The Business Review, Cambridge

Vol. 1 * Number 1 * Summer. 2003

The Library of Congress, Washington, DC   *   ISSN 1553 - 5827 

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The Role of International Accounting Standards in Developing Economies: The Case of Jordan

 Mufeed Rawashdeh, Ph.D.



 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



 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.


An Empirical Analysis of Where Firms Choose to Emit and Corresponding Firm Performance

 Dr. Jeffrey L. Decker and Dr. Terrance Jalbert



 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



 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




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




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



 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.


Creating a Learning Organization: The International Field Experience Business Course

 Dr. William E Tracey, Jr., Central Connecticut State University, New Britain, CT



 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




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




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



 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



 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




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



 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



 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.


Integrating Knowledge Based XML Transport into Database Statistical Applications

 Dr. Karen Coale Tracey, Central Connecticut State University, New Britain, Connecticut



 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



 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



 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



 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



 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



 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



 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



 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



 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



 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”. 


Developing Conceptualizations of Europeanization: A Study of Financial Services

Dr. Kerry E. Howell, Research Unit for Institutional Governance, Anglia Polytechnic University, Chelmsford, U.K.

 In its most explicit form Europeanization is conceptualized as the process of downloading European Union (EU) directives, regulations and institutional structures to the domestic level. However, this conceptualization of Europeanization has been extended in the literature in terms of up-loading to the EU, shared beliefs, informal and formal rules, discourse, identities and vertical and horizontal policy transfer. This paper undertakes a study of banking, investment and insurance directives to analyse the impact of Europeanization on the UK financial services sector.This paper is concerned with issues relating to theoretical and empirical discussions regarding the evolutionary nature of the European Union (EU) It develops a conceptualization of Europeanization in the context of financial services regulation. In its most explicit form Europeanization is conceptualized as the process of downloading European Union (EU) directives, regulations and institutional structures to the domestic level. However, this conceptualization of Europeanization has been extended in the literature in terms of up-loading to the EU, shared beliefs, informal and formal rules, discourse, identities and vertical and horizontal policy transfer.


Professionalism as Reputation Capital: Building Strategic Advantage

Dr. Neil E. Béchervaise, Dr. Kevin M. McKenzie and Richard Beal, Australian Graduate School of Entrepreneurship, Australia



 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.


Reputational Capital in Consulting Communities of Practice

 Dr. Kevin M. McKenzie and Dr. Neil E. Béchervaise, Australian Graduate School of Entrepreneurship, Australia



 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). 


The Rise and Fall of China’s Free Market Society

Dr. Allen Appell and Dr. Richard Jenner, San Francisco State University, Kentfield, CA



 It was during the free market Sung dynasty 960-1279 that China experienced the greatest period of invention, economic growth and prosperity that it has not had before or since in its history.  A relatively non-statist free market society, characterized by private real and personal property, rule of law, representative government, and encouragement of commerce, resulted in the most prosperous period in China’s long history. Numerous inventions were made and/or exploited.  All other periods tended to be marked by government intervention, high taxation, central planning, and economic stagnation during which creativity was stifled.  Present-day China does not have to adopt the “Western” way of doing things to improve its economy, but need only to look to the free market Sung dynasty period in its own history for a blueprint of its future development.  China’s history, with the notable exception of the Sung dynasty, is characterized by a series of statist authoritarian dictatorships that rose and fell, bringing about their own demise through oppressive governmental and economic policies.  China presents the paradox of a major culture in the world that contributed so many significant innovations in numerous fields, but also failed to capitalize on them. 


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



 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



 Small and Medium-size Enterprises (SMEs) are the seeds for a vital entrepreneurial economy. Financing these firms is an issue of great importance. In this paper, we looked at financing methods for SMEs, with emphasis on USA and Canada. We also analyzed the impact of these financing methods on firm survivability using the Survival Index Value (SIVâ) model. The SIV model is a new firm performance evaluation method introduced, recently, by Dr. Adli Abouzeedan.  According to US Business Administration (1996, p. 2), the U.S. economy passed a milestone in 1979, i.e. the transition from a declining industrial/manufacturing economy to emerging entrepreneurial/innovation driven economy. As pointed by US Business Administration (1996, p. 2), the “atomization” of America that began in the seventies is now economic fact in life. American business “birthrates” were, in 1996, as much as three times higher than in other industrial nations. Referring to US Business Administration (1996, p. 3), most of the new jobs attributed to small firms are created by entrepreneurial ventures that start small and grow fast. For entrepreneurs, raising, patiently, high risk equity financing is the critical capital formation challenge.


The Relationship between the Dow Jones Eurostoxx50 Index and Firm Level Volatility

Dr. Kevin Daly, University of Western Sydney, Campbelltown, Australia



 This paper presents a study of asset price volatility, correlation trends and market risk-premia. Recent evidence (Campbell 2001) shows an increase in firm-level volatility and a decline of the correlation among stock returns in the US. We find that, in relation to the Euro-Area stock markets, both aggregate firm-level volatility and average stock market correlation are trended up-wards.  We estimate a linear model of the market risk-return relationship nested in an EGARCH(1,1)-M model for conditional second moments. We then show that traditional estimates of the conditional risk-return relationship, that use ex post excess returns as the conditioning information set, lead to joint tests of the theoretical model (usually the ICAPM) and of the Efficient Market Hypothesis in its strong form.  To overcome this problem we propose alternative measures of expected market risk based on implied volatility extracted from traded option prices and we discuss the conditions under which implied volatility depends solely on expected risk.


