The Business Review, Cambridge
Vol. 1 * Number 1 * Summer 2003
(Click here for Main Page)
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The Business Review, Cambridge Vol. 1 * Number 1 * Summer 2003 |
(Click here for Main Page) |
INFORMATION FOR CONTRIBUTORS
The Business Review, Cambridge is indexed in the CABELL'S and ULRICH'S DIRECTORIES of Refereed Publications. The primary goal of the journal will be to provide opportunities for business related academicians and professionals from various business related fields in a global realm to publish their paper in one source. The Business Review, Cambridge will bring together academicians and professionals from all areas related business fields and related fields to interact with members inside and outside their own particular disciplines. The journal will provide opportunities for publishing researcher's paper as well as providing opportunities to view other's work. All submissions are subject to a two person blind peer review process.
The Business Review, Cambridge is published two times a year, December and Summer. The e-mail: drsenguder@aol.com; Website, www.jaabc.com Requests for subscriptions, back issues, and changes of address, as well as advertising can be made via the e-mail address above. Manuscripts and other materials of an editorial nature should be directed to the Journal's e-mail address above. Address advertising inquiries to Advertising Manager.
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BOARD MEMBERS Dr. Turan Senguder, CEO and Executive Chair - JAABC Dr. Jean Gordon, Chair - JAABC, Miami, FL Dr. Z. S. Demirdjian, Review-Editor - California State University, Long Beach Dr. Nancy J. Scannell, Review-Editor - University of Illinois at Springfield |
EDITORIAL ADVISORY BOARD Dr. Turan Senguder, The Journal of American Academy of Business, FL; Dr. Jean Gordon, JAABC, Miami, FL Dr. Nancy Scannell, University of Illinois at Springfield, IL; Dr. Z. S. Demirdjian, California State University, CA Dr. Robert H. Parks, Pace University, NY, NY : ; Sergey Vasnetsov, Lehman Brothers Inc., NY Dr. William V. Rapp, The New Jersey Institute of Technology; Dr. C. Pat Obi, Purdue University Calumet, IN Dr. Stewart L. Tubbs, Eastern Michigan University, MI: Dr. Doug Flint, University of New Brunswick, Canada Dr. Ara G. Volkan, Florida Gulf Coast University, FL: Dr. Jack A. Fuller, West Virginia University, WV Dr. Robert Guang Tian, Medaille College, NY: Dr. Stuart Locke, The University of Waikato, New Zealand Dr. Eric Schulz, Eastern Michigan University, MI: Dr. Roger D. Hanagriff, Sam Houston State University, TX Dr. Steven H. Appelbaum, Concordia University, Canada: Dr. O. Kucukemiroglu, The Pennsylvania State University, PA Dr. Cemal Zehir, Gebze Institute of Technology, Turkey: C. P. Kartha, Ph.D., University of Michigan-Flint, Flint, MI Dr. Tufan Tiglioglu, Alvernia College, PA: Dr. Ziad Swaidan, University of Houston, Victoria, TX Dr. Shawana P. Johnson, Global Marketing Insights, OH: Dr. Shohreh Hashemi, University of Houston Downtown, TX Dr. Shamsul Chowdhury, Roosevelt University, IL: Dr. Soo-Young Moon, University of Wisconsin Oshkosh, WI Dr. Pearl Steinbuch, Mount Ida College, Newton, MA: Dr Amir Mahmood, The University of Newcastle, Australia Dr. Henry Tam, York University, Toronto, ON, Canada: Dr. Raymond Cairo, London School of Economics, England
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The Role of International Accounting Standards in Developing Economies: The Case of Jordan
Mufeed Rawashdeh, Ph.D.
ABSTRACT
Many researchers, in addition to the International accounting standards Committee, in the process of promoting the adoption of International accounting standards (IASs) claimed that the adoption of IASs would facilitate the development of equity markets and promotes economic growth [Coopers and Lybrand 1993, Nobes and Parker 1991, Wyatt 1991]. Harmonization and the adoption of IASs are, nonetheless, controversial [Rivera 1989, Meek and Saudagaran 1990, Falk 1994]. Some researchers see no particular benefits from adoption of IASs, especially in developing countries [Samuels and Piper 1985, Amenkhienan 1986, Hove 1989]. Although both positions are well documented, neither position is well supported by empirical research findings [Gray and Roberts 1991, Falk 1994, Larson and Kenny 1995]. Despite the above and in order for developing countries to attract foreign capital and achieve economic growth, they are often called upon to implement accounting standards that inspire confidence in foreign investors. And given that most of these countries don’t have the time, economic resources or experience to develop such accounting standards, IASs were seen by all as the appropriate solution. Few research, if any, have attempted to examine whether the benefits from adopting IASs, such as foreign cash inflows and economic growth, have been realized by adopting developing countries. This paper attempts to examine that by studying a sample of Jordanian firms. Why Jordan?
Study on the Foreign Investment Preferential Policy Formulated by Host Country
Dr. Li-Hsing Ho, Chen-Kuo Lee and Yao-Tsung Tsai
The author makes use of the modern economic theories and methods to construct a theoretical framework for game analysis that centers on the creation and distribution of return on transnational corporations’ investment; thereby interprets the formulation and implementation of host country’s foreign investment policy and reinforces the existing theories and, on the other hand, analyzes the investment behavior of the transnational investors and the measures taken by the host country to attract foreign investment as well as the interaction between transnational investors and host countries; and thus creates a solid international investment theory. The authors have analyzed the static and dynamic games with complete information between transnational corporations and host country and found the optimal solutions under the highly abstract assumptions. The authors have also found that, when other conditions remain unchanged, the optimal level of host country’s foreign investment preferential policy is in direct proportion to its needs of foreign investment or the scale of capital gap, and is in inverse ratio to the level of its investment environment.
