The International Research Journal of Management Science <p>The International Research Journal of Management Science (IRJMS) is a management research journal published annually by the Nepal College of Management, Dhobighat, Lalitpur, Nepal. The aim of this publication is to extract the ideas, opinions and thoughts of academicians to the business sector in Nepal and provide a platform to the scholars for disseminating research works. Members of academia and practitioners are welcome to submit their empirical and theoretical work on issues of current management and business in the Nepalese context. The journal can also be found on its own website <a title="NCM" href="" target="_blank" rel="noopener"></a>.</p> Nepal College of Management en-US The International Research Journal of Management Science 2542-2510 Consumer Perceptions of Organic Products: A Study in Birendranagar, Surkhet <p><strong>Purpose:</strong> The purpose of this study is to examine how consumers in Birendranagar, Surkhet, Nepal, perceive organic products. It aims to uncover variables influencing customers' purchasing decisions in the area and offer insightful information on the market demand for organic products.</p> <p><strong>Method/ Design:</strong> A convenience sampling method was used to gather the data where 200 respondents were given a survey questionnaire in the study region. The goal of the survey was to learn about the attitudes, convictions, and perceptions of consumers regarding organic products.</p> <p><strong>Findings:</strong> The findings show that various key factors remarkably impact consumer perception towards organic products. These factors include awareness and knowledge of organic products, perceived benefits of organic products, price sensitivity, trust in organic labeling and certification, and the availability of organic products in the market.</p> <p><strong>Practical Implications:</strong> The findings of this study provide useful and practical insights for businesses operating in the organic products market. Increasing consumer awareness about the health and environmental benefits of organic products and ensuring the availability of such products in the market can play an important role in expanding organic products market. Businesses can use this information to tailor their marketing strategies and product offerings to better meet consumer preferences.</p> <p><strong>Originality/Limitation of the Study:</strong> This study contributes to the growing body of research on consumer perception of organic products, particularly in the context of Birendranagar Surkhet, Nepal. It's crucial to remember that this study's conclusions are unique to this area and might not apply to other places. An expanded comprehension of consumer behavior about organic products can be obtained through additional study conducted in various geographic regions.</p> Ammar Bahadur Rokaya Akhilesh Chandra Pandey Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 1 13 10.3126/irjms.v8i1.60678 Job Security and Faculty Commitment within Higher Education Institutions <p><strong>Purpose: </strong>The main objective of this study is to examine the relationship between faculty job security and organizational commitment in Nepalese higher education, focusing on qualitative and quantitative job security parameters.</p> <p><strong>Methodology: </strong>A cross-sectional methodology was used to examine perceived job security and its impact on academic professionals in the Kathmandu Valley. The study involved developing and distributing a self-administered questionnaire to 210 academics associated with Tribhuvan University from different occupational specialties and pay tiers. Descriptive and causal-comparative research designs were employed in the study.</p> <p><strong>Findings: </strong>The study found significant associations between job security and organizational commitment (OC). From the results obtained in regression analysis, the value of adjusted R square was 0.584, signifying that 58.4 % of the variation in organizational commitment was due to qualitative and quantitative aspects of job security. The study's results provide empirical evidence supporting the positive impact of qualitative and quantitative employment security factors on OC. Keeping all other independent measures constant, an increase of one unit in qualitative forces would increase OC by 0.522 units (β = 0.468, p &lt; 0.01), followed by an increase of 0.333 units in OC due to quantitative factors (β = 0.286, p &lt; 0.01).</p> <p><strong>Implications: </strong>Commitment was significantly impacted by both the quantitative and qualitative dimensions of job security, suggesting that improving job security measures could lead to higher levels of commitment. These results illustrate the importance of job security in supporting loyalty and productivity in Nepalese academic institutions, emphasizing the necessity for proactive measures to improve job security to increase faculty members' organizational commitment.</p> <p><strong>Originality/Value: </strong>This study examines how quantitative and qualitative job security affects organizational commitment in Nepalese academic institutions, providing novel insights. It emphasizes the importance of job security in faculty commitment, emphasizing the necessity for focused interventions to improve qualitative and quantitative aspects of job security.