The Business Review, Cambridge
Vol. 16 * Number 1 * December 2010
The Library of Congress, Washington, DC * ISSN 1553 - 5827
Online Computer Library Center * OCLC: 920449522
National Library of Australia * NLA: 55269788
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Crisis Management: Trade-off between Effectiveness and Timeliness
Dr. Valery Shemetov, Strayer University, Arlington, VA
A chronic corporate crisis and the effectiveness of recovery programs are considered. An estimate for the time between the crisis onset and a corporation’s bankruptcy if the crisis is left unattended is made based on a uniform decrease in the corporate return on assets (ROA). For a recovery program characterized by its delay in implementation relative to the crisis onset and the expected rate of ROA increase, a probability for survival and a point of no return are estimated. These estimates can be used to choose the recovery program maximizing the corporation’s probability of surviving the crisis over a set of available recovery programs. The current economic recession increases worldwide business risks. To survive, a corporation must improve its management developing and implementing programs which provide the company the best chance to stand in a crisis. Let us consider a chronic crisis contributing a long-term negative factor in a corporate business environment making corporate return on assets (ROA) continuously decrease over time. To overcome the crisis, the corporation should identify the problem and make a correct and timely decision.
Developing A Competitive Edge Through Employee Value: How All International Companies Should Conduct Business
Dr. Herbert P. Ricardo, Indian River State College, Ft. Pierce, Florida
This essay draws on positive information from the world of international business and organizational behavior. Research and information on international business and the inherent characteristics of multinational corporations is increasingly in demand. How organizations communicate and treat employees, regardless of industry and corporate structure, can have a critical impact on the company’s success. Global business continues to change as fast as the countries in which commerce is conducted. This essay identifies several common practices in which companies can engage that will positively influence employees and corporate productivity and ultimately ensure a solid competitive edge. Presented here are five common areas on which companies can focus to ultimately improve performance, regardless of the continent or country in the conduct business. These are internal characteristics that focus on the relationship between management and employees, including; effective communication, employee development, teamwork, ethical standards of behavior, and entrepreneurship, innovation, and creativity.As a professor of international business and organizational behavior and seasoned traveler, I am amazed at the magnitude of change that occurs in and to corporations across a very quick time frame.
Cultural Values and Preferred Workplace Rewards in Southeast European Subcultures
Dr. Detelin S. Elenkov, Angelo State University, Texas
Dr. Joana R. C. Pimentel, University of Canterbury, Christchurch, New Zealand
This is an exploratory study focusing on the subcultural identities and preferred workplace rewards in three countries in Southeast Europe: Bulgaria, Cyprus, and FYR of Macedonia. Our manuscript begins with an outline of the most notable studies on culture from the perspective of its impact on global business. We further specify Trompenaars’ (1993) cultural dimensions, and we present a review of the extant literature on subcultures as a new way of looking at culture and its relationship with business practice. We then apply the subcultural approach to the research on Southeast Europe. Subsequently, we propose three hypotheses suggesting that there will be significant differences in Trompenaars’ values between the main subcultures in Bulgaria, Cyprus, and FYR of Macedonia. We also propose that cultural values will influence preferences for workplace rewards in Southeast Europe. We test our hypotheses using discriminant function analysis, Dunn's multiple-comparison procedure, and partial least squares (PLS) model on a sample of 542 Southeast European respondents. Our research findings indicate that there are significant differences in cultural values among the investigated subcultures (Bulgarian Slavic vs. Bulgarian Turkish, Cypriot Greek vs. Cypriot Turkish, and Macedonian Slavic vs. Macedonian Albanian) in Southeast Europe. Moreover, the results of Dunn’s multiple-comparison procedure have made it possible to discern some specific differences among those subcultures.
Teaching Time Value of Money
Dr. Candy A. Bianco and Dr. David T. Nelson, Bentley University, MA
Dr. Barbara S. Poole, BSP Financial Consulting
This paper examines students’ ability to solve time value of money (TVM) problems in relation to the number of courses in which students have been exposed to TVM, the method by which the subject was presented, and demographic data. Contrary to conventional wisdom, the number of classes that a student has been exposed to TVM, the method by which the subject was taught, and gender do not impact students’ ability to solve uncomplicated problems. GPA, quantitative background and academic major are the factors which affect students’ ability in solving TVM problems. Undergraduate business students are typically exposed to time value of money (TVM) concepts in more than one course. Introductory accounting courses and financial management courses always cover TVM. Students are often taught this subject in mathematics and other general business courses. Many techniques are utilized for teaching and solving TVM problems including formulas, tables, financial calculators and spreadsheets. While executives and academics often disagree, they all agree that the time value of money (TVM) is the most important finance concept that should be taught in introductory finance classes (Gup, 1994).
An Assessment of International Management and Business Administration Student Performance in Online Courses
Dr. Marian C. Schultz, The University of West Florida
Dr. Eugene Round and Dr. James T. Schultz, Embry-Riddle Aeronautical University
This research study evaluates International Management/Business Administration students and their performance in online courses offered through American Universities. In order to accomplish this study, one must first define who is an “international” management or business administration student. For the purposes of this study an international management/business student is one who is not a U.S. citizen, and whose home residence is outside of the United States or its territories. International students who are residing in the U.S. while attending college were considered international students. Individuals who are U.S. citizens, but are residing overseas while taking online courses, are not considered international students. One of the goals of this research was to evaluate how students from another culture perform in U.S. online courses. Due to the limited amount of information available and number of universities utilized in the research, this is considered to be a pilot study. The research found that there was no significant difference in grades between American and international students enrolled in management and business administration classes. Online/ distance learning is defined by Schlosser and Simonson (2006) as “…institution-based, formal education where the learning group is separated, and where interactive telecommunications systems are used to connect learners, resources, and instructors” (p. 1). The history of online/distance learning education can be traced back to 1837 when Sir Isaac Pitman began a process whereby he could deliver shorthand courses through the mail. This form of online/distance learning garnered the term “correspondence courses” and spread to numerous countries in proceeding years (Matthews, 1999).
Analysis of Corporate Social Responsibility Trends in the ICT Industry
Dr. David Wright, Telfer School of Management, University of Ottawa, Ottawa, ON, Canada
Corporate social responsibility, CSR, has been implemented in a general way in many industries. This paper identifies a number of opportunities to implement CSR in the ICT Industry which are specific to that industry, and shows how they can be expected to evolve in the future. The paper analyses the extent to which these CSR implementations are aligned with ICT industry business strategy. It also identifies two other factors affecting the implementation of CSR in the ICT industry: standardization of CSR, and CSR reporting. The impact of these factors on CSR in the ICT Industry is also analyzed. There are many definitions of Corporate Social Responsibility, CSR. Early work, such as that of the Nobel Prize winning economist, Milton Friedman, (1970), stated that “the social responsibility of business is to increase profits”. More recent definitions, such as those from the United Nations, (2010), the OECD, (2008), the European Commission, (2002) and many individual authors, e.g. Hopkins (2007) and Henningfield et al. (2006), emphasize the importance of combining financial responsibility with environmental and social responsibility (including human rights, industrial relations and ethics), as well as the voluntary nature of CSR in going beyond the requirements of legislation and government regulation.