Virtual Teams in an Educational Setting: Investigation of Individual Cognitive Style in Satisfaction and Learning
Dr. Margaret F. Shipley, Dr. Madeline Johnson, Dr. Shohreh Hashemi, Dr. Rose Huber
ABSTRACT
The advances in internet-based learning have provided the means to further accommodate flexibility in student learning styles. In many online courses, students are assigned to virtual teams to work on course-related projects by interacting with virtual team members in cyberspace. Students with different personalities approach problem solving and project work differently. The difference in personalities, when not taken into consideration, can adversely impact group dynamics resulting in diminished learning and dissatisfaction with virtual teamwork. On the other hand, the same personality differences, when identified and utilized to construct virtual teams, can enhance group dynamics and increase learning and satisfaction with virtual teamwork. This study investigated the effects of cognitive learning style on student satisfaction and learning when the student is engaged in virtual team projects. The Myers-Briggs instrument that defines personality type preferences, based on Jungian theory was used to classify online student personality types. It was hypothesized that the gathering and evaluating style differences of learners would impact the level of satisfaction and degree of learning experienced by the online student in business courses. The paper proceeds as follows. The Introduction presents material relevant to the distance learning experience, satisfaction, and cognitive style. The Study defines the parameters of the work conducted. The Results and Discussion of these follows. Conclusions provide insight into the usage of the results and aspects of future research.
Dr. Jeffrey L. Decker and Dr. Terrance Jalbert
ABSTRACT
This paper explores the firm-level, state and federal characteristics that explain pollution emissions during 1988-1996. Differences in pollution approach between different types of firms and the states in which they operate provide an unique research setting to investigate how firms respond to differing levels of state environmental regulation, what effect a change in regime at the federal level has on firm pollution control, how firms with favorable environmental reputations compare to firms with unfavorable environmental reputations and what firm characteristics are related to environmental performance. The results indicate that government regulation influences where firms choose to emit. The results further indicate the firms that emit more of their emissions in pro-industry states have organizational slack available to meet the increase in federal environmental regulations. Moreover, firms with favorable environmental reputations did not reduce emissions significantly more than firms with unfavorable environmental reputations.
Intranets: Catalysts for Improved Organizational Communication
Matthew A. Gilbert, Woodbury University, Burbank, CA
Internal communication is the cornerstone of success for any organization. However, identifying, implementing and integrating an effective internal communication initiative is a significant challenge. With increasing frequency, organizations are creating intranets to improve their internal communication, increase productivity and reduce operating expenses. This paper defines the need for improved internal communication, outlines the history of intranets, explores their benefits, notes the risks and solutions, and offers secrets to which an organization can refer. According to the Professionals in Human Resources Association (2002), “Communication continues to be the primary weakness in most organizations,” (p. 3). It is therefore in the best interest of organizations to identify, implement and integrate systems that improve organizational communication. In a related recent study, Pruyn, Smidts and van Riel (2001) found organizations that communicate effectively are perceived more positively by their employees. This positive perception nurtures confident, involved and compliant employees. What’s more, “an open climate in which active participation is appreciated will increase feelings of being part of an in-group…may create feelings of self-worth…strongly affects self-esteem, commitment to a group and cooperative behavior,” (Pruyn, et al., 2001, p. 9). Acknowledging that employee attitudes affect an organization’s success, Pruyn et al. (2001) suggest that:
Delivery of a Systems Analysis and Design Course: A Comparative Study
Nicky Ellen and John West
Abstract
This paper discusses different classroom management approaches taken by two lecturers of an applied under-graduate Systems Analysis and Design course. The differences encompass two aspects of course delivery - managing a real-life information systems project and student group work. It presents the perceptions of students in the course as well as the views of other published academics and the two lecturers concerned. The School of Business at the Christchurch College of Education offers a Stage II Systems Analysis and Design course as part of its Bachelor of Business Management. Its focus is on education of students in the effective development of a Management Information System within a business and involves all the steps in development from initial identification of the problem, analysis of the system requirements, design and development, through to its implementation into the organisation. The methodology used, which mirrors these stages, is known as the Systems Development Life Cycle (SDLC), which is a traditional methodology recognised within the IT industry. We have both been involved with the delivery of this course over the past few years. We share a concern to keep the content of this course as applied and "real" as possible and to ensure students gain a good understanding of all steps in the process of effective information systems development. In the delivery of this course two course related management issues have been identified; the management of a real-life IS project and student group work. In two different offerings of this course, we used slightly different approaches, with positive and negative aspects experienced. This paper compares the two approaches with commentary from students on their perceptions.
A Comparison among Various Inventory Shortage Models on the Basis of Maximum Profit
Dr. Jinn-Tsair Teng and Dr. Cho-Kin Leung
For a finite planning horizon, there has been a considerable body of research papers in the Operations literature dealt with four different inventory shortage models for the last two decades. In this paper, we use maximizing profit as the objective to make an appropriate comparison among those four alternatives. The theoretical results reveal that Model 4 provides the highest profit only if the profit margin is sufficiently low. Otherwise, in general, Model 3 has the highest profit among them. For a finite planning horizon, there has been a considerable body of research papers in this journal dealt with four different inventory shortage models for the last two decades. These four models are depicted graphically in Figures 1-4. The traditional shortage model starts with an instant replenishment and ends with zero inventories, i.e., Model 1. It has been used in many previous studies, such as Dave 1, 2, Deb and Chaudhuri 3, Goswami and Chaudhuri 4, and Murdeshwar 5. Model 2 starts with an instant replenishment and ends with shortages, which can be seen in Harigar 6, Sachan 7, and Teng 8. In 1992, Goyal et al 9 proposed Model 3, in which the inventory level starts with shortages and ends with zero inventories. By using two numerical examples, they suggested that Model 3 outperforms Model 1 based on the minimum total relevant cost. The model then was appeared in Hariga 10, as well as in Hariga and Goyal 11. Lately, Teng et al 12 proposed the other model (i.e., Model 4), in which the inventory level starts and ends with shortages. We then analytically compare these four inventory models based on minimizing the total relevant cost, and concluded that Model 4 provides the least expensive policy. Recently, Goyal and Giri 13 assumed that the planning horizon is not finite, and added a partial ordering cost to Model 4 to make a valid comparison.
