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Entrepreneurial Learning through peer net work

Proposal on Entrepreneurial Learning Through Peer Network     Research Overview The research will be focusing on peer networking in the context of entrepreneurial learning and the need to plan, execute as well as realize research approaches in weighing in primary and secondary research and the need to integrate resources of ideas, theories and evidences regarding peer network and entrepreneurial learning, the assimilation of research objectives and questions is essential for creating and organizing literature studies upon which the level of awareness is objective driven and provide causal link to such implications for practice and other domains. The presenting of background, problem statement, literature review, significance and methodology does assume successful research process complete with knowledge formation and genuine information, as to be presented in a planned manner. Research objectives For the research objectives, the following points need to be considered in order to have basis of questions deemed for literature undertaking <li class="MsoNormal" style="margin-bottom: 7.5pt"> To be able to provide understanding and detailed information about entrepreneurial learning and peer networking </li> <li class="MsoNormal" style="margin-bottom: 7.5pt">  To be able to review as well as synthesize relevant computer science and economics literature that relates to peer networks, </li> <li class="MsoNormal" style="margin-bottom: 7.5pt"> To raise ideal questions for researchers who are interested in realizing good entrepreneurial behavior of peer networks </li> <li class="MsoNormal" style="margin-bottom: 7.5pt"> To recognize different entrepreneurship learning in order to understand peer networks </li> Research questions An emerging body of research seeks to integrate entrepreneurship  into the study of peer networks. Significant questions to be addressed for this research will have to be the following: 1.       What does entrepreneurial learning is all about? Discuss its aspects/process 2.       How does peer networking be achieved in the assimilation of learning? What are some of the examples of peer networking that points to entrepreneurial spirit and idealism? Explain 3.       Why does entrepreneurial learning assume good grounds for realizing effective opportunities in such business? How does it function in peer networking? Provide indications 4.       How does research links to conceptual framework of entrepreneurial learning? How peer networks are adopted to achieve stable business drive? Literature overview For literature overview, it can be that “entrepreneurial learning is often described as a continuous process that facilitates the development of necessary knowledge for being effective in starting up and managing new ventures thus, starting point for studying the process of entrepreneurial learning could hence be to draw a distinction between the experience of entrepreneur and knowledge being acquired” ( 1994). Another, literature on entrepreneurial learning is the entrepreneurs’ amount of management experience. For example,   (1998) showed that entrepreneurs’ years of work experience increased their venture survival rates and reduced the likelihood of fresh venture failure. Moreover, considering that entrepreneurs often face uncertainty about the value of the goods and services that they plan to produce, it seems fair to assume that also industry-specific experience can have a strong influence on their development of entrepreneurial knowledge (2003; 2000). This implies that peer networking groups with prior experience in business industry often have better understanding of how to meet demand conditions in that marketplace, as industry experience provides information that others cannot gather it. Aside, it can be argued that entrepreneurs’ experiences can include various peer networking events, even if these networks are connected to the start up of innovative business are being related to experiences of fresh business venture ( 1985;  1985), and provide entrepreneur with inputs to develop entrepreneurial learning channels.   Research significance   The research significance can assume advances in theoretical knowledge of entrepreneurial learning by reviewing and synthesizing available research in conceptual framework that explains the process of entrepreneurial learning through peer networks, as the research will be utmost significant to fresh graduates who have the entrepreneurial spirit to start a business in collaboration with his/her peers or colleagues as well as to those neophyte business entrepreneurs who have the potential to keep business on a high note.         Research Methodology   The main research method for this study is the application of descriptive research upon which research sampling utilization is to be based in Sri Lanka. There is ample need to describe and apply certain model/framework that identify valuable components linking to entrepreneurial learning, onto peer networking experience, the effectiveness in recognizing and acting on entrepreneurial opportunities of newness to business. The need to integrate case studies regarding entrepreneurial learning through peer networking selecting samples of entrepreneurship sense in the Sri Lanka context and sample research, upon extensive efforts in investigating learning effects of entrepreneurs’ experience on peer networking to distinguish concept assumptions (2001;  1999).   Implications for Practice The review and synthesis of the literature suggest that entrepreneurship is primarily learned by experience and discovery, and that entrepreneurial learning should be conceived as lifelong process, where knowledge is continuously shaped as networking experience does take place ( 2000). Hence, the attempts in stimulating entrepreneurial activities through formal training and education are essential. There calls for further research on entrepreneurial learning in peer network realization upon developing useful field of study within entrepreneurship network domain to be known in the research approach.           Credit:ivythesis.typepad.com

Entrepreneurial Learning through peer net work

Proposal on Entrepreneurial Learning Through Peer Network Research Overview The research will be focusing on peer networking in t...

Research Proposal Essay Instructions on A Comparative Study of Consumers’ Attitude and Behaviour towards Online Fashion Shopping: Cross-Cultural Study of Malaysia and United Kingdom.

Requirement For Documentation-Investigation Report   Chapter 1: Introduction to the Study   ·         Background to the research ·         Review of past research work and identification of gaps ·         Research problems or research question ·         Aims and objectives ·         Justification for the research ·         Methodology ·         Conclusion Chapter 2: Literature Review   ·         Introduction ·         Domain Research -Findings by others -limitations and problems of the research -gaps in the topic -contribution to the body of knowledge that is relevant to the research -how I compares and contrasts with the positions developed by others -similar research ·         Technical Research ·         Conclusion Chapter 3: Research Methodology   ·         Introduction ·         Research Approach ·         Primary research ·         Ethical considerations ·         Conclusion     Instructions   1.                  Word count must be 4,000 2.                  Font type Must be in Times New Roman 3.                  Font size 12pts 4.                  Line Spacing 1.5-line spacing 5.                  Referencing method Harvard Name Systems of Referencing 6.                  Cited in the text Must 7.                  Reference List Must be arrange alphabetically 8.                  and the use of proper headings for topic separation is encouraged 9.                  Cheatings in the referencing Will be taken a serious action by the management           Credit:ivythesis.typepad.com

Research Proposal Essay Instructions on A Comparative Study of Consumers’ Attitude and Behaviour towards Online Fashion Shopping: Cross-Cultural Study of Malaysia and United Kingdom.

Requirement For Documentation-Investigation Report Chapter 1: Introduction to the Study · Backgrou...

