Vol 8 no 1 march 2016 by IJHSS

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IJHSS.NET

Vol. 8, No. 1

March 2016

International Journal of Humanities & Social Sciences

e-ISSN: p-ISSN:

1694-2639 1694-2620

AAJHSS.ORG Vol 8, No 1 – March 2016 Table of Contents Persuasive Advertising in E-commerce and Effective of it on Electronic Trading in Iran Ehsan Nezafati

Performing a task in the presence of others versus alone: An exploration of the social facilitation theory according to cognitive and behavioural perspectives Dr George Varvatsoulias

Setting the Strategic Direction and it’s Influence on Church Growth in Kenya Peter Mutua Mutia, Dr. George O. K’Aol and Dr. Paul Katuse

The multiplier effects of rural public investment and poverty alleviation implications: the case of federal university Ndufu Alike Ikwo (FUNAI) Paul C. Obidike and Kalu E. Uma

International Journal of Humanities and Social Sciences p-ISSN: 1694-2620 e-ISSN: 1694-2639 Vol. 8 No. 1, pp. 1-13, ÂŠIJHSS

Persuasive Advertising in E-commerce and Effective of it on Electronic Trading in Iran Ehsan Nezafati Master Student of MBA (Master of Business Administration), Istanbul Aydin University, Istanbul, Turkey. Abstract The intention of this survey is to understand the effectiveness of Location, Type, Addresses and Temptation on Online Advertising and effect of Message on Electronic Trading. Persuasive Advertising in e-commerce, is the subject of this research which tried to test and understand it to push customer forward with advertising in cyberspace to purchasing. In this century, competition among big companies is so high and they follow policies to provoke customer to buy only their products. This policies may not be successful, unless in cyberspace advertising is not used as an instrument for persuading customers to buy since this century is century of information communication technology (ICT). All companies and people deal with internet. In this situation, no company would neglect this reality. All companies must recognize and pay attention for implementation of these instruments to raise their electronic trade volume. Internet offers much more opportunities for advertising than classical advertising styles. Nowadays with diminish the size of gadget like cell phone and popularity of social network, any companies must be optimistic about it. We reach these questions that, is it reasonable to believe that informational advertising is acceptable, however, that persuasive advertising is not acceptable in Iran. In this research, the main aim is to find our main factors of persuasion in advertising for electronic trading like, location, type, addresses, message, temptation and diversity of online advertising. All the factors, has explicit effect on persuasion and advertising, generally. However, in this research, field analysis has been made to evaluate the effects of these persuasive advertising factors on purchasing decision of persons who are active users of internet and electronic trade web sites in Iran. Although, there is large literature on advertising and the relationship between the advertising and electronic trade, this study will be the first studying on the relationship between the main determinants of persuasive advertising and its effect on electronic trade. Mainly, at the end of the research made, this result showed that all of these factors have positive effect of advertising persuasion and customer satisfied them to purchase in Iran as well as the countries around the world. Keywords: e-commerce, internet advertising, persuasive advertising in e-commerce, advertising, online advertising Introduction In this research, the main aim is to find our main factors of persuasion in advertising for electronic trading like, location, type, addresses, message, temptation and diversity of online advertising. All these factors, has positive effect on advertising and persuasion, in general. 1

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However, in this research, field analysis has been made to measure the effects of these persuasive advertising factors on the purchasing decision of the people who are active users of internet and electronic trade web sites in Iran. Although, there is large literature on advertising and the relationship between the advertising and electronic trade, this study will be the first studying on the relationship between the main determinants of persuasive advertising and its effect on electronic trade. In the competitive and changing environment of business in which retailers‟ power and customers‟ demand is increasing constantly, it is very critical and essential for the success of manufacturers to make long term relations with their customers. The studies of persuasiveness shown that price is a very essential variable for retailers when choosing their suppliers, other variables like the quality and product of services play a main role when customers decide to buy (Giovanis et al, 2013). Personal effect has also expanded in cyberspace in the form of online interpersonal effect or electronic word of mouth (Khammash & Havard, 2011).

In other definition advertising is effectiveness technique on human behavior by manipulating the appearance of things which may be in audio, written, video or music form. A general concept of advertising is delivering message to others through making relationship with the aim of changing knowledge, viewpoint and behavior of addressees (Sourin & Tankard, 2006). Advertisement is a tool for influence and change. According to websites with online advertisements have considerable impacts on customers‟ aware, motive, and behavioral reactions (Dailey 2004) (Eroglu et al, 2001). Advertisers expectation to build brand consciousness and produce favorable and accepted attitudes by way of cyberspace advertisements (Wu et al, 2014). Recent empirical evidence about internet and services, shows that around 80% of users of internet are appealed to personalized services (Kobsa, 2007). Personalized service is a mutual acting procedure in which a salesman supplies related adaptation content established upon customers „precedence (Miceli et al, 2007). Among the many features of retail which are online, the mainly apparent one is the inaccessibility of close touch between customer and goods, which is available in tangible shop; thus the decision of consumers‟ purchase depends merely on information of online product (Agatza et al, 2008). Therefore electronic-tailers search for supplying customers with mainly product information which is available, so as to dominate on the restriction and make able the customers to save time of shopping and the cost of transportation. Whereas, meanwhile, corporeal retailers even now get pleasure from great number of faithful customers who have hardship to buy online products, or just reluctant to do cyber shopping (Cai, 2010). Most of people in online shopping inclined to say their personal experience sensitive for specific products on the internet. A lot of proofs indicate that this opinion-rich data produced by customers extremely effects on the purchase purpose of others (Lin et al, 2011). Another reason of persuasive advertising is changing behavior and attitude of customer to purchasing. So that, try to change behavior and attitude of customer is another aim of persuasive advertising. Sponsoring of advertising by retailers is stimulated by the literature on cooperative advertising, searching to describe why manufacturers repay retailers to advertise and why they emphasis on it and spend huge money for it. For instance, IBM and Apple spend huge amount of money per year on reducing their franchisees to advance the products (Xie & Wei, 2009). Entire spending on cooperative advertising in U.S. companies indicate a tendency of swift development over the late years (Nagler, 2006) (Yan, 2010). There is now a general agreement among the examiners that the appeal cooperative advertising is owing to the various among domestic and national advertising (Bergen & John, 1997) (Karray & Zaccour, 2006). In general, persuasive advertising rises the customers‟ tending to pay for the product and therefore transfers the curve of demand product. Literature Review In the literature, in many models, advertising is a tool which rises either the intensity of demand (all level of price) or the amount customers are subject to pay for a product. According to this 2

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representation of advertising, many models predict a positive association between advertising and prices (Soberman, 2004). In their studies Lewis and Reiley (2008) found out that online advertising has positive and significant effects on offline and online sales. Lewis (2010) in his doctoral thesis investigated the effect of online advertising on offline and online sales. The results of the research showed that online advertising has positive and significant effect on online and offline sales. It‟s so clear that this path has great future and we can be hopeful about it and we can focusing on it with lower risk and higher benefit. Gochani and Eghbal (2013) in their paper investigated the effect of different types of media advertisement as a marketing strategy on auto buyers‟ behavior. The type of the research was descriptive- survey and findings were of applied type. The method of data collection and recording was library based and the subjects were chosen from among Tehran citizens. Jalilian, Ebrahimi and Mahmoudian (2012), among university students, investigated the impact of electronic word of mouth advertising on consumers buying intention through brand equity based on customer. The findings revealed that electronic word of mouth advertising affects aspects of brand equity, brand equity except brand awareness and buying intention. Electronic word of mouth advertising through brand equity affects buying intention. Sayyar Rezvan (2007) in his paper discussed the role of advertisement development on Iran‟s electronic trading. The researcher tried to explain the effect of advertising in Iran on improvement and quality of business activities in electronic form. Also by focusing on electronic trading in different online stores, b2b and online discount stores, each one of them is explained. Fallahi and Dehghani (2011) investigated the mutual relation between advertising, market concentration and profitability in industries of Iran. The results showed that advertising influence on profitability. Rabiee, Mohammadian and Baradaran Jamili (2011) investigated the efficiency of Parsian Bank advertising activities in Tehran and recognizing the most important factors in improving the efficiency. The findings of the study, which was a descriptive-survey study and data were collected using questioner, revealed that the bank‟s commercials on TV newspaper not only successfully passed stages of AIDA model, but also had efficiency. Comparative investigation of efficiency rate of media advertisement shows that in customers‟ opinion television has been the most effective media in customer acquisition. Newspaper takes the next place. Furthermore, customers think that the most effective factor in improving efficiency of bank ad is being truthful and real in advertisements. They also believe that employees‟ good manner and respect is the most important factor in customer acquisition. They mention to TV and then newspaper as the most available media for advertising because they spend most of their time with these media. They believe that TV and radio have high quality standards, and for the bank‟s coming ad suggested respectively TV and newspaper. Hejazi, Heydar Poor and Hasan Zadeh (2010) investigated advertisement cost and market value. The Regression Analysis was used in the paper so may the rate of advertisement effect as an independent variable on market value as a dependent variable, becomes clear. For testing the study hypotheses the information of financial statements of accepted companies in Tehran Stock Exchange from the year 2002 to 2006, were used. The findings showed that increasing ad cost, escalate market value of the company.

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Mira and Herisi (2012) studied the effect of media and non-media advertising on specific value of brand equity. According to the results of analysis, the effect of brand awareness on the mentioned industry was rejected. Sales promotion without transfer pricing, sales promotion with transfer pricing and business advertisement were respectively the most effective on specific value of brand. Business advertisement is the most efficient in loyalty to brand, and the non-media advertising on sales promotion with transfer pricing and without transfer pricing, are both very effective on brand quality perceive. Roger Leroy Miller (1975) notes that, "The first category (of advertising) is informative advertising, which presumably is always good, and the second is competitive (persuasive) which presumably is always bad". Siavashi and Abedin (2009) studied the view and reaction of people about receiving advertising messages in the age of information technology and communications. The results showed that cell phone users‟ view was relatively positive. This finding, which is in contrary with the results of many other studies in other parts of the world, is considerable. The researchers of the study believe that this is maybe because of novelty of this media in Iran. In the cyberspace, Eroglu, Machleit and Davis (2001, 2003) conceptualized and check the interactions among atmospheric keys of online shopping and aware and motivated reactions in addition to behavior of customers. Method Materials Data has been gathered through an organized questionnaire advanced on a five-point scale. For testing the hypothesis of the research, managed a questionnaire (Appendix A). Hypothesis In order to the study‟s test of hypothesis,  Hypothesis 1: internet advertising has positive and significant effect on electronic trading in Iran  Hypothesis 2: The place of advertisement has significant effect on electronic trading  Hypothesis 3: The type of advertisement has significant effect on electronic trading  Hypothesis 4: The addressees of advertisement have significant effect on electronic trading  Hypothesis 5: The temptation of advertisement has significant effect on electronic trading  Hypothesis 6: The message has significant effect on electronic trading Methodology The present research is an applied research, because it is looking for performing a scientific method and using it in real world to solve problems. Regarding method it is a descriptive-survey research. In the present research by using library resources and review of the literature a theoretical framework about advertising and electronic trading, was proposed. In this framework, confirmatory factor analysis will be used to investigate structure validity and in the end path analysis will be used to test research hypotheses. The researcher has constructed a questionnaire according to the hypothesis dimensions. In gathering information, main sources have been considered as population sample. The questionnaire embraced and united from different researches, used to gather call for information 4

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hypotheses in order to accept or deny it (table 1). Questions‟ reliability which tested by Cronbach's Alpha and outcome indicated that each one of them were above 0.9 suggesting pleasant questionnaire‟s reliability which guided by exploring earlier experts and researches' recommendation. Each one of the questions were classified on a five-point scale of Likert from ''very low'' (1) to ''very high'' (5). Table 1 Source

Variable

Question No.

IAB, 2012

Location

1 to 5

Tutaj&Van Reijmersdal, 2014

Type

6 to 10

McCambley, 2013

Message

11 to 15

Jansen & Mullen, 2008

Addresses

16 to 20

Braun, 2011

Temptation

21 to 25

Conceptual Model Here, in this research, the model proposed by Ray Funkhouser and Richard Parker have been applied. They published their model in the articles called “An Action Based Theory of Persuasion in Marketing” at the Journal of Theory and Practice (Funkhouser & Parker, 1999).

•Online Advertising

•Electronic Trading

•Location •Type •Addresses •Temptation

•(Message)

Figure 1 The procedure of the present survey in terms of intention is an applied research and in terms of data collection is a case study. Other secondary sources such as books, papers, theses, internet and databases are used for collecting data and information. Questioner is used for collecting the needed information and data to investigate the research hypotheses. Data Collection In the present research library and field methods were used to collect data. Library resources were used as base to write the theoretical framework of research and field method was used to collect information from population by questionnaire. Therefore data collection tool of the research is questionnaire. The questionnaire which determines effective factors on technology transition, consists of 25 questions of answer package type, and is written in 5 parts based on Likert five-option scale (very low to very high). The questionnaire is available in attachment of research. 5

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Finally 534 questionnaires were usable to asses. The people who answered were 50.2% male and 49.8% female (Table 2). This survey began in 2014 and it takes time about more than 8 month. Table 2 Variable

Frequency

Percentage

19-24

101

18.91

25-36

296

55.43

37-53

137

25.66

Men

268

50.2

Women

266

49.8

Lower than High School Diploma

1.9

Diploma and Associate degree

11.6

Bachelorâ&#x20AC;&#x;s degree

228

42.7

Masterâ&#x20AC;&#x;s degree

215

40.3

Doctoral degree

3.5

Age

Gender

Education

The statistical population of the present research includes all Iranian social network users, who are daily involved with internet and internet purchases. To collect data questionnaire in electronic format will be used. The questionnaire after validity and reliability confirmation will be multiplied to the chosen sample size using Morgan table and will be completed by the investigated statistical sample. Sampling method of the present research is convenience random sampling. Because population size is considered unlimited therefore sample size is 384 individuals. In this survey, the questionnaire have been asked to 384 person that they were chosen randomly, and tried to choose people who covered all part of age spectrum for this research and indicated this way is much better and help to rise the result of survey and increase the accuracy of outcomes, therefore asked all across range for age and education. Fortunately, all of them answered and could save time in this case, they are the sample of all part of society. Furthermore, in this thesis added 150 people of Iranian who lives in Istanbul by electronic questionnaire to gather more information. In this survey tried to gathering people with different education and age to covering all parts, most of them selecting from Razi University in Iran and Aydin university in Turkey. In Iran the people who selected covering all part of education from under diploma to doctoral, but in Turkey the people who selected belonging to bachelor and master and doctoral education. Questionnaire send by email to people in Iran and using survey monkey and sending the link of it to the people in Turkey.

