The Business Review Journal
Vol. 5 * Number 1 * Summer. 2006
The Library of Congress, Washington, DC * ISSN 1553 - 5827
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Integratively Balancing Structured and Unstructured Thinking in Business Management
Dr. Robert J. Mockler, Tobin College of Business - St. John’s University, Jamaica, NY
The experiences described in this paper illustrate not only a systematic strategic leadership and management process at work in a variety of ways in companies and in teaching environments. They also show the wide range of competencies (especially entrepreneurial), skills, and underlying strategic values and principles companies, and their managers as well as teachers of strategic management, need to be successful. The objective of this paper is to describe how successful leaders continually try to balance structured and unstructured approaches and thinking, as well as how the failure to balance them has led especially recently to many burst financial bubbles, such as those in the Dot.Com and in the fiber optics and 3G mobile telecommunications areas. The paper then explains how these successes and failures and the lessons learned from them can then be used to effectively teach strategic business management on the collegiate and professional level. The company experiences described in this paper illustrate not only a systematic strategic leadership and management process at work in a variety of ways. They also show the wide range of competencies (especially entrepreneurial), skills, and underlying strategic values and principles companies and their managers need to be successful. The objective of this paper is to describe how successful leaders continually try to balance structured and unstructured approaches and thinking, as well as how the failure to balance them has led especially recently to many burst financial bubbles, such as those in the Dot.Com and in the fiber optics and 3G mobile telecommunications areas. These successes and failures and the lessons learned from them can then be used to effectively teach strategic business management on the collegiate and professional level.
Assessment of State Sponsored Agricultural Marketing Programs: A Case Study Approach
Dr. Roger Hanagriff, Sam Houston State University, TX
Dr. Stanley Kelley, Sam Houston State University, TX
Dr. Michael Lau, Sam Houston State University, TX
Dr. Tim Murphy, Texas A&M University, TX
Many state grown promotional programs began in the early 1980’s. This is due in part to the response stemming from widespread agricultural recession and the “New Federalism” of the Regan administration, which shifted federal programs to the state level. Administration of the state promotion programs typically rests with the states department of agriculture. A key component of many state programs is the provision of information on the perceived characteristics of state-grown or locally produced products. Texas is one state which implemented a promotional program. Established under the leadership of Agriculture Commissioner Susan Combs, GO TEXAN continues to serve as an innovative marketing tool for Texas agricultural businesses. This study outlines the 2004-2005 biennium and analyzes the effectiveness of the matching grant GO TEXAN Partner Program (GOTEPP) in terms of impact on Texas’ agricultural and state economy as reported by partner firms. The data was collected from evaluation surveys and includes firms’ un-audited reporting of sales dollars and growth during participating in this program. Most GOTEPP firms identified benefits such as increased contacts with customers, which is supported by increases in sales. Additional benefits derived from GOTEPP include changes in operations such as adding new Texas-based products, and marketing benefits such as recognizing increases in consumers’ awareness of Texas products. These partners recognized significant increases in sales and compared to program support cost create an outstanding return on investment. Considering these economic benefits that occurred in Texas, state supported funding is likely to create economic benefits which in turn can create positive state tax revenues.
Stock Options Influence on Manager’s Salaries and Firm Performance
Dr. Eric Schulz, Eastern Michigan University, Michigan
Dr. Stewart L. Tubbs, Eastern Michigan University, Michigan
Stock options have been advocated as a means of aligning Manager’s interests with firm performance measures. This study examined the incremental effect that the provision of stock options has on two firm profitability measures and whether labor costs are lower in organizations offering stock options to managers and rank and file employees. Hierarchical regression of a large wage survey controlling for several organizational factors indicates that stock options enhance firm profitability measures. This suggests that managers behaved more in the firm’s interest when their pay was linked with firm goals. A planned contrast of wages indicated that estimated marginal mean salaries for managers and rank and file employees were lower in firms using stock options compared to firms not offering stock options. The issuance of company stock to top management has been a staple of executive pay in publicly traded firms for over a half century (Crystal, 1991). While historically the provision of company stock has been the province of company executives, broad based stock ownership, in which company stock options are issued to managers and rank and file employees, is reported to be a growing phenomenon particularly among information technology (IT) workers (Ellig, 2001). Managers and rank and file IT employees are considered to be any IT employee, other than executives, including mid and lower level managers, professionals and technical support. Company stock ownership is typically made available to employees through stock options, in which an employee is provided the opportunity to purchase the stock of a company in the future at the current stock price. The employee generally has a designated period of time under which they can exercise their stock option and purchase the company stock. Stock options permit employees to buy stock at a specific price. If the stock rises, the employee then exercises a right to buy it and can sell it for a profit. But if the stock falls below the price at which the option was set, the employee incurs no compensation (Godfrey and O’Neil, 2001).
Teaching and Learning in Internationalized MBA Programs
Dr. Linda E. Parry, Western Kentucky University, Bowling Green, KY
Dr. Robert Wharton, University of South Dakota, Vermillion, SD
Many U.S. MBA programs now recruit heavily from overseas, and international students are now a major part of the student body at several schools. These students bring with them many intellectual and creative assets; along with the financial support they bring their institutions. However, they also arrive with cultural predispositions that are often quite different than those of their U.S. schoolmates and instructors. This study focuses specifically on possible differences in locus of control, tolerance for ambiguity, and work motivation. Surveying seventy-one MBA students, we find that there are differences in tolerance for ambiguity among Asian students. International students also reported less satisfaction with their MBA experience. In the early 1990s the number of graduate business schools across the U.S. grew. There were several reasons for this growth: MBA students brought in more tuition; MBA programs attracted the attention of the business and academic community; and MBA programs attracted faculty. However, as popular as the MBA became with administrators, the number of student applications began to decline. This forced universities to become more creative in their methods of attracting MBA students. At the same time there was a growing interest in globalization and preparing students for a global marketplace. Many universities began to look outside of their national or regional territories and concentrate on encouraging students from other countries to come to their institution to pursue an MBA degree. As a result, most MBA programs in the U.S. recruited a substantial number of international students.
Learning Business Statistics: Online Vs Traditional
Dr. C. P. Kartha, University of Michigan, Flint, MI
This paper discusses results of an empirical study designed to compare effectiveness of instruction of a required undergraduate course in business statistics taught under traditional and online teaching modes. The study involved administering a survey designed to measure various aspects of the course such as learning outcomes, student satisfaction, work load and the effectiveness of the mode of delivery for two consecutive semesters. Comparisons showed significant differences in overall satisfaction with the course in addition to the mode of instruction and perception about the course. While there were no significant differences with regard to factors such as the design, work load and grading, the online students perceived lack of interaction with other students as a major drawback in their learning experience. Online learning or e-learning has become an important part of education initiatives in the last decade. It eliminates the barriers of time and distance and creates universal, learning-on-demand opportunities for students around the world. An increasing number of web-based courses are being offered by universities and colleges worldwide. Many institutions of higher learning across the US now offer degree programs at both the undergraduate and the graduate levels entirely online. Often online learning is credited with advantages such as cost reductions, reaching larger markets, more effective learning, increased productivity and flexibility.