Research Proposal on Importance of Foreign Direct Investment to Small Island States: The Case of Seychelles

Importance of Foreign Direct Investment to Small Island States: The Case of Seychelles   Chapter 1 Introduction   Background of the Research             Small island states generally refer to the states with a geographic area of less than 1,000 square kilometres and a total population of less than one million people. These have common characteristics with implications on the role of foreign direct investment. First, small island states have narrow economic base because of the limited range of resources. As such, it is common for small island states to develop abundant resources making the economy revolve around only a limited number of economic sectors such as tourism or financial services. Second, these also develop strong economic dependence on larger economic to gain markets as well as obtain investments. Third, the production systems of small island states experience strong vulnerabilities to internal and external economic issues because there is a limit to their ability to take advantage of economies of scale and the strong dependence on other economies. Fourth, there are strong connections between the economic, socio-cultural, and politico-legal systems of small island states leading to a ripple effect of issues arising in one system. (Ghina, 2003) Due to these characteristics, small island states greatly depend on foreign direct investment to keep the economy afloat. However, there are also differences in the situations of small island states, with some states in a better position more than other states. Developing small island states experience greater problems in managing limited resources, in depending on other states, in managing vulnerabilities of economic sectors, and in developing effective economic and socio-political infrastructures. This means that the relative importance of foreign direct investment to small island states also depends on their particular contexts such as regional location, extent of resources, effectiveness and stability of economic structures, strength and reach of trade linkages, stability of the political system, and role of culture. As such, the study considers the importance of foreign direct investment in the context of Seychelles, a developing small island state near mainland Africa, to explore the role and impact of foreign direct investment on developing small island states.   Problem Statement             There is general recognition of the importance of foreign direct investments to small island states but small island states are differently endowed and with different historical developments and systems so that to understand the relationship fully, there is need to consider the significance of foreign direct investments based on the specific context of particular small island states. Research Questions             To focus of the investigation is to address the following questions:             1. What are the strengths and vulnerabilities of small island states that determine   the need for foreign direct investments?             2. How do small island states obtain foreign direct investments?             3. How does foreign direct investment affect small island states?             4. How important is foreign direct investment to small island states   Research Objectives             The following research objectives guide the research process:             1. To discuss the operation of foreign direct investment on economies             2. To determine the specific role of foreign direct investment on small island states             3. To explore the role of foreign direct investment on Seychelles             4. To draw conclusions and implications on the importance of foreign direct investment on small island states   Significance of the Study             The study intends to contribute in filling information gap on the importance of foreign direct investments to developing small island states by using the case study method to draw in-depth information on Seychelles. Although many studies confirm the important role of foreign direct investment to small island states, there are limited studies considering the nature, extent and dynamics of the role of foreign direct investments given the specific contexts of particular developing small island states. Of the studies considering one or more small island states, the focus is on small island states specializing in offshore financial services. The study seeks to focus on developing small island states not providing offshore financial services. Organisation of Research             The study has five chapters reflecting the stages of the research process and supporting the readability of results. Chapter 1 introduces the study by providing the background or context of the study, research problem, research question, significance of the study, and organisation of the research. Chapter 2 contains the framework for the study by reviewing existing information on foreign direct investment, particularly the definition, dynamics of foreign direct investments in economies, role and impact of foreign direct investment in developing economies, and the role and impact of foreign direct investment on small island states. Chapter 3 discusses the approaches and methods is collecting and analysing data to address the research questions and achieve the objectives. Chapter 4 discusses the case of Seychelles, particularly its situation as a small island state contiguous to Africa, its engagement in foreign direct investment, and the importance of foreign direct investment to the economy. Chapter 5 provides a summary of the results, conclusions relative to the research questions and objectives, and recommendations for future research.   Chapter 2 Literature Review   Definition of Foreign Direct Investment             Foreign direct investment has a general and specific conceptualisation. Brooks, Fan & Sumulong, 2003) defined foreign direct investment as the flow of capital from one firm in one economy to another firm in another economy. This constitutes the general concept of foreign direct investment. OECD (2008) defined foreign direct investment as a form of investment made with the objective of creating a long-term interest by a direct investor or direct enterprise based in one economy to a direct investment enterprise based in another economy. Long-term interest implies significant control, but not necessarily controlling interest, gained by direct investors or direct enterprises. This constitutes the specific conceptualisation of foreign direct investment.   Dynamics of Foreign Direct Investments in the Global Economy             The enhanced role of foreign direct investment was because of the globalisation and regionalisation trends. Globalisation meant lowering of trade barriers of different economies making it easier for investments to flow across markets. With various ways of benefiting from involvement in other economies, the flow of capital from one economy to another intensified. Access to raw materials and resources, cost savings from lower labour and operating cost, and expansion to other markets are benefits for investors to engage in foreign investments. (Dunning, 1993) Regionalisation expressed through membership in trade organisations resulting to market integration also made foreign direct investment appealing as a means of involvement in other economies by establishing long-term interests with expectation of high returns on investment. (Brewer & Young, 1997) In addition, national governments lost control of the traditional means of promoting local competitiveness because of the lowering of trade barriers. Exchange rate policies used to influence competitiveness diminished in importance. Governments turned to foreign direct investment as means of improving economies. (Barros & Cabral, 2000; Blomstrom, Kokko & Zejan, 2000) Foreign direct investment reflects the perspective of investors as well as the perspective of recipient firms and economies. Role and Impact of Foreign Direct Investments on Developing Economies             Foreign direct investment could improve welfare in developing economies. First benefit of foreign direct investment is the increase in output and income of the host economy. The investment of capital to different economic sectors increases the levels of production resulting to growth and expansion of business. This creates employment opportunities that in turn translate into income for households. With household incomes, spending increases that supports revenue generation for businesses. This goes on in a growing cycle of growth. Second benefit of foreign direct investment on developing economies is technological transfer. Since investors seek to optimise productivity of their investments, these are likely to introduce advanced equipment and systems in local business firms to boost performance. Third benefit of foreign direct investment is the enhancement of competition in the receiving economy. The increase in industry output relative to demand has a lowering impact on price, adding welfare to consumers. Fourth benefit is concurrent growth in domestic investment. Business growth influencing a cycle of growth encourages local investments. Fifth benefit is access to export markets via the investor when foreign investments pour into manufacturing operations targeting local consumption and exports. Sixth benefit is the alleviation of the foreign exchange gap, which occurs because of limited savings or limited foreign exchange. Foreign direct investment can influence both causes to stabilise foreign exchange. (Markusen & Venables, 1999)             However, there could also be adverse impacts of foreign direct investments. First is the capital flow into an industry where there is already a monopoly exported would increase output and reduce prices of exports resulting to negative welfare effects. Second, capital flows could affect weaker local business firms (Cooper, 2002).Third is the greater benefit to the source economy more than the host economy especially when foreign direct investment targets primary commodity exports leading to deterioration in the terms of trade of the host country. Fourth, foreign direct investments usually flow through developing countries abundant in resources but with weak infrastructures. Weak infrastructure makes the host economy susceptible to resource and market exploitation (French, 1998; Taylor, 2000).             