</p> Binod Ghimire Rewan Kumar Dahal Dipendra Karki Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 14 27 10.3126/irjms.v8i1.60684 Optimum Portfolio Construction Using Single Index Model: An Empirical Study of Nepal Stock Exchange <p><strong>Purpose:</strong> The purpose of this paper is to construct the optimum portfolio of eight sectors listed in NEPSE applying the Sharpe’s single index model.</p> <p><strong>Design/Methodology/Approach:</strong> Adopting the judgement sampling method, eight sectors were selected for the study. The study period was taken from august 2018 to august 2021 for the three years period as this time frame is the recent bull period. During this period the market index increased from around 1100 to an all-time high index 3200. To construct the optimum portfolio, daily returns of the market and sectors were used. Cut off rate (C*) was calculated in order to form the optimum portfolio using daily basis data. Those sectors whose excess return to beta ratio is higher than cut off rate were included in the optimum portfolio.</p> <p><strong>Findings:</strong> The study revealed five sectors- non-life insurance, hydro power, finance, microfinance, and development bank-form the optimum portfolio. In terms of ratio of investment in the optimum portfolio, the proportion of investment is found higher in the finance sector (36.6%) and lower in the development bank sector (11%). Furthermore, in terms of unsystematic risk, non-life insurance (3.681) and hydro power sector (3.508) are found as risky sectors compared to other sectors. This study exclusively used the bull period data to form the optimum portfolio applying the Sharpe’s single index model in a daily basis data.</p> <p><strong>Implications:</strong> The finding can help the investors to make informed decisions aligned with their risk tolerance, return expectation and overall investment objectives.</p> Bal Krishna Khadka Umesh Rajopadhyaya Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 28 39 10.3126/irjms.v8i1.60686 Factors Affecting Brand Experience of Passenger Cars in Nepal <p><strong>Purpose</strong>- The major goal of the research was to examine the influence of car's attributes, car's price, car's appearance, brand personality of car and self-congruity on brand experience toward passenger cars.</p> <p><strong>Design/Methodology/Approach</strong>- Positivist epistemology with predetermined hypotheses was used in the study. A six-point Likert scale structured questionnaire was used for collection the primary data. The population of the study was all passenger car users in Nepal. The sample size was 411 passenger car users. A judgmental sampling technique was used. A causal research design was used for the study. The effect of independent variables on dependent variables was identified through path analysis using Structural Equation Modeling.</p> <p><strong>Findings</strong>- The result of the study showed that attributes, brand personality and self-congruity have significant positive impact on brand experience but price and appearance have no significant influence on brand experience for passenger cars in Nepal.</p> <p><strong>Originality/Value</strong>-The study's findings offer a guideline for future researchers and business people for development of market. The conclusive findings of the research will contribute to brand experience theory. The study offers valuable insights to manufacturers and sellers for understanding the consumer behavior and brand experience of customers regarding passenger cars.</p> <p><strong>Implications</strong>- The findings of the study help for designing of marketing strategies to manufacturer and sellers towards the passenger cars. The findings have implications for developing and implementing brand experience strategies. Theoretically, it infers that consumers are more emotional than rational for buying prestigious products.</p> Bharat Rai Ajaya Kumar Khadka Indira Shrestha Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 40 56 10.3126/irjms.v8i1.60687 Factors Affecting the Online Learning Outcomes of Higher Educational Institutions in Nepal <p><strong>Purpose: </strong>This study primarily aims to examine and evaluate the factors affecting the outcomes of online classes during the COVID-19 pandemic period among university students in Nepal. Similarly, this study investigated management students’ perception of online management courses and explored the presence of factors that help to generate online learning outcomes in management courses and devise an online learning outcomes model.</p> <p><strong>Methodology:</strong> Using a survey research design, the study applied a cross-sectional study in three out of eight universities that taught management courses. A purposive sampling method was applied to select the respondent students. Exploratory factor analysis was conducted to establish internal consistency and evidence of validity. To assess the responses to online classes, a multivariate linear regression analysis was used.</p> <p><strong>Findings: </strong>Digital pedagogy, learning environment, ICT knowledge, COVID-19 context, ICT-friendly University and curriculum, and outcomes were identified as the factors from exploratory factor analysis. The overall students’ perceptions of the online management course had high reliability with Cronbarch’s alpha of 0.941. However, only three factors; digital pedagogy, learning environment, and ICT friendliness of university and curriculum were found to be significant as per the regression analysis.