Volume 17 Number 1 April 2015

INSTITUTE OF BUSINESS MANAGEMENT

ENTREPRENEURSHIP & MANAGEMENT EXCELLENCE CENTREKORANGI CREEK, KARACHI-75190, PAKISTAN

UAN (9221) 111-002-004, FAX: (9221) 3509-0968, 3509-2658E-mail: sabina@iobm.edu.pk, chiefeditorpbr@iobm.edu.pk, http://www.iobm.edu.pk

PBRISSN 1561-8706

PAKISTAN BUSINESS REVIEWIndexed and Abstracted by ECONLIT, Journal of Economic Literature

Indexed by EBSCO, USAHEC Approved Y Category Journal

ResearchRisk Management: A Tool for Enhancing Organizational Performance(A Comparative Study between Conventional and Islamic Banks)Zahid Ali Channar, Piribhat Abbasi and Manisha Bai MaheshwariA Comparative Analysis of Economic Efficiency of Conventional and IslamicInsurance Industry in PakistanPervez Zamurrad Janjua and Muhammad AkmalOperating Performance and Financial Success: Evidence from Pakistani CompaniesJaved IqbalImpact of Mergers on Performance of Banking Sector of PakistanAysha Haider, Muhammad Shoaib and Sara KanwalCan Momentum Portfolios Earn More in the Karachi Stock Exchange?Syed Hamid Ali Shah and Attaullah ShahAirline Service Quality in Pakistan A Customer Preferences ApproachSyed Sartaj QasimEstimation of Consumption Functions: The Case of Bangladesh, India, Nepal,Pakistan and Sri LankaKhalid Khan, Sabeen Anwar, Manzoor Ahmed and Muhammad Abdul KamalGaps in Marketing Competencies between EmployersRequirements and GraduatesMarketing SkillsKausar SaeedIntegrated Use of Rational and Intuitive Decision Making Style: Modern Trends inOrganizational Decision MakingNaila Batool1, M. Naveed Riaz and M. Akram RiazEffectiveness of TNA Based Training in Karachis Pharmaceutical IndustryShiraz AhmedPerformance Related Pay of University Employees: A Comparison of Publicand Private Sector Universities of PakistanBushra Nawaz and Amina MuazzamDiscussionLeadership: what it is, what it is notSamer Iqbal

mailto:chiefeditorpbr@iobm.edu.pk,http://www.iobm.edu.pk

Volume 17 Number 1 April 2015

PAKISTAN BUSINESS REVIEW APRIL 2015

Prof. Izlin Ismail, Faculty of Business andAccountancy, University of Malaya,Kuala Lumpur.Dr. Teoman Duman, International BurchUniversity Bosnia and Herzegovina.Prof. Angelo Santagostino, University ofBrescia, Italy.Mr. Thomsas Winter, University ofRostock, Rostock, Germany.Dr. Geoff Kay, City University, London.Dr. D.M.Semasinghe, University ofKelaniya, Sri Lanka.Dr. Ziasma, University of Karachi,KarachiProf. Asim Jamal Siddiqui, University ofKarachi, Karachi

Editorial Board

Chief Editor: Prof. Dr. Shahida WizaratManaging Editor: Sabina Mohsin

ProfessorArshadSyedKarim,Ph.D.Dean of Social Sciences and HumanitiesGreenwich University KarachiProf Anoma Abhayaratne, Department ofEconomics and Statistics, University ofPeradeniya, Sri Lanka.Dr. Domingos Santos, Sub-Director,Institute of Politecnico de CasteloBranco, PortugalDr. Javier Poncela Gonzalez, DepartmentETSI Telecomunication, University ofMalaga, Spain.Ms. Alessia Lefebure, Director AllianceProgram, Columbia University, New York