Overall, the role of foreign direct investments on developing countries depends on the offsetting effect of benefits and adverse impacts. Benefits should outweigh the adverse effects but there would always be costs for the host economy. Even with positive effects on the economy, there would always be changes in the recipient economy.   Role and Impact of Foreign Direct Investments on Small Island States             Read (2004) explained that globalisation and regionalism are factors determining the growth of small island states. These factors determine growth in terms of the extent of foreign direct investment from other economies to support the development of industries, the existence of market for its industries, and support in the development of its economic and political infrastructures. Foreign direct investment plays a key role in the development of infrastructures through capital flows and indirectly, information and technology sharing as well as the growth of various industries revolving around the abundant resources in the economy.             However, Mellor (1997) also explained that globalisation create risks for small island states particularly the decline in exports because of competition from other economies able to trade the same products at lower costs. As such, the lowering of trade barriers would work to the disadvantage of small island states without sufficient economic infrastructures to support the competitiveness of exports and local industries.             Hampton and Christensen (2002) provided that one form of foreign direct investment that led to the growth of many small island economies came in the form of offshore finance. The entry of foreign direct investments through offshore finance highly depends on a sufficient and stable financial and banking infrastructure in small island states to attract this form of investment. The benefit for small island states is the existence of funds to support the growth of local industries in the form of loans as well as the creation of jobs especially in the banking sector. However, the downside is the concentration of economic activities in one industry creating risks.             Another form of foreign direct investment is through capital flows in the industries of small island states. Bräutigam and Woolcock (2001) propounded that not all small island states have strong financial infrastructures to attract offshore accounts. Baldacchino (2002) explained that some small island states primarily have cottage or small industries revolving around tourism services and small-scale manufacturing. As such, these small island economies cannot experience a similar benefit from foreign direct investment via offshore accounts. The benefit from capital flows is in the form of the acquisition of these small firms to comprise subsidiaries for foreign firms or via outsourcing of production to small island states. However, the downside is again the concentration of the development in industries conducive to the needs of foreign investors such as manufacturing and tourism. There would be an imbalance in the development of various industries.             Makola (2003) explained that in the case of African economies, the attraction of foreign direct investment is in the form of outsourcing of production by many global companies. One abundant resource in African countries is abundant labour resulting to the ability to offer labour at low prices. Even small island states forming part of the African region were able to draw significant foreign direct investment through low cost labour. In the short-term, the impact is the creation of employment opportunities in selected industries depending on the extent of skills development of the labour force. In the long-term, the positive impact is the provision of income for households and consumption and the adverse impact is again the limitation of growth in selected industries. If this happens, small island states need to enhance benefits from foreign direct investments to offset or even outweigh the adverse impacts.   Chapter 3 Methodology Research Design             The methodological framework applicable to the investigation of the importance of foreign direct investment in small island states follows the research onion model (Saunders, Lewis & Thornhill, 2003) shown the in Appendix. This model considers various methodological concerns in the research process.    Research Philosophy             The research adheres to the objective approach described as the perception of reality of social entities outside of social actions (Saunders, Lewis & Thornhill, 2003). This means that reality exists even without action from a social entity, which in the investigation is the researcher. The objective approach supports the research because the focus is on the structures, systems, processes and relationships revolving around the role and impact of foreign direct investment on Seychelles, a developing small island state. These are realities existing without the significant influence of the researcher. Objectivity also refers fact-based research process (Gill & Johnson 1997), which comprises the perspective of the researcher in the collection and analysis of data.   Research Approach             The study aligns with the inductive approach, which is the drawing of generalisations from a wide range of specific data, which in the research comprise of information on the overall situation of Seychelles, its economic infrastructures, and nature and extent of foreign direct investments. These would support interpretations on the role and impact of foreign direct investment in Seychelles and conclusions on the importance of foreign direct investments to developing island states.   Research Strategy             The research utilises case study as investigative strategy. Robson (2002) described the case study strategy as the empirical method of inquiry or “strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence” (p. 178). Yin (1984) also explained case study as the method of deriving evidence from a wide range of sources in support of a comprehensive understanding of situations. This applies to the study for two reasons. One, the focus of the study is the phenomenon of foreign direct investment in small island states. The other is the derivation of a wide range of information on the phenomenon in the specific context of Seychelles.   Methodological Choice             The choice of investigative methodology is mono method, particularly the qualitative method. Rubin and Rubin (2006) described the qualitative method as involving the process of coming up with detailed or in-depth descriptions or information on the phenomenon subject of the investigation. The use of a single method supports the study since the purpose is to derive thorough information to support conclusions on the importance of foreign direct investment to small island states.   Time Horizon             Cross-sectional is the study’s time perspective. Saunders, Lewis and Thornhill (2003) explained cross-sectional studies as the investigation at a certain point in time. This aligns with the study since the focus is to determine the importance of foreign direct investment to Seychelles at present or as of the time when data collection commences and concludes. Historical information on Seychelles comprises the context of the investigation. Data collection comprises a two-month period, which is short enough for the phenomenon not to change radically but long enough to allow comprehensive collection of data.   Techniques and Procedures             Data Requirements             The data requirement for the research comprises secondary data, which are information drawn for its intended purpose different from the current study. The reporting of secondary data could be as raw data such as statistics or as interpretations, conclusions and generalisations. Sources of secondary data are books, journals, papers and reports, and relevant online sources.             Data Collection Method             The method of collecting data is desk or secondary research. This pertains to the concurrent processes of collecting, integrating, classifying, interpreting and analysing data from secondary sources. This is the opposite of primary data collection, which derives data from key respondents. This is the appropriate strategy because the requirements and scope of the investigation encompasses the entire economy of Seychelles and the operation of foreign direct investment in Seychelles. The type of data required includes articles and books discussing the pertinent concepts, the results of previous studies, and official reports and statistics.             Data Analysis Method             The manner of analysing the data involves the identification of themes that would also comprise the sub-sections of the research report, drawing of implications on the phenomenon studies, and making of conclusion on the data found relative to the research questions and objectives. Deriving generalisations on the importance of foreign direct investments on developing small island states and small island states in general also comprise an analytical tool.  Validity and Reliability Issues             Research issues emerge relative to the choice of methodological framework. One issue is reliability explained by Easterby-Smith, Thorpe and Lowe (2002) as the degree that the selected approaches, strategies and methods lead to consistent results. The reliability issue in the study is researcher bias or degree of impartiality of the researcher during the research process. Since desk research is the method of data collection, the extent or range of information derived and interpretations greatly depend on the researcher. The resolution of the issue is by using a wide range of secondary sources to represent various perspectives. In this way, the perspective of the researcher finds balance with divergent perspectives resulting in less biased outcomes. Another issue is validity or the extent that findings reflect the phenomenon studied (Easterby-Smith, Thorpe & Lowe, 2002). Achieving valid data in the study is through the derivation of comprehensive data guided by the research questions and objectives. This ensures that derivation of an accurate understanding of the research phenomenon.        