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Data Analysis and Result In this survey to understand this data is appropriate for analysis‟s factor, analysis of principal component has been guided. According to the KMO sample adequacy statistics (0,942) all of the 25 variables are suitable for factor analysis, and for the Bartlett‟s Sphericity test Chi Square statistics (t=44493, df=300, p=0,000<0.05), null hypothesis “correlation matrix of variables are identify matrix” is rejected. Table 3 Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity

,942

Approx. Chi-Square

44493,099

300

Sig.

,000

According to this Table all factors have a significance number smaller than 0.05 Null hypothesis is rejected (µ≤3) and hypothesis 1 (3<µ) is confirmed. If both high level and low level are positive, this means that intended factor is in good condition, such as factor of “place” related to advertising location, “type” related to advertisement type, “address” related to advertisement addresses, “message” related to advertisement message and “temptation” related to temptation power of advertisement. Table 4 Test Value = 3

place type address message temptation

t 43.394 44.622 37.626 41.406 37.860

df 528 522 533 522 532

Sig. (2-tailed) .000 .000 .000 .000 .000

Mean Difference 1.512 1.522 1.406 1.457 1.441

95% Confidence Interval of the Difference Lower Upper 1.44 1.58 1.45 1.59 1.33 1.48 1.39 1.53 1.37 1.52

The regression analysis with stepwise method has been conducted with message is as dependent variable and place, type, address and temptation are as independent variables. The following tables has been shown as results of the analysis of regression. Table 5 Model R 2 .985a

R Square .969

Adjusted R Square .969

Std. Error of the Estimate .130

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Table 6 Model 1 Regression

Sum of Squares df 276.254 4

Mean Square F 69.063 4107.301

Residual

8.710

518

.017

Total

284.964

522

Sig. .000b

a. Dependent Variable: message b. Predictors: (Constant), temptation, address, type, place According to these Tables, the model and R2 of regression model is significant (F=4107,301; p=0.000<0.005) and is equal to 0,969 which is quite high (approximate to the 1). And the independent variables can explain the %98.5 of variability of dependent variable. Table 7

Model 1 (Constant)

Standardized Unstandardized Coefficients Coefficients B Std. Error Beta

t 7.500

Sig. .000

.283

.038

place

.760

.037

.773

20.478

.000

type

.139

.032

.136

4.383

.000

temptation

.320

.031

.349

10.395

.000

According to this Table, all of independent variable except address â&#x20AC;&#x201C;place, type, temptation â&#x20AC;&#x201C;are significant to explain the dependent variable. Address is not fit in this model, therefore stepwise method has removed it from coefficients table. The coefficient of place (0.760), type (0.139) and temptation (0.320) are significantly different from 0 (p=0.000<0.05). It means, these coefficients are significant and can be used to explain the dependent variable, message. The coefficient for address (0.044) is not significantly different from 0 (p=0.069>0.05). The model can be expressed as following; đ?&#x2018;&#x161;đ?&#x2018;&#x2019;đ?&#x2018; đ?&#x2018; đ?&#x2018;&#x17D;đ?&#x2018;&#x201D;đ?&#x2018;&#x2019; = 0.760. đ?&#x2018;?đ?&#x2018;&#x2122;đ?&#x2018;&#x17D;đ?&#x2018;?đ?&#x2018;&#x2019; + 0.139. đ?&#x2018;Ąđ?&#x2018;Śđ?&#x2018;?đ?&#x2018;&#x2019; + 0.320. đ?&#x2018;Ąđ?&#x2018;&#x2019;đ?&#x2018;&#x161;đ?&#x2018;?đ?&#x2018;Ąđ?&#x2018;&#x17D;đ?&#x2018;Ąđ?&#x2018;&#x2013;đ?&#x2018;&#x153;đ?&#x2018;&#x203A; + 0.283 + đ?&#x2018;&#x2019; According to the standardized coefficients, place (b=0.773) has more importance than others, in explaining the message variable. Secondary questions: ď&#x201A;ˇ Does the message of advertisement have significant effect on electronic trading? According to results obtained from analyses, advertisement message has significant effect on electronic trading through newness of advertisement message, explicitness of advertisement, relatedness of advertisement message and shortness of advertisement message. It has substituted to the electronic trading. It means that, the message has been used as the score of electronic trading. ď&#x201A;ˇ Does advertisement placement have significant and positive effect on electronic trading? 8

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According to results obtained from analyses, place of advertisement has positive and significant effect on electronic trading through indices such as popular advertising websites, placing advertisements on first pages of search engines, placing advertisements in websites having topics related with advertisement topic, and placing advertisement in a suitable place of site. And its effect is much more powerful than the others on explaining the electronic trading.  Does the type of advertisement have significant and positive effect on electronic trading? According to results obtained from analyses, type of advertisement has positive and significant effect on electronic trading through written advertisement, graphic advertisement, audio advertisement, click advertisement and email advertisement.  Does the temptation power of advertisement have significant effect on electronic trading? According to results obtained from analyses, advertisement temptation has positive and significant effect on electronic trading through advertisement message satisfaction power, understandability of advertisement, motivation power of advertisement message and effectiveness of advertisement message.  Do the addressees of advertisement have significant and positive effect on electronic trading? According to results obtained from analyses, addresses of advertisement have positive and significant effect on electronic trading through target addresses, public addresses, potential addresses and actual addresses. However, its effect is not as much as the others, and it has been discarded from the regression model. According to these results obtained from all analyses, internet advertisement has positive and significant effect on electronic trading through place of advertisement, temptation of advertisement, advertisement addresses, advertisement message and advertisement type. Discussion This research has limitation which are: 1) There are a lot of causes, influencing on online advertising and electronic trading. Except, because of time compels, and couldn‟t examine all factors impacting on electronic trading and online advertising. 2) Due to questionnaire using as data collecting means, the respondents cannot answering these questions of questionnaire precisely as their view and want. 3) Problem of distance. Some of people who randomly selected was not near use to asking them more and more about some defecate, so that, it would be obligatory to accepting their view about questionnaire and respondent of it as they wants. 4) Failure to access all respondents at the same time and at designated time. Applicable Recommendations In order to improve electronic trading though internet advertisement, specialists must give attention to advertisement place, temptation, addresses, message, and type of advertisement to make it much more effective and influence. Advertisement placement has positive and significant effect on electronic trading, therefore experts must investigate aspects of this issue and identify suitable places; and pay attention to indices such as popular advertising websites, placing advertisements on first pages of search engines, placing advertisements in websites having topics related with advertisement topic, and placing advertisement in a suitable place of site. Advertisement type has positive and significant effect on electronic trading therefore experts must investigate aspects of this issue and identify conditions of advertisement type and consider indices such as written advertisement, graphic advertisement, audio advertisement, click advertisement and email advertisement.

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Advertisement addresses have positive and significant effect on electronic trading therefore experts must investigate aspects of this issue and identify advertisement addresses and consider indices such as target addresses, public addresses, potential addresses and actual addresses. Advertisement message has positive and significant effect on electronic trading, therefore, experts must investigate aspects of this issue and identify advertisement message and consider indices newness of advertisement message, explicitness of advertisement, relatedness of advertisement and shortness of advertisement message. Temptation power of advertisement has positive and significant effect on electronic trading therefore experts must investigate aspects of this issue and identify advertisement temptation and consider indices such as advertisement message satisfaction power, understandability of advertisement, motivation power of advertisement message and effectiveness of advertisement message. Recommendations to Further Researches Redoing this research in other countries, to understand similarity and differentiation of it with this research and can increase accuracy of it to make it much useful. Redoing this research to another situation if it be possible or with another portion of people with different categorization to increase accuracy of it. Identifying other components and aspects in order to investigate the effect of internet advertisement on electronic trading to show that what component is more effective and much influence about advertising in electronic trading. Conclusion When questionnaires are distributed, data are collected for model test and examining factors and sub-factors. Then first effectiveness of each one of sub-factors is investigated and then the effects of model components on each other are recognized. Result shows that all factors which considered have positive effects and indicated close relationship between internet advertising and electronic trading, and is advertisement creators wants to create the best advertisement on cyberspace must considering these factors to have efficiency and effectively advertisement on the internet to make the best electronic trading. The results emphasis on the reality of this hypothesis and its true, and importance of it and also show that in this research obtained the result which wanted. If it does as vice versa about hypothesis, the relationship between internet advertisement and electronic trading getting negative and doesn‟t have a good expectation to rise it up. References Agatza, N., Fleischmann, M., & Nunena, J. (2008). E-fulfillment and Multi-channel distribution-a review. Eur J Oper Res, 339–356. Bergen, M., & John, G. (1997). Understanding Cooperative Advertising Participation Rates in Conventional Channels. Journal of Marketing Research, 357–369. Braun, M. (2011). Measuring Online Advertising Effectiveness. Cai, G. (2010). Channel Selection and Coordination in Dualchannel Supply Chains. j retail, 22–36. Dailey, L. (2004). Navigational Web Atmospherics: Explaining the Influence of Restrictive Navigation Cues. Journal of Business Research, 795–803. Eroglu, S. A., Machleit, K. A., & Davis, L. M. (2001). Atmospheric Qualities of Online Retailing: A Conceptual Model and Implications. Journal of Business Research, 177–184.

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Eroglu, S. A., Machleit, K. A., & Davis, L. M. (2003). Empirical Testing of a Model of Online Store Atmospherics and Shopper Responses. Psychology and Marketing, 139–150. Fallahi, F., & Dehghani, A. (2011). Evaluation of the Impact of the Degree of Centralization and Advertising Costs on the Profitability in the Industry Sector of Iran. Journal of ScienceResearch, research on growth and economic development. Funkhouser, R., & Parker, R. (1999). An Action Based Theory of Persuasion in Marketing. Journal of Marketing Theory and Practice, 27-40. Giovanis, A., Tomaras, P., & Zondiros, D. (2013). Suppliers Logistics Service Quality Performance and Its Effect on Retailers‟ Behavioral Intentions. The 2nd International Conference on Integrated Information (pp. 302 – 309). Social and Behavioral Sciences. Gochani, H., & Eghbal. (2013). Investigating the Effect of Different Advertisements of Media as Advertisement Marketing Strategy on Auto Buyers Behavior. Marketing Management. Hejazi, R., Heydar Poor, F., & Hasan Zadeh, M. (2010). Advertising Cost and Market Value. Prospects of Business Administration. IAB. (2012). Internet Advertising Revenue Report. PricewaterhouseCoopers. Iran, S. C. (2014, November 12). Retrieved from National Port of Iran: http://www.amar.org.ir/ Jalilian, Ebrahimi, & Mahmoudian. (2012). The Effect of Electronic Word of Mouth Advertisement on Consumers Buying Intention Through Specific Value of Brand Equity Based on Customer Among University Students. Business Administration, 41- 64. Jansen, B. J., & Mullen, T. (2008). Sponsored search: An overview of the concept, history, and technology. International Journal of Electronic Business, 114–131. Karray, S., & Zaccour, G. (2006). Could Co-op Advertising be a Manufacturer‟s Counterstrategy to Store Brands? Journal of Business Research, 1008–1015. Khammash, M., & Havard, G. (2011). Arrivederci CIAO.com, Buongiorno Bing.com'Electronic word-of-mouth (eWOM), antecedences and consequences. International Journal of Information Management, 82–87. Kobsa, A. (2007). Privacy-Enhanced Personalization. Communication of the Acm, 24-33. Lewis, R. A. (2010). Mesuring the Effect of Online Advertising on Human Behavior Using Natural and Field Experiments. Thesis for Phd. Lewis, R. A., & Reiley, D. H. (2008). Does retail advertising work? Measuring the effects of advertising on sales via a controlled experiment on yahoo! Massachusetts Institute of Technology. Lin, C. L., Lee, S. H., & Horng, D. J. (2011). The Effects of Online Reviews on Purchasing Intention: The Moderating Role of Need for Cognition. Soc Behav Personal, 71–82. McCambley, J. (2013). Stop Selling Ads and Do Something Useful. HBR Blog Network. Miceli, G., Ricotta, F., & Costabile, M. (2007). Customizing Customization: A Conceptual Framework for Interactive Personalization. Journal of Interactive Marketing, 6-25. Miller, R. L. (1975). Economic Issues for Consumers. st. paul. minn: west publishing co. Mira, S. A., & Karimi Harisi, S. (2012). Assessment of the Media Effects and Non-Media Advertising on the Specific Value of Trade Name and Brand Equity. Business Administration. Nagler, M. G. (2006). An Exploratory Analysis of the Determinants of Cooperative Advertising Participation Rates. Marketing Letters, 91–102. Rabiee, A., Mohammadian, M., & Baradaran Jamili, B. (2011). Evaluating advertizing effectiveness of parsian bank and identifying the factors with most influence on its improvement in the city of tehran. 17-40. Sayyar Rezvan, N. (2007). The Role of Advertisement Expansion on Electronic Trading of Iran. The Fourth National Conference of Electronic Trading. tehran.

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Siavashi, M., & Abedin, B. (2009). Assessment of the View and Reaction of People Regarding Receiving Advertising Messages in the Age of Information Technology and Communications. Journal of Information Technology Management, 53-68. Soberman, D. A. (2004). Additional Learning and Implications on the Role of Informative Advertising. Management Science, 1744-1750. Sourin, V., & Tankard, J. (2006). Social Relations Theories. tehran: tehran university press. Tutaj, K., & Van Reijmersdal, E. (2014). Effects of Online Advertising Format and Persuasion Knowledge on Audience Reactions. Taylor & Francis Online. Wu, P. F., Zhang, P., & Tang, J. (2014). Categorizing Consumer Behavioral Responses and Artifact Design Features: The Case of Online Advertising. Information Systems Frontiers, 513-532. Xie, J., & Wei, J. C. (2009). Coordinating Advertising and Pricing in a Manufacturer Retailer Channel. European Journal of Operational Research, 785â&#x20AC;&#x201C;791. Yan, R. (2010). Cooperative Advertising, Pricing Strategy and Firm Performance in the Emarketing Age. Journal of the Academy of Marketing Science, 510â&#x20AC;&#x201C;519. Appendix A Questionnaire Part 1: Demography What is your gender? Male O Female O How old are you?