Perceptions of Effectiveness - A Study of Schools in Victoria, Australia

Martin Samy, Monash University, Australia



 A quantitative effectiveness measurement based on the perceptions of a group should be an effective mode of evaluating the level of satisfaction. This study establishes such a measurement through the Quality Situation Assessment Instrument. In order to measure the level of effectiveness perceived by its community, educational institutions can use this instrument to calculate the Quality Effectiveness Index.  This pilot project established that Student Achievement Data might not necessarily be the only variable to the perceptions of effectiveness.  This paper is based on a pilot project, which was undertaken as part of a PhD study. The study looks at the concept; perceptions of effectiveness of schools in Victoria, Australia. The paper introduces the reader to the system of education in Australia. The focus is on the prolific state of Victoria and its catholic and state systems ‘School of the Future’ reform program. The research part of this paper analyses the Quality Effectiveness Index (QEI) of 6 schools selected across the regions in Victoria. QEI is a quantitative measurement of the perceptions of effectiveness of individual schools.


Analyzing the Regime-Switching Behaviors on Exchange Rates and an New Test for PPP -An Empirical Study on the Exchange Rates of Two Major Industrial and Four Asian Developing Country Currencies

Ming-Yuan Leon Li, National Chi Nan University, Taiwan



 This study adopts Hamilton’s Markov-switching model (hereafter MS model) to examine and compare the regime-switching behaviors of exchange rates of two major industrialized country currencies including GBP and JPY and four Asian developing country currencies including NTD, KOW, THB and PHP. An alternative innovation of this paper is to establish a specification that incorporates the MS model and purchasing power parity (hereafter, PPP) and examine whether the PPP has marginal predictive power for the exchange rate returns after accounting for state-dependent switching.  Our empirical findings are consistent with the following notions. First, the regime-switching behavior are much (less) statistical significant in the exchange rates of developing country currencies (Industrial country currencies). Second, the finding provides the evidence that PPP is pronounced in the high- (low-) volatility regime of industrial country currencies (developing country currencies). Third, the switching in variance with asymmetric PPP established by our paper outperforms the competing models in statistical and forecasting performances.


Sickness Absence as a Function of the Physical Work Environment: The Interactive Effect of Noise Exposure and Lighting

Dr. Yitzhak Fried and Dr. Linda Slowik, Wayne State University, Detroit, MI

Dr. Samuel Melamed, National Institute of Occupational and Environmental Health, Israel



 Not enough is known about how important characteristics of the physical work environment affect absenteeism.  We examined the interactive effects of noise exposure and lighting levels, on sickness absence among 797 white-collar employees across 21 industrial organizations in Israel.  The results supported the expected interactive effect of noise and lighting on sickness, although this interaction was shown to be more complex than expected.  That is, the presence of either high ambient noise or poor lighting (high darkness) was sufficient to increase sickness absence, regardless of the level of the other environmental stressor (noise or lighting).  Jointly, high levels of noise and low levels of lighting did not contribute to higher sickness absence beyond the contribution of each of them independently.  In contrast, jointly, these two important environmental characteristics did contribute to reduced levels of sickness absence, such that  sickness absence was maximally reduced when noise was low and lighting was high, simultaneously.  Implications of the results and suggestions for future research are discussed.


Economic Development in India: The Role of State and the Entrepreneurial Spirit

Dr. Anil K. Lal and Dr. Ronald W. Clement, Pittsburg State University, Pittsburg, KS



 Economic development, achieved largely through productivity growth, is very important to both developed and developing nations. However, even though we know that higher productivity leads improved economic outcomes (e.g., higher income), we are not yet certain about how a country can raise its productivity on a sustainable basis. In particular, there has been no consensus among researchers concerning either the desired path of development or the role of state in economic development. The Industrial Revolution, which started in the United Kingdom and quickly spread to the rest of Europe and the Americas, led to attainment of increasingly higher productivity. In the West, that economic development was based in large part on individual enterprise, with the state maintaining an almost neutral stance towards business endeavors. However, the rise and spread of capitalism led a number of thinkers to examine the consequences of the capitalist approach to development. Socialists argued that capitalism leads to greater inequalities of income and wealth, and developmental economists argued that private decisions may not always lead to socially desirable outcomes (particularly in the case of market imperfections).


An Exploration of Meaning in Russian Business Ethics

Dr. C. Alexandra Van Nostrand, Palm Beach Atlantic University, West Palm Beach, FL



 Western organizations wishing to do business with or in Russia would be well advised to become sensitive to the nuances of Russian culture.  A particularly important aspect of that culture is the area of business ethics.  This paper analyzes the historical development of Russian values and their impact on contemporary joint business ventures.  Tracing their historical roots, several common themes appear, all of which appear to be contradictory to the Western sense of values.  As a result, Western firms find it difficult to understand the actions and motives of Russian businesses and workers. Yet, for Westerners to establish long-lasting business ties, they need to understand the essential elements that contribute to the Russian character and how they mold expectations and motivate behavior.  The desideratum for Western companies establishing business partnerships in Russia is to create an ethical environment that supports mutual trust and respect, and which therefore supports the success of the venture.