From Market Share to Customer Share: Implications to Marketing Strategies
Dr. Linvol Henry, California State University, San Bernardino, CA
Dr. Nabil Y. Razzouk, California State University, San Bernardino, CA
Sanchez (2004) (www.zunch.com/pdf/zunch_crm.pdf) identified three types of marketing waves which collectively have driven marketing since World War II: Mass Marketing, Targeted Marketing and Global Marketing. Mass marketing fostered growth through economies of scale and efficiencies of reach…in which mass products and mass services were mass marketed and mass distributed to mass markets through mass advertising and mass media. Targeted marketing took over when mass marketers realized that not all customers are created equal. This led not only to specialized products and specialized distribution but also to specialized media, audiences and messages. Global marketing is essentially a hybrid that takes the targeted approach across geography instead of within geography. To achieve the economies of scale promised by mass marketing, marketers searched for common target markets worldwide. Sanchez (2004) further observed that the three marketing waves shared one goal in common, i.e. to maximize sales in mass markets, targeted markets or global markets. He argues that marketers are now discovering that it is unfortunately possible to increase sales without increasing profits. As a result, marketers are now looking at quality of share, not just quantity of share with the goal of increasing sales and profits simultaneously. Marketers are beginning to recognize that the basis for stable profitability is the creation and reinforcement of building customer relationships. As a result, there has been a paradigm shift in recent years from the traditional marketing approach to a more customer-oriented marketing approach. This shift has been motivated by a number of factors:
Part-time Workers and Organizational Justice
Jane Dunnett, Ph.D., University of New Brunswick, Fredericton, NB
Douglas Flint, Ph.D., University of New Brunswick, Fredericton, NB
This paper proposes theoretical links between perceptions of organizational justice and part-time employment. Part-time employees are unique on at least two dimensions: employment status and scheduling. Several propositions are offered to link these dimensions to organizational justice. There is a growing trend in society toward part-time labor (Barling and Gallagher 1996). This paper reviews the literature to explore several aspects of the relationship between part-time workers and the organizations that employ them, using the lens of organizational justice. Organizational justice has shown links to organizational commitment (McFarlin & Sweeney, 1992), management satisfaction (Alexander & Ruderman, 1987), pay satisfaction (Konovsky, Folger & Cropanzano, 1987), leadership evaluation (Alexander & Ruderman, 1987), job performance (Ball, Trevino & Sims, 1994) and job satisfaction and intent to quit (Ball, Trevino & Sims, 1993). Several studies indicate that both procedural and distributive justice issues are important to perceptions of pay fairness (Folger & Konovsky, 1989; Greenberg & McCarty, 1990; Koys, 1990; Newman & Milkovich, 1990) and benefit fairness (Cole & Flint, 2005: Cole & Flint, 2004). These studies have either used student participants, for experimental research, or employees in organizations, for field research. However, there are no studies, that we are aware of, that have examined the factors that affect perceptions of justice within different employee groups. We address this gap by considering organizational justice issues specific to part-time employees. Specifically we examine the four factors of organizational justice proposed by Colquitt (2001) and Colquitt et al (2001b): distributive justice, procedural justice, interpersonal justice and informational justice.
Leadership Resilience and Tolerance for Ambiguity in Crisis Situations
Dr. Debra Hunter, Troy University
High risk, low probability crisis situations can not always be prepared for or anticipated. In the event of an “unimaginable” crisis, effective leadership and tolerance of ambiguity may be a precursor to surviving situations. As today’s leaders are continuously faced with enormous test of character, demonstrated resilience, tolerance to ambiguity, and charismatic leadership may be a recipe for success. This paper discusses a proposal for understanding the relationship between resilience, tolerance for ambiguity, and charismatic leadership in crisis situations. The proposal suggests that individuals who are resilient will demonstrate a higher tolerance for ambiguity and those with a high tolerance for ambiguity are charismatic leaders. Managers and organizations have been led to believe that proactive planning and preparations are key elements of crisis management efforts. A commonality among all organizations is that each faces known and unknown threats (Mitroff & Kilmann, 1984; Perrwo, 1984). Of course, the more predictable the threat, the more likely the organization may be prepared to deal with the situation. However, no organization can feasibly prepare for every unimaginable crisis event without exploiting a tremendous amount of resources.
Assessing the Alignment Between Business Strategy and Use of Multiple Performance Measures Using Interaction Approach
Ruzita Jusoh, University of Malaya, Kuala Lumpur, Malaysia
Dr. Daing Nasir Ibrahim, Universiti Sains Malaysia
Dr. Yuserrie Zainuddin, Universiti Sains Malaysia
Using survey data obtained from top manufacturing executives of 120 Malaysian firms, this study empirically examines the alignment, by way of interaction approach, between the Miles and Snow’s strategy and the use of multiple performance measures. Given the importance of non-financial performance measures in providing better indicators of performance, this study intends to address the contribution of multiple performance measures which are conceptualized as the balanced scorecard measures in supplementing financial measures with non-financial measures focusing on customer, internal business process, and learning and growth. The results show that the usage of customer and learning and growth measures when interacted with prospector strategy gives significant and positive impact on firm performance. Also, the usage of financial measures when interacted with defender strategy produces significant and positive impact on firm performance. However, no significant impact on firm performance was found for the alignment between the usage of all perspectives of the balanced scorecard measures and defender strategy.
Marketing of South Korean Tourism Using TV Miniseries
Yu-Shan Lin, National Sun Yat-Sen University, Taiwan
Dr. Jun-Ying Huang, I-Shou University, Taiwan
The number of Taiwanese visiting Korea hit a record high in 2004, accounting for a 65% increase over the previous year and taking the first place in destination of departure nationals. Tourism data from 1999 to 2004 also indicates that the total number of tourists visiting Korea has grown steadily. Korean TV miniseries have likely contributed to an increase in tourists visiting Korea. The phenomenon is worth studying in depth. Therefore, the study first classifies tourism induced by Korean TV miniseries. Then, how South Korea executes place marketing to attract tourists and how Korean TV miniseries use product placement to attract tourists to film locations is discussed. As quality of life has improved in developed countries, travel has become a widespread leisure activity. Travel destinations are affected by numerous factors, such as mass media advertisements, promotions by travel agencies and airlines, peer travel experiences, personal preference, etc. According to Taiwan Tourism Bureau data (see Table 1), 300,000 Taiwanese traveled to Korea in 2004. There was a 65% increase of the pervious year’s total and the growth rate took the first place in destination of departure nationals. Additionally, the number of Taiwanese tourists traveling to Korea has increased over the last few years, especially a sudden increase in 2000. This study assumes, based on the success of Korean TV miniseries “Fireworks” staged in Taiwan in 2000, that Korean TV miniseries play an important role in marketing South Korea to potential tourists. So far, more than 100 Korean TV miniseries have been broadcasted on several TV channels in Taiwan. In Dec. 2005, nearly 20 miniseries have been broadcasted at the same time.
Lies, Sans Sex, and Lacking Videotape
Jaciel Keltgen, Augustana College
Producing an annual report is never easy … for the organization reporting to its stakeholders or for the marketing firm charged with preparing the document. In an effort to better understand the challenges inherent in communicating gains and losses to stakeholders in a tight educational market, students at Augustana College, a Midwestern Christian liberal arts institution, undertook preparation of the college’s annual report. This project required students to work closely with college leaders -- including the CFO, President, Board of Trustees, and various vice presidents -- and progressed from ascertaining the client’s needs to gathering, writing, editing, designing and finding a way to print as well as make an online report available. With no budget. There are valid reasons why accountants and marketers don’t see eye-to-eye, as well as why marketing professors lecture ad nauseum about functional silos. Students were actually approaching product, price, place and promotion principles in an all-new and all-too-real experiential learning environment that dictated costs, time, client wishes and stakeholder expectations. Plus, they were being graded on their team efforts to learn marketing communications while dealing with edicts from difficult clients.
On-Line Research Survey Methodologies for US Government Contracts
Dr. Shawana P. Johnson, Global Marketing Insights, Inc. Independence, OH
In September 2004, the National Oceanic and Atmospheric Administration (NOAA’s Satellite and Information Service) contracted with Global Marketing Insights, Inc. to provide a comprehensive review of the international remote sensing market for aerial and spaceborne sensors based upon their specific requirements. As of 15 August 2005, 1,547 online surveys and 250 personal interviews had been completed. These surveys and interviews provide a sample from the following sectors: Aerial, Satellite, Software/Hardware, Commercial End User, Government and Academic. The survey results represent global input, with respondents from the US, Canada, Europe, Africa, Asia, Australia, Central America and South America. In addition to completing extensive technical and business components of the survey, the respondents selected technical, political, economic, and environmental trend information which they think will have the greatest impact on their businesses in over the next five years and to ten years. The research contract was awarded based upon the unique data collection approach used through on-line surveys and upon the development of a research partnership network focused on the sectors to be studied. It was this network that was responsible for driving potential survey respondents to the survey site.
An Optimal Product Design Constrained by Cost and Time
Dr. Shinn-Jong Lin, Shu-Te University, Taiwan, R.O.C.
Mu-Jung Lin, Ph.D. Student, National Chengchi University, Taiwan, R.O.C.
Lih-Mei Jang, Zhong-Xiao Junior High School, Kaohsiung County, Taiwan, R.O.C.
As the life cycle of products has greatly decreased, issues of how to improve the overall performance of product supply chains, and to strengthen product design ability, become increasingly important for firms seeking to maintain their dominant force. It cannot be emphasized more that researches on cost and time spent on product designs will benefit firms by strengthening and improving product design ability. This study identified the optimal product design under cost and time constraints; on the issue of product designs, this study employed other related models as references and suggested an optimal model through analyses and simplification. The objectives of this study are (1) literature reviews on product design; (2) to build a product design model that is sensitive to cost and time constraints, and guided by consumers’ and designers’ partiality; (3) to construct a mathematical model through various information on product designs; (4) to apply the model to product designs; (5) model simplification; (6) conclusion.
