The Business Review Journal

Vol. 20 * Number 2 * December 2012

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

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In Search of Strategic Innovation in Global Logistics Competition: Operations, Measurement, and Cases

Dr. Sut Sakchutchawan, Waynesburg University, Waynesburg, PA

 

ABSTRACT

In global competition, firms compete for market shares and profit. This paper examines a specific innovation for a practical logistics system for competitive edge. Currently, many issues on operations of global logistics still occur but firms still struggle in searching for the strategic innovation. This could be one reason why the cohesive in logistic and supply chain has never fully integrated. To investigate sources of innovation in global logistics, this paper proposes a research model for competitive advantage and measurement. This paper employs several methodologies including e-research, a survey of literature for effective practices of logistics innovation, and case illustrations to highlight and explore innovative operations to be implemented for global logistics firms.  Today’s global market is more competitive than ever. Technological change and demanding customers force international firms to change the way they do business. The cost of logistics has a large impact on a firm’s profitability. A global market, outsourcing and operations place tremendous pressure on the logistics function to deliver the goods as quickly as possible at the lowest cost (Gunasekaran and Ngai, 2003). Therefore, a key determinant of business performance is the role of the logistics function in ensuring the smooth flow of materials, products and information throughout a company’s supply chain.

 

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Job Satisfaction and Faith:  Testing the Effects of Religious Intensity on Job Satisfaction

Dr. Issam Ghazzawi, University of La Verne, CA

Dr. Yvonne S. Smith, University of La Verne, CA

Dr. Yingxia Cao, University of La Verne, CA

 

ABSTRACT

Job satisfaction is one of the most researched constructs in management literature, including numerous studies on the links between spirituality and job satisfaction.  However, relatively few researchers have explored the links between strongly religious employees and job satisfaction. Does a person who is committed to his/her religion exhibit higher levels of job satisfaction?  In this paper we use a multi-religion sample to study whether, and under what conditions, an individual’s intensity of religious faith affects his or her satisfaction with the job.  We find that there are positive, however, weak links between intensity of religious faith and job satisfaction. Religious faith also seems to positively affect intrinsic and extrinsic job satisfaction.  Employees are not machines – they are entire persons with racial, gender and spiritual dimensions.  A major influence on an employee’s job satisfaction or dissatisfaction is the subtle permission on the part of the employer to be an entire, whole person at work, to not “check one’s gender or ethnicity or faith at the door” (Heim & Murphy, 2001:6).  The desire to integrate the entire persona at work seems to be particularly strong for the generation now entering the workplace, the so-called Millennial generation (Brooks, 2008; Stone, Cross, & Purvis, 2003).  However this aspiration is not limited to one demographic or age group; rather it affects the job satisfaction or dissatisfaction of many employees (Brief, 1998).  This understanding has created a growing interest in the effects of spirituality and religion in the workplace (Duffy, 2006; Pfeffer, 2003).  

 

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Student Preferences Regarding Sustainability Topics in the Business Curriculum, Interviewing, and Job Offers

Dr. Ronnie Silverblatt, Florida International University, FL

Dr. Constance Bates, Florida International University, FL

Jack Kleban,  Florida International University, FL

 

ABSTRACT

While firms and consumers have recognized sustainability and taken measures to go green, business schools have yet to fully commit to developing green courses and programs.  This is a survey of undergraduate and graduate students regarding their views toward sustainability.  While firms and consumers seem to be aware of going green and what it means, most schools of business have yet to act.  Most colleges of business have no green courses or programs (Bates, Silverblatt, Kleban 2009).  This green student survey reveals how they view sustainability in their business curriculum, including questions regarding green job interviews and green job offers.For a number of years, articles have been addressing concern for American universities’ need to include sustainability into courses and curriculum. Professor David Grayson, director of the Doughty Centre for Corporate Responsibility at the Cranfield School of Management, went so far as to say, “Schools ignore sustainability revolution.”  He added that “Of the more than 10,000 business schools worldwide, only a handful have seized the moment” (Grayson 2010).  Bjorn Edlund wrote “Schools are blind to the sustainability revolution” he pointed out that “... business schools are late in discovering – and acting on – the need to develop sustainability segments in their offerings” (Edlund 2010). 

 

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The Bullwhip Effect: Is there a Solution?

Dr. Syed Shahabuddin, Central Michigan University, Mount Pleasant, MI

 

ABSTRACT

Many researchers are concerned about what causes the bullwhip effect and, more importantly, how to reduce or eliminate it. The bullwhip effect has undesirable consequences for the supply chain, such as inaccurate forecasts, inefficiency, and waste.  Even though the bullwhip effect can be explained, it cannot be controlled, at least not in the current business and economic climate. For good or ill, control would require a degree of cooperation and openness among all members of a supply chain that is antithetical to the secrecy and competitiveness of free-market systems. Therefore, we must be satisfied with better understanding the causes and consequences of the bullwhip effect.  The bullwhip effect is a major concern for companies in a supply chain. The bullwhip effect has been defined as “demand order variabilities in supply chains are amplified as they move up the supply chain” (Goyal, 2002). In other words, the bullwhip effect refers to the fluctuation of orders (and thus inventory) as they move up the supply chain and as each organization reacts to solve, from its own perspective, its inventory or production problems. This variability becomes more severe when there are many members in the supply chain. The bullwhip effect is a concern for supply chain members, because variability of demand within the chain creates too much inventory and an inefficient supply chain.