A Demographic Perspective of Online Purchase Expenditure in Australia: Some Implications for Marketing Strategy

Dr. Nicholas Samuel and Joshua J. S. Chang, University of Canberra, Australia



 The acceptance of online shopping is growing strongly amongst Australian consumers.  The rapid growth of online shopping creates a need for a greater understanding of the association between the demographic characteristics of shoppers and their online shopping behaviour.  This study shows that gender, age, income and location are associated with different patterns of online purchase expenditure.  The findings enable a better understanding of online shopping behaviour relevant to market segmentation variables. Businesses have developed strategies for consumer markets in order to gain leverage in rapidly expanding e-markets.  Due to benchmarking processes, most companies are already interlocking business strategies and e-commerce, causing e-commerce to replace conventional and physical marketing channels for cutting edge solutions (Merrilees and Miller 1996).  Many changes have occurred in the area of retailing, and these include changing retail structures, improving technological developments, changing market conditions, and the emergence of more affluent, mobile and time-scarce consumers (Shim and Eastlick 1998). 


Activity Based Costing for Small & Medium Scale Enterprises

Dr. Jatin Pancholi, Narsee Monjee Institute of Management Studies, Mumbai, Maharashtra, India



 This paper attempts to study the concept of ABC for Small and Medium Scale Enterprises.  The entrepreneurs and managers of SMSEs often classify the cost into direct and indirect with an impression that the level of output determines the costs.  However this may not hold true always.  The activities generate transaction, which in turn incurs costs.  A costing system is basically to help the entrepreneurs and managers in making decision.  No costing system is effective if it does not measure the business performance. If managers can’t measure, they can’t manage.  Managers in order to make decision based on the management accounting data perform task of measuring costs in two stages.  The first stage involves collecting of several cost items, which is termed as Cost Accumulation.  For instance, manufacturing of an Indian Saree will require several cost items such yarns, dyes, machines, labour cost, electricity, advertising, etc.


Consumer Perceived Importance of Mobile Commerce

Noor Raihan Ab. Hamid and Sarabdeen Jawahitha, Multimedia University, Selangor, Malaysia



 Due to the rapid growth in the numbers of mobile users, it is crucial for companies to fully understand what influence consumers satisfaction.   As consumer perception of services would influence the level of satisfaction, companies should then pay attention to the attributes that are perceived as important by consumers in making choices.  Hence, this paper is an early attempt aims to provide empirical data on mobile users preferences of services as well as attributes that are perceived as important when they shop using mobile devices.  In addition this paper discusses various wireless technologies and applications available in the market today.  Further security issue in mobile commerce is also highlighted.  The results of this study indicate that security and trust are perceived as the most important attributes that mobile users would be concern about before they decide to shop. The limitations and future directions of this research are also discussed.


Commercial Software Protection: Copyright or Patent Right

Sarabdeen Jawahitha, Noor Raihan Abd Hamid and Mohamed Ishak Mohamed Mazahir

Multimedia University, Cyberjaya, Malaysia



 Software can be stated as a set of instructions made into a programme or a suite of instructions which can be installed or removed from a computer by an operator. It can be of a source code form of the programme written in a programming language or object code where the programme is converted into the machine language of the computer’s processing unit.  The software companies as well as the developers want to ensure the time and efforts invested by them in developing the software are protected against misappropriation. The major concern of these people is to prevent competitors from observing the functions of their software and writing equivalent functional code without much investment in term of money and time. To address this concern the international community has reacted in granting copyright protection since 1980’s. The World Intellectual Property Organization provides copyright protection for computer software. The copyright protection was seen as the best form of protection of software as it has the characteristics of “literary” work.


Will Recent Reforms in U.S. Corporate Accountability Decrease Entrepreneurship Activity?

Dr. Nancy Borkowski and Dr. Raymond Kulzick, St. Thomas University, Miami, FL




On July 30, 2002, President George W. Bush signed into law the Sarbanes-Oxley Act of 2002 (Act), relating to corporate accountability. This reform has significant, sweeping implications for corporate America and has been referred to as the greatest overhaul of federal accounting regulations since the Depression. This paper examines the implications of the Act as related to entrepreneurship. The authors posit that this new federal law with its strong oversight on publicly held companies and risks of penalties for senior management will negatively affect entrepreneurship activity in the future. Economic development of a country is dependent upon a sufficient number of high achievers. McClelland (1961) regards the need for achievement as the crucial component in the personality of an entrepreneur. Although entrepreneurs share common attributes, such as need for achievement, “the most promising entrepreneurs are those who have considered and calculated the risks” (Chasen, 2002).


Singapore in the Global Economy: The Case of Free Trade Agreements

Teofilo C. Daquila, Ph.D., and Le Huu Huy, National University of Singapore, Singapore



 Trade is the lifeblood of Singapore. Without trade, Singapore could have not become what it is today – a vibrant and wealthy economy despite lack of natural resources and a small market. As a free trader and a vocal champion of free trade, Singapore has supported and will continue to support the promotion of free and open trade at the multilateral and regional levels. However, given the slow pace of global and regional initiatives and to complement them, Singapore has forged FTAs with non-ASEAN countries for economic and strategic reasons. However,  Singapore’s FTA policy has been criticized as against the ASEAN spirit and could provide a backdoor entry for goods coming from FTA partners. Moreover, the challenge now is whether Singapore can effectively and efficiently implement her FTAs. While the Singapore government is strongly committed and has the political will to execute these FTAs, the Singaporean businessmen have to be fully familiar with the working mechanisms of these FTAs to avail of their benefits and potential opportunities.


