The Journal of American Academy of Business, Cambridge
Vol. 14 * Num.. 2 * March 2009
The Library of Congress, Washington, DC * ISSN: 1540 – 7780
Online Computer Library Center * OCLC: 805078765
National Library of Australia * NLA: 42709473
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The ‘Spillover Affect’ of Perceived Quality of Employees on Predictions of Provider Service Quality
Dr. Charlene Bebko, Professor, Indiana University of Pennsylvania, Indiana, PA
Dr. Lisa Sciulli, Professor, Indiana University of Pennsylvania, Indiana, PA
This research empirically looks at the influence service contact employees have on consumers’ predictions of an impending service delivery performance. While ‘spillover affects’ have been mentioned in the literature, no research has been directed at investigating this effect on the dimensions of service quality. Hypotheses are tested whereby employees staged as positive implicit cues (professionally dressed, well groomed service contact personnel) and those staged as negative implicit cues (poorly dressed, ill groomed service contact personnel) are compared in regards to their predictions of the service provider’s overall quality of service. Three service industries are compared to investigate whether differences in service quality predictions exist between industries when consumers are presented with implicit cues to the service. The comparisons included banking, retail, and health care service providers. Significant differences in the predictions of service quality for both banks and retail sales organizations are evident with respect to positive versus negative implicit cues, thus supporting the spillover affect for these service industries. However, no significant differences are found in the predictions of service quality for a hospital with respect to positive versus negative nurse provider cues. It is proposed that the results for nursing personnel may be due to a halo affect this profession may have on respondents. Implications of managing contact employee service quality image are discussed. Consumers develop predictions or estimates for the likely outcome of a service exchange. These predictions are regarded as expectations in consumer satisfaction / dissatisfaction literature (Wirtz, 1993 and Oliver, 1981). These expected standards evolve as consumers develop probabilities that an outcome will occur if the consumer purchases and consumes a conceived service. The popular Consumer Expectations Model developed by Zeithaml, Berry, and Parasuraman (1993) provides a comprehensive theoretical framework for examining consumer service expectations.
Going Green – From Left to Center Stage: An Empirical Perspective
Dr. Shel Bockman, California State University, San Bernardino, CA
Dr. Nabil Y. Razzouk, California State University, San Bernardino, CA
Dr. Barbara Sirotnik, California State University, San Bernardino, CA
In late 2007, the researchers conducted a telephone survey of residents in two Southern California counties. A series of questions was included related to residents’ views and behaviors concerning protection of the environment. The results of this study suggest that environmental issues have for the most part been mainstreamed. Citizens of all age groups, education levels, and socio-economic levels seem to share concerns about the environment, and suggest that it should take priority over economic growth. For the most part, there is more support among liberal, young, less wealthy, and less educated respondents for environmental protection, support of green business, and the government’s role in environmental protection. But of significant interest in this study is the finding of a relative inconsistency between respondents’ proclaimed dispositions/views and their self reported environmental protection behaviors. Older, more affluent and more highly educated respondents appear most likely to practice an environmentally friendly lifestyle; and conservatives are equally likely as liberals to engage in environmental protection behaviors. For most people, it all started with Al Gore’s book “An Inconvenient Truth” and websites like www.girst.org and www.treehugger.com (Brown, 2008). The public awareness of global warming is spreading and cannot be ignored, and “in marketing, eco-consciousness is now an expectation” (Erdman, 2008). Environmental activists are becoming more and more prevalent in the decision making process of public and private builders (Ritter, 2006). It is said that “going green” is now influencing many actions taken by companies such as Bank of America, Target, Honda, Starbucks and many others (Ritter, 2006). Instead of Tupperware parties, moms are turning their attention to more eco-friendly products with EcoMom parties (Brown, 2008). There have been a number of studies attempting to determine what influence people’s attitudes about the environment. Clark & Yu-Fai (2007) report that childhood recreational experiences are good indicators of adult environmental attitudes and behaviors.
Cognitive Learning Style and its Effects on the Perception of Learning, Satisfaction and Social Interactions in Virtual Teams
Dr. Margaret F. Shipley, University of Houston-Downtown, TX
Dr. Madeline Johnson, University of Houston-Downtown, TX
Dr. Shohreh Hashemi, University of Houston-Downtown, TX
This study investigated the relationship between cognitive style and student perceptions of the social interactions, learning and satisfaction in virtual teams. The cognitive learning style of students enrolled in online courses that required the completion of a team project were determined using an instrument based on Jung’s classifications for gathering and evaluating. All collaboration among team members to complete the project was done online. At the conclusion of the course, students responded to a series of statements relating to the virtual team’s cohesiveness, cooperation and communication. Cognitive gathering style did influence perceptions of the team’s social interactions but cognitive evaluating style did not. In addition to social interactions on the virtual team, students were also asked to assess their learning and satisfaction with the virtual team experience. Cognitive differences in gathering style -- sensing vs. intuitive -- did generate differences in the perceptions of learning and satisfaction associated with the virtual team project experience. No differences in satisfaction or perceptions of learning were found to be associated with evaluating style. Implications for pedagogical team design considerations of virtual projects are presented based on cognitive learning styles. The popularity of distance education, particularly online courses, continues to grow among college students. In the 2000-2001 academic year, 52% of universities offering undergraduate programs offered distance education courses for credit and, of these, 43% used the Internet for delivery (U.S. Department of Education, National Center for Education Statistics 2003). Indeed, from 1998 to 2001 the number of universities offering some type of distance learning increased by 33% (Alavi & Leidner, 2001). Research comparing learning in the traditional classroom with learning online has grown with the increase in online courses. Many of these studies involve learning comparisons made between the traditional and online versions of a particular course. (See Summers, Waigandt, & Whittaker, 2005.)
Bayesian Factor Analysis in Survey Data: An illustration Using the Contemporary Catholic Trends Poll
Dr. John Considine, Le Moyne College, Syracuse, NY
Dr. Greg M. Lepak, Le Moyne College, Syracuse, NY
This paper explores the use of Bayesian methodology for regression analysis in evaluating survey data. The technique allows for more robust modeling than would be possible using ordinary least squares regression and facilitates a more comprehensive analysis of many types of client or customer surveys. The paper uses, as an illustration, a national survey recently conducted on Catholics from all regions of the United States. The Contemporary Catholic Trends survey, as part of an ongoing poll, collects demographic information as well as responses to various “topic” questionnaires. The paper shows how the methodology can be used to establish relationships in the responses and demonstrates the researchers’ ability to reach multi dimensional conclusions. Issues related to the analytical processing of survey results and their interpretations have received much attention (Bierner and Lyberg, 2003). This paper presents a well developed statistical methodology and illustrates its efficient and effective application to interpreting multidimensional survey results. In particular, the paper examines the results of the most recent Contemporary Catholic Trends (CCT) poll conducted in March of 2008. The CCT polls are telephone interviews with some 1,500 adult Catholics and are conducted annually in the fall and spring at Zogby International’s Computer Assisted Telephone Interviewing (CATI) Center in Utica, New York. The survey includes approximately sixty questions including a mix of the traditional demographic information as well as questions organized in modules related to specific topics of research. The March 2008 survey included a module of questions related to the recent Pope’s visit to the US, a module of questions related to the presidential election, and, the focus of this paper, a module of questions related to the Church’s involvement in initiatives of community development. This last module was developed by Business faculty who were looking for insights into ongoing initiatives that involve inner-city churches in economic development projects. CCT surveys have been conducted biannually since 2001, with consistently high response rates. The data is useful from a variety of perspectives. Catholics constitute more than 20% of the American population (D’Antonio, Davidson, Hoge, and Meyer, 2001) and happen to be otherwise demographically diverse. Therefore, research questions investigating attitudes of Catholic Americans can be examined without the large need for further adjustments. In addition, the CATI center uses an effective weighting system to adjust for non-responses. The module investigated in this paper contains survey questions related to engagement in community development initiatives. In particular, the module attempts to gauge the attitude of Catholics toward the use of Church resources in community revitalization projects, often involving people from different faiths. Particularly in inner-city parishes, church leaders face a dual challenge of appealing to declining numbers of parishioners and addressing the realities of the surrounding neighborhoods. Successful management of these challenges can perhaps be facilitated by the use of the types of analysis already commonly used in the business environment.
Teaching Nonprofit Financial Management: Bridging Strategic and Financial Issues
Dr. Daniel Bauer, Bellarmine University, KY
Dr. Keith Richardson, Bellarmine University, KY
Dr. David Collins, Bellarmine University, KY
The Nonprofit Career Guide (2008) shows that, in the United States, the nonprofit sector is twice as large as the construction industry. Even though nonprofit organizations play a significant role in the economy, the majority of time in financial management courses is spent on corporate (for-profit) financial management decision making. While nonprofit organizations have very different financial structures, many similarities exist with for-profit firms in regards to successful financial management practices. This paper examines the similarities and differences between corporate and nonprofit financial management and provides useful classroom examples to bridge the strategic and financial issues in teaching nonprofit financial management. In 2005 the nonprofit sector was valued at over $1.6 trillion, representing over 5 percent of the gross domestic product of the U.S. economy, 8 percent of wages and salaries, and 10 percent of employment (Nonprofit Career Guide, 2008). This contribution to the economy makes the nonprofit sector twice as large as the construction industry in the United States and, thus, a significant economic player. Although many are beginning to show their age, that significance is supported by the number of books that specifically focus on financial management for nonprofit organizations [Bryce (2000), Coe (2007), Connors and Callaghan (1982), Hankin, Seidner, and Zietlow (1998), Lang (1995), Linzer and Linzer (2007), McKinney (1995), Shim and Siegel (1997), Wacht (1984)]. Yet, those texts are aimed at specialized courses for nonprofit managers. In the typical finance major, the majority of time in financial management courses is spent on for-profit (corporate) financial management decision making. Further, the textbooks commonly used in such courses include very little information or discussion of nonprofit financial management. The two exceptions are: Brigham and Gapenski’s Intermediate Financial Management (1996) text, which includes a chapter on Financial Management in Not-for-Profit Businesses, and Gapenski’s Understanding Health Care Financial Management, Text, Cases, and Models (1993), which provides information on financial management in not-for-profit health care corporations. Consequently, students are not often introduced to the specific financial management issues faced by nonprofit organizations and their managers. The purpose of this paper is to outline the issues related to nonprofit financial management and to bridge the strategic gap in teaching both for-profit and nonprofit financial management. In doing so, this paper examines the similarities and differences between for-profit and nonprofit entities and provides useful classroom examples that allow students to understand both for-profit and nonprofit financial management.
Remote Ownership Shareholders in the 21st Century: Theoretical Implications for Corporate Governance, Profitability and Long Term Wealth Creation
Dr. Peter Spang Goodrich, Providence College, RI
Dr. Nancy Rossiter, Jacksonville University, FL
Theories are neither true nor false only more or less useful. Theories are composed of assumptions and a framework. The most important economic theorist for the development of American business practice has been Adam Smith. Two contrasting models of the assumptions behind running an organization efficiently and effectively are the Shareholder and Stakeholder Models. Professor Milton Friedman has advocated the shareholder model. Professor R. Edward Freeman has posited the stakeholder model. Neither of these theoretical models is true or false, but they have results based on their utility in accomplishing their goal. We highlight the ethical implications behind these theories and propose a modification of the two polar theories. This should result in more ethical, efficient, and effective corporate behavior and performance. Shareholders (in addition to the other stakeholders) will benefit in the long-term from such ethical corporate behavior. We discuss four topics related to more effective management -- theories, shareholder and stakeholder models, ethics and the law, model modification, and beneficiaries. The economic theorist who has dominated U. S. business conduct for the past century is, the "father of modern economic science," Adam Smith. (R. Smith, p. xi) His neoclassical liberal economic theory was introduced in his 1776 book, The Wealth of Nations. Yet, today, many economic justifications are based on the erroneous extension of Smith's brilliant coherent analysis of small businesses. These eighteenth century firms had active owners exercising management control. Today’s 21st century large corporations have passive owners separated from management control. Therefore, much of Smith's traditional classical liberal economic theory is misinterpreted and misleading when discussing modern corporate governance. Theories assume a reality and a framework for analyzing empirical data and presenting a point of view. Often the theoretical frameworks used in discussing management, or any other academic topic, favor assumptions of the prevailing cultural ideology.
The Value Relevance of Industry and Firm Cash Flows and Accruals
Dr. William D. LaGore, Eastern Michigan University, Ypsilanti, MI
Gary B. McCombs, Eastern Michigan University, Ypsilanti, MI
This paper examines the relation between security returns, industry-wide cash flows and accruals, and firm-specific cash flows and accruals during the period 1991-2001. We first replicate Ayers & Freeman’s (1997) findings that returns are significantly associated with industry earnings and this association begins and ends earlier than returns associated with firm earnings. We hypothesize the components of industry earnings - cash flows and accruals - are significantly associated with stock returns. Consistent with this hypothesis we find that both industry-wide cash flows and industry-wide accruals are significantly associated with returns and this association begins and ends earlier than returns associated with firm-specific cash flows and accruals. Contrary to expectations, we find no significant difference between industry-wide cash flows and industry-wide accruals. Finally, we hypothesize and find that industry-wide accruals are more value relevant than firm-specific accruals in years t and t+1. Collectively, these findings suggest industry-wide cash flows and accruals are value relevant; however, disaggregating industry earnings into its cash flow and accrual components is unnecessary as it does not provide incremental explanatory power beyond that of industry earnings. All data are publicly available from the sources identified in the paper. A common belief in the investment community is that industry information has value relevance for pricing a firm’s stock. The production and analysis of industry information is extensive. For example, industry and trade associations produce significant amounts of industry information and data; however, there is little empirical evidence whether investors actually use this industry information. Financial analysts typically specialize in sectors or specific industries. Accounting textbooks discuss the importance of comparing a firm’s financial ratios to industry benchmarks. Given the perceived importance of industry information for asset pricing, surprisingly little empirical evidence exists as to the value relevance of industry accounting information. One stream of empirical research documents the information content or “information transfers” associated with industry information. Research on “industry information transfers” examines whether a firm’s information announcements affect the stock prices of other firms in the same industry. Empirical research provides evidence of information transfers associated with earnings announcements (Foster 1981; Pownall & Waymire 1989; Han & Wild 1990; Freeman & Tse 1992), sales announcements (Olsen & Dietrich 1985) and management forecasts (Baginski 1987; Clinch & Sinclair 1987; Han et al. 1989; Pyo & Lustgarten 1990). Another stream of research examines the value relevance of industry information by investigating the association between industry information and stock returns.