 

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Profiting from Market Flash Crashes

Dr. Zi “Nancy” Ning, Delaware State University, DE

Dr. Alan L. Tucker, Fudan University, Shanghai, China

 

ABSTRACT

On 6 May 2010, from 2:42 p.m. to 2:47 p.m., New York time, the Dow Jones Industrial Average dropped by over 600 points, or about 6 percent, and the stock prices of eight major companies in the S&P 500 fell to a penny per share.  Twenty minutes later, most of that decline had been regained.  In all, over $1 trillion in market value temporarily disappeared.  Despite numerous governmental investigations and recent regulatory changes including the introduction of new circuit breakers and the elimination of stub quotes, many experts continue to opine that market flash crashes are likely to reoccur.  In this paper we analyze a derivative product designed to profit from any future flashes.  On 6 May 2010, from 2:42 p.m. to 2:47 p.m., New York time, the Dow Jones Industrial Average dropped by over 600 points, or about 6 percent, and the stock prices of eight major companies in the S&P 500 fell to a penny per share.  Twenty minutes later, most of that decline had been regained.  In all, over $1 trillion in market value temporarily disappeared.  If this disturbing event was a single, isolated episode that investors would never be subjected to again, then one could arguably shrug it off as merely an unfortunate few minutes of heightened anxiety and thereafter use the event as fodder for comic relief. (1)  Unfortunately, however, the 6 May 2010 flash crash may not have been an isolated event and may in fact reoccur.  For example, on 2 June 2010 the stock of Diebold, a technological services company, experienced a mini flash crash, plunging 35% (from $28 to $18) and recovering fully within minutes.

 

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Analyzing Domestic Digital Divide in Turkey

Dr. Cigdem Aricigil Cilan, Istanbul University, Istanbul, Turkey

 

ABSTRACT

The rapid development and change in information technologies in Turkey has led to an increase in IT usage rates in recent years. A look into the recent increase in rates of computer and internet use reveals a geometric growth. Numerous studies emphasize that the use of information technologies in a country is parallel to its level of development. Today, the "level of information technologies" is considered one of the key indicators to measure development. The differences in use of technology between countries and/or differences in access to and use of information technology between individuals in a country have introduced the Digital Divide concept. The difference between countries is called International Digital Divide whereas the differences between individuals in a country are called Domestic Digital Divide. Based on variables (age, gender, education, income, place of residence (rural or urban)) that determine the levels of access to and use of information technologies in Turkey, the purpose of this study is to analyze the country’s Domestic Digital Divide. For this purpose, the survey data from the European Social Survey conducted in Turkey in 2008 and published in 2011 were used and Categorical Data Analysis techniques are applied as statistical methods.  The level of Information Technology (IT) access and use vary among individuals in many countries. These differences usually stem from individuals’ demographic variation. This situation known as Digital Divide is a result of differences in age, gender, education, income and place of residence (rural or urban). This study aims to measure the Digital Divide which is believed to be an outcome of such differences. With the rapid developments in information technologies the Digital Divide has become an important issue.

 

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Social Risk and Female Entrepreneurs in Kerala, India: A Preliminary Assessment

Dr. Roshni Narendran, University of Wollongong, Australia

 

ABSTRACT

The aim of this paper is to highlight the concept of social risk in the literature of female entrepreneurship. In most studies, entrepreneurial risk is considered to be related to monetary concerns, but sociological risks are overlooked. The risks associated with social challenges will be discussed in this paper. First, a conceptual model is developed with the help of the literature review. This conceptual model is further explained with the help of a qualitative analysis that was carried out in the state of Kerala. This South Indian state is renowned for the high social status enjoyed by women; therefore, it was considered a suitable platform for this study. This study is derived from a large data set, from which the responses of 40 female entrepreneurs are analyzed in this paper. Five social risk factors were identified: mobility constraints, male hegemony, institutional void, perceived discomfort, and social stigma. The paper concludes with recommendations for policy makers and researchers.  This paper develops the theoretical concept of social risk and applies it to the situation of Indian female entrepreneurs. Even though the Indian economy is growing, a considerable number of Indian women are in poverty and are vulnerable to abuse and gender discriminatory practices (Cossman & Kapur, 1993; Holmes, Sadana & Rath, 2010). On the other hand, India carries a history of renowned women prime ministers, businesswomen, and actresses (Ghose, 1994; Ghose, 2007; Tan, 2011). Nonetheless, these women do not represent the entire population.

 

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The Immediate Feedback Assessment Technique (IF-AT): An Innovative Teaching Technique for Human Resource Management Students

Dr. Anna Blackman, James Cook University, Townsville, Australia

 

ABSTRACT

This paper aims to further contribute to the growing literature on Team Based Learning in higher education and employs the highly useful Instant Feedback Assessment Technique (IF-AT) in a study with a group of undergraduate university students in a Strategic Human Resource Management class at an Australian university. It was found that through the use of Team Based Learning and the incorporation of the IF-AT students’ skills in the areas of communication, overall learning, cognitive and interpersonal skills through the use of teams or groups of students was enhanced.  Suggesting that the potential of instant feedback could help to foster student engagement, encourage interaction between students and provide immediate feedback on student understanding.  Business needs have changed and so have the knowledge and skills required of business school graduates. “The traditional model of business education, where professors lecture and students work individually with little interdependence with respect to their performance and grades is not in line with the business community’s needs” (Siciliano, 2001:8).  This realisation has resulted in recommendations that curriculum and teaching methods be modified to enhance students’ skills in the areas of communication, cognitive and interpersonal skills through the use of teams or groups of students(J. Kunkel & Shafer, 1997; Siciliano, 2001). 

 

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Professional Morality: Perceptions of Turkish Teachers

Dr. Feyza Doyran, Bahcesehir University, Istanbul

 

INTRODUCTION

We all want to have a “better world”. From educational perspective, in order to have a “better world”, we need better educational systems so that we can have “better people” in order to create a “better and a moral world” to live in. Teachers serve as moral agents in the classrooms; thus, they have the most important role as they are the ones who pass on the moral values to kids.  Students tend to identify themselves with their parents and of course with their teachers from the very early ages. As time goes by they encounter different people as their teachers and their character development partially is shaped with these encounters. We cannot determine on behalf of the students who they should take as a model and imitate so our responsibility should be, first of all, to become morally “better” people as human beings and as teachers, to demonstrate morally appropriate behaviors and professional morality and to design pre- and in-service teacher training programs and teacher education curricula which would incorporate courses emphasizing moral values and behaviors.  Teachers’ professional morality is a very important issue in all kinds and levels of educational settings. Nevertheless, this is usually not  a topic on its own to be dealt with in a separate course. It deserves special attention and more emphasis, especially if we want to have “better” people around. At present, some teachers may or may not direct special attention to moral issues in their courses.  The aim of this article, therefore, was to find out about the current understandings and perceptions of novice and experienced teachers, and students who are prospective teachers.