Implied and GARCH Volatility Analysis: The Portuguese Stock Index Case

Elisabete Mendes Duarte, ESTG, Inst. Pol. Leiria, Portugal

José Soares da Fonseca, FE, Universidade de Coimbra, Portugal



 Volatility plays an important role in financial assets valuation in general, and on options in particular. That is the reason why there is substantial literature devoted to its specification and measurement.  Although there are several techniques to make volatility estimation here we focus on Black-Scholes implied volatility and ARCH volatility. We intend to study, for the Portuguese market, the relative advantages of each one of these volatility specifications, for forecasting purposes of the index PSI-20.  Although previous studies results, for foreign financial markets, point out the superiority of ARCH models, this analysis becomes important for the Portuguese market, because it contains characteristics that distinguish it from the markets where these kinds of studies has been applied.


Corporate Governance , Managerial Malfeasance and Incentive Compensation Schemes: The Case of HIH Insurance in Australia

Scott Bourke, Swinburne University of Technology, Willoughby, Australia

Dr. Neil E. Béchervaise, Australian Graduate School of Entrepreneurship, East Brighton, Australia



 Recent US and Australian corporate performance failures provide some evidence of managerial malfeasance. One possible motivation for managerial malfeasance derives from incentive based compensation contracts. However, the alignment of shareholder and managerial returns is a pillar of the Anglo-American model of corporate governance under which, it is argued, board monitoring and incentive compensation arrangements are the primary methods of reducing the potential for excessive managerial risk taking and malfeasance.  Doubts have been increasingly sounded in the literature about the theoretical and empirical validity of incentive compensation arrangements and their capacity to align shareholder and managerial returns. Dramatic corporate failures and substantial pay-outs to departing executives, apparently regardless of performance, have further fueled the debate in the popular media and among minor-shareholder lobby groups. 


E-Commerce in SMEs: Consideration of Some Micro-Environmental Variables

Shahadat Khan, RMIT University, Melbourne, Australia

Kane Steele, Monash University, Australia



 Research on the adoption of e-commerce for B2B marketing is yet to receive adequate attention. Firms in a business-to-business market to continue with their traditional transactional processes that they have with their supplier(s), but making the change to e-commerce transactions comes sooner than later for some firms who see the operational efficiencies and effectiveness from e-commerce.  This paper examines the issues such as the perceived benefits and organisational readiness that SMEs consider before they embark on using e-commerce. The paper utilises a portion of Rogers’ model of innovation diffusion as the structure, and treating e-commerce as a new form of innovation, analysing factors affecting e-commerce diffusion. A supplier-driven adoption model is developed and tested where large supplier’s support is shown as catalyst, for small buyers in their adoption of e-commerce without necessarily going through the several stages leading to e-commerce that other firms go through.


The Relationship Between Demographic and Motivational Factors in Online Purchasing in Australia

Joshua J. S. Chang and Dr. Nicholas Samuel, University of Canberra, Australia



 The reach of the Internet as a shopping medium has provided shoppers with benefits over traditional storefront shopping in terms of time saving, cheaper products, and product selection.  This study suggests that a relationship exists between the motivational factors of convenience, price, and product selection leading to purchase and the demographic characteristics of Internet shoppers in terms of gender, age, income, and location.  Many changes have occurred in the area of retailing, and these include changing retail structures, improving technological developments, changing market conditions, and the emergence of more affluent, mobile and time-scarce consumers (Shim and Eastlick 1998).  According to Cheeseman and Breddin (1995), the emergence of electronics retailing for online purchasing is a part of the ongoing dynamism in the retail sector; it has been another step in the availability of innovative formats since the emergence of self-service in the 1950s, the rapid expansion of the modern supermarket format, and technological changes such as electronic scanning and EFTPOS (Electronic Funds Transfer Points Of Sale). 


Bootstrapping and Jack-knifing ARIMA Model Predictions: A Case Study

Dr. Medhat Mohamed Ahmed Abdelaal, Ein Shams University, Cairo, Egypt



 This paper applied ARIMA with and without explanatory variables to predict the Tilapia catch in the largest natural lake in Egypt (Lake Manzala). Bootstrap technique has been applied to allow one to judge the uncertainty of estimators obtained from the suggested ARIMA model, without prior assumptions about the underlying probability distributions. This method based on generating 1000 random samples with replacement from the original observations. Then refit the suggested ARIMA model to each sample to end with a probability distribution of the model parameters, which can be used to estimate the bias of the parameters. Also Jack-knife technique has been applied after bootstrapping the ARIMA model. Jack-knife-after-bootstrap technique aims at estimating the bias of the bootstrap estimates, by deleting each observation in turn to obtain n estimates based on n-1 observations.