Blended Learning, Classroom and E-Learning
Stephen Mackay, Ph.D. candidate and Gary J. Stockport, Ph.D.
The University of Western Australia, Perth, Australia
The purpose of this paper is to provide an introduction to our research which is investigating blended learning within an industrial automation training environment. This paper compares and contrasts blended learning, classroom and e-learning. There has been a significant increase in the level of remote or distance learning using the Internet, often referred to as e-learning. This is either as a stand-alone approach or in a blended setting in combination with classroom learning. Blended learning (Bersin 2004) has grown in importance and is a combination of the different media such as classroom instruction, on-the-job training and e-learning. Claims have been made by authorities such as Whalen (2000) on the significantly improved cost effectiveness of e-learning compared to that of traditional classroom based training. This paper concludes with a review of current doctoral research and the proposed research by the authors to investigate the impact of blended learning on corporate industrial automation training. This paper is in line with the aims of The International Business and Management Research Conference (Hawaii) which publishes articles of interest to the business community in the areas of business education, educational planning and engineering as applied to business.
Pickles Will Make Employees Take the Unethical Low Road! How Employers Can Foster Ethical Decision-Making
Ron Rael, CPA, Institute for Courageous and Innovative Leadership, Seattle WA
Business leaders must be aware that they most often create situations, called Squeeze Plays, where the employee loses no matter what happens or faces extreme and unreasonable pressures to create a defined result. Using three actual work situations, I describe a tool the business leaders can easily use to understand why an employee may make the unethical choice. This tool incorporates the multiple options method as an excellent tool for training employees on making ethical choices. Included are ways that business leaders can spot Squeeze Plays and the most common places where these hidden pressures can be found. “Knowing your best interest and the company's best interest is in the forefront of every decision being made without you is really comforting.” Kate Spade Designer Business leaders must be aware of and avoid creating situations, called “squeeze plays,” where their employee loses no matter what happens or faces extreme and unreasonable pressures to create a defined result. Too often a business’s employee will make the choice that best serves his or her most immediate needs. If that choice is not the most ethical one, everyone suffers. Even though you as the boss think a decision will be carried out exactly as you planned, the end result may be that someone will lose. When this happens, the employee will be in a Gray Zone © and will default to his own set of ethical values. In this ethics strengthening strategy, you the leader will recognize some of your firm’s own squeeze plays.
Innovation Efficiency and the Market Valuation of R&D
Dr. C. Catherine Chiang, North Carolina Central University, Durham, NC
This paper investigates the empirical relationship between innovation efficiency and the market valuation of R& D spending. In an industry study of the computer software firms, I find that investors use both historical R&D productivity measure and forward-looking R&D productivity measure in valuing R&D spending. Specifically, investors assign more weight to a firm’s R&D spending if the firm has more frequent introductions of new products and upgrades or has higher percentage of technical employees. A firm’s ability to innovate is among the most important factors in the market valuation of research and development (R&D) spending. Other factors, such as the marketing and timing of its product introductions, can also affect a firm’s commercial success (Christensen 1997). If new products are expected to bring significant profits to the company, investors will pay a premium to buy the firm’s shares, pushing the stock price upward. On the other hand, if new products are expected to fail, the stock price will be adjusted downward, reflecting pessimism over the future cash flows resulting from the R&D investment. As such, depending on investors’ expectation of the success of the projects under development, R&D in a given period can be deemed as “probable future economic benefits” and priced as assets, or as “using up of assets” and be priced as an expense/loss. In other words, market valuation of R&D spending reflects investors’ perceptions about the probability and expected payoff to successful introduction of innovations.
Factors that Contribute to the Effectiveness of Business Coaching: The Coachees Perspective
Anna Blackman, James Cook University, Townsville, Australia
There is a lack of empirical research in to business coaching (Brotman, Liberi, & Wasylyshyn, 1998; Kilburg, 1996b, 2001; Lowman, 2005) and virtually no research into the effectiveness of coaching (Sue-Chan & Latham, 2004). This exploratory study explored the factors that participants believe make coaching effective and should be included in the coaching process. 114 industry professionals who had been through or were currently going through the coaching process responded to a questionnaire and their responses in regard to effective coaching are discussed in this paper. The findings focus on the main components involved in the coaching process: the coach, the coachee, the organization and the coaching process. The results suggested that the coach is the most important component and that coaches need to be trustworthy, have good communication skills and have credibility in the field they work in. While there have been many articles written about what coaching is and how to coach, little critical empirical research has been published about how effective or beneficial the coaching process is to the individual or the organization they work for, or into the processes involved in coaching. Despite this lack of critical research, business coaching is a growing field. Capuzzi (2003) claims that there are tens of thousands of coaches in the USA while Hyatt (2003) claims there are over 50,000 globally (Grant & Zackon, 2004). “As it is currently practiced, executive coaching appears to be an eclectic mix of concepts and methods that are being applied by a variety of consultants who have accepted assignments to work with individual executives. Traditional organization development methods, adult education, management training, industrial–organizational psychology, and generic consultation skills are being blended together” (Kilburg, 1996a, p59).
Four Strategies for Team and Work Structuring in Global Organizations
Vu N. Tran, NDS Americas, CA and Doctoral student, Pepperdine University, CA
Hugo M. Latapie, NDS Americas, CA
The demands of globalization and availability of advanced work collaboration technology have created new opportunities for designing team and work structures in multi-national organizations. Greater work efficiency, higher productivity, better market penetration opportunities, and lower development costs are achievable goals/outcomes with well-designed organizational structures that are congruent with a company’s purpose, culture, and capabilities. This report looks at one aspect, organizational forms, of our on-going work on organization design research. Here, we present four common strategic forms, or strategies, for organizing teams and work in collaborative global organizations. We describe the characteristics, strengths, weaknesses, and implementation effectiveness of each form. Our goal is to codify the context for systemized thinking about team and work structuring in global organizations.
Analyzing for Production Efficiency in Telecommunications Industry: The Taiwan Case
Chao-Chung Kang, Providence University, Taiwan
This study analyzes empirically the performance or efficiency change of the Chunghwa Telcom Company (CHT Co.) before and after privatization. Data envelop analysis (DEA) is used as the research tool in this study which finds that the efficiency has significantly improved after privatization. However, on average, their operation performances in pre- and post-privatization are not efficient because the technical efficiency, computed with the CCR-DEA and BCC-DEA, which is smaller than 1. To improve efficiency in operation performance, the CHT can increase the amount of output in non-fixed communications network service or reduce the amount of input variables to meet input resource allocation in pre-privatization. As for post-privatization; similarly, the CHT can also reduce the amount of input in total asset and capital expenditure or improve the productivity in non-fixed communication network in order to modify operation efficiency. Many economists, policy-makers, and corporate managers have long believed that operation of the private enterprises is more efficient than that of the public utility, according to the economic assertion (Sueyoshi, 1998). As a consequence, many government policy-makers deregulated public utilities for the partial or full privatization of utility sectors, especially in telecommunication service. Beginning with the British Telecommunications (BT) became the first public utility company to be privatized by the Conservative Government when its shares were offered for sale in November 1984 (Vickers and Yarrow, 1989). Up to now, governments of over 80 countries have partially or fully privatized their national telecommunication services. For instance, the Bell system in Canada, American Telephone & Telegraph (AT&T) system in America, and NTT (Nippon Telegraph and Telephone, NTT) in Japan, Korean Telecom (KT) in Korea, SingTel system in Singapore were also fully or partially privatized according to the Telecommunication Acts.
Key Components in the Development of Senior Executives in Australia
James B. Hunt, University of Newcastle, New South Wales, Australia
The purpose of this study is to provide an insight into the characteristics perceived to be most important to the management development of senior executives in a variety of Australian organisations. The study provides an update of previous research into the profiles of chief executive officers conducted by Mukhi (1982), and Sarros and Butchatsky (1996). In particular, this study extends the scope of Mukhi’s research in two ways. Firstly, the focus has been broadened to incorporate chairmen, managing directors, general managers, and chief executives. Secondly, the study includes an examination of the perceived importance of the following discipline-based fields of knowledge; human resources management, marketing, law, accounting and computer technology. This paper identifies and assesses the relative importance of 28 items relating to the management development of senior executives. Mailed questionnaires designed to gather both quantitative and qualitative data were sent to 101 senior executives throughout Australia over a two month period. The target sample was randomly selected through computer generation from a larger list of 404 senior executives whose names appeared in The Australian newspaper over a twelve month period. Because the perceptions of respondents are an important focus of this study, one of the sampling objectives was to secure responses from executives whose activities and/or comments have been considered newsworthy at the national level. This does not preclude the importance of achieving sufficient organisational diversity in the sample, an objective which was met in order to provide scope for variance analysis according to a range of factors including organisational size and business sector.