Iranian Generation Y Female & Male Decision-Making Styles: Are They Different?
Dr. Kambiz Heidarzadeh Hanzaee, I.A.U. (Tehran Science and Research Branch) University, Tehran, Iran
The purpose of the current study is to investigate and compare Iranian Generation Y female and male consumer decision-making styles. Sproles and Kendall’s (1986) Consumer Styles Inventory (CSI) was adopted in this study. A questionnaire survey was employed to collect the primary data to a non-probability sample of female and male undergraduate students of Azad University, the IAU branch. The results show differences among the female and male decision-making styles, suggesting that gender has a marked effect on shopping behavior. Identification of new traits, apart from those eight decision-making styles identified by Sproles and Kendall, for both groups of genders suggests that CSI cannot be applied without considering the socio-cultural factors among a wide domain of cultures and that this instrument needs to be developed to be applicable in multiple countries. These findings are useful for domestic and international retailers and marketers seeking effective targeting of Iranian Generation Y female and male consumers. Decision-making styles are important to marketing because they determine consumer behavior, are stable over time, and thus are relevant for market segmentation (Walsh et al., 2001). Advertisers and marketers can use such profiles to segment consumers into viable and profitable clusters (Durvasula et al., 1996). Decision-making styles may vary by different factors, such as the cultural groups (Durvasula et al., 1993; Durvasula et al., 1996; Fan and Xiao, 1998; Hafstrom et al., 1992) or the store types (Darden and Ashton, 1975); however, little attention has been given to the question of gender (Bakewell and Mitchell, 2004). Most studies on shopping orientation have focused only on female samples to identify the shopper typologies (AGB, 1987; Moschis, 1976; Stone, 1954; Darden and Ashton, 1975; Westbrook and Balck, 1985). This suggests that there has been a lack of interest in male shopping behaviors. Frarm and Axelrod (1990) reported that females have the primary responsibility for household shopping. Oakley (1976) noted that husbands avoid going shopping or carrying shopping bags because of a fear of being labeled as effeminate. Despite these historical trends, there seem to be enough male shoppers (even if they are a minority) in supermarkets and shopping centers to warrant our attention. Some studies therefore started to focus on male-female differences in shopping behavior (Dholakia et al., 1995). Campbell (1997) proposes that, because shopping is seen as a female activity, males have a different ideology from women as to what constitutes effective shopping behavior. The principle ideological difference relates to what Campbell describes as the instrumental versus expressive dichotomy, whereby men see shopping as something that is needs-driven and a purely purchase-motivated activity while women are more likely to regard the activity as being enjoyable in itself and related to the satisfaction of wants and desires. Also, compared to women, men simplify the shopping process by attending to a smaller number of information sources (Laroche et al., 2000). Furthermore, social and demographic changes are putting pressure on traditional gender roles and men now are playing a significant role in shopping activities (Dholakia, 1999; Dholakia et al., 1995).These changes are particularly remarkable concerning the young generation. In 1991,
On the Mobility of the Romanian Work Force Within the European Economic Space. Opportunities, Causes, Consequences
Dr. Nela Steliac, Babes- Bolyai University of Cluj-Napoca, Romania
The adhesion of Romania on the 1st of January 2007 to the European Union opens legal paths of employing local work force. The adhesion and the economic integration assures one of the fundamental rights guaranteed by the communitary legislation, meaningly the free circulation of the work force within EES (European Economic Space), a right assured from the very creation of the European Community, since 1957. This implies: the right of every citizen belonging to the integrated space to search for a work place in any other member state; the right to work and live on the territory of that state; the right to benefit from the same treatment as the citizens of that state, in what concerns employment, working conditions, entry conditions and payment conditions. All these rights are not granted on the first day when a state becomes member of the European Union. There is a period of transition, in this respect, after the adhesion, which lasts up to a few years, for the free circulation of the workers, a period set by each EU member. Taking into consideration all these rights, the new EES citizens are drawn by the possibilities and the opportunities that give them the right to freely work on EU territory. This is also the case of our country. The phenomenon of work force migration into EU countries and not only, has started a few years before the adhesion. There are multiple causes for this phenomenon, but most of them have as starting point Romania’s economic situation after 1989, which did neither offer many chances of employment, nor chances to earn enough, so as to lead a decent life. If before the 1st of January 2007, as a state outside the EU, there were well established restrictions regarding the mobility of the Romanian work force, and not only, after that moment the member states of the EU started opening their „doors” either partly or entirely towards their own labour market. Many westerners saw this fact as a possible invasion of the East-European labor force. Economic reality, thouth has proven that the fears of the Europeans concerning massive migrations of eastern work force have been completely unfounded. Furthermore, the worker’s mobility has been and continues to be an absolutely positive element in the economic development of the EU. Europeans have assumed the same position regarding the opening of the labour market, in the case of Romania as well. The work force mobility within the EES cannot only have advantages but also disadvantages.
Applying Store Image and Consumer Behavior to Window Display Analysis
Dr. Shuo-Fang Liu, National Cheng Kung University, Taiwan
Wen-Cheng Wang, Hwa Hsia Institute of Technology, Taiwan
Ying-Hsiu Chen, National Taiwan University of Science and Technology, Taiwan
The models of global economy, society, culture and business have been greatly changed as a result of the improvement of scientific development and standard of living. Window display has propagandized media effect. Consumers can get fashion information from shop window; stores can attract consumers and stimulate their purchase desire. The main purpose of window display is to attraction consumer’s attention, deliver the product information and induce consumer’s memory connection. Therefore, vision composition of window display can create psychological feeling and emotion and it is the first store image information received by consumers; it mainly influences consumer’s decision of staying and purchasing and it is also key factor which determines the success of window display. Our study investigated the influence of consumer behavior and store image towards window display; its result showed: 1) the relevancy between store image and consumer behavior; 2) the relevancy between store image and window display; 3) the relevancy between store image and customer’s satisfaction; 4) the relevancy between store image and customer’s loyalty. After Boulding (1956) first brought forward the concept of “image” many scholars studied this concept by applying it to the field of consumer psychology; all of them believed that consumers react according to the fact they trust and undertake their consumer behavior based on store image. Dodds et al. (1991) considered store image has significant influence on consumer behavior and store image appraisal can influence consumer’s buying will. Grewal et al. (1988) mentioned that characteristics of store’s consuming environment, service level and product quality provided so-called store image. Kapferer (1986) defined store image as the guideline of certain store mode and store property in consumer’s idea; it was composed by visible entity, individuality, culture, relation, image reflection and consumer’s personal interest; it included two properties: store’s functional particularity and store’s psychological atmosphere. Store’s functional particularity is opinion of store’s visible character; it is store factors related to product selection, level of price, credit system, product display and other objective quality.
The Relationship between Leadership Styles and Foreign English Teachers Job Satisfaction in Adult English Cram Schools: Evidences in Taiwan
Fang Yi Wu, Cheng-Shiu University, Kaohsiung, Taiwan, R.O.C.
This study (1) investigates the relationship between adult English cram school leaders’ leadership style and foreign English teachers’ job satisfaction in Taiwan. Three leadership styles named transformational, transactional, and laissez-faire are identified in this study which are measured by Multifactor Leadership Questionnaire (MLQ–5X) (Avolio and Bass, 1999). Job satisfaction is assessed using the Job Descriptive Index (JDI) and the Job in General (JIG) Scale (Smith et al., 1969). In addition to quantitative analyses, a qualitative analysis, face-to-face interviews, is conducted in this study to probe into the reasons lead to these correlations between leadership styles and job satisfaction. Statistical results show that the relationship between transactional leadership style and job satisfaction was abundant, however, the effects both transformational and laissez-faire leadership styles have on foreign English teachers’ job satisfaction are moderate. Interviews show that a good teaching environment and easy-going coworkers were important factors that produce satisfaction among foreign English teachers. English is everywhere. Millions of people are learning it. Almost half of the world’s population will be more or less proficient in it within the next 50 years. The need to learn speaking English has become essential in business and for travel. Language schools in Taiwan, commonly known as “English cram schools,” are an essential part of life of the nation. Besides students, many adults, from business people to factory workers, attend English cram schools to improve their listening and speaking skills. Moreover, most Taiwanese attend English cram schools tend to look for instructors from English-speaking countries because they believe these native speakers by definition will be good at teaching English. With thousands of jobs being advertised each month for English instructors, teaching English in Taiwan presents an inviting opportunity for many young Western college graduates in their early 20s and 30s. Teaching English abroad has numerous rewards for foreign English teachers: they can learn more about other cultures and attitudes, they have the chance for extensive foreign travel, and they are exposed to interesting lifestyles. Most of these English teachers are from the United States, Canada, the United Kingdom, Ireland, South Africa, Australia, and New Zealand. They come in substantial numbers, but it is difficult to get them to commit long term to teach in cram schools. In fact, many leave before completing their contract agreement, mostly because they are not satisfied with their working environment. This has become a major problem for many cram schools. Yet there are some foreign teachers who stay at one school for a long time. These foreign English teachers are willing to commit themselves to one school because they like their relationship with the school leader (or the school director), they enjoy their working environment, and they are satisfied with their jobs. As mentioned above, the success or failure of an organization is determined by human beings. In recent years, leadership style has become an important topic of study in the management field and many researchers consider leadership style as an important variable in influencing an organization’s functions. Leadership style can influence followers’ job performance and job satisfaction (Robbins, 2001). The main leadership styles used here are transformational, transactional, and laissez-faire.
Microcredit Programs and Consumption Behaviour of the Borrower: Evidence from Bangladesh
Dr. Sayma Rahman, California State University San Bernardino, C
Dr. Rafiqul Bhuyan Rafiq, California State University San Bernardino, CA
Dr. Mo Vaziri, California State University San Bernardino, CA
Microcredit program in Bangladesh provides small loans to rural people especially to women with the purpose of eradicating poverty. This study investigates the impact of microcredit on consumption pattern of borrowers and compares if the impact is the same for non-borrowers. Primary data has been collected from the Grameen Bank and the Bangladesh Rural Advancement Committee (BRAC) borrowers of some selected villages from three major districts in Bangladesh. Data of non-borrowers are collected from the same cohort to provide a control group for comparison with borrowers. To estimate the impact of per capita monthly expenditure and other household characteristics on budget share of items consumed by borrowers and non-borrowers the study relies on An Almost Ideal Demand System (AIDS) model. The estimated results of Iterative Seemingly Unrelated Regression (SURE) suggest that borrowers of microcredit programs are better off in terms of consumption of most of the food and non-food items compared to non-borrowers. The microcredit program in Bangladesh is a unique innovation of credit delivery technique to enhance income generating activities. Its uniqueness is reflected in its collateral-free group-based lending strategy, very high recovery rate and emphasis that it places on women (Hulme and Mosley, 1996; Yunus, 1999; World Bank, 1994). The program extends small loans to poor people for self-employment activities thus allowing the clients to achieve a better quality of life (Hussain, 1998; Morduch, 2000; Rahman, 1995). It is the most sensational anti-poverty tool for the poorest, especially for women (Microcredit Summit 1997). The Grameen Bank - the largest microcredit institution - and the Bangladesh Rural Advancement Committee (BRAC) - the largest non-governmental organisation (NGO) - are the pioneers of microcredit in Bangladesh for almost three decades. Microcredit in Bangladesh is not only a very topical issue – the founder of the Grameen Bank has just been awarded the 2006 Nobel Peace Prize – but is has also been a topic of interest to researchers throughout the world The success of microcredit has captured the interest of many researchers in broad areas such as women’s empowerment (Hashemi and Schuler, 1996; Sen, 1997; Goetz and Sengupta, 1996), sustainability and outreach, (Khandker et al. 1995; McNamara and Morse, 1998; Zeller and Sharma, 1999), group based lending, (Ghatak, 1999; Stiglitz, 1993; Varian, 1990) and poverty alleviation. Research suggests that access to credit has the potential to reduce poverty significantly (Khandker, 1998, Wahid, 1993; Khandker, 2003). Based on the success stories (Hossain, 1988; Hulme et al. 1996; Yaron, 1992; .
