The Business Review, Cambridge

Vol. 23 * Number 2 * December 2015

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

Online Computer Library Center   *   OCLC: 920449522

National Library of Australia * NLA: 55269788

Peer Reviewed Scholarly Journal

 

Most Trusted.  Most Cited.  Most Read.

All submissions are subject to a double blind review process

 

Main Page   *   Home   *   Scholarly Journals   *     Academic Conferences   *   Previous Issues   *   Journal Subscription

 

Submit Paper   *     Editorial Team   *    Tracks   *   Guideline   *   Sample Page   *   Standards for Authors / Editors

Members  *  Participating Universities  *   Editorial Policies   *   Jaabc Library   *   Publication Ethics

The primary goal of the journal will be to provide opportunities for business related academicians and professionals from various business related fields in a global realm to publish their paper in one source. The Business Review, Cambridge will bring together academicians and professionals from all areas related business fields and related fields to interact with members inside and outside their own particular disciplines. The journal will provide opportunities for publishing researcher's paper as well as providing opportunities to view other's work.  All submissions are subject to a double blind peer review process. The Business Review, Cambridge is a refereed academic journal which  publishes the  scientific research findings in its field with the ISSN 1553-5827 issued by the Library of Congress, Washington, DC.  No Manuscript Will Be Accepted Without the Required Format.  All Manuscripts Should Be Professionally Proofread Before the Submission.  You can use www.editavenue.com for professional proofreading / editing etc...The journal will meet the quality and integrity requirements of applicable accreditation agencies (AACSB, regional) and journal evaluation organizations to insure our publications provide our authors publication venues that are recognized by their institutions for academic advancement and academically qualified statue. 

The Business Review, Cambridge is published two times a year, December and Summer. The e-mail: jaabc1@aol.com; Website: BRC  Requests for subscriptions, back issues, and changes of address, as well as advertising can be made via our e-mail address.. Manuscripts and other materials of an editorial nature should be directed to the Journal's e-mail address above. Address advertising inquiries to Advertising Manager.

Copyright: All rights reserved. No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, including photocopying and recording, or by any information storage and retrieval system, without the written permission of JAABC journals.  You are hereby notified that any disclosure, copying, distribution or use of any information (text; pictures; tables. etc..) from this web site or any other linked web pages is strictly prohibited. Request permission / Purchase this article:  jaabc1@aol.com

 

Copyright 2000-2018. All Rights Reserved

Distribution Practices of Women’s Promotion Groups in Senegal: A Role for Marketing

Dr. Nancy Haskell, Laval University, Quebec (Quebec) Canada

Yvonne M. L. Sawadogo, Laval University, Quebec (Quebec) Canada

Dr. Donald Beliveau, Laval University, Quebec (Quebec) Canada

 

ABSTRACT

In Sub-Saharan Africa, social partners and public authorities have provided assistance to local women’s promotion groups in subsistence marketplaces to assist them in producing for their own needs and, under certain conditions, to allow them to sell to the public. However, while microcredit and some basic management seminars aim at assisting these groups to engage in revenue-generating activities, they are left on their own when it comes to how to commercialise their products.  This paper seeks to, first, explore the distribution practices of women’s promotion groups in Africa and, second, analyse whether appropriate distribution practices may help them improve their commercialisation and, by extension, their revenues.  Several approaches were used to maximize the data gathered and to cross-validate information from different sources. Analysis based on the marketing literature offers a structured view of the distribution activities and challenges of three Women’s Promotion Groups (WPGs) in Saint-Louis, Senegal. Managerial implications are offered for both WPGs and supporting organisations.  There has been marked progress in reducing global poverty over the past decades. However, despite the progress realized, the most recent estimates suggest, in 2011,  more than one billion people lived on less than 1,25 USD a day (World Bank 2015a). It is therefore not surprising that poverty reduction remains a major preoccupation, especially in developing countries. Positive action programs to assist those living at or below the poverty line are numerous, initiated by supranational and national organisations as well as local authorities and organisations.  In this context, women’s promotion groups (WPGs) in developing countries, in geographical zones characterized by a strong prevalence of subsistence living,  are playing an important role in certain of these economies (Toledo-López et al. 2012). These groups pursue various objectives, many of which are economic. A number of these groups have received microcredit, and some have benefited from basic management education to assist them in engaging in revenue-generating activities. These actions are aimed at breaking the poverty cycle within impoverished communities. However,  Duflo (2010) suggests that “giving the fight against poverty to the poor” may require more context-specific action and structured evaluation if these efforts are to truly help the very poor to improve their conditions.  However,  little is known about women’s promotion groups, their operations, and the difficulties they face.  Furthermore, since promoting economic activities is the focus of much of the assistance they receive, and revenue generation is one of the ultimate goals (to allow group members to improve their living conditions), knowledge of their practices is imperative.  Unfortunately, no research was found that delves into the realities of commercialisation by WPGs.  The particular focus of this research is thus on distribution, an important element of commercialisation that is intimately related to the cultural context within which an organisation operates.  This paper first introduces subsistence marketplaces and women’s promotion groups. The multiple approaches used to collect data are described, and a profile of the three women’s promotion groups in Saint-Louis, Senegal that are the subject of this study is presented. Then a structured description of their distribution practices, both business-to-business and business-to-consumer, is presented from a marketing perspective. Finally, implications for the WPGs and for the organisations that offer them support are discussed. A consensus exists about the severity of poverty that predominates in developing countries. However, there is divergence concerning the approach to evaluate poverty.

 

Full text

 

Reducing Stock Risk with Hedge Funds

Dr. Mitchell Ratner, Rider University, Lawrenceville, NJ

Dr. Chih-Chieh (Jason) Chiu, Rider University, Lawrenceville, NJ

 

ABSTRACT

This paper tests the risk reduction properties of hedge fund investing against a sample of stocks ranging from 1990 through 2014. GARCH dynamic conditional correlation analysis indicates that hedge funds are a significant diversifier due to the consistent imperfect relationship between the hedge fund returns and the stock return indexes. Hedge funds serve as a weak safe haven in times of extreme stock market volatility. During periods of financial crisis, hedge funds also largely function as a weak safe haven. In contrast to their name, hedge funds do not provide a traditional “hedge” against stock risk.  Imperfect correlation among investments is the foundation of most asset allocation strategies. The potential benefit of portfolio diversification motivates investors to identify assets that have relatively low correlation with stocks. While stocks and bonds remain the primary assets recommended by financial professionals, investors are acutely aware that they must identify alternative assets to reap the gains from diversification. The word “hedge” in finance refers to the reduction of risk. Hedge funds were initially established to reduce the risk of stock investing. Modern hedge funds use aggressive investment strategies that are often more risky than the stock market, but still have the potential to reduce portfolio risk. As global markets continue to converge, investors need to seek out alternative assets to further gain from diversification. Hedge funds invest in a variety of securities, assets, and derivatives, both domestic and international, and are considered assets that move with relative independence from stocks.  A hedge fund is similar to a mutual fund in that it pools money from many investors and purchases securities. Unlike mutual funds, hedge funds can only be sold to accredited investors (those exceeding a minimum of wealth or institutions). Since they cater to relatively sophisticated investors, there is little government regulation of the industry. Hedge fund managers generally use very aggressive strategies and are free to invest in any type of asset (stocks, bonds, commodities, real estate, derivatives, etc.). Hedge funds increase their risk relative to mutual funds in that they frequently use leverage (borrowed funds) to increase their bets. Hedge funds appeared in the early 20th century but weren’t a consistent product until the late 1940s. While initially designed to reduce exposure to stock risk, hedge funds today are not necessarily expected to have that function. As alternative investments, however, hedge funds are expected to move differently than the stock market, and offer superior performance and/or diversification benefits compared with traditional investing. In addition to diversification benefits, hedge funds can serve as stand-alone investments. Largely the domain of the wealthy, retail investors now have the opportunity to easily purchase hedge fund-based mutual funds and exchange traded funds (ETFs). While hedge funds have outperformed the overall stock market from 1999 – 2014 (including the financial crisis of 2008), they have underperformed the broad stock market since 2009 (Copeland and Zuckerman, 2014). The perception exists that hedge funds are another tool that enhances the wealth of the rich. Regardless of wealth, this study will address the impact of hedge fund investment on a diversified stock portfolio. Using GARCH dynamic conditional correlation (DCC) this paper investigates hedge funds as a hedge, safe haven, or diversifier, against stock investment in the United States and globally from 1990-2014. F

