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- 17 - Business and Management Studies
- Submitting institution
- Brunel University London
- Unit of assessment
- 17 - Business and Management Studies
- Summary impact type
- Societal
- Is this case study continued from a case study submitted in 2014?
- No
1. Summary of the impact
Dr Dey’s and Dr Al-Karaghouli’s research on digital consumer culture, customers’ satisfaction and service quality, has influenced the strategic decision-making and marketing communications environment at Three UK. The telecommunications and internet service provider which is ranked in the Top 4 of market share holders among mobile operators, had commissioned Dr Dey and Dr Al-Karaghouli to prepare a technical report on the impact of speed on consumers’ switching intentions in the UK mobile telephone industry in September 2016. Three UK subsequently used the research to reinforce their own assessment of speed and to revamp their advertising campaigns which had a direct influence on the creation of their 2018 and 2019 television commercials for mobile phones.
2. Underpinning research
Dr Dey (then, Senior Lecturer) and Dr Al-Karaghouli of Brunel Business School have conducted extensive research on digital consumer culture, customers’ satisfaction and service quality. (Ref. 2; Ref. 3; Ref. 4). Dr Dey’s work conceptualised and theorised digital consumer culture (Ref.5) and explored and analysed consumers’ interaction with and appropriation of digital technology (Ref.6)
Their most recent research project concentrated on the role speed plays for UK mobile telephone customers (Ref. 1).
Mobile telecom is a highly competitive industry where each operator’s products are seen as only partial substitutes for other providers’ products. Mobile operators try to retain and grow their customer base through differentiated products and services that have multiple attributes. As a result, a wide range of factors may influence customers’ assessment of mobile telecom services and in turn influence their decision to remain or switch. It is important for operators and policy makers to know which factors influence a customer’s decision to remain with and switch from their existing provider as the cumulative effect of this type of decision will have a major impact on competitive dynamics.
In addition to basic product features such as quality of voice calls and text messaging services, customers are likely to value other features such as data network coverage and speed of Internet access. However, it is not clear from the existing literature whether internet speed on mobile telephones has any influence on customers’ service satisfaction and subsequent switching decision. This lack of clarity inhibited mobile telephone service providers’ marketing strategies and endeavour to offer and promote appropriate service features. Even if they attempted to highlight speed as a decisive factor, due to a lack of academic research regulatory bodies such as Ofcom, did not properly recognise their claims. This was the case when Ofcom blocked Hutchison’s (widely known as Three Mobile) campaign geared towards investigating whether in the changing market environment consumers take notice of speed which in turn affects their perception of the brand and value of the network provider.
After Ofcom’s evaluation, Three UK commissioned Dr Dey and Dr Al-Karaghouli in September 2016 to produce independent academic research to test the impact of speed on consumers’ switching decisions in the UK mobile telephone industry. Dr Dey and Dr Al-Karaghouli took a marketing perspective and developed a conceptual framework from critically analysing the extensive review of the relevant academic literature that selected on consumer behaviour, branding and electronics engineering (Ref. 1).
The research findings showed that customers rate speed as the second most significant component of service quality after call quality, when choosing a mobile telecom provider. Their data also confirmed that brand image is positively associated with speed and a significant driver in the creation and maintenance of a company’s perceived value among mobile telephone customers.
3. References to the research
Ref. 1 Dey, B. L., Al-Karaghouli, W., Minov, S., Mohiuddin Babu, M., Ayios, A., Muhammad, S. S., & Binsardi, B. The Role of Speed on Customer Satisfaction and Switching Intention: A Study of the UK Mobile Telecom Market. Information Systems Management (2019 ). 10.1080/10580530.2020.1696526
Ref. 2 Muhammad, S.S., Dey, B.L. & Weerakkody, V. Analysis of Factors that Influence Customers’ Willingness to Leave Big Data Digital Footprints on Social Media: A Systematic Review of Literature, Information Systems Frontiers (2018) 20: 559-576. 10.1007/s10796-017-9802-y
Ref. 3 Kizgin, H., Jamal, A., Dey, B.L. et al. The Impact of Social Media on Consumers’ Acculturation and Purchase Intentions, Information Systems Frontiers (2018) 20: 503-514. 10.1007/s10796-017-9817-4
Ref. 4 Alzahrani, L., Al-Karaghouli W., Weerakkody, V. Analysing the critical factors influencing trust in e-government adoption from citizens’ perspective: A systematic review and a conceptual framework, International Business Review, (2017) 26: 164-175. 10.1016/j.ibusrev.2016.06.004
Ref. 5 Dey, B.L., Yen, D. and Samuel, L. (2019) ' Digital consumer culture and digital acculturation'. International Journal of Information Management, 51. pp. 102057 – 102057. 10.1016/j.ijinfomgt.2019.102057
Ref. 6. Dey, B.L., Balmer, JMT., Pandit, A. and Saren, M. (2018) ' Selfie appropriation by young British South Asian adults: reifying, endorsing and reinforcing dual cultural identity in social media'. Information Technology and People, 31 (2). pp. 482 – 506. 10.1108/ITP-08-2016-0178
4. Details of the impact
Meeting the high competitions and the rapid consumers’ demand for the wide use of smartphones and increasing subscription to high speed data networks, there is a predictive trajectory of customers’ growing reliance on Internet-mediated services and facilities. A 2016 Ofcom report on ‘Coping in the connected world’ suggests that 9 in 10 adults in the UK go online every day and indicates that smartphones and tablets offer the most convenient means for being connected with the Internet world. A 2020 ‘UK Mobile Phones Market Report’ from Mintel, one of the largest market intelligence agencies globally, estimates that the UK smartphone market was worth GBP6,520,000,000 in 2019. Providers within the UK mobile telephone industry therefore continually determine how consumers choose providers (e.g. based on speed and coverage) in order to keep up in a competitive market and growing userbase. The measures are required to stay ahead of competitors, acquire new customers and retain existing customer base by achieving customer satisfaction through high quality products and services.
Three UK carries 36% of the UK’s mobile data traffic and is the fastest growing network in the country which covers more than 97% of the population. With approximately 10,100,000 active customers who use over 3.5 times more mobile data than the industry average, they are one of the most popular mobile telephone providers in the UK.
Dr Dey’s and Dr Al-Karaghouli’s research outputs in the form of the project report and published article were submitted to Ofcom to reconsider their initial decision of blocking Three’s campaign. Although the outputs did not make significant changes in Ofcom’s position, the documents were widely used by the Three management.
Dr Dey’s and Dr Al-Karaghouli’s research findings informed the ways in which Three engages with regulators. The Senior Strategy Manager of Three confirms, that the report “validated our initial assumptions that in the changing market environment consumers pay increasing attention to speed which in turn contributes to their perceptions of the brand and value of a network provider” (E1).
Three subsequently used the document as a point of reference for their current and future strategies, which increasingly recognise the importance of speed. While remaining compliant to Ofcom, the report produced by Dr Dey and Dr Al-Karaghouli has improved the quality of discussion at Three. Prior to the report, Three was unsure whether their own assessment, which showed that it is worthwhile putting speed to the forefront, was accurate. However, the research “reinforces and concurs with our own assessment of speed,” says the Senior Strategy Manager, and it has convinced them to stick to their existing operational strategy (E1). Importantly, it also influenced their decision to make speed a core part of their strategic decision-making and marketing communications.
Three used the research findings to enhance their brand image and customers’ perceived value, and discourage them from switching to a competitor. For example, they have made both call quality and speed key aspects of their marketing communications in order to grow their position in the UK mobile telecom industry.
Three’s recent advertising campaigns highlight the importance of customers’ perceived value underpinned by the call quality, brand image and network speed. Their 2018 TV ad ‘Phone History #PhonesAreGood’ “for instance has strong indication that speed has significant impact on consumption experience” (E1). It also comically depicts how major historical events could have been alleviated if only the people at the time had had a good smartphone with excellent speed by their side (such as the Captain of the Titanic successfully circumnavigating the iceberg and Henry VIII averting any unfortunate marriages with the means of a dating app). Likewise, the 2019 TV ad ‘The Switch | Switch to Three’ advertises the high influence of call quality on consumers when depicting a customer at sea with perfect reception on her mobile phone.