A Behavioral Look at Executive Compensation in United States: The Fuss is About the Income Gap
Dr. Maneesh Sharma, Indiana-Purdue University, Fort Wayne, IN
This paper examines the role of income gap between executives and the median U.S. income gap as a tool to explain the increased scrutiny that executive compensation packages have been receiving. The results show that there has been a substantial concentration of wealth in U.S. over the last forty years and this widening gap is partly responsible for the negative impression of pay packages. There has been a lot of debate in academic circles as well as popular press about behavior of corporations in this country. The issues have ranged from fraud, corporate governance, the U.S. accounting system- the GAAP, general lack of transparency on part of U.S. corporations, excessive risk taking and the level of compensation in U.S. firms. Each of these issues merits more than a separate piece (and even that may not be enough) allotted to the specific topic. What I would like to focus on however, is an issue that has not been visited greatly: the role of income distribution in relation to ramped up talks of how executives are compensated in the U.S. Table I lists some of the companies that have figured most prominently in compensation discussion.
Online Exams: Beware of Cheating
Dr. Stacy M. P. Schmidt, California State University, Bakersfield, CA
Dr. David L. Ralph, Ph.D. and Dr. John E. Richardson, Pepperdine University, CA
Technology has opened up opportunities to expand our classrooms and incorporate a variety of tools to enhance learning and provide flexibility to students and faculty. Universities have invested money and resources into online course systems. Some of the common electronic education platforms for online courses are Blackboard, WebCT, and Sakai. These provide the instructor with the ability to conduct a variety of activities including but not limited to online discussions, chats, online exams, video streaming, and transferring of files between faculty and students. Cheating has been a concern and issue in classes throughout the ages. By administering exams online, test anxiety in students is reduced by allowing students the freedom and flexibility to complete the exam in a comfortable location and a time that is convenient to them. This freedom comes at the cost of being able to monitor the exam to reduce opportunities for cheating. Students have acquired complete and partial portions of testbanks used on exams. It is not uncommon for instructors to use the testbanks provided with the course textbooks. Thus, students can match the testbank to the exam and make it easier to cheat. Utilizing a testbank that is instructor created or from an equivalent textbook from a different author.
The Importance of Teams and How to Lead Teams through Change Initiatives in 21st Century Organizations
Heidi Joy Gregory-Mina, Grants and Research Manager, Trustees of Boston University
Boston University Medical Center
A team’s functional structure helps to define team identity. The effectiveness of a team lies in its team members and the knowledge skills they possess. A team needs to have clearly articulated goals that all team members are responsible for (Gordon, 2002). Effective teams need to align the goals and objectives of the team with the overall organization objectives. A team evaluation model ensures team and organizational objectives are complementary (Jessup, 1992). A number of methods can assist teams in identifying if team strategies are realistic and appropriate for achieving team goals. Hoegl and Weinkauf (2005) found in their longitudinal study of team management and effects on team performance that team member training enhanced cross boundary communications. Germinal team research by Marschak (1955) suggested team success is dependent on team actions taken to accomplish organizational goals amidst externalities outside team control. A leader who successfully manages change within a team needs to involve all team members and encourage team members to communicate with key stakeholders outside the team. It is critical for a team leader to maintain team morale because teams with higher levels of morale are more efficient and productive. Senior management support is critical for a team’s success, and the team leader is the liaison between the team and senior management (Prasad & Akhilesh, 2002).
Study of Economic Impacts Derived from 2005 to 2009 Rural Texas Community Events and Factors that Predict Spending?
Dr. Roger Hanagriff, Texas A&M University – Kingsville, TX
Dr. Olga Murova and Dr. Conrad Lyford, Texas Tech University
In this paper, we review the tourism impact from state supported events associated with Texas Rural Economic Development program and in the process of funding measure aspects of events that are found to be related to economic value. The economic values are the result of visitor spending and extrapolated to total event attendance creates economic value. Communities receiving funding were responsible for collecting visitor surveys to measure consumer spending as well as the community completing a survey to record descriptors of the event. The overall program results were that state support represented 14 percent of the total event investment and total event value from visitor spending created approximately $7.50 return for every $1 of state funding. However, this paper focuses on visitor spending and factors that contribute to economic impacts from those activities. The results indicate that there is a high positive correlation (Spearman Rho=.51) between miles traveled and visitor spending. Also found were significant low positive correlations for art events (r=.041) to higher spending while local heritage events had low negative correlations (r=-.038), which identifies lower spending. Visitors recognizing higher spending at events also visited surrounding communities and traveled over 60 miles to attend.
The Evolution of Electronic Procurement within Supply Chains
Dr. Larry R. Taube, University of North Carolina at Greensboro
Morgan Bryant, Syngenta Corporation
This research examines the use of Electronic Procurement within the Supply Chain Management systems of industrial firms. The specific industry examined in this paper is the chemical industry, a leading developer and proponent of e-procurement systems as chemical companies drive down both administrative acquisition costs and total purchase cost for all components, basic ingredients, and raw materials in their product lines. This paper will discuss the evolution of e-procurement systems within the chemical industry as a whole. In order to stay competitive, all industries must apply their limited resources where they will add the most value to the organization; the specific areas/tools of high value/interest are constantly evolving. In the current bleak economic environment, organizations are increasingly facing pressures to reduce the use of their excess working capital. The changing business environment is requiring organizations to take a closer look at their Supply Chain Management and procurement initiatives. Electronic Commerce (e-commerce), the art of buying and selling over electronic systems, including the internet and other company networks, has flourished in recent years. More and more organizations are using electronic methods to conduct critical business transactions and to procure materials, both direct and indirect.