Debt and Taxes, and Tax Deferral
Dr. Terrance Jalbert and Dr. Jeffrey Decker
In this paper we examine the conventional wisdom that ten years of tax deferral is almost as good as exemption. Examining a corporation that invests in a single risk free bond we demonstrate that the conventional wisdom regarding tax deferral does not hold. We go on to demonstrate that deferral is not as good as exemption even when the deferral time is extended to 20 or 30 years. Based on these findings we argue that the equilibrium quantity of bonds outstanding in the economy will be higher than that suggested by Miller (1977). This work has important implications for personal and corporate investment decisions, capital structure analysis as well as empirical studies that rely on work of Miller (1977) to identify marginal tax rates. One of the seminal articles in finance is the 1977 Debt and Taxes article of Merton Miller. In his article, Miller examines the optimal capital structure of the firm. He concludes while there may be an optimal capital structure for the economy as a whole, there is not an optimal capital structure for any individual firm. He arrives at this conclusion, in part, by arguing that because of tax deferral, the effective personal tax rates on income from stocks is 0%. He makes his argument for a 0% effective personal tax rate in large part based on the argument that ten years of tax deferral is almost as good as exemption.
Human Resource Management Strategy in the Global Airline Industry: A Focus upon Organizational Development
Dr. Steven H. Appelbaum
The commercial airline is an extremely competitive, safety-sensitive, high technology service industry. People, employees and customers, not products and machines, must be the arena of an organization’s core competence. The implications are vast and pervasive affecting no less than the organization’s structure, strategy, culture, and numerous operational activities. Completed by 13 respondents (executives), this audit presents a series of select findings of a human resource management audit carried out in 2001-2 and contains extensive data on airlines from nine countries from around the globe. The conclusion drawn from these three bodies of work is that, with the exception of a handful of high performing airlines, the industry as a whole continues to function as per a traditional, top-down, highly divisional zed, industrial model of operations and governance. This model is manifestly inappropriate in such a highly knowledge-based service market as the airline industry. HRM expertise in general and organizational development in particular are required now, more than ever, to spearhead the strategic development of a customer-centric, learning-oriented workforce that is capable of adapting quickly to the strategic goals and change imperatives facing the airline industry.
A Discourse on Elements in Strategic Planning and Implementation: Implications for the Strategic Management Capability of Small- and Medium-Size Businesses
Herb de Vries and Jennifer Margaret, Christchurch College of Education, Christchurch, New Zealand
ABSTRACT
Small- and medium size business (SMEs) founders tend to be entrepreneurs rather than managers by nature. As such they are usually the best people to start a business but often the worst at managing it. Literature indicates a clear linkage between organisational performance, owner/managers (o/ms) perceived need for market-led strategic planning, and management practices adopted. Research within the New Zealand furniture manufacturing industry (NZFMI) has revealed appreciable differences between o/ms managerial practices and considerable differences in the performance of individual organisations. This paper reviews data representing elements in the strategic planning and implementation by NZFMI o/ms and discusses implications of and recommendations for their development of strategic management capability. Perry and Pendleton (1990) contend that SME o/ms must not only know their trade but also exhibit business management skills. However, as Hamilton and English (1997) point out, SME founders tend towards natural entrepreneurs rather than skilled managers. Gerber (1995) suggests that SME o/ms often engage in work within their own business that does not suit them, and that they operate their businesses according to what they ‘want’ as opposed to what their businesses ‘need’. This criticism has particular relevance when it is realised that our continually changing trading environment requires SMEs to respond to market needs rather than o/ms’ ‘whims’.
Improving Internal Efficiency, External Effectiveness and Capacity Utilization of a Service Company
Katri Ojasalo, Ph.D., Laurea Polytechnic, Espoo, Finland
ABSTRACT
In the traditional output/input -context five different ways of raising productivity of services exist (e.g. Jones 1988; Mill 1989): to decrease inputs and hold output constant, to decrease inputs and increase output, to decrease inputs and decrease output proportionately less, to hold inputs constant and increase output, to increase inputs and increase output proportionately more. This conceptual study has a different approach to this subject, though it is based mostly on conventional theories of raising service productivity. In other words, the conventional theories are viewed from a different angle. It is suggested that there are three main factors of service productivity, namely internal efficiency, external effectiveness, and capacity utilization. Respectively, it is proposed that it is more meaningful to focus on these three factors when aiming to raise service productivity rather than only discussing the possibilities to change the amounts of inputs and/or outputs. In fact, in a service company it is, for example, often impossible to decrease inputs and at the same time hold the output constant. Thus, it is concluded that service productivity cannot be improved only by minimizing the use of inputs and/or maximizing the amount of outputs, such as the traditional way of understanding productivity assumes. Because services are usually not to a large extent produced in a closed system (Ojasalo 1999), which is the basic assumption included in the traditional definition of productivity (see Sink 1985), it is necessary to treat inputs to the service production process differently than inputs are traditionally treated. Due to the characteristics of services, it is not enough to just analyze those inputs actually used in the production (such as the traditional definition of productivity does), but instead an efficiency indicator has to be included in the service productivity concept. In other words, the nature of provider’s inputs should be investigated in order to see whether these inputs are used efficiently. It is important to know which input costs could be cut and which not when aiming to raise productivity. Thus, an assessment of internal efficiency should be an essential part when analyzing productivity of a service company
Using Market Information in Generating and Selecting Ideas in New Product Development – Results from an Empirical Study on Innovations Management in the Software Business
Jukka Ojasalo, Ph.D., Laurea Polytechnic, Espoo, Finland
ABSTRACT
This article reports on an empirical study on the use of market information in generating and selecting ideas in new product development in the software business. The existing literature includes very little empirical knowledge on this issue. This study addresses this knowledge gap and the following questions: What market information is important in the idea generation phase?, Which methods and practices are used for gathering market information?, How are the generated ideas for a new product assessed and how is the alternative to be realized selected?, What are the difficulties and challenges in the use of market information?, Who has an important role in the use of market information? The literature includes several references to the use of market information in the context of new product development and innovations management. The earlier literature frequently emphasizes the importance of using market information in new product development. Market information reduces uncertainties and risks, reveals needs and preferences of customers, predicts future trends in the marketplace, and, thus, increases the success of the new products. (Cooper, 1975, 1979, 1990, 1994; Rubinstein et al., 1976; Booz, Hamilton, and Allen, 1982; Parkinson, 1982; Voss, 1985a; Foxall and Johnston, 1987; Von Hippel, 1988; Johne and Snelson, 1989; Cooper and Kleinschmidt, 1991; Simonson, 1993; Johne, 1994; Wind and Mahajan, 1997; Kotler, 1998; Hart, Tzokas, and Saren, 1999). However, there are also opposite views. According to Trott (2001), market research and market information can sometimes be useful and sometimes unhelpful and hinder new product development. Nevertheless, most of the literature sees the use of market information as being useful in new product development. When it concerns knowledge on the use of market information in new product development in the software business, very few empirical studies can be found.
