Sci.Int.

(Lahore),27(1),489-495,2015 ISSN 1013-5316; CODEN: SINTE 8 1

FACTORS AFFECTING SELECTION OF SPECIALIZATION

BY BUSINESS GRADUATES
Aamir Sarwar*, Rizwana Masood
Institute of Business and Information Technology, University of the Punjab, Lahore, Pakistan
*Corresponding Author contact: [email protected], Telephone: +92-42-99230825-6 (Ext: 104)
ABSTRACT: The goal of this study is to provide insight for the phenomena of specialization selection and suggest ways and
means for those involved for the improvement of related policies and practices. This cross-sectional study was conducted by
collecting data from 300 undergraduate business students from 10 different business schools of Lahore (including private,
semi-government and government universities). Exploratory Factor Analysis identified six factors contributing 47% of the
decision making by students while selecting their specialization. These factors include academic factors, social capital factors,
future prospect factors, human capital factors, market demand factors and finally job prospect factors. The result of the
analysis revealed career development and personal abilities of the business graduates as the most influential factors in
selection of specialization while competition in the field and parents as the least influential factors. This study also found an
association between specialization selected by the students and their demographic characteristics.

Key Words: Specialization, Academics, Social Capital, Human Capital, Future Prospects, Market Demand, Job Prospects,
Business Graduate