Using CHAID Decision Tree Algorithm for a Financial Performance Measurement Scale
Dr. Nermin Ozgulbas, Baskent University, Turkey
Ali Serhan Koyuncugil, Capital Markets Board of Turkey, Turkey
In this study, it is firstly aimed to obtain a performance measurement scale for the Turkish textile firms to evaluate financial performance. The second objective of the study was to determine the best performer firms according to this scale. In addition, this study also aimed to determine the financial strategies, which may be implemented by those bad financial performer firms in order to attain the level of financial power required for competition in international markets. A data mining method, CHAID decision tree algorithm, was used in the study for determining the financial performance level. The study covers 34 textile firms listed in the Istanbul Stock Exchange. At the end of study it was determined that Return on Equity can be used as a performance criterion for firms in textile sector, and that 41.18% of the firms involved in the study had good financial performance. In addition to these findings, it was also determined that the firms in textile sector must implement the strategies which involve maintaining high liquidity level, focusing on equity financing, and eliminating non-effective processes to improve their competitiveness both in domestic and international markets.
Teaching Students to Write Effective Email
Dr. Thomas Clark, Xavier University, Cincinnati, OH
Email is a genre which is becoming the dominant form of communication in both the for-profit and not-for-profit world. This essay describes the pedagogy used to teach students at Xavier University how to write effective email. It describes the rationale for instruction in this genre, provides five guidelines for effective email composition, and uses before and after examples drawn from the business world to illustrate the application of these principles.As the director of the business communication class required of all Xavier University business majors, my most significant challenge is creating a class that teaches students communication skills that have immediate practical impact in their professional lives and careers. In talking with students, especially the adult students in my evening and weekend classes, and in reading their class evaluations, I have found they believe the segment of the class that best meets this criterion is our analysis of how to write effective email. They tell me that when they implement the simple steps we cover in class, their managers respond to their needs faster and hold them in higher esteem. This illustrates the point that everyday communication often has a larger impact of how others perceive one’s talents than do longer, and perhaps strategically more critical documents, such as proposals, direct mail and collection letters, and formal reports that often constitute the writing assignments many of us have used historically in this class (Hawisher & Moran, 1993). In addition, using a short message medium allows me to easily demonstrate the maxim that Every word counts or as Mark Twain put it, The difference between the right word and the wrong word is the difference between a fire and a firefly.
Contextual and Operational Determinants of Export Performance of Companies in Europe
Joao Pedro Almeida Couto, University of Azores, Portugal
Maria Teresa Borges Tiago, University of Azores, Portugal
Jose Cabral Vieira, University of Azores, Portugal
Mario Amaral Fortuna, University of Azores, Portugal
Both for governments and enterprises, there are substantial benefits to be gained from exporting. Considering the export performance of subsidiaries of multinational companies and the relation between FDI and trade performance, a study was conducted on multinational companies operating in Europe. A sample of 239 companies in twelve countries was selected for the purpose of analyze the level of exports through the percentage of total sales, using a regression model. The contextual variables of each country’s operations were analyzed, considering the influence of national culture, based on Hofstede’s (1987) indicators of power distance, individualism, uncertainty avoidance, masculinity and economic level. These indicators were then measured by per-capita GDP and combined with internal aspects like dimension, age of the company, industry and national origin of the company as measures of the management model. In the last three decades, the global context in which firms develop and implement business strategies has changed considerably. Globalization has evolved to a more regionalized process approach and a greater country-specific adaptation of significant variables than predicted. In such an environment, multinational companies (MNC) may increase the transfer of marketing activities to foreign subsidiaries. The benefits of decentralized initiatives have been mentioned by several authors such as Pearce (1997), Birkinshaw (2000), Holm and Pederson (2000) and Birkinshaw and Hood (1997, 1998a, 1998b). This transfer of global marketing activities is a central concept of this paper. The relationship between global marketing strategy and export performance has been well studied and a review of export marketing fields identifies several streams of research. However, past studies focused more specifically on the export performance of multinational companies and neglected the subsidiaries’ role.
Analysis of the Conduct and Performance of the Practice of Universal Banking in Nigeria
Dr. Adeleke Salami, Adekunle Ajasin University, Ondo State, Nigeria
Since the evolution of the banking business in the 15th century, it has faced various changes over time that has moved the banking industry from very conservative regions to fairly speculatively reins. The banking industry commenced largely on the issue of receipts for gold deposits has moved from the used of banknotes to cashless society, which credit cards have taken over. We have also witnessed various types of banks being established for different purposes and meeting these needs. In Nigeria various Development Finance Institution (DFIs) has been established for different purpose by either governments or groups of people interested in such establishment. At first the DFIs, which were established as to meet needs, have moved from self-sustaining and non profit and loss making situations to reporting profit. It is important also to note the removal of the wall of partition between commercial and merchant banks. Hitherto, banks were known by their functions. Now we have situations where banks just want to be banks without attachment to any particular function but being able and allowed to practice all financial businesses, this is the Universal Banking Practice. From various parts of the world the need to move from a compartmentalized banking to one stop banking system has taken center stage, and Nigeria as a member of the world comity of nations could not be left out. Apart from the reason stated above, the grouse of the merchant banks were reinforced with a uniform level of capitalization for both types of banks and deep forays into areas reserved for investment banks by commercial banks. The compulsion of the investment banks to maintain chequeing accounts with commercial banks became grounds in Nigeria. With the Governor of the Central Bank of Nigeria, CBN exercising his powers reviewing the section 6(1) of Banks and Other Financial Institution Decree BOFID 1991 as amended approved a new guidelines for implementations of universal banking business in Nigeria.
An Investigation of Work Values and Resulting Job Satisfaction in Relation to Two Work Roles in Thailand
Dr. Pennapha Dhanasarnsilp, Saha Pathanapibul Public Company Limited, Thailand
Dr. Herbert Johnson, Nova Southeastern University
Dr. Sirion Chaipoopirutana, Assumption University
Employees’ effectiveness is the key major to accomplish the organizational goals and job satisfaction is one of the most important factor influenced employees’ effectiveness. Motivation, task status, monetary, rewards, etc. are essential factors in job satisfaction and are important dimensions related to work values. The study focused on the possible differences in work values and job satisfaction in two work categories, wholesale sales personnel and factory manufacturing personnel, and the relationship between work values and job satisfaction of each work setting as moderated by demographic factors. The Survey of Work Values instrument developed by Wollack et al., and The Job Descriptive Index developed by Smith et. al., were employed. The independent variables are sales personnel, manufacturing personnel, age group, income levels, gender, educational levels, job experiences, and ethnicities. For this study, the researcher developed six hypotheses. The sample included 208 of sales personnel and 209 of manufacturing personnel. The statistical treatment used in evaluating the hypotheses included: T-test, Pearson Product Moment Correlation Coefficient, and Two-Way Analysis of Variance (Two-Way ANOVA). A significant relationship between work values and job satisfaction for manufacturing personnel was found while no similar relationship was found for sales personnel. Also, there was a significant difference in job satisfaction between the two work category groups but not in work values. Findings relating work values and demographic factors were not statistically significant. Job satisfaction was found to be related to educational levels and ethnicity in sales personnel.