A Credit Scoring Model for Commercial Loans by Using Neuro Fuzzy
Dr. Chin-Shien Lin, Dr. Haider A. Khan, and Ching Ho Kuo
The purpose of this paper is to propose a new screening model for bank commercial loans by using the neuro fuzzy technique. This paper compares the relative predictability of default loan among three methods of prediction --- discriminant analysis, logistic regression, and neuro fuzzy --- based on the real data obtained from one of the banks in Taiwan. The empirical results show that in addition to its better screening ability, the neuro fuzzy model is superior in explaining the relationship among the variables as well. With further modifications, this model could be used by bank regulatory agencies for loan examination and by bank loan officers for loan review. The problem of how to effectively manage the default risk of commercial loans has been one of the main topics in accounting and finance for years. This is true for both academic and practical purposes. Looking at practical aspects, the evaluation process for commercial loan can be divided roughly into two stages. The first is the screening part before the loan is approved. We call it the credit scoring model. Each applicant is assigned a credit score after being evaluated that is based on some prespecified criteria. Whether a case is accepted or not is based on the score. The second stage is the continuous monitoring after the loan has been approved. We call it the bankruptcy prediction problem. After the commercial loan has been approved, what the bank cares about is whether the company will go bankrupt or not. Therefore, a warning system to predict the bankruptcy is needed.
Bank Selection Decision Among Malay and Chinese Consumers
Che Aniza Binti Che Wel, MSc. and Sallehuddin Mohd. Noor, M.B.A.,
Universiti Kebangsaan Malaysia, Malaysia
The authors discuss the factors influencing bank selection decision in Malaysia where family and social relationship are still highly valued. The study however fails to prove social influences to be the most critical factors in determining the bank selection decision. Bank personnel influences were found to be the most critical factors in bank selection decision for both Malay and Chinese. The study also discovered the significance differences in the bank selection criteria (services offered) among the Malay and Chinese.The study was undertaken to determine the factors considered important by customers in selecting their bank. Specifically, the study was designed to determine: The bank selection criteria used by Malay and Chinese / The differences between Malay and Chinese consumers relating to the bank selection criteria. It is hoped that the finding presented in this article will provide some useful and pertinent information for the commercial bank managers in formulating their marketing strategies targeted at different ethic group in Malaysia. Malaysian banking system has experienced an important development in March 1993, where three major commercial banks introduced the banking services based on the Islamic Principles. Although there is no evidence that the Islamic banking is more favorable than conventional banking, the management of the commercial banks must also acknowledge that Islamic banking principles are not the only criteria considered in bank selection. Commercial banks can no longer depends on the Malays (majority Malays are Muslims) as their source of deposits or as their fund users. They have to expend their customers’ base by including other ethnic groups especially the Chinese as potential customers.
Dr. William E Tracey, Jr., Central Connecticut State University, New Britain, CT
INTRODUCTION
The decade of the 1980’s brought awareness to American colleges and Universities that American students needed to be prepared to work and live in an increasingly global world. Rationales for internationalization efforts were proposed by many higher education professional associations including the American Association of State Colleges and Universities (Leinwand, 1983), the American Council on Education (Pickert and Turlington, 1992) and the Association of American Colleges (Johnson and Edelstein, 1993). Typical institutional responses to the calls for internationalization have been to internationalize the faculty, create international degree programs, develop required or elective courses with an international focus, recruit international students and provide international experiences for students (Knight & Dewitt, 1999). Central Connecticut State University and the CCSU School of Business answered the call for internationalization. This paper will describe a philosophy and teaching methods to create and provide a field based learning experience for business students that embodies the principles and practices of a learning organization.
Organizational Capabilities, Problem-Solving and Product Innovation Performance: A Conceptual Model
Yuan MaMartinar, Ph.D. Candidate and Kwaku Atuahene-Gima, City University of Hong Kong, Hong Kong
ABSTRACT
It is widely accepted that innovation is of vital importance to the establishment and the sustaining of a firm amidst rapidly changing business environments. Based on the resource-based and dynamic capability theory and contingent theory, this article integrates the extant research into a conceptual that offers researchable propositions relating to the antecedents, process and outcomes of innovation. Specifically, we regard that new product development as an activity of a firm to integrate and coordinate complex capabilities to exploit opportunities and/or neutralize threats in a firm’s environment. We elaborate the effects of the environment forces by examining on the moderating effects of the environmental uncertainties. New Product Development (NPD) represents the focal point of competition for many firms. Although a great many scholars has conducted research on NPD during the past two decades, this research is varied and vibrant, large and fragmented (Brown and Eisenhardt 1995). Brown and Eisenhardt (1995) organized the NPD literature into three streams. However, few studies have integrated these studies to shed light on their linkages and effect on innovation performance. Further, few studies have examined how the environment affects the relationships. The purpose of this article is to review and integrate the three perspectives in order to formulate a conceptual model of innovation, which provides a more comprehensive understanding of NPD antecedents, process`s, and outcomes. We draw on resource-based and dynamic theory and contingent theory to explain the nature of the new product innovation. Finally, implications of the model for future research are discussed.