Timeline             The research process involves a six-month period as shown the table below. The collection of secondary data through desk or library research takes the longest time because this is critical aspect of the research.   1st month 2nd month 3rd month 4th month 5th month 6th month Draft of the Research Proposal             Approved Research Proposal             Desk/Library Research             Data Analysis             First Draft of the Research Report             Second Draft of the Research Report             Final Research Report               Chapter 4 Case Study Historical Development of Seychelles             The written history of Seychelles first emerged in 1502 through the accounts of Vasco da Gama, a Portuguese explorer. In 1742, a French expedition went to explore the island followed by another expedition in 1756. It was during this time that Seychelles received its name in honour of the then finance minister Moreau of Seychelles. The French first colonised the island. French immigrants brought their slaves and established agricultural production establishing the plantation industry with the intention of competing with the Dutch in the spice trade. To provide labour to the plantations, Seychelles was a destination of the African slave trade. Then in 1794, the rulership changes as Seychelles came under British control but with the government run in Mauritius. During the succeeding thirteen years, the rulership changed between the British and French through sea battles affecting economic development in the island. IN 1811, the series of wars ended with Seychelles falling under British occupation as a dependency of Mauritius. The Treaty of Paris in 1814 officially made Seychelles part of the British territory. In 1835, two significant events occurred, which are the abolition of slavery and the establishment of the Roman Catholic religion. In 1888, Seychelles ceased to be a dependency of Mauritius with the establishment of executive and administrative councils for the island. In 1897, the councils received power to govern Seychelles then n 1903 Seychelles became an autonomous British colony. (“Seychelles—History”, 2007)             The 1940s brought important political changes to Seychelles with the first election of the legislative council in 1948. In 1964, socialist and democratic parties emerged. By 1970, the elected leaders of Seychelles negotiated with Britain over the independence of the island together with the creation of its constitution. Finally, in 1976, Seychelles became an independent republic ruled through the parliamentary system and regained territorial control over the three smaller islands of Aldabra, Des Roches and Farquhar. Seychelles has a short history as an independent country by achieving independences a little more than thirty years. (“First Republic”, 2008)             During its initial years of independence, Seychelles experienced political and economic instability, a situation it shared with other newly independent African states. IN 1977, the Prime Minister France Rene deposed President James Mancham and made himself the new president. His programs aimed to redistribute wealth from the limited number of wealthy families to the greater population but this revolutionary stance led to the displacement of 10,000 people. In 1978, President Rene changed the constitution to establish a one-party system. In the next decade, many coup attempts with the help of mercenaries from South Africa sought to restore the deposed Mancham into office but these failed since President Rene found help from Tanzania. (“Second Republic”, 2008)             In 1991, pressures from the international community established the multi-party system expressed in the constitution of 1993. He successively ran for office and won for four consecutive terms. His presidency was responsible for the adoption of the free-market economy in the late 1990s. President Rene stepped down in 2004 and replaced by Vice President James Michel who remains as president at present. (“Third Republic”, 2008)      Situational Analysis (PESTLE)             Political Situation             Seychelles has achieved a stable political situation. Although there are criticisms over the state of democracy at Seychelles, its restoration of the multi-party systems and the cease of coups support a peaceful political system, albeit there is room for improvements. The ruling Constitution of Seychelles established in 1993 provides for democratic governance with the President and Vice President as the executive leaders, a 34-member legislature comprising a unicameral law making body, and a judiciary appointed by the executive. The president plays the role of head of the state and head of the government. The president’s term is for five years for a maximum of three terms. Twenty-five members of the legislature serve through popular mandate and the selection of the remaining nine members depend on the political parties winning a minimum of ten percent of popular votes depending on the proportion of votes obtained. The unicameral legislature consists of the 34-seat National Assembly. The members of the legislature also serve five years as representatives of Seychelles twenty- three districts. (“Seychelles—Government”, 2007)               Economic Situation             Seychelles has a developing and changing economy. Consistent with its economic history, the economy of Seychelles revolves around agricultural production. Seychelles grows various agricultural products including bananas, cassava, cinnamon coconuts, sweet potatoes, and vanilla. Fishing and boat building are also important economic industries in Seychelles. The tourism sector is a recently emerging industry since the post independence of Seychelles. Another developing sector is offshore finance as Seychelles starts to build its banking and finance infrastructures. These four industries comprise the economic backbone of Seychelles. Major exports of Seychelles include canned tuna, cinnamon bark, copra, frozen fish, and vanilla. All other food and non-food products and equipment needed by Seychelles comes from importation from Great Britain, France, South African, Saudi Arabia and Spain. (“Seychelles—Economy”, 2007)               Socio-Cultural Situation             Seychelles has a population of more than 80,000 people. The population is of mixed or multicultural descent with the people having African, French, Arab, South Asian, and Chinese ethnic backgrounds. More than eighty percent of the population of Seychelles adhere to the Roman Catholic religion with minority groups adhering to Christianity, Hinduism, and Islam. English is the official language but majority of the population speak Creole. (“Seychelles—Land and People”, 2007) Seychelles also has a relatively high literacy rate when compared to other African states and there is concurrently low level of unemployment (UNDP, 2008).               Technological Situation             Seychelles technological capability is still developing since it was only in September 2007 that the government approved the ICT policy for the country. Before the ICT policy, the technological capabilities of Seychelles revolved around marine research technologies funded by different private institutions and foreign aid. Foreign aid also funds its ICT policy. (“Seychelles launches ICT policy”, 2007) In addition, catering to tourists also led to the establishment of telephone lines. This means that Seychelles industries could benefit from technological transfers brought about by foreign direct investment.               Legal Situation             The regulatory environment for business in Seychelles has strong and weak points. The World Bank (2008) explained that existing laws and regulations in Seychelles provide incentives for investments in the areas of taxation, investment protection, property registration, business permits, and contract enforcement but create disincentives in the areas of closing a business, obtaining credit, employing workers, and overall ease of doing business. This means that similar to the regulatory framework in other African states, Seychelles needs to improve further its regulatory framework to support domestic business and draw foreign investments.               Environmental Situation             Seychelles has limited natural resources. The state is focusing on implementing marine biodiversity programs to ensure sustainability of its marine resources. Since one of the developing industries is tourism, Seychelles needs to focus on environmental conservation and sustainable development.   Nature of Foreign Direct Investment Needed             Based on the current situation and available resources of Seychelles, the foreign direct investment it needs to support the development of its tourism and offshore finance industries and other industries is in the form of transfer of physical, processes, skills and systems, and technologies through subsidiaries or joint ventures together with capital flows in terms of foreign exchange. Seychelles also have a food manufacturing industry so that the focus of foreign direct investments is likely to its tourism industry, offshore finance sector, and small food manufacturing industries.   Means of Obtaining Foreign Direct Investment             The process of obtaining foreign direct investments is through engagement in bilateral and unilateral trade agreements to promote the economy and its industries to other countries together, the development of the infrastructures needed to provide incentives for investors particularly improvements in its business regulatory regime, and building of the skills of its labour pool to support the labour resource needs of foreign investors. Focusing on incentives for investors would support the entry of foreign direct investment.     