The Effect of Market Orientation Intention and Superiority on New Product Performance
Hsiu-Jung Chou, Cheng Shiu University and National Yunlin University of Science and Technology
In this study, the new conceptual model is presented for market orientation which consisted of three general categories of concepts: the facets of the firm’s level of Market Orientation Intention and Superiority, the type of innovations and market positions as moderators and the facets of business’s new product performance. The definitions of the concepts and the specific propositions are developed and discussed. Our integrated model will provide new perspective for market orientation in terms of theoretical interest. Different definitions and operationalizations of the market orientation construct exist in the marketing literature, however Kohli and Jaworski’s (1990) and Narver and Slater’s (1990) are the two blueprints and prevalent in research of market orientation. Nevertheless, this paper proposes two conceptualizations of market orientation in attempting to address the market orientation debate: (1) a proactive focus and (2) a responsive focus (Narver, Slater, & MacLachlan, 2004). Particularly, this research suggests that a focus on responsive market orientation is negatively related to new product success, whereas a focus on proactive market orientation is positively related to new product success. These two conceptualizations are both expected to contribute to new product performance. The purpose of the study is to investigate the relationship between different market orientation and new product performance. The research is to investigate the effects of the components of two orientations: Market Orientation Intention (divided into customer-oriented and competitor-oriented) and Market Orientation Superiority (divided into superior, medium, and low advantage), on new product development. The research also examines the contingency roles of innovation and market position. In summary, the underlying theses of the study are: (1) MOI and MOS are both positively related to new product performance, (2) a proactive market orientation better explains MOI than a responsive market orientation, (3) a superior advantage better explains MOS than medium and low advantage, and (4) innovation types and market position lays a significant role in fostering new product performance. As result, the conceptual framework in Figure 1 displays the relationships under investigation and divides the market orientation concept into two categories: Market Orientation Intention (MOI) and Market Orientation Superiority (MOS). Furthermore, this study conceptualizes innovation types and market position as moderator variables that will allow a balanced approach between the different market orientations.
The Construction Model of Customer Trust, Perceived Value and Customer Loyalty
Kuo-Ming Chu, Cheng Shiu University, Taiwan, R.O.C.
Relationship marketing has become one of the keys to success in acquiring strong competitiveness in the present market. The main ideas of relationship marketing are customer trust and loyalty. Although there has been considerable research into customer trust, most theories in general share two problems: First, there is the issue of how to build and maintain those factors that lead to a strong and concrete model of trust between business to business and business to customer. Second, there is the problem of assessing the role that customer value plays in the entire customer trust model. This paper modifies the study of customer trust made by Sirdeshmukh et al. (2002) and expands it into a multidimensional conceptualization. The result shows that in the 3C distribution industry, the most influential factor regarding customers is degree of credibility and trust they feel towards companies’ actions. Thus, it is considered necessary to separate these behaviors into concrete management policies & practices (MPPs) and frontline employees (FLEs). The results of our analysis of MPPs and FLEs conclude that customer value plays a mediating role between customer trust and loyalty. Plenty of studies have shown that trust is the fundamental element in relationship marketing between people and society. For a customer, loyalty is a positive attitude and is related to the level of re-purchasing commitment he or she possesses toward a brand in the future. This paper tries to modify the structure of customer trust developed by Sirdeshmukh et al. (2002), Graf & Perrien (2005), Cho (2006), Eisingerich & Bell (2007) and deplete customer trust and the mechanisms that might explain the process of trust enhancement or depletion in consumer-firm relationships. The purpose of this study is to develop a multifaceted, multidimensional model of the behavioral compnents of trustworthiness, and examine their differential effects on consumer trust. The focus of Sirdeshmukh et al. (2002) and Reinartz & Kumar(2000) on specific behavioral dimensions for two key facets- frontline employee (FLE) behaviors and management policies and practices (MPPs)- is conceptually appealing because these dimensions are rooted in strong theoretical frameworks and facilitate a fine-grained understanding of their differential effects on consumer trust. However, the Sirdeshmukh et al. model has two problems. First, the model is constructed from the company’s perspective in analyzing the source of customer trust.
Green Supplier Assessment: A Case Study of the Fire Extinguisher Industry
Mean-Shen Liu, Far East University
Dr. Sheu-Der Wu, Far East University
As the awaking influence of global governmental policies and consumers, green industry has become the primary goals for the traditional industries. Because of the increasing emphasis on green products, production and management have experienced cost increasing and production processes and materials changing. Green fire-fighting products are no exception. The motivation of this research is to understand whether green fire-fighting products could receive suppliers' supportive coordination and aids before promotion and production. If the industries are positively supported by suppliers, green-product viability can be enhanced and fire-fighting products can be improved. This research is to explore how to develop mechanisms for selection and evaluation to be used by green suppliers. The development of these systems could be provided to the governmental agencies and private firms for the evaluation and management implemented by green suppliers. In our evaluation, the dimension of “materials” was weighted highest by the suppliers, followed by the dimension of “energy utilization”. Under the sub-evaluation, among various weightings for materials, product utilization and maintenance were weighted highest and, in the weightings for energy utilization, product recycling was weighted the highest. In the weightings of “Liquid and Gas Residue,” product utilization and maintenance were weighted the highest, and in the weightings of “Solid Residue,” product recycling was weighted the highest. In the weightings under overall principles, the dimension of materials of product utilization and maintenance was considered by companies as the most important one. Recently, environment protection has become one of the most important global issues (Shultz and Holbrook, 1999). The EU environmental code – RoHS began its control policies in July, 2006, and WEEE reviewed its performance toward goals in December. For electronic and electromechanical product makers involved in the EU markets, no matter whether they were brand makers or OEM makers, these environment protection codes caused a remarkable impact. In addition, EuP requested that every EU member complete their international legalization process by August 2007, which triggered additional impacts (Yan, Xiu-yan, 2006).
Human Resource Management in the US, Europe and Asia: Differences and Characteristics
Dr. Gurhan Uysal, Ondokuz Mayýs University, Samsun, Turkey
Aim of this study is to discuss differences and characteristics between HRM in the US, Europe and Asia. Divergence can be seen in HRM practices between markets due to cultural and legal differences that enables international firms to adapt local norms. To identify characteristics provides a firm of effectively managing their international HRM practices.Therefore, literature studies demonstrate differenf characteristics in managing human resources between markets. To clarify differences and characteristics in HRM between the US, Europe and Asia enables organizations to adapt their HRM practices to local norms. Literature studies propose that differences in HRM are due to differences in cultural and legal systems. This is important to MNCs that experience the decision between adopting local standards or maintain home country HRM practices. Literature studies also demonstrate different characteristics between the US, European and Asian HRM. While US firms have more managerial autonomy, European HRM is more restricted in management of employees. In Asian transitional economies, HRM departments need to develop organizational learning for knowledge organization to increase innovation. Therefore, this study aims to explore differences and characteristics in HRM between the US, Europe and Asia. Institutional factors generate national and regional differences due to extended historical processes, national business systems and cultural systems; therefore, are antecedents of management practices (Gooderham et al., 2006), and limit firm action by placing decision-making authority with third-parties (Richey, Wally, 1998: 82). Firstly, impact of culture on HRM can be seen in individualism and collectivism, and differences in short- and long term orientation. Brewster (2004) says, US individualistic culture and achievement orientation results in US reward systems such as individual-based rewards and performance-related pay. Secondly, high individualism is related to development of human capital in organizations where employees are considered as critical resources (Cleveland et al., 2000); therefore, individualism is associated with the development of internal labor market (Hegewisch et al., 1997: 1). On the other hand, collectivist orientation leads to trade union recognition and collective bargaining that characterize industrial relation in Europe instead of direct management and employee communications in the US (Cleveland et al., 2000: 13).
The Global Odyssey of a Government Sector Bank in India: Implications for Contemporary International Business Management
Dr. Satya Prakash Saraswat, Bentley College, Waltham, MA
Based on a survey of 37 international branches of a large government (public) sector bank in India, this paper identifies the problems and opportunities faced by expatriate managers of global corporations from India. The surveyed branches are located in 16 countries in Africa, Europe, Southeast Asia and the Middle East. The investigation reveals that international managers of public sector banks from India encounter significantly different levels of difficulty in various regions of the world in five areas of investigation: (a) Cross-cultural human resources management, (b) Cross-country customer relationships, (c) Transnational regulatory compliance, (d) International competitive challenges, and (e) Global information technology management. Some implications of these findings for multinational business in advanced countries are also discussed in this paper. While large private sector companies from India are making international news by acquiring multi-million dollar companies in Europe and the United States, government or public sector enterprises are also making global operations an important element of their growth strategies. In the contemporary business environment dominated by multinational corporations (MNCs) and Information and Communications Technologies (ICT), globalization has become necessary for maintaining corporate profitability. In recent years, the debate on globalization and the role of India in it as an emerging economy has been focused on private sector companies in two categories: (1) ICT industry dominated by companies such as Infosys Technologies, Wipro, Satyam Computers, and Bharati Telecommunications, and (2) large conglomerates controlled by established business families in India such as the Birla group, Reliance Industries, and Tata Industries.
Analysis of Government Bonds’ Compound Interest Rates between 1996–2006 in the ISE Bonds and Bills Secondary Market Using Grey System Theory
Dr. Tolga Ulusoy, Kastamonu College, Kastamonu University,Turkey
This research predicts the compound interest rates of the government debt securities market in Turkey using the daily Istanbul Stock Exchange (ISE) Government Debt Securities Price Indices for January 1996- December 2006, with the exception of 2000. This paper employs the Grey Model (GM) to investigate the rate of returns on government bonds and bills and the error model to determine the deviation of rates on these bases. For comparison purposes, one variability of eight GM factors is examined with its errors. The results of this paper suggest the usefulness of Grey System Theory for predicting rates but not effects. Research solutions are differentiated into two periods, 1996 to 1999 and 2001 to 2006. The paper’s findings are that i) Omitted positive and negative errors are produced in the first period of all GM calculations and ii) GM generates the highest significant daily returns for the second period. Except for the January effect or other seasonal effects, the Turkey 2001 economy crisis and beyond has engendered important deviations. Price prediction in financial markets using Grey System Theory has become increasingly popular in the international literature. However, there are few examples of the theory’s use in Turkish financial environments. The purpose of this paper is to perform interest rate prediction on the Ýstanbul Stock Exchange Bonds and the Bills Secondary Market using the Grey System Model GM(1,1). The basics of GM(1,1), descriptions and the GM(1,1) models are also shown in this research. All computations were made by a simple MATLAB program. They Grey System is a statistical method for use with insufficient data. The theory was first proposed by Julong Deng in 1982. The theory’s calculations simplify the complex methods and use a limited amount of data. Since the 1980’s, the theory has been applied to many systems in industrial, social, and ecological areas as well as in the fields of economy, medicine, traffic management, business management, education and environmental sciences [3;4;8;9;10;15;18;19;22]. Grey System Theory is successfully used to analyze uncertain systems that have multi-data inputs, discrete data, and insufficient data.
A Study on the Effect of the Degree of Optimism, Work Pressure and Work Efforts of Life-Insurance Salesman on Their Performance
Professor Hsing-chan Tseng, Chang Jung Christian University, Taiwan
Xin-zong Huang, Chang Jung Christian University, Taiwan
In a keen competitive work environment, it is very difficult for an outsider know the pressure from work every employee has to face everyday. But the life insurance salesmen in Taiwan may face even more critical challenges because their pressure from work is much more than ordinary employees with financial institutions. It is hoped that we could understand through the research if the personality characteristics of the degrees of optimism of life insurance salesmen can be transformed into better attitude toward work under the pressure of performance and works to achieve good sales performance. This research adopted questionnaire survey method and received 378 valid filled questionnaires and six invalid filled questionnaires in 384 returned questionnaires. The subjects were employees with life insurance companies, insurance broker companies and insurance agent companies. We found that the work pressure and work efforts of salesmen who had higher degree of optimism had significant effects on their performance and the medium effects of pressure from work that might be used by the salesmen had significant effect on performance. The salesmen who had higher degree of optimism might take advantage of the medium effects of work pressure and work efforts to affect significantly their performance. In Taiwan, the production value of service industries is about 67% of Gross Domestic Production (GDP) and the contribution degree to economic growth is about 6% that the service industries have played a key role in boosting Taiwan’s economy development. In order to enhance service industries, Executive Yuan adopted “The Guidelines and Action Plans for Developing Service Industries” in March 2005, which planned 12 service industries including financial service as the direction of development. Furthermore, the government also boosted “intelligence services”, that is the industry blending with knowledge about technology, engineering or science or the service industry helping the implementation of science, engineering and technology. After joining into WTO, the financial service industry has been more important for Taiwan. In 10 industries that GATT Secretariat asked Taiwan to fill in service industries, seven industries are financial industries (Zhan, Su-lian: The Analyses of the Impact of Joining WTO and Counter Strategies). That could prove the importance of financial service industry in Taiwan’s economy and society.
Investigation of Employee Tenure as Related to Relationships of Personality and Personal Values of Entrepreneurs and Their Perceptions of their Employees
Dr. Becky H. Takeda-Tinker, Colorado State University Global Campus, CO
Dr. James W. Mirabella, Jacksonville University, FL
The purpose of this article is to report the results of an exploratory study into how tenure is impacted by differences and similarities in personal values and personalities between entrepreneurs and their employees. The study findings suggest that there is a positive correlation in personal values between entrepreneurs and their employees and that higher value scores are associated with longest-tenured employees. The study findings also indicate that longest-tenured employees are believed to have higher scores than recently-departed employees, in the personality traits of Agreeableness and Conscientiousness. The article provides practical implications from the study that suggest considerations for entrepreneurs who hire and seek to retain employees. Original Value of the Paper: this article provides value to the limited past research on entrepreneurial organizations. Furthermore, the findings present a perspective into the multi-faceted area of employee tenure, an area that is particularly important to small business survival. Small business owners in the United States (U.S.) have identified labor shortages as one of the most significant issues that they encounter (Hornsby & Kuratko 1990). The lack of qualified workers needed to staff these businesses has created both hidden and identifiable costs to company performance. Specifically, researchers have examined identifiable costs in the framework of employee turnover. Studies have found that the cost of turnover can easily reach 150% to 250% of employee annual compensation due to the costs of the person leaving, recruitment, training, lost productivity, new hire, and lost sales cost (Bliss n.d.; Branham 2000; Pinkovitz, Moskal & Green n.d.). For small business owners, these costs can mean the difference between company survival and closure. There have been extensive studies on how personalities and personal values of business leaders of all types of businesses impact their organizations, including the decision of their employees to stay or leave their organizations based on organizational fit determined by the match of employee and organizational values and expectations (Lee & Mowday 1987; Blau & Boal 1987; Hom, Katerberg & Hulin 1979; Posner, Kouzes & Schmidt 1985; O’Reilly, Chatman & Caldwell 1991). Other studies have focused on understanding entrepreneur personality impact on organizational structure, strategy, and performance (Miller 1983; Collins, Hanges & Locke 2004).