</p> <p><strong>Originality/value: </strong>This study contributes to the management of higher educational institutions and the model can be used in future research. The findings will support on quality improvement of the online teaching mode.</p> <p><strong>Implications: </strong>Nepalese universities have to work on the development of ICT infrastructure and courses should be redesigned with ICT features in mind for effective online learning. Furthermore, Nepalese higher educational institutions should step forward for institutional transformation, especially by following an ICT-friendly curriculum and structure with a gradual introduction of digital pedagogy in its regular courses.</p> Bal Ram Duwal Copyright (c) 2023 Copyright Authers 2023-12-31 2023-12-31 8 1 57 70 10.3126/irjms.v8i1.60695 Determinants of NEPSE Index: Insights from ARDL Modeling <p><strong>Background: </strong>The stock market, acting as an economic barometer, crucially influences a nation's development by gauging its financial stability. In contrast, sustainable stock market indices have become vital in assessing listed companies' long-term viability and ESG performance.</p> <p><strong>Objectives: </strong>The research aims to uncover the influence of various macroeconomic factors (GDP growth, inflation, broad money supply) and bank-specific indicators (bank stability, funding risk, interest rate) on the NEPSE index.</p> <p><strong>Methods: </strong>This study delves into the determinants shaping the NEPSE index in Nepal, utilizing the autoregressive distributed lag (ARDL) model with annual time series data spanning from 1995 to 2022. The NEPSE index, as a measure of sustainable stock market performance, becomes crucial in understanding market dynamics. This study analyzes the impact of GDP growth, inflation, broad money supply (M2), and bank-specific indicators on the NEPSE index.</p> <p><strong>Results: </strong>The study found that the NEPSE index is positively influenced by GDP growth, broad money supply (M2), and bank stability (BSTAB). Policymakers are urged to focus on fostering GDP growth, implementing effective monetary policies, and enforcing robust banking regulations to create a conducive market atmosphere, thereby inspiring investor trust. Conversely, the study demonstrates that inflation and funding risk (FRISK) exert a negative and significant impact on the NEPSE index. Hence, policymakers and central banks are advised to closely monitor and manage these variables to ensure stability and investor confidence, thereby nurturing a healthy stock market environment.</p> <p><strong>Conclusion: </strong>There is a long-term equilibrium relationship between selected variables and the NEPSE index. Macroeconomic policies and bank-specific quality play an important role in the sustainable NEPSE index.</p> <p><strong>Implications: </strong>The outcomes of this research underscore the importance of maintaining stable inflation rates and effectively managing funding risks and interest rates. By doing so, regulators can facilitate a stable and conducive environment for stock market investments, encouraging economic growth and investor participation. These insights are invaluable for shaping effective policies and regulations, promoting a vibrant stock market, and fostering economic stability in Nepal.</p> Krishna Prasad Gwachha Sulochana Karmacharya Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 71 84 10.3126/irjms.v8i1.60697 Do Bank Mergers has Forgone or Undergone Value? From the Perspective of Investor <p><strong>Purpose: </strong>The purpose of the study is to explore banking industries investors’ perceptions about merged banks synergies “economies of scale, brand scope and market power “reaction to mergers.</p> <p><strong>Design/methodology/approach: </strong>Based on the descriptive research design, a quantitative survey was adopted and administered to 117 investors through judgmental sampling techniques. Structural Equation Modeling (SEM) was then utilized to evaluate the significance of direct and indirect relationships between the various factors under study.</p> <p><strong>Findings: </strong>The results confirm that the bank products &amp; services and prices affect positively similarly, brand strategy and sales channels affects positively to the perceived gain of investors after mergers.</p> <p><strong>Research limitations/implications: </strong>The absence of a longitudinal study measuring the post merger perception of investor is the main limitation of this study. Moreover, despite being insightful, the result of this study is generalized around small geographic area only.</p> <p><strong>Originality/value: </strong>This study is an initial attempt to fill the void in published information about the behavioral finance of bank mergers. It provides new empirical insights about the effect of post-merger performance perceived by investor’s perspective.</p> Neeta Thapa Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 85 94 10.3126/irjms.v8i1.60701 Pre and Post–Merger Financial Performance Analysis of Commercial Banks in Nepal <p><strong>Purpose: </strong>This study attempts to examine the effect of merger on the financial performance of Nepalese commercial banks.