The Journal of American Academy of Business, Cambridge is indexed in the CABELL'S, and ULRICH'S DIRECTORIES of Refereed Publications.   The primary goal of the journal will be to provide opportunities for business related academicians and professionals from various business related fields in a global realm to publish their paper in one source. The Journal of American Academy of Business, Cambridge will bring together academicians and professionals from all areas related business fields and related fields to interact with members inside and outside their own particular disciplines. The journal will provide opportunities for publishing researcher's paper as well as providing opportunities to view other's work.  All submissions are subject to a two person blind peer review process.

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

The Virtual University: Is It A Panacea Or A Pandora’s Box?

Z. S. Demirdjian, Ph.D., CA

ABSTRACT

Peter Drucker, the visionary dean of modern management experts, declared that in several decades “The big university campuses will be relics and the residential university is destined to yield to the virtual university.” Increasingly, the virtual university system is being packaged as a panacea. Could it be that the virtual university may prove to be the Pandora’s box in a society where individuals mostly lead isolated life away from parents and extended families? This study first explores the benefits of graduating from the virtual university from both an economic and convenience perspective. Then the researcher evaluates its possible detriments against concepts drawn from social psychology. The fundamental question is whether there is enough evidence that students of online education systems might somehow run the risks of “dehumanization,” endure possible setbacks due to “deficient group experiences,” and be affected by “deprivation dwarfism” in their development toward maturity.

Cross-Cultural Differences In Styles of Negotiation Between North Americans (U.S.) and Chinese

Dr. Lieh-Ching Chang, Taiwan

ABSTRACT

Increasing interdependency of world economies and globalization of enterprises characterizes business in the 21st century. Successful negotiation in this environment requires special attention to cultural differences. This study investigated the question, “Is there a difference in the preference for negotiation styles of subjects based on their culture, the type of conflict situation, and/or the individualism vs. collectivism of their beliefs?”

Internet Integration of Finance Courses

Ted Azarmi, Ph.D., California State University, Long Beach, CA

ABSTRACT

This paper focuses on experiences of a finance faculty in an attempt to use Web-based instructional material to enhance student performance in his classes. The discussion highlights the experiences gained in designing and operating course web pages. The pedagogical issues and teaching methodology relating to student participation, satisfaction and the consequences of decisions regarding the above issues are analyzed. Costs and benefits of Internet course integration are also discussed. Lessons drawn from the above experiences and strategies for future success are explored. The fast pace of development of content on Internet and corresponding increase in access to internet-based material has altered the technological environment of higher education. There are two extreme approaches to dealing with this change in the technological forces that affect higher education. On one extreme, there are those who envision the future dominance of a non-traditional distant learning mode of delivery based on Internet ("the Internet-university approach"). According to this view Internet will replace the campus, exclusively serving as a medium for delivering courses, as a virtual classroom, and as a place for interaction between professors and students (or students with each other).

An Examination of Money Laundering Prevention in the United States of America

Dr. Turan Senguder, Nova Southeastern University, Ft. Lauderdale, FL

ABSTRACT

The main problem with money laundering activities is that no taxes are paid to the government from those illegal financial gains. Most of the time banks are used to make this type of illicit financial gain legitimate because banks do not properly maintain concentration accounts and do not identify beneficial owners of offshore accounts. Therefore, new laws are needed to close loopholes. Highly publicized cases involving money laundering demonstrate the importance of federal supervision and bank vigilance in money laundering areas. While it is impossible to identify every transaction at an institution that is potentially illegal or involves illegally obtained money, financial institutions must take reasonable measures to identify such transactions in order to ensure their own safe and sound operations and their reputations.

Employee Retention: Approaches for Achieving Performance Objectives

Dr. Jean Gordon, Barry University, FL and Dr. Bill Lowe, Fire Department, GA

As business enters the dawn of the new millennium, it has become more complex than at any other point in the history of mankind. In today’s fast paced world of International Business, impossible deadlines, increased costs and high stress levels, more and more corporations find themselves in the position of confronting their biggest challenges yet. There are three questions worried managers ask about their organizations collective futures: Has a new competitor entered the marketplace? Has a new technology found its way onto the market without us knowing about it? What is the fear that shakes today’s corporations to their foundations?

