GOVERNMENT INFLUENCES ON BUSINESS

Government Influences on Business



Abstract

This study examined the similarities and differences in the attitudes of business majors and nonbusiness majors toward business, consumerism, and government in Saudi Arabia. Drawing on the unique culture of Saudi Arabia and the potential influence of business education, we developed three hypotheses. An examination of a sample of 134 respondents revealed that business majors were more favorably predisposed toward a number of business aspects and consumerism than were people who had not majaored in business. Also, both groups were equally and positively inclined toward consumer-related government regulations and price controls.

Government Influences on Business

Introduction

Several national and cross-national studies have examined consumer attitudes toward business, consumerism, and government (BCG). Scholars have argued that consumer attitude to BCG is an important indicator of how well business firms satisfy consumer needs. In general, if consumers are content with business practices, they will have favorable attitudes toward business activities and unfavorable attitudes about consumerism and government regulations. Although consumers generally have unfavorable attitudes toward business practices, they are uncertain whether consumerism and government regulation can control and mitigate business malpractice (Barksdale et al., 1982; Fornell, 1992; Ger & Belk, 1996; Varadarajan, Bharadwaj, & Thirunarayana, 1994).

In this study, we examined the similarities and differences between the attitudes of business majors, both students and graduates, and the attitudes of nonbusiness majors, both students and graduates, toward BCG. Because business majors are taught the design and functioning of business systems, they are likely to have positive attitudes about business even if their buying and consumption experiences are unsatisfactory, according to the dissonance theory (Mehta & Keng, 1984). However, literature suggests that changes in the business curriculum have produced mixed notions about business among recent business graduates. These changes reflect a curriculum that deemphasizes the fundamental principles of capitalism, the merits of a market economy, and the negative effects of government intervention and control. A particular concern is that these changes produce students who fail to understand business ethics and business's role in society. Ultimately, these individuals may view business malpractice with indifference (Jennings, 1999).

Given this backdrop, a study comparing the attitudes of buiness and nonbusiness majors to business, consumerism, and government may help us understand better the influence of the business curriculum as well as the general state and future prospects of business. Our study was undertaken in Saudi Arabia, a developing country. The country's history of business education is recent and limited in reach. Also, as in most other developing countries, the market mechanisms in Saudi Arabia frequently experience nonmarket, government interventions, which foster an unfavorable, less-competitive and unfavorable environment for conducting business. Finally, scholars and researchers have expressed the need to continue examining business practice across cultures and globalization issues (McLean, 1997), which further attests to the need for this type of study.

Attitudes to Business

Previous research identifies four dimensions of consumer attitudes toward business: business philosophy, product quality, advertising, and marketing practices (Varadarajan, Bharadwaj, & Thirunarayana, 1994). We discuss these in the context of Saudi ...