 

Full text

 

Unintended Consequences of Dodd Frank Act When Shadow Banking Creates A Moral Hazard

Dr. Michael Ulinski, Pace University, NY

Dr. Roy J. Girasa, Pace University, NY

 

ABSTRACT

The  Dodd Frank Act was intended to stop bank that were too big to fail and spurned a smaller scale but potent banking system coined as Shadow Banking. The researcher provide background on the creation of and the potential harm of this system. Comparisons with traditional banking, pitfalls of it's use are examined and conclusions are drawn. There are a variety of definitions of shadow banking and what the term encompasses, none of which are all inclusive and are dependent on the approach one takes in its examination. The term “shadow banking” was originally coined by Paul A. McCulley in 2007 who attended the Kansas City Federal Reserve Bank annual symposium in Jackson Hole, Wyoming. The meeting to discuss the financial crisis then occurring nationally and globally focused on systemic risk and, in particular, what the author dubbed the “shadow banking system” which he noted was “the whole alphabet soup of levered up non-bank investment conduits, vehicles, and structures.”(1) In a series of Staff Reports issued by the Federal Reserve Bank of New York (“FSB”), the authors defined “shadow banks” as “financial intermediaries that maturity, credit, and liquidity transformation without explicit access to central bank liquidity or public service credit guarantees.(2)Similarly, two of the said authors in a later FSB report defined the term as “a web of specialized financial institutions that channel funding from savers to investors through a range of securitization and secured funding techniques.(3) Other definitions are comparable: “The system of non-deposit taking financial intermediaries including investment banks, hedge funds, monoline insurance firms and other securities operators;(4) “all financial activities, except traditional banking, which require a private or public backstop to operate;(5) and “The financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions.(6) Historical Setting. Traditional banking has had a checkered history having commenced at the inception of the new republic with the creation of the First Bank of the United States (1791-1811) under the leadership of Alexander Hamilton, the first Secretary of the Treasury under President George Washington. The issuance of bank notes was by state banks due to the lack of a national currency. In the seminal case of McCulloch v. Maryland(7) the United States Supreme Court decided that Congress had the right to create a bank under its power to make “all laws which shall be necessary and proper, for carrying into execution” its delegated powers under Article I of the Constitution. In the midst of the Civil War of 1861-1865, Congress enacted the National Banking Act(8) that established standards for banks including minimum capital requirements and the issuance of loans, as well as the imposition of a 10 % tax on state banknotes that effectively removed them from circulation.(9) The Federal Reserve Act of 1913(10) created the national system of banks that has existed to the present day. It required all national banks to be members of the Federal Reserve System and to maintain levels of reserve with one of the 12 Federal Reserve banks. State banks are also eligible to become members of the Federal Reserve System with all of the attendant benefits thereto including federal protection of deposits. The “Fed” conducts monetary policy, supervise and regulates banks, protects consumer rights, provides financial services to the government, financial institutions, and makes loans to commercial banks. The Great Depression that commenced in 1929 and ended with the entry of the U.S. into World War II led to Congressional inquiry concerning the causes of the said Depression.

 

Full text

 

The Potential Impact of FASB’s Proposed Changes to the Statement of Cash Flows

Dr. Roberta Cable, Professor, Pace University, Pleasantville, NY

Dr. Patricia Healy, Pace University, Pleasantville, NY

Dr. Claudia Li, Pace University, Pleasantville, NY

 

ABSTRACT

 

This research studies the impact of FASB’s proposed changes to the Statement of Cash Flows on not-for-profit organizations. Our study focuses on the change in the classification of purchases and sales of long-lived assets to operating activities from investing activities.  It examines the potential effect of this change on the cash flow from operating activities for two different types of not-for profit entities, charities and hospitals.  Our result shows that this reclassification affects different types of not-for-profit organizations differently.  Specifically, hospitals, representing the kind of not-for-profits that receive the majority of its revenues from private payments, incurred a significantly larger impact on cash flows from operating activities than did charities, representing the kind of nonprofits that receives the majority of its revenues from donations. Our study provides insights not only on not-for-profit, but importantly, on for-profit entities about the possible effects of a future FASB proposal on the Statement of Cash Flows. The Financial Accounting Standards Board (FASB) proposed major changes in the financial presentations of not-for-profits.  Working under their goals of improving the understandability and usefulness of financial statements, they issued the recent exposure draft, Proposed Accounting Standards Update (2015).  A focus of this exposure draft was to change the presentation of financial statements for not-for-profit entities as required in the Statement of Financial Accounting Standards No. 117.   Among other things, this proposal dealt with the Statement of Cash Flows, a mandatory part of issued financial reports detailing cash inflows and cash outflows during a reporting period.  Along with requiring only the direct method of reporting cash flows from operating activities, the FASB proposal required a change in classification of certain items within this statement.  Our research examined the change in classification of purchases and sales of long-lived assets as operating activities rather than investing activities for two different types of not-for profit entities, charities and hospitals.   FASB’s Statement No. 95 (SFAS No. 95), Statement of Cash Flows (1987) and Statement No. 117 (SFAS 117) Financial Statements of Not-for Profit Organizations (1993) require for-profit and not-for-profit entities to provide a cash flow statement for each period for which operating results are required.  Similar requirements are applicable to enterprises following International Accounting Standards Board (IASB) Standard No. 7, (IAS No. 7) Cash Flow Statements (1992).  The cash flow statement explains the change during the period in cash and cash equivalents, and classifies inflows and outflows relating to operating, investing and financing activities.  While the objective of FASB is to provide accurate reporting metrics, many reporting issues persist that cloud the transparency of the Statement of Cash Flows.  Specifically, limitations arise from inconsistent, and sometimes, ambiguous implementation of the three-part classification of cash inflows and outflows. Under SFAS No. 95, cash flows for business entities are classified in the cash flow statements under three activities:  operating, investing and financing.  SFAS No. 117 for not-for-profit entities also requires the same three activities.  For the most part, there are only slight differences between SFAS No. 117 and SFAS No. 95, relating to the classification of items as activities in this statement.  Alderman and Mueller (2003) state that SFAS No. 117 provides little guidance on reporting cash flows beyond that offered in SFAS 95. One exception is that donor imposed restrictions may influence activity classifications for not-for-profit entities. Operating activities include all transactions and events other than investing and financing activities. 