Validation of the Healthy Work Organizations Model

Dr. James Browne, University of Southern Colorado, Pueblo, CO

ABSTRACT

This article extends the research on work-related stress and employee well-being previously published under the rubric of organizational health by validating the Healthy Work Organizations (HWO) model proposed by researchers at the National Institute for Occupational Safety and Health (NIOSH). The HWOs model links three dimensions of organizational characteristics (i.e., management practices, organizational climate, and organizational values) to indicators of organizational health at both the level of the organization and individual employee. This research meaningfully extends prior empirical work on the HWOs model (Sauter, Lim and Murphy, 1996; Lim and Murphy, 1997) by validating construct measures of the model's three dimensions of organizational characteristics and examining the influence of these characteristics on organizational health for three occupational groupings of employees (i.e., maintenance/production, technical/administrative, and managerial/professional). The ability of the HWOs model to link characteristics of healthy organizations with organizational-level and individual-level outcomes is supported and implications for primary stress-prevention strategies are discussed.

Corporate Put Strategy

Ted Azarmi, Ph.D., California State University Long Beach, CA

ABSTRACT

This paper shows that when corporate insiders have information regarding the value of the firm that cannot otherwise be credibly communicated to the market, a corporate put strategy serves as an effective mechanism for conveying that information. In particular writing corporate put options on a firm’s stock emerges as a better strategy that corporate stock repurchases for a firm that has considerable net present value positive projects.

Cross-Cultural Issues in Internet Marketing

Dr. Robert G. Tian, Erskine College, SC

Dr. Charles Emery, Lander University, SC

ABSTRACT

The development of Internet has generated strong impacts on marketing world widely; at the same time the Internet together with many other factors fastens the process of the globalization. To be aware of and sensitive to the cultural differences is a major premise for the success in the world marketplace. This would apply to both traditional marketing and the new electronic based Internet marketing. This paper is an examination of "borderless" on line markets where marketers are able to do the business without boundaries but cross-culturally. It discusses and analyzes several key cross-cultural issues in the Internet marketing imperative from an anthropological perspective. By examining the social-cultural functions in the interactive marketing process the authors tend to construct a cross-cultural approach to Internet marketing.

Political-Economy Considerations when Doing Business in Emerging Economies

Jaime Ortiz, Ph.D., Florida Atlantic University, FL

ABSTRACT

There are basically two government policy instruments that shape business strategy during the corporate expansion in emerging economies. However, political considerations determine, ultimately, the effectiveness of government intervention in translating their impacts into sustainable corporate revenues. Misleading strategies can be adopted by local subsidiaries when price policies and publicly funded technical innovations are assumed exogenous to the policy-decision making process and are treated independently from the political factors that affect them. Consequently, this article provides a theoretical framework for a better understanding of the business performance in emerging markets as a result of collective action exerted by two competing interest groups.

Clustering of Tourist Resorts Visited by GCC Consumers

Dr. Abdulla M. Alhemoud, University of Qatar, Qatar

ABSTRACT

Cluster analysis was applied to results of a survey conducted in three capital GCC cities in 1999 to identify resorts with similar attributes that are often visited by Gulf tourists. By examining the main characteristics of these resorts, it may be possible to target future-marketing strategies more efficiently. Multiple discriminant analysis was used to describe the nature of the differences between clusters and to test these differences for significance. The results suggest that tourist resorts visited by Gulf consumers can be clustered into four groups. The first group includes resorts in Morocco, Tunisia, and South East Asia. The second group comprises Egypt, Lebanon and Turkey. Included in the third group are Spain, UK, France and other European resorts. Finally, Group four included tourist resorts in USA, Australia and South America. Multiple discriminant analysis suggests that GCC tourists select Egypt, Lebanon and Turkey because traveling and living expenses are relatively cheaper for these resorts. Those GCC consumers who select Morocco, Tunisia or South East Asia believe that these resorts offer better entertainment than other resorts. GCC consumers who visit European resorts (England, France, Spain and others) find more comfort in spending their vacations in these resorts than in other places. Finally, multiple discriminant analysis suggests that GCC tourists who visit the USA, Australia or South America do so because of the attractions and adventures.