On Doing Global Business in Mainland China

Dr. Jerry Platt, San Francisco State University, San Francisco, CA



 Mainland China is in the midst of what appears to be a remarkably rapid transformation from a controlled central economy to one driven by market forces.  Recent decisions driven by western interests, ranging from the accession of China into the World Trade Organization to the awarding of the 2008 Olympic Games, signal further acceleration of this trend.  However, are western businesses really prepared to do business with the cultural mosaic that is modern China?  More importantly, how much of Mainland China is ready for the kind of future envisioned by entrepreneurial leaders from the western world?  This paper examines the latter question.  Setting aside the special cases of Taiwan and Hong Kong, China is comprised of 31 provinces, autonomous regions, and municipalities.  This study examines the differences among these 31 flavors of China in terms of the United Nations Development Program measures of human and gender development, such as life expectancy, literacy, education levels, gender differentials, and economic production. Collectively, the “31 Chinas” comprise one-fifth of the world population.  


Bootstrapping and Jack-knifing ARIMA Model Predictions: A Case Study

Dr. Medhat Mohamed Ahmed Abdelaal, Ein Shams University, Cairo, Egypt



 This paper applied ARIMA with and without explanatory variables to predict the Tilapia catch in the largest natural lake in Egypt (Lake Manzala). Bootstrap technique has been applied to allow one to judge the uncertainty of estimators obtained from the suggested ARIMA model, without prior assumptions about the underlying probability distributions. This method based on generating 1000 random samples with replacement from the original observations. Then refit the suggested ARIMA model to each sample to end with a probability distribution of the model parameters, which can be used to estimate the bias of the parameters. Also Jack-knife technique has been applied after bootstrapping the ARIMA model. Jack-knife-after-bootstrap technique aims at estimating the bias of the bootstrap estimates, by deleting each observation in turn to obtain n estimates based on n-1 observations. The main aim of applying these techniques is to minimize the bias of the estimation of ARIMA model, so one can get the most accurate prediction which considers the most accurate tool to help the decision maker apply proper management policies to optimize the fishing effort and protect the fish stock.


On Doing Global Business in Mainland China

Dr. Jerry Platt, San Francisco State University, San Francisco, CA



 Mainland China is in the midst of what appears to be a remarkably rapid transformation from a controlled central economy to one driven by market forces.  Recent decisions driven by western interests, ranging from the accession of China into the World Trade Organization to the awarding of the 2008 Olympic Games, signal further acceleration of this trend.  However, are western businesses really prepared to do business with the cultural mosaic that is modern China?  More importantly, how much of Mainland China is ready for the kind of future envisioned by entrepreneurial leaders from the western world?  This paper examines the latter question.  Setting aside the special cases of Taiwan and Hong Kong, China is comprised of 31 provinces, autonomous regions, and municipalities.  This study examines the differences among these 31 flavors of China in terms of the United Nations Development Program measures of human and gender development, such as life expectancy, literacy, education levels, gender differentials, and economic production. Collectively, the “31 Chinas” comprise one-fifth of the world population.  


Semiconductor Electronics

Dr. Chien-Chih (James) Lee, Wenzao Ursuline College of Languages, Kaohsiung, Taiwan



 A Semiconductor Electronics is one of Taiwan's pioneering IC packaging foundries.  It has run the most recent processes of the semiconductor industry and has been a world leader in IC assembly and testing for years.  Because several semiconductor companies are ready to invest in Mainland China, how IC packaging manufacturers face this situation is a main issue.  This study aims to analyze the actual practice of A company’s circumstances, mission, internationalized strategies, and operational management.  Increasing the R&D quality of IC packaging and building a strategic alliance between IC packaging and semiconductor manufacturer could be beneficial for academic research and a reference for related IC packaging business to capture the market in Mainland China as well.


Macro-Economic Drivers of the Non-Correlation Between Equity & Commodity Indices

Ed Vos and Frank M. Aarts, Waikato Management School, Hamilton, New Zealand



 Commodities have enjoyed widespread investor interest over the past decade. This interest is unsurprising due to the attractive investment characteristics of commodities, namely low correlations between these asset classes with both having stable long-term returns.  This study examines the macroeconomic drivers of the diversification benefit between commodities and traditional equity investments in an attempt to understand why low and stable correlations exist between these asset classes. An examination of the differential impact of macroeconomic drivers of interest rate changes, industrial production, inflation and consumer confidence on equities and commodities is offered.  Using analysis of various contemporary fully collateralised passive commodity indices it is found that while not all commodity investment vehicles behave the similarly, reasons for the low correlations rest mostly in strongly opposite reactions to changes in interest rates, opposite reactions to decreases in industrial production, lower average reactions to inflation, and similar reactions to changing consumer confidence. 


Intertemporal Approach to the Theory of Dividend Smoothing and Empirical Findings

Dr. Ming-Jang Weng, National University of Kaohsiung, Taiwan

Dr. Min-Shann Tsai , National Chi Nan University, Puli, Nantou, Taiwan

Dr. Jyh-Lin Wu, National Chung Cheng University, Taiwan.


We propose a theoretical model of dividend smoothing based on microfoundation to investigate the relationships between firm’s expected stream of future net earnings and changes of stockholders’ equity or the smoothing component of the dividend policy. The signaling effects of changes in equity and of dividend policy to the expectation of future net earning stream are then discussed and tested. The empirical findings using IBM and Citi Bank’s quarterly data in the 90’s provided a robust supporting for the theoretical prediction to the actual changes of stockholders’ equity and to the smoothing component of the cash dividends.  Dividend policy has been confusing to financial researchers for quite a long time. The managers seem to prefer retaining earnings for reducing the financial costs of new investment opportunities. However, in general, the firms declare dividends and simultaneously pay more costs to issue new stocks or bonds to fund for new investments in market. Miller and Modigliani (1961) showed that a firm’s dividend policy is irrelevant to its valuation in a perfect market.


