make your code look like the following and it will work for you. You need to put "" around the the second "$a"_bkp. You might also want to do a cp -p to preserve ownership, permissions, etc.
#!/bin/ksh
dir=/home/linux1/sam
echo "enter a file name"
read a
cd $dir
if [ -e $a ]
then
echo "file exists"
cp -p $a $dir/"$a"_bkp
else
echo "file doesn't exist"
fi