 

Full text

 

Reclassifications for More Meaningful Presentations of Cash Flows

Dr. Farrell Gean, Pepperdine University, CA

Dr. Fred A. Petro, Pepperdine University, CA

Virginia Gean, California Lutheran University, CA

 

ABSTRACT

The authors of this paper continued to receive positive feedback from both undergraduate and graduate students when certain reclassifications for the statement of cash flows accounting report would be suggested in the classroom. Consequently, it was believed it would be useful to provide supporting arguments for these suggested changes in the following paper. After the underlying theory of the reclassifications is presented, it was believed that empirical evidence should be gathered to ascertain the desirabilityof the suggested changes by undergraduate and graduate students. Empirics are presented and analyzed. Evidence seems to support the desirability for these proposed changes. The generally accepted format for the statement of cash flows is to categorize cash flows according to three types of activities:  operating, investing, and financing.  This three prong approach is believed to provide more useful information for users than simply to place all cash inflows into a sources and all cash outflows into a uses classification.  This two category approach was the generally accepted format for a number of years.  Some made reference to this format as the “Where got? Where gone?” statement.  It was sometimes compared to a swimming pool with the beginning cash balance the level of water at the beginning of the period, and the level of the water at end of period represented the ending balance of cash. If there were more sources of cash, inflows of water, than  outflows of cash, outflows of water; then the level of the pool water would rise.  The level of the water would drop if the reverse was true being more outflows than inflows of water.  This required one to conceptualize the difference between a stock and a flow; with the beginning and ending balances of cash  viewed as stocks, and the inflows and outflows a flow.  This in part led to the preference to form three categories for the cash flows. In 1987the FASB issued statement of financial accounting standard No. 95, “Statement of Cash Flows”. This statement established standards for cash-flow reporting. It provides the authoritative support for the three activity format mentioned above. The primary purpose of the statement of cash flows is to provide relevant information about the cash receipts and cash payments of an enterprise during a period.  This purpose is consistent with the objectives and concepts set forth in the FASB conceptual framework as set forth in statements of financial accounting concepts  Nos. 1 and 5.  For example, statement of financial accounting concept No. 1, “Objectives of Financial Reporting by Business Enterprises,” states that the general objective of financial reporting is to provide information to investors and creditors about the amount, timing, and certainty of future cash flows. Because of this three category structure, concern and controversy continue to surround the classification of three items: interest expense, dividend income, and interest income in the statement of cash flows accounting report.  All three items are presently reported as cash flows related to operating activities.  There is a belief that this is a generally accepted accounting principle ,GAAP, heavily influenced by income tax law.  Interest expense is an allowable deduction for calculating taxable income but dividends are not allowable.  Furthermore, both interest and dividend income are considered income by the tax laws.   It is generally known that a number of accounting standards endorsed to  guide external, financial reporting are influenced by income tax law as well as legal liability. This paper  presents the theoretical arguments for reclassifying interest expense, dividend income, and interest income in the statement of cash flows.  After supporting theory for the suggested reclassifications is provided, procedures for implementing these changes is demonstrated.  Following the theory and procedures, empirical evidence is presented showing the desirability of these reclassifications by both business undergraduate  students,  and MBA graduate students.  

 

Full text

 

Corruption and Multi-National Corporations: A Conceptual Model

Dr. Wissam AL-Hussaini, Lebanese American University, Lebanon

 

ABSTRACT

The aim of this study is to explain the diverse motives behind Multinational Corporations (MNCs) opting to enter corrupt countries. It also illustrates why some corporations are not willing to seize a part in any corrupt transaction. This paper discusses when MNCs would relatively decide to amend the different dimensions of corruption such as pervasiveness or arbitrariness to further entrench themselves in the corrupt host country and protect their interests and profitability. Moreover, this study provides an overview of the different corruption definitions, types, causes, consequences, and measurements. Propositions and implications regarding the dealings of MNCs with corruption are presented. Corruption has been existent and strongly ongoing for a very long time. Throughout the history, this phenomenon played a major role in the fall of great civilizations. People, institutions, and even religions have sought many ways to deal with corruption. Religions, in specific, introduced andattempted to spread morals that fundamentally aimed at fighting corruption. The topic of “corruption” has been receiving more attention with the upsurge of the global operations of Multinational Corporations.  With a high level of globalization nowadays, organizations do not solely operate at a national basis where rules are generally understood and clear-cut, but in multiple nations, each possessing its own customs and regulations (Eiche, 2012). Illegitimate corporate activities involving bribery and corruption have augmented as an effect of the global economy growth, particularly in emerging markets (Ulinski et al, 2013). Since corruption has made it across the threshold to the public globe, dealing with it ought to be considered a leading issue (Eiche, 2012). Thus, in face of this global spread, it has become the task of the large economies nation-states (e.g. U.S.), supranational organizations (World Bank, OECD), and scholars to define corruption, understand its causes and consequences, and develop strategies and cures for this phenomenon. Some actions have already been adopted. For instance, the United States passed the anti-corruption law “Foreign Corrupt Practices Act” in 1977 which penalizes American multinational companies that engage in corrupt practices.  The OECD countries also put into effect a “convention on combating bribery of foreign public officials in international business transactions” in 1999 (Spalding, 2012). Many researchers have devoted much of their attention to corruption in the global context, particularly its effects on the levels of Foreign Direct Investment (FDI). Most studies on corruption, though, have concerted on the effects of government corruption on the MNC strategies, and how the corporations are required to overcome them.

 

Full text

 

Customer Learning Capability of Event Management Businesses in Thailand: An Empirical Investigation of the Antecedents and Consequences

Nattawut Panya, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Phaprukbaramee Ussahawanitchakit, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Prathanporn Jhundra-Indra, Mahasarakham Business School, Mahasarakham University, Thailand

 

ABSTRACT

In the context of high competitive intensity, businesses need to seek the factors that determine competitive advantage. Customer learning is a key factor, which encourage firms to quickly achieve business goals. This study aims to examine the impacts of five dimensions of customer learning capability on marketing profitability. The data that are used to test these relationships are generated from 134 event management firms in Thailand. The results show that the five dimensions of customer learning capability have important effects on learning outcome and marketing profitability. These findings are interpreted and discussed in the context of existing literature and a context of Thai business. Contributions of this study and future research directions are identified. In the new global economy, communication can develop the life standard of a customer through the awareness of goods and service quality. Especially, the value of those products and services are the main factors to decide whether to purchase or not. Consequently, customers have many choices to select the best ways to consume products and services. Customers are more informed, considerate and concerned about products and service quality. Faced with a deluge of product information and choices, they have the capability to integrate incoming and outgoing messages, leading them to demand diversity. They can purchase products and services through an ever-growing, changing number of channels which motivate them by special conditions. Consumption is made through a wider range of products than ever before, and it is not easily segmented into categories (Baird and Gonzalez-Wertz, 2011). However, to survive in speedy environmental change, firms must adapt business strategies and setting organizational configurations to maintain the markets in which competition is high and the essential market mechanisms swing continuously (Luo and Park, 2001). Customer learning capability is a main factor that provides the knowledge to improve business strategy. The previous study mentions to the information of the customer as a part of market orientation. The main concept of market orientation is customer focus that seeks to meet the customer needs and wants (Tadepalli and Avila, 1999). Therefore, most scholars often focus on customer orientation more than customer learning. It associates with obtaining information from their customers. Information about customer needs and preferences are an important factor for businesses to gain market intelligence (Kohli and Jarworski, 1990). Yet the gap of customer orientation is lack of the study of the customer learning process and customer learning elements.  Learning is the process of excerpt hidden predictive information from large databases, identities valuable customers, learns about their preferences, predicts future behaviors, and estimates the customer value (Sun et al., 2006). Nowadays, customer learning capability is the key factor that supports firms to face competition. It is the firms’ ability to learn and understand the current and future set of customers’ behaviors, potential needs, and preferences in order to effectively respond to them and continually discover additional needs of which customers are not aware (Narver and Slater, 1990).