 

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North American Economic Integration: NAFTA and Beyond

Dr. Igor M. Paramonov, Southern Alberta Institute of Technology, Calgary, AB, Canada

 

ABSTRACT

This paper examines various possibilities for future economic integration within and beyond the North American Free Trade Agreement (NAFTA).  Previous publications have suggested three potential trajectories including development within the envisioned original structure, deepening, and widening of NAFTA (Clement et al, 1999). It is necessary to revisit these directions while summarizing major developments and new perspectives.  Vision and hard work are required for NAFTA to remain one of the most economically competitive regional trading arrangements in the world.  In addition to NAFTA, each member nation has pursued its own plans to integrate with countries and regions beyond North America.  The most recent developments involve trade negotiations between Canada and the European Union, as well as both Canada and Mexico’s considerations to join the nine countries of the Trans-Pacific Partnership Pact.  The United States cooperates with a group of smaller developing economies within the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). This paper presents ongoing analysis of governmental, academic, and other sources for the purpose of teaching in the field of international business, including the uncommon course of “Business under NAFTA.”  Is the “Age of NAFTA” over?  This is a legitimate question to ask in an era where both Canada and the United States are seeking closer integration with countries beyond North America.  NAFTA is disappearing from the headlines and radars of both the mass media and academics. 

 

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Scheduling the Bottleneck of a n-Stage Process

Dr. Norman E. Pence, Professor, Metropolitan State University of Denver, Denver, CO

 

ABSTRACT

 This paper discusses a scheduling algo­rithm that will minimize the total preparation (set-up/tear-down) time for the bottleneck of a n-stage process involving multiple products.  Three conditions sufficient for an optimal solution are presented and the proof of the sufficiency is by induction.  There are two general problems addressed by this paper.  One is the development of a generalized algorithm to schedule the bottle­neck of a n‑stage process, and the other is the development of a generalized n‑stage schedul­ing procedure to schedule a n‑stage process.  It is appropriate, at this point, to present a generalized scheduling algorithm that can be used for a variety of production problems.  This algorithm should have a name that is suitable for any of these production scheduling situa­tions.  Conditions.  A collection of products, each requiring a certain amount of processing time, needs to be processed through a machine that is the bottleneck in a n‑stage process.  Prepara­tion (set‑up/tear‑dow­n) time must be applied before the machine can process the next prod­uct.  Preparation (set‑up/tear‑do­wn) time is substantial and costly, and the total preparation time for a collection of products is a function of the sequence of the products.  A single product quality variable determines the preparation (set‑up/tear‑down) time.  The last product processed in the previous production schedule through this bottleneck is known.  Objective.  Schedule the bottleneck to minimize the total amount of preparation (set‑up/tear‑down) time for a collection of products.   1. Determine the products to be pro­cessed.   2. Identify the product quality variable influencing preparation (set‑up/ tear‑down) time.  3. Select a unit of measure for this prod­uct quality variable and assign a nu­merical value to each of the prod­ucts in step 1 according to this prod­uct quality variable.  

 

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Risk and Diversification in International Construction

Vahid Faghih, Texas A&M University, TX

Amin T. Vahdat, Texas A&M University, TX

 

ABSTRACT

Market diversification is considered as a method to reduce risks regarding to the portfolio and projects. The diversification strategy of firms might affect revenue and market new entries of the companies. Unfortunately, there are few empirical findings regarding diversification of international construction companies. The current study performs an empirical analysis on diversification of international contractors and design firms. The study identifies (1) the pattern of contractors classified into business types, (2) the relationship between diversification level and size of the company, and (3) market entry strategy of US firms. The empirical study findings may be a start to investigation of diversification strategies of construction companies.  There is also an implied understanding that risk is something that can be identified.  In reality it seems that risk is not only identifiable and worth managing, but well managed risk can save millions of dollars on a company’s balance sheet. Given that fact, companies world-wide put a great deal of effort into identifying, analyzing, preparing for and defending against the adverse effects of risk.  One tried and true method for countering risk associated with market volatility is diversification.  Diversification in finance and investment circles is defined as a risk management technique that mixes a wide variety of investments within a portfolio. Diversifying will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.  It is also believed that diversification plays the same sheltering role in a corporate setting. 

 

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The Relationship Between Motivational Tools and Job Satisfaction

Dr. Harun Demirkaya, Kocaeli University, Turkey

 

ABSTRACT

In today’s world of ruthless competition, the survival of any corporation depends on the performance and the effectiveness of human resources and job satisfaction is one of the primary elements that render human resources functional and effective in business life. It is influenced by motivating factors, and those factors eventually play a significant role in determining the level of job satisfaction. Motivational management, which aims to encourage employees to effective and productive working, utilizes various motivating factors for this purpose.  The purpose of this study which was conducted on a sufficient number of employees of a company by using the questionnaire method is to probe the relationship between motivational tools and job satisfaction in order to determine what types of modern motivational tools lead to various levels of job satisfaction. The results of the survey on a company reveal that motivational tools are not used effectively enough to ensure overall job satisfaction.  Today, businesses of the modern world are not, by nature, organizations that consistantly maintain their historical functions but they have become enterprises demanding scientific studies which project the future instead. The destiny of business is shaped by servants who gravitate towards studies aimed at leveraging the competitive power and by bringing new experiences into the play. Accordingly, transformation of organizational structures is accompanied by change of managers, and steers them into a guiding and supporting role rather than a controlling one.  Ordinary workers carry out assigned task but those who are raising a competitive superiority are those who go beyond the regular task and exert themselves to the utmost in order to make difference. Enabling workers to do more, yet specifically in a voluntary and intentional manner, has always been the key issue of management thinkers and managers.