Professor Pranas Zukauskas, Dr. Habil,Dean, Faculty of Economics andManagement, Vytautas Magnus University,Lithuania.Prof Dr. Fasihul Alam, Department ofManagement Studies, University ofChittagong, Bangladesh.Prof. Subas K.C., Dean, KathmanduUniversity, School of Management, NepalMr. Peter N. Stearns, Provost and ExecutiveVice President, George Mason University,Virginia.Ms.DengXinghua,Director,Universityof Science and Technology, China.Prof. Dr. Dietrich Steude, FachhochschuleErfurt University of Applied Sciences,Berlin, Germany.Mr. Jurgen Gau, Dipl.-Ing., Dipl.-Wirtsch.-Ing., Donarweg, Munich, Germany.Mr. Horst Stenzel, Concepts ConsultingProduction, Stenzelfilm, Selma-Lagerlof-STR., Munich, Germany.Mr. Hartmut Wellerdt, MarketingConsultant, Bremin University, Germany.Dr. Silvia Scaramuzzi, Head of InternationalRelations Department of Economics andManagement, University of Florence (Italy).

Volume 17 Number 1April 2015

PAKISTAN BUSINESS REVIEW APRIL 2015

Prof. Dr. Mudassir-ud-din, University of Karachi, KarachiMs. Yasmin Zafar, Institute of Business Administration (IBA), KarachiDr. Uzma Parveen, University of Karachi, KarachiDr. Mohsin H. Ahmed, Applied Economics Research Centre, University of Karachi,KarachiProf. Ghulam Hussain, University of Karachi, KarachiMr. Mahboob-ul-Hassan, University of Karachi, KarachiDr. Muhammad Mahmood, Khadim Ali Shah Bukhari Institute of Technology, KarachiDr. Nargis Asad, Aga Khan University Hospital, KarachiDr. Abuzar Wajidi, University of Karachi, KarachiMs. Rubina Feroz, University of Karachi, KarachiProf. Dr. Talat A. Wizarat, Institute of Business Administration (IBA), KarachiDr. Muhammad Zaki, University of Karachi, KarachiMr. H. Jaleel Zubairi, Allied Bank Ltd. , KarachiDr. Zaira Wahab, Iqra University, KarachiDr. Ismail Saad, Iqra University, KarachiMr. Naim Farooqui, Sindh Bank Ltd, Karachi Contd.Dr. Sara Azhar, University of Karachi, KarachiProf. Ahmad Farooq Shah, Bahauddin Zakarya University, MultanMr. M. Mazhar Khan, State Bank of Pakistan, KarachiMr. Mohammad Soliman, University of Sciences and Technology Chittagong,BangladeshProf. Abdul Mannan, School of Business, University of Liberal Arts BangladeshDr. Fatima Imam, Federal Urdu University, KarachiProf. G.R. Pasha, Bahauddin Zakariya University, MultanMr. Shameel Ahmad Zubairi, University of Karachi, KarachiMr. Imran Naveed, State Bank of Pakistan, Karachi

RefereesProf. Dr Mehtab Karim, School of Public Policy, George Mason University, USADr. Peter O Brien, SADCC, South AfricaDr. Ishrat Husain, Institute of Business Administration, KarachiProf. Sarfaraz Qureshi, IslamabadDr. T.M. Roepstorff, UNIDO, ViennaDr. Shahid Hasan Siddiqui, Research Institute for Islamic Banking and FinanceDr. K.M. Larik, Iqra University, KarachiDr. Javed Iqbal, University of Karachi, KarachiProfessor Dr. Rashid A. Naeem, Chairman, Department of Economics and ManagementSciences, Allama Iqbal Open University, IslamabadDr. Rizwana Zahid, Government APWA College for Women, KarachiDr. Arshi Ali, Federal Urdu University, KarachiDr. Abdul Wahab Suri, University of Karachi, KarachiProf. Dr. Abdul Waheed, University of Karachi, KarachiDr. Naveed, Institute of Business Administration (IBA), KarachiDr. Moazzam Khan Sherwani, Institute of Environment Studies, University of KarachiDr. Samiuzzaman, Global Environmental Lab (Pvt) Ltd. Korangi, KarachiDr. Anila Ambar Malik, University of Karachi, KarachiDr. Seema Munaf, University of Karachi, KarachiDr. Nabeel A. Zubairi, University of Karachi, KarachiDr. Zainab F. Zadeh, Bahria University, Karachi