</p> <p><strong>Methodology: </strong>This paper employs a descriptive and causal comparative research design to examine the financial performance of commercial banks involved in six merger deals as of mid-July 2022, with a sample of four merger deals completed before mid-July 2018. Mean, standard deviation, paired sample t-test, Pearson correlation, regression analysis, and the VIF test, are utilized for data analysis. Financial performance is evaluated using nine key ratios (EPS, NWPS, P/E ratio, CD ratio, CAR, NPL ratio, ROA, ROE, and NPM). Secondary data covering six years (2010 to 2019), excluding the specific merging year, are analyzed.</p> <p><strong>Findings: </strong>The analysis of pre- and post-merger financial performance in the sample commercial banks revealed statistically significant differences in EPS, NWPS, ROA, and NPM. Positive correlations were observed between the pre- and post-merger periods for EPS, NWPS, CD ratio, CAR, NPL ratio, ROA, ROE, and NPM, excluding the P/E ratio. The merger proved beneficial for Nepalese commercial banks, leading to improved profitability in terms of EPS, ROA, and NPM in the post-merger phase. However, factors like CD ratio, CAR, and NPL ratio, regulated by the NRB, showed no significant changes post-merger. Although banks experienced increased P/E ratio and ROE, the impact was deemed insignificant. Notably, CAR had the most significant impact on both pre- and post-merger ROA.</p> <p><strong>Implication: </strong>The results derived from the study are relevant to managers for future merger decisions and can be used for the selection of a suitable partner for future merger activities.</p> <p><strong>Value: </strong>It contributes to a better understanding of the overall merger scenario in Nepalese banking sector, as well as the relationship between certain restrictions and merger.</p> Pitri Raj Adhikari Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 95 110 10.3126/irjms.v8i1.60703 Factors Influencing Consumer Satisfaction in Online Shopping: A Case of College Level Students <p><strong>Purpose </strong>- The purpose of this study is to examine the influence and relationship between product quality, information availability, and shipping cost with customer satisfaction among college-level students in Kathmandu Valley.</p> <p><strong>Design/methodology/approach </strong>– This research adopted the explanatory research design. The study targeted college-level students in Kathmandu Valley as a population. A total of 400 respondents were selected from the different colleges by using a convenience sampling technique. The questionnaire survey was applied to collect primary data. The study adopted cross tab, independent t-test, and correlation to analyze the data.</p> <p><strong>Findings </strong>- The study shows that customer satisfaction is influenced and associated with product quality, information availability, and shipping costs in online shopping. The availability of information is a major factor in customer satisfaction with online shopping. Online shopping companies must uphold reliable websites, ensuring accurate and up-to-date information about products and services to attract potential customers. Additionally, they need to maintain the standard of quality for retaining existing customers and meeting their expectations in enhancing the company's reputation.</p> <p><strong>Research limitation/implications </strong>- The study examines only three explanatory variables i.e., product quality, availability of information, and shipping cost so that future researchers can study other factors impacting customer satisfaction among college-level students of Kathmandu Valley in different geographic concentrations with new analytical tools.</p> <p><strong>Originality/value </strong>–The study targeted college-level students of Kathmandu Valley as population. The study is based on the Technology Acceptance Model (TAM), developed by Fred Davis in 1986 to measure the results.</p> Raju Bhai Manandhar Mahananda Chalise Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 111 122 10.3126/irjms.v8i1.60705 Farmers’ Satisfaction towards the Agriculture Insurance: A Case of Chitwan and Kaski Districts of Nepal <p><strong>Purpose:</strong> Subsidy based agriculture insurance schemes is flagship insurance program of Nepal which was started in Nepal one decade before. This paper aims to identify the factors influencing the satisfaction of agriculture insurance policyholders.</p> <p><strong>Design/Methodology/Approach: </strong>Primary data were collected in Bharatpur and Pokhara metropolis of Nepal using structured questionnaire among 400 agriculture insurance policyholders who have already received claims or whose claim was in settlement process or whose claim was rejected by the insurer. Sample was selected using purposive and cluster sampling methods. Data were analysed through Mean, ANOVA, Wilk's Lamda and MANOVA tools.</p> <p><strong>Findings: </strong>Age, landholding size, self-reported perception of insurance companies' service quality, and agriculture insurance types are insignificant while location of respondents, education level, food sufficiency of family, size of the farming, and respondents' assets are significant factors for policyholders' satisfaction towards the agriculture insurance. Timely settlement of claims increases the level of satisfaction. Nepal Insurance Authority and the Ministry of Agriculture Development need to review the existing directives to improve the agriculture insurance program. Insurance companies are suggested to offer prompt and quality services to policyholders and carry out educational campaign to increase customer awareness.