 

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Treatment of Inflation in Investment Calculations

Dr. Laszlo Karpati, Professor,  Budapest Business School, Hungary

Dr. Laszlo Kozar, Professor,  Budapest Business School, Hungary

Dr. Krisztina Zimanyi, Professor, Budapest Business School, Hungary

 

ABSTRACT

The objective of the paper is to give recommendations regarding the treatment of inflation for calculation of a long-term investment. The most important figure to evaluate investments’ financial result is the Net Present Value (NPV). The main objective of the paper is to critically evaluate the methods in literature regarding the treatment of effect of inflation and to offer new methods for the appropriate treatment of inflation for long-term physical investments’ calculations. In order to evaluate the procedures suggested by different articles, the authors carried out a series of simulations (with different price and cost indices) in connection with the treatment of inflation in NPV calculations.  The objective of the paper is to give recommendations regarding the treatment of inflation for calculation of a long-term investment. The longer of the time span of the investment, the more important is to take into account the inflation effect on the financial achievement of the investment. The most important figure to evaluate long-term investments’ financial result is the Net Present Value (NPV). The NPV is the most widely accepted calculation method in connection with long-term investments, especially in case of physical ones. The main objective of the paper is to critically evaluate the methods in literature regarding the treatment of effect of inflation and to offer new methods for the appropriate treatment of inflation for long-term physical investments’ calculations.

 

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The Continuing Backwardness of Eastern Europe: A Search for Institutional Explanations

Dr. Edwin C. Moore Jr., Chair, Management and International Business, Northwood University

Dr. Pesi Amaria, Consultant

 

ABSTRACT

The purpose of this paper is to generate a dialog and discussion of institutional economic research methods concerning the New EU countries. The paper presents a discussion on neo-classical research and concepts and institutional economic research and concepts. Comparisons and contrasts of Old EU and New EU countries development are offered. Finally a discussion specific to the evolution and history of the New EU countries is offered. Two major issues are discussed concerning the short time period of available economic data and the limited number of very diverse countries which makes comparisons difficult.  The purpose of this paper is to explore possible reasons why Eastern Europe (EE) has failed to develop as rapidly as was believed in 1989 with their new found freedom and independence from Soviet influence. While the newly independent Eastern European countries had much support as well as political and economic institutions imported from the West, many EE countries have had dismal economic performance to date.   This paper will focus on the success of formal institutional building and if the informal institutions and history of the region supported the formal institutions that were being imported. Much of the research referred to in this paper supports the notion that the informal institutions of a society need to be aligned with the formal institutions that are created. The assumptions of neo-classical economic analysis have to be considered and do they, independently, predicting economic growth. 

 

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The Commitment of Investment Funds in Implementation of Accounting Disclosure Requirement at Jordanian State Universities

Dr. Jamal Adel Al-Sharairi, University of Al Al-Bayt, Amman, Jordan

 

ABSTRACT

The study aimed to identify the extent of the investment funds commitment in the Jordanian public universities to implement the accounting disclosure requirements, a questionnaire has been designed for this purpose and distributed to preparers of financial statements, who are (40), the recovered questionnaires which were appropriate for analysis reached (36) questionnaires, with a recovery percentage of (90% ).A questionnaire data was analyzed by using a (SPSS) and a number of statistical techniques through descriptive statistics, arithmetic means, standard deviations and percentages, in addition of using the (One-Sample-T Test) to examine the hypotheses of the study. The results of the study showed that the obligation to apply the accounting disclosure requirements have been achieved with low degree and that there are constraints limiting the commitment of investment funds in Jordanian public universities in applying the accounting disclosure requirements. The most important recommendations of the study are the need to work on the independency of investment funds from the university administration, thus contributing to begin applying the accounting disclosure requirements.  Investment funds in public universities have witnessed in recent times a significant increase of investment activities, particularly in light of the difficult economic conditions experienced by the Kingdom in general and the public universities in particular and the rationalization of government support for universities and lack of support by private companies in Jordan and so-called social responsibility, which called the activation of these funds and to find other ways of income for universities. 

 

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An Assessment of the Impact of Rice Supply Chains on Yield in the Local Rice Industry in Ghana

Jonathan Annan, Kwame Nkrumah University of Science & Technology, Ghana

Eric F. Oteng-Abayie, Kwame Nkrumah University of Science & Technology, Ghana

 

ABSTRACT

This study assessed the local rice supply chain system with the view to identifying the actors and their roles, the production, processing and marketing systems involved as well as the constraints and prospects therein. The study also estimated the impact of the supply chain variables on yield (quality, quantity, productivity) of local rice.  It was established that there is an inefficient local rice supply chain, dominated by small-holder producers, millers and marketers, with other major actors operating from the fringes and poor information flow along the chain. The findings show that variables such as age of respondent, type of actor, farm size, extent of use of mechanization and type of cropping system practiced are determinants of yield and quality of local rice in Ghana.  The production of rice has become very crucial in the fight against poverty and hunger; its usefulness is exposed in both national security and calorie consumption concerns. As a result, world importation and supply of rice has appreciated significantly following the onset of the green revolution in the 1960s. Over time, successive governments have also sought to promote rice production to address food security, enhance import substitution and reduce poverty in Ghana. By 2010 for instance, policy target was to reduce importation of the staple by 30% whilst doubling annual domestic output by 2018. Indeed, current world market trends for agricultural produce show high retentive benefits for countries with more organised and developed supply chain networks.