Dr Dey’s and Dr Al-Karaghouli’s research have informed the strategic decision-making process and marketing communications at Three UK, a company that ranks in the top 4 mobile operators that hold the biggest market share in the country. Three UK confirms that they “plan to make further progress with our partnership with Dr Dey, Dr Al-Karaghouli and Brunel University London to explore and apply further implications of the research” (E1).
- Submitting institution
- Brunel University London
- Unit of assessment
- 17 - Business and Management Studies
- Summary impact type
- Societal
- Is this case study continued from a case study submitted in 2014?
- No
1. Summary of the impact
In response to Dr Bidit Dey’s research on co-creation in mobile telephone industry, the Bangladesh Government has confirmed that they are applying key research findings in their current and future policies in supporting the electric vehicle industry. The empirical and conceptual contribution of Dr Dey’s research on mobile telephone industry in Bangladesh has profound implications on the electric vehicle industry as the latter can be supported by creating a bricolage of support SMEs, involving NGO sectors and initiating vocational training.
2. Underpinning research
The use of various forms of ICTs (information communication technology) such as mobile telephones can foster the socio-economic progression of developing countries. Contextually appropriate designs and usages are needed for ICTs to deliver value to various parties within the socio-economic spheres of developing countries that have different needs and wants compared to those of the developed world. Sustainable design and development of smartphone industries in the developing world, and their contribution to socio-economic wellbeing, has drawn significant research attention.
Dr Dey (then, Senior Lecturer) has been researching on this area for the last 5 years to explore how various stakeholders symbiotically interact and create value in developing countries (Ref.1; Ref. 2; Ref. 4), where large multinationals have limited access and engagement. In his work, he has explored and analysed various factors and their inter-relationships that initiate, support and disseminate technological innovation. Drawing on the theoretical lens of co-creation of value, his research examines how technology upgrading is achieved in the context of a developing country such as Bangladesh. He has examined the issue in multiple contexts including Bangladeshi and Indian mobile telephone industries (Ref. 2; Ref. 4; Ref. 5) and mobile banking sectors (Ref. 1). His research on Bangladeshi farmers’ use of mobile telephones (Ref. 5) and South Asian consumers’ engagement with social media (Ref. 3) offers useful insights into consumers’ engagement with small and large businesses. Dr Dey co-edited a monograph (Ref. 6) for Palgrave McMillan that push the boundaries of technology mediated development for under privileged communities.
Bricolages, constituted by SMEs with or without direct support from large multinational corporations, are a significant aspect of the surge in telecom industry. As Dr Dey’s research found, the role of not for profit organisations and their partnership with other stakeholders such as vocational institutes and small entrepreneurs drives innovation. However, this nature of collaboration and collective endeavour to foster sectorial development is not distinct to the telecom sector only, albeit the manifestation of this particular attribute is quite remarkable in that sector. It is closely linked with the underlying principles and philosophies that characterise the business culture in Bangladesh. As such, Dr Dey’s research suggestion to support SMEs and encourage other stakeholders (for example, NGOs and vocational institutes) to collaborate with a view to trigger a bottom up approach to sectorial development is highly palatable to the nascent electric vehicle industry in Bangladesh.
Dr Dey’s research suggests technology upgrading can be achieved even without some of the key prerequisites such as financial, institutional or infrastructural facilities cited in existing literature. On his various research projects, he conducted interviews with industry experts, SME owners, senior corporate executives of large enterprises of Bangladesh and India and extracted data from secondary sources (social media, company reports, newspapers etc.) to develop strong empirical evidence that was theorised to generate generalised conceptual underpinnings.
Dr Dey’s research findings offer useful theoretical and policy implications by providing deeper understanding of the interactions and inter-relationships of those who have involvement in the value creation for mobile telephony and contribute to the development of effective business models and technological innovations for these marketplaces. The findings have broader implications that can be applied in other national and industrial contexts.
3. References to the research
Babu, MM., Dey, BL., Rahman, M., Roy, SK., Alwi, SFS. and Kamal, MM. (2020) ‘Value co-creation through social innovation: A study of sustainable strategic alliance in telecommunication and financial services sectors in Bangladesh'. Industrial Marketing Management, 89. pp. 13 - 27. https://doi.org/10.1016/j.indmarman.2020.06.003
Rahman, M., Bose, S., Babu, MM., Dey, BL., Roy, SK. and Ben, B. (2019) 'Value Co-Creation as a Dialectical Process: Study in Bangladesh'. Information Systems Frontiers, 21 (3). pp. 527 - 545. https://doi.org/10.1007/s10796-019-09902-4
Dey, BL., Sarma, M., Pandit, A., Sarpong, D., Kumari, S. and Punjaisri, K. (2019) 'Social media led co-creation of knowledge in developing societies: SME’s roles in the adoption, use and appropriation of smartphones in South Asia'. Production Planning and Control, 30 (10-12). pp. 1019 - 1031. https://doi.org/10.1080/09537287.2019.1582106
Dey, BL., Babu, MM., Rahman, M., Dora, M. and Mishra, N. (2018) 'Technology upgrading through co-creation of value in developing societies: Analysis of the mobile telephone industry in Bangladesh'. Technological Forecasting and Social Change, 145. pp. 413 - 425. https://doi.org/10.1016/j.techfore.2018.05.011
Dey, BL., Pandit, A., Saren, M., Bhowmick, S. and Woodruffe-Burton, H. (2016) 'Co-creation of value at the bottom of the pyramid: Analysing Bangladeshi farmers' use of mobile telephony'. Journal of Retailing and Consumer Services, 29 (2). pp. 40 - 48. https://doi.org/10.1016/j.jretconser.2015.10.009
Dey, BL., Sorour, K. and Filieri, R. (2015) 'ICTs in developing country: Research, practices and policy implications'. Palgrave Macmillan https://doi.org/10.1057/9781137469502
4. Details of the impact
The Government of Bangladesh has used key aspects of Dr Dey’s research findings on ICTs and co-creation in the mobile telephone industry to shape their policies in supporting the electric vehicle industry (E1).
Bangladesh needs to find alternate sources of energy because the nation is running out of supplies. The country is already one of the world's most energy-poor countries, and there is a large gap between power supply and demand. In rural areas, only 42% of the population have access to electricity, and the Government has been struggling to boost production. As Bangladesh is also among the countries most vulnerable to the effects of climate change, it has vowed to use 100% renewable energy by 2050. However, the country is off track to meet that target.
The Ministry of Power, Energy and Mineral Resources of the Government of Bangladesh is determined to change this. In 2018, the State Minister confirmed that the Ministry “has received useful insights and practical implications” from Dr Dey’s research on ICTs and co-creation, which will inform the implementation of policies in the energy sector.
As the Government of Bangladesh is now undertaking detailed plans for supporting electric vehicles, the empirical and conceptual issues highlighted in Dr Dey’s research have generated significant interests. The Government has used Dr Dey’s research in strategies and policies designed to support the growth of the electric vehicle industry in Bangladesh. As such, a letter (E1) has been issued commending the research and acknowledging its relevance and contribution.
Further to the letter issued by the State Minister, the Government’s Department (commissioned to assess policies and regulations to run and monitor projects in the energy sector), acknowledges that there is strong ground to promote bottom up sectorial and technology development in the electric vehicle industry, as a result of the key research insights from Dr Dey.
By the middle of 2019, Bangladeshi local firms have pledged to set up a plant worth USD200,000,000, equivalent to GBP153,820,000 (11-2020), to assemble all-electric and hybrid vehicles indicating the prospect of growth in this area. Now, the country imports most electric third-wheelers from China and India, but if the country wants to be more self-sufficient energy-wise, it needs to resource local capabilities. However, the country has limited infrastructure for maintenance to the electrical systems, battery recharging and servicing of electric vehicles, which are often different from those of fossil fuel driven vehicles.