Public Service Motivation: An Antidote to the Scourges of Africa’s Liberal Democracies
Constantine Tongo, Covenant University, Ota, Ogun State, Nigeria
Paradoxically, the political elites in Africa’s liberal democracies either hold or vie for offices that belong to the public, yet they are grossly deficient in public service motivation (PSM). In this article, public service motivation (PSM) is defined as an individual’s psychological propensity to be induced to respond to the changing needs of people in society, via government institutions with expected economic rewards immaterial. Based on the above conceptualization of PSM, it is posited that the paucity of PSM amongst African political elites is reflected in their cravings for ill-gotten wealth, as well as ostentatious living. This has resulted in their insensitivity towards the current needs of the people. In brief, these political elites are unable to evoke the required altruistic motivational context needed for bringing the dividends of liberal democracy to the people. This quagmire that now threatens Africa’s quest for democratic development is opposed to the thinking in the public administration literature which presupposes that occupants of public offices should be interested in maximizing the social welfare of societal members, rather than seeking their own private goals. However, political philosophers, like Friedrich Hegel, assert that liberal democracy provides a suitable political climate for individuals to achieve their selfish interests through satisfying their motivational need for self recognition. Therefore, given the present platform on which Africa’s liberal democracies are being built; it is believed that many public office holders have been entirely driven by their motivational need for self recognition rather than possessing any form of PSM. Consequently, for the continent’s liberal democracies to stand the test of time, with regards to meeting the needs of its people, it is recommended that only those persons with high PSM should find themselves occupying the seats of political power. Even in primordial societies, the dialectics of individuals’ motivational need for recognition and of service in public life was discernible. For instance, Jesus spoke about these motivational needs of men while addressing a particular political class of the Jews in ancient Israel. Jesus said the following: The Scribes and the Pharisees sit in Moses’ seat….For they bind heavy burdens and grievous to be borne, and lay them on men’s shoulders; but they themselves will not move them with one of their fingers. But all their works they do for to be seen of men, they make broad their phylacteries, and enlarge the borders of their garments. And love the uppermost rooms at feasts, and the chief seats in the synagogues. And greetings in the markets, and to be called of men, Rabbi, Rabbi…. But he that is greatest among you shall be your servant (Matthew 23: 2-11, King James Version). Going by the profundity of Jesus’ statements, the need for service ought to occupy a greater place in man’s public life than the need for recognition. However, Fukuyama (1992) asserts that what man had been seeking throughout the course of history, and what had driven the prior “stages of history” has been the motivational need for men to be recognized by other men. With the advent of liberal democracy as a system of government in our modern world, man has finally found his motivational need for recognition “completely satisfied” (Fukuyama, 1992). Rival political ideologies like hereditary monarchy, fascism, and communism could never satisfy man’s motivational need for recognition.
Quality of Life in Developing Countries: An Empirical Investigation
Dr. Tariq M. Khizindar, University of King Abdul Aziz, Jeddah, Saudi Arabia
This study investigates individuals’ perceptions of their quality of life (QOL) in developing countries, using Saudi Arabia as a case study. The study depicts that satisfaction with life in general derives from the satisfaction with particular life domains. Overall life satisfaction is derived from material well-being, community well-being, emotional well-being, and health and safety wellbeing domains. Furthermore, the relationship between the demographic factors and the different domain of quality of life were investigated. A sample of 775 residents living in the Western region in Saudi Arabia was surveyed. Simple regression analysis was used to test the study hypotheses. The impact of demographic factors on the respondents’ perceptions of the various life domains was investigated using a series of T-tests. The results of the regression analyses revealed that the Saudi resident’s perception and their satisfaction with particular life domains influenced their overall life satisfaction. The T-test analysis showed that several demographic factors were found to be significantly related to the over all QOL and its various life domain. Discussion of results and their implications is provided. The concept of QOL-marketing is rooted in the notion of social marketing literature. One can trace the concept of QOL to the 70’s when marketers were influenced by the social indicators movement. There are two views of QOL-marketing, that is the traditional view and the contemporary view. The traditional view focuses on the consumer well being (CWB) which emphasized the improvement of consumer well being on five areas of economics goods (i.e., acquisition, possessions, consumption, maintenance and dispositions). On other hand, the contemporary view of QOL-marketing goes beyond the consumer well being, it deals with it as part of many other dimensions of well being including economic, work, family, physical (or health), leisure, social, environment, spiritual, and political (Sirgy, 2001). This research adopts the latter view. Many researchers have asserted the value of incorporating the social indicators and QOL measures into the mission, strategy and operation for prosperity of businesses and for better reflective measures for business performance which capture the sprite of QOL-marketing movement, (Drucker, 1969,. Biderman, 1974, Morss, 1974, Jones and Gardner, 1976, MacRae, 1985). For example, Mulivill (1978) went further to define marketing in terms of QOL. He states “ marketing is a total business of social activities that plan, price, promote, and distribute want satisfying products and services to customer so that a quality of life is delivered to customer that is culturally and aesthetically rewarding with the least environmental cost” Sirgy (2001) provided a theoretical and measurement framework for QOL-marketing research. The Middle East region is expected to have great potential and to play an important international economic role. Middle Eastern countries, with wealthy population, represent some of the most rewarding markets for Western firms. Consequently, effective and profitable operations require a good understanding of consumers in this market.
International Performance Appraisals: A Review of the Literature & Agenda for Future Research
Sharon L. O’Sullivan, Telfer School of Management, University of Ottawa, Canada
This paper reviews the literature on international performance appraisals and contrasts it against the domestic performance appraisal literature. Specifically, it uses the domestic literature’s well-established 3-step framework for employee appraisal systems (EPAs), (namely, identifying performance dimensions, measuring performance, and managing performance) as a tool for identifying gaps in the international performance appraisal literature. The results indicate that: (1) There has been a lack of distinction between performance dimension identification and performance measurement; (2) Insufficient attention has been devoted to rater training; and (3) There currently exists no acceptable (reliable and valid) measure of contextual performance for international assignments. Suggestions for future research are offered. International assignments are often used by firms early in their internationalization process, because it helps to establish initial operations abroad using employees known and trusted by the firm. Although myriad management challenges have been associated with international assignments, one of the key problems remains how to effectively evaluate and manage the performance of the international assignee. It is essential for accurate judgments to be made if appropriate developmental opportunities are to be initiated. Yet, despite years of research addressing challenges related to this topic, there has been little effort to systematically compare international performance appraisal research with its elder, domestic cousin (i.e., the domestic performance appraisal (PA) literature). This, therefore, is the first task of this paper. The secondary purpose is to move beyond identifying gaps in the literature, and to propose specific research questions that could direct future research, as well as to offer suggestions for practitioners (where applicable). To conduct this comparison between the domestic and international PA literatures, this paper will be structured according to the three broad steps that have long been established as essential to the development of any reliable and valid PA system: (1) Identification of performance dimensions; (2) Performance measurement; and (3) Management of the PA system (Gomez-Mejia, Balkin, Cardy, Dimick, & Templer, 2004).
Organizational Viewpoint of the Relationships in Supply Chains
Dr. Vojko Potocan, University of Maribor, Slovenia
In modern working relations, a company can improve its business dramatically, especially with formation and performance of suitable management. An important role in the whole management of a company also presents supply chain management (SCM), which represents the integrated concept of managing across the traditional functional areas of purchasing operations and physical distribution. SCM can be defined as “managing the entire chain of raw material supply, manufacture, assembly, and distribution to the end customer.” One of the main concerns about SCM is how much of the supply chain (SC) should be owned by each business. This is called the extent of vertical integration. But in the modern business environment, vertical integrations alone are not enough. The alternative to vertical integration is some other form of relationship, not necessarily ownership. In our contribution, we will examine the relationship between the links of the SC in terms of the flows between the operations involved. These flows may be transformed resources such as materials or transforming resources such as people or equipment. The term link to include all the different types of flow is exchange. This contribution discusses two theses: 1) How (different) relationships in supply chain impact organizing the SC and SCM, and 2) How (different) organizational forms impact SC and SCM. Organizations in modern environment are able to assure their existence (and long-term development) with the entire satisfaction of needs and demands of end-customers. Producers can be competitive on the market (because offers predominate over demands) when they offer suitable price, quality, range, uniqueness, and contribution to sustainable development (as judged by customers) (Fly, Stoner, 2000; Cole, 2004; Potocan, 2004; Barry, Hansen, 2008). For this reason they are confronted with the constant dilemma, how to re-form their work (and behavior) to reach the desired target results. Entire and suitable (this is efficient and successful) organizational work can be assured on the following basis: permanent dynamic adaptation of intentions and aims, use of suitable business concept and innovative work (and behavior) (Tsoukas, Knudsen, 2003; Potocan, 2007; Barling,
Mergers and Acquisitions: Causes and Effects
Prof. Gabriele Carbonara, Parthenope University of Naples, Italy
Rosa Caiazza, Parthenope University of Naples, Italy
The aim of this research is to investigate current trend in international and italian M&A. At this aim we first recognize the main theoretical lines of research that identify determinants of M&A processes. Than, using Thompson Financial database, Zephyr database and KPMG reports, we mapped completed mergers and acquisitions (M&A) over the past decade, trying to identify main causes of the present boom. The present boom in M&A, started in 2005, bears a number of similarities as well as differences with the previous one, started in 1999. The value and number of M&A in 2005 were comparable to the avers in 1999-2001, as were the number of mega deals. The increase in global M&A in 2005 was driven by macroeconomic, microeconomic and institutional factors. The most important factor at the macroeconomic level has been continued economic growth. In 2005 in fact, world real GDP grew by 4.8% (IMF 2006). Favourable conditions in financial and stock markets prompted the growth of domestic and cross-border M&A. At the microeconomic level, a surge of financial flows to collective investment institutions, e.g. private equity funds, led to massive cross-border investments by these funds. The last part of this research is focalized on the Italian banking industry and the main cases of consolidation in this sector. In the 1960s and 1970s, diversification and creation of conglomerates were common reasons for merging with or acquiring other companies (Rumelt et al., 1994; Weston and Weaver, 2001). In the age of economic globalization, M&A are more international in scope, involving companies from more than one country, their focus is also more to bring intra-industry companies together (Hitt et al., 2001). The present boom in cross-border M&A, started in 2005, bears a number of similarities as well as differences with the previous one, started in 1999.
The Effect of Inter-Organizational Relationships on Cooperation Intentions: Evidence from Small Firms in Turkey
Dr. Mujdelen Yener, Marmara University, Turkey
The purpose of this research is twofold; first, to develop and test a conceptual framework relating to inter-organizational trust among partners of a supply chain and its effects on performance; and, second, to articulate how trust affects the selection of partners in the process of merger or acquisition. The resulting model is useful for managers seeking to build trust and gain responsiveness and delineates a number of dimensions that can help management make decisions about on partner selection. Based on a survey of 88 small Turkish firms, the hierarchical regression analysis revealed that trust and human-specific assets are important components of cooperative behavior. The dynamics of faster product development has set new expectation standards, and traditional managerial attributes are being revised to improve firms’ competitiveness in this new environment. Companies are now looking to develop competitive advantages in areas such as manufacturing flexibility, transportation, speed, and information availability, along with strategic response. In recognition of these challenges, practicing managers and academic researchers have realized that a more integrated approach to conducting business is necessary and, as suggested by various academicians and practitioners, cooperation and trust have emerged as useful management concepts (Yener, 2003). The Academic Alliance Forum (1999) suggested that traditional company-versus-company competition is changing towards a business model where supply chains compete against supply chains. Therefore, companies construct ever more efficient and responsive supply chains as a means of competitiveness. With companies deciding to become involved in longer supply-chain relationships, their focus has turned to how to develop and manage the primary supply chain. The concept of interorganizational trust within the supply chain must be understood not just in terms of operational efficiency, but in terms of selecting business partners. The purpose of this research is twofold; first, to develop and test a conceptual framework relating to inter-organizational trust among partners of a supply chain and its effects on the performance; and, second, to articulate how trust affects the selection of partners in the process of mergers or acquisitions.
