interest rate spread has positive insignificant impact on bank performance. In conclusion, it is confirmed that commercial banks should reduce their loan portfolio diversification as much as possible to increase the performance. Because results revealed that diversified loan portfolio position leads poor performance of commercial banks. The management should follow specific strategies about LPD and improve commercial bank performance while making high attention about loan portfolio position of the bank.

Keywords: Credit Risk, Loan Portfolio Diversification, Loan Portfolio Concentration, Hirschman Herfindahl Index, Interest Rate Spread

Journal Title: Journal of Management and Tourism Research
Volume : 2
Issue : 1
Page : 50-64
Submitted: May 10, 2019; Revised: June 19, 2019; Accepted: July 04, 2019
Correspondence : mskumanayake@gmail.com

Micro, Small and Medium Scale Enterprises (MSME) sector is identified as an important strategic sector to create economic and social sustainability in Sri Lanka. This sector is playing a vital role in economic growth, regional development, employment generation and poverty reduction in the emerging economy of Sri Lanka. The Micro Finance Institution (MFI) has been developed a variety of services to assist the financial and non- financial needs of the entrepreneurs including credit, saving, leasing, insurance facilities, and training programs. The sample has been derived from Kalutara district and 100 numbers of respondents have been selected through the random sampling method. Primary data has been collected and administered through a questionnaire. The data were analyzed using descriptive analysis, correlation coefficient analysis, Regression analysis, Baron and Kenny mediator analysis method and Sobel test. The findings revealed the positive relationship between Microfinance services and the growth of MSMEs. Mediator analysis and the Sobel test identified that experience level partially mediates the relationship between the microfinance services and the growth of MSMEs. Study recommends to government to implement different tax policies for this sector, increase the investment on infrastructure in rural areas and this enables MFIs to maintain the lowest rate of interest, increase their outlets in rural areas and to deliver more effective on training programs in order to empower the MSMEs in Sri Lanka to achieve long term sustainability in Sri Lanka.

Keywords: Micro Finance Services, Micro Small and Medium Scale Enterprises, Entrepreneurs, Micro credit

Journal Title: Journal of Management and Tourism Research
Volume : 2
Issue : 1
Page : 65-84
Submitted: May 22, 2019; Revised: June 24, 2019; Accepted: July 04, 2019
Correspondence : methikalak@gmail.com

Micro, Small and Medium Scale Enterprises (MSME) sector is identified as an important strategic sector to create economic and social sustainability in Sri Lanka. This sector is playing a vital role in economic growth, regional development, employment generation and poverty reduction in the emerging economy of Sri Lanka. The Micro Finance Institution (MFI) has been developed a variety of services to assist the financial and non- financial needs of the entrepreneurs including credit, saving, leasing, insurance facilities, and training programs. The sample has been derived from Kalutara district and 100 numbers of respondents have been selected through the random sampling method. Primary data has been collected and administered through a questionnaire. The data were analyzed using descriptive analysis, correlation coefficient analysis, Regression analysis, Baron and Kenny mediator analysis method and Sobel test. The findings revealed the positive relationship between Microfinance services and the growth of MSMEs. Mediator analysis and the Sobel test identified that experience level partially mediates the relationship between the microfinance services and the growth of MSMEs. Study recommends to government to implement different tax policies for this sector, increase the investment on infrastructure in rural areas and this enables MFIs to maintain the lowest rate of interest, increase their outlets in rural areas and to deliver more effective on training programs in order to empower the MSMEs in Sri Lanka to achieve long term sustainability in Sri Lanka.

Keywords: Micro Finance Services, Micro Small and Medium Scale Enterprises, Entrepreneurs, Micro credit

Journal Title: Journal of Management and Tourism Research
Volume : 2
Issue : 1
Page : 85-102
Submitted: July, 05 2019; Revised: July 22, 2019; Accepted: July 22, 2019
Correspondence : ruwan@uwu.ac.lk

Destination Image (DI) and tourists’ Destination Loyalty (DL) have been attractive topics in tourism discourse though comparisons of different tourist groups are dearth. It is questionable whether DI and behavioral intentions remain same within different groups from different regions. Tourism is a booming industry and plays a crucial role in Sri Lankan economic growth. Western Europe has been the traditional source market for the post-colonial Sri Lankan tourism industry. The emerging trends display that tourists from Asia Pacific region overtake the traditional markets. Amidst this background, this study attempts to explore the difference between Sri Lankan Destination Loyalty among Asia Pacific and European tourists. It is expected to clarify the knowledge and empirical gaps in the destination loyalty discourse while providing recommendations to direct destination marketing efforts of post-war growing tourism industry in Sri Lanka. Study is based on primary data collected through a structured questionnaire using convenience sampling of 286 tourists; 143 from each region. Data was analyzed using Structural Equation Modeling in Smart PLS3. Tourists were highly satisfied with the existing level of cognitive destination image and affective destination image though significant differences are observed in specific features between two regions. The study argues that the destination marketers have to customize their plans and approaches to be more effective in different tourist markets.

Keywords: Destination Image, Destination Loyalty, Asia Pacific Tourists, European Tourists, Sri Lankan Tourism