 

Full text

 

Think Tank Comparisons: Lessons Learned at a for Profit University and Applied in a Corporate Setting

Dr. Maja Zelihic, Forbes School of Business at Ashford University, CA

Dr. Lora Reed, Forbes School of Business at Ashford University, CA

Dr. Alan Swank, Forbes School of Business at Ashford University, CA

Bill Davis, Forbes School of Business at Ashford University, CA

 

ABSTRACT

This paper sets the stage for an unlikely exploratory analysis comparing business and business school think tanks focused on group development and community building.  The paper is based on a recent study of a virtual faculty think tank implemented in the business school of a large online university.  Notably, the business school think tank is modeled after think tanks in industry.  Thus, the impetus for the research proposed here will complete a ‘full circle’ when it comes to fruition.  First, the business school virtual think tank study and its preliminary findings are summarized as foundational to the exploratory analysis that will later be conducted.  The literature on think tanks as venues for group and community development is reviewed.  Two theoretical frameworks, Peck’s stages of community and Tuckman’s stages of group development, are examined for relevance to the impending study and with relation to the recently completed study.  Research questions are posited.  A methodological approach is considered.  Significance of the study is scrutinized and plans for future research are investigated.  The notion of a diverse body of thinkers engaged in brainstorming, collaboration, and collegial action geared towards accomplishing common goals is as old as Plato’s Academy, which Rohrer (2008) posits may have been the first informal think tank in human history.  Later, organizations such as medieval monasteries, the Royal United Services (founded in 1830), Fabian Society (as early as 1884), and Brookings Institution (originated in 1916) became recognized as other iterations of contemporary think tanks (Roher, 2008).  More recently, corporations, such as the Rand Corp., Proctor and Gamble, and General Electric have been among industry leaders whose think tanks have been “game changer[s]”…”mechanisms for keeping the idea pipeline full” (Lafley & Charan, 2008, p. 101).  Corporate think tanks have been instrumental in generating innovative approaches to problem solving, developing new products, and serving underdeveloped markets, to name a few uses.  However, business schools have not always followed or led business and think tanks have only recently appeared on college and university campuses for purposes of idea generation and knowledge sharing.  This paper begins by summarizing a recent exploratory study of a virtual faculty think tank in the business school of a large online university.   In 2011-2012, a small group of faculty at the campus of a growing online university chose to implement an idea exchange, a think tank, for purposes of generating ideas and knowledge that would serve their growing student body.  By 2013, the original faculty had moved on to other tasks and two remote faculty members began to facilitate the regular bi-weekly meetings for purposes of, among other things, creating a sense of community among faculty that were geographically dispersed.  Although distant, the virtual participants of the think tanks were adept at using communication technologies to teach online courses and to work together for other common goals such as improved student success and ongoing faculty development.  At that time, the think tanks consisted of both online and remote faculty and participation began to increase as presenters from campus and across the country, sometimes from abroad, shared knowledge, ideas, teaching tips, and collegiality in a virtual learning community. In spring of 2015, a team of researchers completed a mixed methods study of the business school think tank.  Their findings demonstrated, among other things, that the faculty participating in the business school think tanks did so, at least in part, to enjoy a sense of community.  The researchers learned that faculty had been enabled to experience the characteristics of a virtual learning community, and to build unlikely collaborative relationships that were conducive to knowledge sharing and idea generation (See Reed, et al, 2014; Reed, et al, 2015; Davis, et al, 2015).  Many of the techniques regularly employed in the business school think tanks had been adapted from industry.  Thus, the researchers became curious and decided it would be wise to determine if the business school think tanks had evolved similarly to their corporate counterparts. 

 

Full text

 

Strategic Brand Orientation and Marketing Survival: An Empirical Investigation of Cosmetic Businesses in Thailand

Supachai Tungbunyasiri, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Pratanporn Jhundra-indra, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Pakorn Sujchaphong, Mahasarakham Business School, Mahasarakham University, Thailand

 

ABSTRACT

The purpose of this research is to investigate the effect of strategic brand orientation on marketing survival through several mediating constructs, including organizational product success, unconditional customer fulfillment, competitive reaction effectiveness, outstanding market acceptance, marketing excellence, and marketing advantage. The model is empirically tested by using the collected data of mail surveys from 125 cosmetic businesses in Thailand. Marketing director and marketing manager of each firm is the key informant. The OLS regression is used as a main analytical instrument to examine the proposed hypotheses. The results indicate that strategic brand orientation positively relates to several antecedents and consequents, and consequently affect marketing survival. Finally, conclusion and the suggesting for future research are presented. The competition continuously extends every year. New competitors are occurring from several directions, such as, from global competitors that aim to increase sales in new markets, from online competitors that seek the cost-efficient distributions, from store brand and private-label that provide low-price alternative, and from megabrand competitors that extend their brand into new categories to leverage the strength (Kotler and Keller, 2008). The significant increase of amount of competitors makes a difficulty in associating between firms and customers (Barich and Kotler, 1991) .Thus, in order to survive from such situation, firms are needed to create their identity to identify them in competitive market (Balmer and Soenen, 1997). Because ability of brand is to identify the firm’s products and to separate them from competitor’s products (Ghodeswar, 2008), brand management and branding are increasingly highlighted as the key areas for both practitioners and marketing academics in the commercial sector (Hankinson, 2001; Sarkar and Singh, 2005). By applying strategic brand perspective to marketing activities, firms can be better able to confront with market force and intensive competition (Simões and Dibb, 2001).  Brand commonly refers to the name that represents the item(s) in product line in order to identify the source of such items (Kotler, 2000). The brand can be a name or symbol such as a trademark or logo that intends to differentiate firms’ products or services from competitors, and to identify products or services of one or a group of sellers (Ghodeswar, 2008). Moreover, there is a common premise that the brand is more than a given name of the products; it incorporates a whole set of socio-psychological and physical beliefs and attributes (Simões and Dibb, 2001). Customer benefits, features and values are also embodied in brand (Pearson, 1996). Likewise, empirical evidence points out that a strong brand can promise a good quality, reduce risk, generate trust, and simplify their choices (Keller and Lehmann, 2006). As a result, brand building will be one of the answers to survive in severe competition.  In the literature, brand orientation is the merging between brand concept and business orientation, based on the resource-based view of the firm (Evan, Bridson, and Rentschler, 2012). Urde (1994, p.117) first introduced brand orientation concepts and later defined it as “an approach in which the processes of the organization revolve around the creation, development and protection of brand identity in an ongoing interaction with target customers with the aim of achieving lasting competitive advantage in the form of brand.” Then, several alternative definitions of brand orientation are introduced later (e.g. Bridson and Evan, 2004; Ewing and Napoli, 2005; Gromark and Melin, 2011; Hankinson, 2001; Wong and Merrilees, 2008). However, existing definitions are just the concept. They lack a concrete view.