Managerial Social Responsibility in Transition Economies – The Croatian Case
Zelimir Dulcic, Duro Benic and Ivan Pavic
ABSTRACT
The absence of enterpreneurs who could forcefully spur economic activity and the low present level of management know-how are the sore points for all transitional economies. On the other hand, social responsibility is one of the fundamental demands of the modern management. An analyse of the present situation of strategic managers’ social responsibility in transition enterprises has been given on the basis of the empirical research on the sample of 40 large Croatian enterprises. Also in this paper, on the basis of the research results, a model for the effective implementation of the social responsibility concept within the strategic management has been created. The absence of enterpreneurs who could forcefully spur economic activity and the low present level of management know-how are the sore points for all transitional economies. The role of government is of special significance in relation to creating the best environment possible for encouragement of an enterpreneurial spirit and the stimulation of enterpreneurship. As another, government must take prompt action for additional management training. Long-term action should be initiated and co-ordinated by the Ministry of Science and Technology (in the case of Croatia) through universities and institutes. Raising the present levels of management know-how, but also raising the present levels of employee knowledge is the cheapest and most efficient way of taking a major step towards developed economies (Benic, 1999).
Leveraging Technology to Teach Technology in Large Courses
Bill Littlefield II, M.P.A. and Frank Akaiwa, Indiana University, Bloomington, IN
ABSTRACT
With a continual growth the number of students stating a preference of studying business at Indiana University, a significant increase in demand is being place upon the introductory computing course. In an attempt to maintain consistency in instruction and evaluation of students, the full-time instructional staff members have developed a comprehensive web-based set of tools to administer a course that teaches over 3000 students each year. The web site includes: syllabus, weekly text and web readings, lab materials, project assignments, an online project submission system, automated grading of student projects, course wide grade posting area. For the instructors, the website has individual web pages and links to teaching and training materials. The web-based system runs on UNIX servers with pages generated in PHP, using a MySQL backend database. In conjunction with other components of the course, these automated systems reduce the burden on instructors, especially first-time instructors. The Kelley School of Business at Indiana University requires all undergraduate students to demonstrate proficiency in working with spreadsheet and database applications software, and to display a basic understanding of the importance of information systems technology in business. Most students accomplish this by successfully completing the introductory technology foundation course for students entering the School of Business. Since this course is often the student’s first contact with the Kelley School, it is important for the experience to be consistent for all students. It is also important from an admissions perspective that student grades be consistent and not inflated both across sections for a semester and between semesters. A significant increase in student enrollment has been keenly felt.
Product Development and Target Costing at Japanese Companies in Overseas Countries: Result From Large Sample Survey
Dr. Takayuki Asada and Dr. Masaru Nakagawa
ABSTRACT
This research conducts product development and target costing at Japanese companies in overseas countries through large sample survey. In previous researches, they deployed case study methods. But we use mail questionnaire for testing our hypothesis. Our hypothesis with localization is partially supported. We will research that how Japanese companies adopted their local environment or applied Japanese style management to local companies. In Japanese companies at overseas countries, decision of product development is less localized. This is the reason, which many Japanese companies in foreign countries did not have whole function, product development through manufacturing and sales, when they started to operate. Therefore, the companies started to operate just for assembling parts, which they imported from Japan, as a “screw driver plant”. Then, they expand to purchase more local parts from their local countries. As they purchase more local parts, they are delegated the decision from Japanese headquarters. We recognize that it is reasonable localization of product development will be delayed. But in the ideal situation, local company should have the function of product development for the purpose of developing the product, which will fit their local environment. Especially, in the region Europe and North America, where the market is mature, it is very important that local company has the function of product development.
Aftermarket Performance for Initial Public Offerings in Japan, Hong Kong, and Singapore
Dr. Shin-Rong Shiah-Hou, Yuan Ze University, Taiwan
ABSTRACT
This paper attempts to document the long-run underperformance of three countries in the Asia, including in Japan, Hong Kong, and Singapore. We find the degree of long-run underperformance varies with countries. In summary, the long-run underperformance for IPOs in Singapore is not as general a phenomenon as the long-run underperformance for IPOs in Japan that has an obvious pattern. There are a numerous academic and empirical literatures that investigate the anomalies of initial public offerings, which topics include in hot issue market, underpricing , and long-run underperformance. The price performance of IPOs after going public attracted the most interest from academics. Why do people pay attention this topic? From investors' viewpoint, if there is actually price patterns, they can make money by active trading strategies. From the view of the efficiency of the IPO market, nonzero aftermarket performance seems to suspect the information efficiency. From issuers’ point, if the hot issue periods are correlated with poor long-run performance, this would express that the issuers can take advantage of “window of opportunity” through being correctly timing new issues. On the other hand, the external equity capital cost of firms going public includes the returns that investors earn in the aftermarket. And the cost of external equity capital is lowered for these firms that have lower return in the aftermarket. This paper attempts to document the long-run underperformance of three countries in the Asia, including in Japan, Hong Kong, and Singapore. Because the following theory and findings about IPOs result from U.S., my primary objective is to establish whether IPOs in other countries is similar to those findings in U.S., especially in Asia. And International comparisons have some advantages over a single-country analysis.