In light of this local investment, Dr Dey’s research recommendations have shown the Government “how SMEs co-create a bricolage of innovative services in a country like Bangladesh that has limited operations of large multinational corporations” (E1). The research has provided the Government with the understanding that they need to collaborate with the 135 petrol pumps and 500 registered garages and vehicle repair centres in Dhaka in addition to relevant entrepreneurial ventures, because their contribution to the collective development of this industry is immense. Dr Dey’s research has found that collaborating and engaging with them is imperative in order to understand the nature of their business and develop effective ways to integrate them within a broader industrial boundary.
Furthermore, as Dr Dey’s research indicated, there is a dearth in vocational training on this engineering expertise in Bangladesh which is a major impediment for the development of relevant expertise and skills. Skills and expertise are often informally transferred and there is a lack of organised method for sustainable development of expertise. Following these research findings, the Ministry of Power, Energy & Mineral Resources, has changed its aims and now wants “to involve NGOs, initiate training programmes for small business entrepreneurs, and promote dialogue and cooperation among all concerned stakeholders to formulate effective policies” (E1).
“For a developing country like Bangladesh that has perennial energy crises and increasing level of pollution, the availability of electricity in the remotest areas of the country, would bring about significant economic and environmental benefits” (E1). Becoming a more energy-sufficient country with the support of Dr Dey’s research will prepare Bangladesh for global-level competition, and this preparation will be an important factor for success in the future, both in terms of economic and environmental progress.
Dr Dey’s research has made a significant contribution in clarifying the points the Government needs to consider in this undertaking and has served a significant piece of reference in formulating and improving their policies for the electric vehicle industry in Bangladesh.
5. Sources to corroborate the impact
- Submitting institution
- Brunel University London
- Unit of assessment
- 17 - Business and Management Studies
- Summary impact type
- Societal
- Is this case study continued from a case study submitted in 2014?
- No
1. Summary of the impact
Dr Rosli has applied practice-based entrepreneurial research which led to community development in Malaysia. Ulu Sapi in Sabah, the poorest region of Malaysia, have used her work to create an independent marketplace which decreased their need for governmental aid. Smallholders have significantly increased their earnings from GBP85 per 1,000kg to GBP1,318 per 1kg and expanded their businesses into China. Following this success, other constituencies in Sabah have started revising their existing strategies to adopt the same method. Additionally, the Activity Centre for the Older Persons (PAWE) in Putrajaya have used Dr Rosli’s research to expand older adult entrepreneurial activities to alleviate the challenge of an ageing population. The intervention led to a return on investment (ROI) of GBP62,625, following an initial investment of GBP14,150. As a result, negotiations with new industry partners (Telekom Malaysia) and plans to share Dr Rosli’s approach with PAWEs across the nation are now in process.
2. Underpinning research
The National Entrepreneurship Policy (NEP) is a long-term strategy for Malaysia to become an outstanding entrepreneurial nation by 2030. This policy is to create a holistic and conducive entrepreneurship ecosystem to support Malaysia’s inclusive, balanced and sustainable socio-economic development agenda. One of the thrusts is to create a nation that possesses and enculturates entrepreneurial thinking.
Dr Rosli is Reader in Enterprise and Entrepreneurship at Brunel Business School and chair of Practice and Impact SIG at Institute of Small Business and Enterprise (ISBE). Her research reaffirms the importance of effective university-business-community engagement and individual self-initiative (entrepreneurial thinking) to help shape local entrepreneurial business ecosystems (Ref. 1, Ref. 5). This includes the importance of supporting individuals to become self-sustainable and add value to their local community. With Dr Rosli’s expertise in entrepreneurship, university-industry-community collaboration and co-creation, she was able to achieve both, through community development and an intergenerational approach. What makes it more impactful is that the research by Dr Rosli contributes to the debates regarding the strengthening of entrepreneurial capabilities in neglected social groups (the rural entrepreneurs and older adults) (Ref. 4).
Dr Rosli’s research reaffirms the importance of locally available entrepreneurial support to help navigate local challenges, particularly in relation to businesses who generate social or cultural value, whereby “business can strike a balance between social mission and enhanced business performance” (Ref. 3). Furthermore, for many businesses, the focus on a social mission may hamper profitability in the short term although, in some cases, it improves the credibility of the business. She also conducted research into “main characteristics of this support and collectivism” for individual entrepreneurs to stand out, through the “supportive system, collective system, and stakeholders’ impression” (Ref. 2).
The effort by the Malaysian government to ensure that Malaysia continues to grow sustainably through an impartial economic distribution highlights Dr Rosli’s importance of supporting rural and older age communities for entrepreneurship. Her work focuses on rural villagers and older adults and emphasises the importance of “coming together collectively to contribute towards maximising the impact of what they are doing” (Ref. 2). Her work advocates the importance of policies that are aimed at supporting businesses to find new markets for their existing offerings or to work together and repurpose their capabilities to help localized entrepreneurial ecosystems.
Drawing on the research funded by Brunel University London in Malaysia (focusing on rural villagers in Sabah and older adults in Kuala Lumpur), Dr Rosli’s work highlights the benefits that arise when entrepreneurs are involved in practice-based activities. It shows that entrepreneurs are more likely to be successful and their participation in the local economy is likely to result in better social ties, which improve their confidence in handling entrepreneurial activities.
3. References to the research
Ref. 1 Rossi, F., De Silva, M., Baines, N., & Rosli, A. (2020). Long‐Term Innovation Outcomes of University–Industry Collaborations: The Role of ‘Bridging’ vs ‘Blurring’Boundary‐Spanning Practices. British Journal of Management. 10.1111/1467-8551.12449
Ref. 2 Granados, ML. and Rosli, A. (2019) "Fitting in" vs "standing out": How Social Enterprises Engage with Stakeholders to Legitimise their Hybrid Position. Journal of Social Entrepreneurship. pp. 1 - 20. 10.1080/19420676.2019.1604405
Ref. 3 Cacciolatti, L., Rosli, A., Ruiz-Alba, J.L., Chang, J. (2020) Strategic alliances and firm performance in startups with a social mission. Journal of Business Research Vol 106, 106-117. 10.1016/j.jbusres.2019.08.047
Ref. 4 Rosli, A & Chang, J (2020), Team Entrepreneurial Learning in Adult Entrepreneurship Education: Building and retaining knowledge for sustainable businesses, in Colin Jones (ed), How to Become an Entrepreneurship Educator. ISBN: 978 1 78990 002 6
Ref. 5 Chang, J., Rosli, A. (2019). Entrepreneurship Education and Employability Agenda in Malaysia. Innovate Higher Education to Enhance Graduate Employability: Rethinking the Possibilities, 133. 10.4324/9780429058899-12
4. Details of the impact
Dr Rosli’s research has contributed significantly to the development of sustainable ways to support entrepreneurship in marginalised communities in Malaysia such as the poor, economically deprived and older communities. Her work has helped transform individual workers, farmers and producers into entrepreneurs. This was done through building community resilience and establishing their own locally rooted capacity-building exercise to build their business ecosystems (Ref. 2; Ref. 3) whereby support, resources, know-how are created, retained, shared and sustained in the local community. Her work directly supports individuals to take up initiatives, understand who they are—individually and collectively as entrepreneur(s)—and what they stand for as a community.
I. Sabah, Borneo, Malaysia.
Dr Rosli worked with the poorest region of Malaysia. The Ulu Sapi community in Sandakan Sabah (approximately 1,125 inhabitants) has been struggling to survive due to the fluctuation of prices in palm oil, and the lack of economic development in the area. In 2017, the European Parliament issued a resolution to phase out, and eventually ban, biofuels made from palm oil. At the time, Malaysia was supplying approximately 85% of the global trade and the smallholders in Ulu Sapi (who make up approximately ¼ of the community, equivalent to approximately 280 people) were badly affected. Dr Rosli’s work has helped the smallholders to cross the boundary of palm oil dependency, and transition from production-oriented palm oil to entrepreneurship activities such as food production (for example, bird-nests, meat, and poultry), grocery store and hospitality service providers. With the support of Dr Rosli’s work, the smallholders alleviated the “difficulties in generating a fixed income due to the deterioration of prices because of the palm oil crisis” (E1) and established “greater flexibility in dealing with uncertain economic conditions” (E1). They became more confident and equipped in doing business online via their mobile phone, and became less dependent on government subsidies.