On Amended Generalized Price and Supplier’s Merit in Supply Chain Management
Cornel Resteanu, National Institute for Research and Development in Informatics, Romania
Marius Somodi, University of Northern Iowa, Cedar Falls, IA
This paper introduces the new economic notion of amended generalized price, and its dual notion, the supplier’s merit. Industrial plants make use of three types of acquisitions: by direct orders, by auctions and either by loan, if the plant belongs to the discrete process plants, or by processing business, if the plant belongs to the continuous process plants. Because in the last two cases the business partners take care of supplying, the plant focuses on the first two types. In order to assist the plant supplying activity, the authors developed the software named Tele-SUPPLY, which is an E-Advanced Decision Support System. The paper presents the Internet-based direct / by auction orders launching procedure using amended generalized prices and suppliers’ merit. One of the most important issues in the Supply Chain Management (SCM) of an industrial plant is the offers demand – offers processing – orders launching cycle’s optimal management. In order to be competitive, the plant must have a well-defined supply policy. The same condition applies to the supplying plants, the supplying plants of the supplying plants, and so on (Grieger, 2003). For cheap and moderate investments, the production supply chains may be well served by regular e-procurement tools. However, for significant investments, a special tool must assist the supply chain. Therefore, the information systems of all the industrial plants participating in a supply chain must include a modern Internet-based component dedicated to the supply activity. This component should openly allow worldwide potential suppliers to make offers in response to different offers demands (Amor, 1999; Ayers, 2002; Simchi-Levi et al., 1999; Industrialhub, 2006). In this way, for the same time level and horizon, multiple offers for the same buying object can be considered (for continuous production: raw material, auxiliary material, ingredient, etc; for discrete production: ensemble, sub-ensemble, component, material, etc; for side activities: tool, spare-part, combustible, lubricant, protection equipment, etc.) and the plant can accept the best offers. The Tele-SUPPLY software was developed by the authors to support the supply activity of an industrial plant. It allows potential suppliers to submit offers for buying objects via Internet.
Can Knowledge Management Create Firm Value? Empirical Evidence from the United States and Taiwan
Hua-Wei Huang, Diwan College of Management, Taiwan
Dr. Hong-Yu Shih, Leader University, Taiwan
Dr. Hsiao-Wen Huang, Chang Jung Christian University, Taiwan
Che-Hung Liu, Florida International University, FL
In the era of emerging knowledge economies, firms have found success with effective knowledge management. Especially during the period after the passage of Sarbanes-Oxley Act, the integration of process compliance, performance measurement, and knowledge management throughout an organization is essential for future firms. However, prior literatures have scarcely measured how knowledge management enhances firm value. Recently, Sabherwal and Sabherwal (2005) constructed a link between knowledge management and firm’ value. In this paper we extend the results from earlier research about cumulative abnormal returns (CAR) resulting from IT-based KM announcements and investigate further how the KM process impacts a firm’s value. Our sample includes 253 firms selected from the 2002 Stern and Stewart Russell Top 1000 Report, using Compustat 2002 financial data. We find that in fiscal 2002, as in SS (2005) for CAR, (1) industry innovativeness aligned with KM process; (2) firm efficiency aligned with KM process; (3) firm size, performance, and growth aligned with KM process; (4) firm diversification aligned with KM process to have significantly effects on firm value. We further test the Taiwanese TEJ Data and find that the Taiwan electronic industry’s high innovative ability to create new knowledge, which has also a positive effect on firm value. Our results suggest that it is worthwhile to utilize effective knowledge management to create firm value both in the U.S. and developing countries.
Accounting System of an NGO: A Case of Jagrut Grahak Mandal
Dr. Jatin Pancholi, Middlesex University, London, UK
Dr. Ashwin Modi, Hemachandracharya North Gujarat University, Patan, Gujarat, India
This case study emphasizes on management accounting system of a non-government organization which is operating into voluntary service sector in western part of India. Jagrut Grahak Mandal (JGM) is an organization established to create awareness of the consumers, investors and general public and there by serve the society. This case attempts to analyze the management accounting practices of an NGO and tries to highlight the intricacies of an NGO’s responsibility towards it stakeholders such as donors, members, regulator authorities, and the society at large. The case highlights different perspectives of accounting and introduces contemporary model of the Balanced Score Card. Jagrut Grahak Mandal (JGM) is located in Patan district in the North Gujarat region of western India is registered as a Public Trust since 14th October, 1985. It is permanently recognized by Food and Civil Supply Department Gujarat state since 19th March, 1991 and grantable continuously since 1987. It is one of the only nine such Investors’ Association’ all over India which are granted by Securities and Exchange Board of India (SEBI). SEBI is the supreme most authority of government of India to control and regulate capital markets. JGM has been started with 10 members committee in 1985, then onwards Mr. T. D. Mehta has been elected as a president. Today in 2006, he is of 80 years and yet he is very hard working and energetic social activist. He cannot tolerate corruption and malpractices done by the traders and companies and as a result many of the cases are still pending in the consumer court of India.
An Empirical Study of Web Site Quality, Customer Value, and Customer Satisfaction Based on E-Shop
Hsuehen Hsu, Nova Southeastern University, FL
As online shopping increases, the online retailers are increasingly being held to the same performance standard as business operating in the traditional market. This study is to examine the relationships among web site quality, customer value, and customer satisfaction. Results showed that web site quality and customer value have positive relationships with customer satisfaction. In terms of impact, the web information quality has stronger relationship with customer satisfaction than Web system does. This research also depicted that the performance outcomes is the foremost concept of customer value. E-business is a trend for consumers or companies to trade over the Internet. Forrester research predicts that online retailing will reach $12.8 trillion by 2006. Therefore, companies have taken advantage of this trend by strategically evaluating their internet worthy products. The technology of e-commerce decides what can be offered to customers, but only customers determine which of those technologies will be accepted. The success of e-commerce depends on knowing customers. Many e-business companies are looking for new customers, and place emphasis on consumer growth rate. Companies develop many promotional campaigns to attract new customers. The most fundamental factor for sales revenue is customer satisfaction. Thus, the objective of this paper is to discuss customer satisfaction from the perspective of web site quality and customer value.
An Empirical Inquiry into the Recent Trends of Personal Injury Compensation in Hong Kong
Dr. Felix W. H. Chan, The University of Hong Kong
Dr. Wai-sum Chan, The Chinese University of Hong Kong
In Hong Kong, the assessment of future loss of earnings is arguably the most controversial and difficult aspect of personal injury compensation. The fundamental principle is that an injured claimant is entitled to recover the amount that he or she would have earned but for the wrong committed by the tortfeasor. This research paper empirically surveys the recent trends of personal injury compensation in Hong Kong. Actuarial tables are applied to cross-check the actual amounts of damages that were awarded by the courts. The research findings indicate that younger victims are being under-compensated. The damages that are awarded are insufficient to cover their losses of future earnings. Legal reform is necessary to address this loophole. In addition to general damages for pain, suffering and loss of amenity, injured plaintiffs are entitled to ask the court to look into the future, and project what pecuniary losses they will suffer as a direct consequence of the injury. The main heads of such loss include the cost of future care, future lost earnings and profits in the years remaining and after retirement. The basic principle is that injured individuals are entitled to recover the sums that would have earned but for the injury. In British Transport Commission v. Gourley (1), Lord Jowitt of the UK House of Lords said:
Taxes and Birthdays
Priniti Panday, Ph.D., Roger Williams University, RI
Maria Cornachione Kula, Ph.D., Roger Williams University, RI
Phillip Chesky, Roger Williams University, RI
“People respond to incentives” is a common economic principal that students learn in their first economics class. If so, does the timing of birth respond to tax incentives? This paper studies the following issues: (1) In general, is there a tendency for more deliveries in December than in January? (2) How do the effective and marginal tax rates differ for households with and without children? (2) Is there any relationship between the discrepancy in January and December births to the discrepancy in tax rates facing households with and without children? Economists have studied the effect of tax incentives on labor supply, charitable contributions, capital gains transactions and marriage. One study (Dickert-Conlin and Chandra (1999)) looks at the effect of tax incentives on the timing of birth. The tax savings of having a child in any particular year can be exploited only if the child is born before December 31st of that year. Hence a child born at the end of a year provides her parent/parents with a full year’s deduction. Dickert-Conlin and Chandra (1999) find the probability of a child being born in the last week of December as opposed to the first week of January to be positively correlated with tax benefits. The data used spans the time period from 1979 to 1993. Since the publication of this study, several major changes have taken place in the tax system of the United States, most of them favorable to households with children. Section 3 provides a detailed report of these changes.