What is your literature degree? Under Diploma O Diploma O Associate O Bachelor O Master O Doctoral O Part 2: Scale of Persuasive Internet Advertising on E-Commerce Very Low (1), Low (2), Average (3), High (4), Very High (5) 1 2 3 4 5 1. Using advertisements in massive traffic advertising sites influences on electronic trading 2. Advertising on the first page of the motor search has positive effect on electronic trading 3. Advertising in the sites relevant to the subject of advertisement and variety of it has positive effect on electronic trading 4. The place of advertisement and variety of it in the site has positive effect on the electronic trading 5. Advertising on the internet and variety of it has positive effect on the electronic trading 6. Text advertisement and variety of it has positive effect on electronic trading 7. Graphic advertisement and variety of it has positive effect on electronic trading 8. Sonic advertisement and variety of it has positive effect on electronic trading

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9. Click advertisement has positive effect on electronic trading 10. Email advertisement and variety of it has positive effect on electronic trading 11. Special audience /target of advertisement have positive effect on electronic trading 12. General audience / target of advertisement and variety of it have positive effect on electronic trading 13. Potential audience of advertisements and variety of it have positive effect on electronic trading 14. Active audience of advertisement have positive effect on electronic trading 15. Persuasiveness of the message in advertisements and variety of it have positive effect on the electronic trading 16. Frankness of the message in advertisements have positive effect on the electronic trading 17. Relevancy of the message in advertisements have positive effect on the electronic trading 18. Shortness of the message in advertisements and variety of it have positive effect on the electronic trading 19. Persuasiveness of the graphic in advertisements and variety of it have positive effect on the electronic trading 20. Understandability of the message in advertisements and variety of it have positive effect on the electronic trading 21. Motivations of the message in advertisements and variety of it have positive effect on the electronic trading 22. Impressiveness of the message in advertisements have positive effect on the electronic trading 23. Size of the message in advertisements and variety of it have positive effect on the electronic trading 24. Frequency of the message in advertisements and variety of it have positive effect on the electronic trading 25. Repetition of the message in advertisements and variety of it have positive effect on the electronic trading

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International Journal of Humanities and Social Sciences p-ISSN: 1694-2620 e-ISSN: 1694-2639 Vol. 8 No. 1, pp. 14-31, ©IJHSS

Performing a task in the presence of others versus alone: An exploration of the social facilitation theory according to cognitive and behavioural perspectives Dr George Varvatsoulias QTS FHEA PGCertHE CPsychol CSci AFBPsS CBT Practitioner RAPPS RoPSiP Expert Witness High Intensity CBT Therapist Merton IAPT/South London UK Abstract This empirical study deals with the theory of social facilitation. It presents and discusses the idea of performing a task in an audience versus a non-audience condition. To understand the hypothesis of the theory, there was conducted a within-participants study. Participants were asked to complete a star-drawing task by using their non-dominant hand. Half of participants completed the task in the observed condition and half of them in the non-observed one. Then, conditions were counter-performed, in order participants to complete the task in both ways. Through this task has been questioned the prediction how people perform in both conditions in terms of a cognitive-behavioural framework, i.e. how and whether the task performed was subject to cognitive elements of choice (decision-making) and vice versa. People in the observed condition were more motivated to complete the task –thereby, the element of choice as a behaviour affecting decision-making-, than in the non-observed. The error ratings, participants had scored in both conditions, distinguish that people tend to achieve more error scores when performing a task in the presence of others, i.e. when observed by others and what effect that has on decision-making; while they score lower in the non-presence condition, meaning that decision-making as a cognitive element of choice is an important aspect before a particular action to be performed. Also, participants perform better if that is a known task –decision-making as an element one to make a stable cognitive choice-, instead of a novel or complex one –where cognitive choice could be affected by performance observation. Keywords: social facilitation theory, performance of a task, cognitive-behavioural therapy (CBT) Introduction The social facilitation theory is a theory of many aspects. Each one contributes to the same hypothesis, even examining it from a different point of view. As an indication are mentioned the social facilitation aspects of Triplett (1898), Allport (1920), Dashiell (1930), James & Gilbert (1955), Zajonc (1965, 1980), Wheeler & Davis (1967), Henchy & Glass (1968), Zajonc et al. (1969), Cottrell (1972), Zentall & Levine (1972), Borden (1975), Laughlin & Wong-McCarthy (1975), Baumeister (1982), Bond (1982), Carven & Scheier (1978, 1981, 1982), Bond & Titus (1983), Baron (1986), Guerin (1993), Blascovich et al. (1999), Aiello & Douthitt (2001) and 14

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many others. Although, not all of the above refer to social facilitation directly, they do explain aspects relating to that. Such aspects include understandings about facilitation effects and impairment levels, emotions as performance impediments, interpretations about audience observations, pressure under the competition with co-actors, exercises regarding the potential value of individual perception, discussions concerning dominant responses, when a task is performed versus possible inhibitions during that performance, and so on. In this introduction, there will be presented three approaches, for they are considered to be as more referential in the field. These will be, the Triplett‟s one (1898), the one by Zajonc (1965) and the other by Aiello and Douthitt (2001)1. The social facilitation theory has a history of almost 120 years and was first induced by Norman Triplett (1898) in his article: “The dynamogenic factors in pacemaking and competition”. In that article, Triplett attempted to explain the topic of Pacemaking and Competition. In order to discuss that subject and relate it to the aspect of social facilitation, he conducted two experiments. The first was about bicycle racers and the second about children turning a fishing reel. In the first experiment, he presented a chart with three curves: the lower represented the record of distances given in the non-paced efforts against time; the middle curve represented the paced race against time and the upper curve the best time in competition races (Appendix 1)2. The second one constituted of six trials, each of which had been practiced prior to conducting the main experiment. There were 20 subjects (children) taken part in the following order: first, there was a trial alone, then, a trial by competition and finally, the six efforts, three in the alone condition and three in the competition condition. After both experiments, he concluded that cyclists were performing their task faster, when with others versus cycling alone, whilst children were reeled faster when fishing with others, than otherwise. He also concluded that during both experiments the presence of others as co-actors, in relation to the individuals performing both tasks, was enhancing the performance of the rivals participating, thereby summarizing that, performance is different to a person, when it is acted with others instead being performed alone (Appendix 2: letter „a‟ stands for alone; letter „c‟ stands for competition). The other presentation of social facilitation theory comes from Robert B. Zajonc (1965) through his article: “Social Facilitation: A solution is suggested for an old unresolved social psychological problem”. Zajonc in his paper discusses the aspect of individual influences between actors and he looks to interpret the impact coming out of social relationships. He believes that the forms ensuing from relationships are very difficult to be explored, for they depend on inter-individual effects of each other‟s behaviour, as well as on aspects of competition and conformity to same or different group norms. Social facilitation theory, for him, refers to attempts made towards explaining inter-individual effects. He discusses the performance of people under various kinds of social norms and adaptability. Audience effects and co-action effects is the understanding of social facilitation, according to his respect. The social facilitation theory is related for him to the observation of behaviour taking place before passive presents. On the other, it refers to an active involvement of both the individual and others when performing the same terminus. For Zajonc, people engaged on a task in the presence of others are likely more adept towards performing a task than otherwise.

References to the theory of social facilitation complete around 1990s. Explanation to this is this theory is not continued to be studied or researched simply because the understanding of it refers to behavioural aspects of observation and not cognitive ones. In the present paper, my aim is to show that cognitive elements to observation are important too, for they explain how behaviours in performing tasks take place. 2 All appendices (apart from No. 4) refer to the tables used by the named authors of the papers. The reason is readers to have a look to the variables of the studies as well as the inferential results authors came across. 1

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The final article, written by John R. Aiello and Elizabeth A. Douthitt (2001) is titled: “Social facilitation from Triplett to electronic performance monitoring”. It discusses what up today has been said and proposed on that theory, as well their personal understanding and suggestions on the issue involved. The understanding of social facilitation in that paper refers to the personal performance skills, when others are absent compared to be present. Social facilitation hypothesis for them challenges a person‟s adjustment with or without others, when performing a task. Social facilitation deals also with performance impairments, when the task needed to be worked out can be considered as difficult as well-cognitively organized in order to be completed. For this theory to be accurately understood, it is taken into account a person‟s apprehension and evaluation of the task, as well as a number of potential mediators towards that objective. Such mediators are drives and cognitive processes, as well as trait factors that challenge the stability or not of a personality. Aiello and Douthitt consider that the aspect of social facilitation is currently impaired in itself, for it is limited to elaborate its understandings, because of the many and different parts of the theory in this field. In their article, they present a brief history of the theory. They describe many of its relative aspects, so to discuss where the theory in itself stands today. They also criticize the theory and describe its problems. On the other hand, they provide an account of its framework for future research and conclude their presentation by discussing the idea of electronic performance monitoring which extends social facilitation theory to contemporary human workplace (Appendix 3). In cognitive-behavioural therapy, decision-making explains cognitive elements of choice related to particular actions. Decision-making processes differ when choices on tasks are performed in the presence of others versus alone (Yechiam et al., 2008). When individuals perform tasks on their own, thinking is triggering decision-making processes that are susceptible to choices of minimized success (Ariel, 2014). When individuals perform a task in the presence of others, thinking is triggering decision-making choices that enhance achievement and success (Mihyeon, 2011). In the first case, decision-making influences the outcome of the task; in the second, decision-making is influenced by performance anxiety, the outcome of which relies in the likeness or not of others (Newell & Shanks, 2014). Decision-making in a cognitivebehavioural perspective refers also to the idea of core beliefs individuals find themselves subject to. By „core beliefs‟, it is meant one‟s understanding of oneself subject to personal schemas and early experiences which continue to influence an individual in the here-and-now, such as „I‟m a failure‟, „I am not good enough‟, „I am unlovable‟, etc. Core beliefs also explain one‟s understanding how others see him/her, such as „others think I am stupid‟, as well as one‟s relationship to one‟s current environment –the environment one lives-, such as „the world is against me‟, etc. The context of „me, me and others, me and the environment‟ is the framework where decision-making takes place and whether problem-solving is believed to be effective or not (Wills & Sanders, 2013). In this research, what will be attempted would be to investigate whether decision-making and choice have an impact on the performance of a task with or without the presence of social facilitation. For this reason, the hypothesis to be tested will question whether social facilitation theory refers to the aspect of performing a task with and/or without the presence of others. It will therefore be proposed that, people performing a task are likely more capable of doing that in the presence of others than carrying it all out by themselves. In this consideration, it is predicted that once the individual is familiar with the task, the inhibitions arousing by performing it before others will be less or none, and not the opposite. In line with the former, an individual performing before others „succeeds‟ in more error scores versus alone. Also, by experiencing none or less inhibitions by efficiently performing the task, one is likely more vulnerable in „stepping back from success‟, when the task is unfamiliar to oneself, thereby the concept of impairment and its connection to the theory of social facilitation (Uziel, 2007). 16

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Method Participants Participants were students recruited from the UEL (University of East London), as well as personal contacts. Their mean age is 31 years. The number of males taking part was 8, whilst the number of females 24. There were more female participants compared to males the reason being the random sampling process followed. If it was a categorical sample, equal gender numbers would had been recruited. During random sampling, more females came to be recruited, for, on one hand, in this kind of sampling process equal numbers in gender is not the case, whilst on the other determination in recruiting same number of males and females might not always proportionately allocated (Hoffmeyer-Zlotnik & Krebs, 1996). Design There will be conducted a within-participants or a „repeated measures/related design‟ experiment. That means each participant will perform both tasks separately. The „withinparticipants‟ experiment, although more advantaged for the experimenter, it is nevertheless difficult sometimes to avoid order effects that are related to participants and the experiment itself. Order effects that could be pinpointed are familiarity with the task, or practice and boredom effects. In order for any confounding variable to be avoided, if possible, there will be introduced counterbalancing. Half of participants will try the „observed‟ condition and half the „non-observed‟. To complete the experiment, participants will change turns. The second half will try the „observed‟ condition and the first half the „non-observed‟. Through counterbalancing any effect will be spread across both conditions of the independent variable. Thus, it will not constitute confounding variable. The independent variable will be the experimental condition „observed-not observed‟ and the dependent variable the errors scored. Material The material to be used for this experiment will be a star drawing –see Appendix 4- (two copies for each participant: one for the audience section and another for the non-audience). Procedure Participants were informed that the objective of the experiment is to question the effects of a specific task performance in an audience and non-audience condition. The task will be performed by drawing a star with a hand other than the dominant one. Participants will attempt to draw a line towards sketching the star as straight as possible. They will also be asked to do it as much as quickly as they can, attempting also to avoid errors of inaccuracy. Participants will perform the task both in the „observed‟ and the „non-observed‟ condition. Turns will change so to complete the task in both conditions. In the first condition, participants need to draw the star in a quick matter of time and then the experimenter will leave from their sight, so to repeat it all alone. Participants in the second condition will follow the other way around. When the task has been performed, the experimenter will thank participants for their participation and cooperation in the experiment. After the task has been accomplished, the experimenter will make a note of the gender of each participant, so to include it to the data analysis, as well as a note overleaf for each of both star drawings: one named as „observed‟ and other as „non-observed‟. Upon completion of the experiment, the experimenter will count the error scores of both the „audience-non audience‟ conditions, in order to mark two error scores for each participant that will be used for the results and presentation of data through the SPSS. Results Table 1: Descriptive Statistics 17

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Mean and standard deviation of age, gender, audience/error scores and no audience/error scores of participants AGE

M 31

SD 9.42

GENDER

1.75

.43

AUDIENCE/ERROR SCORES NO AUDIENCE/ERROR SCORES

31.12

12.25

12.40

5.72

The observation of both conditions (audienceâ&#x20AC;&#x201C;no audience) leads to a further investigation of the relationship between data, in order conclusions to be drawn inferring to them. The second table presents statistics needed to be taken into account. The fact that participants have shown that performing in the audience condition, they score higher error rates versus otherwise outlines that observation is the parameter, or the predictor, as we will term it in the discussion section, influencing performance during both audience/no-audience conditions. The latter is evident by looking at the respective error scores achieved: 31.12 and 12.40. Table 2: Inferential Statistics Paired Samples t-test 95% Confidence Interval of the Difference Lower 14.8

Sig. (1-tailed)

9.9

.000

Upper 22.5

Through the descriptive and inferential statistics there has been made clear that: 2.1.1 The mean related to the age of participants is 31 and the standard deviation is 9.42. 2.1.2 The mean related to both genders is 1.75, whilst the standard deviation .43. 2.1.3 The mean error score for the audience condition is 31.12 and the standard deviation 12.25 2.1.4 The mean error for the non-audience condition is 12.40, whereas the standard deviation 5.72 2.1.5 It is stated that the 95% confidence interval for the estimated population mean difference will fall somewhere between 14.8 and 22.5. 2.1.6 The t-value (9.9) shows that the difference between the two conditions is not a result of sampling error. 2.1.7 In order to receive an exact probability of the obtained p-value (.000) it is needed to change the last figure (0) to 1. Once this has been changed it is appeared that the p-value is less than 0.001. That means that, there can be found only one chance in a thousand that this result is due to sampling error. The p-value, according to the results obtained, is less than 0.05. In other words, the likelihood of 0.001 is <0.05. The p-value refers to the probability of the obtained t-value, meaning that the result is an outcome of a sampling variation. It is also stated that, although SPSS is giving the significance level as two-tailed, by default, the results in relation to both conditions speak of a one-tailed hypothesis. That means, the experiment conducted, refers to a directional hypothesis (Dansey &