 

Full text

 

Understanding the Segmentation of Consumers in the Gulf Region: A Critical Element of Marketing

Dr. Ahmad A. Alfadly, Arab Open University, Kuwait

 

ABSTRACT

Purpose: The aim of the current research is to comprehend the consumer segmentation in the Gulf Area.  In addition, the study focuses on segmenting the consumer Gulf market on the basis of actionable and strategy yielding marketing variables.  Design: The study relied upon both secondary and primary sources for collection of the required information and data. The secondary sources included previous studies as well as the published reports and materials about customer segmentation. These data were utilized in designing the research that identified the main factors, variables of the study, and development of the survey. The ethical beliefs of consumers from Saudi Arabia, Oman and Kuwait were revealed, which include Machiavellianism, ethical beliefs, and their preferred ethical ideology.  Findings: As per the research a few limitations are particularly ascertained if clients in the Arab world vary from one another in context to their moral perspectives, moral philosophies, and extent of Machiavellianism. Also, the study shows that Arab customers differ in context of their moral perspectives, their favored philosophy, and the degree of Machiavellianism they portray.  Value: Currently, international enterprises and public choice makers contemplate the job of analyzing the Arabs’ attitude a chief importance for successively functioning in the area. Despite this sensitive interest, restricted attention has been paid by both social and behavioral analysts to analyze the individuals living in that area of the globe.  A major part of the current research is journalistic in character and inclines to discuss the Arab nations as monolithic instead of one that comprises of different preferences, approaches and conducts.  Since the concept was established in the late 1950s, segmentation has been a theme majorly analyzed in the marketing literature. There have been two dimensions of segmentation study: segmentation bases and methods. A segmentation basis is described to be a group of attributes employed to allocate prospective clients to similar cohorts. Research on segmentation bases emphasizes recognition of effective variables for segmentation, such as socioeconomic status, loyalty, and price elasticity (Frank et al., 1972). Lancaster and Reynolds (1998) argue that there are two sources for segmenting consumer markets: customer characteristics and customer reactions. The major segmentation variables for buyer markets are geographic, demographic, behavioral, and psychographic. These variables can be used alone or mixed. Off late several European firms got the chance to set their trade in the Arab nations and have been exposed to the probable potential to earn revenues for European enterprises that are keen to do so. As Europeans are consistently drawn to function in the Gulf nations, frequently by way of foreign direct investment; however they need to deal with the moral issues put forth by their rivals and the trade in addition to the issues put forth by the intended clients.

 

Full text

 

Audit Excellence Orientation and Audit Survival: Empirical Evidence from Tax Auditors in Thailand

Srisuda Intamas, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Phaprukbaramee Ussahawanitchakit, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Sutana Boonlua, Mahasarakham Business School, Mahasarakham University, Thailand

 

ABSTRACT

This research aims at investigating the relationships among five dimensions of audit excellence orientation (professionalism focus, audit independence awareness, audit creativity development, audit expertise orientation, and audit skepticism mindset) and audit survival through mediating influences of best audit practice, audit report quality, and audit information value. Audit vision, audit competency, audit experience, stakeholder force, market competitive pressure become the antecedents of audit intelligence. In this study, data were collected by mail survey questionnaire to the 415 TAs in Thailand who are the sample. The results of OLS regression analysis indicated that audit excellence orientation has a significant positive effect on audit excellence orientation consequents. In addition, audit excellence orientation consequents have a significant positive association with audit survival. Furthermore, audit vision, audit competency, audit experience, and stakeholder force have a positive influence on audit excellence orientation. To verify and increase the benefits, advantages, and contributions of the study, future research needs to collect data from a larger population or comparative population in order to increase the reliability of the results as well as use another sample population, such as certified public accountants (CPAs), governmental auditors (GAs), internal auditors (IAs), or others in Thailand. A potential discussion concerning the research results is effectively implemented in the study. Theoretical and managerial contributions are explicitly provided. The conclusion, suggestions, and directions for future research are recommended. In the era of globalization, the change of business environment structure is based on a capital-based structure to a knowledge-intensive competitive environment due to changes in customer need, demand uncertainty, complexity and high competition, and the regulatory environment (Evans and Schwartz, 2014). In addition, the AEC fundamental freedoms are becoming a point of increased focus for international business. Thailand is going into the ASEAN Economic Community in 2015 and will have a free flow labor with the other ASEAN member countries. Moreover, the mutual recognition agreement (MRA) is one of the important tools to increase the level of utilization of the liberalization of cross-border trade in professional services in ASEAN Thailand, which lays down the broad principle and framework for the negotiations of bilateral or multilateral MRAs on accountancy services between or among ASEAN Member States (AMS). MRA may be able to facilitate mobility of accountancy services professionals across AMS, enhance the current regime for the provision of accountancy services in AMS, and exchange information in order to promote adoption of best practices on standards and qualifications (www.fap.or.th). Thus, Thai accountancy professionals should understand requirements to qualify and practice as an accountant in all AMS. Most businesses need to convey useful information in order to reassure the investors’ rapid decision makings. Today’s audit environment is one of increased responsibilities and workloads for auditors, enhanced auditor’s roles in detecting and preventing frauds, including evaluating the fair value of assets and liabilities (Curtis and Payne, 2008, Curtis et al., 2009). Therefore, businesses demand the auditor who has excellence audit work and produces a high quality audit to quickly advise or resolve the situation.

 

Full text

 

The Components of Marketing Strategies (MSM) and the Relationships with Strategy Antecedents and Consequences: Evidences from Egypt

Dr. Mansour S. M. Lotayif, Associate Professor of Business, Beni Suef University, Egypt

 