As a result, the beneficiaries increased their business sense significantly and were able to create new services for the community, with their own “Dana” in Malays language (which means the collective investment fund), and developed a market place, where local rural businesses can come together, trade openly, and encourage other smallholders to be like them. The Village Head “was so impressed to see the Ulu Sapi villagers’ growth without any support from the local government compared to the neighbouring villagers who received money from the local government” (E1). For instance, one of the villagers used his improved business sense to build a business in edible bird nests. He says, if he had not received Dr Rosli’s training and held onto his existing business in palm oil, he would still be earning RM454, equivalent to GBP85 (11-2020), per 1,000kg. With his new business, he earns RM7,000, equivalent to GBP1,318 (11-2020), per 1kg and he was able to build a client base in China (E1). This means he now earns GBP1,318,000 per 1,000kg, a staggering increase from the original GBP85 before the research intervention. He will be able to pass down this business to his children, thereby contributing to a sustainable economic ecosystem and good foundation for future generations.
The impact of Dr Rosli’s work focusing on self-initiative and building up internal and entrepreneurial competences, also helped the community to “run their businesses in line with Sabah’s unique cultural and natural heritage” (E1) and stay true to their vision to become a major hub for eco-tourism, which preserves their heritage and attitudes towards a clean and safe environment. The Ministry of Tourism, Arts and Culture of Sabah affirms that “Dr Rosli’s work has significantly contributed to Sabah becoming the prime example for the nation that shows how we can quickly build an economically successful rural community without sacrificing [Sabah’s] natural and cultural heritage” (E2). The former Assistant Minister of Tourism, Culture and Environment acknowledges that the Ministry is “keen to adopt this approach further in Tungku District (another constituency in Sabah)” (E2).
He confirms that “the positive outcome from Dr Rosli’s work will provide us with a roadmap to achieve our national target [and turn the country into a true entrepreneurial nation by 2030]” (E2). “Dr Rosli’s research,” the former Minister reports, “had a direct impact on rural business and eco-tourism implementation, which supported the Malaysian government in reaching and training part of the 26% rural population of the country” (E2).
The Ministry confirms that Dr Rosli’s research has “not only enabled the rural communities to strengthen their own capacity for entrepreneurship and community sustainability, but also supported the Malaysian government in reaching their economic targets by 2030” (E2).
II. Older Adult community
The changes in the family structure due to modernisation and urbanisation and the geographic separation increase vulnerability amongst older adults in Malaysia. 15% of the Malaysian population will be above 60 years of age by 2030, and the Ministry of Women, Family and Community Development (KPWKM) has been exploring options for how to ensure sustainability of the third age community with minimal monetary support from the government. Dr Rosli’s work helped the older adult communities in the Putrajaya district with 37,000 registered older adults, to find a new way of working and a strategy for an informed approach towards the growth of older adult entrepreneurial activities.
The Activity Centre for the Older Persons (PAWE) used Dr Rosli’s work for their project ‘Developing Entrepreneurial Mindset through Intergenerational Projects’ and community-capacity building “which has prompted policy and reform activities” at PAWE (E3). The impacts include: (i) improved self-esteem and self-confidence in doing entrepreneurial activities and creating financial solutions (up from 60% to 100%), and (ii) increased integration of technology into the senior citizens’ lives (E3). The president of the association commented: “With Dr Rosli’s help, we were able to scale the project up and are in the middle of negotiations with Telekom Malaysia (TM), the national market leader in telecommunications [with an annual revenue of RM11,430,000,000, equivalent to GBP2,092,987,118 (01-2021)] (E3).”
The president affirms that, “this has enabled us to begin to address the challenge of an ageing population at a larger scale, something that would not have been possible without the research …we are more confident to work on new projects that have never been explored before in PAWE, so PAWE can grow and maintain itself from within” (E3).
Another impact from the project is (iii) improved relationships with the younger generation. Dr Rosli’s work enabled 25 members of the younger generation to experience personal growth and increase their understanding of the challenges the third-age community faces (up from 6% to 94%). The president reports that using Dr Rosli’s research led to such a successful intervention that “we wish to share this work with other PAWE’s across the country, and assist them in their ways towards sustainability. As the Government plans on setting up at least a hundred more PAWEs over the course of the next few years, we look forward to seeing this grow further” (E3).
Finally, the research used by PAWE determined a return on investment (ROI) ratio of RM4.40, equivalent to GBP0.80 (06-2020) for every RM1.00, equivalent to GBP0.18 (06-2020), invested. This is based on a total investment of RM77,213, equivalent to GBP14,150 (06-2020), which was provided by Brunel University London. In total, this contributes to an economic value of RM342,221, equivalent to GBP62,625 (06-2020) (E4). Consequently, the research has benefitted the most disadvantaged people in the poorest region of Malaysia and increased their economic wellbeing and livelihood.
5. Sources to corroborate the impact
Letter from Ulu Sapi Village Head, 14 May 2020 and https://vimeo.com/349176533/9620cf5759 (“SARANG BURUNG - BIRD NEST” Testimonial from Ulu Sapi smallholder in Malay with English captions)
Letter from former Assistant Minister of Tourism, Culture and Environment, Ministry of Tourism, Culture and Environment in Sabah, Malaysia, 3 December 2020
Letter from PAWE, 23 June 2020
Impact Report, Developing Entrepreneurial Mindsets Through Intergenerational Projects, June 2020
- Submitting institution
- Brunel University London
- Unit of assessment
- 17 - Business and Management Studies
- Summary impact type
- Economic
- Is this case study continued from a case study submitted in 2014?
- No
1. Summary of the impact
Prof. Jarvis’ research has resulted in the introduction of a price cap on high-cost short-term credit (HCSTC) by the Financial Conduct Authority in January 2015, which subsequently led to a drop of 31.7% in both revenue and volume of loans by payday lenders in 2016. This has benefitted the most financially vulnerable people in the UK. Since the changes in regulation, ex-customers have received GBP400,000,000 in compensation from the biggest payday lender alone, and the number of payday lenders had dropped by 80% in 2018. Citizens Advice have seen a 50% decrease in consumers needing help with payday loan debts and StepChange Debt Charity reported a significant drop in clients. The UK payday loan industry is now only worth GBP220,000,000, down from the GBP2,500,000,000 in 2013.
2. Underpinning research
Prof. Robin Jarvis has conducted extensive research on the processes of accounting standard setting, financial reporting, and the UK payday lending market (Ref. 1; Ref. 2.; Ref. 3), supported by 2 grants from the Association of Chartered Certified Accountants (ACCA) (Grant 1; Grant 2).
In 2013, the payday loan market was worth GBP2,500,000,000 (equivalent to 10,000,000 loans taken by 1,600,000 consumers). This was up from GBP9,000,000 only 4 years before. This expansion put consumers at serious risk and many experienced significant debt problems as a result. This high number was accompanied by very high interest rates. For instance, the Guardian indicated at the time that the average interest rates for borrowers in payday lending contracts ranged between 1,000% and 4,000%. Citizens Advice saw a 1,000% increase in the number of people coming for advice about payday loans during that time.
These extreme numbers, supplemented by a call for action to overhaul the payday loan sector by the House of Commons’ Business, Innovation and Skills Committee in December 2013 was the motivation for Prof. Jarvis’ research (Grant 1; Grant 2).
In 2014, Prof. Jarvis began working with Mick McAteer who, at the time, was a trustee of the Financial Conduct Authority (FCA) and principal of the Financial Inclusion Centre, and Sarah Beddows, an independent consultant and later employed by the Bank of England. The objective of the research was to obtain a detailed understanding of the business models driving payday lending and the consequent consumer detriment in order to inform the debate in the UK about the rate capping of interest payments. This included an investigation of other regulatory interventions in the market in order to ensure satisfactory outcomes for lenders. The research involved an examination of the behaviours of payday lenders and an analysis of their corporate reports and other supporting documentation (Grant 1).