Impact of Foreign Direct Investment             The entry of foreign direct investment in the tourism, offshore finance, and food manufacturing sectors would provide benefits and drawbacks to the economy of Seychelles. Benefits include the creation of jobs, growth of industries, foreign exchange stability, and skills and technology transfer. Possible adverse effects include the decline in other sectors particularly agricultural sector resulting to unemployment. Limited or mismatch in skills of the labour pool from the agricultural sector with the demands of the growing industries would lead to the need for foreign labourers, which in effect would not address the unemployment and labour displacement problem. Nevertheless, since Seychelles has a high rate of literacy, it is easier for the state to retrain its workforce to address the skills level required by foreign investors. Nevertheless, having a skilled workforce could also become a problem for foreign investors relative to the cost of employment especially in the tourism sector and food manufacturing sectors. The relative consideration of the benefits and drawbacks would determine the extent of impact of foreign direct investment on Seychelles.   Importance of Foreign Direct Investment             Foreign direct investment is important to Seychelles in terms of providing capital directly to individual business firms or indirectly via loans through the banking and finance sector. The importance of foreign direct investment to Seychelles would be in terms of 1) its specific impact on growth in industries and 2) overall effect on the Seychelles economy. The importance would also consider the results of the weighing of the benefits and drawbacks.   Chapter 5 Conclusion Summary of Results             This would contain a summary of all the important points by integrating the literature review and the results of the case study. Conclusions             This would include implications of the results relative to the research questions and objectives. The research questions could comprise the sub-sections of this chapter. At the end, generalisations relative to Seychelles, developing small island states, and small island states in general. Recommendations for Future Research             Recommendations for future research include the expansion of the study to include a comparison of two or more developing small island states or the comparison of the role of foreign direct investments on developing and developed small island states.   References Baldacchino, G. (2002). The other way round: Manufacturing as an extension of services in small island states. Asia Pacific Viewpoint, 39(3), 267-279.   Barros. P. P., & Cabral, L. (2000). Competing for foreign direct investment Review of International Economics, 8, 360-371.   Blomström, M., Kokko, A., & Zejan, M. (2000). Foreign direct investment: Firm and host country strategies. London: Macmillan.   Bräutigam, D., & Woolcock, M. (2001). Small states in a global economy: The role of institutions in managing vulnerability and opportunity in small developing countries. Discussion Paper No. 2001/37. Helsinki: UNU-WIDER.   Brewer, T. L., & Young, S. (1997). Investment incentives and the international agenda. World Economy, 20, 175-198.   Brooks, D. H., Fan, E. X., & Sumulong, L. R. (2003). Foreign direct investment in developing Asia: Trends, effects, and likely issues for the forthcoming WTO negotiations. ERD Working Paper No. 38. Manila, PH: Asian Development Bank.   Cooper, R. N. (2002).Growth and inequality: The role of foreign trade and investment. In Annual World Bank Conference on Development Economics 2001/2002. World Bank, Washington, D. C.   Dunning, J. (1993). Multinational enterprises and the global economy. Reading, MA: Addison-Wesley Publication Company   Easterby-Smith, M., Thorpe, R., & Lowe, A. (2002). Management research: An introduction (2nd ed.). London: Sage Publications.   First Republic.(2008). Official Website of the Republic of Seychelles. Retrieved    November 28, 2008, from http://www.virtualseychelles.sc/pages/vs_ie.htm   French, H. (1998).Capital flows and environment. Foreign Policy in Focus, 3(22), 1-4.   Ghina, F. (2003). Sustainable development in small island developing states. Environment, Development and Sustainability, 5(1-2), 139-165. Gill, J., & Johnson, P. (1997). Research methods for manager (2nd ed.). London: Paul Chapman. Hampton, M. P., & Christensen, J. (2002). Offshore pariahs? Small island economies, tax havens, and the re-configuration of global finance. World Development, 30(9), 1657-1673. Makola, M. (2003). The attraction of the foreign direct investment (FDI) by the African countries. Biennial ESSA Conference. Sommerset West, Cape Town, 17-19 September 2003.   Markusen, J. R., & Venables, A. J. (1999). Foreign direct investment as a catalyst for industrial development. European Economic Review, 43, 335-356.   Mellor, C. S. (1997). Small pacific island states: Development of international trade. Pacific Economic Bulletin, 12(1), 72-83.   Organization for Economic Development and Cooperation (OECD). (2008). Glossary of foreign direct investment terms and definitions. Retrieved November 27, 2008, from http://www.oecd.org/dataoecd/56/1/2487495.pdf   Read, R. (2004). The implications of increasing globalization and regionalism for the economic growth of small island states. World Development, 32(2), 365-378.   Robson, C. (2002). Real world research (2nd ed.). Oxford: Blackwell Publishing.   Rubin, H., & Rubin, I. (2006). Qualitative interviewing: The art of hearing data Thousand Oaks, CA: Sage Publications.   Saunders, C., Lewis, P., & Thornhill, A. (2003). Research methods for business students             (3rd ed.). London: Prentice Hall Financial Times.   Second Republic. (2008). Official Website of the Republic of Seychelles. Retrieved          November 28, 2008, from http://www.virtualseychelles.sc/pages/vs_ie.htm   Seychelles—Government. (2007). The Columbia Electronic Encyclopedia, 6th ed. Retrieved November 28, 2008, from http://www.infoplease.com/ce6/world/A0935723.html   Seychelles—History. (2007). The Columbia Electronic Encyclopedia, 6th ed. Retrieved November 28, 2008, from http://www.infoplease.com/ce6/world/A0861047.html   Seychelles—Economy. (2007). The Columbia Electronic Encyclopedia, 6th ed. Retrieved November 28, 2008, from http://www.infoplease.com/ce6/world/A0935713.html   Seychelles—Land and People. (2007). The Columbia Electronic Encyclopedia, 6th ed. Retrieved November 28, 2008, from http://www.infoplease.com/ce6/world/A0935682.html   Taylor, C. T. (2000).The Impact of Host Country Government Policy on US Multinational Investment Decisions. World Economy, 23, 635-648.   The World Bank. (2008). Doing Business 2009: Country Profile Seychelles. Washington,   DC: The International Bank for Reconstruction and Development/The World         Bank.   Third Republic. (2008). Official Website of the Republic of Seychelles. Retrieved November 28, 2008, from http://www.virtualseychelles.sc/pages/vs_ie.htm   United Nations Development Programme. (2008). Human Development Report 2007/2008: Seychelles HDI Rank – 50. Retrieved November 28, 2008, from http://hdrstats.undp.org/countries/data_sheets/cty_ds_SYC.html   Yin, R. K. (1984). Case study research: Design and methods. Newbury Park, CA: Sage    Publications.       Appendix   Research Onion Model   Source: (Saunders, Lewis & Thornhill, 2003, p. 102) Credit:ivythesis.typepad.com

Research Proposal on Importance of Foreign Direct Investment to Small Island States: The Case of Seychelles

Importance of Foreign Direct Investment to Small Island States: The Case of Seychelles Chapter 1 Introduction Background of the Rese...

Chapter 1-3 Tourism Development in Hong Kong

Table of Contents     Chapter 1 Introduction. 3 1.1  Background. 3 1.1.1  Tourism Development in Hong Kong. 3 1.1.2        Hong Kong Shopping Tourism.. 5 1.1.3        Mainland Chinese Tourists. 6 1.2  Problem Statement 8 1.3  Research Objectives. 9 1.4 Significance of the Study. 10 Chapter 2 Literature Review.. 11 2.1 Tourism in Hong Kong. 11 2.2 Shopping tourism.. 13 2.3 Service Quality. 15 2.4 Tourists Satisfaction. 18 2.5 Importance-Performance Analysis (IPA) 21 2.6 Summary. 22 Chapter 3  Research Methodology. 24 3.1 Research Design. 24 3.2 Sampling. 25 3.3 Questionnaire Development 25 3.4  Measurement 27 3.5 Data Collection. 28 3.6 Data Analysis. 29 3.7 Limitations. 30 APPENDICES. 31 APPENDIX 1. 31 APPENDIX II. 32 References. 36     Table of Figures   Figure 1 Comparison of Actual Number of Visitors (Extract from Appendix I) 4 Figure 2 The Service Process Matrix (Schemenner 1993) 13 Figure 3 Importance-Performance Matrix (Martilla & James, 1977, p.78) 21   Table of Tables   Table 1 Spending Activities of Tourists in Hong Kong. 6         Chapter 1 Introduction 1.1  Background         1.1.1  Tourism Development in Hong Kong               Hong Kong is considered as one of the most successful regions in terms of tourism industry in the world. The city received a total of 25.25 million tourists’ visits in 2006, including the visitors from mainland China. It helped to generate a total of HK7.3 billion or US billion in income. Therefore it made the tourism industry as the second largest generator of foreign currency (Cochrane 2008, p. 260). In 2007, the industry showed a continuous increase in terms of the number of visitors. In September of the year, there are some 2,120,350 visitors that have arrived in Hong Kong, showing a great increase of 15.9% from previous rate, while the from January 1 up to present arrivals have reached 20,363,764, showing an increase of 9.6% year-on-year (Business Monitor International, 2008).             