INTRODUCTION influences but they mainly represent the personal attitude,

Selection of a particular specialization area is not only image, interest, aptitude and influence of the others [5], [6]
important in one’s academic life but also in the future According to Enhanced Cognitive Engagement theory,
personal life because it has an influence on the academics students when allowed to choose their subjects and
continuity, student’s satisfaction, career and employment specialization area freely creates motivation and a sense of
opportunities, financial compensation and finally the social independence in the students which in turn surges their
status. Beggs, Bantham [1] defined a “good” selection of cognitive and reasoning abilities, aptitude and performance
business specialization as “the major best capable of helping [7] e. Under this theory there are different considerations
the student to achieve their educational and post-education related to the selection of specialization. These include:
goals, and the one which provides a match between the Academic Consideration
students' abilities and interest”. But this selection of the major The factors that come under academic consideration are the
could be a stressful and pressurizing job because students course content quality, workload, difficulty level of the
don’t make this decision in vacuum; there are numerous subject, knowledge gained and the experience and
factors that are influencing this decision. Making informed competency of the instructor. And an ideal situation would be
choices regarding business specialization helps students in when all these needs of students are fulfilled. Obviously ideal
their future. These abreast of the fact decisions increase situation is not possible so the student will choose the
students’ satisfaction, influence their career opportunities and specialization which fulfills his/her need to the maximum [8].
also improve their academic results [2]. The counseling and advising services provided by the
LITERATURE REVIEW university is considered as the least important factor when
Specialization selection is a very complex task as it takes into students are making decisions about their specialization but
account multiple considerations. These considerations or different resources deployed by the teachers and
determinants that relates to student’s choice of specialization professionals to help students select and understand their
are somewhat overlapping. Students are affected by their specialization is important and critical [1] & [9].
personal goals, their aptitude level and most importantly their Personal Consideration
interest [3]. On the other hand, the academic part is also very The effect of factors related to personal conditions has
important which includes the quality of course content, normally larger impact on the student’s decision making
difficulty level of the subject and the workload. Some other process regarding his/her selection of specialization. Each
dimensions are related to future which may include career student thinks of each specialization field differently and
development and employment opportunities. But in the end, makes decision about it on the basis of his/her personal
students do not take the decision regarding choice of their beliefs. Personal considerations include a student’s needs and
specialization selection alone; they are normally affected by interest, his/her mental ability level, his goals and motivations
the advice of their parents, friends and teachers [4]. etc. [8]. The development theories like Maslow’s theory of
Based on the theory of reasoned action, a research by hierarchical needs and Bandura’s social cognitive theory
Downey divided the influential factors into two broad could be used to understand how students make decisions
categories that might be overlapping and these categories are regarding their academics and course selection.
external and internal influences. External influences include Social Consideration
the influences that are directly related to the specialization Family, peers and other salient individuals play an important
and career development. These include employment role in the choice of specialization of a student. Elder siblings
opportunities, job availability, job security, prestige of the in a particular specialization may act as a role model and
degree and the institution, work load and finally the mentor for their younger siblings and may impress them to go
influences of other that is of friends, family and teachers. for that specialization or major [4]. Similarly, families
While internal factors are the beliefs, personality and the especially parents normally encourage or even force their
image of a person, although they are affected by the external children to pursue a specific degree. Friends are also an
2 ISSN 1013-5316; CODEN: SINTE 8 Sci.Int.(Lahore),27(1),489-495,2015
important influential factor; students are attracted towards factors influenced him/her regarding this decision. This study
those fields in which their friends had specialized. In some can be considered as descriptive and co-relational research
cases, students did not decide to take in a particular because we are interested in identifying important factors and
specialization until his/her friend informed him that he is variables associated with the problem. Considering the time
going to take that specialization. Finally, the charismatic, dimension, it was a cross sectional study as the survey was
caring and impressive faculty; both in the initial years of not supposed to be repeated at any other time.
university and at the college level affect the students’ choice A target population for data collection was business graduates
of area of specialization [10]. of different private, semi-government and government
Future Prospect Consideration universities of Lahore, Pakistan. It included students from
different business specialization. In this study, 10 universities
The market demand, job availability& future prospect
including government, semi-government and private
considerations include many factors including career university students was taken as a sample through non-
development, employment opportunities, compensation, job
probability convenience sampling technique. Data from 300
options, job security and occupational prestige. According to
students was gathered.
Al-Rfou [11], the most important factors among all Questionnaire was used as a tool for observation. A five (5)
considerations are the job opportunities, job security and
point Likert Scale has been used for this research with the
earning potential of the job.
weighed Mean of 3. The first portion of the questionnaire was
All the above mentioned factors are as important and for collecting personal information about the business
influential as the others. For the administration of the
students. The second portion of the questionnaire is for
university, all these considerations are very important. But
measuring the variable.
they need to explore the priorities of the students and then DATA ANALYSIS & RESULTS
work on it. Using this information, the university would be
Reliability Analysis
able to meet the needs of the students which will in turn
Cronbach alpha reliability analysis was performed to check
increase the enrollment which is the ultimate goal of any the internal consistency of the scale items as shown in table 1.
institution. Another advantage of this information is that
The value 0.845 of Cronbach's Alpha indicates a high level of
when the needs of the students are fulfilled, this increases