The key research findings were (Ref. 2):
Establishing the nature of online Payday Lending business models as compared to their retail counterparts. The online businesses had lower operating costs but very high marketing costs. An important feature was sourcing the personal details of prospective borrowers.
Customer Acquisition Costs: these included advertising on TV, internet advertising using internet optimising techniques primarily for new customers, discounting first loans and refer a friend. These costs were significantly representing nearly 20% of the sales value for most providers. These costs were recoverable after a customer’s third loan which included high interest costs and default charges.
The main ‘cost’ was bad debts representing approximately 50% of sales value whilst profits represented approximately 10%.
The costs of defaults were not borne by the lenders, who operate profitably, but by borrowers through high charges and fees.
Approximately 30% of loans are rolled over, meaning the borrower cannot repay a loan at the end of the stated term. This attracts further finance costs that tend to place the borrower into a cycle of needing to borrow.
The research identified a number of issues leading to market failure, which included Market Competition, Information Asymmetry – adverse selection, financial capability and capacity to repay loans and the nature of borrowers suffering detriment from lending through Payday Lending companies.
This research (Grant 1; Ref. 2) was followed by an investigation into the wider personal credit market by the same research team in 2015 (Grant 2). The focus was on 3 vulnerable groups: self-employed workers, workers with low and variable earnings, and students. For example, payday lenders target university students with irregular income and charge them up to 1,294% interest. The use of smartphone apps, which allow students to receive GBP50-60 at the drop of a hat while on a night out, exacerbates the problem.
It was because of these toxic business operations that Prof. Jarvis’ analysis focused on the business model of payday lending and examined what policy interventions should be taken to create greater financial resilience in the UK (Grant 2). The analysis recognised there is a need to change both the demand and the supply side of the short-term credit market (Ref. 3).
3. References to the research
OUTPUTS:
Ref. 1 Collis, J., Jarvis, R. & Skerratt, L. 2017. ‘The Role and Current Status of IFRS in the Completion of National Accounting Rules – Evidence from the UK’, Accounting in Europe, 14:1-2, 235-247, DOI: 10.1080/17449480.2017.1300673
Ref. 2 Jarvis, R., McAteer, M. & Beddows, S., 2014. ‘Payday Lending: fixing a broken market,’ ACCA Technical Report. https://www.accaglobal.com/in/en/technical-activities/technical-resources-search/2014/may/payday-lending-fixing-a-broken-market.html
Ref. 3 Jarvis. R, McAteer, M & Beddows. S. 2016. ‘Britain’s debt, how much is too much? Policies to encourage savers and support the over-indebted,’ ACCA Technical Report. https://www.accaglobal.com/.../Technical/fin/britains-debt.pdf
Ref. 4 Jarvis.R. 2018. ‘Payday loans are part of a deeper problem that investors must help fix,’ The Conversation. http://theconversation.com/payday-loans-are-part-of-a-deeper-problem-that-investors-must-help-fix-103244
GRANTS:
Grant 1 Jarvis. R, McAteer, M. and Beddows, S. 2014/2015. An investigation of the Payday Lending market, GBP10,000
Sponsor: ACCA
Grant 2 Jarvis. R., McAteer, M. & Beddows, S. 2015/2016. An investigation into UK personal indebtedness with particular reference to Self Employed, the low paid and students, GBP10,000
Sponsor: ACCA
4. Details of the impact
Impact on Regulation
Prof. Jarvis’ research was highly influential in the introduction of the price cap on high-cost short-term credit (HCSTC) in January 2015 (E1; E3). The price cap consists of 3 caps: interest on the loan must not exceed 0.8% per day of the amount loaned; default charges are capped at GBP15.00; a borrower should never repay more than 100% of the amount borrowed.
The FCA has taken up every recommendation made by Prof. Jarvis, after ACCA and the Financial Services Consumer Panel made his research the basis of their contribution to the FCA consultation on the price cap (E1; E2). The Chair of the Panel at the time, states that the changes which subsequently occurred, namely the “regulation of the sector and demise of two high-profile providers…have shown the lasting impact of this ground breaking work” (E2).
Principles for Responsible Investments (PRI) confirm, the “pieces of research have demonstrated their innovative and transformative nature…at a critical time for individuals, households, industry and economies” (E3).
The introduction of the rate cap resulted in greater regulatory scrutiny. A year later the market has experienced approximately a 30% drop in volume and revenue in payday lending loans.
Impact on Consumers
In 2016, Citizens Advice published a report, which confirms that the changes the FCA had made to the regulation of payday lending led to a number of improvements in the market. Citizens Advice “found that the market had gone through significant changes with 38% of payday lenders having left and 45% fewer clients coming to Citizens Advice with a payday loan problem” (E7). Their findings also showed that 10% of consumers (equivalent to 160,000 people a year) who had previously used payday loans were now no longer able to apply for new loans in order to prevent the accumulation of further debt (E7). The report quotes a client who was turned down for a payday loan, “I am glad I didn’t get accepted for payday loans as it forced me to change my behaviour” (E7). Likewise, 22% of the consumers surveyed in the report felt they were better off financially, and 29% indicated that the change in regulation has had a positive impact on their life (E7).
Citizens Advice has also seen a 50% decrease in consumers needing help with unaffordable payday loan debts: down from 16,000 people in 2013-2014 to less than 9,000 in 2017 (E8). The regulation on payday loans has been so successful that Citizens Advice called on the FCA in 2018 to urge them to extend the regulation to the doorstep lending market. Their research shows that it could save up to GBP123,000,000 in interest payments on up to 540,000 loans each year (E8).
Likewise, StepChange Debt Charity has seen fewer clients coming to them with HCSTC debts, down from 23.4% in 2013 to 16.1% in 2016. The average total amount owed on HCSTC by clients has also fallen from GBP1,647 in 2013 to GBP1,308 in 2016 (E9). Furthermore, of the clients surveyed in 2016, 60% had applied for a HCSTC loan since January 2015 and been rejected on at least 1 occasion (E9). This also had a tremendous impact on borrowers being subjected to cycles of debt. In the past, borrowers often turned to other lenders when they missed a payment for a different loan even though they were in a lot of debt already. As 2 former borrowers report, “I should have not been lent the amount as I already had a huge amount of credit to repay other creditors” and “I was in a lot debt anyway and the payday loan tipped me over the edge” (E9). However, the new regulations brought about by Jarvis’ research decreased these perpetual cycles of debt and thus directly benefitted the most financially vulnerable people.
In 2019, the FCA published figures, which revealed that the number of payday lenders has fallen by 25% in 2018 while the number of payday loans has dropped 31.7% year-on-year. The figures show that 861,781 payday loans were taken out between January and March in 2019. This is a 31.7% drop (equivalent to 399,339 loans) in comparison to the first quarter of 2018 during which 1,261,120 loans were taken out. The data also showed a decrease in active payday loan firms which dropped by 24.5% in the first quarter of 2019, down from 94% to 71%. The income-streaming company Wagestream, says, “This sharp collapse in the number of payday loans taken out is fantastic news for UK consumers who, to their credit, are getting wise as to how expensive and toxic this form of borrowing is” (E6).
The payday loan industry in the UK is now only worth GBP220,000,000, down from the GBP2,500,000,000 in 2013. As of July 2018, there are 40-50 payday lenders in the UK, which is around 20% of the 200 lenders in 2013 and 2014 (E10). As of October 2019, payday lender Wonga, one of the biggest companies in the industry, had paid ex-customers GBP400,000,000 in compensation.
The change in regulation and impact on UK consumers has been so successful that other countries have taken notice. In 2018, the Danish Consumer Council (the oldest consumer organisation in Europe) used Prof. Jarvis’ research to inform their decision-making process in the development of initiatives, which will protect consumers from excessive indebtedness in Denmark. The country is home to a substantial payday lending market, and Prof. Jarvis’ research formed the basis for investigating effective regulation to ensure more financially stable consumers and sustainable business practices (E4; E5).