Hong Kong is known as the Shopping Paradise, attracting thousands of travellers from all over the world. It is one of the most important pillars of the economy of the city. The situation had improved due to the implementation of Individual Visit Scheme (IVS) of the government of China, which allows the citizen of mainland China, to visit Hong Kong in individual basis. Prior to that, people of mainland China, traveled by group or business visa. Since then, Hong Kong has become the favourite destination of Mainland Chinese tourists (Hong Kong Economic Times, 2006). The situation has created a tremendous business opportunities to the tourism industry of the city. In 2004, there are about 2.6 million of individual document holders from Chinese mainland that have visited the city since the implementation of the IVS. Furthermore, the scheme had already brought a total of HK.6 billon worth of revenues (People, 2004). According to the Hong Kong Tourism Board (2006), Mainland China reached 58.8% out of the total tourists in the city by the end of 2006 (see Appendix I).             The growing influence of the Mainland Chinese visitors is the primary reason why different players in the tourism industry is focusing on the behaviours, demands and desires of the Mainland Chinese visitors in the process of their decision-making. Figure 1 Comparison of Actual Number of Visitors (Extract from Appendix I)       1.1.2       Hong Kong Shopping Tourism               Shopping is considered as the most common and enjoyable activities undertaken by people during holidays. Due to the current growth and development of efficient transportation systems, the Internet, and widespread use of credit cards, people have been able to travel different places in order to go shopping (Timothy, 2005).             Shopping plays an important role in the field of tourism. This is due to the fact that for many tourists, an integral part or even the entire purpose of their travel or visit is shopping (Jansen-Verbeke,1998). In addition, shopping is a major time-use for many of the tourists, despite of their primary motivation for travel (as cited from Theobald, 1998).             Hong Kong’s primary attractions are its shopping industry and the scenery (Hudman & Jackson, 2002). The city is a duty-free port, it means that the imported goods are not taxed in the Special Administrative Region or SAR with exception of only few luxury products such as tobacco and alcohol. As the result, people can buy products in the SAR at a cheaper price compared with the price in other countries (Reiber, 2007). Hong Kong is considered as one of the most fascinating, product-diverse, and accommodating shopping destinations in the world. These are the reasons why the city has been dubbed as a shopper’s paradise and Hong Kong is synonym for shopping (Timothy, 2005; Hudman & Jackson, 2002). Every year thousands of people travel in the city in order to avail the most valued items for sale such as electronic equipment, cameras, watches, furniture, Chinese antiquities, and jewellery. The popularity of the items usually reflects the lower price tag in Hong Kong compare in other places in the world like Europe and North America. According to the study of the Department of Hotel and Tourism Management in 2001, 68% of the shoppers purchased clothing and footwear, 50% bought jewellery, accessories and gifts and 22% bought electronic gadgets. It is important to consider that the primary reason why the products dominated the market is due to the attractive price. On the other hand, the consumers are also considering the variety of goods, quality, fashion and even novelty in their buying behaviour (Timothy, 2005). 1.1.3        Mainland Chinese Tourists             Due to the closeness of mainland China and Hong Kong in terms of geography and even culture, the number of en route tourists from China is higher compare to other countries in the world (Qui Zhang, Pine & Lam, 2005). Thus, the increasing number of mainland Chinese tourists in the city can be identified as one of the most important factors contributing to the success and continuing growth of the Hong Kong tourism and entire economy.             Shopping in Hong Kong is one of the most important activities for the Mainland Chinese due to the fact that luxury goods in the city are about 10% to 20% cheaper compare to its selling price in Chin. The reason behind it is that the city is not implementing sales tax, compare to China that raised its taxes to the cosmetic products from 20% to 50% (Chan, 2008).             The fact can be seen from the statistics that have been released and reported by the Hong Kong Tourism Board that during the first half of 2008, the same-day visitors made up close to half of all the arrivals from the Mainland China from 41% of the last year (Chan, 2008). Furthermore, people from Mainland China believe that Hong Kong is a major trend setter in terms of fashion and style.             Tourists from mainland China, spend most of their money on shopping when they come to Hong Kong. During 1996, shopping took the 63% of the total expenditures. From 1996 to 2001, visitors in the city is spending more and more on shopping, that had increased to 64% during 2001 (Zhang & Pine, 2005, p. 74). This shows that shopping is considered as one of the most important motivation of the Mainland Chinese visitors in the city. Table 1 shows other important spending activities of tourists in Hong Kong. Table 1 Spending Activities of Tourists in Hong Kong     Adapted from: (Greasley 1998, p. 66)             The classification characteristics include the degree of labor intensity and a jointly measured degree of the customer interaction as well as equipment. The labor intensity can be defined as the ratio of labor cost to the plant and equipment. On the other hand, the customer interaction pertains on the degree where in the customer can intervene in the processes of the service.             The figure shows that retailing belongs to the lower left quadrant that tackles on the different firms that have a high degree of labor intensity. However, it has a low degree of interaction and customization. It shows that retailing business or retail shops requires a high content of time as well as effort with comparatively little plant as well as equipment cost, it can be said to be labor intense. Thus it shows that customers of retailing business will receive low degree of interaction, meaning that there will be an undifferentiated service provided in the labour-intensive environment. 2.3 Service Quality There may be different perceptions to quality and quality assurance. Crosby (1995) summarized his quality management philosophy as: 1) the definition of quality is conformance to requirements; 2) the system of quality is prevention; 3) the performance standard is zero defects; and 4) the measurement of quality is to price of non-conformance. On the other hand, Deming (Walton, 1986) defined quality in terms of customer satisfaction. He developed the concept of quality as a management activity using fourteen points for management to seek commitment and stewardship of quality, which can be regarded in terms of three broad philosophical categories – constancy of purpose, continual improvement, and cooperation between functions. Juran (2000) expressed his approach to quality in the form of Quality Trilogy that involves three basic processes – quality planning, quality control, and quality improvement. He identifies ten steps to quality: 1) build awareness of opportunities to improve; 2) set goals for improvement; 3) organize to reach goals; 4) provide training; 5) carry out projects to solve problems; 6) report progress; 7) give recognition; 8) communicate results; 9) keep scores; and 10) maintain momentum by making annual improvement part of the regular systems and processes. As the business environment evolves and competition becomes more acute, quality also takes on a broader perspective. Basically, the overall goal of quality is the achievement of customer satisfaction and market success leading to business excellence. As stated in the ISO 900 quality standards: 1) Business is a team work, in which everyone should know their part and play their part; 2) Management should establish a policy for quality attainment that is understood by all; 3) Activities need to be carried out in ways which are as effective and as efficient as possible for the business concerned; 4) Any management system must be dynamic, updated and monitored to cope with changes in business scopes and technologies (Peach, 1997). Quality system is not something imposed on top of other business systems; it is the system of the business (Juran, 2000). Quality is being seen as an increasingly important element in defining a service provision. It is an important basis that customers use for differentiating between competing services. The service quality can normally only be assessed once the service has been consumed, which is unlike a tangible good that can usually be assessed by examination (Palmer, 1998). Therefore, the purchase decision process for a service usually involves more risk than in the case of tangible goods.  It is not sufficient for a service provider to set quality standards according to assumptions of customer expectations. Customers often attach the quality of the service provider with the service being provided (Lovelock & Wirtz, 2003). This makes consistency in service quality even more complex and difficult. Many analysis of service quality has attempted to distinguish between objective measures of quality and measures, which are based on the more subjective perceptions of customers. Analysis of service quality is further complicated by the affect that production and consumption of a service generally occur simultaneously (Zeithaml, Berry & Parasuraman, 1996). It is important to meet the expectations of the customers in order to gain competitive advantage due to the fact that it can help to gain loyalty from the customers. That is why it is important for any firm and industry to focus on the different activities and plans that will help to understand and analyze the customer expectations. It can be done by conducting different researches that will focus on the quality service such as customer continuous customer surveys, formation of customer panels, transaction analysis, perception surveys, complaint analysis, employee research as well as industry research (Zeithaml, Berry & Parasuraman, 1993). This will enable the firm to know about what will motivates them to buy and avail of specific product and service.     