Wage Determination in Estonia
Dr. Grigori Fainstein, Tallinn University of Technology, Tallinn, Estonia
Dr.Kaie Kerem, Tallinn University of Technology, Tallinn, Estonia
Natalie Lubenets, Tallinn University of Technology, Tallinn, Estonia
The main objective of this paper is to analyze wage determination theories and relate them to Estonian labour market. Labour market institutionalisation has been very weak in Estonia on the last decade and so the impact of centralised wage bargaining system on the market wage has been marginal. Therefore, traditional wage determination models cannot be directly applied in case of Estonia. The main attention in this paper is paid to studying if the efficiency wage model can be applied and looking at sectoral wage determination to establish the wage setting leaders. The estimations of sectoral wage equations showed that there is no universal model that applies to all sectors. We found also a substantial rent-sharing in the Estonian manufacturing wages. During the years of transition up to now Estonian economy is extremely open and liberal. That concerns basic economic legislation, tax system, foreign trade regime and labour market, first of all, wage formation. Estonian labour unions are relatively weak and the wages are bargained principally at the enterprise level. Although a priori the absence of wage bargaining coordination at the national or sectoral level is seen as a factor contributing to real flexibility of the economy, the mechanisms of atomistic wage formation need to be studied as they can bear potential risks to macroeconomic competitiveness. At the heart of this problem is a question of fair rent sharing vs. the efficiency wage model and inter-sectoral wage spillovers.
Internet Congestion Control Algorithms – A Stochastic Approach
S. Ravi Jagannathan, University of Western Sydney, Australia
Dr. Kenan Matawie, Sr. Lecturer, University of Western Sydney, Australia
Consider an Internet traffic source sending packets into a single link connected to (an)other source(s). The source’s “window” is the maximum number of packets discharged without waiting for acknowledgement, at any point in time. Such a window concept is the cornerstone of a number of congestion control algorithms, such as Tahoe, Reno, NewReno, Vegas and Sierra (partly rate-based). All these are briefly treated. We then develop quantitative models for the performance (throughput) levels of all these algorithms. It is shown that Sierra is by far, analytically, the most superior among all these algorithms. A goal of this chapter is to introduce the neophyte in congestion management to the discipline and then be in a position to contribute meaningfully to the literature. As such, all concepts introduced are motivated and developed from the ground up. We begin the discussion by briefly describing the TCP/IP protocol stack, for the sake of completeness and overview. This is followed by a quick treatment of some popular congestion control algorithms, including TCP Tahoe/Reno, TCP Vegas and our Sierra. Sierra is developed elsewhere in detail. Our position is that researchers can gain further insight into the behavior of TCP through the use of mathematical modeling. The basic paradigm is the “buffer overflow model” which is the cornerstone of all our analysis of key congestion control algorithms. Unlike say, systems in modern physics, it is true that all aspects of TCP and its progressive evolution in behavior over time, are fully under our control. However the sheer scale of TCP’s operation and domain is tremendous, and is probably the very largest and most complex man-made control system ever deployed. To attempt to “capture” any system of this magnitude, we need mathematical models. Indeed there are, in the literature, a number of such (complex) models.
Impact of Organizational Memory on Organizational Performance: An Empirical Study
Dr. Li Zhang, Harbin Institute of Technology, Harbin, China
Yezhuang Tian, Harbin Institute of Technology, Harbin, China
Zhongying Qi, Harbin Institute of Technology, Harbin, China
Organizational memory and knowledge management are two topics that have recently grown in importance for businesses and academics. Knowledge is an important asset in organizations. Organizational memory integrates all kinds of organizational knowledge, organizational memory is regarded as the central prerequisite for IT support of knowledge management. Organizational memory is the means by which previous knowledge is brought to bear on present activities, thus resulting in higher levels of organizational performance. This study describes four constructive factors in organizational memory, and proposes a conceptual model on the impact of organizational memory on organizational performance. Based on the data from Chinese manufacturing companies, canonical correlation analysis is conducted to test the impact of organizational memory on organizational performance. The results show that organizational memory is a dynamic process, and that the constructive factors of organizational memory affect organizational performance. In today’s knowledge-based economy, knowledge is an important organizational asset. The creation, acquisition, and effective utilization of knowledge are key factors in a successful organization. The sum of all knowledge assets owned by an organization constitutes its organizational memory (OM) (Kingston and Macintosh, 2000). OM is a central concept used to describe the repository for organizational knowledge (Robey et al., 1995). OM integrates all kinds of organizational knowledge, and extends and amplifies this asset by capturing, organizing, disseminating, and reusing that knowledge (Conklin, 1996).
International Working Capital Management
Dr. Hadley Leavell, Sam Houston State University, TX
Managing working capital internationally is increasingly important as more firms erase geographic boundaries. Formalizing an analytical method of maximizing capital and cash flow is essential to the expansion of multinational corporations. With secure Internet resources, decisions and changes can now literally be made 24/7 irrespective of time zones. The pros and cons of shared service centers and outsourcing will be discussed. A strong emphasis on working relationships with service providers to take advantage of global network banks is recommended. The multinational corporation must configuration a solution to maximize corporate treasury international cash management. International working capital is defined as the capital needed to carry out day-to-day operations of a multinational corporation (MNC). Cash flow from international working capital may be essential for short-run corporate solvency. Di Vito (2000) describes working capital management as the management of an MNC’s current accounts to strike a balance between risk and profitability. Blumenn and Pinfield (1994) delineate international cash management (ICM) on two levels. The first level occurs when the MNC is operating cash management systems in multiple countries and each country is seen as a domestic system in the respective country. This first level is implemented because of country-specific variations in regulations, customs, and local cash management instruments. The second level connects and integrates all the domestic systems with the other aspects of the MNC’s business.
The Relationship between Corporate Social Performance and Corporate Financial Performance: Industry Type as a Boundary Condition
Masud Chand,, Simon Fraser University, BC, Canada
This paper examines the relationship between Corporate Social Performance (CSP) and Corporate Financial Performance (CFP). It starts with a brief look at the numerous previous studies that have been conducted on this topic, and the reasons for their lack of consensus and comparability. It then makes the case for the use of industry type as a boundary condition for exploring this relationship. This would overcome the problems that previous cross sectional studies had faced. The paper then goes on to demonstrate that once industry type is established as a boundary condition, the relationship between CSP and CFP is clear and positive. The link between the Corporate Social Performance (CSP) and Corporate Financial Performance (CFP) has been exhaustively investigated over the last 30 years. In fact, between 1970 and 1995, 51 studies have examined this link. Almost all these studies have been cross sectional studies that looked at organizations across different industries. This paper suggests using industry type as a boundary condition for investigating the link between CSP and CFP. Controlling for industry will eliminate all the environmental differences that organizations in different industries face that tend to cloud this relationship. This paper will go on to demonstrate that controlling for industry, a clear positive link can be shown between CSP and CFP. This link is stronger when between poor CSP and poor CFP; it is somewhat weak in the correlation between good CSP and good CFP.
International Productivity Paradox of IT in Commercial Banking: A Cost Efficiency Analysis
Dr. Winston T. Lin, The State University of New York, University at Buffalo, NY
Dr. Hong-Jen Lin, Nyack College Manhattan Center, NY
This study investigates how Information Technology (IT) investments affect the productivity of the commercial banking industry across developed and developing countries. We employ the stochastic cost frontier approach to explore a data set composed by 51 countries all over the world. We have found that IT contributes positively to the cost efficiency of commercial banks in the sub-sample of developed countries. Hence, the evidence of this study supports the conclusion of literature that IT enhances productivity for commercial banks in the developed countries and does not improve that in the developing economies. In addition, the contribution of IT becomes positively significant when the new millennium is approaching. During the past decade, the use of information technology (IT) has become more and more intensively in a variety of industries. Intuitively, IT investments should contribute to productivity of a firm. But evidence shows that higher IT spending is associated with lower productivity (Brynjofsson, 1993). That is, the intensive and extensive use of IT might not be rewarded, which makes it difficult for IT managers to justify the IT investment. This phenomenon is called productivity paradox of IT (Hitt and Brynjolfsson, 1996; Brynjolfsson and Yang, 1996; Dewan and Kraemer, 2000 and Lin and Shao, 2000; among others).
Distributive and Procedural Justice as Predictors for Organizational Outcomes in Korea and Malaysia: An Integrative Model
Jong-Wook Kwon, Kangwon National University, Chuncheon, Korea
The purpose of this paper is to investigate the effects of distributive and procedural justice on organizational commitment and the intent to stay based on data from Korean and Malaysian employees. An integrative justice model derived from the reviewing of previous justice studies was developed and empirically examined using data from 312 Korean and Malaysian employees. Among the four models composed integrative model, The Two-Factor Model was not supported in the case of both the Korean and Malaysian employees. The Cultural Model was partially supported in the case for Korean employees, but not for the Malaysian employees. The Gender Moderation Effect Model and The Interaction Model were also partially supported. Implications for this research and further studies are then suggested. This article develops and empirically examines an integrative justice model derived from a review of previous justice studies, using data from 312 Korean and Malaysian employees. Distributive and procedural justice has been one of the most widely studied constructs in justice research fields. Distributive justice refers to the perceived fairness of the content and the consequences, whereas procedural justice is related to the perceived fairness of the means or the process of decision making for the distribution (Folger and Greenberg, 1985). However, relatively few studies have looked at the relationship between justice and work-related outcomes for Asian employees from organizational settings (Greenberg 1987; Cropanzano and Folger, 1989). To date, previous justice studies have offered only limited implications on how international human resources managers should treat multinational corporation (MNCs) employees in Korea and Malaysia who have different cultural backgrounds.