The impact Prof. Jarvis’ research has had on the FCA price cap and payday lending market is a prime example for how strong regulation can significantly improve detrimental markets and bring considerable benefits to the most financially vulnerable people.
5. Sources to corroborate the impact
Letter from Senior Accounts Manager, Portland Communications (previously, Public Affairs Manager at ACCA)
Letter from the Chair of the Financial Conduct Authorities Financial Services Consumer Panel
Letter from the Head of Academic Research at Principles for Responsible Investments (previously, ACCA’s Research and Knowledge Transfer Manager, 2007-2014)
Letter from the President of the Danish Consumer Council
Project Summary from the Danish Consumer Council
Number of payday loans taken out drops by a third, YourMoney.com, 17 July 2019
Payday loans after the cap: Are consumers getting a better deal? Citizens Advice Report, August 2016
Extending payday loan cap could stop thousands getting into spiral of debt, Citizens Advice, 19 March 2018
Payday loans: The next generation of high cost short-term credit. Changes to the high-cost short-term credit market since the introduction of the price cap, StepChange Debt Charity Report, 2016
The payday loans industry is worth £228 million in the UK, paydaybadcredit.co.uk, 18 July 2018
- Submitting institution
- Brunel University London
- Unit of assessment
- 17 - Business and Management Studies
- Summary impact type
- Economic
- Is this case study continued from a case study submitted in 2014?
- No
1. Summary of the impact
Dr Georgiadis’s research has resulted in the increase of minimum wages in Greece – by 10.8% for those aged 25 and above and 27.5% for those under 25 on 1 February 2019 – following the decision by the Ministry of Labour. In 2018, the then Minister of Labour, Social Security, and Social Solidarity appointed Dr Georgiadis as an adviser on minimum wages, as the Government was looking for solutions to address low wages caused by the long-term recession. In Greece, minimum wages only apply to the private sector (which accounts for 44% of the total employment). The decision to increase minimum wages has affected approximately 50% of all employees in the private sector, benefiting 18% directly and 31% indirectly. This is equivalent to 1,000,000 individuals, as well as 300,000 individuals who receive social benefits that rise in line with the minimum wage. This addressed some of the major social problems in Greece, such as wage inequality and poverty by redistributing income particularly to individuals with the lowest earnings in the economy.
2. Underpinning research
Dr Georgiadis’s research was conducted in collaboration with Dr Kaplanis of Athens University of Economics and Business and Dr Monastiriotis, Associate Professor at the London School of Economics (LSE) and was published as a Working Paper in 2018. It was subsequently published in Economic Letters in 2020.
The aim of the research was to produce new and robust evidence on the impact of minimum wages on the distribution of wages and employment. This was necessary, first because of the lack of up-to-date evidence on the impact of minimum wages on the Greek Labour market and second, to inform the recommendations of the experts’ committee on minimum wages to the Minister of Labour, Social Security, and Social Solidarity at the time, regarding the magnitude of the rise in the minimum wage. As suggested by the Minister (E3), the ministry needed “new evidence on the potential impacts of the minimum wage, at a time when existing evidence was scarce, that could provide the ministry with a clear direction on how much the minimum wage should be raised”.
Dr Georgiadis’s research used the most relevant data on wages, including a large sample of employees drawn from administrative social security records that contain information on all wage and salaried employees in Greece, and state-of-the art statistical/econometric methods to produce estimates of the impact of a range of the most recent changes in the minimum wage. In particular, the investigation looked at the impact of the most recent increases in the minimum wage, in 2009 and 2011, when the minimum wage increased by 5.5% and 1.6% respectively. It also examined the impact of the 2012 decreases in minimum wages, when the minimum wage decreased by 22% for those 25 years old or older and by 32% for those younger than 25 years, which effectively introduced, for the first time in the history of Greece, a lower minimum wage for youth employees. The latter decreases were agreed between the Greek Government, the European Union Institutions and the International Monetary Fund (IMF) in order to address the impact of the severe economic recession on the Greek labour market. The research also investigated the impact of increases in the minimum wage on young employees who become 25 years old in the period between 2012 and 2017 and thus eligible for an increase in their minimum wage from the youth to the adult level.
The key findings of Dr Georgiadis’s research were as follows:
Minimum wage increases lead to significant increases in the wages of directly affected employees, i.e., those paid below the new level of the minimum wage, but also of employees paid above this. The latter could be explained by the fact that employers may also increase wages of higher-wage workers in order to maintain wage differences between low- and high-wage employees.
Minimum wages do not have a systematic and significant effect on the employment opportunities of low-wage employees as well as the employment of low-wage, most affected, businesses.
Overall, these findings imply that an increase in the minimum wage is expected to increase the wages of low-wage employees, as well as a share of higher-wage employees, and at the same time it is not expected to lead to a significant reduction in employment.
3. References to the research
Ref 1: Georgiadis A, Kaplanis I, Monastiriotis V. (2018). The Impact of Minimum Wages on Wages and Employment: Evidence from Greece. LSE GreeSE Discussion Paper (Working Paper).
Ref 2: Georgiadis A, Kaplanis I, Monastiriotis V. (2020). Minimum Wages and Firm Employment: Evidence from a Minimum Wage Reduction in Greece, Economics Letters, vol.193, DOI: https://doi.org/10.1016/j.econlet.2020.109255
4. Details of the impact
In 2008, Greece was affected by an economic crisis that produced an unprecedented recession and led to the introduction to a structural adjustment programme agreed by the Greek Government, the European Commission, the European Central Bank, and the IMF in 2010. As part of the programme, the Greek Government enforced a minimum wage reduction across all employees in 2012, which was larger for employees younger than 25 years. These reduced minimum wages remained in force until September 2018 when the structural adjustment programme was completed.
After the completion of the structural adjustment programme, and given that since 2016 the Greek economy has exhibited signs of recovery from the severe recession, as evidenced by positive economic growth and a decrease in unemployment, the Greek Government initiated an institutional procedure to increase minimum wages. In particular, the Government established an Experts Committee, both to investigate the potential impacts of an increase in minimum wages and to recommend an appropriate level for that increase, and appointed Dr Georgiadis as a special advisor to the then Minister of Labour, Social Security, and Social Solidarity (E1).
As indicated by the Minister regarding Dr Georgiadis’s appointment as a special advisor, the “decision to appoint you as a special advisor on Minimum wages…came as a result of your expertise on minimum wages and your extensive research on their effects on employment” (E3). Moreover, the Minister continues to add, “I strongly believed that your expertise would be an important asset that could help the Ministry at a time when we were looking for solutions to address low wages caused by the long-term recession as well as inform and support the Experts Committee” (E3).
Dr Georgiadis presented his research findings to the Experts Committee and to the Council of Economic Advisors of the Greek Ministry of Finance, and his study was also cited in the Experts Committee report. The Expert Committee considered the research findings of Dr Georgiadis and co-authors (Ref 1), on the impact of minimum wages on earnings and employment. These findings, suggesting that an increase in the minimum wage is expected to lead to significant wage increases among low-wage employees and no significant reduction in employment, were critical in influencing the decision of the Experts Committee about the next level of the minimum wage. Based on this evidence, the Experts Committee recommended to the then Minister of Labour, Social Security, and Social Solidarity an increase in the minimum wages between 5 and 10% for all employees.
Following this recommendation, the Minister announced an increase in the minimum wage of 10.8% for those 25 years old or older and of 27.5% for those younger than 25. In monetary terms, this is an increase from EUR586, equivalent to GBP528 (12-2020), to EUR650, equivalent to GBP586 (12-2020), per month. This was an effective abolition of the lower youth minimum wage introduced in 2012.
The Minister of Labour, Social Security, and Social Solidarity at the time corroborates this (E2; E3), stating that Dr Georgiadis’s “findings that past minimum wage changes had limited effects on employment while affected sizeably the level of wages (and thus households incomes) at the bottom of the distribution were highly influential in informing the Experts Committee’s recommendations on the new level of the minimum wage and the government’s decision to raise the minimum wage in February 2019”.