ABSTRACT

The current study aims at identifying the causality relationships between components, consequences, and antecedents of marketing strategies making MSM. The experiences of 213 Egyptian executives were utilized to achieve these objectives. Throughout multivariate analytical technique (e.g. multiple regression), bivariate analytical techniques (e.g. correlations), significant relationships between MSM components, consequences, and antecedents were found.  Antecedents and consequences of marketing strategy making (MSM) have not taken enough interest from marketing scholars, and even the few empirical studies that dealt with both of them have focused on a limited set of components (Menon et al., 1999). Literature in this perspective is dichotomously characterized, as either the consequences or the antecedents of MSM are focused but not both. More specifically, Sinha (1990); Bourgeois and Eisenhardt (1988); and John and Martin (1984) have focused on the antecedents of MSM whilst Eisenhardt (1990); Ramanujam et al. (1986) have investigated its consequences. Therefore, the current study adopts a comprehensive approach by addressing MSM components, antecedences and consequences simultaneously. The main contribution in this filed is Menon’s et al. (1999) model. They suggested and tested a three phases’ model: antecedents, MSM components, and consequences. The former included three main organizational antecedents of MSM: centralization i.e. the extent of decision making authority concentrated at the higher levels of an organization (Dewar and Werbel, 1979); formalization i.e. the extent to which rules, procedures, instructions, and communications are written and standardized and the degree to which roles are clearly defined (Pugh et al., 1968) and; innovative culture i.e. the extent to which there exists - within an organization- an emphasis on inventiveness, openness to new ideas, and quick response decision making (Menon and Varadarajan  1992; Zaltman 1986). The latter includes another three consequences of MSM: strategy creativity, organizational learning, and market performance. Finally, MSM components contain seven variables: Situation analysis i.e. the rational and systematic consideration of the organizational SWOTs in a marketing strategy domain (Kohli and Jaworski, 1990; Bourgeois and Eisenhardt, 1988);  Comprehensiveness i.e. the systematic identification and in-depth evaluation of multiple alternatives to chosen strategy (Eisenhardt, 1989; and Fredrickson, 1983);  Emphases on marketing assets and liabilities i.e. the historical and ongoing core marketing related processes, resources, and skills on which the marketing strategy is based (Day, 1994; and Bharadwaj et al., 1993). Assets refer to investments in scale and scope (e.g., advertising, promotions), brand image, and locational and channel advantages.  Whilst, capabilities refer to marketing processes and applications of assets such as pricing, customer service capabilities,  innovation, and product development (Day, 1994); Cross-functional integration i.e. the extent to which the MSM team reflects the main organization, includes adequate representation from relevant functional areas, and is well organized and coordinated (Ayers et al., 1997; Miller et al., 1997);

 

Full text

 

The Internal Audit Professionalism Orientation and Firm Goal Achievement: An Empirical Assessment of Auto Parts Businesses in Thailand

Kongkiat Sahayrak, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Sutana Boonlua, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Kesinee Muenthaisong, Mahasarakham Business School, Mahasarakham University, Thailand

 

ABSTRACT

This study aims at investigating the influences of internal audit professionalism orientation on firm goal achievement through the mediating effect of audit practice efficiency, internal audit report reliability, operational information quality, and business value creativity. Internal audit professionalism orientation consists of internal audit regulation compliance focus, internal audit independence awareness, professional code of ethics mindset, internal audit well roundedness integration, and internal audit creativity orientation. In this study, data were collected by mail survey questionnaire administered to the92 auto parts businesses in Thailand who are the samples of this study.  The results of OLS regression analysis suggest that internal audit creativity orientation has a strong significant positive effect on audit practice efficiency, internal audit report reliability, operational information quality, and firm goal achievement, while professional code of ethics mindset has a significant positive effect on audit practice efficiency, internal audit report reliability, and operational information quality.  Furthermore, internal audit regulation compliance focus and internal audit well roundedness integration has a significant positive effect on business value creativity. Meanwhile, internal audit independence awareness has no significant positive effect on internal audit outcome and the consequences.  Potential discussion is efficiently implemented in the study. Theoretical and professional contributions are explicitly provided. Conclusions, suggestions, and directions for future research are recommended. Nowadays, an uncertain economic environment has rapid change, which influenced on firm survival in a highly competitive situation.  The high intensity competition in the market requires firms to improve and develop processes.  Moreover, event of financial fraud by executive, which leads to financial scandals make the company such as Enron and WorldCom be well known among the general public.  This event has pushed the concept of corporate governance and internal control effectiveness to build credibility and improvement of business operations (Carecello et al., 2005).  The internal audit has a very important as to the success of the business (Hass et al., 2006).  The role of the internal audit is the confidence and consultation fairly and independence to add value and improve an operations of the organization.  Therefore, the internal audit is value-added activities of an operation to help support the organization achieve its objectives (Vasile et al., 2011). The responsibility of the internal audit department is related to the audit, evaluation risk management, internal control, corporate governance, worthwhile operations, and enterprise information systems, including various performances.  Additionally, the main objective of the internal audit function is to play a role as a monitoring mechanism and support organizations in effectively achieving objectives by providing unbiased and objective assessments (Hermanson 2006).  However, there are many questions about the professionalism of the internal auditor which is an important factor for the quality of the internal audit because it is seen that the internal audit department are part of the company.  Thus, internal audit professionalism cannot be ignored since it is related to the business survival(Reynolds and Mary, 2000).In audit context which is composed of external and internal audit, professionalism orientations has been emphasized for external audit practices and are widely implemented in certified public accountants’ tasks.  Meanwhile, there are few studies investigating how internal audit departments’ professionalism is sharing in and utilizing internal audit tasks.  As a result, this study attempts to expand a perspective of internal audit professionalism orientation in the context of the internal audit department of firms. 

 

Full text

 

A Preliminary Study on the Role of Risk Perception in Electronic Commerce Systems Adoption

Dr. Yujong Hwang, DePaul University, Chicago IL

Kyung Hee University, College of International Studies, South Korea

 

ABSTRACT

The different influences of online trust, such as integrity, benevolence, and ability, on customer loyalty to the website are discussed with risk taker and risk avoider characteristics in this preliminary study. We propose that, in the risk taker samples, the influence of online trust through website ability on customer loyalty is fully mediated by the intention to use the website. However, in the risk avoider samples, online trust beliefs such as ability and integrity as well as intention to use website have direct influences on customer loyalty. Theoretical and practical implications of these proposed models are discussed in this paper. Recent failure of a large number of companies operating in B2C segment of electronic commerce has damped the perceptions about future success of e-tailing sector. Managers have retracted to rethink business models and devise new strategy for building a sustainable business model. Researchers are in a constant hunt to develop models that capture and explain electronic commerce phenomenon. The current situation is ripe for a better understanding of factors that drives consumers behavior in online market channels. This study makes a coherent effort in enhancing understanding of consumer behavior in electronic markets by analyzing and proposing the new model.  Even though there have been many research endeavors to explain online trust and consumer behavior (e.g., Gefen, Karahanna, and Straub, 2003; Grazoli and Jarvenpaa, 2000; Pennington, Wilcox, and Grover, 2004; Jarvenpaa. Tractinsky, Saarinen, and Vitalle, 2000; Ba and Pavlou, 2002; Gefen, 2002a; Gefen, 2002b; Pavlou, 2003; Bhattacherjee, 2002; Saeed, Hwang and Grover, 2003; Kim, Kim, and Hwang, 2009; Hwang, 2010; Hwang, 2012; Kim and Hwang, 2012; Hwang and Lee, 2012), one of the main questions is how to understand the influences of online trust on consumer loyalty behavior (Saeed, Hwang, and Yi, 2003). Based on the meta-analysis of online consumer behavior in the 42 leading IS articles published between 1995 and 2002, Saeed, Hwang, and Yi (2003) argued that the relationship between online trust and customer loyalty should be studied further to fully understand  online consumer behavior.  Thus, this study has three primary objectives. The first objective is to investigate the potential influences of multidimensional online trust beliefs, such as ability, benevolence, and integrity, on online customer loyalty to the website. Using the multidimensional trust constructs, this study can discuss more complex relationships between trust and the customer loyalty to the website. The second objective is to investigate the effects of mediating roles of intention to use the website on multidimensional trust beliefs and customer loyalty. We expect that there should be some interesting mediating role of intention to use the website in these relationships. Given that the relationships between trust and loyalty would be different in the risk taker and risk avoider groups would be different, the test results could provide some interesting insights to the IS and e-commerce community.  There are numerous electronic commerce studies in IS domain. The seminal study by Jarvenpaa and Todd (1997) is one of the first efforts in capturing consumer reactions to web shopping.