The Best Mode of Competitive Advantage in Accordance with Company’s Size of Scale: Case Study Based on the Taiwanese Companies Invested in China
Dr. Ko Pen –Fa and Dr. Lee Yeong-Bin, Da-Yeh University, Taiwan, R.O.C
Dr. Lee Chen-Kuo, Chung-Hua University, Taiwan, R.O.C
ABSTRACT
Facing whimsical global environment, opportunities are usually transitory and subtle threats are always here and there. For the most of Taiwanese companies, they are almost small and medium size, so the understanding of external factors such as the structure of industry, its position in an industry and world market situation is very important. Moreover, the most important things for the Taiwanese companies to know are the internal factors, which are including the core competitive capabilities and distinctive competences. To discuss the connection of competitive advantage with a firm’s size and stages of life cycle, we need to know that the competitive advantage is mostly from U.S.A. However, they are not totally suitable for the Taiwanese companies to use, it means any Taiwanese company can not just duplicate the management without considering its business status and style because the way of thinking, culture, business behavior are different, and these actually affect the business result very much. Therefore, to keep growing continuously and using different competitive advantage to secure a better competitive position, we need to realize what is the best timing for the Taiwanese companies to build up the right competitive advantage in short time effectively according to their current stages of life and size of scale. With the arrival of 1990’s, when N.T. dollar was appreciating sharply, the traditional industry in Taiwan was facing costs up and becoming less competition in the world market. The other hand, due to the Mainland China and Vietnam have opened the door to the world, this new changing has been affecting the world economic greatly. Now China is now the 6th biggest economic party, and it is predicted to be 2nd biggest party in 2010. Because of this, the Mainland China is attracting a lot of investors from the countries as Japan, Taiwan, Singapore, U.S.A. and Europe etc.
Corporate Distress in China --Discriminant Analysis of Listed Companies
Yan Xue and Jean J. Chen, University of Surrey, Guildford, Surrey, UK
ABSTRACT
Credit risk measurement is one of the most challenging tasks in the risk management fields. This study develops a six variable industry relative distress classification model and presents accordingly the estimated probabilities of distress classification using data of 196 companies listed on the Shanghai and Shenzhen Stock Exchange. A number of practical and theoretical applications of the model include credit evaluation, internal risk control and capital market investment guidelines. It is hoped that the Z score model can provide guidance for establishing a practical risk assessment method in China, especially in the banking sector. Credit risk management is one of the most challenging tasks in the risk management fields in the 21st century. It is also the highest and the most important risk faced by the Chinese commercial banks. Considering the structural changes of the international banking industry, the implementation of the New Basel Accord at the end of year 2006 and the rapid economic & financial development in China, we believe in that it is urgent for Chinese commercial banks to build a credit risk management system with its own intellectual property right. In China, commercial banks whose operation affects the whole financial system safety have always played a decisive role in Chinese economic and social developments.
Dr. Karen Coale Tracey, Central Connecticut State University, New Britain, Connecticut
ABSTRACT
Usage of Extensible MarkUp Language (XML) extends beyond the Web, facilitating companies’ access to their own legacy data. Companies are now able to integrate legacy data quickly and cheaply into newer programs merely by assigning each piece of data an XML name. XML has strategic impacts as well for the companies. Companies can now give their suppliers and customers access to their own data without high application development costs, thus better integrating their operations. Every type of business transactions uses XML in one way or another. XML is the foundation for web services, e-business and e-content - industry forecasts indicate that by 2003, XML will account for 40% to 60% of all Internet traffic. Yet today's network infrastructure is not capable of recognizing, accelerating, securing or prioritizing XML traffic (DataPower, 2001). Because of the extensive growth in usage of XML it is foreseen that there would be high network traffic. The network traffic in-turn would slow down the transaction process in a distributed environment. Increasing network bandwidth through hardware means, which is an expensive solution, can minimize the problem.
Chinese Consumer Behavior: A Cultural Framework and Implications
Dr. Wen Gong, Rochester Institute of Technology, Rochester, NY
INTRODUCTION
The need for greater cross-cultural understanding of consumer behavior has been proclaimed by both international marketing practitioners and researchers as essential for improving international marketing efforts (Briley et al., 2000; Hampton and Gent, 1984; Leach and Liu, 1998; McCort and Malhotra, 1993). Research has shown that differences in value systems across various cultures appear to be associated with major differences in consumers’ behavior (Grunert and Scherhorn, 1990; Lowe and Corkindale, 1998; McCracken, 1989; Tansuhaj et al., 1991). As a result of the market reforms, and because of the sheer market size it presents, China has increasingly become a coveted market. Joining WTO will make China ever more interconnected to the global economic system. These factors warrant an increase in research attention to this market. What adds urgency to study is a solid understanding of the Chinese consumers culturally. No doubt, this will provide international marketers with valuable information for formulating marketing strategies as well as creating advocacy messages and corrective responses. Additionally, Chinese consumer behavior may render tremendous implications for the Greater China and other Eastern societies such as Singapore and Malaysia where Confucian cultural values still have a profound influence regardless of economic achievement.
An Application of Fisher Separation Theorem to the Transfer of Technology
Dr. Yung-Ching Ho, Tsui-Hsu Tsai (Tracy) and Shu -Chin Huang, National Chung Cheng University, Tawain
Dr. Arthur Lin, National Taipei University, Tawain
ABSTRACT
This paper is a cross – section research that combines the Fisher Separation Theorem (F.S.T.) and Technology Transfer (T.T.) which originates from the finance and marketing area. The similarities of T.T. & F.S.T. are as follows: 1.Both side issues; 2.Intertemporal choice; 3.Two indifferent curves (two preference); 4.Same exchange price; 5.Uitility raise (after exchange). With regards to the above five similarities, we find it fit to use the F.S.T. model to Technology Transfer. This research fulfills four managerial topic: 1.Strategic decisions are different from technology supplier and demander; 2.Strategic decisions are different from R&D department and managerial department; 3.Cost considerations are different of the technology supplier & demander; 4.Both sides face different risk, for example technology suppliers face a research risk and a technology risk; technology demander face a return risk, a market risk and a managerial risk. This paper seeks not only to point out the similarities and differences between F.S.T. and T.T. or to find a model to fit in another situation, but also to discuss the time-lag effect and distinguish the different parties: Application of the Fisher Separation Theorem to the Transfer of Technology is a completely new expression appearing in the literature over the past 15 years. The original study consisted of research in the transfer of biotechnology, to discover similarities with the Fisher Separation Theorem, which is usually used within financial markets to describe savers and borrowers situations. With regard to the similarities between these two; both have a basic two-part formulation, two utilities (different preferences), the same exchange price, and two intertemporal choices.