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2.1.8 2.1.9

Reidy, 2011) which defines the prediction of a relationship between two conditions, in relation to ratings of error scores arousing under both of them. The degree of freedom is 31 and implies that the error scores can vary without altering the sample size (32), thereby almost in equation. In other words, for a within-participants design, degrees of freedom will appear one figure less than the number of participants. The presentation of the results obtained, according to an APA format, looks as follows: t(31)=9.9, p=0.001 0.001=1‰ p≤0.001 0.05 p≤0.05 0.01 p≤0.01

It is important to note in this instance that participants the way they have performed the task, and were found to support similar findings in earlier social facilitation studies, that it is not the task that affects performance in the presence or not the presence of others, but their observation when this task is carried out. In thinking of this instance differently, if in an audience condition, participants were performing a task, but without directly observed by others, i.e. if others were present while one was performing a task but indirectly observing the actor, scores during the presence of others would probably demonstrate low error rates as in the nonpresence of an audience (Qu et al., 2015). An explanation to that could be that the presence of others, versus not, is not the condition that influences actors‟ performance, but whether their presence or non-presence is active in view to the degree of observation spent during watching the task performed. Discussion Though the hypothesis of the study it is supported, and the understanding drawn could lead to the conclusion that results obtained do not provide a better interpretation compared to original study-ies, what I would like to stress is that the new element incorporated in this study is the fact that cognitive and behavioural perspectives have been taken into account; an element that hasn‟t been explored by previous researchers with regards to social facilitation theory. The latter explanation on one hand raises new considerations about social facilitation theory as to the reasoning individuals decide upon concerning performing a task in the presence and/or not of others; whereas on the other that the degree of performance may well be triggered by the predictor of observation, both if the audience is passive or active when watching actors performing tasks. Such new consideration for social facilitation theory, though does not come with new evidence as to the support of hypotheses –since, so far all major studies on this topic have concluded the support of the initial hypothesis- it nevertheless provides a better cognitive elaboration in the explication of reasoning from a cognitive point of view in terms of decision making as well as behavioural integration –i.e. how performance of a task could relate to actions that are engaging individuals performing tasks in the presence or not of others. The former explains that competitors, or performers, of tasks approach tasks having considered of possible outcomes of own performance, thereby the choice to endeavour and complete it. In other words, what is new in this study, and supports previous hypotheses on social facilitation theory, is that cognitive elements which integrate participants‟ competition on given tasks, such as observation during passive or active participation with or without the presence of others, predispose how competitors are going to perform before carrying out the task.

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This new consideration refers to what this paper, on one hand, offers to a modern understanding on social facilitation theory: that of predisposing cognitions that relate to a perceived outcome of an action, which if successful competitors are likely to compete, whereas unlikely to compete if opposite case would be them to fail. To support this idea is through the findings collected in this study, i.e. the fact that participants performed lesser in the presence of others, rather than performing the task otherwise, means that what makes participants to attempt a better effort when performing in the presence of others is analogous to the predisposing cognition that success will the case for their effort if they were to be minimally observed by an audience â&#x20AC;&#x201C;an understanding about performing well so that decision-making to be predisposing the outcome to be constructive as to the behaviour undertaken so a task to be completed. On the other hand, once the task has been decided to be performed, the focus of individuals to the behavioural integration of it, could mean an expectation of outcome to prove engaging against the effort to be spent. In keeping that in mind, individuals who commit to a performance, observed by others, could assist performers in struggling more efficaciously in completing the task with less possible losses. In taking the above discussion into consideration, the fact that the number of participants is small does not need to explain gender sensitive results, first because the aim of the study conducted did not include this idea as part of its rationale, and second because its objective was to regard how cognitive changes with respect to choices people make can prove positive, or not, to the effort put forward in terms of a behavioural activation following decision-taking. Also, the fact that female participants were more compared to their male counterparts, is also an evidence relevant to the rationale of the study which concerned the understanding of cognitive predisposing factors towards behavioural activation through implementation of a social facilitation performance. The mean age for the total number of participants (31) describes a normal spreading out of the overall sample used. Their age range is from 18 to 54 which connotes that their percentage rate is something about â&#x2030;Ľ 70%. In other words, the sample age of those taken part in that experiment is more or less normally distributed. The gender distribution, on the other hand, seems to be skewed, leaning towards females. Females are more than males, which means, there is a percentage of about â&#x2030;Ľ 75% counting against the male participants. The mean error scores, in relation to both conditions, support the social facilitation theory. People, in performing a task in the audience condition, tend to score more errors, than fewer in the non-audience one. An explanation to more error scores compared to less, lies with the cognitive hypothesis that individuals when observed from others during cognitive tasks they put much pressure unto themselves to perform better for the reason observation is regarded an obstacle towards clear decision-making as to the performance of a task. Added explanation to the latter, is higher levels of anxiety followed by low levels of self-esteem, particularly by the fact if observation of others during tasks other perform is more intellectual or complicated, as in the case of the star-drawing task. On the contrary, the opposite is true, for it eliminates observation anxiety. One by performing a task alone, even if such a task could be difficult, there are low levels of anxiety 20

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scored because observation is not the case. The way, cognitions operate during performance of a task during observation from others can lead to avoidant behaviours as to the accomplishment of a successful task performance, thereby the failure in completing it with minimal error scores. By that it is meant that observation operates as a predictor in performance fluctuating levels of anxiety and self-esteem when participants perform a task in the presence of others versus not. To use a diagram to illustrate the previous paragraph as to the error scores participants could perform, this would be as follows: High levels of anxiety Presence of others

High error scores Low self-esteem

Observation

Low levels of anxiety No presence of others

Low error scores High levels of self-esteem

The rationale and the hypothesis of this theory support the prediction and maintain that social facilitation understanding is in favour to performing a task when observed, versus nonobserved. In considering the error scores in both conditions, the prediction underlined is true. It is also argued that through the related t-test ninety-five out of hundred people will be found between higher rates of error scores as obtained in the audience condition. On the other hand, the likelihood accomplished has not been obtained due to sampling error. In line with the latter, only a chance out of a thousand could support the likelihood between the two conditions, due to sampling error. In other words, according to the results, error ratings participants had scored occurred due to manipulation and not due to chance. The confidence interval has almost doubled from the lower to the upper bound which means the range between them is more or less large. Also, there are no zeros in the confidence interval figures, implying that if there was a different sample of participants to perform the task in the audience condition, there would be unlikely to obtain lower error scores. The hypothesis stated, is not a two-tailed one, but onetailed instead. This supports the prediction of obtaining more error scores, when in the presence of others, than in the non-presence one. The directional hypothesis relates to the aspect of error scores in either condition. The experiment conducted followed within or related-participants design. One-tailed hypothesis in this experiment refers to the inter-related dependent variable, which is the error scores obtained under the same performed task (star drawing). The report of findings supports the theory of social facilitation. However, by considering more carefully that theory, it is maintained that an understanding coming out only from the error scores rated, or the idea of performing a task, is not as much accurate to accept. In other words, the present hypothesis would need to be distinguished under other factors which will explore this theory in depth (Steinbach, 2014). These factors can be underlined as â&#x20AC;&#x17E;co-actorsâ&#x20AC;&#x; with regards to performing a task in the presence of others. That could imply that, in the audience condition alienated factors may inhibit the subject by drawing his/her attention to sounds, smells, or voices, for instance, co-occurring (co-actors) at the same time, and obstructing the 21

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participant‟s attempt to perform the task effectively (Ryan & Deci, 2008; Tedescoe & Patterson, 2015). In such an event, what a participant is cognitively obstructed by is the ruminative thinking deriving from his/her concentration on something, other than the one he or she has focused on at the time of performing that particular task. In this way, one demonstrates lack in the facilitation of self-help interventions, such as concentrating on a specific task, which decreases also one‟s mood from the „performance‟ perspective of it (Watkins, 2009; Watkins et al., 2011). Another aspect is observation. If the subject is observed, while in the audience condition, and that means, if others were to pay considerable attention in what one would perform, that would also indicate an increase to error ratings, regarding the task performance (O‟Brien, 2003). By considering factors like the ones above, the outcome obtained from both conditions refers to the aspect of confounding variables which work towards the arousal of inhibitions and impairments on the side of an individual. The more the audience‟s presence, the greater the error scores are likely to incur; whereas the less the audience‟s appearance, the less the error scores accumulated, when a task is performed (Steinbach, 2014). Those factors would also implicate a cognitive obsession against the effort participants had to focus on. By „cognitive obsession‟ it is implied a cognitive and behavioural impediment to the task itself, which doesn‟t assist to managing and completing it fully (Newman, 1994; Zoellner et al., 2008). In cognitive-behavioural therapy, such impediment has an important understanding for the operation of human mind under a stressful situation. It is a stressful situation, because it indicates the presence of an event within an already existing other, such as riding a bike to a particular direction in the presence of others and getting obsessively concentrated –ruminative thinking- on another event, such as sounds, smells, voices, which could remind a participant of a particular experience one has had in the past. In a cognitive-behavioural perspective what could help an individual against rumination, is a cognitive distraction from over-thinking, such as focusing more on the task in hand via alternatives ways to achieving it (Deary et al., 2007; Teismann et al., 2012). In such a cognitive appraisal, a participant may lower down his pace of riding, or not pay attention to the presence of an audience watching him/her performing a task. Such a co-actor of an event may slow down the operation of cognitive abilities that associate to attention, perception, and/or memory, for the performer has behaviourally chosen (Taatgen, 2013) –change of focus and concentration from task- a different task to think of –that of sounds, smells, or voices, to refer to the previous example. By performing a task before others, it increases the impairment levels of the subject towards completing the task. A participant is inhibited to score more errors with an audience, than in the opposite condition. An inhibition coming out from such an experiment is the idea of the demand effect (Dansey & Reidy, 2011). The demand effect is concurrent to both conditions because of the relationship between experimenter and participant. It refers to the confounding indication that participants comply to follow the instructions laid down by the experimenter, in order to perform in accordance with what they were told, rather than with what they would normally do, in case there wasn‟t such an experiment in place. That could mean, results may not address the purpose of the experiment, but the underlying prediction instead (Zajonc, 1965). In order for the prediction to clearly follow the rationale expressed, the conduct of the experiment should attempt to avoid the demand effect. One could conduct an experiment by trying people to perform an already known task, and then a task they know absolutely nothing about (Zajonc, 1965). In the first case, the experimenter will be able to discuss the results of that under the understanding of skills participants possess; in the second, the experimenter should examine participants under a task not of their general knowledge: in other words, under a novel or complex task. In both cases, the experimenter will be able to understand how participants perform, so to draw conclusions from his findings more applicable to the prediction supported.

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The demand effect in both cases will be weakened because participants will score different error ratings, in relation to their different performing abilities. In line with the last two paragraphs, the aspect of performance is of crucial importance in the case of acting/co-acting of a particular task. Cognitively speaking, „performance‟ refers to the understanding how a task should be exercised, i.e. which aspects of cognitive checking should be there so performance to operate. Examples could be comprehension of the task; comprehension of the order a task to be accomplished; comprehension of the avenues to be followed so that a task to meet a fruitful culmination. Behaviourally speaking, „performance‟ means that a participant chooses in which ways to try the task; also, that he or she develops a plan his or her choices to be in conjunction to the task to be performed; also, that he or she by practicing it would be able to see alternatives to the performance towards a successful implementation of it. In line with the above, Zajonc (1965) explores it further by suggesting a combination of both the „performing-a-task‟ conditions: a person in order to understand how his behaviour on anxiety level, as well as his errors could be less accomplished, if the task were to be known, should study it all alone and then come and perform it before others. This means that, the more someone is well acquainted with the topic, the less the anxiety arousal will be in performing his skill. On the other, he also underlines the fact that, that kind of understanding has never been put under the microscope –in other words, under experimental procedure. It is also likely that, in the presence of others, an individual feels more comfortable to increase his capacity through performing a task. In some ways, however, the dealings are not referring to simply engaging an individual to perform a task, whether effectively or ineffectively, than imitating the process of doing so. Then, what it is meant to be accounted for in a more considerable way, are the consequences which should be further investigated, in order to explore more parameters working underneath that discuss the latter (consequences) with the former (presence of others), so to be thereof scrutinized and thereby integrated. In elaborating this understanding by Zajonc (1965) in cognitive-behavioural terms, we have a skill in the practice of cognitive-behavioural therapy that is called „application of change methods‟ in which a consideration of for-and-against alternatives can provide consolidation or change of appraisals being decided by the client to be thought of. „Application of change methods‟ is a conceptual comprehension about what has been decided and whether decisions made could lead to problem-solving (Blackburn et al., 2001). According to Zajonc‟s understanding (1965), coming to perform an action is a complex procedure. There is needed quite a good knowledge of the task to be performed, such as identifying about its constituent parts and how these can assist a comprehensive performance (cognitive organization of the human mind in CBT terms); also, consequences of such a performance of a task might have to be individually integrated (functional organization of the human mind in CBT terms), so to be meeting one‟s needs and expectations concerning such a task; and finally, whether the outcome of such performance could help the individual learn what he or she did and what improvements one has made in one‟s own life, so such a particular performance to be selected for in the hereand-now so the individual to further develop his/her cognitive and behavioural capabilities when employing it (Knapp & Beck, 2008). The social facilitation theory deals with the effects of social presence on individual performance. However, different cultures elaborate different frameworks for social facilitation. Even the term „social‟ should be questioned to facilitate or impair the theory among different aspects about life and the communication with others. Different cultural understandings develop and deepen the social facilitation theory. In this way, social facilitation theory becomes more flexible and employs different languages as well as traditions. On the other hand, it becomes also more flexible to different cultural understandings and personality characteristics that may vary from 23

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between traditions. Social facilitation theory should follow the various understandings and changes of societies, including differing cognitive and behavioural choices when facilitation of a performance is in place, so to track different social constructs. In this way, a broader approach and application of the social facilitation consensus could refer to individual cognitive and behavioural cultural differences, as well as to different cognitive and behavioural frameworks of perception to the social apprehension, exercised in relation to cognitive factors and traits of personality. Strengths and limitations to this study could be identified as well. First, the fact that the main hypothesis to social facilitation theory is being supported after more than 100 years is a practical evidence that this theory is still in effect in human interrelationships. Second, the number of participants who took part in this study could be better to be more, the reason being in this way, the element of observation could be regarded better in terms of gender-differing performance during observation of an audience; an element that could demonstrate whether males as well as females by following different decision-making in the accomplishment of a task could rate more scores versus otherwise. Also, as to the hypothesis this study was based, could be better enhanced if observation was to be seen as a predictor with conditions, such as direct observation, and indirect observation, the reason being to explain whether in the presence and non-presence of audience high or low error scores could be achieved during the performance of a task. In a future replication of this study, the element of observation as a predictor when participants perform in the presence or not of others, could provide further evidence to the understanding of anxiety and self-esteem with relevance to high and/or low errors scores collected. Conclusion In this study, there has been replicated the hypothesis that individuals perform better in the presence of others versus not. The fact the good performance has been found to be associated with more error scores versus less, when in the presence of others, points to the direction that even the mere presence of others affects decision-making in the performance of an action. That element was discussed in the final section of the paper by considering that the element of observation plays a very important role in the performance of a task. It was suggested that if observation was to be explained under this perspective, cognitive and behavioural aspects of anxiety and self-esteem could also be explored, following scores collected from participants having been observed from others performing a task versus not. References Aiello, R. J. & Douthitt, A. E. (2001). Social Facilitation from Triplett to Electronic Performance Monitoring. Group Dynamics: Theory, Research and Practice 5(3), 163-180. Allport, F. H. (1920). The influence of the group upon association and thought. Journal of Experimental Psychology, 3(3), 159-182. Ariel, E. (2014). â&#x20AC;&#x17E;Memory and decision processes: The impact of cognitive loads on decision regretâ&#x20AC;&#x;. Wharton Research Scholars Journal. Paper 108. Can be accessed at: http://repository.upenn.edu/wharton_research_scholars/108 Baron, R. S. (1986). Distraction-conflict theory: Progress and problems. Advances in Experimental Social Psychology, 19, 1-36. Baumeister, R. F. (1982). A self-presentational view of social phenomena. Psychological Bulletin, 91, 3-26. Blackburn, I. M., James, I. A., Milne, D. L., Reichelt, F. K. (2001). Cognitive Therapy Scale Revised (CTS-R). Newcastle Upon Tyne: Northumberland, Tyne & Wear NHS Trust.