 

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Nominal Output Targeting

Dr. Mahmoud Araissi, Lebanese American University, Beirut, Lebanon

 

ABSTRACT

In this paper a macro- economic model in the area of monetary policy game theory is extended to one-sided dismissal rules concerning observed nominal output targets for the central banker.  Such a rule is shown to reduce inflationary bias if the central banker perceives her reappointment chances as being strong and is preferred to discretionary monetary policy.  The inflation bias inherent in agents in the economy, when they realize the incentive of monetary authorities to create monetary surprises, is responsible for what is known in this literature as credibility problem of monetary policy. Recently, there has been an increased interest in targeting easily observed and  less sensitive to monetary policy nominal target such as output (GDP) rather than inflation. We consider "trigger mechanisms" for firing the central banker, namely, nominal output targeting. This helps to stabilize the probability of dismissal of the central banker since it targets a more stable variable than the inflation or the monetary base. For example, in the event of a negative supply shock, real output decreases but inflation increases, leaving the nominal output little affected. In the case of a positive supply shock, the rate of real output growth increases and the inflation rate decreases, leaving the sum of the two rates not much affected. This makes nominal output targeting a more forgiving procedure than inflation targeting under either type of supply shocks.  

 

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Involvement Levels and Constraints: A Study on Speed Skating Players

Dr. Chien-Hung Wu, Chung Chou University of Science and Technology, Taiwan R.O.C.

Dr. Ching-Tang Wang, National Taiwan University of Physical Education & Sport, Taiwan R.O.C.

Chih-Cheng Tseng, Tajen University, Taiwan R.O.C.

 

ABSTRACT

 The purpose of this study was to analyze athlete involvement levels and constraints in the roller sport of speed skating among those who competed in the 20th President's Cup Roller Sports Tournament in Taiwan in 2010. Participants were 245 age over 13 and older (junior, senior high school and college students and others) who engaged in the roller sport of speed skating. Findings showed that there was a negative, low level correlation between the respondents’ involvement level and constraints. In addition, the internal constraints had a significant indicated function to the factor of involvement levels. Overall, results shower an important link between athlete involvement levels and constraints.  The purpose of this study was to analyze athlete perceptions of the constraints of involvement in the roller sport of speed skating among those who competed in the 20th President's Cup Roller Sports Tournament in Taiwan in 2010. Since 2001 the people in Taiwan had experienced a higher standard of living due to a favorable economic climate. They have experienced an increase in the national educational level of its population and additional leisure time (Wu, 2009). The international media has brought much attention to the sport of ice speed skating. The five-day work week, which was established by the government in 2001, has resulted in a life style change for the Taiwanese working class which has enabled them to participate in more leisure activities (Wu, 2009).  Ice speed skating has generated a large public interest since the 2002 Salt Lake City Winter Olympics and has quickly become popular in the United States (Loy, & Della-Giustina, 2003).

 

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Effects of Location and Animation of Internet Banner on Clickthrough Rates

Dr. Chatpong Tangmanee and Pakorn Prapakornkiat

Chulalongkorn Business School, Chulalongkorn University, Bangkok, Thailand

 

ABSTRACT

Internet banners have been under numerous examinations in order to learn which design features could lead to high rates of clickthrough. Previous research has reported effects of banner animation and banner location; however, results are still inconclusive. This study thus attempts to compare clickthrough rates (1) between those on animating and on stay-still banners and (2) between those on banners placed on top and in the middle of a screen.  Data from a quasi experiment confirm (1) the difference between the clickthrough rates on animating banners and those on stay-still banners is not significant, but (2) the difference between the rates on banners positioned on the top and those positioned in the middle of the screen is statistically significant at a 0.05 level.  In addition to extending insight into design issues of Internet banners practicing in Thailand, practitioners could adjust their online advertising campaigns based on the study’s findings.  According to several estimates, online advertising revenue will (1) outperform typical broadcasting channels, and (2) be at least US$  billion in 2012 (Internet Advertising Bureau, 2011). Among various forms of this online commercials, banner advertisement has become one of the most common formats (Calisir & Karaali, 2008). The banner advertising refers to a display of marketing messages in any form of presentation that appears on a computer screen while ones visit a webpage (Nichpornkul, 2000). Given the standard tools for online advertising campaigns, banners have received remarkable attention on design issues (Hong, et al., 2007; Yaveroglu & Donthu, 2008; Owens, 2011).

 

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Is Australian CEO Remuneration Linked to Company Productivity?

Damian Tien Foo Niap, RMIT University, Australia

Dr. Dennis Taylor, RMIT University, Australia

Dr. Clive Morley, RMIT University, Australia

Sang Ho Kim, RMIT University, Australia

 

ABSTRACT

The objective of this study is to investigate if there is a link between Australian CEO remuneration and productivity during a period of economic crisis. While there have been numerous studies on the relationship between CEO remuneration and conventional company performance measures such as return on equity which focus on a particular stakeholder, the shareholders, there is limited research on the link between CEO remuneration and company productivity which covers a broader range of stakeholders such as employees and the government. Our results indicate that there is a positive relationship between CEO remuneration and total productivity.  The remuneration of executives, particularly that of the chief executive officer (CEO), has for years attracted intense interest from the public media (Clarkson et al. 2006). The focus has increased following the global financial crisis (GFC) of 2008 especially in regard to what is viewed as the excessive remuneration of CEOs for poor performance (Girasa and Ulinski, 2009). The interesting question is whether CEOs in Australia really are rewarded for failure of financial returns to investors or whether there is a link with their companies’ productivity during a period of economic turbulence. The objective of this study is to investigate whether there is any link between CEO remuneration and companies’ performance in terms of their productivity, controlling for the influence of companies’ corporate governance structures during a period of financial crisis. The motivation for this study is twofold. Firstly, to the best of our knowledge, there is limited empirical research on CEO remuneration and the link with companies’ productivity (Gielen et al. 2009, Cardoso et al. 2011). Most prior studies have focused on determining whether there is a link between executives’ remuneration and financial profitability, rather than productivity for example Merhebi et al. (2006).