The Ethic of Care and Student Cheating
D’Arcy Becker, James Rundall, University of Wisconsin, Eau Claire, WI
Ingrid Ulstad, University of Wisconsin, Eau Claire, WI
Ethic of Care (EOC) theory proposes that ethical rules interact with situational variables in driving ethical decisions; what one sees as an ethical action varies as one’s frame of reference varies. This study investigates the influence of students’ EOC levels on their attitudes toward cheating. Results from 172 undergraduate accounting majors indicate that the EOC is a significant factor in student beliefs about cheating, and that the EOC impact exists separately from gender effects. Student cheating, reported to be at an all-time high, is a growing concern. This behavior is of particular interest given that students’ ethical actions while in college are considered a precursor to their ethical actions after college (Lawson, 2004; West, Ravenscroft and Shrader, 2004). Understanding the factors that influence students’ perceptions of cheating is of both immediate and long-term importance. Not all students cheat all the time. What leads a student to cheat in one instance, but not another? Reasons behind student cheating are as numerous as methods students use to cheat. Students lack time to do their own work, they don’t care about the course material, they think they learn as much when they cheat as when they do their own work, they are worried about grades, or they are pressured into cheating by fellow students. Broughton (2008) suggests that business education itself may be at fault for providing students with a sliding scale of ethical behaviors. This study investigates the role situational variables play in student beliefs about cheating by investigating effects of the Ethic of Care (EOC). EOC theory (Gilligan, 1982) proposes that better ethical decisions result from a decision process that considers both formal ethical rules or standards and the implications on self and others that result from applying those rules.
Emotional Concealment and Its Organizational Antecedents: A Theoretical Analysis
Dr. Hakan Ozcelik, California State University, Sacramento, CA
In this study, I have developed the concept of emotional concealment and analyzed its organizational antecedents. I have defined emotional concealment as a self-control mechanism in which an organizational member consciously and deliberately hides his/her emotions aroused as a result of his/her interactions with other members of his/her organization. I have proposed that emotional concealment involves an introspective self-negotiation process influenced by two judgments: an assessment of how other(s) would react if the emotion were expressed, and an assessment of how the person expressing the emotions will deal with these reaction(s). Then, drawing on the role theory perspective, I have developed a theoretical model to analyze the organizational antecedents of emotional concealment, including work-group norms, expert power, referent power, and informal personal network. The way employees express their emotions is significantly under the control of organizations in which they work. In work settings, there is a "right" time, place and face for most feelings (Davis, et al., 1991). Keeping control of one's emotions is perceived as strength in the organizational setting. Emotional strength is seen as a prerequisite of functioning in an organization, and those who show their feelings are categorized as emotionally weak (Parkin, 1993). However, whether they are expressed or not, felt emotions constitute an inseparable dimension of life by affecting human behavior and social relationships. Hence, it appears that a significant portion of the emotions evoked within organizational relationships is kept hidden, or repressed; and those unexpressed emotions can have significant effects in organizational life. Over the previous decades, a stream of research has evolved on expression of emotions as a part of the work role (Rafaeli and Sutton, 1987, 1989; Ashforth and Humphrey, 1995; Morris and Feldman, 1997; Wharton and Erickson,1993). These studies have mostly focused on the display of certain emotions by employees in different service industries. Within the framework of the emotional labor concept, (Hochschild, 1983) researchers have focused on organizational members in customer-contact functions. A significant number of qualitative studies have been conducted to analyze employee's acts of displaying appropriate emotions consistent with the rules of emotional expression towards his/her customer during service transactions. Some examples include flight attendants (Hochschild, 1983), cashiers (Rafaeli, 1989), bill collectors (Sutton, 1991), and nurses (James, 1993).
The Dynamic Effect of Multiple Reference Points on Salesperson Call Selection and Risk Behavior in Multiple Accounting Periods
Dr. Frank Q. Fu, University of Missouri at St. Louis, MO
Despite the volume of studies conducted and the robust conclusions reached pertaining to sales quota setting, several important issues with respect to its subsequent impact on salesperson behavior remain unanswered. We propose a multiperiod, multi-reference-point framework, which helps explain some inconsistencies in the extant literature. This dynamic framework is rooted in goal setting theory and is consistent with empirical findings. The propositions are relevant to both academic researchers and sales managers. Academics in the area of sales force research and management making quota-setting decisions need to be aware that it may not be sufficient simply to consider the static impact of one reference point in single-period context. Performing against quota is the lifeblood of sales (Johnston and Marshall, 2008). Sales quota has also been identified as an important antecedent of salespeople’s work attitude, motivation, and performance (Oliver and Anderson, 1994). However, it remains an under-researched area. Only recently, the notion of measuring salesperson performance over time surfaced as an important issue in sales force management research (Chonko et al., 2000; Schwepker and Good, 2004). Meanwhile, sales managers have struggled for years with implementing scientific ways of setting quotas to motivate their sales forces properly (cf. Johnston and Marshall, 2008). The purpose of this paper is to underscore the importance of examining dynamic effects associated with multiple reference points and reference zones when establishing quotas for salespeople. The implications of not doing so are borne out especially under certain quota-setting policies wherein salespeople examine risks and decide on the extent of effort expended toward quota attainment. Based on a survey conducted in 2001, Hewitt Associates L.L.C. found that slightly over three-quarters (77%) of the 224 U.S. companies that participated in the survey used sales quotas as part of their sales incentive plans (Hewitt Associates, 2001). Similarly, according to a Sales & Marketing Management compensation study, nearly 90% of responding manufacturing organizations included either a bonus or a commission in their compensation packages (Galea, 2004). However, like much of sales management, quota setting is part science and part art. It is often difficult to develop a simple, fair, realistic, and motivational quota-setting system (Zoltners, Sinha, and Zoltners, 2001).
Determinants of User Adoption of E-payment Services
Dr. Wen-Shan Lin, National Chia-Yi University, Taiwan
Dr. Jinn-Yi Yeh, National Chia-Yi University, Taiwan
Yan-Yan Chen, National Chia-Yi University, Taiwan
There are several online banking services available for conducting money transfers and making payments. This paper investigates the factors that affect users’ attitudes about Web-ATM services. Results indicate that bankers and online shops have to provide customized services and added-values to keep and attract customers who will use this service. This study serves as the basis to promote an e-payment method. In the Internet era, the usage of Web-ATM service（Web-ATM）has been introduced to substitute the physical automatic teller machine (ATM) by combining the usage of the bank card and the chip reader. While major banks and commercial web sites are actively promoting the Web-ATM, few researchers have studied the behavior of consumers in adopting this online-banking service. Users’ attitudes toward adopting new technological-services or applications have been investigated for different technological-based services, e.g. a new payment system, Internet broadband service, etc. . (oh et al., 2003; Plouffe et al., 2001). The perceived characteristics of innovations are denoted as the most important predictors of adoption behavior (Kuisma et al., 2007). The theory of innovation diffusion also has been widely cited and applied to investigate users’ adoption of new technology (Carayannis & Turner, 2006). This paper empirically investigates the factors in consumers’ decision to use a Web-ATM service. It begins with a review of previous works in analyzing the influences of diverse indicators on the consumer’s attitude in adopting online financial services. The proposed research model and hypotheses are then explained. Section four presents the methodology and results of the analyses. The last section offers the conclusions. Online-banking services have gained popularity; topics pertaining to e-payment or online financial service have received attentions. Several theories reveal the factors that may affect consumers’ willingness to use an online financial service. They consist of: (1) factors that affect perceived usefulness and ease of use （Davis et al., 1989); (2) theory of planned behavior; （Ajzen, 2006; Ajzen, 1985）; (3) innovation diffusion theory （Lai & Lee, 2005; Roger, 2003); (4) service switching costs（Burnham et al., 2003); and (5) factors that affect the adoption of e-payment （Kuisma et al., 2007; Cheng et al., 2006). Social influence, trust and perceived resources are factors in the literature that may influence users’ adoption of Internet-banking services.
The Effects of Brand Affect on Female Cosmetic Users Brand Loyalty in Taiwan
Dr. Hsin Kuang Chi, Nan Hua University, Taiwan
Dr. Huery Ren Yeh, Shih Chien University, Kaohsiung, Taiwan
Dr. Cherng-Ying Chiou, The Overseas Chinese Institute of Technology, Taichung, Taiwan
The purpose of the study aims at the discussion of the relationships among customer perceived value, brand trust, brand affect and brand loyalty. In addition, the study uses brand trust and brand affect as mediators to analyze the relationship between customer perceived value and brand loyalty. The research subjects are female consumers who ever used cosmetics, and they are asked to respond the questionnaire on understanding the differences and influences among customer perceived value, brand trust, brand affect and brand loyalty of cosmetics usage. The results reveals that (a) customer perceived value, brand trust, brand affect and brand loyalty have a significant relationship among each other, (b) customer perceived value will affect brand loyalty through the mediation effect of brand trust and (c) customer perceived value will influence brand loyalty through the mediation effect of brand affect. In the 1970s, compact powder was the main cosmetic products in the domestic industry. At that time, cosmetic products were a luxury product because the society is still in the condition of deficiency of many things in daily life. Therefore, there are not too many chances to use cosmetics, and the most occasions to apply cosmetics are in a wedding ceremony or Chinese New Year. However, putting on make-up is believed as a suitable manner in any occasion nowadays. Also, following the spreading of cosmetic knowledge, the change of social viewpoint, and the high frequency of interpersonal interaction, the consumption in cosmetics has also increased (Dai, 1998). Thus, cosmetics has changed from a luxury product to a popular product because of the human nature in good looking, the increase of cosmetics requirement and the decrease of users’ age. In the meantime, the trend of male consumers in cosmetics is increasing yearly. Furthermore, the rising of new cosmetic products and new marketing channels also impact the market. Especially, the number of the specialty stores for famous brand cosmetics have mushroomed in many areas. The speed of expansion and scope of the impact of famous brand cosmetics are out of imagination. Buying famous brand cosmetics becomes a symbol for a person. However, these famous brand cosmetics still need to focus on their target markets. No matter business in Taiwan or global market the competition is always aggressive, business operators have to seek for their market competitive advantages in order to operate and grow continuously.
Corporate Strategic Motivation: Evolution Continues–Henry. A. Murray’s Manifest Needs to Maslow’s Hierarchy of Needs to Anil Sarin’s Contributory Theory of Existence
Prof. Dr. Anil Sarin, India
In consequence to globalization and paradigm shift in the needs, many executives have reached to the state where money, power and recognition are not enough to motivate them further. The corporate sector of 21st century has started realizing that getting their executives married to higher packages of – Money, Recognition, Power (MRP)… based upon the existing motivational theories is not enough to keep them engaged in a organization. Money, Recognition, Power, Growth... though significant, but are not the only factors as there are several other factors beyond materialistic factors that keep executives motivated. Now, the question is: Which are those factors beyond materialistic factors that are influencing the executives to the extent where the motivational leverage of materialistic aspects starts diminishing. The talent retention is a major concern among organizations world over, with the global business opportunities expanding manifolds. Therefore, companies have to constantly develop innovative motivational strategies to retain and keep their executives effective and also attract new talent to their organizations for the sustained growth on long term basis. The time has come to give a new look to the existing motivational theories (a natural process of evolution) and develop the concepts which should be contemporary in nature and are able to provide motivational tools, capable of managing beyond materialistic factors. This article identifies beyond materialistic factors and also offers a theory named as Anil Sarin’s Contributory Theory of Existence for managing - Give me (demanding) factors and Let me give (contributory) factors effectively for developing motivational strategies by maintaining the equilibrium between the two factors. Historical views on motivation, even though not always accurate like many other studies, but have definitely proved to be an integral part of the foundation for evolutionary development. Motivation is a mix of forces that direct people to act. Motivation is a mental process which influences decision making of an individual / group or an organization to act or not to act, when, where, how to act or to act in favor or against. In today’s scenario, motivation can also be categorized as individual, group and organizational motivation. Depending upon the intensity of motivation, the effectiveness of the outcome of the act is substantially effected. Scientific management believed that money is the primary human motivator. However, the human relations view suggested that social factors are primary motivators. Abraham Maslow (Psychologist) developed his hierarchy of needs theory in the 1940s based on Henry A. Murray’s postulation that people attempt to satisfy their multiple needs (Murray manifest needs) simultaneously rather than in some preset order. Unlike Maslow, Murray did not arrange the needs he identified in any particular order of importance. Murray’s Manifest Needs, presented in 1938, identified the set of needs, but only at an abstract state. Its present form comes from the contribution of J. W. Atkinson, who conceptually structured Murray’s ideas into a logical operational framework. Further Maslow proposed a theory of hierarchy of a set of five such needs.
An Empirical Study to Measure the Communication Skills of the Manager Assistants, Medical Secretaries and Office Workers in the Public Sector
Dr. Demet Unalan, Erciyes University, Kayseri, Turkey
Dr. Dilaver Tengilimoglu, Gazi University, Ankara, Turkey
Fatma Akdemir, Gazi University, Ankara, Turkey
Manager assistants and medical secretaries have great importance in the relations of organizational communication with external and internal environments of companies. Therefore, developing skills of medical secretaries will solve problems caused by deficiency of communication and provide a great benefit in increasing productivity. This study has been planned to determine the communication skills of manager assistants and medical secretaries in public sector. A questionnaire has been applied to 228 employers working in the ministry of finance, ministry of justice and hospitals of Erciyes University (3 hospitals). This questionnaire consisted of questions prepared in order to measure the communication skills of respondents. The first section includes questions about demographic properties and in the second part questions about communication skills are presented. According to the results of the questionnaire, feedback, self-expression and listening abilities of manager assistants and medical secretaries are sufficiently qualified. In its widest terms, communication can be called “information sharing activity” (Anderson, 1972) According to another definition, communication is also a process in which thoughts and ideas are exchanged mutually and the meanings are transferred between people by means of symbols such as language and gestures (Himstreet and Batty, 1969). It is the xchange of messages related to each other between two units (Cuceloðlu,1996). Interpersonal communication is a one-to-one interaction in which messages are generated and transmitted by one person and subsequently received and translated by another (Tindall and Beardsley, 2003). Organizational communication is the sharing of any human activity that enables more than one person to concentrate on a purpose and that has a significant role in providing the necessary adjustment to and collaboration with their environment in order to work efficiently for their organizational purpose through cooperation and that have meanings in formal or informal structures (Karakoç, 1990). Researchers define five types of organizational communication systems: from below to up, horizantal,fascicular and reticular types of communication systems. While the first three systems may be called formal communication, fascicular and reticular types of communication systems are classifed as informal constructions (Hersey,Balnchard & Johnson, 1996). Communication skills have great importance in the work area just as they have in all areas of life.