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Blascovich, J., Mendes, W. B., Hunter, S. B., Salomon, K. (1999). Social facilitation as challenge and threat. Journal of Personality and Social Psychology, 77, 68-77. Bond, C. F. (1982). Social Facilitation: A self-presentational view. Journal of Personality and Social Psychology, 42, 1042-1050. Bond, C. F. & Titus, L. J. (1983). Social Facilitation: A meta-analysis of 241 studies. Psychological Bulletin, 94, 265-292. Borden, R. J. (1975). Witnessed aggression: Influence of an observer‟s sex and values on aggressive responding. Journal of Personality and Social Psychology, 31, 567-573. Carven, C. S. & Scheier, M. F. (1978). Self-focusing effects of dispositional self-consciousness, mirror presence and audience presence. Journal of Personality and Social Psychology, 36, pp. 324-332. Carven, C. S. & Scheier, M. F. (1981). The self-attention induced feedback loop and social facilitation. Journal of Experimental Social Psychology, 17, 545-568. Carven, C. S. & Scheier, M. F. (1982). Control theory: A useful conceptual framework for personality, social, clinical and health psychology. Psychological Bulletin, 92, 111-135. Cottrell, N. B. (1972). „Social Facilitation‟. In McClintock, C. G. (ed.), Experimental social psychology (pp. 185-236). New York: Holt. Dansey, C. P. & Reidy, J. (2011). Statistics without maths for psychology. Harlow-Essex: Pearson Education Ltd. Dashiell, J. F. (1930). An experimental study analysis of some group effects. The Journal of Abnormal and Social Psychology, 25(2), 190-199. Deary, V., Chalder, T., Sharpe, M. (2007). The cognitive behavioural model of medically unexplained symptoms: A theoretical and empirical review. Clinical Psychology Review, 27, 781-797. doi:10.1016/j.cpr.2007.07.002 Guerin, B. (1993). Social Facilitation. Cambridge-England: Cambridge University Press. Henchy, T. & Glass, D. C. (1968). Evaluation apprehension and the social facilitation of dominant and subordinate responses. Journal of Personality and Social Psychology, 10, 446454. Hoffmeyer-Zlotnik, J. H. P. & Krebs, D. (1996). ‟Different methods of survey sampling in Germany„. In Ferligoj, A. & Kramberger, A. (eds.), Developments in data analysis (pp. 7596). Giessen, Germany: ZUMA. James, W. T. & Gilbert, T. F. (1955). The effect of social facilitation on food intake of puppies fed separately and together for the first 90 days of life. British Journal of Animal Behaviour, 3, 131-133. Knapp, P. & Beck, A. T. (2008). Cognitive therapy: foundations, conceptual models, applications and research. Revisitas Brasileiras Psiquiatricas, 30(Suppl. II), 54-64. Laughlin, P. R. & Wong-McCarthy, W. J. (1975). Social Inhibition as a function of observation and recording of performance. Journal of Experimental Psychology, 11, 560-571. Mihyeon, K. (2011). The relationship between thinking style differences and career choices for high-achieving students. Roeper Review, 33(4), 252-262. DOI:10.1080/02783193.2011.603113. Newell, B. R. & Shanks, D. R. (2014). Unconscious influences on decision making: A critical review. Behavioral and Brain Sciences, 1-61. doi:10.1017/S0140525X12003214. Newman, C. F. (1994). Understanding client resistance: Methods for enhancing motivation to change. Cognitive and Behavioral Practice, 1, 47-69. O‟Brien, S. (2003). Social facilitation and the fundamental attribution error: the effects of familiarity on social psychological theory. Dublin, Ireland: Dublin Business School. Qu, C., Ling, Y., Heynderickx, I., Brakman, W-P. (2015). Virtual bystanders in a language lesson: Examining the effect of social evaluation, vicarious experience, cognitive consistency and praising on students‟ beliefs, self-efficacy and anxiety in a virtual reality environment. PLOS ONE, DOI:10.1371/journal.pone.0125279, April 17. 25

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Ryan, R. M. & Deci, E. L. (2008). From ego depletion to vitality: Theory and findings concerning the facilitation of energy available to the self. Social and Personality Psychology Compass, 2(2), 702-717. doi:10.1111/j.1751-9004.2008.00098.X Steinbach, A. B. (2014). „Social facilitation in BMX racing‟. MA dissertation submitted at the Faculty of Sport Sciences of the Martin-Luther-Universität Halle-Wittenberg, 50pp. Available at: http://bmxresults.com/pdf/2014/Social%20facilitation%20in%20BMX%20Racing_small Taatgen, N. A. (2013). The nature and transfer of cognitive skills. Psychological Review, 120(3), 439471. DOI:10.1037/a0033138. Tedescoe, J. & Patterson, R. (2015). Efficacy of voice pedagogy training on communication apprehension and social facilitation. International Journal of Education and Social Science, 2(4), 95-102. Teismann, T., Michalak, J., Willutzki, U., Schulte, D. (2012). Influence of rumination and distraction on the therapeutic process in cognitive-behavioral therapy for depression. Cognitive Therapy and Research, 36(1), 15-24. Triplett, N. (1898). The dynamogenic factors in pace-making and competition. American Journal of Psychology, 9, 507-533. Uziel, L. (2007). Individual differences in the social facilitation effect: A review and metaanalysis. Journal of Research in Personality, 41, 579-601. doi:10.1016/j.jrp.2006.06.008. Watkins, E. R. (2009). Depressive rumination: Investigating mechanisms to improve cognitive behavioural treatments. Cognitive Behavior Therapy, 38(S1), 8-14. doi:10.1080/16506070902980695. Watkins, E. R., Mullan, E., Wingrove, J., Rimes, K., Steiner, H., Bathurst, N., Eastman, R., Scott, H. (2011). Rumination-focused cognitive-behavioural therapy for residual depression: phase II randomised controlled trial. The British Journal of Psychiatry, 199, 317-322. doi:10.1192/bjp.bp.110.090282. Wheeler, L. & Davis, H. (1967). Social disruption of performance on a DRL schedule. Psychonomic Science, 7, 249-250. Wills, F. & Sanders, D. (2013). Cognitive behavior therapy: Foundations for practice. London: Sage. Yechiam, E., Druyam, M., Ert, E. (2008). Observing others„ behavior and risk taking in decisions from experience. Judgment and Decision Making, 3(7), 493-500. Zajonc, R. B. (1965). Social Facilitation. A solution is suggested for an old unresolved social psychological problem. Science, 149, 269-274. Zajonc, R. B. (1980). „Compresence‟. In P. B. Paulus (ed.), Psychology of group influence (pp. 35-60). Hillsdale-N.J.: Erlbaum. Zajonc, R. B., Heingartner, A., Herman, E. M. (1969). Social enhancement and impairment of performance in the cockroach. Journal of Personality and Social Psychology, 13, 83-92. Zentall, T. R. & Levine, J. M. (1972). Observational learning and social facilitation in the rat. Science, 178, 1220-1221. Zoellner, L. A., Abramowitz, J. S., Moore, S. A., Slagle, D. M. (2008). „Flooding‟. In O‟Donohue, W. T. & Fisher, J. E. (eds.), Cognitive behavior therapy: Applying empirically supported techniques in your practice, 2nd edition (pp. 202-210). Hoboken, NJ: John Wiley & Sons, Inc.

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Appendix 1

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Appendix 2

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International Journal of Humanities and Social Sciences p-ISSN: 1694-2620 e-ISSN: 1694-2639 Vol. 8 No. 1, pp. 32-41, ©IJHSS

Setting the Strategic Direction and it’s Influence on Church Growth in Kenya Peter Mutua Mutia, Dr. George O. K’Aol and Dr. Paul Katuse United States International University – Africa P.O. Box, 14634 – 00800 Nairobi, Kenya Email: petermutia@yahoo.co.uk, gkaol@usiu.ac.ke, pkatuse@usiu.ac.ke Abstract According to conventional textbook wisdom, the setting of an organization’s strategic direction is done by leaders at the strategic level of the organization, then cascaded down to the rest of the organization. The setting of an organization’s strategic direction entails mapping out the organization’s overall growth strategy and laying out the road map for its implementation. The purpose of this study was to determine how the setting of the church’s strategic direction influences its infrastructural growth in Kenya, and used a descriptive correlational research design. The one hundred and twenty six (126) Bishops and four thousand, six hundred and sixty seven (4667) study population was randomly selected from the five major Christian denominations in Kenya. The data collection tool used was a self-administered structured questionnaire. The collected data was analyzed with the use of Statistical Package for Social Sciences (SPSS) software. The findings indicated that the setting of the church’s strategic direction influences its infrastructural growth. A Chi-square test to determine whether there was a significant difference between the different church denominations and the strategic plan for the growth and expansion of the church programs established that the strategic plan influenced the growth and expansion of the different church programs at x2 (1) = 18, p <0.01. There was a strong correlation between having a strategic plan and accomplishment of the church goals at r (240) =.65, p=.000. On doing a regression between the determination of the strategic direction and the church’s infrastructural growth, the findings indicated that F(4,297) = 61.468, p<.000. With an R 2 of .673, which indicated that the determination of strategic direction causes a 67 percent variation in the infrastructural growth of the church. The study concluded that the determination of the church’s strategic direction positively influences its infrastructural growth and recommends further studies to determine the different leadership styles that are key in ensuring sustainable growth of the church and faith-based organizations in general. Keywords: Strategy, Strategic Direction, Infrastructural Growth, Church Leadership

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Introduction According to Ireland,Hoskisson and Hitt (2009), the determination of a church’s strategic direction involves the specification of what the organization hopes to become in the future and is influenced by the perceived contextual opportunities and threats. As Hayes, Pisano, Upton and Wheelwright (2005) explain, the setting up of a church’s strategic direction entails three key elements, which are: the church’s mission, vision and values. Hough, Thompson, Jr., Strickland III, & Gamble (2011) define the church’s mission as a statement that describes its very reason for existence, its activities, strategies, acceptable outcomes and its fundamental calling (also called raison d’être). On the other hand, Kouzes and Posner (2012) define a church’s vision as the ideal and unique “image” of the church’s future. According to Huff, Floyd, Sherman and Terjessen (2009), an organization’s values are the guiding principles that the firm live by, which also influences both who and what fits within the organization. According to Clayton (2015), the determination of a church’s strategic direction is a five-step process, and entails goal setting, formulation of the guiding strategy, implementation of the same, evaluation and control of the implementation process. On the other hand, Johnson, Scholes and Whittington (2008) explain that goal setting is done to clarify the vision for the church’s business and consists of definition of both the short and long-term objective, identification of the process of how to accomplish the church’s objectives and a customization of the process for the church’s staff, by assigning individual tasks for each.

Problem Statement In the contemporary and highly competitive society, organizational success is not a matter of luck, but rather a phenomenon largely determined by the actions of the organizational leaders. As Olk, Rainsford and Chung (2015) explain, in not-for-profit organizations, especially the church, the realization of organizational goals is complicated by both the leadership structure and the leaders’ actions, which can be explained by the fact that, here, more than anywhere else, a strong conceptual framework, which is a framework for action, is necessary (Manene, 2011), yet this framework cannot be static, but must be reshaped as the needs and the governance of the church and the environment around it change (Kagema, 2012). One of the key actions that can influence the success or failure of the church is the setting of its strategic direction. According to pierce and Newman (2008), the setting of the church’s strategic direction is one management tool that can help an organization in focussing and periodically refocussing its vision and priorities, and also helps the organization in the establishment of choices about how best to accomplish its missions, goals and objectives. On the other hand, Vaughn (2005) explains that without a pre-set direction, an organization stands the risk of drifting away from its values and lose the ability to understand whether it is successful in delivering its services or products to its clients or not. Purpose of the Study The purpose of this study was to determine how the setting of the church’s strategic direction influences its infrastructural growth in Kenya. Literature Review According to Volberda et al (2011), the setting of an organization’s strategic direction entails the definition of the organization’s strategy and making decisions on the allocation of resources to facilitate its implementation. Fulmer (2009), on the other hand, defines infrastructure as the physical components in any given organization, which are established to guide, support, provide 33