Productivity and Efficiency of Factor Substitutability in the South African Automobile Industry
Maylene Damoense-Azevedo, Monash University-South Africa Campus, South Africa
This study adopts a variable elasticity of factor substitution production methodology to estimate productivity, returns to scale and the degree of efficiency of factor substitutability in the automobile industry. Annual time series data spanning the period 1971–2007 is used to estimate the industry’s production function. The estimation results reveal evidence of decreasing returns to scale, rising labor and declining capital marginal productivities for the automobile industry. The results also show that factors are not effortlessly substitutable. The decreasing elasticity of capital output signifies the need for technology intensification to improve the industry’s efficiency and competitiveness. The widening trade deficit coupled with the industry’s positive profitability status and increasing labor productivity levels do not support the utilization of further trade protectionist industrial policy. Recent regional integration efforts with emerging developing nations such as China and India could raise competition and production effectiveness in the automobile industry. Subsequent to years of intense protectionist policies, the automobile industry in South Africa experienced major trade policy reforms and in recent years the policy stance has become more liberalised (see Damoense & Simon, 2004; Damoense & Agbola, 2009).
The Exchange Rate Exposure of Thai Banks: Evidence from 2004-2008
Dr. Chaiporn Vithessonthi, Mahasarakham University, Thailand
In this study, I estimate the exchange rate exposure of Thai banks to four major currencies consisting of the Japanese yen, the euro, the British pound and the US dollar using a sample of banks listed on the Stock Exchange of Thailand over a period from January 2004 through December 2008. The results show that there are a number of banks in Thailand with significant exchange rate exposure. For the whole sample period, about half of the banks in the sample are exposed to the Japanese yen. The number of banks with significant exposure to the Japanese yen increases to 75% of the sample when the asymmetric effects of exchange rate movements are taken into account. The results also indicate that a few banks are exposed to the US dollar in recent years, which are in line with Chue and Cook (2008) who find that the number of Thai firms with significant currency exposure has decreased to about 27% over the 2002-2006 period. The fact that a number of firms with significant exposure vary from year to year provides some preliminary evidence in support of time variation in exchange rate exposure. Notably, a large number of banks (91.67% of the sample) appear to have significant exposure to the US dollar in 2006 but the exposure to the US dollar becomes less evident in 2007 and 2008.
The Impact on Firm Value from Joining a B2B Sourcing Market
Dr. James E. Groff, The University of Texas at San Antonio, TX
Dr. John R. Wingender, Jr., Creighton University, Omaha, NE
Business to Business (B2B) e-commerce has become one of the mainstays in modern business. One of the major business cost savings measures is the use of e-commerce as a purchasing tool. This research investigates whether the benefits of a company’s using a B2B sourcing market impacts its firm value. An event study model is used to test the impact on the value of a firm from an announcement that a company has decided to participate in a (B2B) sourcing market. The results indicate statistically significant positive abnormal returns. Thus, B2B e-commerce outsourcing has economic benefits to a firm and these benefits positively impact the value of the firm. The growth in importance of the e-economy is universally recognized. E-commerce has been cited as a major reason why the U.S. economy has been able to maintain a long-term growth trend without an associated growth in inflation. (Goss (2001) and Willis (2004)). While the most visible parts of the e-economy to the average person are the customer-to-customer (C2C) online auctions such as ebay.com and the business-to-customer (B2C) retail sites such as Amazon.com, the component of the e-economy that has the greatest potential for actually changing the dynamics of how business is done is the business-to-business (B2B) sector.
A Framework for Internationalization of B-to-B-Services
Dr. Jukka Ojasalo, Professor, Laurea University of Applied Sciences, Espoo, Finland
This article deals with the internationalization of b-to-b-services. The vast amount of the literature of internationalization of companies is about goods. The knowledge of internationalization of services, and particularly b-to-b-services, is scarce. This article contributes by developing a framework for internationalization of b-to-b-services. The article is based on literature analysis. First, it discusses the general forces behind internationalization of service industries. Then, it discusses the special characteristics of internationalization of b-to-b-services. Next, it explains the nature of services with international scope. After that, it suggests a framework for internationalization of b-to-b-services. The suggested framework integrates the general drivers of internationalization of services as well as special characteristics of internationalization of b-to-b-services. Several reasons exist for the internationalization development of services in the world economy. According to Javalgi and Martin (2007), increasing advancements in information and telecommunications technologies are making it easier and faster to trade services across national borders and bring services where customers are located regardless of where they live. Also, due to the increasing competitiveness and service intensity of the manufacturing sector, manufactures are shifting their focus more and more toward service differentiation from tangible product differentiation.
Lean-Enablers – An Approach to Design Lean Factories
Prof. Peter Nyhuis, Candy P. Schulze, and Tim Klemke
Institute of Production Systems and Logistics, Leibniz University of Hannover
Producing companies often react to the increasing pressure of competition by reducing their costs recurring to lean production. Thus, numerous methods are introduced which require an appropriate competence. The challenge, especially for smaller companies, is among others the available staff capacity for this measure and the required know how. In addition, a methodology is missing, which allows a structured implementation of the lean philosophy in factories. Against this background, this article presents an approach which was developed at the Institute of Production Systems and Logistics (IFA) of the Leibniz University of Hannover and closes this gap. Companies see themselves confronted with increased pressure of competition. Among others, this is to be traced back to the numerous international competitors who frequently produce in countries with comparatively low labour costs. In order to be able to continue producing in line with the market, companies are increasingly compelled to reduce production costs. To meet this challenge, companies have been relying on the concept of lean production for years. This term was determined by the Massachusetts Institute of Technology (MIT) and can be traced back to the Toyota-production-system (TPS) (Womack et al., 1990). Here, the main aim is to avoid non-value-creation processes. At this, the principles are, among others, a determination of value creation from the clients’ perspective, a consistently flowing value creation, the adaptation of the pull principle and the striving for a continuous improvement (Womack and Jones, 2003).
Transition to IFRS: What Can We Learn?
Dennis C. Stovall, Grand Valley State University
With International Financial Reporting Standards (IFRS) already being implemented by a wide range of companies in numerous countries, it is nearly inevitable that the United States will adopt global accounting standards in the near future. The transition to these new standards provides many benefits but involves many challenges relating to the accounting profession. The Securities and Exchange Commission (SEC) has issued a timeline for the U.S. transition but is concerned that many US companies will be unprepared when the new standards are adopted in 2014. To ease the challenges and appreciate the benefits, it is important to examine the experiences of those countries that are currently using IFRS. This awareness should facilitate a smoother transition to IFRS and help U.S. companies to avoid difficulties that have been encountered previously in countries where IFRS is already being implemented. Throughout the world, most investors and stakeholders are already discussing corporate financial performance in the language of International Financial Reporting Standards (IFRS). The globalization of business and finance has already led to the successful mass adoption of IFRS by upwards of 12,000 companies in more than 100 countries, including those of the European Union, Hong Kong, Australia, Russia, South Africa, Singapore and Pakistan. According to the SEC, approximately 85 of those countries require IFRS reporting for all domestic listed companies (Iwata).
Potential Economic Impact of the EPA Endangerment Finding
on Low Income Groups and Minorities
Dr. Roger H. Bezdek, President, Management Information Services, Inc., Washington, D.C.