The Pursuit of CSR and Business Ethics Policies: Is it a Source of Competitive Advantage for Organizations?
Dr. Arinaitwe. K. Stephenson, Uganda Christian University (UCU), Mukono, Uganda
Corporate social responsibility (CSR) has become a popular strategy for organizations to bolster their reputations and respond to pertinent social issues. Although CSR programs are important to the organization, the costs of these programs are so extensive that achieving a competitive advantage through CSR can be a notable challenge. In an effort to elucidate these challenges, this investigation considers whether or not organizations can derive a competitive advantage (CA) through corporate social responsibility programs. The results of the investigation suggest that CSR can lead to a competitive advantage, but only through integration of CSR with all aspects of the organization’s operations. The implications of this issue are discussed along with recommendations for organizations to develop and implement CSR programs. Corporate social responsibility (CSR) has become a linchpin for the development of organizations such as Starbucks and Ben & Jerry’s. Although these organizations support the use of this paradigm as a central driving force for the development of business activities, measuring the outcomes of CSR programs in terms of competitive advantage is a difficult task. Thus, while organizations such as Starbucks can pride themselves on doing “the right thing” assessing value from corporate social responsibility programs is the only salient way for organizations to know for sure if CSR programs really meet the demands of the bottom line. With the realization that efforts to measure CSR have not focused heavily on understanding the competitive advantage that can be garnered from these programs, there is a direct impetus to consider the specific outcomes that can be achieved through CSR programs. Using this as a basis for investigation, this research considers the following question to guide research: “Is the pursuit of corporate social responsibility and business ethics an important source of competitive advantage for the organization? Through a careful review of what has been noted about CSR, its impact on the organization and the outcomes that have been achieved by organizations using this paradigm, it will be possible to assess the overall impact of CSR programs on creating a competitive advantage for the organization. A critical review of what has been noted about the definition of this term suggests that there is considerable variability on how scholars and organizations view this process. However, an analysis of definitions does show some commonalities among the explications offered. As such, it is pertinent to provide a review of how corporate social responsibility has been defined and conceptualized. Ford (2007, p. 50) in his review of the definition of corporate social responsibility makes the following observations: “CSR is a combination of sustainable development and treating employees and the society within which companies operate with respect. The environmental impact of any economic activity should be weighed against the economic benefit and any measures that could mitigate the negative impact should be taken if they are at all economically feasible.” This author goes on to argue that under this programme workers should be treated fairly, receiving equitable pay, compensation and benefits. The complete program that is created following these ideas represents the total CSR program of the organization. Berger, Cunningham, Drumwright, et al., (2007) in their review of corporate social responsibility make similar observations about the definition of the process.
Sufficiency Economy Principles: Applications for Organisation Management Strategy
Dr. Teerayout Wattanasupachoke, Chulalongkorn University, Thailand
This study focuses on the conceptualisation and application of the sufficiency economy concept for use in organisation management strategy. This is aimed at understanding the deployment of the sufficiency economy principle in enterprises in Thailand as well as examining the relationship between the application of the sufficiency concept in organisational strategies and their performance. From an empirical investigation, a firm’s financial performance is influenced by various concepts of moderation principle, consisting of “leverage financing and capital structure”, “appropriate levels of growth and spending”, and “thorough evaluation of investment projects”. The neutrality way of business operations is then able to strengthen a firm’s financial performance. Regarding the non-financial performance, the knowledge application and morality conditions seems to be influential factors. “Efficient database and environment monitoring” and “integration of CSR into firm’s operations” are of prime concern for achieving higher non-financial returns. Therefore, the moderation principle, knowledge application condition, and morality condition are of critical importance to a firm’s performance. These factors should lie at heart of business management in order to enhance performance, stability, and sustainability of organisations. The concept of a sufficiency economy is widely known throughout Thailand because His Majesty King Bhumipol Adulyadej, who is the greatly respected, developed the principle. Consequently, the philosophy of “Sufficiency Economy” lies at heart of all Thai people and has been regarded as a panacea for various recent business and economic problems. This is because the concept can lead to the balanced and sustainable development as well providing help for firms to cope with uncertainties (Ananthakul, 1998; Wong Cha-um, 2001). The sufficiency economy refers to a middle path of principles for appropriate conduct. In this respect, sufficiency focuses on moderation, reasonableness, and self-immunity mechanisms in any challenge from external and internal factors (Piboolsravut, 2004) The sufficiency concept is then of utmost importance in protecting people and firms from adverse sudden effects as well as relieving problems, (Sussangkarn, 1999). This also sheds light on the necessity for Thai business organisations to apply the concept in strategic practices. However, the understanding of this concept remains limited and there is lack of a database regarding the connection between the concept and business enterprises. Therefore, research into the topic of “Sufficiency Economy Principles: Applications for Organisation Management Strategy” deserves significant attention for in-depth study. The figure one displays the framework of the study. The focus of this study is on the conceptualisation and application of the sufficiency economy concept for use in organisation management strategy. The discussion is also impact on organisational performance. The following research objectives have, therefore, been set: To understand the deployment of the sufficiency economy principle in enterprises in Thailand; To investigate the extent of the sufficiency concept when applied to the management strategies of enterprises in Thailand;
Perceptions of University Students on Academic Honesty as Related to Gender, University Type and Major in Turkey
Dr. Cemile Celik, Mersin University, Mersin, Turkey
Academic dishonesty has started to be an important issue at university campuses all around the world. In this study cheating and plagiarism were examined through the undergraduate students of FE (faculty of engineering) and FEAS (faculty of economy and administrative Sciences) of universities located in the largest three cities of Turkey. The sample of this study included 2182 students from FE and FEAS of universities in Ýstanbul, Ýzmir and Ankara. It was found that students were involved in cheating more than plagiarism. Academic honesty scores of female students, students of FEAS, and public university students were higher than the the other groups. In business circles, immoral incidents and behaviours at managerial and technical levels are noticed over the world in recent years. Enron, Worldcom, Bristol-Myers, Arthur Anderson, Xerox, Citigroup, Merrill Lynch, Dozens of Dot-Coms are the well-known examples with ethical misconduct. Other than these issues which are managerial decisions and choices, in technical spheres also there have been serious misconducts such as air pillows of automobiles that are not functioning, collapsed buildings and bridges, cancerogen food on sale etc. Ethical misconduct could be examined in relation to educational background of people who commit or decide on business issues through unethical means (Hosmer, 1985). Therefore, to understand the ethical nature of business related issues it would be appropriate to examine the honesty related perceptions of college students who would be making decisions for business in the future. In this sense, academic dishonesty and cheating among university students need to be studied (Bowers, 1964; McCabe and Trevino, 1993, 1997; Brown and Choung, 2005; Bunn et.al., 1992; Maramark and Maline, 1993; Bernardi et.al., 2004). Ethical attitudes and behaviors of people mainly are formed in family and educational institutions. Therefore increasing ethical problems in the bussiness world have prompted many educational institutions and universities to examine their curriculum and look for ethical loop holes. Because it is commonly agreed fact that people do not behave immorally as soon as they become managers (Hume and Smith, 2006; 50). All of the stakeholders of colleges and universities are responsible for dishonest attempts across the campuses. Also the students, academics and managers of the institutions are responsible for the process. For instance, an accounting professor struggles for joining ethics and accounting professional education instead of wide spectrum of courses in order to increase moral reasoning, moral determination of the students (Karr, 2004; 29). On the other hand according to Pavela and McCabe (1993) some educators do not believe that students regard cheating as immoral and that is one of the reason of the problems. In relatively traditional cultures, where understanding of individualism and competition is still weak, cooperating out of rules is tolerable and students may break rules more easily and also teachers may not behave determined and consistent in applying sanctions against the guilty (Hutchison, 2002; 308). According to Connors (1996), academics initially suggested students use web resources, but now they are disturbed by the results (quoted by, Austin and Brown, 1999; 21).
Utilization Form of Tourist Guide Map: Tainan City Tourism Map as an Example
Dr. Shuo-Fang Liu, National Cheng Kung University, Taiwan
Chen-Yuan Kao, National Cheng Kung University, Taiwan
Wen-Cheng Wang, Lecturer, Hwa Hsia Institute of Technology, Taiwan
Maps normally are classified according to their characters such as: scale, content, usage, cartographic area and Utilization form. In this study, we focus on the utilization form to investigate the usability standard reference of tourist guide map. Usages of three types of map are analyzed in our study, namely: Standing-type, Folding-type, and Booklet-type maps. We select Tainan city to investigate in depth the usage behavior of the three types of map through both non-participant observation and questionnaire survey. Finally, we clarify and define the user’s information requirements of tourist guide map through our study, which can be used as reference for traditional or digital map interactive design. Additionally, we introduce these utilization concepts as reference for related business managers. The locals and tourists need to move around in the complicated, modern big cities environment. Their cognition towards “locations” is changing from the unit interpretation of someone or something to the digital coding technology. Modern map is becoming more significant with its huge storage capability, advanced rational design, effectiveness and convenience, even though it is less emotional. Its importance is well proved by its wide popularity; such as layout map, route map, sequence map, program map and selective map are all essentially required for the promotional items and activities in streets, stations, tourist sights…etc. Map users can extract all the information they need to know about distance, location, direction, activity type and content through these maps. Maps are classified in various ways. In Ci Yuan Dictionary (1983), map is explained as the cartographic drawing indicates the geographic, economic and administrative division; it clarifies the existence of all the mountains, rivers, valleys, plains…etc. In Da Ci Hai Dictionary (2005), map is described as the map-drawing of the nature and social phenomenon on the ground; they are classified according to content (general map, thematic map), scale (large, medium, small), form (image map, 3D map, line-drawn map)…etc. The utilization forms of map are classified to three basic types (Liao Ke et al., 1985): Standing-type, Folding-type and Booklet-type maps. Content of tourism sightseeing guide mainly belongs to thematic map; depends on various factors, it utilizes all the three mentioned types of map. For example, Standing-type map is usually used on-site in scenic spot while folding-type map is often used within the range of specific tourism scenic spot; but Booklet-type map is used in a wider covering range of scenic spot or location. Therefore, we are trying in this study mainly to assign the requirements of utilization forms and information content of the three types of tourism guiding maps in order to conclude the “concept” of each utilization form. This study uses non participant observation (Kathleen M. DeWalt & Billie R. DeWalt, 2002) method to observe the tourist guide center in front of the Tainan City Train Station; the observation and recording procedure are done without disturbing the map viewer.
The Development of a Methodological Framework of Market Orientation Implementation: A Value Chain Perspective
Dr. Amalia Pandelica, University of Pitesti
Dr. Ionut Pandelica, University of Pitesti
Dr. Ionel Dumitru, Academy of Economic Studies - Bucharest
This paper presents a methodological framework of market orientation implementation within the organization from system of value chain point of view. The paper is a theoretical one, based on a large bibliographical research (there have been used over 30 articles presenting the empirical findings of researches on various aspects of the concept) and develops a methodology which involves many phases which should be done by the executive level of an organization for it to become (more) market oriented. The article is grounded on the premise that market orientation is a complex and interdisciplinary concept whose implementation involves many changes within the organization. The success of the implementation process depends on many determinant factors, one of them being the extent to which all members of the value chain system, understand, support and act according to this orientation. Since the 90`s many researchers have shown a genuine interest for a new concept - market orientation. The first who studied it were Kohli and Jaworki (1990) and Nerver and Slater (1990). Relying on the theories developed by them, many other researchers focused on the study of the relationship between this concept and organizational performance. Market orientation is a theme approached by many specialists in various economic field: marketing (Narver and Slater, 1990), strategic management (Piercy, 1997), marketing management (Doyle and Wong, 1998), strategic management of human resources (Harris and Ogbonna, 1999) public services (Stokes, 2000). Even if as a concept it has a multiple choice approach all of them start from the same premise - market orientation is a business philosophy, which connects all functional departments of the organization to the operational environment, which has as an final outcome the creation of superior value for the customers and thus, the creation of a sustainable competitive advantage. The researches dealing with market orientation envisaged both big companies and medium- and low-sized companies, non-profit organizations and various public institutions. If we also add the fact that the implementation of this concept within the organization cannot be accomplished without the support of all functional departments and employees, and the success of the implementation depends on the level of understanding and support of all members of the value chain system, we may conclude that this is a complex and interdisciplinary concept. At present, the researchers are much more concerned with the way in which a company may become (more) market oriented. In such a context, our paper would intend to develop a methodological framework with several phases which should be done in order that an organization become (more) market oriented.