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essential services to enable, sustain, or enhance proper functioning of the organization. According to Serven (2010), an organization’s infrastructure consists of the different operations, mission and goals, the people who do the work and the way the work is done in the organization. DeCastro (2015) however observes that, although church growth is a major concern for many churches and their leaders in the world today, it is only when the church is built in accordance with the laid out biblical patterns that true qualitative and quantitative growth become evident. Sullivan and Sheffrin (2003) point out that infrastructure is a key ingredient for organizational productivity and growth and affects the aggregate output by entering production as an additional input and raising the total factors of production by reducing transaction and other costs thus allowing a more efficient use of conventional productive inputs. According to Labotis (2007), the determination of the church’s strategic direction influences infrastructural growth by first, helping in ensuring customer-focused growth strategies, which entails the identification of profitable growth opportunities specifically geared towards the generation of maximum proportion of revenue and profits (Calderon & Servén, 2010). According to Serven (2010), all these elements work in ensuring increased and sustained profitability and ultimately increased demand for service, leading to the need for the expansion of the existing infrastructure due to expanded capacities, which also help the church to serve larger audiences. Fulmer (2009) on the other hand explains that the determination of the church’s strategic direction helps in the assessment of its operations by analyzing the direction the church is headed and why, identifying the core customers and their needs. He explains further that it is important to know the church’s key competitive advantage, how this can be strengthened, define the existing market platforms, eliminate products and markets that do not fit on to these platforms and strengthen its market coverage. According to Feliciano (2014), the setting of an organization’s strategic direction is essentially strategic planning, a process which entails the setting of the organizational mission, vision and objectives, environmental scanning, strategy formulation, strategy implementation, and strategy evaluation and control, which all work together in ensuring that the organizational goals and objectives are achieved. Gartenstein (2014) observes that strategic planning provides a sense of direction and outlines measurable goals for the organization, and is a useful tool for guiding the organization’s day-to-day operations and for evaluating progress and changing approaches when moving forward. He further argues that in order to make the most of strategic planning, the organization should give careful thought to the strategic objectives it outlines, and then back up these goals with realistic, thoroughly researched, quantifiable benchmarks for evaluating results. According to Day (2012), the direction to be followed in any given organization is set by answering the questions: what are the growth objectives? What portion of future growth and profits should come from new products and or new markets? What purposes should new products and other growth options play in supporting the business strategy? What is the best growth path? Where should the business team be looking to find opportunities that satisfy the objectives and purposes of the strategy without exposing the business to excessive risks? And should the business participate in the new growth direction by relying on internal development or external means such as alliances, licenses or acquisitions? As Wasyluk (2007) explains, a church leader must have a well planned strategy and clear direction if they are to succeed in bringing growth to their organization. To achieve this, Stahl (2007) explains that, church leaders should seek to create an exciting picture of a successful future for their organization and their followers mainly because followers want a sense of what they are striving for and where they are going in order to commit the necessary resources (time and energy) to achieve the desired results. He argues further that without a clear sense of direction the followers become either unproductive or underproductive, which results in a wastage of organizational resources. 34

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According to Dubrin (2007), the churchâ&#x20AC;&#x2122;s strategic direction involves the articulation of its mission and vision, development of the strategies, which encompasses the churchâ&#x20AC;&#x2122;s goals, and specific objectives. According to Hitt, Ireland and Hoskisson (2005), this vision provides the motivational impetus necessary for the followers to act up and gives the leaders the ability to engage in the motivation and empowerment of their followers to create effective organization designs, which all work together to foster organizational growth. Research Methodology Participants The study population comprised of church leaders in the five major churches in Kenya, with the target population being Bishops and clergy from the five largest church denominations in Kenya., namely, the Roman Catholic Church (R.C.C), the Anglican Church of Kenya (ACK), the Presbyterian Church of East Africa (PCEA), the African Inland Church and the Methodist Church in Kenya (MCK), from which, using a stratified random sampling technique, a sample size of 95 bishops and 387 pastors was drawn. Design The present study was a descriptive correlational study which sought to determine the influence of setting the churchâ&#x20AC;&#x2122;s strategic on its infrastructural growth Kenya. The study examined this variable among church leaders and collected data through self-administered questionnaires and consequently came up with recommendations to church leaders in Kenya which sought to improve performance by church leaders in the country. The data collected was analyzed using both descriptive and inferential statistics and presented in the form of frequency distributions, means, charts for descriptive statistics and tables and figures for inferential statistics. The data was analyzed using the statistical program for social sciences (SPSS) as a tool. Results Of the respondents interviewed, only 9% were females in leadership positions. The res (91%) were males. Descriptive Statistics Figure 1: Gender of the Respondents

On the other hand, many of the church leaders interviewed for this study were above 50 years of age while a minority were aged between 40-49 years of age.

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Table 1: Age of the Respondents Distribution Age

Frequency

Percentage

30-39 yrs

40-49 yrs

50 yrs +

143

Non-response

Total

331

100

Inferential statistics Chi-Square Test The technique was used to determine whether there was a significant difference between the church denominations and the strategic plan for the growth and expansion of the church programs. From the Chi-square tests, it was established that, the strategic plan influenced the growth and expansion of the different church programs at x2 (1) = 18, p < 0.01. Table 2: Chi-Square Tests Leadership and the Church Strategic Plan for Growth Value

Asymp. Sig. (2-sided)

Pearson Chi-Square

332.116a

.000

Likelihood Ratio

208.809

.000

Linear-by-Linear Association

10.305

.001

N of Valid Cases

260

a. 21 cells (75.0%) have expected count less than 5. The minimum expected count is .29.

Analysis of Variance A one-way ANOVA was conducted to evaluate the null hypotheses that there is no significance difference between the church strategic direction and infrastructural growth. The tests revealed significant pair wise differences between the mean scores of the church strategic direction and the infrastructural growth, p<.05. F (6,255) = 13.5, p=.000, F (6,255) = 18.5, p=.000, F (6,255) = 7.5, p=.000 and F (6,255) = 18.3. This shows that there was a significant difference between the church strategic direction and the infrastructural growth.

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Table 3: One -Way ANOVA on Church Strategic Direction and Church’s Infrastructural Growth Sum of Squares df

Mean Square F

Sig.

12.990

2.165

13.453

.000

Within Groups 41.040

255

.161

Total

261 18.516

.000

7.545

.000

18.296

.000

10.133

.000

The church’s mission is realistic Between in light of its resources Groups

54.030

There are clearly defined Between 34.851 strategies that support the Groups mission, vision and ultimately Within Groups 79.992 the growth of the church Total 114.843 The church’s programs, Between 11.211 services, and general activities Groups are consistent with its mission Within Groups 63.144 statement. Total 74.355 The church’s planning and Between 41.356 budgetary priorities are Groups consistent with and supportive Within Groups 96.068 of the mission Total 137.424 The church’s actions and Between 36.717 decisions demonstrate an Groups understanding that it serves the public and has obligations to it Within Groups 139.502 Total 176.219

5.809

255

.314

261 6

1.868

255

.248

261 6

6.893

255

.377

261 6

6.119

231

.604

237

Regression The regression between determination of the strategic direction and the church’s infrastructural growth had a strong regression. The regression analysis findings were F (4, 297) = 61.468, p<.000. With an R2 of .673, which indicates that the setting of the church’s strategic direction causes 67 percent variation in the infrastructural growth of the church, while the remaining 33 percent are attributable to other factors not considered in the study and one error term. Table 4: Regression of Strategic Direction and the Church’s Infrastructural Growth Model R R Square Adjusted R Square Std. Error of the Estimate 1

.673a

.453

.446

.305

a. Predictors: (Constant), Number of programs currently, Number of congregations/parishes/branches 5 years ago, Number of programs 5 years ago, Number of congregations/parishes/branches currently 37

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Coefficients The coefficient table indicates the degree of relationship between each variable that represents the infrastructural growth of the church. The constant is 1.980 while the variables which are statistically significant for the equation are: increase in the number of congregations/parishes/branches 5 years ago (p=.000) and the number of congregations/parishes/branches that the church has currently (p=.000). Table 5: Coefficients of Strategic Direction and the Infrastructural Growth of the Church Unstandardized Coefficients B (Constant)

Standardized Coefficients

Sig.

24.452

.000

Std. Error Beta

1.980 .081

Number of congregations/parishes/branches .558 5 years ago

.059

.874

9.439

.000

Number of congregations/parishes/branches .281 currently

.054

.429

5.173

.000

Number of programs 5 years ago

.021

.053

.032

.401

.689

Number of programs currently

.031

.040

.055

.778

.437

a. Dependent Variable: Church having a clear strategic plan

Regression Equation: Y= a+ bx1+bx2+bx3+bx4 Y= 1.980+b (0.558) +b (0.281) Setting the Strategic Direction=1.980+ number of congregations/parishes/branches 5 years ago 0.558 + number of congregations/parishes/branches currently 0.281 Discussion This study sought to establish how the setting of the church’s strategic direction influences its infrastructural growth, and sought to get information on the church’s strategic vision and mission, the church’s strategic goals, the major challenges to the implementation of the church’s strategic plans, an analysis of how the strategic plan influenced the church’s infrastructural growth, and establish the coefficient between the church’s strategic direction and its infrastructural growth and also sought to regress the church’s strategic direction against its infrastructural growth. When asked what they felt about the church’s vision and mission, 98% of the respondents agreed or strongly agreed that their church’s mission was realistic in light of its resources, while 2% of the respondent disagreed with the statement. On the other hand, 77% of 38

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the respondents felt that the church had clearly defined strategies that supported the mission, vision and ultimately the infrastructural growth of the church, while 10% of the respondent disagreed with the statement. Also, 90% of the respondents either agreed or strongly agreed that the church’s programs, services, and general activities were consistent with its mission statement, while 10% disagreed with the statement. When asked about the major challenges to the achievement of the church’s infrastructural growth, 19% of the respondents cited poor leadership, 17% cited inadequate personnel, while 16% cited lack of sufficient funds to carry out the expansion of the infrastructure. However, other challenges cited included lack of plans (14%), resource constraints (14%), corruption (11%), competition, discrimination and unreligious members, all with 3% respectively. This question sought to determine whether the church’s strategic plan influenced its infrastructural growth from the respondents who participated in the study, but first analyzed how the leadership had influenced the infrastructural growth. When asked whether the church’s strategic plan had influenced its infrastructural growth, 76% of the respondents agreed or strongly agreed with this statement while 24% either disagreed or strongly disagreed with the statement. Next, this study analyzed the coefficients of setting of the strategic direction against the church’s infrastructural growth. The coefficient table indicates the degree of relationship between each variable that represents the infrastructural growth of the church. The constant is 1.980 while the variables which are statistically significant for the equation are: increase in the number of congregations/parishes/branches 5 years ago (p=.000) and the number of congregations/parishes/branches that the church has currently (p=.000). The study also did an ANOVA of the church’s strategic direction and infrastructural growth, and the output shows that the regression is significant at F (4, 297) = 61.5 p=.01 which proves that the determination of the church’s strategic direction has a significant influence on the infrastructural growth of the church. Lastly, this study sought to do a regression of setting the church’s strategic direction against its infrastructural growth. Here, the regression analysis technique was done to explore the relationship between the continuous dependent outcomes (infrastructural growth) against the independent variable (setting the church’s strategic direction). The regression analysis findings were F (4, 297) = 61.468, p<.000. With an R 2 of .673, which indicates that the setting of the church’s strategic direction causes a 67% variation in the infrastructural growth of the church, while the remaining 33 % is attributable to other factors not considered in the study and one error term. Conclusion The present study focused on the setting of the church’s strategic direction and its influence on its infrastructural growth. From the study, it is clear that the setting of the church’s strategic direction requires a clear vision, mission, goals and the necessary resources to ensure a successful implementation of the same. It also requires a clear analysis and reflection by the church’s top managers as well as a clear communication and feedback from the church’s employees and stakeholders. It is clear from the study that the process of setting the church’s strategic direction requires striking a balance between developing a vision that is not inspiring or unattainable or one that is the personal passion of top management but is not shared by others. Lastly, the setting of the church’s strategic direction helps the church to build a systematic framework composed of three key elements, which are: the sharpening the competitive focus, defining the models and priorities and ensuring customer-focused growth strategies. Recommendations for Improvement As one scholar so rightly observes, the setting up of the church’s strategic direction is not a wishlist, a marketing tool, but rather, a tool which helps the church by shedding light on its unique 39

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strengths and relevant weaknesses, enabling it to pinpoint new opportunities or the causes of current or projected problems. It is with this in mind that this study suggests that church leaders at all levels should be involved in the strategic planning process, the church mission should be realistic in light of its resources and that the church should have clearly defined strategies that support the mission, vision and ultimately the growth of the church. Recommendation for Further Research This study has established that the setting of the church’s strategic direction helps in the infrastructural growth of the church. There is however a need for an empirical study to identify the effect of the leadership style on the church’s growth in general. Also, while the setting of the church’s strategic direction has been established in this study as a key variable in the infrastructural growth of the church, it is not clear how the mediating variables like the political and geographic climates influence the same. Consequently, there is a need for an empirical study to determine how these variables influence other aspects of the church growth. References Calderón, C. & L. Servén. (2010). Infrastructure and Economic Development in Sub-Saharan Africa. Journal of African Economies Clayton, J. (2015). The Five Stages of the Strategic Management Process (online). Available: http://smallbusiness.chron.com/five-stages-strategic-management-process-18785.html Daft, R.L. (2011). The Leadership Experience. 5th Edition. Cincinnati, Ohio: Cengage Learning South-Western Day, G.S. (2013). Innovation Prowess: Leadership Strategies for Accelerating Growth. Philadelphia: Wharton Digital Press DeCastro, .D. (2015). Infrastructure of Church Growth (online) Available: http://balancedchristianliving.org/?p=46 Dubrin, A.J. (2007). Leadership: Research Findings, Practice and Skills, 5th Edition. New York: Houghton Mifflin Company. Feliciano, D. (2008). Why Are Goals And Objectives Important? (Online). Available: http://www.fastcompany.com/795028/why-are-goals-and-objectives-important Fulmer, J. (2009). What in the World Is Infrastructure? PEI Infrastructure Investor, 30–32. Gartenstein, D. (2014). Why Is Strategic Planning Important to an Organization? (Online). Available: http://yourbusiness.azcentral.com/strategic-planning-important-organization4103.html Hayes, R., Pisano, G., Upton, D. & Wheelwright, S. (2005). Operations, Strategy and Technology: Pursuing the Competitive Edge. New York: John Wiley. Hill, C. & Jones, G. (2008). Essentials of strategic management, Boston: Houghton Mifflin Hitt, M.A., Ireland, R.D. &Hoskisson, R.E. (2005). Strategic Management: Competitiveness and Globalization. Ohio: Thomson South-Western. Hough, J., Thompson, Jr., A.A., Strickland III, A.J. & Gamble, J.F. (2011). Crafting and Executing Strategy, Creating Sustainable High Performance in South Africa: Text, Readings and Cases, 2nd Edition. London: McGraw-Hill Higher Education Huff, A.S., Floyd, S.W., Sherman, H.D. & Terjesen, S. (2009). Strategic Management: Logic & Action. Hoboken, NJ: John Willey & Sons, Inc. Ireland, R.D., Hoskisson, R.E. &Hitt, M.A. (2009). The Management of Strategy: Concepts & Cases 8th Edition. Mason, Ohio: South-Western Cengage Learning 40