On 12-7-09, the U.S. EPA issued its long-anticipated “Endangerment Finding," which was a prerequisite to finalizing EPA's proposed greenhouse gas emission standards. Implementation of this Finding could affect millions of entities and lead to the most comprehensive, restrictive, and intrusive environmental regulations in U.S. history. A major impact of this Finding would be restrictions on the availability and increases in the prices of fossil fuels. The economic impacts of the Finding in terms of GDP, incomes, industrial activity, jobs, and other indicators would likely be severe. Due to their economic vulnerability, the impacts on low-income groups, Blacks, and Hispanics would be disproportionate and especially serious. This paper analyzes the likely economic, employment, and energy market impacts of the EPA Finding with special emphasis on the impacts on low-income groups, the elderly, Blacks, and Hispanics. We find that the CO2 restrictions implied in the EPA regulation would have serious economic, employment, and energy market impacts at the national level and for all states, and that the impacts on low-income groups, the elderly, Blacks, and Hispanics would be especially severe. We estimate the likely impacts on GDP, incomes, energy prices, jobs, poverty, and energy burdens.
Green Marketing: A Study of the Impact of Green Marketing on Consumer Behavior in a Period of Recession
Dr. Richard Murphy, Melissa Graber, and Abigail Stewart, Jacksonville University, FL
The purpose of this study was to determine if green marketing had an impact on consumer behaviors during a recessionary period. The survey selected as the most suitable option for data collection is the methodology used. This survey used a large number of participants, as well as some worldwide data, which demonstrates how consumers respond to green marketing and comparing country to country. The results indicate while different countries face unique environmental issues, the consumer is generally accepting of green marketing efforts. This study concludes that despite the recessionary period the green movement is likely to persevere. “Green” advertisements bombarded with a constantly growing number of products and services. Whether it is energy efficiency, alternative sources of fuel, conservation efforts, alternative cleaning products, or an organic diet, we are entering an era in which being “green” has become somewhat of a hip trend. As we find ourselves inundated with a plethora of “green” options and causes to support, this study seeks to determine how effective the “green” marketing efforts truly are with regard to the effect they have on the purchasing behavior of consumers during a recessionary period.
Corporate Governance and Ethics in Croatian Corporations
Tea Golja and Morena Paulisic, Juraj Dobrila University of Pula, Croatia
It is easy to define ethics, but there is a question what ethics means to us - corporations, individuals, employees, costumers, society in general etc.? Ethical questions about the way we live and do business and interact with one-another, have become major issues that will decide what kind of future we will inherit. In corporation, boards have great influence on business ethics through decisions, procedures, rights, and that is what opens acceptance of ethics in work of any individuals in organizations. We wanted to explore the theoretical approach of ethics in business and the “position” of ethics in Croatian corporations and underline the main ethical problems. The goal of this paper is to highlight key concept of ethics in Croatian corporations. Research limitation was subject matter because managers were not willing to talk about ethics and unethical behaviour in their corporations. Findings showed that corporate governance in Croatia is still in an early phase – they are protecting shareholders, transparency policy is partly implemented, board has not set up procedures to enhance ethical behaviour. The value of this paper is based on the uniqueness of the research results about corporate governance and ethics in Croatian corporations. In theory (Bolman, Deal, 2008; Kim et. al., 2010, Robbins et al.2010) good corporate governance and high ethical standards are essential for corporate long-term success, but the problem in discussing ethics is the lack of a single, universal standards.
Tax-based EU Own Resources - Tax Harmonization or EU Tax?
Asst. Prof. Danuse Nerudova, Mendel University, Brno, Czech Republic
Own resources represent the main pillar of the EU budget incomes. They include agricultural subsidies imposed in the frame of common agricultural policy on the agricultural products are imported to the EU from thirds countries and the duties collected from the sugar producers. Further, they include custom duties collected (according to the Custom Code) from the goods entering the EU territory. Another type of own resources has been introduced in 1988 – the contribution from the GNI. The last own resource of the EU budget incomes represents the payment from the only tax collected on the national level – VAT. The insufficiency of the budget resources has even deepened during the economic crisis. The aim of the paper is to analyze which Czech national taxes, could be the suitable candidates according the multi-criteria analysis developed by Cattoir (2004). The results are compared with the results which were reached by Cattoir, while assessing the candidates on “EU taxes” suggested by EU Commission. Own resources represent the main pillar of the EU budget incomes. They include agricultural tariffs imposed in the frame of common agricultural policy on the agricultural products which are imported to the EU from thirds countries and the duties collected from the sugar producers.
Overcoming the Fear of Business Math Using an Adaptive Learning Approach
Dr. Leonard Presby, William Paterson University, NJ
An expectation gap often exists between what a course requires and what prior prerequisite courses produce. This paper examines a unique approach in learning business math principles. Incorporating a blended course delivery approach, three different classes were exposed to an adaptive learning approach with regard to learning and reviewing basic math required for business studies. Assessments were conducted both at the beginning and end of the course. Students were more motivated and interested using this method. The results show an increase of learning varying from 10 to 150% using this system. All the students preferred this learning manner compared to the traditional one. Results of this study have strong implications to help reduce the problem of students dropping courses. Education is more essential than ever to an individual’s economic future. Unfortunately, many students are beginning their post-secondary studies unable and unequipped to succeed, especially in quantitative type courses. In a typical business curriculum, students are expected to enter a course such as business statistics, managerial economics, financial accounting, corporate finance having some math under their belt.
Financial Characteristics of Acquired Companies – Case of Croatia
Dr. Ivica Pervan and Dr. Maja Pervan, University of Split, Split, Croatia
Nikica Kljaic, Tehnicka skola, Sibenik, Croatia
The main motivation for this paper is the increased number of mergers and acquisitions in Croatian emerging economy during the last few years. Therefore, the paper is focused on exploration of financial characteristics of acquired Croatian companies. The sample consists of data for 54 (in 2007) and 50 (in 2008) acquired listed and privately held companies. In order to obtain insight into the financial characteristics of acquired companies we have compared acquired with nonacquired companies, where the sample of nonacquired companies was randomly selected from the same industry and year population. Univariate analysis for the 2007 revealed that the average size of acquired companies was larger than the average size of nonaquired companies. The analysis for 2008 also confirmed that the average size of acquired companies was larger than the average size of nonaquired companies, while acquired companies had significantly lower profitability (ROA). Multivariate analysis based on logistic regression resulted with finding that financial characteristics of acquired and nonacquired companies do differ, particularly in terms of size and activity (2007).