The Effects of Organizational Variables on Stress Among Malaysian Managers: Does Extraversion Matter?

Dr. Aizzat Mohd. Nasurdin and Dr. T. Ramayah, Universiti Sains Malaysia, Penang, Malaysia

S. Kumaresan, Intel Technology, Penang, Malaysia



 The purpose of this paper is to: first, determine the influence of organizational variables on job stress, and second, investigate whether extraversion moderates the relationship between these organizational variables and stress. The sample consisted of 285 Malaysian managers. Analyses using hierarchical regression revealed that organizational variables (conflict, blocked career, and alienation) had significant and positive effects on job stress. Additionally, extraversion was found to moderate the influence of four out of five organizational variables (conflict, alienation, work overload, and blocked career) on stress. Implications for managerial practice and future research are discussed.


Women’s Engineering Education and Labor Market in Korea

Dr. Ji-Sun Chung and Dr. Namchul Lee, Korea Research Institute for Vocational Education & Training, Seoul, South Korea



 The principal objective of this paper is to explore the reasons for male and female differences of human capital and labor market in Korea.  This paper begins by presenting an overview of education for women and of the labor market for female Koreans drawing on various aggregate data.  Also, reasons for present major choosing in college were surveyed and compared with women and men of the relationship between education and -labor market participation, earning inequality.  More detailed attention is then given to the issues of the changing composition of employment and unemployment in terms of industry and occupation.  The results suggest those overall differences in college education and in labor market are primarily due to differences in observed socio-economic characteristics.  This work makes several contributions to the existing literatures.  First, this paper is to analyze both changes in indicators of human capital for women relative to men, changes in absolute levels for women over time. 


Absurdism in Advertising: Its Impact on Brand Name Recall and Alcohol Warning Label Recall

Dr. Leopoldo Arias-Bolzmann, Universidad Adolfo Ibañez, Viña del Mar, Chile



 The presence or absence of an absurd image was manipulated in a simulated print advertisement for a fictitious brand of wine cooler.  As predicted, absurd images enhanced the recall of the brand name and reduced the unaided recall of an alcoholic beverage warning label.  Results are discussed in terms of the role of absurdism in advertising communications.  Absurd images frequently appear in advertisements (Stern 1988, 1990).  In this paper absurd ads are defined as incongruously juxtaposing pictorial images, words, and/or sounds that viewers perceive to be irrational, bizarre, illogical, and disordered.  For example, ads for Camel cigarettes portray a dromedary, cigarette dangling from his mouth, participating in sports and wearing fashion clothing.  Or, consider the British Airways ad in which dozens of shoes are shown flying into the sky.  No study has specifically counted the percentage of ads that use absurdism. 


Entrepreneurship and the Quest for the New Economy “Golden Fleece”: Country-of-Origin Risks, Networks, and Distance to Frontier

Dr. Panagiotis Petrakis and Dr. George Neofotistos, University of Athens, Athens, Greece



 The entrepreneur is a leading character in many accounts of economic growth. He appears as a charismatic founder of a company, as a prominent innovator, one of the hordes of self-employed small business owners who confer flexibility and dynamism on a market economy. Yet, the practice of entrepreneurship may differ in important ways among countries. Competencies that create competitive advantages internationally may be very different from those that create such advantages domestically. In addition, entrepreneurial efficiency may also differ in important ways among industrial sectors and countries.  This paper focuses on the analysis of the different entrepreneurship manifestations in countries and sectors, in terms of risk factors affecting economic growth such as: 


Accrual Management and the Roles of Boards of Directors and Audit Committees among Malaysian Listed Companies: Evidence during the Asian Financial Crisis

Dr. Shamsul Nahar Abdullah, Universiti Utara Malaysia, Malaysia

Norita Mohd Nasir, Monash University Malaysia, Malaysia



 The recent revelation of malpractices in preparing accounts by several big companies in the US has heightened the public concern about firm’s financial reporting processes. One of the most effective tools to manage earnings is through discretionary accruals and a firm’s internal corporate governance systems should be able to constrain the extent of earnings being managed. This paper investigates the roles of the boards of directors and audit committees in constraining manipulation of accounts by the management. The board of directors of a firm was the focus of this study because the board is collectively liable to the financial statements of the company as stated in the Companies Act 1965. The audit committee, on the other hand, is a sub-committee of the board whose primary responsibility is to oversee the financial reporting of the firm. Using data from the KLSE Main Board for the year 1998, evidence showed that neither the board of directors nor the audit committee has effectively functioned to constrain the accrual management level.


Husband-Wife Influence on Consumer Decision Making in a Multicultural Society

Ghazala Khan , Monash University Malaysia, Malaysia

 M. Sadiq Sohail, Ph.D., King Fahd University of Petroleum and Minerals, Saudi Arabia



 This study examines variability in spousal influences on family purchase decisions in Malaysia: a multi-cultural society. Empirical research was carried out to investigate the marital power among Malays, Chinese and Indians. A postal survey was carried out to examine spousal influence for three product categories (clothing, cosmetics and groceries). Results indicate that there are indeed ethnic differences. Marketing implications of these findings, limitation of the study and further research directions are suggested. Whether business is conducted on a local or a global level, understanding various aspects of consumer behaviour is of significance, as consumers make up the market. One such consumer is the family, which is an important decision making unit due to the large quantity of products and services that form part of the everyday life of a household.


