Factors in Ownership Success

Abstract

This study is focused to identify the list of factors contributing in ownership success specifically when ownership comprises of individuals as partners. The study is mainly focused on relational aspect of the partners keeping in view if relationships are good then the partnership would be succeeded. Extensive review of the literature helped the researcher to find out the possible factors i.e. affective, normative and continuance commitment, coordination, interdependence, trust, shared vision, communication quality, information sharing, participation, constructive conflict resolution techniques, lower acceptance of negative feedback from employee by the partners about other partners, power based control and mutual influence, contributing in the success of partnership. Literature also helped to identify the success factors of the ownership i.e. partners’ satisfaction and profitability. A series of questionnaires on number of variables were adopted, modified or developed by the researcher. Modifications were introduced in the language to cater the cultural relativity. Moreover, keeping in view the literacy rate, the questionnaire was translated in local official language i.e. Urdu. Questionnaire was later on pretested and improved till the Cronbach Alpha raised to more than 0.7 showing internal consistency. To check the validity of the questionnaire principle factor analysis and confirmatory factor analysis were used. For the validation of the instrument Squared Multiple Correlation, Average Variance Extracted, Determination of Correlation Matrix, Kaiser-Meyer-Olkin, Measure of Sample Adequacy and Bartlett’s Test of Sphericity tests were used and all values were found well in range. Stratified random sampling was used and data was collected from the different cities of the province of Punjab. Total 2200 questionnaires were distributed out of which 1944 were found useful for the analysis purpose. For the normality analysis means, standard deviation, skewness, kurtosis and Mardia’s Coefficient was calculated and found the values well in range. Data analysis was carried out through SPSS 19, Sobel Calculator and AMOS 16. Analysis was comprised of descriptive analysis, reliability and validity analysis, normality analysis, correlation and shared variance, confirmatory factor analysis and structural model analysis. Further the data was tested for the hypotheses of moderation and mediation through multiple regression and Sobel test. Analysis revealed that power based control and acceptance of feedback about other owners have negative whereas all other factors except continuance commitment showed a positive influence on the ownership success. Trust and lower acceptance of employee feedback about other partners are the major contributors to the satisfaction of partners whereas normative commitment and avoidance of power based control are the major contributors to the profitability of the organization. Satisfaction partially mediates the relationship of affective commitment, normative commitment, shared vision, communication quality, information sharing and power based control with profitability of the organization. Further the analysis revealed that owners’ contribution moderates all three types of commitment, coordination and trust to satisfaction and profitability. Key Words: Attributes of Partnership, Communication Behavior, Conflict Resolution Techniques, Feedback, Power Based Control, Mutual Influence, Ownership Success, Satisfaction and Profitability