The Shift from Co-Production in Services to Value Co-creation
Dr. Katri Ojasalo, Laurea University of Applied Sciences, Espoo, Finland
In the traditional value chain approach, companies and customers have distinct roles of production and consumption. Companies can design and produce products, develop production processes, and control marketing channels with no or little interference from customers. Value is produced for the customer. In service companies, however, value is usually produced with the customer: customers often participate in co-production of services and provide resources needed in the production process. Thus, output of the process is dependent on customer’s input. Service provider is typically still in charge of the overall orchestration of the service production process, and co-production happens within parameters defined by the service provider. Today, the meaning of value and the value creation process are rapidly shifting from this kind of a supplier company-centric view to customer experiences and joint value co-creation. In value co-creation customers engage in the process of both defining and creating value. This shift from company-centric co-production to joint co-creation of value is fundamental and requires more investication.
An Evaluation of the McKinsey’s Offshoring Framework for Supply Chain Relationships
Muhammad Al Qahtani, Saudi Aramco
Dr. Farhad Daneshgar, University of New South Wales, Australia
McKinsey Global Institute proposes a framework that provides useful and practical guidelines for multinationals to assess suitability of an offshore location as their own offshore location. On the other hand the literature on inter-organizational knowledge sharing provides insights into knowledge sharing requirements at organizational levels among supply chain partners. The current study provides a theoretical foundation for selecting a suitable offshore location based on the McKinsey’s guidelines while at the same time knowledge-sharing requirements of both parent and offshore companies can be taken into consideration. By combining the findings in knowledge management in inter-organizational and supply chain contexts with the guidelines provided by the McKinsey Global Institute this paper proposes a specialized version of the framework that considers aspects of inter-organizational knowledge-sharing in supply chain relationships when considering establishment of offshoring relationships. The process of assessing offshore locations in the light of their supply chain inter-organizational knowledge-sharing requirements is then demonstrated by a qualitative assessment of a limited number of relevant factors.
Empirical Evidence on the Long-Horizon Operating Performance Around Canadian Convertible Debt Issues
Dr. Khalid El Badraoui, ESC Rennes School of Business and CREM UMR CNRS, Rennes, France
This paper examines the long-run operating performance of convertible bond issuers in Canada. Theoretical explanations of the use of convertible debt illustrate how the combination of straight debt and contingent equity features built into a hybrid security can reduce the information and agency costs companies face when raising capital from external investors. However, similar to previously documented evidence for equity offerings, we show, using accounting-based performance measures, that Canadian firms exhibit an inordinately long-term poor operating performance following convertible bond offers. These results confirm those obtained in the US market and contribute to explain the puzzling post-issue stock price underperformance of convertible bond issuers that have been unearthed in a number of empirical studies. Our findings also illustrate that the decline in operating performance experienced by issuing firms seems to be partly due to industry specific factors.
Best Practices for DFSS in the Development of New Services: Evidence from a Multiple Case Study
Matteo Campanerut, University of Udine, Italy
Bernardo Nicoletti, Consultant & Coach
Although the service sector has kept on growing in the last years, many are the topics in the service literature that academia has not sufficiently gone in depth. Nowadays, to survive in the global competition, it is even more important to design new services fitting with the needs of the customers. This is clearly evident not only in the pure service organizations but also in the manufacturing ones that improve their servitization. Design For Six Sigma (DFSS) is an excellent methodology to design new products and processes and can be applied company-wide; several are the authors that studied this topic, however, empirical research on the applications of DFSS to services is still scanty. The purpose of the paper is to define a set of best practices on how organizations could apply DFSS to services. Furthermore, a model has been derived from these best practices, in order to successfully adapt the methodology to different service processes and manage all the aspects of DFSS. On the basis of previous results, a multiple case study has been launched in organizations operating in different service contexts. Beyond to fill a gap in the Six Sigma literature, outlining empirically the effectiveness of DFSS application in the services development, this study has also a managerial relevance.
Asymmetric Volatility in Emerging Stock Markets: Evidence from Iran Stock Market
Seyyed Ali Paytakhti Oskooe, Kingston University, London
Motivated by the mixed empirical results in the literature, this paper examines the presence of the asymmetric effect in Iran stock market as an emerging stock market. In order to assess asymmetric volatility we use autoregressive conditional heteroskedasticity specifications known as TARCH and EGARCH models. Results from conducting asymmetric effect test on standardised residuals from a fitted GARCH model, show lack of asymmetric effect in the dynamic volatility of Iran stock market. The empirical analysis from TARCH and EGARCH models rejects the hypothesis of asymmetric volatility in contrast to most developed and emerging markets. Hence, good and bad news of the same magnitude have similar impacts on the volatility level in Iran stock market. It is popularly believed that in stock markets a shock of either sign may affect stock returns volatility differently, specifically volatility increases more in response to negative shocks (bad news) than to positive shocks (good news). In other words, there is negative correlation between the current stock return and the future volatility. Generally speaking, stock market volatility tends to be higher in a falling market than in a rising market.
Market Structure and Profitability of Croatian Commercial Banks
Dr. Maja Pervan, Dr. Ivica Pervan, and Antonia Guadagnino
University of Split, Split, Croatia
Analysis of bank profitability has always been an issue among researchers, and various studies find alternative factors that influence profitability. Following one stream of research (SCP framework) the aim of this paper was to find whether market structure (beside some other factors) has impact on bank profitability. Apart from structural variables, the study additionally takes into consideration bank specific variables as well as macro variables to control for other factors which may influence bank profitability. Empirical investigation accepted the classical SCP hypothesis, while depending on the model specification, the relative market power hypothesis (RMP) for the Croatian banking industry in the period 2002-2009 can (not) be accepted. Banks performance has always been a very controversial issue in research and there are many studies for different countries accompanied with different theoretical and statistical models. Classical Structure-Conduct-Performance (1) (SCP) approach starts from the point that banks can earn extra profits in more concentrated markets, since they can offer lower interests rates on deposits and higher interest rates on loans. SCP relationship is therefore empirically tested by regressing the measure of banks performance with the measure of concentration.
Proposition of a Performance Measurement Tool for Analysing and Signalling SMEs’ Performance
Dr. Franck Brulhart, Aix-Marseille University and Toulouse Business School
Dr. Sandrine Gherra, Groupe Sup de Co Montpellier
Philippe Rousselot, Toulouse Business School
Measurement and monitoring of performance practices remain particularly disparate, incomplete and often unsatisfactory within the field of SMEs, due to the insufficiency of their resources and the lack of formal performance management tools. The inadequacy of performance measurement and management systems (PMMS) prevents the owner-manager from producing reliable and accurate financial information and from presenting his situation to various stakeholders, in particular to providers of capital. The objective of this article is therefore to propose a PMMS adapted to SMEs, one that can be used by owner-managers or their consultants to actively manage performance, and also as a tool for communication, negotiation and dialogue with stakeholders. Based on an “enriched DuPont model”, the model presented here focuses on six determinants of value for SME managers. It is decomposed into five successive equations that aim to gradually deepen the understanding of the formation of company performance in connection with the practices and strategic positioning of the firm.