2.4 Tourists Satisfaction Customer satisfaction is regarded as a post-consumption evaluation that depends on perceived quality or value, expectations and confirmation or disconfirmation in the deviation between actual and expected quality (Anderson, Fornell & Lehmann, 1994). Customer satisfaction is a complex human process, which involves cognitive and affective process, besides other psychological influences (Oh & Parks, 1997). Customer satisfaction involves need fulfilment, pleasure, displeasure, expectation-performance interactions, evaluation of the purchase, consumption experience, and evaluation of the benefits of consumption (Hunt, 1997). Customer satisfaction with total retail experience is a goal most retailers should target. They can listen to criticisms and adapt appropriately by gearing the overall mission and goals to customer satisfaction. If shoppers are satisfied, other corporate goals are more easily achievable (Berman & Evans, 2006). No matter what product or service is provided, customer satisfaction is always one of the important criteria that businesses would consider in formulating their strategies. Any deviation between customer expectation and customer experience would cause dissatisfaction. If the perceived performance of the product is below customer expectations, it would cause negative disconfirmation of expectation thus leading to disappointment and dissatisfaction of the customer. On the contrary, if the performance matches customer’s expectations, it would lead to neutral feeling (Oliver, 1980). The extent of discrepancy between customer’s expectations or desires and their perceptions of the quality of service is generated through word-of-mouth, personal needs, experience and external communications that influence customers’ expectations (Parasuraman, Zeithaml & Berry, 1990). Expectation is the desire or wants of customers, and what they feel a service provider should offer rather than would offer (Parasuraman, Zeithaml & Berry, 1990). The term expectation has been used to represent what customers ideally want, which is termed as normative expectation (Cove, 2004). The expectations component is designed to measure customers’ normative expectations (Parasuraman et al., 1990). It is viewed as predictions made by customer about what is likely to happen during a coming transaction or exchange (Zeithaml et al., 1993). Satisfied customers demonstrate considerable customer loyalty in respect of a product or service that they have already purchased previously from the same supplier (Yeon et al., 2006). Repeated purchases build and broaden a solid customer base. Therefore, loyal customers are in fact assets of a company.  Increasing customer satisfaction is an effective and efficient way to improve company performance and image, which may increase sales and build better reputation. It is apparent that satisfaction rating has close relation to the degree of company success (Anderson & Sullivan, 1993). Basically, customers perceive their experience with the service in terms of all the different actions of the employees of the service provider, which include the behaviours, knowledge, response, personality, attitude, communication skills, attire, and other attributes (Peppers & Rogers, 2005). In addition, the attributes of the company are also important. A customer can create value for a company by purchasing its service or products today, or repeat further purchases in the future (Peppers & Rogers, 2005). With customer loyalty, the company can expect higher “return on customer”, which is tracked by how much business the customer has given to the company throughout his lifetime (Peppers & Rogers, 2005).  2.5 Importance-Performance Analysis (IPA) Importance- Performance Analysis is one of the most useful forms in marketing research. The following figure illustrates a matrix demonstrating the combined information about customer perceptions and important ratings. It shows the gap between the customer expectations and perceptions.                       Figure 3 Importance-Performance Matrix (Martilla & James, 1977, p.78)       The top left quadrant indicates the area of highest leverage for service quality improvements, where importance is high while performance is low. The attributes in this quadrant have the most need for improvement. In the top right quadrant are the attributes to maintain. They are the ones that a company performs well and that are very important to customers. The low were two portraits contain attributes that are less important, some of which are performed well and others poorly. Neither of these quadrants merit as much attention in terms of service improvements as the upper two quadrants because customers are not as concerned about the attributes that are plotted in them as they are the attributes in upper two quadrants.     By identifying the attributes that are important to the customers from the quadrants and comparing with the experienced performance of the retail shops, it is possible to evaluate whether the customers have customer satisfaction with the retail or not. 2.6 Summary The above literatures reviewed the relationship between tourism and the businesses in Hong Kong. They further present the general situation in the retail shops, the importance of service quality and customer satisfaction to cooperate success. The chapter introduces a measurement tool – the importance-performance analysis, which can be used for evaluating and confirming the attributes and degree of customer satisfaction versus expectations in the retailing shops. The succeeding chapters will further explore the methodology and the findings attained based on the importance-performance analysis that will be adopted for this research.     Chapter 3  Research Methodology 3.1 Research Design This study is a descriptive research, which is a research that intends to show facts that concerns with the current status and situation, as it exists at the time of the study (Creswell, 1994). It also help to focus on the relationship and practices that exist, together with the beliefs and processes that are going on, thus affects things that are in demand or in trend. Furthermore, it can help to describe the current situation based on the impression and reactions of the respondents of the study (Creswell, 1994). Fundamentally, a descriptive research utilizes observations and surveys. That is the reason this approach was chosen by the researcher, whose intention is gather first hand data from respondents. Furthermore, it also allows flexible approach that when  new issues arise during the study, a further investigation can be conducted in order to fill the gap. Apart from this, the research will also be allowed to drop different unproductive areas of research from the original plan of the study. Above all, it will be fast and cost-effective. Primary data was collected directly from conveniently selected Mainland Chinese tourists through a set of questionnaire at various major tourist attraction spots where most Mainland China tourists like to visit. First of all, a pilot test was undertaken to test the wording, and time completing a questionnaire. Secondly, the final survey was conducted on a convenience sample. A total of 200 questionnaires was distributed and collected on the spot by the researcher. The questionnaire was designed in a way that was straightforward enough that respondents only needed to spend minimal time in the process (Creswell, 1994).  3.2 Sampling The target sample of this study is Mainland Chinese tourists. A total of 200 questionnaires were distributed to the target sample by convenience sampling. Convenience sampling is picked over types of probability sampling because it will make the survey faster and easier. The criteria for the sampling are that the respondents should be Chinese and tourist from China. These specific demographic requirements have been put in the study so as to make the results more specific. 3.3 Questionnaire Development The entire questionnaire was constructed in Mandarin, due to the fact that it is the official language in mainland China. In addition, because the respondents were chosen in convenience sampling and the research was interrupt their activities for the day, close-format questions were used in order to make it easier and faster for the respondents to answer. A ranking approach will also be used to measure the degree of importance and satisfaction level of the respondents on several statements. A five-point Likert Scale will be used in this measure. In the Likert technique, the degree of importance and irrelevance or satisfaction and dissatisfaction is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses (Underwood, 2004). The equivalent weights for the answers will be: Range                                     Interpretation 4.50 – 5.00                              Very Important/Very Satisfied 3.50 – 4.00                  Important/Satisfied 2.50 – 3.49                              Not Sure 1.50 – 2.49                              Unimportant/Dissatisfied 0.00 – 1.49                              Very Unimportant/Very Dissatisfied A survey instrument was created in order to gather the perception of the tourist’s shoppers regarding the importance of attributes as well as performance of the retail shops. The questionnaire will contained 40 questions that will help to rate the level of importance of the customer satisfaction. A self-administered questionnaire was used and conducted on the spot by the researcher. The questionnaire includes two parts. The first part will contain a set of attitude statements while the other part will intend to acquire the demographic profile of the respondents. The purpose of the set of attitude statements is to determine the level of importance and satisfaction level using a five-point Likert scale. In the Likert scale, the degree of importance is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses. (Underwood, 2004). Furthermore, the question will also ask for the overall rating of the shoppers regarding their satisfaction in the retail shops that they have visited. The Likert scale will be used in order to measure the said aspect. 