The Relation Between the SME Business Environment, Technological Strategy and Technology Development
Dr. Yung-Ching Ho, Tsui-Hsu Tsai (Tracy), National Chung Cheng University, Tawain
Dr. Arthur Lin, National Taipei University, Tawain
ABSTRACT
In the turbulent environments that firms face today, they need a product innovation and technology development strategy to improve their performance. This study examines the role of technology development strategy in the relationship between the environment and performance. Data comes from 64 research and development managers in small and medium enterprises (SMEs) in Taiwan. The four major findings are as follow: (1) SMEs would like to develop their new technology for customers when the environment is uncertain and resources are rare; (2) there is no relationship between environment uncertainty and technology performance; (3) SMEs have more high technology than other counterparts and establish formal R&D relationship departments, which leads to superior technology performance; (4) the relationship between environment uncertainty and technology development strategy leads to superior technology performance. Knowledge-based global competition has become the mainstream of the 21st century economy; knowledge holds the key to competitiveness for future industries and nations. Environment resources, basic infrastructure, specialized technology and manufacturing know-how are essential for creating a knowledge-based environment. Jones & Tang (2000) [35] believe that introducing new products and improving production techniques will create a competitive advantage. Cooper (2000) [25] believes that in the constantly changing times that we live in today, with faster advances in technology, ever-changing markets and consumer tastes, there is an increasing emphasis of competition on speed. And with global competition bringing in new opportunities along with more competitors, businesses are in desperate need of new products and technological strategies.
Employee Expectations and Motivation: An Application from the “Learned Helplessness” Paradigm
Steven B. Schepman, Ph.D., and f. Lynn Richmond, Ph. D., Central Washington University/Ellensburg and Lynnwood, WA
ABSTRACT
The effects of a perception of “helplessness” on a person’s sense of “self-efficacy” and situational control were analyzed in the context of the first of the three key relationships in the process motivation theory of Victor Vroom. Perceptions of levels of helplessness were manipulated in an experimental design using random, non-contingent feedback and failure on an initial task. Subjects’ level of perceived ability and control on a second task were assessed prior to beginning the subsequent task. Statistically significant differences were found between the levels of helplessness groups and the control group on perceptions of control as well as perceived ability to accomplish the second task (“self-efficacy”). The implications of such lowered perceptions of control and/or “self-efficacy” by members of organizations are discussed. The “learned helplessness” concept of individual psychology essentially holds that if the outcomes or “feedback” people receive in response to their actions appear to bear no predictable relationship to the actions which initiated them the initiators, in time, will come to believe that they are unable to control the outcomes associated with their own behaviors. Mikulincer (1994) specified two distinct reactions which can be associated with expectations of future control or lack of control. The one of greatest relevance to this paper he termed “personal helplessness” which can occur when people believe that they may lack the necessary skills or abilities to perform a particular task. In addition, feelings of personal helplessness may develop as a result of exposure to uncontrollable outcomes. Both instances can lead to a reduction in a person’s feelings of “self-efficacy” which Bandura (1977) defined as a person's conviction that he or she is (or is not) capable of successfully performing a behavior in order to produce certain outcomes.
Ad Agency Personnel Availability: Globally and by Cultural Context
Alan T. Shao, Ph.D., University of North Carolina at Charlotte, Charlotte, NC
Monica L. Perry, Ph.D., California State University, Fullerton, Fullerton, CA
Yeqing Bao, Ph.D., University of Alabama in Huntsville, Huntsville, AL
ABSTRACT
Responses from 134 managing directors of foreign subsidiaries of U.S.–based advertising agencies suggest that personnel shortages occur in 18 out of 23 skill areas. Among them, cultural advisors, direct marketing specialists, and database developers are of major concern. More specifically, talent deficits are more of a problem in subsidiaries operating in high-context cultures than low-context cultures. Implications are drawn for international advertising education and students seeking employment opportunities in the international advertising industry. The 1980’s advertising agency drive into international markets was augmented in the 1990s by global expansion as the North American Free Trade Agreement and trading blocs around the world boomed, the Euro was established, and global and multi-market branding became commonplace. From these changes, the advertising industry thrived and worldwide expenditures exceeded $332 billion in 2000. In 2001, U.S. advertising expenditures alone totaled $253 billion (Marketing News 2002). Further, non-North American advertising expenditures grew to over 55 percent of worldwide media advertising (Charterhouse Securities 2001). As the advertising industry has globalized, the challenge of equipping overseas affiliates with appropriate personnel has also grown. Consider, for example, a recruitment blitz for talented advertising personnel in Canada. Agencies there have begun strongly encouraging advertising students to become interns in agencies to improve their advertising knowledge and capabilities (Sutter 2001). In Great Britain, rumblings are being heard by clients about the inadequacies of advertising personnel to adapt to the digital world (Vinton 2000). And in the U.S., there is a talent shortage that resulted from losing so many executives in the last recession and supplying talent to management consultants and dot-coms.
Capital Mobility and Financial Integration in Emerging Markets
Dr. Bala Batavia, DePaul University, Chicago, IL
Dr. Cheick Wague, Sodertorn University College, Stockholm
Dr. P. Nandakumar, Indian Institute of Management, Calicut, India
ABSTRACT
The concept, ‘financial openness’ is differentiated from that of financial integration with a survey of literature, and with reference to country experiences. A ranking is made of different developed and developing countries in terms of various definitions of financial integration, including the Feldstein-Horioka Coefficient. It is seen that the ranking is not – by any means – identical for different measures of financial integration. Evidently, mere opening up to capital flows will not bring about financial integration, which will be reflected in interest rate premiums. Tests are conducted for the dependence of the degree of integration on country-specific characteristics such as the degree of decentralization, credit market restrictions, degree of indebtness, size etc.