 

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Electronic Portfolios in Business Schools

Dr. Eleanor J. Flanigan, Montclair State University, Upper Montclair, NJ

 

ABSTRACT

An effective tool used by business students eager to introduce themselves into the professional work world is an electronic portfolio (ePortfolio).  A technologically sophisticated portfolio can be used to supplement the rather sparse chronological or thematic listing typically found on a resume.  The career portfolio is a showcase of work focused on documenting the diverse items displayed to enhance opportunities for employment.  This type of portfolio is totally dedicated to highlighting achievements, relevant work samples, and one’s accomplishments.  Although academic portfolios can serve many purposes, the career portfolio is the one most appropriate for the business professional and for those just beginning their working lives.  This paper will describe ideas for both the process of developing a career ePortfolio along with dealing with the topics relevant to the final product.  It will address question such as "Why create a career portfolio?", "What should be in it?", "If Web 2.0 technologies are used, what are the issues?" "|How are these Web 2.0 Webfolios created, stored, and disseminated?"  Unless people are unusually reflective and deliberately trace their intellectual and their professional growth, most move along and go with the flow of daily living and daily work needs.  Many are not consciously aware of the paths that lead them from one level of knowledge or from one career to another.  Whereas professionals keep pace with new requirements placed upon them, most students move ahead according to the required collegiate curriculums. Students take the prescribed courses as directed without much reflection on their cumulative knowledge or recognition of the connection between these courses.  Both groups, however, accumulate valuable experiences along their paths sometimes forgetting how they actually got to some pinnacle of experience.  Important anecdotes or incidents are tucked away in memory but are not documented otherwise. 

 

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New Business Ecosystems and Innovation Strategic Choices in SMEs

Soufiane Mezzourh, University of Toulouse 1 Capitole, Centre de Recherche en Management

Walid A. Nakara, Groupe Sup de Co - Montpellier Business School, Montpellier Research Management

 

ABSTRACT

The current paper seeks to develop existing theories around innovation ecosystems, where a major focus has been the relationships between and within firms in established ecosystems. The paper extends current research to consider the manner in which new business ecosystems develop to support innovation and strategic choice. Using case study methodology to explore keystone innovations within a French SME, the concept of « keystone innovations » is introduced and a Cytoscape model of the e-book business in France developed. Results indicate direct implications for both innovation theory and management which are explored here as the basis for future research. The originality of this work lies partly in its acceptance that new business ecosystems develop to support innovation and in the exploration of their development reported.  The examination of innovation in nature (biomimicry) as a template for artificial innovation is relatively well established. In ‘Biomimicry’, Janine Benyus gives new impetus to the bionics program initiated half a century ago (Benyus, 2002), which argues that man should replicate the genius of nature in his work. This consideration of nature in the search for developments in organizational theory can be applied to business ecosystems and – indeed – research has been developed here with considerable success. Where ecosystems are developing, clear parallels have been developed between the manner in which developments occur in nature and organizations. In nature, ecosystems are born from the co-evolution of species. In business, ecosystems arise from the co-innovation of organizations. To use the term of economist Joseph Schumpeter, innovation serves a dual function: creating and destroying ecosystems without ever reaching equilibrium – the climax, as it would be termed by ecologists.

 

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Economic Growth and Employment in the Equilibrium Labor Market

Choi Chang kon, Professor, Economics Dept., Chonbuk National University, Korea

 

ABSTRACT

It is often argued that job creation by economic growth is not so large as in the past, which is measured the so called “employment elasticity” or “employment intensity” of growth. Empirically it is estimated as growth rate of employment divided by growth rate of GDP. So far, many papers looked at data of GDP and employment growth to estimate it. They find indeed that the measured value of elasticity has decreased in most countries. While there have been many empirical studies about that issue, no study has identified the structural determinants of employment elasticity. That is, they did not look upon the question of what determines the employment elasticity. This paper shows theoretically that employment elasticity is determined by the structure of technology and preference, thus, the labor demand and supply. The theoretically derived formula of employment elasticity allows us to identify its determinants. In testing and applying the theoretical result, first, some calibrated values of parameters and estimated values of labor supply structure found in other studies are applied to the theoretically derived formula to calculate the employment elasticity. And we compare the empirically estimated elasticities and theoretically calculated ones. Secondly, we try to identify which determinant has contributed to change (allegedly, decrease in most empirical studies) in the employment elasticity.   Recently, most countries have persistent job shortage and unemployment problem. And apparently, since the employment does not increase enough while the economy grows, the phenomenon has been called as “Jobless growth”.

 

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Decision Making using Multi Criteria Decision Making (MCDM) Techniques

Rajeev Trehan and Rohit Sharma

Dr. B. R. Ambedkar National Institute of Technology Jalandhar, Punjab, India

 

ABSTRACT

Topsis and AHP are  non-conventional decision making technique which have been widely used to check whether the decision made is consistent or not. A case study for selecting an electronic item has been discussed. Cell phones of different brands / models have been surveyed and major parameters are taken as attributes for all the alternatives. The optimal alternative is selected with the application of AHP method. The priority ranking is formulated on the basis of number of parameters viz: price, camera memory, storage capacity, weight, sleekness, etc.   Decision making involves many intangibles that are required to be traded off and measured along with the tangibles for good decision making. AHP is a theory of measurement using pairwise comparisons. This technique gives result as per the judgment of experts to derive priority scales. AHP is a multi-criteria, decision making method which can be used by management practitioners and academicians  In this paper a case study of mobile phones and motorcycles of various brands have been selected having price range. The best model is selected by applying MCDM techniques considering various parameters.  Multicriteria decision-making (MCDM) methods are helpful in making important decisions that cannot be made straightforwardly. The  MCDM is based on the principle that decisions should be made by use of multiple criteria. T. Saaty created analytic hierarchy process (AHP) and the analytic network process (ANP)  by using the concept of MCDM. They are used to identify decision criteria. [18]. An MCDM model for a decision making helps the decision maker to evaluate various alternatives and decide on the best. The various alternatives are evaluated along common multiple criteria. The criteria are assigned relative weights of importance.