A Survey of Machine Shops Scheduling Techniques
Saeed Mohaghegh, Assumption College, Worcester, MA
Machine shop scheduling is a complex task. Various approaches to machine scheduling have been employed by a variety of machine shops in the United States. A survey of machine shops in central Massachusetts showed that a high percentage (40%) of them used the transportation method of linear programming or some other optimization techniques for scheduling their machines while sixty percent (60%) did not find these algorithms practical in a dynamic and stochastic environment. For these shops, static and deterministic scheduling is not feasible due to the complexity associated with numerous setups, bottlenecks, capacity and demand constraints, and supply chain management problems such as materials shortage and frequent changes in lead times and delivery schedules. These shops used theory of constraints, material requirements planning, and just-in-time methods for scheduling their machines. The present machine shop manufacturing environment demands the production of various quality products at reasonable costs due to globalization, mass customization, supply chain management efficiencies and just-in-time (JIT) purchasing and production, shorter production lead time, and customer demand uncertainty. The need for flexibility and quick response in the intense global competitive arena has increased the importance of production scheduling methods and decisions. Cost leadership is used to reduce production costs without sacrificing the quality of the product and the value to the customer. Machine shop facilities need to reevaluate the effectiveness of their machine scheduling methods in order to remain or become competitive in today’s economy when cost cutting and on-time or faster delivery measures are the best means in gaining market share and improving profitability of the organization.
A Study on the Characters of Leader and Followers of Charismatic Leadership – The Example of Employees at a Port Authority
Dr. Yuan-Duen Lee, Chang Jung Christian University, Taiwan, ROC
Ya-Fu Chang, Chang Jung Christian University, Taiwan, ROC
Charismatic leadership is an important concept in the recent development of leadership theory. For Taiwanese government agencies and state-owned enterprises, the influence of a leader derives primarily from the authorization of legal powers. However, the international ports in Taiwan are structured as government organizations, whereas their operations are targeted at and face competitive pressure from international ports operating as companies in the private sector. Thus, the leadership of port management may affect employee’s enthusiasm in work and followers’ incentives in reaching organizational goals. With employees of the port authority of Kaohsiung, the world’s sixth largest container port in 2004, as the subjects of research, this paper tried to understand the differences of cognition of charismatic leadership by public servants in the port authority on the characteristics of charismatic leadership and feasibility and directions of charismatic leadership in state-owned ports through interviews and questionnaires. The findings could be a useful reference for the leadership of state-owned ports.
A Study on the Organizational Innovations in Taiwan’s Logistics Industry
Dr. Chieh-Yu Lin, Chang Jung Christian University, Taiwan
In order to survive in the highly competitive times, logistics service providers must pay more and more attention to innovations to provide better services for their customers. This paper will study the factors influencing the organizational innovation for logistics service providers. Based on the results of reviews of related literatures and interviews to some experts, a questionnaire is developed to survey the organizational innovation for logistics industry in Taiwan. The influencing factors are divided into three major parts: individual factors, organizational factors, and environmental factors. The method of factor analysis is used to find some major configurations of influencing factors. It can be found that individual and organizational factors have greater influences on organizational innovation for the logistics industry than the environmental factors. In addition to the exploration of influencing factors, this paper also studies the development of organizational innovation in the logistics industry in Taiwan. The characteristics of organizational innovation for the logistics industry are summarized from the perspectives of technical innovation and administrative innovation. According to our research about organizational innovation for the logistics industry, logistics companies can plan better strategies to construct their organizational innovation systems and to make them become innovation-based logistics service providers.
Product Relocation and Resistance to Change
Dr. Tarek H. Selim, The American University in Cairo
This paper considers a duopoly market characterization where demand is horizontally differentiated by taste while firms vertically differentiate their products based on quality location. However, firms are able to relocate their product offerings based on changing consumer taste. In general, it is found that a “resistance to change” exists such that firms dislike quality relocation and prefer stable preferences in quality. Yet, a relative change in horizontal preferences may result in wider quality spreads in the market through vertical quality relocations, even though the resistance to change argument may still hold good. The analysis of endogenous quality choice under fixed and variable costs of quality by Motta (1993), as an extension of the works of Champsaur and Rochet (1989), and Vives (1985), set an interesting exposure into the area of differentiated quality choice under different cost assumptions of quality and output (capacity), given flexible preferences for consumer taste. However, such studies did not cast a full exposure of the impacts of flexible choice on brand relocation except in the form of discussion of such behavior using willingness to pay in demand. The interaction between flexible choice in demand to brand relocation in supply constitute the core of analysis in this research. Such is the motivation for this paper. In our current analysis, the notion of “flexible preferences for consumer taste” is examined more fully under the following general scenario: (1) consumers are uniformly differentiated by taste using unit transportation costs, (2) firms produce a single brand each, (3) there is an asymmetric cost structure in production (fixed and variable), (4) brands are differentiated based on quality location but can be relocated based on changing transportation costs, (5) the market is a duopoly, and finally, (6) competition is in prices.
The Internationalization of American Business Education: Are U.S. Business Students Less Ethnocentric?
Dr. James Walton, University of Houston-Victoria, Victoria, TX
Dr. Peter Basciano, Augusta State University, Augusta, GA
Although AACSB feels that “every student should be exposed to the international dimension of business through one or more elements of the curriculum,” they do not suggest any particular method for doing so. Schools have attempted to meet this mandate in a variety of ways. This study looks at one effect of internationalizing the business curriculum on business students. The results show that overall business students are less ethnocentric than their non-business counterparts and that those students who had taken a course in international business were considerably less ethnocentric than those who had not. Since 1974 a major part of the American Assembly of Collegiate Schools of Business (AACSB) accreditation process has been the inter-nationalization of the business education curriculum. From 1974 until 1993 AACSB Standards for Accreditation evolved from simply encouraging an increase in the “international business content of the curriculum” to requiring undergraduate and graduate curricula specifically to include “global issues” and “global economic environments” [Fugate & Jefferson 2001, p. 160]. Although almost everyone involved seemed to agree about the importance of international business education, nearly two decades later only slightly over half of business schools surveyed reported that they had written mission statements that “included specific references to international or global business as part of their education and research mission [Kwok, Arpan, & Folks, 1993, p.609], and only 18% of those schools agreed that students “should develop expertise in international business” [p.610].
The Use of Bayesian Decision Analysis and Strategy Matrix for Quality Control Decisions
Dr. Awni Zebda, Texas A&M University-Corpus Christi, Corpus Christi, Texas
Bayesian decision tree analysis and strategy matrix have been widely used as a basis for quality control decision making. The traditional decision trees seem to be more efficient than strategy matrix. Recently, however, the traditional decision tree analysis has been criticized for requiring a lot of calculations and, therefore, being inefficient. As a result, some researchers have proposed new alternatives to decision tree analysis, including influence diagrams and valuation networks. These methods are said to be more efficient than decision trees in that they reduce the number of calculations needed to solve decision problems. This paper presents a modified decision tree analysis for quality control decision making that improves the efficiency of the traditional decision trees analysis. For some decision problems, the proposed analysis reduces the number of calculations required to solve decision problems by more than 75%. The paper also shows that the proposed analysis is more efficient than strategy matrix and, while preserving the advantages of the traditional decision trees analysis, is as efficient as valuation networks and requires less calculation and, therefore, is more efficient than influence diagrams.