A Comparison of Economic Reforms and Instability Effects in Three Large Emerging Markets
Dr. P. Nandakumar, Indian Insitute of Management, Calicut, Kerala, India
Dr. Cheick Wague, Sodertorn University College, Stockholm
ABSTRACT
An additive decomposition analysis is made of the external sector developments in three countries, China, India and Korea, for the period 1974-2000, for the purpose of distinguishing between the results of policies and external influences. The growth in exports is disaggregated into that due to additional primary exports and that arising from diversification into more value-added manufactures. The effects on imports of constraining primary imports while opening up to valuable capital goods imports is also weeded out. The terms of trade effect on the current account, as well as the effects of increases in debt and in interest on debt, are also separated out. In general, specific reform policies such as export diversification have succeeded more in Korea and – to a lesser extent – in China, while the Indian experience has been only positive in the recent years. Also, external forces have had their say relatively more in India. However, the feedback from financial instbaility to the real economy is noted only in Korea, as borne out by granger causality tests.
Do Policy Reforms Improve Efficiency and Benefit the Poor in Developing Countries?: Evidence from Nepal
Dr. Kishor Sharma, Charles Sturt University, Australia
ABSTRACT
Using data from the Nepalese manufacturing sector this paper examines whether the policy reforms improve efficiency (productivity) and benefit the poor in least developed countries (LDCs) with week institutions and poor physical infrastructure. Results indicate some improvements in all indicators of productivity following policy reforms, but the Nepalese manufacturing remains fragile due to rigidity in factor market. Our analysis suggests that despite an increase in labour productivity, increased proportion of manufacturing value added has not been passed on to workers, indicating that the poor have not benefited much from the reform process. Total factor productivity (TFP) continued to decline even after the reforms but at a lower rate. There is an urgent need to introduce further reforms in labour market and infrastructure sector. The econometric evidence suggests higher productivity growth in those industries, which are able to produce on a large scale, have higher protection and semi-skilled work force, but lower capital intensity and no public sector domination.
Chinese Consumer Protection in the Era of Electronic Commerce
Dr. Mary Ip, The University of Sydney, School of Business, Australia
ABSTRACT
This paper is to examine the future development of consumer legal protection in China in view of the growing on-line shopping. Three main approaches for defending consumers’ rights within the forum of international e-commerce are considered. And comments are made on the applicability of these approaches to the diverse consumer’s situation in China. The rapid development in information technology has bridged the gap and improved links between people of the world. A consequence of such wide-reaching contact amongst people is the boost in international trade. Although the proliferation of international business is also due to liberalisation of the economy and the removal of trade barriers between countries, it is indisputable that the availability of the Internet has been the catalyst. Nowadays, people are physically located in different geographical areas, but in fact are living in one “global village”.
Professionalism as Reputation Capital: Building Strategic Advantage
Dr. Neil E. Béchervaise, Dr. Kevin M. McKenzie and Richard Beal, Australian Graduate School of Entrepreneurship, Australia
ABSTRACT
Organisations typically leverage professionalism to promote reputational capital. Reporting on the origins, role and implications of professionalism as a strategic driver, this paper describes a recent Australian study into aspects of a trait driven ideology supported through individual relationships. Rather than being tangible and teachable, the paper argues that professionalism may be passed between generations of workers from childhood and independently of organisational demand or culture. The paper emphasizes the impact that an individual’s pursuit of professionalism has upon the reputation capital, and ultimately on the strategic advantage, of an organisation. It is 2003. Professionalism is under fire. We have become involved in a continuing global war against terror. National league football begins again in Australia this week. The axis of evil has become a pronominal epithet for describing everyone who disagrees with us. A leading Australian daily newspaper features the dismissal of the musical director of the National opera company! A woman of international repute, the artistic leader was lured to Australia from Europe under contract to lead the opera company toward a new vision.
Dr. Kevin M. McKenzie and Dr. Neil E. Béchervaise, Australian Graduate School of Entrepreneurship, Australia
ABSTRACT
In a global economy increasingly focused on knowledge and services, the long-term strategic advantage of the professional service firm is directly related to the reputation created and maintained by individual staff. Based upon case study findings from a consulting company, these individual reputations were found to directly impact the effectiveness of knowledge exchange and the strength of individual relationships held with their direct clients. In an expanding company, the firm’s reputation grew with the collective individual reputations of consultants. However, reputational and relationship capital were shown to co-exist in a fragile interdependence, demanding clear understanding and careful management. Reputations matter in business; they are crucial to strategising competitive enterprise. Functionally, they are acknowledged as prerequisites for extending existing business whilst facilitating the conversion of new opportunities. In professional service organisations, particularly consulting firms, reputations are seen as critical to maintaining a viable, ongoing and competitive position (Petrick, Scherer, et al, 1999).
Dr. Allen Appell and Dr. Richard Jenner, San Francisco State University, Kentfield, CA
Small Firm Management in Electronic Commerce Age: Conceptual Reflection
Dr. Adli Abouzeedan, Amana Commercial Consultants, Partille, Sweden
Dr. Michael Busler, University of Delaware, Newark, DE
ABSTRACT
The Electronic Commerce (EC) or e-commerce is heading to be the most dominant form of trade in the future. The EC phenomenon is reshaping the way Smaller and Medium-size Enterprises (SMEs) would be managed in the coming years. In this paper, we looked at the management problems of SMEs in relation to their e-commerce ambitions and reflected on that. Based on that conceptual reflection, we proposed management models of three types: Localized, Networking and Internetisation, proceeding from the past to the current time and further to the future. In the process we also looked at EC definitions, components and structures. In this review we will be looking at one of the most promising form of future commerce, which is Electronic Commerce (EC). According to Globerman, Roehl and Standifird (2001) again, the Internet has been likened in its ability to change the nature and operation of market.
Financing Small and Medium-Size Enterprises (SMEs): Analyzing the North American Case
Dr. Adli Abouzeedan, Amana Commercial Consultants, Partille, Sweden
Dr. Michael Busler, University of Delaware, Newark, DE
ABSTRACT