internal consistency for our scale with this specific sample.
student’s satisfaction which in turn increases their Table 1: Cronbach’s Alpha Results
engagement and comprehension of the subject which is an
Cronbach's Alpha No of Items
ultimate goal of any teacher [7].
.845 31
If this information is properly used, it can result in effective
lectures and students’ satisfaction. Through these studies, Descriptive Statistics
university administration can get knowledge about the needs Table 2 contains the details of data which was gathered from
and wants of the students and their parents and then design 300 students. The analysis of demographics data represents
the course and class execution accordingly. This would the analysis of different characteristics of the participants of
increase the retention, satisfaction and enjoyment of the the study.
students in class. This will also help them gain more The total sample size was 300 from which 141 respondents
knowledge in a good mood and atmosphere, and this will (47%) were male and 159 (53%) respondents were female.
urge them to recommend that course to the other students Similarly, 10 institutions were selected and from each
which will increase enrollment which in turn will be better university, data from 30 (10%) respondents was collected. 69
for the university administration [12]. respondents (23%) were from the rural background while 231
Studies revealed that the academic advisors are the under- (77%) respondents were from urban background. 24
utilized and under-considered resource that have the least or respondents (8%) had CGPA between 2.00-2.50, 94 of them
negligible amount of influence on the student’s specialization (31%) had CGPA between 2.51-3.00, while 103 students had
choice. There is a need to build a meaningful student-advisor their CGPA between 3.01-3.50 and 79 (26%) respondents’
relationship so that the advisors reinforce the self-concept in CGPA was between 3.51-4.00. 109 respondent (36%)
the students and hence boost their confidence in making the belonged from the Finance discipline, 117 respondents (39%)
choice of their specialization [13] were from Marketing group, 36 students (12%) were from
Management specialization, 26 students (9%) were from HR
OBJECTIVES while only 12 respondents (4%) were from IT specialization.
 To explore how various dimensions affect business Finally, 53 respondents (18%) had an income less than fifty
graduates’ choice of specialization thousand rupee, 95 respondents (32%) had an income ranging
 To help universities and parents to provide better between 50,001 to 100,000, 89 respondents (30%) had an
counseling to students and make their institution more income between a range of 100,001-300,000, 46 respondents
competitive (15%) had income ranging between 300,000-500,000 while
 To identify the effect of gender and academic result of 17 respondents (6%) had the income level above 500,000.
Table 2: Demographic Profile of Respondents
students and their parents’ education, profession and
other factors on students’ choice of specialization. Frequency
 Demographics Categories
(%)
RESEARCH METHODOLOGY Male 141 (47)
The purpose of the study is to investigate different factors Gender
Female 159 (53)
that influence the selection of area of specialization made by COMSATS 30 (10)
business students with the aim to ascertain and explore that Institution
FAST 30 (10)
why a student choose a particular specialization and which
Sci.Int.(Lahore),27(1),489-495,2015 ISSN 1013-5316; CODEN: SINTE 8 3
Frequency Factor Analysis
Demographics Categories
(%) In order to find the specific factors which are the main reason
FCCU 30 (10) behind most of the variation in the variable; factor analysis
IBA-PU 30 (10) was performed.
LCWU 30 (10) Table 3 shows the Kaiser-Meyer-Olin and Bartlett’s test
LSE 30 (10) statistics. KMO measures the adequacy of sampling and it
UCP 30 (10) was found to be equal to 0.811 which should be greater than
UET 30 (10) 0.50 to indicate the goodness of sample. Bartlett's test of
UMT 30 (10) Sphericity needs to have a sigma value less than 0.05 in order
UOL 30 (10) to be significant. In this case it is 0.00 which supports the
F.A 21 (7)
validity of the data.
Table 3: KMO & Bartlett’s Test
F.Sc 106 (35.3)
Intermediate
I.Com 97 (32.3) Bartlett's Test of Sphericity 0.000
Subjects
ICS 46 (15.3)
Kaiser-Meyer-Olkin Measure of Sampling
A-Levels 30 (10) 0.811
Adequacy
2.00-2.50 24 (8)
The six factors selected are responsible for more than 47% of
Cumulative 2.51-3.00 94 (31.3)
the total variation and have been given the most importance
GPA 3.01-3.50 103 (34.3)
by the students for the selection of their specialization. The
3.50-4.00 79 (26.3)
higher the absolute value of the loading, the more the factor
Finance 109 (36.3) contributes to the variable. The gap on the table represent
Marketing 117 (39) loadings that are less than 0.4, this makes reading the table
Specialization Management 36 (12) easier. The idea of rotation is to reduce the number factors on
HR 26 (8.7) which the variables under investigation have high loadings.
IT 12 (4) Rotation does not actually change anything but makes the
Family Rural 69 (23) interpretation of the analysis easier.
Background Urban 231 (77) Factor Loading and Total Variance Explained:
Illiterate 6 (2)
Factor Analysis provided information on the influential
Under Matric 26 (8.7)
factors affecting selection of specialization area by business
Father's Intermediate 59 (19.7)
graduates.
Education Graduation 90 (30) 1. Component One: Academic Factors
Post-Graduation 101 (33.7)
The first dimension deals with the academic considerations
Ph.D. or Above 18 (6)
such as course content, instructors, effect of introductory
Illiterate 13 (4.3) courses and workload. This factor contributes 8.845 %
Under Matric 60 (20) variation.
Mother's Intermediate 63 (21)
2. Component Two: Social Capital Factors
Education Graduation 108 (36)
The second component deals with the influential sources a
Post-Graduation 48 (16)
student may listen to including their family and peers. This
Ph.D or Above 8(2.7) factor contributes 8.506 % % variation.
Businessman/Self
136 (45.3) 3. Component Three: Future Prospect Factors
employed
Government
The third and important dimension is the future prospect
Father's
employee
55 (18.3) which covers career development and structuring, scope of
Occupation the field in future and the research work in the pipeline. This
Private employee 77 (25.7)
factor contributes 8.222 % variation.
Professional 15 (5)
Other 17 (5.7) 4. Component Four: Human Capital Factors
Businesswoman/Self Fourth, factor deals with human capital that takes into
9 (3) consideration their own personal interests, preferences,
employed
Government capabilities, aptitude and affordability. This factor contributes
Mother's 34 (11.3) 8.076 % variation.
employee
Occupation 5. Component Five: Market Demand Factors
Private employee 22 (7.3)
Housewife 234 (78) Market demand is the fifth component which includes
Other 1 (0.3) reputation, competition and appropriateness of the field in the
Below 50,000 53 (17.7) modern days. This factor contributes 7.633 % variation.
50,001-100,000 95 (31.7)
Income 100,001-300,000 89 (29.7) 6. Component Six: Job Prospect Factors
300,001-500,000 46 (15.3) A factor of employment opportunities and financial
Above 500,000 17 (5.7) compensation comes under the final dimension of job
prospect. This factor contributes 5.612 % variation.
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Table 4: Rotated Component (Factor) Matrix
Components