Free Speech vs. Hate Speech
Martin L. Griffin, J.D., Laura L. Sullivan, J.D., Tommy J. Robertson, J.D.,
Sam Houston State University, TX
Whether it is due to our history as a nation, the values that run through our culture, or just plain old chutzpah, Americans traditionally cling to their guns, Bibles, and the right to loudly state their opinions. As a nation we engage in these activities while shouting to all who will listen that our freedoms to do so are protected by the Bill of Rights. Most of these raucous individuals are unaware that none of their civil rights, such as Freedom of Speech, are absolute. Only recently thrust into the struggle between individual rights versus society’s well-being is the relatively new issue of “Hate Speech”, that is, speech intended to degrade, intimidate, or incite violence or prejudicial action against a person or group of people based on their race, gender, age, ethnicity, nationality, religion, sexual affiliation, gender identity, disability, language ability, ideology, social class, occupation, physical appearance, mental capacity, and any other distinction that might be considered by some as a liability. Though the U.S. government cannot regulate the content of speech, it can address its harmful effects with laws such as defamation, intentional infliction of emotional distress and incitement to violence/riot. Where are we in the legal world with respect to “Hate Speech”?
Determinants of Insurance Companies' Profitability in Croatia
Maja Pervan, Ph.D., University of Split, Split, Croatia
Tomislava Pavic Kramaric, MSc, University Department of Professional Studies in Split, Croatia
The aim of this paper is to investigate the determinants of the insurance companies’ performance in the Republic of Croatia during the period from 2003 to 2009. Although performance of other financial institutions i.e. banks are widely investigated, the empirical framework that at the same time analyzes the effect of insurance-specific, industry-specific and macroeconomic determinants on the insurance profitability are not so exhaustively analyzed. This is especially true for the Croatian insurance industry. So, the purpose of this paper is to fill this gap by performing (to the best of authors’ knowledge) the first such research for the Croatian non-life insurance market. Furthermore, this analysis also contribute to the field of empirical performance researches in a way that it provides additional insight into the impact of different variables such as: past profitability, size, ownership, expense ratio, industry concentration, market growth and inflation; on the insurance companies’ performance in a developing country.
Comparability of Financial Statements Prepared According to IFRS and IFRS for SMEs in the Field of Intangible Assets
Asst. Prof. Hana Bohusova and Dr. Patrik Svoboda, Mendel University, Brno, Czech Republic
IFRS for SMEs was adopted in July 2009 as a result of efforts to harmonize financial reporting for SMEs. This standard is based on the same principles as full standards. The aim is, compared to full IFRS reporting of these businesses, to significantly simplify, mainly from the reason that the strict application of the principles of the full standards does not excessively financially and administratively burden smaller accounting entity. Field of identifying, recording and reporting of intangible assets except goodwill is an important field in which the methodology is substantially different. In the present paper there is documented on the example the impact of different methods for recording of internally generated intangible assets in the both systems into balance sheet and profit and loss statement and into the selected indicators of financial analysis. Definition of issues that may arise during the transition from the IFRS for SMEs to full IFRS and vice versa, in the context of drafting the opening balance sheet is another field to which the paper is dedicated.
The Effects of Chronological Age on Management and Business Administration Student Performance in Online/Distance Learning Courses
Dr. Marian C. Schultz, The University of West Florida
Dr. James T. Schultz and Dr. Eugene Round, Embry-Riddle Aeronautical University
Meeting higher education needs is a dynamic process both in the United States as well as around the world. Individuals are living longer today than in the past, and because of the worldwide economic downturn, many older individuals are staying on the job longer, seeking second careers, or looking to better themselves educationally to qualify for better positions. Online/distance education affords these students the opportunity to achieve educational goals without having to return to the traditional campus. This study examined how students 56 years of age and older, most of whom did not use computers in their earlier educational experience, compared academically with their younger counterparts. The results from the data found that there was no significant difference in grades attained by students 56 years of age or older, as compared with students 55 years of age or younger. American higher education is in a state of change in terms of the way colleges and universities are offering undergraduate and graduate programs and courses. This change is being driven by the combined forces of demographics, globalization, economics, and the use of online technology via the internet. Changes will continue into the future, leading to significant changes in educational markets and organizational structures.
Capacity Planning and Coordination With Fuzzy Load Information
Steffen C. Eickemeyer and Prof. Dr. Peter Nyhuis
Institute of Production Systems and Logistics, Leibniz University of Hannover
To increase the logistics performance of regeneration processes, the Institute of Production Systems and Logistics is developing methods concerning the availability analysis of regeneration measures as well as a method for an efficient capacity planning and adjustment in spite of fuzzy load information. Apart from a generic process model, a damage library, an availability analysis of regeneration measures as well as a functioning model for capacity planning and load control based on the latter are being compiled. The topic of capacity planning is a partial project (D1) of the special research area (SFB) 871 „Regeneration of complex investment goods“. The SFB is researching the scientific bases for the regeneration of complex investment goods. The aim of these assignments is to maintain or reprocess as many components of the respective total system in such a way that the functional characteristics of the investment goods are restored and, if possible, even improved.
A Comparison of 2007 to 2010 Branded Meat Consumers; Are Consumers Changing and What Product Characteristics Influence’s Their Buying Decision
Dr. Roger Hanagriff and Dr. Ryan Rhoades, Texas A&M University Kingsville, TX
Dr. Marcy Beverly and Dr. Kyle Stutts, Sam Houston State University
The objective of this study was to demographically describe branded beef households, define preferences of high volume buyers and identify high frequency decision factors. Results are derived from 270 consumer survey responses from web-delivered surveys sent to consumers listed in company web addresses and offered to those also registered with social media sites. Total population is difficult to determine, but results created a reliability score of .89 (Cronbach’s alpha), which is a high reliability score. Respondents were mostly male (66%), married (73%), over 45 years of age (68%) and having full-time jobs (71%) earning mostly over $70,000 per year. Coupons and recommendations of someone they know are the most common and preferred communication tools that impact their buying decisions. These buyers purchase product mostly once per week, with 41% buying steaks and 45% buying ground beef. Sausage product (49%) mostly leads steaks and ground beef with buyers mostly recognizing those purchases once per month. In relation to these respondents experiences in buying branded beef products, mostly were steak buyers (43%) with mostly never purchasing other products. In terms of decision factors related to buying beef products, the highest ranking “always important” area are previous buying experience (58%), product guarantee (58%), country of origin (57%), guaranteed tender (51%), growth hormone free (43%), low fat/lean (41%), and no antibiotics used (40%).