 

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The Study of Creating an Operational Performance Model for Restaurants Serving Afternoon Tea in Taiwan

Dr. Jiung-Bin Chin, Department of Hospitality Management, Hungkuang University, Taichung, Taiwan

 

ABSTRACT

In recent years, restaurants serving afternoon tea have gradually emerged in Taiwan, and they focus their customers mostly on youngsters, students, and women. Also, there are a lot of people want to pursue a venture of such kind of restaurants. Therefore, this study hopes to create a complete set of operational performance model for restaurants serving afternoon tea. First of all, the study conducts interviews with four categories of experts: restaurant operators, restaurant staff, performance evaluation scholars, and recurrent consumers in order to develop key performance indicators that impact the operation of restaurant business. The indicators include five inputs of core products, geographical location, parking difficulty, in-store style and service quality, as well as one input of product prices. And then the study uses Data Envelopment Analysis (DEA) to study 12 restaurants with same natures in Taichung, Taiwan by conducting a projection analysis of inputs and outputs as well as analyzing and sorting the pros and cons of these 12 restaurants; and finally, the study proposes the recommendations.  Afternoon tea originated from the United Kingdom, and only the ancient noble would enjoy afternoon tea. Nowadays, it has become popular in Taiwan; initially the restaurants focused on the female celebrities by selling mainly high-priced relative products. In recent years, restaurants of parity have gradually emerged focusing the customers on youngsters and students; and such marketing practice has successfully attracted the public to consume.

 

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The role of Trading-House Structure in Commodity Financing

Prof. Dr. Laszlo Kozar, Budapest Business School, Department of Commerce, Budapest, Hungary

Peter Sutak, University of Debrecen, Debrecen, Hungary

 

ABSTRACT

In 2009, firstly, due to the financial crisis that had outgrown itself into an economic crisis, secondly, as a result of a significant loss of confidence in certain financial support institutions, the external financing of the agricultural sector had decreased significantly. As a result of this, the sector financed by an already moderate propensity to risk exposure had further financing sources withdrawn, at the time, when, due to the effect of the crisis on the overall economy it required additional financing.  The tendencies of “activities” displayed on the part of financers had once again raised those questions that centre on the relationships and cooperation models of the financial-, financing- and business sector.  In the following, we shall be focused on the direct and indirect financing alternatives of the domestic agricultural sector by commercial banks, their market assessment and risk analysis.  The complexity of the subject necessitates an explanation on the reasons behind the decreasing financing activities and their analysis, emphasizing the direct effects and sector specific characteristics emerging in relation to the agricultural sector.  The Hungarian agricultural sector underwent significant changes in the nineties. The transformations of the production and property structure started the same time with the opening of the price scissor of industrial-agricultural products, with the narrowing of internal and external market possibilities, with the radical decrease of profitability within the sector, with the significant diminishing of financial possibilities. Unfavorable economic impacts were often increased by environmental factors that affected production. 

 

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Competitive Advantage in the African Market:  The United States versus China

Dr. Falih M. Alsaaty, Bowie State University, Maryland

Dr. Granville Sawyer, Bowie State University, Maryland

 

ABSTRACT

The speed at which China is achieving its economic goals has in recent years attracted the attention of scholars and policy makers in the United States, European Union, and elsewhere around the globe. The attention is largely attributed to the belief that China is steadily becoming a formidable and potentially dominant player in the global economy, as evidenced by its trade, investment, and foreign aid policies in Africa. China is undoubtedly a feared rival from an economic standpoint. What makes the country so challenging is its relentless drive for global superiority. This is apparently taking place at the expense of business firms of other nations. China’s competitive advantage is mainly nurtured by its large and growing population, abundance of natural resources, influx of foreign direct investment, large trade surplus and seemingly undervalued national currency. This paper explored the competitive advantage – as measured by merchandise exports – of the United States relative to China in Africa. It is found that U.S. market share in Africa is gradually declining while that of China is rapidly expanding. U.S. firms ought to pursue more aggressive strategies to improve their competitive advantage in the continent.  China’s rapid ascendance to an influential global economic position puts it inevitably in direct competition with many countries including the United States. This is particularly true with respect to China’s inroads into African. China is vying for market opportunities in the continent, as is the case with other countries. Nations cooperate among themselves and, at the same time, compete with each other for economic prominence. What makes the Chinese case unique – as far as Africa is concerned – is that the Chinese government through its centrally planned agencies has been courting African governments to establish long-term strategic ties with individual countries.

 

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Attitude, Motivation and Decision Making and their Relationship to Trust in Family Businesses

Dr. Josiane Fahed-Sreih, Lebanese American University, Byblos, Lebanon

 

ABSTRACT

Trust between shareholders, and trust between management and employees is crucial to the functioning of organizations. Scholars from various time periods and diversity of disciplines seem to agree that trust is highly beneficial to the functioning of organizations and especially family businesses. In this paper a definition of trust and a model of its antecedents and outcomes are presented, which differentiate trust from similar constructs. This study will focus on how trust might have positive effects on attitudes, perceptions, and behaviors within organizational settings. It also highlights how trust can affect the speed of decision making. A survey questionnaire is used as the research instrument. Results and implications of findings are discussed.  Many family business studies focused on the issues inherent to family businesses such as succession, balancing family with professional expertise, but most have realized that the psychological elements are very important in family businesses (Cohen 1974, Dyer 1986, Rosenbatt et al. 1985). Some argue that the greatest threat to the continued survival of family businesses is not so much linked to technology, competition and customers as much as it is linked to the family relationships (Hoover et al. 1999).  Scholars expressed a great deal of interest in trust. But its study in organizations has remained problematic for several reasons: problems in definition of trust itself; lack of clarity in the relationship between risk and trust; confusion between trust and its antecedents and outcomes; and failure to consider both the trustor and the trustee (Schoorman et al. 1995).