Academic

Prospect

Prospect
Demand
Human

Market
Capital

Capital
Future
Social
Factor Analysis

Job
I am well aware of the challenges and difficulty level of my specialization 0.456
I found the introductory course of my specialization very easy and
0.514
interesting
I found the introductory course according to my aptitude and skills 0.486
I found the projects I did in my introductory course very interesting and
0.540
challenging as well
I found the introductory course instructor very encouraging and helping
0.511
and gave me confidence that I can excel in this field.
The course content of this specialization is very authentic and is prepared
0.555
by a qualified team of professionals
This specialization is considered as one of the best field in this university
0.476
because of its experienced faculty
I think new technology and new research in the pipeline will make work
0.500
in this field more Interesting
One of my sibling/friend/relative is doing job in this field 0.558
I had strong encouragement by my parents to choose this subject 0.762
One or both of my parents are in this field 0.656
My parents think this field is most suitable in modern days 0.788
My previous college/university subject matches my specialization subjects 0.447
I think my extra knowledge about this subject
0.514
will help me in research work later on
I think I have great career development opportunities in this field 0.703
If I want to go abroad for further studies, I think this field would be the
0.713
most suitable with respect to my career
Although this field is not acknowledged nowadays but I think it has more
0.559
scope in future
My parents can easily afford my study in this discipline 0.557
I think this field polishes my attitude and behavior more than any other
0.672
discipline because of my interest in the field
I think I can improve my skills through studying the courses related to my
0.560
specialization
This field has made me more critical in thinking 0.521
The merit of this specialization is very high, that’s why I consider it as
0.454
highly reputed
My teacher asked me to specialize in this field as it is the most appropriate
0.679
one these days
I selected this specialty because I think there is lesser competition in this
0.530
field as compared to other fields
I believe I will get a job in this field as soon as I complete my degree
0.553
because number of job in this field are more
I expect good income and pay increment with time in this specialization 0.672
My dream job matches the job of this field 0.516
This specialization option was the best among the other options available
0.500
to me
I think professionals in this field help make my country develop 0.703
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 9 iterations.
Sci.Int.(Lahore),27(1),489-495,2015 ISSN 1013-5316; CODEN: SINTE 8 5
Exploratory Factor Analysis results can be further
substantiated using Confirmatory Factor Analysis as
Confirmatory Factor Analysis (Structure Equation shown in Table 5 and Figure. 1.
Modeling) Given below are the values for the goodness of fit of the
model.

Table 5: Goodness of Fit (Confirmatory Factor Analysis)

NFI IFI TLI RMSE
Model GFI CFI RMR CMIN/DF
Delta1 Delta2 rho2 A
Default Model 0.906 0.890 0.896 0.873 0.893 0.077 0.046 1.642