Cross-Cultural Negotiation in Chinese Approach

Dr. Lieh-Ching Chang, Shih-Hsin University, Tawain



 During the last three decades, China has changed its political policies to open itself to foreign investment. With many foreign investors’ helps, China has made great economic progress and has been emerging fast in the global marketplace. Since more and more foreign enterprisers join the Chinese markets, many questions and problems regarding to the issue of cross-cultural negotiation have been raised. Cross-cultural negotiation has never been an easy task. A cross-cultural negotiation requires a mutual understanding of culture differences and the practices of applied negotiation styles. This study is to help Western business negotiators better understand Chinese negotiation strategies and techniques, so they can develop appropriate strategies when negotiating in China.  After China and Taiwan both became the members of World Trade Organization (WTO) in year 2002, the importance of business transaction with Chinese has drawn a huge attention to most businessmen in the world.


Multi-National and Domestic Fast Food Operators: Similarities and Differences in Employment Practices in Australia

Dr. Cameron Allan, Greg Bamber and Dr. Nils Timo, Griffith University, Queensland, Australia



 The issue of conformance or divergence of human resource management and industrial relations practices and institutions between countries has been an enduring theme in employment relations research.  In recent years, the role of multi-national corporations (MNCs) as a force for convergence of employment practices between countries has been a major focus of research interest.  In this paper we conduct a comparative analysis of employment relations practices between multi-national and domestic corporations in the fast food sector of Australia.  Using data from a survey of employee perceptions of HRM and IR practices in the fast food industry, we find there few major differences between employee perceptions and experiences in MNC and domestic fast food operations.  We conclude that there is both a convergence and divergence occurring with MNCs adapting to local industrial relations arrangement and local employers emulating MNC production and HRM practices.


Legislating Entrepreneurial Behavior: The Case of Slovenia

Dr. Richard T. Bliss and Dr. Lidija Polutnik,  Babson College, Babson Park, MA

Dr. Ales Berk, University of Ljubljana



 Financial, legal, and corporate governance systems are designed to facilitate the efficient allocation of resources and human capital in an economy.  Yet in practice, frictions, self-interest, asymmetric information, and poor incentive contracts all act to thwart this goal.  This paper examines an attempt by Slovenia to address these problems in small firms as the former socialist country transitions to EU entry in 2004.  This effort should be of interest to all transitioning economies, as numerous studies have highlighted the critical role SMEs play in economic growth and new venture development.  A 1999 report by the General Auditor’s Office of Slovenia found a high incidence of dubious contracts, dormant “shell” companies, unauthorized payments to managers, and illegal asset transfers.  The report also identified a persistent pattern of nonpayment of financial obligations by a significant number of small firms.


The Design of Online Quantitative-Oriented Courses

Dr. Yehia Mortagy and Hester Mok, University of La Verne, La Verne, CA



 This research in progress paper describes an effort to develop an online quantitatively oriented course. It presents an overview of a learning model and other pertinent issues that were considered in order to develop an online course, and some initial comments on development experience. The developed material will be tested to insure its effectiveness, and updated results will be shared during the conference.  There is a need for a better understanding of online education. Both universities and employers are often doubtful of efficacy of online education.  Some universities are developing new online courses, while some early implementers are eliminating theirs.  Many implementations (early as well as current ones) are developed by posting lecture notes and transparencies on the Web.  Additionally, some implementations don't consider the various learning theories resulting in online courses that post lecture material without considering the effects of the change in the communication channel (i.e., from face-to-face to online).


Systems Model for Improving Standards and Retention in Engineering Education

Dr. Yaw A. Owusu, FAMU-FSU College of Engineering, Florida A & M University, FL



 This paper describes a systems model for improving standards in engineering education and at the same time maintaining high retention rate for all engineering students in the educational system.  A systems approach methodology adopted for this research is a technique of taking into account all relevant factors affecting quality education and student retention.  A four-step procedure has been adopted for the model, namely: problem diagnosis, evaluation and analysis, system model design, and design implementation.  Currently, in the United States of America, the demography indicates that the traditional source of American engineering pool of labor force (mainly White males) has declined and will continue to decline while ethnic minority population of Blacks, Hispanics, and women has increased and will continue to increase. 


Small Business Success in Nakhchivan –Improving the Environment

Jamaluddin Husain, Purdue University Calumet, Hammond, IN

Zafreen Husain, Entrepreneurship Development Foundation, Inc., Skokie, IL



 This preliminary research report is based on personal interviews with small business owners of the Nakhchivan, a small land-locked autonomous republic of Azerbaijan, bordering Turkey, Iran and Armenia. Findings highlight the need for some structural changes and incentives in order to stimulate small business success and growth. This, in turn, would then provide the basis for a successful “free-enterprise” economy.  Nakhchivan Autonomous Republic (NAR) of Azerbaijan has made significant strides in recent years in driving its economic system from the old ‘Centralized Economy’ towards the “Free Enterprise Economy.”  In this new system the primary driving force behind the economy as a whole is the individual ‘entrepreneur’ who starts or grows a business. This transition can indeed be a long and slow process that normally takes decades to accomplish.  In almost all countries with “free-enterprise” economic systems, an extremely large percentage of businesses are categorized as ‘small.’  In the United States of America (USA) over 98% of the over 24,000,000 businesses are classified as ‘small.’