 

Full text

 

Internal Audit Process Excellence and Decision Making Success: An Empirical Investigation of ISO 9001 Businesses in Thailand

Krittayawadee Gatewongsa, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Phaprukbaramee Ussahawanitchakit, Mahasarakham Business School, Mahasarakham University, Thailand

Dr. Kesinee Muenthaisong, Mahasarakham Business School, Mahasarakham University, Thailand

 

ABSTRACT

The purpose of this study is to investigate the relationships between internal audit process excellence and its consequences to the companies that are certified by ISO 9001 in Thailand. The consequences of internal audit process excellence comprise internal audit quality, internal audit reliability, internal audit acceptance, operational information advantage, and decision-making success. These 244 companies are certified by ISO 9001 in Thailand and OLS regression is examined in this study. The results indicate that internal audit process excellence has strongly supported with internal audit quality, internal audit reliability and internal audit acceptance. Meanwhile, stakeholder expectation as an antecedent of internal audit process excellence is strongly supported. Conclusions and suggestions for future research are presented accordingly. Organizational management has expanded, resulting in greater administrative complexity in a variety of situations, arising from the rapid changes occurring in the economy and society, policy making, and advanced science and technology. Management is unable to supervise the implementation details of the various agencies thoroughly. The internal audit is intended to serve an important role as a tool for effective management, monitoring and providing control measures (Daniela and Attila, 2013). Internal audits are faced with many challenges such as organizational growth, increasing use of electronics and computer technology, etc. (Pinto et al., 2014). Therefore, there is a need to develop an internal audit in terms of knowledge, skills and abilities in an appropriate manner. The contemporary professional practice of internal auditing was established with the founding of the Institute of Internal Auditors in 1941 (Chun, 1997; The Institute of Internal Auditors (IIA), 2012). In particular, over the last five decades, the Institute has increased the professionalism of internal auditors through such measures as the approval and issuance of the statement of responsibility, research and development of a general body of knowledge, the systematic development of education and professional certification programs and continuing, to make use of standards of professional practice of internal auditing with a code of ethics. Internal audit is a tool to support decision makers in organizations. There has been a great deal of activity regarding internal audits since 1941. It developed from the perceived duty to monitor the payments of accounting departments, until it achieved its current role to assure the proper operations of the organization. Internal audit now assesses all management resolutions meant to ensure their normal and efficient operation, and in so doing creates added value (Daniela and Attila, 2013). The goal of internal audit is to enhance the overall economy, efficiency and effectiveness of the organization by adding value to its operational performance (Griffiths, 1999; Wynne, 1999). Internal audit, having two main benefits for an organization from having an internal audit department; first, it was derived from the conventional audit of financial systems and controls. Additionally, internal audit has a primary focus on the prevention and detection of irregularities from mistakes or fraud, and the safeguarding of the assets of an organization.

 

Full text

 

IT Scammers Target Retiring Baby Boomers

Ronald O. Acton, University of Central Missouri, Warrensburg, Missouri

Dr. Mustafa Kamal, University of Central Missouri, Warrensburg, Missouri

 

ABSTRACT

According to AARP, 25% of US population is categorized as Baby Boomers (BB) age group. The first of the BB generation started to retire at the age 65 in 2011. Among all age groups, these citizens have accumulated the highest percentage of household wealth over the years. This population is specifically targeted by internet based thieves.  From email phishing, to internet based scams, elderly populations are target of local as well as international crooks. Identity theft, bank account fraud, illegal money transfer, virus based threats have become very common and are on the rise.   The aging population, however, has many resources available to help them become aware of risks and identify new threats against them. These include available support groups, readily available knowledge, conscious family members, community support, support organizations, awareness of law enforcement agencies and protective software. By educating themselves the aging population can greatly reduce their risk of falling prey to internet scams. Many of us have great experience going fishing with grandpa. All the preparation that take place the night before, all the excitement in planning, all the measurement of big fishes that are going to be caught. Everyone goes to bed thinking about all the catch tomorrow will bring. These are happy thoughts and best time of one’s life.  There is another type of phishing looming on the horizon that many grandparents experience and are not so pleasant.  The 2010 Census Bureau data suggests that those turning 65 years and older increased by 15.1 percent since 2000, making this the largest number ever in this age group (Werner 2011). Many of these grandparents fall under the Baby Boom generation. The Baby Boom generation is generally considered those born between 1946 and 1965 (The Pew Charitable Trusts 2013). This generation has worked hard saving money for retirement; now they can go fishing with their grandkids and enjoy life. However, reaching retirement age does have some downsides. People are not as trusting as before, and growth in technology products have contributed to new thread of crimes that many are not aware of.  Grandpa recently received what seemed to be email from his bank, asking for his social security number, account numbers, user id, and password so that the bank can verify his information for their new system. Grandpa is smart and remembered advise given to him that ‘legitimate agencies don’t ask for social security number, driver’s license number, passport number, bank account number, loan number, etc. over internet. Grandpa just blocked a phishing attempt on his computer and successfully defended himself. Phishing is defined by the Internal Revenue Service as random fishing activity for personal and financial information of unsuspecting victims by hooking them with a fraudulent email so that the stolen information can be used for identity theft (Suspicious e-Mails and Identity Theft 2014). Most Phishing scams we see today involve technology and the use of email or bogus websites. This paper focus on the Phishing scams involving technology and our aging population and how common everyday Internet and phone scams need to be examined for insight into their future usage.

 

Full text

 

The Impact of ICT on e-Government

Dr. Shahram Amiri, Stetson University, DeLand, FL

Dr. Joseph M. Woodside, Stetson University, DeLand, FL

Brianne Boldrin, Stetson University, DeLand, FL

 