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Johnson, G., Scholes K. & Whittington, R. (2008). Exploring Corporate Strategy, 8th Edition. New York: Prentice Hall Publishers Kagema, D.N. (2008). Leadership Training for Mission in the Anglican Church of Kenya (online). Available: http://uir.unisa.ac.za/handle/10500/3252 Kouzes, J.M. & Posner, B.Z. (2012). The Leadership Challenge: How to Make Extraordinary Things Happen In Organizations. Hoboken: Jossey-Bass. Liabotis, B. (2007). Three Strategies for Achieving and Sustaining Growth (Online). Available: http://iveybusinessjournal.com/topics/strategy/three-strategies-for-achieving-andsustaining-growth#.U7-aKEApy00 Manene, G.M. (2011). The Role of Leadership in Numerical Church Growth: A Case Study of Selected Deliverance Church Congregations in Nairobi-Kenya. (Mastersâ&#x20AC;&#x2122; Thesis). Daystar University, Nairobi, Kenya. Olk,P., Rainsford, P. & Tsungting, C. (2015). Creating a Strategic Direction (online). Available: https://us.sagepub.com/sites/default/files/upm-binaries/35210_Part1.pdf Pearce, J. A. & Robinson, R.B. (2007). Strategic Management: Formulation, Implementation and Control, 10th Edition. New York: McGraw-Hill Serven, L. (2010) Infrastructure and Growth (Online). Available: http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/0,,c ontent MDK:22629797~pagePK:64165401~piPK:64165026~theSitePK:469382~isCURL:Y,00. html Stahl, J. (2007). Lessons on Leadership: The 7 Fundamental Management Skills for Leaders at All Levels. New York: Kaplan Publishing Sullivan, A. &Sheffrin, S.M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey: Pearson Prentice Hall Thompson A, Strickland A, Gamble J. (2007). Crafting and executing strategy: the quest for competitive advantage. New York: McGraw-Hill Irwin. Vaughn, A.L. (2005). Strategic Planning: Management Assistance Models For The Non-Profit Sector (MBA Thesis). Florida State University, Tallahassee, Florida, U.S.A. Volberda, H.W., Morgan, R.E., Reinmoeller, P., Hitt, M.A., Ireland, R.D., &Hoskisson, R.E. (2011). Strategic Management Competitiveness and Globalization, Concepts and Cases 9th Edition. Hampshire: United Kingdom Wasyluk, o. (2007). Leadership Influence on Corporate Change Involving Distance Training. (Online). Available: http://www.westga.edu/~distance/ojdla/spring101/wasyluk101

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International Journal of Humanities and Social Sciences p-ISSN: 1694-2620 e-ISSN: 1694-2639 Vol. 8 No. 1, pp. 42-53, ÂŠIJHSS

The multiplier effects of rural public investment and poverty alleviation implications: the case of federal university Ndufu Alike Ikwo (FUNAI) Paul C. Obidike Department of Accountancy/Business Management/Entrepreneurial Studies, Federal University Ndufu Alike Ikwo, email:pcobidike@gmail.com Kalu E. Uma Department of Economics & Development Studies, Federal University Ndufu Alike Ikwo, Ebonyi State, Nigeria, email: kaluskyebng@yahoo.com Abstract: The study examined the rural multiplier effect and poverty alleviation implications of the existence of Federal University Ndufu Alike Ikwo (FUNAI), Ebonyi State, Nigeria. This expository paper reviewed and unraveled the desirable benefit to the rural people when the government establishes an institution or learning centre in the rural area considering the domestic and foreign investors unwillingness and reluctance in investing in such area. The chain effects of the existence of FUNAI have both direct and indirect effects which are seen to raise the living standard of the people. The authors realised that there is a positive impact that lead to increase in employment of local resources and income generation which have contributed to poverty reduction in the area to an extent. On the basis of the observed positive effect, the authors made some suggestions which include the following among others: the government has to reposition the rural areas of the country by establishing capital overheads and relevant infrastructure such as good road network, regular power and water supply in order to attract and encourage domestic and foreign investors. More efforts are needed to encourage local entrepreneurs to settle and invest in the area instead of migrating to the urban areas with their skill, capital and trade thereby raising unemployment and poverty in the area, and annihilating the development intention of the government. Keywords: multiplier, investment, poverty alleviation , public, rural

1.0 Introduction Pataki (2005) points that among the most powerful tools employed in regional economic analysis is the multiplier. Oâ&#x20AC;&#x2122;Farrell(2012) asserts that there is a direct benefit of investment stimulus to an economy because of employment creation and increased aggregate economic activity among others. The Keynesian multiplier effect has it that private or public investment has a chain reaction that helps to increase employment, output production and income generation. Ono (2009) have the conviction that public works spending may completely crowd out private consumption notwithstanding the standard Keynesian setting. But European

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Commission (2014) posits that an increase in public infrastructure investment could make available the needed demand and a policy option required to support growth. The rural sector in Nigeria is confronted with scarcity of all it takes to operate some businesses, specifically due to infrastructural deficiency, lack of efficient banking system, poor road network, epileptic power supply, migration of inhabitants among others. Nevertheless, a large proportion of Nigerians live in the rural areas of the country. The poverty nature in Nigeria presupposes a greater focus to the rural area. Scholars have remarked that attacking poverty involves understanding the location, the degree and features. Obviously, in Nigeria, poverty is dominant in the rural areas. Studies have revealed that in Africa and Asia, 75 â&#x20AC;&#x201C; 80% of the poor are resident in the rural areas and 70% in Latin America (Todaro, 1977: Chenery and Eckstein, 1970). However, more attention on the urban areas by the various leaders in Nigeria have created imbalance with respect to development in the economy. This situation has hindered even development. The rural poverty has gone up over the years because of serious fall in economic activity due to poor environment. This gave rise to incessant rural-urban migration, which brought in backwash effect in the area. The migrants usually go with skills, capital and other asserts, thereby, bringing about negative cumulative causation that retard development. When local entrepreneurs migrate out of an area, their workers are left without a job and all their productive inputs are taken away which brings a situation that impacts adversely on the general welfare of the society. Conversely, the influx of investors or entrepreneurs in the rural area brings with it spread effect, which is a positive impact that will raise idle resources use and employment, thereby, leading to income generation. Unfortunately, the exodus of people from the rural to urban areas far outweighs the extent at which investors trickle into the village. Consequently, idle resources abound that is associated with chains of economic quagmire, hence, it climax to poor living standard. The Earth-trends (2003) states that the proportion of Nigerians living on less than a United States dollar per day is 70.2% whereas the proportion living on less than $2 per day is 90.8%. On this note, Uma et al (2014) remarked that many citizen of Nigeria cannot afford decent meals a day. Consequently, the level of hunger, malnutrition and poor health condition which pervade are not advantageous to the required level of mental development. In its estimation the Index Mundi (2013) states that the total population of Nigeria is 174.5million. Total dependency ratio is 89% which implies that a large proportion of the population is unproductive but dependent on the proportion of the work force. Nigeria has high birth rate 38.8%, high population growth rate which is 2.54% whereas population growth rate in many other countries is falling. Besides, over the years, due to the situation of more people leaving the rural places than they are replaced owing to poor environment for economic activity, the degeneration of rural sector have never dwindled and so poverty in the area keep on rising. For instance National Bureau of Statistics (2005) points out that in 1980, the urban poverty was 17.2% while it stood at 28.3% in the rural areas. It rose to 37.8% in 1985 in the urban area and 51.4% in the rural area. By 1992, poverty stood respectively at 37.5% and 46.0% in urban and rural areas, but rose again in 1996 respectively in urban and rural areas to 58.2% and 69.8%.In addition, Kale (2012) points out that in 2004, 51.6% of Nigerians were living below US $1 per day and it rose to 61.25% in 2010. Changes that have taken place over the years since democratic dispensation have not remarkably brought down poverty since over 70% of Nigerians is estimated to be poor. Consequently, the federal government has instituted various fiscal incentives, programmes and strategies aimed at promoting industrial establishment in the country in general and in the rural areas in particular. Nevertheless, there is unwillingness of investors to opt for medium and

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long term investment in the rural areas of the country due to non-feasibility of breaking even not to talk of making profit, since the prospective investors have to provide virtually everything needed to function. But development economists have stressed on the need for increased infrastructure and capital facilities to enhance economic activity in the rural area so as to accelerate the utilisation of idle resources in order to generate income, reduce unemployment, lessen poverty and improve living standard. Over the years government has made frantic efforts to change the ugly trend of poverty in the country yet much remains to be done. This is because the absence of relevant capital overheads that do lessen initial start-up costs are completely lacking, hence investors do prefer where relative capital overheads exist, which is in the urban area. Given the reluctance of private investors in the choice of investment in the rural areas, the federal government has taken the bull by the horn and decided to lead the path of social and economic revival in many rural areas with some kinds of investment such as tertiary institutions and other relevant establishment. The establishment of Federal University Ndufu Alike Ikwo (FUNAI) is a typical example of the government positive intention to increase economic activity in the rural areas, in addition to manpower development, which is a welcome development that is seriously on course to achieve not only the expectations of the existence of industries but to alleviate poverty in the region. In view of the aforementioned, the broad objective of this study is to unravel the multiplier effect of the establishment of FUNAI in Ikwo and the role it has played in poverty alleviation of the area. In this regard, the paper is streamlined thus: section two is theoretical issue; the concept of the multiplier is section three; section four is socio-economic effect of FUNAI in Ikwo; poverty reduction implications of FUNAI in Ikwo is section five; way forward and conclusion is the last section. 2.0 Theoretical issues Scholars have stressed on the importance of physical and human capital in the acceleration of economic development and growth of an area. This is because essential equipments, plants, machinery on one hand and relevant infrastructure and social overheads and qualified manpower availability on the other hand are the necessary condition for any entrepreneur to function with respect to production. Domar (1937) posits that capital requirement is the real factor militating against development and growth rather than labour in less developed countries which is supported by many other development economists such as Arthur Lewis, Rostow and others . Actually, the inputs of production cannot add values to themselves; skilled, able and competent people have to assist in combining inputs of production in order to realise goals. The unavailability of efficient and capable human beings who can assist in adding values to raw materials will deter efficiency in the use of societal resources. Consequently, there is underutilization of various resources endowment with some defections which metamorphosed to low production, low income, low saving, low capital formation, low investment so leading to low production. This is the vicious circle of poverty, which is in line with Nurkse (1957) insight who articulated that a country is poor because it is poor. In a similar vein, Ozoh (2010) enunciated the problem of â&#x20AC;&#x2DC;growthlessnessâ&#x20AC;&#x2122; in under-developed economies on the foundation of defective and socio-political institutional setup, poor attitude to work, crude technology, low quality human capital, insufficient infrastructure, epileptic power and water supply, financial instability, indiscipline amongst others which reacted in different ways to perpetuate the vicious circle of poverty.

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Rosenstein-Rodan (1947) in his â&#x20AC;&#x2DC;Big Pushâ&#x20AC;&#x2122; thesis asserted that there is a minimum level of resources investment that must be devoted to developmental activity if a country is really interested in development and growth. Such quantum of investments include among others the establishment of physical capital inform of factories that are interdependent in such a way that the output of a sector forms input of another sector with associated benefits derivable from such investments. The classical economists have the conviction that education equips an individual to perform. To Alfred Marshall the investment in human being is one of the most valued capitals because of what human being can do after knowledge acquisition. Federal University Ndufu Alike Ikwo (FUNAI) is aimed at equipping undergraduates including those from Ikwo on the ability and capability to function. The neoclassical stressed on population growth and rate of technical progress as essentials for growth and development. This gives rise to a good number of labour forces who can contribute to production and income generation. The gradual upsurge of students, workers and business people in and around FUNAI is a welcome development. As a result, there is increase in the population of Ikwo owing to the establishment of FUNAI which has given room for increased economic activity in the area. Specifically, Solow-Swan model (neoclassicists) do not stress on human capital development but on increased capital, technological progress and the effectiveness of labour. However, the exact meaning of labour in economic growth determinant is not specified. To them the economy combines capital, labour and knowledge to produce output. Tertiary institution is the foundation for equipping human capital with new and modern technology required to harness environmental resources and transformation of a society. The endogenous growth models valued human capital development as imperative for growth and development of an economy. Their finding denoted the existence of a variety of endogenous mechanisms that foster economic growth and opined the need for public policy makers to incorporate it. These endogenous perspectives can be seen in the works of Arrow (1962), Romer (1986), Lucas (1988), Mankiw et al (1992). Actually, there is a ripple effect of the advancement of human capital in an area. The wind effect of enlightened individuals in an area impacts positively in the advancement of a society. Mankiw et al (1992) have the conviction that a proportional slight alteration in the resources dedicated to physical and human capital buildup may give rise to huge changes in the product per worker. This presupposes that investment in both human and physical capital either in the rural or urban area, other things being equal have the tendency to revive and transform the economy from its stationary state to dynamic progressive one. Apart from human and physical capital is the role of the government in catering for the people with relevant policies and programmes capable of promoting, sustaining and revitalizing the system. 2.1 The concept of the multiplier Undoubtedly, scholars have pointed out the multiplier effect of investment or increase in investment in an area. Investment whether in the form of private profit oriented or public sector investment in non-commercialised institution have the inclination to exhibit the multiplier effect. Dwivedi (1997) sees the multipliers as the ratio of the change in national income to change in investment which gives rise to income change. The concept of national income effect can be related to the effect in a local or regional area. Investment helps to put in place required physical capital for production which has expansionary effect. In other words, the multiplier concept has it that investment will increase national income by an amount of income greater than the original level of investment expenditure. Clark (2010) points out that the multiplier is the cumulative effect of an injection that is larger than the initial impact. This implies that a new investment

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gradually brings about various effects that eventually show greater value than what was invested at the on-set. This implies that an investment in an area ceteris paribus has the ability to increase employment, income and output, thereby boosting the societal economic activity. This effect is obvious in a developing economy like Nigeria that has serious unemployment problem. This is in line with the findings of Abiad et al (2015) that an increase in public investment impact positively on output by raising it both in the short and long term, crowds in private investment and lessen unemployment situation. Public investment was found to reduce unemployment rate by 0.11 percent in the short term and about 0.35 percent in the medium term. Public investment expansionary effect is visible with respect to productive capacity of the economy and it equally supplements physical infrastructure stock. The stimulus of investment is highly beneficial. Oâ&#x20AC;&#x2122;Farrell (2012) in his remarks on Irlend Department of Finance figure showed that a million pound investment spending in construction creates between 8,000 and 12, 000 jobs. It can be inferred that beside job creation is also income generation and other positive externalities. The Keynesian effect of multipliers reveals two impacts of investment which is viewed as short-term effect with respect to raising demand; employment of labour does empower the purchasing and spending ability of the people in the wider society. Secondly is the long-term effect is with respect to supply effect (Abiad et al, 2015, Oâ&#x20AC;&#x2122;Farell, 2012). Raising the stock of capital, which is investment in physical capital, will increase productivity of workers and output volume of the economy. In a similar view, Auerbach and Gorodnichenko (2013) points out that raising public infrastructure has the capability of boosting aggregate demand via short term fiscal multiplier and the size of the impact may vary with the state of the economy. Intuitively, a developing economy may have higher effect because of abundant idle and unemployed resources. The effects are needed so much in Nigerian rural areas that have high level of unemployment if and only if there will be increased public and private investments. The establishment of FUNAI gave rise to series of employment of workers: from other universities, unemployed workers in the locality and outside; induced some people not in the labour force to opt for job. Unused land became in use for erecting of buildings and roads. The new establishment obtained other direct factors of production locally and outside the locality. The effect of the new establishment is also seen in the purchase and consumption of locally produced goods and services due to income realised by employees. The increased demand from local dealers compelled them to demand for more labour and other inputs of production with the intention of meeting up rising demand for their products. The chain reaction in the locality is stimulated by the existence of FUNAI. This activity has been beneficial to the locality with respect to improving living standard because of more income circulating in the area, and it goes on and on generating more income and more capital investment which eventually the cumulative effect exceeds the initial investment. 2.2 EFFECTS OF INVESTMENT MULTIPLIER IN RURAL AREAS Clark (2010) pointed some of the effects of investment multiplier thus: (i)the direct effect which is increased output or income generation by the local people engaged in production and increased local employment of resources that has the advantages of stimulating production, reduction of unemployment and crime reduction. A good number of idle persons took decision and make good use of the opportunity and started petty business with the motive of earning income.

