1 AIT Asian Institute of Technology

Factors influencing organizational change and productivity improvement in special industrial zones: an empirical study on Dhaka Export Processing Zone (EPZ), Bangladesh

AuthorIslam, Md. Zohurul
Call NumberAIT Diss. no.SM-10-07
Subject(s)Organizational change--Bangladesh
Industries--Bangladesh
Dhaka Export Processing Zone (EPZ)

NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in International Public Management
PublisherAsian Institute of Technology
AbstractExport Processing Zones (EPZs) are playing a key role in attracting FDI in Bangladesh. EPZs have become more influential sector as economic enclaves particularly in employment generation, export diversification and investment creation. This dissertation develops a conceptual model which determines the impact of Human Resource Management (HRM), leadership competencies and organizational behavioron organizational change which improve Dhaka EPZ (DEPZ) firm productivity. Three-stage surveys were undertaken for data collection. The first stage sample is the in-depth interviews of 12 sample respondents; the second stage is the pilot survey of 30 managers and the third stage is the full-scale survey of 216 sample managers. The sample respondents are from 53 manufacturing enterprises within DEPZ. Based on the literature review a theoretical model and hypotheses have been developed and tested. According to the theoretical model, a set of variables related to organizational behavior/characteristics, leadership competencies, and HRM practices were developed to measure organizational change which improves productivity/firm performance. Reliability test (cronbach’s alpha) has been done for validating the measured items of each variable. The proposed theoretical model and formulated hypotheses were tested by higher order statistical software. The empirical findings of this study suggested that productivity/firm performance is dependent on organizational behavior characteristics, leadership competencies and HRM practices. ANOVA and regression for organizational behavior (OB) variables/components reveals that OB components have a significant relationship with organizational change. Where, organizational culture (઺=.443, p<.001), organizational learning (઺=.262, p<.001), communication (઺=.128, p<.05) and motivation (઺=.101, p<.05) are the influential factors that are highly and positively related with organizational change in DEPZ. ANOVA and regression for leadership competencies reveals that this factor has significant positive relationship with organizational change. Transformational (઺=.460, p<.001) and transactional leadership (઺=.367, p<.001) are found to have positive relationship with organizational change and firm performance in DEPZ. ANOVA and regression for HRM practices reveal that HRM practices are significantly related with firm performance in DEPZ. Where, recruitment and selection (઺=.272, p<.001) training and development (઺=.122, p<.05), performance appraisal (઺=.276, p<.001) and compensation/reward (઺=.261, p<.01) practices have positive and significant impact on firm performance improvement in DEPZ. Unionization is negatively (઺=-.060) but not significantly related with DEPZ firm performance. Finally, managerial implications of the findings are provided with respect to the organizational behavior, leadership competencies and HRM practices variables which are found to have positive effect on organizational change and firm performance improvement in DEPZ manufacturing enterprises. Based on the findings, training and development programs could be designed to enhance managerial skills and ability to build good industrial relations that minimize the unrest among the DEPZ enterprises and improve the firm performance. This study has given a potential roadmap to the development of a good environment at DEPZ premises by adopting good practices of HRM.
Year2010
TypeDissertation
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Sununta Siengthai;Sununta Siengthai;
Examination Committee(s)Ahmed, Kazi Mohiuddin ;Winai Wongsuraw;
Scholarship Donor(s)SBPATC ;JDCF;
DegreeThesis (Ph. D.) - Asian Institute of Technology, 2010


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