Figure: 1: (Confirmatory Factor Analysis Using AMOS)

a. Hypotheses Testing Hypothesis 3: As p-value is greater than 0.05, hence

Table 6 shows the results of T-test & ANOVA that providing a strong evidence to accept HO3 portraying that
were applied to test a number of hypotheses between student’s intermediate subjects has no relationship with all
different elements of profile of respondents and factors in selection of specialization.
collective impact of different factors on selection of Hypothesis 4: As p-value is lesser than 0.05, hence
specialization. providing a strong evidence to reject HO4 portraying that
Hypothesis 1: As p>0.05, so it is statistically student’s CGPA has a relationship with all factors in
insignificant. Thus HO1 is accepted which means selection of specialization.
collective impact of factors is same on specialization Hypothesis 5: As p-value is greater than 0.05, hence
selection among males and females. providing a strong evidence to accept HO5 portraying that
Hypothesis 2: As p-value is lesser than 0.05, hence student’s chosen specialization has no relationship with all
providing a strong evidence to reject HO2 portraying that factors in selection of specialization.
student’s institution has a relationship with all factors in Hypothesis 6: As p>0.05, so it is statistically
selection of specialization. insignificant. Thus HO6 is accepted which means that
6 ISSN 1013-5316; CODEN: SINTE 8 Sci.Int.(Lahore),27(1),489-495,2015
collective impact of all factors have the same impact in father’s education has no relationship with all factors in
specialization selection among rural and urban students. selection of specialization
Hypothesis 7: As p-value is greater than 0.05, hence
providing a strong evidence to accept HO7 portraying that
.

.Table 6: Summary of the Results of ANOVA & T-Test

Dependent Grouping Test
Hypothesis P* Result
Variable Variable Applied
HO1 All factors collectively have the same impact
Failed to
on specialization selection between males Gender t-test 0.658*
Reject
and females
HO2 There is no relationship between institution
and all factors in the selection of Institutions ANOVA 0.038* Rejected
specialization
HO3 There is no relationship between intermediate
All Factors having Impact on Selection of Specialization

Intermediate Failed to
subjects and all factors in the selection of ANOVA 0.893*
Subjects Reject
specialization.
HO4 There is no relationship between CGPA and
CGPA ANOVA 0.049* Rejected
all factors in the selection of specialization
HO5 There is no relationship between selected
Failed to
specialization and all factors in the selection Specialization ANOVA 0.897*
Reject
of specialization
HO6 All factors collectively have the same impact
Family Failed to
on specialization selection among rural and t-test 0.146*
Background Reject
urban students.
HO7 There is no relationship between father’s
Father’s Failed to
education and all factors in the selection of ANOVA 0.226*
Education Reject
specialization.
HO8 There is no relationship between mother’s
Mother’s Failed to
education and all factors in the selection of ANOVA 0.299*
Education Reject
specialization
HO9 There is no relationship between father’s
Father’s Failed to
education and all factors in the selection of ANOVA 0.302*
Occupation Reject
specialization.
HO10: There is no relationship between mother’s
Mother’s Failed to
occupation and all factors in the selection of ANOVA 0.254*
Occupation Reject
specialization.
HO11 There is no relationship between family
Family Failed to
income and all factors in the selection of ANOVA 0.420*
Income Reject
specialization.
*Significance Level is 0.05
Hypothesis 8: As p-value is greater than 0.05, hence CONCLUSION
providing a strong evidence to accept HO8 portraying that The purpose of this study was to determine some of the
mother’s education has no relationship with all factors in underlying factors that affect the selection of specialization
selection of specialization. by business graduates. Students’ specialization choices are
Hypothesis 9: Effect of all factors depicts p-value is influenced by numerous factors including employment
greater than 0.05, hence providing a strong evidence to accept opportunities, financial compensation, career development,
HO9 portraying that father’s occupation has no relationship individual variants such as gender, personal interests and
with all factors in selection of specialization. aptitude, affordability, family, peers, instructors and the
Hypothesis 10: Effect of all factors depicts p-value is workload, course content and introductory courses of that
greater than 0.05, hence providing a strong evidence to accept specialization etc.
HO10 portraying that mother’s occupation has no relationship A quantitative, descriptive and correlational research was
with all factors in selection of specialization. conducted. Primary data was gathered through questionnaire,
Hypothesis 11: Effect of all factors depicts p-value is the internal consistency of which was good as given by
greater than 0.05, hence providing a strong evidence to accept Cronbach’s value. And the samples were collected through
HO11 portraying that student’s family income has no convenience sampling.
relationship with all factors in selection of specialization Biological information of the respondents was also gathered
which include gender, current institution, intermediate
subjects, CGPA, selected specialization, family background,
parents’ education and occupation and family income.
Sci.Int.(Lahore),27(1),489-495,2015 ISSN 1013-5316; CODEN: SINTE 8 7
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