Significance of Computing Capability of Asian-American Business Leaders Upon Online Search Strategies
Dr. James L. Morrison, University of Delaware, Newark, DE
Dr. Titi Oladunjoye, Albany State University, Albany, GA
Based upon a survey of Asian American business leaders in the U.S., it may be concluded that individual computer capability is not a significant factor when searching for information online. In this regard, it was also conclude that those Asian leaders with higher degree of computer capability have similar perceptions of the Web and perceive their strategies as somewhat similar than those with lesser degree of confidence. Computer capability is also less of a significant factor when making decisions as to the credibility of information sources located. The Rand Research Group (2004) claims that the Internet is one of the fastest growing media in the world. According to Kerns (2003), Internet usage and values-driven workplace go hand in hand. In this regard, Kerns states that leaders with strong virtuous values are more likely to act ethically than are leaders who are operating with a weak value system. When faced with challenging decisions, leaders who have an internalized value system gain a better competitive advantage in the marketplace. Along this same line, Griffy-Brown (2004) further concludes that the Internet is now an integral part of a value-drive workplace and has transformed leader, customer, and employee performance.
An Evaluation of State Supported Marketing Programs: A Case Study Approach Using Results of the 2005 GO TEXAN Member Survey
Dr. Roger Hanagriff, Sam Houston State University, TX
Dr. Stanley Kelley, Sam Houston State University, TX
Dr. Michael Lau, Sam Houston State University, TX
Dr. Tim Murphy, Texas A&M University, TX
Many state sponsored promotional programs began in the early 1980’s. This is due in part to the widespread agricultural recession and the “New Federalism” of the Regan administration, which shifted federal programs to the state level. The administration of these state promotion programs typically rests with the states’ department of agriculture. A key component of many state programs is the provision of information on the perceived characteristics of state-grown or locally-produced products. An analysis of the Texas agricultural marketing program, GO TEXAN, was conducted to better illustrate the potential impact of state sponsored marketing programs. This analysis uses the Texas program as its basis, but provides information beneficial for all states in demonstrating the potential impact of state sponsored marketing programs. The data was collected in August of 2005. GO TEXAN Members were surveyed to assess changes in gross sales, participation, and other attributes important to program evaluation.
Generation Y Consumers: Behavioural Patterns of Selected South African Students
Tania Holtzhausen, Tshwane University of Technology
Prof. Johan Strydom, University of South Africa
Generation Y: a generation that has baffled marketers that were used to their predecessors, Generation X. An optimistic generation, they display particular behavioural patterns that often define their attitudes towards life. Suzanne Kapner (Restaurant Business, 1997), describes Generation Y as “idealistic” and “socially conscious”. Tertiary students are part of this fascinating generation. Various studies completed in the United States of America, as well as the United Kingdom, illustrate the buying behaviour of students. Marx (1995:40) asserts that students are brand loyal and brand conscious. One of the reasons behind businesses targeting the student market is that they are “… entry level to the upscale adult market”, according to Stuart Himmelfarb of the American Passage Marketing Corporation (Marx, 1995). Students’ long-term potential as brand loyalists make them a very attractive market. During the student years, the distinctive consumption patterns they display will most likely remain, as they become adult high-spenders (Neuborne & Kerwin, 1999). Tertiary students are also viewed as early adopters of product innovations and are “… considered trendsetters who wield a strong influence on their peers and families” (Rieger, 1992). Generation Y is additionally typified as being “… highly consumption-oriented and sophisticated in terms of their tastes, aspirations and shopping skills” (Schneidermann, 2000).
Cultural Diversities Between Singapore and Australia: An Analysis on Consumption Behavior
Dr. Kritika Kongsompong, Chulalongkorn University, Bangkok, Thailand
This study investigates the potential differences in consumer behavior in two cultural settings. Of particular interest, the research investigates the relationship between the amount of social influences that occurs in purchasing decisions and people’s orientation toward locus of control. This construct has widely been recognized as a factor capable of explaining important dimensions of consumer decision making. The results show that men and women from the collectivist country (namely Singapore) exhibit more external locus of control tendencies than men and women from a typical individualist country (Australia). Thus, the latter group is found to exhibit a greater degree of internal locus of control in buying situations. This study also reports that Singaporean men and women are more responsive to social influence in a hypothetical buying situation than that of their Western counterparts. Managerial implications are discussed and direction of future research is also recommended.
Availability and Security for Complex Enterprise Web Services
Saida Ziane, Ecole Supérieure Libre des Sciences Commerciales Appliquées ESLSCA, Paris
Hichem Bacha, Ecole Supérieure Libre des Sciences Commerciales Appliquées ESLSCA, Paris
Web services are a new technology for the development of distributed applications on the Internet. In the last few years, Web service technology has gained more and more attention in research and industry. Several frameworks were proposed and all shared the opinion that services are important for easy application collaboration and integration. They try to provide appropriate tools and a complete infrastructure for implementing and executing Web services. Dynamic Web services integration consists of the process of creating new services at runtime from a set of service components. It supports business agility, flexibility, and availability, which are features of critical importance in the modern business world and in e-commerce software systems. In this paper, we present a replication model for Web services that improves the availability of services in the composition process, and look at the problem of security, a very important aspect. A Web service (also called service), is an autonomous software component that is uniquely identified by a URI and can be accessed by using Internet standards like XML, SOAP, or HTTP. Our objective in this work is to present new techniques for Web service replication, which can be integrated into existing platforms. Dynamic service selection offers Web services the possibility of selecting and invoking services at runtime based on technical specification of the desired service, thereby providing a layer of abstraction from actual services. In order to survive the massive competition created by the new online economy, many enterprises are rushing to put their core business competencies on the Web as a collection of Web services for more automation and global visibility. Web Services is an emerging paradigm for designing and implementing business collaborations within organizational boundaries. A Web service is defined as self-contained, modular units of application logic, which provide business functionality to other applications via an Internet connection. Web services support the interaction of business partners and their processes by providing a stateless model of “atomic” synchronous or asynchronous message exchanges . Recently, Web service technologies have shown great promise in reducing the complexity of interconnecting heterogeneous software components across the Internet.
Auditing Communication Satisfaction among Academic Staff: An Approach to Managing Academic Excellence
Dr. Azhar Hj. Ahmad, Universiti Kebangsaan Malaysia, Malaysia
Effective communication is important in creating a more conducive working environment. Hence, members of any organization need to be satisfied with the communication activities in their organization in order for them to perform well. Auditing communication satisfaction among academic staff offers an efficient and a comprehensive approach to investigating the communication practices in public universities. A total of 252 academic staff from two public universities in Malaysia participated in the study. The results showed some variations in the satisfaction levels of the communication practices among the academic staff. This paper also highlights several implications on the communication and management practices of the public university. Channels of communication should be developed, improved and maintained to ensure a better communication atmosphere. Communication is the vehicle in which activities are planned, organized and implemented. The study of communication provides a basis for understanding every human process that occurs in the organization (Daniels, Spiker, & Papa, 1997). Carrying out a communication audit would enable the university to assess its communication needs, policies and practices. The management can then take proper action based on the results uncovered by the analysis. According to Owen, Dennis & Noel (2002), analyzing communication effectiveness can play a useful role in determining the organization’s communication strategy.
World Trade Policies and Restricted Market Access by Developed Nations. A Cause of Marginalisation of Sub-Saharan Africa Economies in World Trade
Stephenson K. Arinaitwe, Breyer State University, London Centre
This paper examines how world trade policies have caused a marginalization of Sub-Saharan Africa (SSA) economies in global trade. The paper begins by examining the official World Trade Organization (WTO) and General Agreement on Tariffs and Trade (GATT) economic policies with regard to SSA. The second aspect examined is how both tariff and non-tariff barriers to trade prevent SSA nations from becoming truly competitive in the world market. Then the paper discusses how foreign aid, whether in the form of charitable aid or foreign investment in SSA economies, enhance the production capability of SSA countries. Finally, the paper examines the progress made by SSA nations, the developed world, WTO, and GATT to assist SSA nations in their efforts to compete favourably in global economy. The paper suggests ways in which developed world can help SSA nations so as to exploit trade opportunities the global economy. More importantly, the paper suggests ways in which the SSA nations can take control of their developing economies and become competitive in the global market. Anyone with even a passing familiarity with the global economy is aware that SSA countries, despite their abundant human and natural resources, have not taken a competitive position in the global economy. While the casual observer may believe that SSA’s failure to be competitive in the global economy is a result of the interior workings of the economies of these nations, even a cursory investigation into world trade policies quickly reveals a bias against the growth of these economies. For example, many of the trade policies established by the WTO under GATT guidelines inhibit true economic growth in SSA economies. Furthermore, those trade policies have helped shape the economic infrastructure of SSA nations, in such a manner that those countries actually maintain policies that inhibit their own economic growth hence economic decline.
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