Volume 17 Number 1 April 2015

PAKISTAN BUSINESS REVIEW APRIL 2015

Referees

Production Unit

Literary Editor:

Muhammad Asif Khan

Production Associate and Editorial Co-ordinator:

Shahzad Ali

Mr. Qaisar Mufti, Qaisar Mufti Associates, Shahra-e-Iraq Saddar, Karachi.Ms. Afra Sajjad, ACCA Pakistan, LahoreDr. Khan Brohi, Institute of Environmental Engineering and Management, JamshoroMr. Amir Hussain, WTO Cell, Trade Development Authority of Pakistan, KarachiDr. Tanveer Anjum, Department of Business Communications, Iqra UniversityDr. Arifa Farid, Department of Philosophy, University of KarachiMr. Muhammad Asim, Department of Business Administration, KarachiMr. Muhammad Zubair, Department of Islamic History, University of Karachi,KarachiDr. Aliya Zahid, Anatomy Department, Allama Iqbal Medical College, Lahore.Dr. Qurrat-ul-ain, Sir Ganga Ram Hospital, Lahore.Dr. Atif Mahmood, Shaheed Mohtarma Benazir Bhutto Medical College,Dr. Muhammad Adnan Kanpurwala, Dept. of Physiology, Dow University Karachi.Dr. Uzma Ali, Institute of Clinical Psychology, KarachiDr. Ali Rizvi, Universiti Brunei Darussalam, BruneiDr. Pervez Wasim, Applied Economics Research Centre, KarachiDr. Muhammad Usman Awan, Institute of Quality & Technology Managment,LahoreDr. Amber Gul Rashid, IBA, KarachiDr.Javed Nayyar, Institute of Administrative Sciences (IAS),University of the Punjab,Lahore, Pakistan.Dr. Salman Razavi, Hailey College, Punjab UniversityMr. Obaid ur Rehman, Securities and Exchange Commission of PakistanDr. Anjum Aqeel, Applied Economics Research Centre, University of Karachi,Karachi, PakistanDr. Muhammad Saleem, Banking Service Corporation, State Bank of Pakistan,Karachi PakistanDr. Samina Khalil, Applied Economics Research Centre, University of Karachi,Karachi, PakistanDr. Faizan Iftikhar, Applied Economics Research Centre, University of Karachi,Karachi, PakistanDr. Shazia Ghani, Deputy Director, Banking Policy and Regulations Deppt,State Bank of PakistanMr.Syed Khurram Zaidi, Bank Islami PakistanMr.Fahd Younus, Chief Internal Auditor, Khaadi, PakistanDr. Afshan Huma, Dept of Educational Planning Policy Studies and LeadershipAllama Iqbal Open University, Islamabad, PakistanDr. Munira Amirali, Senior Manager Academics, Agha Khan Education Services,Karachi, PakistanMr. M. Nasir Khan, Deputy Director (Insurance), Securities & ExchangeCommission of Pakistan

Volume 17 Number 1 April 2015

PAKISTAN BUSINESS REVIEW APRIL 2015

ContentsResearch Page No

Risk Management: A Tool for Enhancing Organizational Performance(A Comparative Study between Conventional and Islamic Banks)Zahid Ali Channar, Piribhat Abbasi and Manisha Bai Maheshwari 1A Comparative Analysis of Economic Efficiency of Conventional and IslamicInsurance Industry in PakistanPervez Zamurrad Janjua and Muhammad Akmal 21Operating Performance and Financial Success: Evidence from PakistaniCompaniesJaved Iqbal 45Impact of Mergers on Performance of Banking Sector of PakistanAysha Haider, Muhammad Shoaib and Sara Kanwal