Given that the private sector accounts for approximately 44% of the economy, this has a significant impact: the increase has benefited approximately 15 to 20% of all private sector employees, which is equivalent to 400,000 to 600,000 individuals (E6).
The increase has also benefited indirectly an additional 31% of all private sector employees (equivalent to 600,000 individuals), who are expected to receive wage increases despite the fact that their wages exceed the new minimum wage, as employers seek to maintain wage differentials between low-wage and higher-wage employees.
Moreover, the increase in the minimum wage has benefited between 200,000 and 300,000 individuals who receive social benefits, such as unemployment and maternity benefit as these benefits are increased in line with the minimum wage (E4).
Related to the predictions of the research, the latest data from the Ministry of Labour on employment flows between January 2019, just before the minimum wage increase was enacted, and February 2020 suggest that employment grew by 125,000. Based on data from the Hellenic Statistical authorities, between January and December 2019, unemployment declined from 18.6% to 16.3% (E5). These patterns are in line with the predictions of the research that the minimum wage is not expected to either contribute to an increase in the unemployment rate or slow down the growth rate in employment. This is also confirmed by the former Minister of Labour, Social Security, and Social Solidarity (E3).
Further dissemination activities include a presentation of the findings of the research at the Council of Economic advisers of the Greek Ministry of Finance and at the policy think tank ENA Institute of Alternative Policies. The research was also cited in the 2019 IMF report for Greece (E5) and in the EUROFOUND 2019 report on Minimum Wages (and minimum wage earners) in Europe (E7).
Dr Georgiadis’s research has enabled the Greek Government to address major social problems and, in turn, benefited some of the most disadvantaged people in the county by reducing the risk of poverty for approximately 1,300,000 individuals in the private sector who make up approximately 15% of the Greek population.
5. Sources to corroborate the impact
Letter from the former Minister of Labour, Social Security, and Social Solidarity, announcing Dr Georgiadis’s appointment as expert advisor, 30 October 2018
The former Minister of Labour, Social Security and Solidarity, referring to Dr Georgiadis’s research informing the ministry’s decision in an interview with Naftemporiki (a Greek business paper), 23 January 2019, https://www.naftemporiki.gr/finance/story/1437115/efi-axtsioglou-kourema-eos-85-se-prosauksiseis-xreon-apo-to-2002-mexri-to-2016
Corroborating letter from the former Minister of Labour, Social Security and Solidarity, confirming Dr Georgiadis’s influence on the policy change
To Vima (a Greek daily newspaper), 28 January 2019, https://www.tovima.gr/2019/01/28/politics/katotatos-misthos-poioi-ofelountai/
Hellenic Statistical Authorities Labour Force Survey 2019, 5 March 2020, https://www.statistics.gr/el/statistics/-/publication/SJO02/2019-M12
IMF Country Report No. 19/73 (Greece), March 2019, https://www.imf.org/en/Publications/CR/Issues/2019/03/08/Greece-First-Post-Program-Monitoring-Discussions-Press-Release-Staff-Report-and-Statement-by-46654
Eurofund Report, Industrial Relations, Minimum wages in 2019: Annual review, 2019, https://www.eurofound.europa.eu/sites/default/files/ef_publication/field_ef_document/ef19028en.pdf
- Submitting institution
- Brunel University London
- Unit of assessment
- 17 - Business and Management Studies
- Summary impact type
- Environmental
- Is this case study continued from a case study submitted in 2014?
- No
1. Summary of the impact
Dr Dora’s research has resulted in vast economic, social, ecological, and educational improvements in Rwenzori, Western Uganda, and established a new sustainable partnership between Mountains of the Moon University (MMU) and the farming industry. Following the adoption of his research, the regional dairy sector capacity increased by 75%, and MMU received a full institutional accreditation “Charter” by the Uganda National Council for Higher Education (UNCHE). This has led to a substantial increase in the University’s endowment, which now stands at GBP1,300,000, and acceptance of 400 extra students due to additional bursaries worth GBP250,000 being offered. MMU subsequently expanded and, as a result, the cost of surrounding land increased by 1,000%. This all directly benefitted the economy and livelihoods of people living in the Rwenzori region.
2. Underpinning research
Dr Dora specialises in applying lean farming principles in the food supply chain to make it more efficient and sustainable. He was awarded a project on Strengthening agribusiness value chain through community engagement in Uganda worth EUR2,900,000, equivalent to GBP2,609,420 (11-2020), in 2013 when he was at the University of Ghent, Belgium and continued the research programme when he joined Brunel in 2015. The 10-year long project (2012-2022), funded by the VLIRUOS Institutional University Cooperation, focuses on capacity building and institutional strengthening in areas of relevance to farming communities in Uganda, providing a pilot for future farming solutions.
When Dr Dora joined Brunel in 2015, he conducted further research on the lean farming component of the project to provide effective solutions for a simplified farming process in Uganda. He applied the ‘lean thinking’ approach—originally derived from Toyota’s model to cut waste and later adapted to develop sustainable global food supply chains—to the Ugandan farmers’ economic system. He developed a Lean Tool Box and Readiness Index and then worked collaboratively with farmers, cooperatives, food processors and suppliers to implement a low-cost management system for Ugandan farmers in order to optimise their resource management and productivity.
Dr Dora has contributed to identifying the bottlenecks in the food supply chain management in Uganda (especially the small holders’ farmers) and developed a new collaboration framework and management tools to improve their productivity. His research identified hotspots susceptible to losses and waste along the food supply chain (Primary production, processing, storage, food service and/or consumption) (Ref. 1). Results further revealed discarding and nutrient loss, most especially at the processing level, as the main forms of loss/waste in food, which were adapted to 4 out of 7 lean manufacturing wastes (i.e. defect, unnecessary inventory, overproduction and inappropriate processing). In order to ensure successful application of lean practices aimed at minimizing food or nutrient losses and wastes, multi-stakeholder collaboration along the entire food supply chain is indispensable.
Additionally, his research provided practical solutions for using mobile phones in farming communities beyond just normal communication. Dr Dora conducted a study which looked at the applicability of the technology acceptance model (TAM) to the use of mobile phones in farming communities in Sub-Saharan Africa. Using samples from 300 dairy farmers in Uganda, the research presented in the study contributed to the scholarship on mobile phone adoption in the agricultural sector in Sub-Saharan Africa and promoted the practical benefits the use of mobile phones can have on the agricultural sector. The majority of farmers only use their mobile phones for personal communication but Dora et al. identified that a change in mind-set can have a significant impact on their welfare when they learn how to use their phone to market their produce or exchange information on price. The research results therefore revealed the investment and business opportunities that arise when farmers move beyond familiar processes and instead adopt new socio-economic thinking with technology. In addition, a mobile application “cow analytics” has been developed to help farmers to manage farms and make informed decisions (Ref. 2).
Working closely with 528 farmers, 1 co-operative and 2 food processors in 8 districts of the Rwenzori region (which has a population of approximately 3,000,000), Dr Dora applied lean manufacturing as a waste management approach and the theory of organisational readiness to change to assess value chain actors’ readiness to adopt measures against losses and wastes. His findings indicate that farmers are unfamiliar with the term nutrition sensitive agriculture, yet they actually know or do what the concept entails.
In addition, he found that unmarketable dairy products were often discarded but sometimes donated to charity. Path analysis revealed that change valence and resource availability positively influence change commitment and efficacy, respectively, to adopt lean measures against losses and wastes. Multi-actor approach only had a positive effect on change commitment but not on efficacy. In summary, value chain actors were optimistic about adopting approaches to reduce food and nutrient losses or wastes as part of nutrition sensitive agriculture. Consequently, external players such as governments, academia and humanitarian agencies need to create sustainable partnerships with the food industry to implement such initiatives (Ref. 4).
3. References to the research
Manoj Dora (CI) VLIRUOS Institutional University Cooperation, 2012-2022, Strengthening agribusiness value chain through community engagement in Uganda, EUR2,900,000.