Business and Family Values and Success Factors among SMEs in Malaysia: An Exploratory Study of Malay, Chinese and Indian Business Owners

Dr. Intan Osman and Mohd Yusoff Hamzah

Vethanayagam s/o Kanapathy


Small Medium Enterprises (SMEs) are getting continuous attention and researches in the developing countries as they continue to spearhead and activate numerous business projects and activities to support big and multinational companies in product and process development. As world economy evolves and revolves as result of which employment opportunities are becoming depressed globally, there is a need to re-look at these SME owners’ values that may influence the way they do business and how they compete in the market.  Understanding how Malaysian business owners perceive certain business conduct or ethics, family ties, religious and social filial piety will be one of the objectives of the paper.  In additions, the reasons for them to co-opt into business and what they considered success factors would be explored.  Specifically, this paper will review some of the profiles and descriptive statistics as well as correlation on business and family  values with reasons for co-opting into business and success factors among Malay, Chinese and Indian SMEs manufacturing owners of Malaysia.  The data was administered via a questionnaire on selected 270 SMEs  producing mostly machine parts, textiles, foods, furniture and finished garments after obtaining a compilation of lists of SMEs from various state and federal agencies involved in registering and administering SMEs. 


Technological Change and the Gender Wage Differentials: Estimates for US Industries, 1979-2001

Dr. Simona Lup and Dr. Ronald L. Oaxaca



This paper empirically investigates the impact of non-neutral, skill-biased technological change on gender wage differentials. The relation between technological change and the labor market has received considerable attention. Previous results support the hypothesis that skill-biased technological change (SBTC) has taken place, but they do not investigate directly whether SBTC is associated with changes in relative gender wages. We use quarterly CPS data on employment and wages, by industry and occupation, from 1979 to 2001 to estimate a CES production function that incorporates male and female labor inputs by occupation in each industry and a productivity parameter function that captures non-neutral technological change. The model is estimated as a system of seemingly unrelated equations, using: 1) SURE without cross-equation restriction, 2) SURE with cross-equation restriction and 3) SURE with instrumental variables.


An Analysis of Organizational Economic, Political, Strategic Models in Logistics Outsourcing

Chuck Zouhair and Amal Jalane, Nova Southeastern University, Ft. Lauderdale, FL



 This research is a theoretical investigation of logistics outsourcing. It provides a framework for analyzing the costs affecting the sourcing decision and examines how power and politics affect the firm’s decision to outsource.  The sample of this research was two hundred and ten firms from various sizes. It included Fortune 500 Firms as well as small firms. This paper reviews literature, analyzes the findings, and makes suggestions for future research. Logistics outsourcing represents an Organization’s decision to enter into a contract that allows an external supplier to perform all or part of the company’s logistics functions (Knemeyer, 2000).  Logistics outsourcing is a key component of logistics management strategy in many industries.  It covers a variety of services such as transportation management, Warehousing, and Order management. 


Mining Your Data Warehouse: A Managerial Perspective

Nabil Alghalith, Ph.D.



 Many organizations are viewing and deploying information technology to achieve a competitive advantage. Data warehousing has become a tool of choice for organizations seeking to utilize information technology to gain a competitive advantage. Moreover, many vendors, having noticed this trend, have begun to manufacture various kinds of hardware, software, and tools to help data warehouse function more effectively. This paper gives an overview of theoretical background, terminology, advantages and disadvantages of data warehousing, and data warehouse architecture. The paper will present the research findings on how much data mining is done by organizations especially in the area of OLAP, classification, sequencing, association, clustering, market basket analysis, visualization, text mining, and web mining.


Relationship Between Marketing and the Evaluation Stage of Consumer Decision Making Process: Selection of Private College

Dr. Faridah H. Hassan and Nooraini M. Sheriff



 The Malaysian system of higher education comprises of the public and private higher education sectors. The public higher educational institutions receive funding in the form of grants and subsidies from the government. On the contrary the private higher educational institutions do not. Their primary source of revenue stems form shareholders funds, student’s fees and business activities related to the education business. However both the sectors are complementary in their nature and each has contributed significantly towards the nations manpower development. This positive development is very much in line with the Malaysian government’s aspiration of engineering a knowledge-based economy. Private colleges being one key category of the private higher educational institutions in Malaysia has been established since 1930. Their participation in the higher education sector was aimed at filling the vacuum left by the public institutions of higher learning. Since then private colleges have grown in leaps and bounds.


International Retailing: The Current Aspects on Diversification of UK Companies

Dr. Palto Ranjan Datta and Sudaporn Sawmong



 This paper is aimed to describe the current aspects and situation of UK’s food retailing, which has occurred vast amount of change recently. Many supermarkets that are competing in the market are continuing to face a strong competitive environment. The paper also attempt to analyses how UK based supermarkets such as Tesco is considering international diversification, whilst continuing to establish themselves in their home market. Therefore, the article has report about the part and current international activities. An implication for the international food retailing in the market place are discussed in this paper.  International retailing after year 2000 was often discussed. The focus point that literatures were mention was the constant varying nature of the environment in which international retailers were operating among the changing opportunities. The changes after millnium years being economic and geographic which suited and allowed an enhanced level of international retailers as immense opportunities were obtainable to them at their disposable. 


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