Transaction Costs and Technology Licensing: Evidence from Latin American Companies
Dr. YoungJun Kim, Dr. Anand Jha, and Dr. Siddharth Shankar, Texas A&M International University, TX
This paper investigates how transaction costs of licensing can affect technology holders’ incentives to sell their proprietary technologies through licensing alliances. Empirical examination of the propensity to licensing is done with the help of a unique panel data set of observed licensing transactions involving companies across Latin American countries. The strength of IPRs protection, economic freedom, and the rate of GDP growth in the country are found to be important determinants of inter-firm technology licensing. The findings suggest that the greater the level of opportunism and uncertainty, the more controls would be placed on a transaction, which makes a transaction of technology through licensing more costly. There is no question that technology licensing has played a major role in today's business and economy. In the context of the contemporary international business and economic environment where there exist more aggressive competition, increased reliance of companies on external sources of technical knowledge, and strengthening intellectual property protection, licensing has become a more visible type of inter-firm strategic alliances.
Earnings Quality Constructs and Measures
Ahmad Mohammady, Kingston University London
The accounting literature includes various aspects of earnings quality concept and different studies focus on different aspect of earnings quality. Review of accounting literature shows that extant researches in measuring of earnings quality usually focused on one dimension of qualitative characteristics of accounting information (relevance and reliability). This study attempts to develop a measure of earnings quality by using qualitative characteristics of financial statement information specified in the Statement of Financial Accounting Concepts (SFAC) No. 2 (FASB 1980). I conclude that the earnings quality construct reflects decision usefulness to investors and there is a significant need for the development of a unified definition and measurement of earnings quality based on the primary qualities of accounting information (relevance and reliability). Financial reports are the most important output of an accounting system. The purpose of financial reporting is to provide the information which can be useful for business decisions (Schipper and Vincent, 2003).
Human Resource Planning As a Tool for Managing Staff Stability in Selected Institutions in Ghana
James Kennedy Turkson, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
The labour market is so fragile and volatile that any organization that does not pay a particular attention to it to its advantage is likely to pay a dear price for it. The problem becomes more complex when unpredictable exit plans of employees are not known in order to put in place contingency plans to address them. This problem exerts strains on the Human Resource Management Department. This brings to focus, the importance of human resource planning with a view to addressing all cases of exits. This paper attempted to investigate into the human resource planning practices in selected Small and Medium Enterprises (SMEs) in Ghana. The result of the study is a clear indication of the fact that SMEs in Ghana do not place much premium on human resource planning as a way of immediately addressing unexpected exits through resignation, dismissal, vacation of post, termination and other forms of exit. About 52 out of the 72 managers of the 72 SMEs studied did not have any human resource planning strategies in place. The practice has been the use of ad hoc measures to address unexpected exits
An Examination of the Evolution and Development of Direct Marketing that Implicates the Appropriate Use of Direct Marketing as Part of the Marketing Strategy Used to Market Products
Dr. Mary Werner and Dr. Richard Murphy, Jacksonville University, Jacksonville, Florida
Direct marketing has been in existence for a number of decades. Over a relatively brief period of time, the types used have grown in number and nature. Choices of types of direct marketing are now varied and numerous. As a result, there has been debate over the appropriate use of direct marketing. There is not general agreement over even the definition of what constitutes direct marketing making it difficult to appropriately use direct marketing in any given marketing plan. The purpose of this study is to examine the evolution of and review the various types of direct marketing and as a result provide some guidelines enabling the appropriate and most effective use of direct marketing when determining the most appropriate strategy for marketing a product. Direct marketing has always existed conceptually since it is generally accepted that marketing that targets and reaches and contacts customers has been generally accepted as direct marketing. Perhaps the earliest type of direct marketing is the mail order catalog. Then over time as new technologies developed and continue to develop direct marketing evolved and changed and the kinds or types increased in number. It seems that the types of marketing characterized as direct marketing have become so well integrated into the marketing discipline that it has become increasingly difficult to determine if methods used are retailing or promotion.
The Evaluation of the Convergention of US GAAP and IFRS in the Area of Borrowing Costs
Asst. Prof. Hana Bohusova and Asst. Prof. Danuse Nerudova
Mendel University, Brno, Czech Republic
Borrowing costs have been one from the fields, which was the subject of convergence works. U.S. GAAP dictated capitalization of borrowing costs incurred in connection with the acquisition of qualifying assets, while the IAS / IFRS leaved the decision on accounting entities, how it recognize and record borrowing costs incurred in connection with the acquisition of the assets. In the beginning, the method of analysis and description is used to identify and describe the basic difference of both systems, which had existed before the initiation of convergence within the frame of “Borrowing Costs” project. The above mentioned primary analysis has served as the basis for the further comparative analysis and synthesis. Short-term project of borrowing costs, whose aim was to unify the reporting of interest on borrowing funds on the side of IASB, was completed in March 2007 by issuing of the revised IAS 23 Borrowing Costs with effect from 1.1. 2009. The paper deals with major changes to IAS 23 occurred in the context of the IASB - Borrowing costs. Elimination of a major difference in the reporting of borrowing costs in the system IAS / IFRS and U.S. GAAP was reached by the revision of IAS 23, however all the existing differences were not removed.
The Application of Quality Management Principles into the Management of the Destination
Dr. Ida Vajcnerova and Dr. Katerina Ryglova, Mendel University in Brno, Czech Republic
Tourism is an important economic branch that supports the development of connected areas, export activities as well as the development of domestic regions. In spite of its indisputable importance the responsibility for the development in individual destinations is not clearly determined in many countries. The whole range of authors inclines to the opinion that managing tourist destinations has to be legislatively adjusted; functions as well as a clear organization structure have to be set. The development of tourism in developed tourist destinations is dealt with by destination management that implements activities leading to increasing the efficiency of demand and offer. Considering strong mutual competition and possible substitutions among individual tourist destinations the use of destination management is an inevitable and also key precondition for the success of a destination and its assertion on the market. One of the key activities in destination management is managing the quality of a tourist destination. The paper deals with approaches towards the quality in tourism services. Nowadays there are three different approaches towards the management of quality being used.