3.4  Measurement This research will make use of the Importance-Performance Analysis to evaluate customer satisfaction and perceptions of Mainland China tourists for decision-makers in the retailing industry (Martilla & James, 1977). We often wonder why customers stop purchasing a particular product or service after a while. This is because there are different factors that must be considered in order to fully understand how the customer satisfaction affects the entire buying behaviour and their interest on the given product. Despite favourable customer satisfaction survey results, some companies still lose customers. Many companies have made a variety of customer satisfaction measurements in order to understand the complex behaviours of customers and capture a larger market share. These measurements usually involve surveying customers about the rating of a company’s products or services in terms of satisfaction dimensions using numerical scales. However, real customer satisfaction is based on much deeper values, which are developed by continual relationships and experiences between a company and its customers. Therefore, tracking and measuring real customer satisfaction is one of the most important objectives of companies.     The attributes of the questionnaire comes from the previous literature that have been gathered and review that tackles the same issue of subject. It also uses different online reactions, coming from blogs and forums that tackle the issue of shopping satisfaction (Yang, 1996; Tu, 2007). 3.5 Data Collection             Survey was chosen as the means to collect the primary data due to the fact that it can help to understand the audience as well as define the existence and magnitude of the problems. In addition the survey data can also help to determine the different issues that are related to the satisfaction of the tourists, together with the characteristics of the shopping tourism industry in Hong Kong (Commonwealth of Learning, 2000). The recruitment of respondents and the dissemination of the survey questionnaire will be conducted in four major shopping areas in the city, where most of the Mainland Chinese tourists often go. The four shopping areas are: Mongkok, Tokwawan, Sheung Wan and Causeway Bay.   3.6 Data Analysis All data will be evaluated using the latest SPSS software. The weighted mean and percentage of the responses will be calculated. The data results of the study will be analyzed by determining their corresponding frequency, percentage and weighted mean. The following statistical formulas will be used: 1.        Percentage – to determine the magnitude of the responses to the questionnaire. n % = ——– x 100         ;           n – number of responses                         N                                             N – total number of respondents 2.        Weighted Mean             f1x1 + f2x2  + f3x3 + f4x4  + f5x5 x= ———————————————  ;                                                   xt                                                                          where: f – weight given to each response                         x – number of responses                         xt – total number of responses   The importance and performance mean scores of each attribute in the questionnaire will be calculated and then plotted into two-dimensional grid with the vertical axis of importance values and a horizontal axis of the performances values. For positioning the crosshairs of the grid, the overall means of the importance as well as performance score were used. Thus, using the mean scores for the crosshair positioning is considered as more critical approach than using the middle point of the scale or some arbitrary point. The two-dimensional grid displayed the following four quadrants: Keep up the Good Work with high on importance scale and high on performance scale; Concentrate Here with high on importance scale and low on performance scale; Possible Overkill with low on importance scale and high on performance scale; and Low Priority with low on importance scale and high on performance (Okata, Lankford & Inui, n.d.). 3.7 Limitations The limitation of this study is that many potential sources of selection bias would occur as the interviewer has the full power to determine which respondent to interview. In addition, convenient samples can not represent any population, and this may limit the generalability of this study.     APPENDICES APPENDIX 1   COMPARISON OF TOTAL INBOUND VISITORS FROM CHINA AND ALL OTHER COUNTRIES TO HONG KONG   Year Visitors arriving from China Annual growth % Total visitors arriving from all other countries Annual growth % Share of China visitors % 1984 214,854 - 3,303,719 - 6.1 1985 308,978 43.8 3,656,717 10.0 7.8 1986 363,479 17.6 4,052,641 10.0 7.0 1987 484,592 33.3 4,917,044 17.5 9.0 1988 683,604 41.1 6,167,221 5.4 10.0 1989 730,408 6.8 5,984,501 -3.0 10.9 1990 754,376 3.3 6,580,850 10.0 10.3 1991 835,062 16.0 6,795,413 3.3 10.9 1992 1,149,002 31.3 8,010,524 17.9 12.5 1993 1,732,978 50.8 8,937,500 11.6 17.2 1994 1,943,678 12.2 9,331,156 4.4 17.2 1995 2,243,245 15.4 10,199,994 9.3 18.0 1996 2,311,184 3.0 10,662,580 4.5 17.8 1997 2,297,128 0.6 8,976,249 -15.8 20.4 1998 2,597,442 12.9 7,562,204 -15.8 25.6 1999 3,083,859 18.7 8,244,413 9.0 27.2 2000 3,785,845 22.8 9,273,632 12.5 29.0 2001 4,448,583 17.5 9,276,749 0.0 32.4 2002 6,825,200 53.4 9,741,182 5.0 41.2 2003 8,467,200 24.1 7,069,639 -27.4 54.5 2004 12,245,862 44.6 9,564,768 35.3 56.1 2005 12,541,400 2.4 10,818,017 13.1 53.7 2006 13,590,000 8.4 11,660,000 7.8 53.8 Compound growth/annum   20.7%   5.9%     Source     A Statistical Review of Tourism, 1984-2006, Hong Kong Tourism Board   APPENDIX II School of Hotel & Tourism Management The Hong Kong Polytechnic University 2008 Hong Kong Shopping Tourism  Questionnaire   The purpose of this survey is to assess Mainland Chinese tourists’ importance and satisfaction level towards Hong Kong retail shops. It is appreciated if you could spare 10 minutes of your time to participate in it. All provided information is used solely for academic purposes and your individual responses will be kept confidential.      <div align="center"> Part I – Respondents’ Service Importance and Satisfaction of Hong Kong Retail’s Shop Overall Please rate the importance of each attribute in your service encounter with retail shops by encircling the appropriate number in the scale provided: 5 – Very Important 4 – Important 3 – Not Sure 2 – Unimportant 1 – Very Unimportant N/A – not applicable           Service Attributes Please rate the satisfaction of each attribute in your service encounter with retail shops by encircling  the appropriate number in the scale provided: 5 – Very Satisfied 4 – Satisfied 3 – Not Sure 2 – Dissatisfied 1 – Very Dissatisfied N/A – not applicable             Tangible Qualities of Shops             5 4 3 2 1 N/A 1. Longer Opening Hours 5 4 3 2 1 N/A   5   4   3   2   1   N/A 2. Visually appealing external appearance of the store   5   4   3   2   1   N/A   5   4   3   2   1   N/A 3. Cleanliness and safety of the places and facilities   5   4   3   2   1   N/A 5 4 3 2 1 N/A 4. Lighting and Ambiance 5 4 3 2 1 N/A   5   4   3   2   1   N/A 5. Accessibility (near the transportation system)   5   4   3   2   1   N/A   5   4   3   2   1   N/A 6. Offers many variety of products   5   4   3   2   1   N/A 5 4 3 2 1 N/A 7. Authenticity 5 4 3 2 1 N/A 5 4 3 2 1 N/A 8. Choice of payment methods 5 4 3 2 1 N/A 5 4 3 2 1 N/A 9. Good Location 5 4 3 2 1 N/A             Staff Service Quality               5   4     3   2   1   N/A 10. Visually appealing external appearance of the staff (Clean and Neat)   5   4   3   2   1   N/A 5 4 3 2 1 N/A 11. Reliability and dependability of staff 5 4 3 2 1 N/A 5 4 3 2 1 N/A 12. Consistency of service by the staff 5 4 3 2 1 N/A   5   4   3   2   1   N/A 13. Know of products and attentions to the details   5   4   3   2   1   N/A 5 4 3 2 1 N/A 14. Provide service in timely manner 5 4 3 2 1 N/A   5   4   3   2   1   N/A 15. Courtesy, politeness and respect received by the shopper from the staff   5   4   3   2   1   N/A </div> <div align="center"> 5 4 3 2 1 N/A 16. Language Ability 5 4 3 2 1 N/A </div>     <div align="center"> Part II– Demographic profile   1. Sex   ¨ Male            ¨ Female   2. Age group   ¨ 25 – Below ¨ 26 – 35 ¨ 36 – 45        ¨ 46 – Above   3. You’re province/hometown in Mainland China: ____________________________   4. Is this your first time visiting Hong Kong?   ¨ Yes            ¨ No     5. If answer to item 4 is no, how many times do you usually visit each year?   ¨ Once           ¨ 2 to 3 times            ¨ 4 to 5 times  ¨ more than 5 times               6. What are your reasons in shopping in Hong Kong? (You may tick more than one)   ¨ Quality        ¨ Low Price ¨ Accessibility           ¨ Others: Please specify: ____________________________                     7. Which items you usually shop for in Hong Kong? (You may tick more than one)   ¨ Clothes       ¨ Accessories ¨ Footwear ¨ Electronic Gadgets ¨ Jewelry ¨ Others: Please specify: ____________________________   8. How much do you usually spend in shopping? Please select the appropriate range.   ¨ Less than RMB 5000 ¨ RMB5001 – 10000 ¨ RMB10001 – 20000 ¨ RMB20001 – 30000 ¨ RMB30001 and above </div>   Thank You Very Much for Your Time and Have a Nice Day! Enjoy Shopping!           References   Anderson, E.W., Fornel C. & Lehmann, J. (1994) A customer satisfaction research prospectus. In Rust, R.T., Oliver, R. (Eds.). Service quality: new directions in theory and practice. Sage Publication, Thousand Oaks, CA, pp.241-268.   Anderson, E.W. & Sullivan, M.W. 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Chapter 1-3 Tourism Development in Hong Kong

Table of Contents Chapter 1 Introduction . 3 1.1 Background . 3 1.1.1 Tourism Development in Hong Kong . 3 1.1.2 Hon...