Exchange Rate Regime Misfit and Currency Crises
Dr. Chaiporn Vithessonthi, Mahasarakham University, Thailand
In view of recent currency crisis in a number of developing and developed countries, this article examines the advantages and disadvantages of several exchange rate regimes with the focus on the possible choices of the exchange rate regime for emerging market countries. As the globalisation of financial markets has led most countries toward the liberalisation of their financial markets, monetary authorities face numerous challenges in managing macroeconomic policies so as to promote economic growth and stabilise the economy. This article enters the current debate on exchange rate policy by examining the effects of monetary and fiscal policy on macroeconomic variables under different exchange rate regimes. The paper presents propositions predicting a misfit between exchange rate regimes and a nation performance. Finally, the implications of the propositions for policymakers trying to address an exchange rate volatility issue are discussed. Since the end of the Bretton Woods system, several developing and developed countries have experienced currency crises, which generally result in a change in the exchange rate regime towards either a fixed exchange rate system or a flexible exchange rate system. For example, after the massive, but unsuccessful, attempt (i.e., through massive sterilised intervention, reportedly with the amount of $70 billion, within a few hours) to prevent a collapse of the British pound in 1992, the British government had to allow the pound to float freely. The Swedish central bank’s attempt to defend the krona’s fixed exchange rate against speculative attacks also ended in failure, and thus had to allow the krona float freely with substantial losses on its foreign exchange positions in 1992. The attempts of several countries such as Mexico, South Korea, and Thailand did not fare better. Several explanations have been proposed to explain the causes of currency crises. According to the first- and second-generation models, currency crisis is a product of the government’s mismanagement of economy as well as lack of credibility (see Krugman, 1979; Obstfeld, 1994). The third-generation models suggest that a shock, which tends to be amplified by a financial accelerator mechanism, primarily contributes to the crisis (Bernanke et al., 1999). For instance, a pure shift in expectations against exchange rates can generate multiple equilibriums, which result in currency crisis (e.g., Chang and Velasco, 2001; Krugman, 1999). In the process of global integration in the financial markets, several countries have to forgo the ability to control capital mobility and liberalise the domestic financial market so as to promote international trade and attract foreign investment into the country.
Responsible Financing?: The Equator Principles and Bank Disclosures
Dr. Jane Andrew, University of Wollongong, Australia
The purpose of this paper is to consider the impact of the Equator Principles on banking disclosures. The research explores whether signatory banks are disclosing information related to their obligations under the Equator Principles and discusses the types of disclosures being made publicly available. The research illustrates that banks are disclosing very little information to help users assess the impact the Equator Principles have had on these banks practices. It is also suggested that banks are reframing their identity through these principles, but it is still difficult to assess whether this is also transforming practice. There is little academic research considering financial institutions and their social and environmental responsibilities and this work seeks to address this gap. Corporations are under increasing pressure to represent themselves to multiple audiences, using complex, contested and often competing criteria to assess the performance of the firm (Cooper and Sherer, 1984; Cousins and Sikka, 1993; Gray, 2002). Cultural practices that respond to, produce and reproduce social expectations have been considered within the field of cultural and media studies (Agger, 1992; Hall, 1997), and this work is beginning to inform research in emerging fields such as corporate social responsibility, sustainable reporting, environmental accounting and ethical finance. This paper utilizes Hall’s (1997) work on media, culture and representation. I assume from the outset that information produced by corporations is framed discursively by the institutional and cultural structures that allow its emergence; it is constructed and constructing, productive and reproductive, constituted and constitutive. Accordingly, representations of and by the firm that fall into the category of corporate social responsibility are part of a process and are not an end in themselves as these can never be controlled entirely by the producer or the audience. This interactive process will be considered in more detail throughout the paper. It is hoped that this theoretical framing of voluntary corporate codes of conduct (specifically the Equator Principles) can help develop our understanding of the purpose, process and possible outcomes of these codes. Increasingly, environmental groups hoping to expose those responsible for catastrophes, and prevent them happening again, are working up the chain of financial responsibility. Not content with holding up to public scrutiny the companies directly involved, they are seeking out the organizations that provided finance for projects that end in such disasters (Harvey, 2005, p.13).
Measures of Marginal Cost in the Estimation of a Hybrid Model of Sticky Price and Sticky Information Price Settings
Dr. M. Murat Arslan, Middle East Technical University, Turkey
Theoretical models of price setting imply real marginal cost as a measure of real economic activity. However, most of the empirical literature has used the output gap as the measure of real economic activity by assuming it to be an appropriate proxy for real marginal cost. However, because of the some problems with the output gap, unit labor cost has been recently used to measure real marginal cost. In this study, a hybrid model of sticky price and sticky information price settings, which is called the SP/SI Phillips curve, is estimated by a full-information maximum likelihood estimation (MLE) method. In this estimation both the output gap and unit labor cost are used as alternative measures of real marginal cost to see which measure is more appropriate proxy in such a framework. Estimations show that more reasonable and sensible results are obtained when unit labor cost is used as a proxy for real marginal cost rather than the output gap. This result is robust to alternative sub-samples. In the New Keynesian literature, the most common approach to theoretical modeling of short-run inflation dynamics is to assume some kind of sticky prices (and/or wages) in the optimization problems of forward-looking individuals and firms. This leads to the derivation of the New Keynesian Phillips curve (NKPC) in the framework of Calvo's (1983) model in which each firm adjusts its price with some probability in each period independent of waiting time. (1) Although the NKPC model has been used as the ``workhorse" in the literature and has an appealing theoretical structure, it has been criticized for producing implausible results regarding inflation dynamics. (2) The empirical limitations and difficulties with the standard NKPC model have motivated researchers to go in two directions. In one direction the standard sticky price framework is modified and extended. (3) Some researchers, including Fuhrer and Moore (1995) and Gali and Gertler (1999), obtained a hybrid version of the NKPC and old Phillips curve by including a lagged inflation term into the NKPC. However, these hybrid Phillips curves also have difficulties in characterizing inflation dynamics. In the other direction, the sticky price model is abandoned, and new models are proposed to explain the observed price stickiness in data. Such as Mankiw and Reis (2002) proposed the “sticky information Phillips curve” as an alternative to the NKPC. In this model, a fraction of firms get complete information about the economy in each period randomly and independent of waiting time, and set their prices according to this new information, while the remaining firms set their prices according to old information. (4) In literature the sticky information model usually receives little or no support, and standard sticky price model or a version of it dominates the sticky information model. Recently, there is a new approach in theoretical modeling that leads to a hybrid model, which combines the sticky price and sticky information models in a single price setting model. (5)
Is the Relationship between Capitalism and Society Parasitic or Symbiotic? The Role of Finance Leadership as Strategic Partners for Sustained Prosperity
Kasthuri Henry, Walden University
Dr. Robert DeYoung, Walden University
Dr. Jean Gordon, Walden University
The relationship between corporations and society is symbiotic in a world embracing sustainable capitalism. It is therefore imperative for individuals to be cognizant of the influence they exert on each other. Capitalism thrives under consumer confidence, investor assurance, and uninterrupted resource supply in a stable socio-political environment. These are foundational characteristics of a stable global economy. Drawing from the theories of Adam Smith, Karl Marx, and Max Weber this paper looks at the modern day dynamic between capitalism and society. For, without a sustainable society, the best of corporations will sink into oblivion due to lack of effective human capital, market, and stakeholders. The paper also explores the role of accounting and financial leadership in developing and executing the value-centric strategic vision of organizations with the overarching goal of sustained prosperity. Social evolution lays the groundwork for the collective human experience. The evolutionary progression of society over the written history has provided a glimpse into the stages of hunter-gatherer society, agricultural communities, industrial age, and information age. The modern information age has brought with it a wave of global society that is unparalleled. Mechanism of commerce has evolved alongside social development that has taken place over the decades. Barter system, commodity based exchange of labor and products, and now to the monetary system with the complexities of balance of trade and exchange rate well illustrates the progression. Economy is the underpinning of modern day society. Of the various forms of economy, a greater proportion of people in the global community embrace capitalism. Having its roots in mercantilism, capitalism continues to evolve and impact society in myriad of ways. It continues to make the civil society and economies interdependent. Development in technology and transportation continue to fuel capitalism via globalization. Today, globalization means more than multi-national corporations doing business anywhere in the world. It has the added complexity of sovereign nations like United Arab Emirates, China, Russia, Norway, and Singapore investing in global corporations thus increasing their power to influence commerce and shape the global society via sovereign national funds. Globalization has also changed the mix of resource availability for corporations introducing human capital concepts of outsourcing and off-shoring, expanded the supply chain across the globe, and leveraged technology to raise financial capital in multiple international stock exchanges. Previously inaccessible markets have opened up challenging corporations to capture new customer bases armed with an intuitive understanding of the cultural underpinnings.
Demographic and Psychographic Factors that Affect Environmentally Conscious Consumer Behavior: A Study at Kocaeli University in Turkey
Duygu Fýrat, Kocaeli University, Kocaeli, Turkey
Due to many reasons, environmental consciousness has germinated in society. Consumers have been influenced by this consciousness in their buying behaviors. Hence, this study intended to examine the factors that affect environmentally conscious consumer behavior. To achieve this, the author used the Straughan and Roberts (1999) survey. The results of the findings found that psychographic variables are more influential than demographic variables. Findings of the study are consistent with a number of other studies. Starting in the 1980s, presses by environmental organizations, competition and academic discussions, a growing environmental consciousness were germinated. Particularly in recent times, climate change, drought and melting of glaciers due to global warming, many societal organizations and local institutions have striven to increase the public’s environmental consciousness. The progress seen in society has been brought about by environmental marketing and literature. It has said that describing environmental marketing is too hard. And it also has been said that descriptions of environmental marketing must change due to the changes that occur in environmental consciousness. This situation is illustrated by chloride-fluoride that incurs dangerous items that damages the environment (Uydacý, 2002: 82). When examining the literature, no common description about environmental marketing can be found. Some descriptions include: The term ''green marketing'' has been described as an organization's efforts at designing, promoting, pricing and distributing products that will not harm the environment (Pride and Ferrel, 1993 from Vlosky et. al., 1999: 125). According to another description, environmental marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs with minimal detrimental impact on the natural environment (Polonsky, 1994). Environmental marketing was defined as the study of positive and negative aspects of marketing activities on pollution, energy depletion and non energy resource depletion by American Marketing Association (Uydacý, 2002). It is possible to redouble the descriptions (Donato, 2005; Oxford, 2002 from Çabukoglu, 2003; Gulsoy, 1999). At last, how it is described, the basis of environmental marketing is fulfilling needs of people. In environmental marketing, businesses, included social responsibility, implemented marketing activities oriented to consumer satisfaction and not to give damage natural environment. Enterprises have been gravitated environmental marketing for many reasons. These reasons were summarized like above. Enterprises perceive environmental marketing as an opportunity to perform their objectives (Keller, 1987 from Polonsky, 1994). Enterprises think that environmental marketing is more social responsible behavior (Davis, 1992; Keller, 1987 from Polonsky, 1994; Shearer, 1990;
World Cruise Industry: Strategic and Financial Choices to Face the Main Risks
Dr. Gabriele Carbonara, Parthenope University of Napoli, Italy
The cruise industry has enjoyed dynamic growth over a period of 25 years, driven mainly by demand from North America that is the main source market, covering two-third of the market, followed by Europe which cover one-fourth of the global market. Competition is dominated by the "Big Three" cruise groups, the Carnival Corporation, Royal Caribbean International and Star Cruises enjoy a combined market share of over 85%. In the competitive international cruise industry, there are a number of factors that affect companies’ performances. The general economic and business conditions can adversely impact the levels of potential vacationers’ discretionary income and thereby reduce the net revenue yields for cruise brands. Competition among different cruise ship operators and providers of other vacation alternatives, tax laws and regulations can affect company business. Reduction in consumer demand for cruises can result from any number of reasons, including geo-political and economic uncertainties and the unavailability of air service, the international political and economic climate, armed conflicts, terrorist attacks and threats thereof, availability of air service and other world events. Negative incidents, unusual weather conditions or natural disasters, such as hurricanes and earthquakes and the impact of the can cause the alteration of itineraries or cancellation of a cruise or series of cruises. Finally changes in operating and financing costs, including changes in foreign currency, interest rates, fuel, food, payroll, insurance and security costs can impact on business performances. The aim of this article is to identify the main characteristics of cruise industry, the sources of risks and the financial instruments that have to be used to face them. The groundwork for the modern day cruise industry was laid down as far as the early 1950’s. Following the arrival of air transportation service between Europe and North America, large transatlantic liner companies were forced to seek alternate usage for their ships (Cartwright and Baird, 1999; Ward, 2005). Before the employment of the jet airliner, it took a boring, monotonous fourteen hours to fly across the ocean. After the jet was placed in trans-Atlantic service the time was halved. The wide bodied airliners with comfortable seats, good meals and drink, sound and movie entertainment made the time pass quickly. Business people and tourists found the time saved was of greater value at their ultimate destinations than waiting for a ship to complete its four day crossing. By the early 1970's most of the trans-Atlantic ships were gone (Santangelo, 1984). With a rapidly shrinking transatlantic passenger base, opportunistic shipping companies repositioned their service from transportation to vacation travel. At the same time, lines that led the transition, such as Princess Cruises (1965), Norwegian Caribbean Line (1966; now Norwegian Cruise Line, NCL), Royal Caribbean Cruise Line (1969; now Royal Caribbean International, RCI), and Carnival Cruise Lines (1972), paced the industry. The passenger base was relatively small, in fact in 1970 only 500.000 people took a cruise (CLIA, 2005) because it was an expensive, formal, and relatively lengthy vacation (Frankel, 1987).