Student’s Evaluations of their Completed Degrees
Dr. Joseph G. Hirschberg and Dr. Jeanette N. Lye, University of Melbourne, Melbourne, Australia
In this analysis we investigate the impact of student performance and the overall view of students as to the quality of instruction in the classes taken on their perception of their recently completed degrees. Employing the response of students at a major Australian tertiary institution we demonstrate that the responses to the National Australian Course Evaluation Questionnaire (CEQ) that is administered to all students completing a degree program, are strongly influenced by the marks they receive, the marking patterns for all students and the perception of teaching quality as measured in class specific Quality of Teaching (QOT) surveys in classes they take. Quality assurance in higher education now places a much greater emphasis on quantitative measures of institutional performance than previously was the case. In Australia, The Course Experience Questionnaire (CEQ) (Ramsden, 1991a, 1991b; Ramsden & Entwistle, 1981) has been used to establish national benchmarks for all Australian tertiary institutions. Since 1993, the CEQ has been mailed to all graduated students in Australia who have completed a qualification or degree in the previous year. Its scales have been shown to possess useful properties (Eley, 2001; Richardson, 1994; Trigwell & Prosser, 1991). Recently it has been used as a key element in the determination of grants from the Australian Commonwealth Learning and Teaching Performance Fund.
Towards an Effective Career Development Plan for Managerial Succession Plan in the Banking Sector in Ghana
James Kennedy Turkson, Kwame Nkrumah University of Science and Technology, Ghana
The study takes a critical assessment at career development and management succession planning in 15 selected commercial banks in the Kumasi Metropolis in the light of challenges posed by the loss of institutional knowledge and experience resulting from retirements resignations and death of top management and administrative personnel and the loss of talent to competing institutions. Career development and succession plans constitute critical managerial strategies in the banking industry in particular. It would be a highest level of managerial inefficiency and ineptitude if a commercial bank should allow a vacancy to emerge before a frantic effort is made to fill the vacancy. This makes it imperative for all commercial banks to adopt an effective career development and succession plans in order to deal with unexpected exits. The research has revealed that there is a reasonable amount of career development and succession plans in the 15 commercial banks studied in the Kumasi Metropolis in Ghana. Nevertheless the study revealed that there are traces of labour turnover resulting from the proliferation of a number of commercial banks. This has created fertile opportunities for staff in the banking industry to be marketable and hop from one bank to another.
Bankruptcy in Hungarian Lombard-financing Activity and the Solution
Dr. Laszlo Kozar, Budapest Business School, Hungary
Dr. Andras Nabradi, University of Debrecen, Hungary
Peter Sutak, Key account Manager, MKB Bank, Hungary
The principal achievements of this paper is to introduce the financial boom and collapse in 2007 and 2008 years in the Hungarian Lombard-financing market, justify the reasons and introduce a new financial solution using the advantages of Public Warehousing and Futures market. Justification of the reasons of financial loss in 2008 is based on the price data of grain futures market from 2004 EU accession to these days in Hungary. In pursuance of the development of the new financial system, a specified model was applied. The calculation model was created in order to assist short and long-term marketing decisions. This electronically developed allows all of the participants of the market: producers, consumers, banks and traders, to use this model in immediate calculations. In addition it helps to establish the own business strategy. The model can be used to analyze price influencing factors therefore, it can also be used for policy-making decisions for market participants as well as banks dealing with Lombard activity. The new Lombard-financing construction is based on the combined use of the two market institutes, through a Special Purpose Company ‘SPC’ owned or controlled by a commercial bank, as the participant of the hedge and the beneficiary of the Warehouse Receipt in the frame of the financial system.
The Role of ICT in Europe Particularly in the Hungarian Tourism
Dr. Krisztina Zimanyi, Dr. Laszlo Kozar, and Dr. Istvan Kovari
Budapest Business School, College of Commerce, Catering and Tourism
The Information and Communication Tools (hereinafter referred to as „ ICT – Tools”) and technologies are of crucial importance in these days in almost all aspect of life and fundamentally affects the living- conditions of the population, as well as the possibilities and competitiveness of the business sphere. The application of such not purely and simply mean the utilization of the tools of computer science, but also the capitalization of possibilities provided by developed network services. Therefore, a survey on the abovementioned tools and technologies are particularly topical. Europe lays great emphasize on the development of the sector of information and communication technology in order to improve its position obtained in global competition. In year 2000, leaders of the European Union set the goal of turning into the most developed information society and economy in the world by 2010. In the interest of realizing such goal the e- Europe programme has been elaborated in which the directives necessary to reach the aim are set forth. The application of ICT in tourism- with the introduction and spreading of Global Distribution System and Central Reservation System, usually referred to only as GDS/CRS Systems (Amadeaus, Worldspen, Sabre, Gallileo) – holds a greater past despite the fact that initially travel agencies did not connect to them through the internet.
Literature Review of Challenges in Business Education
Lana Nino. CPA, MSBA, Whittier College, CA
The purpose of this review of the literature related to the challenges facing business education is to identify the gaps in the scholarly research and to select appropriate theoretical frameworks as a foundation for further investigation and analysis. In the extant literature, various scholars enumerated the problems that weigh upon business education, economically, ideologically and technologically (AACSB, 2002; Cavusgil, 1993; Gregg & Stoner, 2008; Hugstad, 1983; Khurana, 2007; Mason, 1990, Pearce, 1993, Schmidt, 2008; Wilbur, 1984). Some of the challenges have been historical, dating back to the early 20th century when business schools started to form under the influence of market forces (Pierson, 1959; Porter, McKibbin et al. 1988); other challenges have resulted from the evolution of business in the last century which has directly affected the growth in business education. In this review, specific questions are asked in the pursuit of a thorough understanding of the issues. What theoretical frameworks illuminate the rise of the challenges in business education? What are the historical perspectives that have persisted for decades, shadowing business and its institutions?
Globalization and Entrepreneurial Education; An American Perspective
Dr. Chris Ehiobuche, Berkeley College, New Jersey
Dr. Chizoba Zee Madueke, University of Phoenix, Phoenix, AZ
Dr. Lawrence Obokoh Ogechukwu, University of Wales, Penglais, Aberystwyth
Globalization has made entrepreneurship an indispensible resource for any country’s completive advantage, hence the need for its development and enrichment. This paper presents the findings from an exploratory study of the dynamics of entrepreneurial education, based on American perspectives, changes in student body, faculty, and college environment. Delivering methods and general trends in business education are the major study dimensions. Seventy teaching and research professors in leading business schools responded to open ended inquiries, probing their insight on the topic. An extensive review of related literature were used in validating and justifying the empirical observations in this research. The aim of this paper is to provide an insight into the dynamics of today’s entrepreneurial education. Explore the nature of changes in the teaching and scholarship of entrepreneurship as an academic discipline. Discuss some of the characteristics of today’s students and college learning environment. Provide ideas for faculty to supplement their traditional teaching tools with options that are more consistent with the learning styles of today students. Contribute to literature and scholarship of entrepreneurship.
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