Ref 1: De Steur H, Wesan J, Dora M, Pearce D, Gellynck X. (2016) ‘Applying Value Stream Mapping to reduce food losses and wastes in supply chains: a systematic review ‘Waste Management https://doi.org/10.1016/j.wasman.2016.08.0255
Ref 2: Kabbiri, R., Dora, M., Kumar, V., Elepu, G. and Gellynck, X. (2017) 'Mobile phone adoption in agri-food sector: Are farmers in Sub-Saharan Africa connected?'. Technological Forecasting and Social Change, 131. pp. 253 - 261. ISSN: 0040-1625 (ABS 3*) https://doi.org/10.1016/j.techfore.2017.12.0100
Ref 3: Odongo W, Dora M, Molnar A, Ongeng D, Gellynck X (2017) "Role of power in supply chain performance: evidence from agribusiness SMEs in Uganda", Journal of Agribusiness in Developing and Emerging Economies, Vol. 7 Issue: 3, pp.339-35 https://doi.org/10.1108/JADEE-09-2016-00666
Ref 4: Wesana J, De Steur H, Dora M, Mutenyo E, Muyama L, Gellynck X, (2018) “Towards nutrition sensitive agriculture. Actor readiness to reduce food and nutrient losses or wastes along the dairy value chain in Uganda,” Journal of Cleaner Production (ABS 2*) https://doi.org/10.1016/j.jclepro.2018.02.021
Ref 5: Pearce, D., Dora, M., Wesana, J. and Gellynck, X. (2018) 'Determining factors driving sustainable performance through the application of lean management practices in horticultural primary production'. Journal of Cleaner Production, 203. pp. 400 - 417. ISSN: 0959-6526 (ABS 2*) https://doi.org/10.1016/j.jclepro.2018.08.170
Ref 6: 2019 Dora, M., Wesana, J., Gellynck, X. et al. “Importance of sustainable operations in food loss: evidence from the Belgian food processing industry,” Annals of Operations Research (ABS 3*) https://doi.org/10.1007/s10479-019-03134-0
4. Details of the impact
The Rwenzori region has vast natural resources comprised of fertile volcanic soils, ample and reliable rainfall, huge tourism potential, water bodies and rich forest cover. Despite its potential and progress, Rwenzori region is still below the national average on a number of social economic indicators. Agriculture is the major economic activity with the majority of the population practising subsistence agriculture. It is estimated that approximately 80% of the region’s population entirely depend on agriculture. Smallholder agriculture production is hampered by challenges related to marketing, lack of agricultural financing, slow adoption of agricultural technologies and practices, and an increasing nutritional challenge among children. The primary reason of food insecurity in this region is mismanagement of resources and lack of knowledge on best farming practices.
The Food Supply Management System designed by Dr Dora has benefited not only the farmers in the region who have implemented the system but also its wider community – Rwenzori region – economically by establishing a new sustainable partnership model between an academic institution and an industry.
Increasing Dairy Production and productivity, and improving efficiency
The Food Supply Management System is now successfully integrated with traditional farming in Uganda and has been replicated by farming communities in South Africa and has generated progressive economic, social, and ecological results across communities. Further, the project established and mobilised a dairy stakeholder Platform in 8 districts of the Rwenzori region bringing together 528 famers for an integrated dairy supply chain between 2013 and 2018. As a result, the programme has (E1):
Increased milk production and productivity from 10l of milk per day per cow to 22l [120% increase];
Enhanced the dairy market access through the creation of 10 milk collection centres and the installation 10 milk coolers;
Increased the value of the milk by 72% through processing and marketing milk products such as cheeses, bottled milk, yogurt, ice cream and butter;
Increased the regional dairy sector capacity by 75% by mobilizing 528 dairy farmers [both small, medium and large scale];
Created 6 dairy farmers platforms in the region. Platforms are formed in 6 different areas of Rwenzori region to cater the local needs of the farmers. Each platform includes 70 to 80 farmers.
This immediate and direct improvement has led to expanding the scope of Dr Dora’s research to benefit a wider society in the Rwenzori region.
Building a Sustainable Partnership between a University and an Industrial Sector
Dr Dora’s research has directly benefited MMU and its community by providing a sustainable partnership model for a community-owned University to strategically build and use its academic capacity to tackle community issues. MMU, established in 2004, is solely run by the tribal communities, and serves a regional population of approximately 3,700,000 people which expands at a rate of 4.8% per annum (E2).
The project responds to the needs of the community and is designed to enable MMU, local farmers and residents to solve the problems of the community. For instance, despite the abundance of natural resources and good weather condition, the agricultural productivity of the region is low compared to other parts of the country. Specifically, farmers in dairy sector have low productivity which results in low income and quality of life.
On average, a cow in the region produces approximately 4.4l of milk per day (1606l per annum). The major factors that are responsible for this low milk production include poor breeds of dairy cows, pests and diseases, poor nutrition and poor management. High cost of inputs, inadequate financial services and low uptake of improved production technologies also contribute to the low milk production in the district. The main concerns of farmers are lack of training on standard dairy farming practices, quality, food safety, transport, and market access. To address these challenges, a modern test farm which facilitates research and development on a variety of subjects such as animal feed, breeding, health, farm management, milking and cooling has been set up. The community-based skills training and research on integrated dairy chain and Management Systems includes:
Farming practices using lean principles
Pasture management
Supplementary feeding
Feeds rationing and formulation
Milk handling practices
Long-term sustainability, building infrastructure through knowledge transfer
Training programmes were designed as interventions for the farmers
Better feeding
Better knowledge of the market
Better knowledge to increase milk production
Dr Dora’s distinct involvement in the project drew from his research expertise in supply chain analysis and improved the quality of training for dairy farming in the agricultural sector of the Rwenzori region in Uganda. Each year, 3 training programmes have been organised on the above topics. As a result of Dr Dora’s research contribution, MMU has been able to train over 500 farmers. The training resulted in 40 to 50% increase in milk production for most of the farmers.
In addition, to drive knowledge exchange between MMU and the farming sector, each UG student is assigned a farmer. Farmers share real-life problems and students research for solutions, benefiting each other. This is a unique and the only model in the world where each student assigned to a farmer to facilitate knowledge exchange.
This capacity building project has helped MMU to get a full institutional accreditation “Charter” by the Uganda National Council for Higher Education (UNCHE). Having achieved the charter status in 2018, MMU is one of the few chartered universities that are eligible for Government funding schemes. As a result, MMU saw a substantial increase in public funding and now receives approximately GBP1,3000,000 which creates a range of opportunities the University could not access previously. MMU is now able to offer 871 student bursaries and 63 government loan schemes worth more than GBP250,000. This has allowed MMU to start accepting students who previously have been unable to attend University due to financial constraints. MMU has since been able to accept 520 more students and saw an increase of over 400 students in 2019, the year after the Charter. The extra funding also allowed MMU to improve its infrastructure which contributed to an additional increase in student numbers (E2).
Contributing to the regional and national economy
In Uganda, over 80% of the population is involved in small scale agriculture conducting mainly subsistence mixed crop and livestock farming on small land holdings (approximately 3 hectares of land on average). Agriculture contributes 31% to the GDP and the dairy sector is the second to cereal products contributing over 50% to the GDP of the total output from the livestock subsector. Small-scale farmers dominate Uganda’s dairy production, owning over 90% of the cattle population in the country. Out of the 96% of the poorer citizens who live in rural areas, approximately 60% keep indigenous cattle.
MMU’s significant expansion opportunities have contributed to the development of the local economy. In 2017, the University started to expand and moved their offices from Fort Portal to the town of Saka, acquiring 200 acres of land in the process to establish a Dairy Technology and Innovation Centre. Because of the expansion, Saka has seen a rapid increase in investors establishing hotels, student hostels, restaurants and accommodation to meet the growing needs. The new student accommodation block can house over 1,000 students. Moreover, since 2017, there are 10 additional hostels in Saka and the cost of land has increased by 1,000% because of the presence of MMU: a 15x30m plot of land, which was worth approximately GBP630 in 2005 now stands at approximately GBP6,300 (E2).