 

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International Analysis of Factors Affecting Child Labor

Lauren Urbish, Florida Atlantic University, Boca Raton, FL

 

ABSTRACT

The focus of this research paper is show a variety of factors that affect child labor.  The research outcomes prove which factors to be most significant in eliminating child labor around the globe.  The factors were chosen from the World dataBank website.  This selection is applied to 248 countries, during a ten year time period, 2001-2010.  The topic of child labor was originally chosen because it is incredibly interesting to study.  Child labor is a major part of discussion in any economic development course, due to its sensitivity and all the outside forces affecting it. The subject is important, because child labor is a crucial stage of every country’s economic growth.  All first world countries have experienced child labor at some point in their history.  As many countries have evolved into a technologically advanced, internet powered, app frenzied world, some countries have not.  Second and third world countries are still developing.  Many of these lower income countries are transitioning from an agricultural economy to a more industrialized one.  Hoping from there, to transition to a technology advanced economy.  One major problem a country faces during a transition from a farming society to an industrialized manufacturing one is: child labor.  Thanks to activists and the internet in the 21st century, the world has never been more aware of this practice.  People have never been more concerned than they are now to end this cruel custom of forcing children to work.  The earliest recorded reports of child labor date back to 1832 from Great Britain.  For many developed countries, child labor skyrocketed during the 1800’s. 

 

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State Revenue Growth Variability

Dr. Sanela Porca, University of South Carolina Aiken, SC

Dr. Donald Schunk, US Bank National Association, Minneapolis, MN

 

ABSTRACT

Over the course of every business cycle, U.S. state budgets face episodes of revenue instability. Revenue surprises during economic prosperity lead to expanded state government spending and encourage tax cuts; then as the economy slides into recession, state revenue shortfalls trigger sudden, debilitating spending cuts. Because economic cycles create a climate of ongoing revenue uncertainty, government decisions inevitably take place in a crisis-like atmosphere. Since volatility ultimately plays an important role in shaping state budgets, the determinants of revenue instability should be better understood.   Over the course of every business cycle, U.S. state budgets face episodes of revenue instability. While all states (except Vermont) require balanced budgets, economic expansions and contractions continually confound revenue forecasts and cause constant changes to spending and tax policy.  Because economic cycles create a climate of ongoing revenue uncertainty, government decisions inevitably take place in a crisis-like atmosphere. This often leads to the unplanned, inefficient (i.e. across-the-board) budget cuts that typify state policy during fiscal crises. Yet when the economy expands, the need to reform the budgetary process is forgotten as revenues rise above the long-term trend. Stable and predictable revenue to run state government programs is elusive.  Since volatility ultimately plays an important role in shaping state budgets, the determinants of revenue instability should be better understood. Beyond cyclical problems, revenue volatility may be exacerbated by structural issues. In particular, a state’s particular mix of taxes may engender fiscal instability if it is weighted too heavily toward volatile revenue sources. Thus, the relative shares of sales, income and other taxes that comprise total revenue may influence revenue fluctuations across states. The tax structure—the revenue portfolio and its diversification---remains a political choice, even if cyclical instability remains unavoidable.  This paper investigates the causes of revenue variability across U.S. states, focusing on the effects of economic volatility and revenue source diversification.

 

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Competitive Analysis of the Turkey

Ana Bulic, University of Zagreb, Faculty of Economics and Business, Croatia

Madina Abylkassymova, Ministry of Economic Development and Trade, Kazakhstan

Radu Tatucu, London Business School, UK

 

ABSTRACT

The paper, in general, deals with Turkey’s competitive advantages. Specifically, the focus is on Turkish economy and its significance in the global economy, or to be more exact, on Turkish economic growth and competitiveness. Namely, Turkey is a middle-income country with good endowments such as strategic location, large domestic market, young population and some natural resources, but dependent on oil and natural gas imports. Turkey had sustainable economic growth after macroeconomic stabilization and structural reforms since 2001. The economy is becoming increasingly diversified and export-oriented with large FDI inflows. Turkey’s competitiveness is limited by its vulnerability to external shocks, quality of human capital and R&D capacity, constraints in national business environment resulting in a large share of informal economy. The main purpose of this paper is to give an insight into how the Turkish economy will keep its competitiveness, achieve its potential to meet growing domestic and foreign demand, develop further its production and increase the skill level of labor force in order to attract even more FDI.  The Republic of Turkey is a transcontinental Eurasian country, strategically positioned at the intersection of Europe, Central Asia and the Middle East and surrounded by four seas.

 

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Subsidies of the European Union funds as a Tool to Enhance Competitiveness of Companies in the Czech Republic

Milan Sedlacek, Masaryk University, Brno, Czech Republic

 

ABSTRACT

The article focuses on analysis of drawing subsidies from the European Union funds by companies of the manufacturing industry in the Czech Republic. Moreover, on the basis of the data obtained through primary research, a comparison of the way companies with above-average and substandard rate of competitiveness utilise the subsidies has been carried out. The conclusions thus give evidence not only about the utilisation of the subsidies as a tool to enhance competitiveness of a company, but also about different attitudes towards such method of financing, depending on the success rate of a company.  The Czech Republic submitted its application for accession to the European Union on 17 January 1996, thus officially embarking on the systematic process of gradual harmonization of its own legislation with the legal order of the European Union. Progressive completion of the fixed schedule enabled the Czech Republic to access the European Union on 1 May 2004. Since that moment opportunities for Czech companies to draw subsidies from the European Structural Funds have opened up (1). In the shortened programming period of 2004 – 2006 the Czech Republic as a whole could obtain over €2.6 billion from these funds (The Ministry of Regional Development 1, 2011), while in the ongoing period of 2007 – 2013 €26 billion is to be granted. (The Ministry of Regional Development 2, 2011) The fact that the financial resources flow not only into the private sector, but provide significant support to activities in the public sector as well represents quite a unique opportunity for private companies to raise additional funds to enhance their competitiveness.  Apart from researching a group of companies, which will be defined later, comparative analysis of two subsets of that group has been carried out.

 

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