</p> <p><strong>Originality/Value: </strong>The study identified pertinent variables significant and indifference to farmers' satisfaction towards agriculture insurance. It also digs out the role of financial and nonfinancial aspects of insurance services. The study opens the door for further research on similar issues to enhance the existing body of knowledge.</p> <p><strong>Implications: </strong>The demand for agriculture insurance is not increased significantly even large amount of subsidy in premium was provided. Present study may be useful to insurance companies, agents, regulators, the Ministry of Agriculture Development, researchers, and practitioners. The study can be used as a reference by managers of insurers to formulate the future strategies to enhance the agriculture insurance market.</p> Rabindra Ghimire Ramkrishna Chapagain Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 123 139 10.3126/irjms.v8i1.60707 Determinants of Risk Tolerance of Investors in Nepal <p><strong>Purpose: </strong>The main purpose of this study is to determine the different factors that affect the investors risk tolerance in Nepal.</p> <p><strong>Design/Methodology/Approach: </strong>In this study, descriptive and causal comparative research design has been used. The present study issued 100 questionnaires to the investors in the NEPSE within Kathmandu Valley, out of which 70 are usable and taken further in this study.</p> <p><strong>Findings: </strong>The findings show that demographic factors (age, gender, education and monthly income) and cultural factors (uncertainty avoidance, power distance) are statistically significant with the investor’s risk tolerance.</p> <p><strong>Policy Implications: </strong>Young investors are found to be more risk tolerant in this study, and with proper guidance and training to them on stock market, it helps for the stability of the stock market mechanism. Moreover, power distance and uncertainty avoidance are high in Nepal, where investors tend to be under the guidance of their seniors, and invest if they find it worthy enough for them, even if it's risky. Now, taking this as an opportunity, various relevant training sessions to investors can be done by the board itself in the aspect of ESG Investment, Valuable Investment.</p> <p><strong>Originality/Value: </strong>This research adds value by examining factors affecting risk tolerance among Nepali investors, blending demographics and cultural influences. It suggests the potential benefits of guiding young investors and leveraging cultural tendencies toward senior guidance for market stability</p> Sankarshan Gautam Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 140 153 10.3126/irjms.v8i1.60709 Enhancing Training Transfer: A Study of the Interrelationships among the Factors Associated with the Transfer of Training in Nepali Banking and Financial Institutions <p><strong>Purpose - </strong>The study examines the relationships of job demand, job resources, work engagement, motivation to transfer, and opportunity to transfer as key training-related workplace factors with training transfer and interrelationships among them in Nepali banking and financial institutions (BFIs).</p> <p><strong>Design/Methodology/Approach </strong>- This study applied a cross- sectional survey research design to collect responses from 250 bankers, consisting of a self-administered questionnaire. The respondents were selected using a purposive sampling method. Partial Least Square structural equation modeling (PLS-SEM) was applied to investigate the proposed model.</p> <p><strong>Findings </strong>- The findings highlight that motivation to transfer and opportunity to transfer have a significant relationship with training transfer. Job resources, job demand, and work engagement have an insignificant relationship with training transfer. Additionally, no significant association between job demand with motivation to transfer and opportunity to transfer was found. However, job resources have a positive relationship with motivation to transfer, opportunity to transfer, and work engagement. Similarly, work engagement is positively related to opportunity to transfer but has an insignificant relationship with motivation to transfer.</p> <p><strong>Originality/Value </strong>- The study presents the importance of training and effective training processes in the Nepali context, especially in BFIs. It reveals the essentiality of job characteristics and work engagement in the training process, which is crucial for organizational success.</p> <p><strong>Implications </strong>- The results are useful for managers and policymakers to focus on the transfer process to have a better implementation of training transfer. It helps to create a better learning culture in the organization which would be beneficial for employee development and organizational performance.</p> Shree Krishna Pokhrel Monika Kunwar Laxman Pokhrel Copyright (c) 2023 The Author(s) 2023-12-31 2023-12-31 8 1 154 168 10.3126/irjms.v8i1.60710