The Effects of Organizational Downsizing and Layoffs on Organizational Commitment: A Field Research
Dr. Asuman Akdogan, Professor, Erciyes University, Turkey
Ayse Cingoz, University of Nevsehir, Turkey
Responding to today’s quickly changing environments is prevalent these present days, with quality performance depending on a firm’s appropriate size rather than extended size. Researchers’ and practitioners’ views related to firm size began to change in the early 1990s. As a result, some new concepts and initiatives, such as organizational downsizing, began to take place in the field of management and organizations. Organizational downsizing, which is defined as reducing an organization’s use of human and capital resources to correct misalignment and improve performance (DeWitt, 1993), offers many benefits, from increased productivity to creating synergy. Exploiting these benefits depends on “the survivors” attitudes and behaviors. Organizational commitment is one of the attitudes that is affected by organizational downsizing. In this paper, we examined how organizational downsizing affected survivors’ commitment to the organization. A survey was conducted using five firms in the manufacturing industry in Kayseri (Turkey) that were undergoing downsizing. Data were obtained from 163 employees and was analyzed using SPSS 15.0. The survey revealed that employees’ positive perceptions of organizational downsizing increased organizational commitment, including affective, continuance, and normative commitment. Since 1990, intensive environmental change has influenced all people and all organizations. Factors such as globalization, transformation to a knowledge economy, adjusting to changing conditions, and national and international crises have all prompted organizations to seek more flexible, simpler, increasingly dynamic, and mobile organizational structures. Within this changing environment, organizations begin to develop strategic alternatives to adapt to new internal and external conditions and to use all available resources effectively. The strategy of organizational downsizing is one of these alternatives. Organizations may implement a downsizing strategy to achieve an appropriate size, to restructure, to adjust to increasing technological advancements, to specialize in their core business, to become more flexible, to cut costs, to remain competitive, to speed the decision-making process, or to execute new ideas quickly (Applebaum et al., 1997; Rabin, 1999; Baron & Kreps, 1999). A growing body of evidence from both practitioner and academic literature, however, indicates that many downsizing efforts have failed to meet their objectives. In many cases, these failures have resulted in trouble. The negative implications of downsizing on remaining employees (survivors) are one of the main reasons organizations fail to meet the above-mentioned objectives.
The Use of Earning per Share in the Analysis of a Company’s Market Value
Dr. Monica Achim, Babes-Bolyai University, Romania
Dr. Sorin Achim, Babes-Bolyai University, Romania
Sorin Borlea, Babes-Bolyai University, Romania
One of the most common indicators for a company of public interest is the earning per share (EPS), which is the net result produced by a share during a financial period. The role of EPS is to exert a significant impact on the share price and, consequently, an important role in the investor’s decision making. In this article we intend to review the calculation method for the EPS indicator, useful for explaining its evolution through its composing elements. We will also highlight the limits in the use of this indicator and the possible modalities of surpassing these limits. Finally, we will reflect the best techniques for a good analysis of EPS indicator, useful for a best decision making by any investor. The importance of this indicator in the investors’ decision making lies in the fact that it relates the internal performances of the company and its public image on the market, reflected through the internal stock market ratios. In other words, any stock market investor will begin the analysis required for decision making starting from the EPS indicator. Companies choose to be cautious, because if their earnings per share do not reach analyst’s forecasts, the short-term impact on company stocks could be negative, causing them to decrease in value. Vice versa, if the reported EPS is higher than expectations, the stocks of the company increase in value. Due to the importance of this indicator, International Accounting Standard Committee created a specifically standard, the IAS 33, „Earning per share”, requiring the presence of this indicator within the structure of the Profit and Loss Account. Conform IAS 33, all entities whose securities are publicly traded or that are in the process of issuing securities to the public, must comply with the principle’s standard (IAS 33.2). Other entities that choose to present EPS information must also comply with IAS 33 (IAS 33.3). Headline EPS is included in company publicity and is often computed by an analyst. The calculation methodology of EPS is prescribed by IAS 33 principles for the determination and presentation of EPS amounts in order to improve performance comparisons between different enterprises in the same period and between different accounting periods for the same enterprise. Conform IAS 33 EPS would be determined in two ways: „
An Examination of Social Disclosures by Islamic Banks: Evidence from UAE
Dr. Marwan Mohamed Abdeldayem, University of Dubai (UD), Dubai, UAE
Islamic banks have grown in size and significance in the world over the past three decades. Not only Islamic institutions have been formed, but also there are many conventional banks have started to offer Islamic banking products and services to their customers both inside and outside the Islamic world. The guiding principles for an Islamic financial system are based on a set of rules and laws, communally referred to as Sharia, which serves to guide the economic, social, political, and cultural aspects of Islamic societies. Sharia is created from the rules dictated by the Quran and its practices, and the explanations rendered by the Prophet Muhammad (PBUH). Applying these principles, a similar approach is employed as that used in previous studies, in particular the study of Maali, Casson & Napier (2006). Therefore, a benchmark set of social disclosures suitable to Islamic banks is adopted in this research effort. These are then compared, using a disclosure index approach, the actual social disclosures contained in the annual reports of six Islamic banks (located in UAE) to this benchmark. Furthermore, content analysis is undertaken to measure the volume of social disclosures. The empirical findings suggest that social issues are not of major concern for most Islamic banks in UAE. Islamic banks can be taken to mean those banks that claim to follow Islamic Sharia in their business transactions. Sharia requires transactions to be lawful (halal) and prohibits transactions involving interest and those involving speculation. It also requires Muslims to pay the religious tax Zakah. Based on the Quránic prohibition of charging interest, Islamic banking has moved from a theoretical concept to embrace more than 100 banks operating in 40 countries with multi-billion dollar deposits world-wide, Islamic banking is widely regarded as the fastest growing sector in the Middle Eastern financial services market. An Islamic bank is based on the Islamic faith and must stay within the limits of Islamic law or the sharia in all of its actions and deeds. Four rules govern investment behavior: A. The absence of interest- based (riba) transactions; B. The avoidance of economic activities involving speculation (ghirar) C. The introduction of an Islamic tax, (Zakah); D. The discouragement of goods and services which contradict the value pattern of Islamic law (haram). Islamic banks are structured to retain a clearly differentiated status between shareholder's capital and client's deposits in order to ensure correct profit- sharing according to Islamic law. As in Islamic banks all of their products and services provided by them according to Shariá or Islamic concepts and these concepts can be summed up as: It is the process of providing information designed to discharge social accountability, typically this act would be undertaken by the accountable organization and thus might include information in the annual report, special publications or reports or even socially oriented advertising. In Islamic perspective it is an understanding of the concepts of accountability, social justice and ownership.
Revised Mean Absolute Percentage Errors (Mape) on Errors from Simple Exponential Smoothing Methods for Some Popular Non-Normal Independent Time Series
Dr. Luh Yu (Louie) Ren, University of Houston-Victoria, Sugar Land, TX
Dr. Yong Glasure, University of Houston-Victoria, Sugar Land, TX
Commonly used Mean Absolute Percentage Errors (MAPE), and author’s revised Mean Absolute Percentage Errors (RMAPE) are applied to measure the forecasting accuracy from different Simple Exponential Smoothing Methods for some popular non-normal independent time series. Simulation results show that both MAPE and RMAPE can only provide sensitive forecasting accuracy measurements on Simple Exponential Smoothing Methods when coefficients of variation (c.v.) is smaller than 0.4 or is much greater than 4.0 for those popular non-normal independent time series. The complexity from the ratios of MAPE and RMAPE will mislead researchers on distinguishing the forecasting accuracies from different Simple Exponential Smoothing Methods for those popular non-normal independent time series with moderate c.v.’s. The complexity from the ratios will be released only when the c.v. is very small, or when the c.v. is very large. Therefore, when data are from those non-normal independent time series studied in this paper, the Mean Absolute Deviation (MAD) reveals the validity of the forecasting accuracies from various Simple Exponential Smoothing Methods, but not from MAPE or RMAPE. Mean Absolute Percentage Errors (MAPE),, is a widely used accuracy measurement in forecasting with non-negative actual observations, for instance, on monthly or quarterly sales, tourism forecasts, economic indicators, etc. (e.g., Chen, Bloomfield, Fu (2003), Song, Witt, and Jenson (2003), Swanson, Tayman, and Barr (2000), Wang and Liu (2005), and Weller (1989)) However, in practical forecasts such as forecasts on profits, actual observations may end up with negative values. In this paper, a revised definition for Mean Absolute Percentage Error (RMAPE), , is considered. Many researchers, like Chatfield (1988), believe that the Mean Squared Error (MSE) and the Mean Absolute Deviations (MAD) are not appropriate forecasting accuracy measurements because a few large observations can dominate the measurement. Since the MAPE expresses the forecasting errors from different measurement units into percentage errors on actual observations, it is unit free; therefore, the MAPE is probably the most widely used forecasting accuracy measurement of this kind (Goodwin and Lawton, (1999)). One common criticism of the MAPE is on its existence when the actual observation At is equal to 0. Makridakis (1993) also argued that the MAPE is asymmetric in that “equal errors above the actual value result in a greater Absolute Percentage Error than those below the actual value”. Similarly, Armstrong and Collopy (1992) stated that the MAPE … put a heavier penalty on forecasts that exceed the actual than those that are less than the actual.
An Empirical Study of the Relationship Between Asian and U.S. Stock Markets
Dr. Yi-Wen Chen, Hsing-Wu College, Taiwan
Dr. Jui-Chi Wang, Hsing-Wu College, Taiwan
Mohammed Shaki, National University
The main study wants to focus on the relationship between stock interaction and informative transmission among of nine stock markets in Asian and three stock markets in US. The study tries to use unit root, cointegration test, Error Correction Model, and Granger causality to discuss whether nine Asian stock markets with three US main markets have long-term consistence trend and cointegrative phenomena existence. Meanwhile study Asian markets with US markets have existed investment dispersal effect. Additionally, the study uses impulse response function to detect the change in co-movement relationship between nine Asian markets and American stock markets as exogenous variables change. Finally, the strongest cointegration relation between nine Asian markets and American markets is examined. The data are collected from Informed Winners Plus 2000 by weekly and study period is from first week of January in 1990 to fourth week of June in 2007. Every nation’s economic development is directly impacted by volatility in its stock market. In studying stock market trends, researchers have employed various methods of predicting market performance. Hsiao (1981) used bivariate AR to study the relationship between monetary support and stock prices on the markets of six countries: Australia, Japan, Hong Kong, Singapore, Thailand, and the Philippines. Eun and Shim (1989) used the vector auto-regressive model (VAR) and the Johansen cointegration test to review the relationships of the world’s nine largest exchanges: New York, Tokyo, London, Toronto, Frankfurt, Zurich, Sydney, Hong Kong, and Paris. Fisher and Palasvirta (1990) used cross-spectral analysis to test dynamic market relationships among most of Asia’s 23 exchanges. Since 1990, global economic development has tended toward liberalization, internationalization, and localization. Asian stock markets have grown especially fast, with total trading volumes that nearly rival the U.S and U.K. markets. With the exception of Japan, however, Asia’s stock markets are small to middle size. Each country depends highly on its international trade partners, and are thus easily influenced by fluctuations in their larger trading partners’ economies. The present study focuses on the relationship between stock interaction and information transmission among nine stock markets in Asia and three stock markets in US. The study looks specifically at these questions: 1. Do the stock indices demonstrate a consistent long-term trend? 2. Do the stock indices demonstrate co-integrative phenomena? 3. Do the stock indices demonstrate autoregressive phenomena among each other? 4. Do the stock indices demonstrate evidence of existing in causal relationships? Prior studies have emphasized the relationships among the US, Japanese, and European stock markets. However, those markets are characterized by the strength of their stock systems and the maturity of their transaction processes, while most of Asia’s markets remain in their infancy and their equity systems still lack integrity.
A Note On “New” Selling Strategies: Are They Really New or Are they Merely Recycled Strategies that have been in Use for Thousands of Years?
Dr. Chaim M. Ehrman, Loyola University Chicago, Chicago, IL
The basic assumption in creating new and improved selling strategies is, Newer is Better. However, when a selling strategy has been introduced over 5,000 years ago and is still currently an effective strategy, it should not be classified as “New.” Similarly, it would be most unwise to discard these “old” strategies that have been used successfully for thousands of years in favor of “new” strategies. The term new is incorrect. It is recycled. A typical planning horizon does not go back 5000 years!. For purposes of illustration, 3 Selling Strategies are selected. It will be shown that these strategies have been referenced in the Bible (5,000 years ago) and in the Talmud (2,000 years ago). In this paper, it will be shown that indeed the methodology of these strategies were actually used thousands of years ago. The reader is encouraged to extrapolate these findings to other effective selling strategies that have been used for centuries. The three selling strategies that are selected for purposes of illustration are the following: 1. Balance Theory. 2. AIDA. 3.“Yes, Yes” Strategy also known as Confirming Strategy. In Consumer Behavior, the key focus in buyer behavior is to measure preferences of the decision maker and identify expected purchase behavior. Balance Theory has been introduced by Heider (1958). He used the Balance Theory to introduce triadic relationships. Preference is defined by a positive sign and dislike is defined by a negative the sign. The Triad is the object that may or may not be purchased; the Decision Maker; and Significant Other, i.e. ,a person who has influence on the decision maker’s choice behavior. There are 2 Scenarios: Harmony and Disharmony. When we multiply all signs of the triangle and the sign is positive, there is harmony. If the sign is negative, there is disharmony. When there is Harmony, the Decision Maker essentially gets what s/he wants. When there is disharmony, one cannot predict what the decision maker will do. However, disharmony represents an opportunity for sales. A good message can have direct impact and cause the decision maker to buy a product even though his initial reaction was not to buy. The next paragraph illustrates an application of Balance Theory in a commercial for a Mercedes Benz. A recent commercial for a Mercedes Benz illustrates the use of the Balance Theory in Sales. Please note that the commercial does not say, “Buy a Mercedes Benz!” The commercial introduces disharmony. The husband wants the Mercedes Benz and the wife does not want to purchase this car.
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