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(ii) the indirect effect is noted by the employees of the new university demanding for the products of the locality such as food, accommodation, transport, patronise cobblers among other services available. This in turn brings about more demand for input of production by seller/producer in order to meet effective demand. In actual fact, the staff of the university is induced to make some purchases in the local market which means increase sales unlike before the university establishment. (\iii) the feedback effect is the attitude and reactions of farmers, producers and services providers who have the need to employ more workers and other input of production aimed at satisfying the rising demand. From the foregoing, public or private spending goes beyond the policy expectation by generating increased aggregate economic activity leading to more resources that have aggregate positive impact in the locality in particular and the wider society in general which is more than proportionate initial investment. So, on the basis of the multiplier concept, it can be inferred that the final impact of the establishment of FUNAI (public investment) is greatly influencing socially and economically on its environment which has gone beyond the direct policy intention of manpower development but also tremendously reviving and revitalising the operation and consciousness of the inhabitants. 2.2 .1 Socio-economic effect of FUNAI in Ikwo The Federal University Ndufu Alike Ikwo (FUNAI) emerged in 2011 but commenced academic activity in November 2012. At the onset of its construction till date, it has generated some socio-economic effects in Ikwo and environs. Idle resources such as land and labour have been put to use which is a welcome development, cherished by the inhabitants and other stakeholders. Various activities which were not in existence have emerged. However, we are going to examine the socio-economic effects of the establishment of FUNAI on the basis of the following: employment, commerce and trade, effective demand, skill and knowledge acquisition. 2.2.2 Employment, commerce and trade: It is worthy to note that virtually all input of production have become greatly in use in Ikwo since the inception of FUNAI unlike before. The local people participated actively during the construction of building in the school premises. Many artisans within and outside the area were hired to do some works. When the school took off, many indigenes of Ikwo were permanently employed ranging from cleaners, messengers, security men, drivers, administrative and academic staff. A good proportion of the earned income is spent to buy food and other needs from the inhabitants of Ikwo. This increased consumption of the local goods creates market for farmers, food vendors and retailers of goods. Hence, there is increased employment of idle resources of the area. This would not have happened if such public investment was sited at urban part of Ebonyi state. The employment, commerce and trade issues can equally be seen in the emergence of hair dressing and barbing saloons, hawkers and petty traders, canteens, business centres among others which supply goods and services to both workers and students. Each operator earns a living from such venture. It is also worthy to mention that those idle minds who now are preoccupied with economic activity due to one form of employment or another have somehow exonerated from criminal acts. This is on the basis or assumption that an idle is a devil workshop. Relative calmness is obvious in a community when the unemployed is engaged in income yielding activity. Changed thought pattern from criminality to doing business or gaining employment brings creativity and organised life style that is favourable to the individual in particular and to the society in general.

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Employment of resources can equally be viewed with respect to private individuals erecting buildings for accommodation around FUNAI and also hotels are gradually springing up. Workers, students’ parents, guests and others patronise the hotel owners and landlords. There is also increase in transport business in the area due to increased population of students and workers hence there is increased demand for transport. A motor park has also sprang up opposite the university gate for travelers. Workers, students, visitors and contractors do patronise the motorists. These chains of economic activities are attributed to the public investment in form of university at Ikwo. Some able bodied young men have now gone into the hire purchase agreement to take motor bike for 'okada' ridding business. The aforementioned, although focused in rural locality conforms with the views of Wang and Wen (2013) who pointed out that government spending have remarkable trade-off since it may considerably enhance aggregate output in the developing economy that has massive market failures and also during recession period. It may bring about adverse economic effect such as inflation. However, in Nigeria, economic revival opportunity for rural area is very possible with government investment inconsideration of the status of most rural areas of the country. Actually, resources allocation in rural setting in Nigeria with respect to market allocative process is debilitated by a lot of factors and there is high ineffective demand in most rural areas of the country due to little or no income by a large proportion of the inhabitants. And also lack of facilities for effective business operation. Besides, there exists bad roads and poor road network for conveyance of local outputs to points of needs. The cost is so enormous for rural producers. 2.2.3 Effective demand: A corollary to increased employment is effective demand in the area. Producers or sellers of economic goods flourish under effective demand which is experienced in Ikwo and the neighbouring villages. Petty traders around and occasional Nwapu market has witnessed increased sales, which has repositioned production in the area. The increased population of the area due to workers’ and students’ presence has raised the demand of virtually all commodities on sale. The effect of demand has given rise to more employment of inputs of production by the local entrepreneurs and business dealers. Many people have now engaged in one form of economic activity or the other which means income generation and reduction of poverty level. Income generation helps the dweller to finance the education of their children, health and consumption which benefits the locality in particular and impact positively in the region. These effects agree with Auerbach and Gorodnichenko (2013); Clark (2010); Pataki (2005) who pointed out that the three main effects of investment ─ directs, indirect and induce effects do cause ripple effects. The direct effect shows immediate employment which its effects is associated with positive change in the demand for the industry’s product on the one hand and the indirect and induce effect brings chains of effective demand from businesses that emerged and operated because of the main investment. So, the various jobs creation resulting from direct, indirect and induce effects have greatly empowered inhabitants within and other people, thereby showing positive effect on the aggregate income of the country. Any action of the government directed to promoting effective demand has a way of inducing producers to work for the supply of output in order to meet demand. Alexiou (00) notes that policies designed to enhance effective demand can significantly work to accelerate employment and thereby improve economic performance. Effective demand can be through public investment in infrastructure or establishment of institutions, irrigation amongst others. 2.2.4 Skill and knowledge acquisition The university is a centre for learning and excellence. The existence of FUNAI is aimed at raising skill acquisition and the quality labour of both the people of the locality, its environs and

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others who desire educational knowledge acquisition at FUNAI. Knowledge is said to be power and requires a huge capital to establish centre of learning. Poverty alleviation and rural development is positively related to the existence of training institution. This role of enlightenment, skill acquisition and human capital empowerment has the ability and capability to revive a poor rural area. This is in line with the endogenous growth model which stressed on human capital development is a major prerequisite for advancement and progress of a region. This is because of what human capital can do when empowered through education. So, the socio-economic implication of FUNAI cannot be overemphasized. The emergence of faculties in FUNAI such as science and technology, basic sciences, social sciences which is housing courses like entrepreneurial studies, economics and development studies amongst others is geared toward training future developers and experts whose roles within the area and outside is expected to impact considerably in the country. Ignorance which is among the basis for disagreement, acrimony, disharmony, conflicts, uproars and wars are considerably wiped away with education which FUNAI stands for, for the Ikwo community in particular and the entire country in general. Various professional required in making life easy and meaningful are the products of universities. Omole (2009) in his remarks pointed out that where if not in tertiary institutions we train the bankers, the lawyers, the engineers, the doctors, the agriculturists, the architects, the accountants, the teachers, the administrators and so on. Many undergraduate are undergoing training in professionals courses in FUNAI and their products are hoped to be agents of positive change. Adequately trained and skilled manpower cum physical capital are essential for economic development of any economy. The instruments of production and material resources cannot operate or add values to itself. They must be used by skilled, able and competent people trained in institutions of learning. Where there are no well trained people who are capable and able to help add values to raw materials, the area will experience inefficiency in the utilisation of resources of the society. Consequently, the society will witness under-utilisation of various endowed resources which means low production, idleness and above all unemployment. Eboh and Uma (2010) and Ogbonna (1984) pointed out that the talents of the people are awakened through manpower transformation due to training which increases skills, creative ability and productivity leading to better income that will culminates to desirable per capita income and economic development. When the pool of knowledge and skills of the people of a locality increase; the existing abundant resources can be used more productively, and better decision on how to progress is the outcome. Inadequate skill and knowledge due to lack of training centres retard productivity and affects adversely economic development. So, education and human development is one of the major keys required for development. In other words, manpower deficiency leads to lack of efficient and talented entrepreneurs which is associated with unfavorable economic, social, political and institutional set up thereby preventing the development of efficient and talented entrepreneurs. Consequently, giving rise to the existence of low managerial and operational efficiency, lack of enterprise, innovations and specialisation. Other things being equal, FUNAI will help to a great extent remedy most of the predicaments of the poor.

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3.0 Poverty reduction implications of FUNAI in Ikwo As rightly mentioned human and physical capital are required in a right mix to aid the development and growth of an area. One of the major concerns of the poor is how to get employment so as to earn income which will enable them satisfy their physiological needs and also possibly embark on training for skill acquisition in order to escape from poverty. FUNAI is a capital intensive establishment by the federal government of Nigeria and has created varieties of jobs, thereby empowering Ikwo people and its environs and even beyond. Impressively, the direct effect of the institution which gave rise to appreciable employment; the indirect and induced effects which generated jobs and income; in our perspectives it has assisted in different ways to positively impact on poverty reduction. Calory intakes, adequate health care, decent living accommodation and other needs depend on income level of a person. One who earns something is better disposed to help self and others more than one who is idle and earns nothing. Various means of earning income resulting from FUNAI existence in Ikwo is seen to play a significant role in poverty reduction. Given the multifaceted and multi-dimensional nature of poverty in Nigeria, any form of investment either private or public is a welcome development because of the role it plays in empowering the people, thereby restructuring and repositioning their ways of live from pauper to prince. The income earners can now participate actively in local development intention of the Town Development Union. Increase in the union financial members implies the ability of the area to embark on self-development projects which is favourable to the community. The aged who have no means of sustenance due to lack of government policy for the non-productive elderly people, especially the retired self-employed can now see who to depend on owing to employment generation that have absorbed the children and wards of the aged resulting from the effects of FUNAI existence. In his concern for educational ability Agenor (2000) states that educational accomplishment is a very important factor that influences a personâ&#x20AC;&#x2122;s earnings ability and of raising countryâ&#x20AC;&#x2122;s stock of human capital. Poverty ridden families are usually gripped in low level of education, low-skill, and low-income trap; they really cannot have enough money to sacrifice their menial present income and pay for educational training. FUNAI at the door steps of the poor is a welcome development aimed at empowering the poor and also helps them to walk away from poverty situation. 4.0 Way forward and conclusion In view of all discussed and enumerated, it is our sincere conviction that the degree of poverty in the rural areas of Nigeria can practically be tackled gradually if efforts have been focused toward the establishment of public investments in the rural area. The multiplier effect would have tremendously helped to revive the endemic poverty situation in Nigeria. The recent establishment of eleven federal universities of which some were cited in the rural areas is a right step toward poverty alleviation. Apart from investment in universities and tertiary institutions, public investment in irrigation and integrated agriculture in a rural part of each of the 774 local government areas in Nigeria will equally impact desirably in repositioning the poor in the areas. It is utmost important for the government to reform the rural environment in such a way as to encourage domestic and foreign investors to opt for investing in the area. This calls for provision of capital overheads, good road net work, regular power supply, pipe borne water and adequate security of life.

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Provision of more mouth-watering incentives in form of fiscal and monetary policies should be made by the government so as to enable private investors to willingly accept to invest in the rural areas and also to encourage local entrepreneurs not to migrate to urban areas. Conclusion The paper has unraveled the fact that public investment in rural area has the ability to revive a depressed economy through the multiplier effect. Employment creation and increased indigenes participation in productive activity due to public investment helps them to earn income needed to rise above poverty line. Visible and practical changes with respect to employment and poverty alleviation are good evidence of the impact of the government establishment of nonprofit making institution like FUNAI in Ikwo. This action is regarded as a more practical way of stimulating productive ventures in the rural area which crowds in private investment. The positive socio-economic effects of public investment in a rural setting is enormous and should be encouraged in order to enable the rural dwellers to gradually walk away from poverty ridden consciousness. REFERENCES Abiad, A, Furceri, D and Topalova, P (2015). ‘The Macroeconomic Effects of Public Investment: Evidence from Advanced Economies’, IMF Working Paper No 95. 2-26 Agenor, P.R (2000). Economics of Adjustment and Growth. Vol 11, Forthcoming Academic Press. Alexiou, C (00). ‘Effective Demand and Unemployment. The European Case: Evidence from Thirteen Countries’. Retrieved on March 19, 2016 from http://aei.pitt.edu/741/1/ICAlexiou.pdf Auerbach, A, and Gorodnichenko, Y (2013). ‘Measuring the Output Responses to Fiscal Policy.’American Economic Journal: Economic Policy 4 (2): 1–27 Byrns R.T. & Stones, G.W. (1981) Economics. (USA: Scoff Foresman and Company) Chenery, H. B. and Eckstein, P (1970), ‘Development Alternative for Latin America’ in Journal of political Economy, part 11 Clark D (2010) Regional and Local Economics Lecture Note, Centre for Local and Regional Economic Analysis, University of Portsmouth.. Retrieved on March 13, 2011 From https://www.economicsnetwork.ac.uk/sites/default/files/Dave%20Clark/1002a.pdf Dodald, S. W (1963). Price Theory and its Uses, Boston: Houghton Mifflin Company Dwivedi, D.N. (1985): Principles of Economics. (New Delhi: Vikas Publishing House PVT Ltd). Dwivedi, D.N. (2002): Managerial Economics. 6th Edn. (New Delhi: Vikas Publishing House PVT Ltd). Domar, E.D (1957). Essays in the theory of Economic Growth. New York: Oxford University press. Earth-Trends.(2003). ‘Economic Indicator-Nigeria,’ retrieved on July 20, 2013 from http://earthtrends.- wri.org. Eboh, F.E & Uma, K. E (2010), ‘Quality Manpower and Nigeria Economic Development,’ in Abia Journal of Population Studies, 1,178-194. European Commission. (2014) ‘An Investment Plan for Europe’. Retrieved on May 7, 2016 from http://ec.europa.eu/priorities/jobs-growth-investment/plan/index_en.htm.

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