ABSTRACT

Given the global debt crisis, increasing government debt ratios are unsustainable.  An e-government model utilizing ICT and resulting Big Data is anticipated to reduce costs and decrease debt.  This manuscript examines the relationship between the United Nations’ International Telecommunication Union’s ICT sub index and the World Economic Forum’s Networked Readiness Index to governmental debt levels through analytical and quantitative methods.  Our research concluded that there is in fact a significant correlation between technology and governmental debt.  The paper contributes a quantifiable measurement and relationship between technological advancement, and government debt across the BRICS countries. Current and developing technologies promote the advancement of E-government.  E-government uses information and communication technologies (ICT) to allow the government to connect with citizens and private groups electronically (Relationship between E-Government, ICT and E-Governance).  This provides citizen centered services that increase the transparency of governmental agencies through the integration of various departments and programs.  Two major trends have increased E-governance projects for ICT.  The first is the recent development in the ease of the use of the governmental operational systems.  The second is the increasing use of ICT in the daily lives of citizens, growing the community’s level of knowledge and skill (Vijaykumar 2011).  Literature says, “E-government systems frequently encompass strategic goals that go beyond efficiency, effectiveness and economy to include political and social objectives, such as trust in government, social inclusion, community regeneration, community wellbeing and sustainability” (Grimsley & Meehan 2007). Big data, cloud computing technology and increased departmental communication have been described as recent development trends in E-Government.  Big data is the massive amount of digital data that is collected and compiled from a variety of different sources.  Sources say, “90% of the world’s data today was generated during the past two years, with 2.5 quintillion bytes of data added each day” (Kim, Trimi & Chung).  A large amount of this data is unusable to relational databases because of its structure.  Resources are need to transform this data into more than just figures. Data is a valuable resource that has new value and can increase discovery and business intelligence.  Governments can use big data to help serve their citizens and overcome national challenges such as rising health care costs, unemployment, natural disasters and terrorism (Kim, Trimi & Chung).  Recently, the Obama admiration began a Big Data Research and Development Initiative with the intent to "improve [American] capability to extract knowledge and insights from large and complex collections of digital data; harness these technologies to accelerate the pace of discovery in science and engineering; strengthen national security and transform teaching and learning" (Quing).  Big data will help enhance the use of E-government along with the use of several other technologies. Today’s literate provides a limited amount of data and research that significantly supports the overall cost savings of the government with the implementation of an ICT system (Bhatnagar & Singh 2010).  However, many works of literature do note the cost savings that the ICT provides to citizens once the system is implemented. 

 

Full text

 

Re-launching of CCCTB Project in the EU: Moving from CCCTB Towards CCTB

Dr. Danuse Nerudova, Mendel University, Brno, Czech Republic

Dr. Veronika Solilova, Mendel University, Brno, Czech Republic

 

ABSTRACT

On 16th March, 2011, the European Commission has published the draft directive on common system of corporate taxation. The project proposed a single set of rules that companies could use to calculate their taxable profits. Primarily, the goal of CCCTB proposal was to strengthen the smooth functioning of Internal Market and to decrease compliance costs of taxation for companies operating cross-border. However, the element of consolidation comprised in the proposal, turned to be the most difficult part for the negotiation. Therefore, on 17th June 2015, the European Commission introduced Action plan on re-launching of CCCTB, announcing the move from CCCTB towards CCTB i.e. common corporate tax base. The aim of the paper is to research the impact of the change on the tax bases of the companies. The comparative analysis of the situation when the allocation formula under CCCTB system would be applied and the situation of cross-border loss offsetting under currently proposed CCTB system was performed during the research.  On 16th March, 2011, The European Commission has published the draft directive on common system of corporate taxation in the European Union (hereinafter as CCCTB). The system offered unified set of rules that cross-border companies could use for calculation of their taxable profit. It is considered as the most ambitious project in the history in the area of direct taxation. The uniqueness of the project lied in the fact that on one hand it represented unified rules for the construction of the tax base, on the other hand it did not breach the national sovereignty of EU Members States to apply independently the tax rate.  Primarily, the goal of CCCTB implementation was to strengthen the smooth functioning of Internal Market, by tackling the obstacles in the form of 28 different national taxation systems and the non-existence of the possibility of cross-border loss offsetting or the consolidation regimes. However, the element of consolidation comprised in the proposal, turned to be the most difficult part for the negotiation. Therefore, on 17th June 2015, the European Commission introduced Action plan on re-launching of CCCTB, announcing the move from CCCTB towards CCTB i.e. from common consolidated corporate tax base towards common corporate tax base. From now on CCTB is perceived by the EU and its Member States not only as a tool for significant improvement of business environment, but newly as an important instrument to combat tax avoidance, which can make corporate taxation in the EU much more transparent and can help to decrease aggressive tax planning. Under CCTB, all member States would apply unified set of rules for calculation of taxable profits of companies with cross-border activities, which should eliminate loopholes between national corporate taxation systems, often used by companies for tax planning. According to the European Commission, CCTB also represent a framework for the implementation of many of the new standards being agreed through OECD in BEPS project (Base Erosion and Profit Shifting Project). Based on the previous experiences with CCCTB proposal from 2011, European Commission is also changing implementation strategy. It is proposing mandatory CCTB for multinational companies in the first step. It means mandatory implementation of unified tax base construction rules. Only once the CCTB system will be functioning, consolidation should be introduced as the second step.

 

Full text

 

Fiscal Policy and Private Investment in Namibia

Dr. Esau Kaakunga, Senior Lecturer and Deputy Dean, Faculty of Economic & Management Sciences, University of Namibia, Windhoek, Namibia

 

ABSTRACT

The purpose of this paper is to analyse the impact of fiscal policy on private investment in a developing economy. The regression results indicate that the share of taxes on income and profit and the ratio of total central government to GDP are negatively related to investment by the private sector. They also revealed that investment by the public sector had promoted investment by the private sector. The findings also show that taxes on income and profit crowd-out private investment during the period under review. The results of the study suggest that the government should continue with its emphasis on infrastructure development, since this would create an enabling environment for the private sector to play its vital role in the economy. It is also recommended that the government should review its tax structure annually in order to make its tax regime more competitive and to avoid high taxes on income and profit which could have detrimental effects on the investment by the private sector. The study further recommends that there is a need to put a limit on the increase of current expenditure as well as to monitor the levels of the total central government debt. Namibia, on the eve of independence in 1990, could be described as having a siege economy. It was a country which had been isolated from the rest of the world and was characterized by extreme disparities in access to public facilities and distribution of income. The economy is also characterized even now by its complex nature that ranges from a traditional hunter-gatherer subsistence economy to the advanced technology of a modern industrial sector. The economic activities are mainly dominated by mining, agriculture and fishing and to some extent services. The emphasis has been on primary production for export, while the bulk of processed goods required for domestic market are imported from South Africa. Hence, the performance of the Namibian economy has to be viewed against the behavior of global economies as the country relies heavily on the exports of its primary commodities. While Namibian products still enjoy high demand in their export markets, the country’s dependence on its primary exports makes it extremely vulnerable to fluctuations in the world market. The country is endowed with unique flora and fauna and geographical which attract tourists.  Output growth in Namibia started to improve considerably after independence, surpassing the 1.1 percent average achieved during the previous decade. In 1991, the economy grew by 8.2 percent. It sustained this pace between 1991 and 1995, achieving an average growth rate of 5 percent during this period. The turnaround came in 1995, after the economy had hit a high of 7.3 percent growth in 1994. Between 1996 and 2000, the average growth rate of real GDP declined to 3.5 percent. Between 2000 and 2013, the economic growth rate has fluctuated (see table 1). A growth rate of 1.2 percent was recorded in 2001, which later improved to 4.8 percent and 4.2 percent in 2002 and 2003, respectively.

 

Full text

 

Copyright: All rights reserved. No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, including photocopying and recording, or by any information storage and retrieval system, without the written permission of JAABC journals.  You are hereby notified that any disclosure, copying, distribution or use of any information (text; pictures; tables. etc..) from this web site or any other linked web pages is strictly prohibited. Request permission / Purchase this article:  jaabc1@aol.com

 

Contact us   *  Publication Policy   *   About us 

Copyright 2000-2018. All Rights Reserved