Using Genetic Algorithms For Multicriterion Resource Allocation Problems In Fuzzy Settings

Dr. Probir Roy, Henry W. Bloch School of Business, University of Missouri, Kansas City, MO

Dr. Rishi Roy, Massachusetts Institute of Technology, Cambridge, MA.

ABSTRACT

The establishment of common, shared goals and efficient allocation of resources are among the most important issues associated with the implementation and administration of resource allocation programs. Oftentimes such programs are multicriterion in nature and articulated in fuzzy terms. For example criterion 1 is more important than criterion 2 and so on. Unfortunately, even the best of normative plans requires a formal process for selecting the 'best' possible course of action in the face of multiple goals and objectives that may be inherently incompatible. In this paper, we suggest that Genetic Algorithms (GA s) provide a very efficient way to solve such problems. This process is a multi-criterion decision-making mechanism based on finding a 'satisficing' solution using simulation and ‘ front-end processing'.

Litigation Contingencies: What Auditors Need To Know, What Lawyers Are Willing To Provide And What Gets Reported

Jeffry R. Haber, Ph. D., Hagan School of Business, Iona College, New Rochelle, NY

ABSTRACT

The financial statements serve a variety of purposes for a multitude of users. Some uses are retrospective, while others infer the future. No matter the use or user, the statements are only as good as the information they contain. Some of the information is factual, having already happened. Some of the information is based on estimates. For most of these estimates, there is a substantial amount of history and experience on which to base the estimate. The financial statements serve a variety of purposes for a multitude of users. Some uses are retrospective, while others infer the future. No matter the use or user, the statements are only as good as the information they contain. Some of the information is factual, having already happened. Some of the information is based on estimates. For most of these estimates, there is a substantial amount of history and experience on which to base the estimate

Foreign Market Entry Strategies in the Formerly Socialist Countries: A Case Study

Dr. Esin Can Mutlu, Yildiz Technical University, Istanbul, Turkey

ABSTRACT

Transition economy is a term used to designate the economic situation of countries who have just got out of a closed economic system trying to adapt to market economy. The transition process, especially in Eastern European countries and the former Soviet Union, have started in the period between 1989-1991 and 26 countries of the region have experienced problems in common, i.e. social and economic problems such as rapid increase in the inflation and unemployment rates, and the inequalities in income distribution. The disintegration of the Soviet Union has marked the beginning of this process, namely the transformation to the market economy. Hence, in the countries of the region mentioned above this transformation is characterized by transition economies. The transition to the market economy resulted in foreign investment flow in these countries. Although they constitute a risky environment, these turbulent markets may be preferred by international firms, because they offer a virgin market where internationals can realize their investments according to their specific strategies.

International Equity Relationship and Global Trade Interdependency

M.T. Vaziri, Ph.D. , California State University, San Bernardino, CA

ABSTRACT

International Trade and global capital flow now account for more than quarter of the US GDP. With an increase in the number and business lines of trans.-national corporations and the continual move towards a global economy, it is important to understand the relationships between trade interdependency among nations and their equity markets. When two or more countries have high trade interdependency, they make themselves more vulnerable economically and financially to the trade and monetary policy of others. Generally, when the ratio of the export-import of the two countries is closed to each other and significantly larger than the combined size of two counties GDP’s, any increase in the ratio increase the level of the intra-industry trade. Such increase also signifies close trade interdependency between two countries with comparable developmental stages. Such increase in intra-industry trade will provide opportunity not only for direct investment, but also manifest the benefits of portfolio investment for the purpose of asset diversification.

Re-Defining Accounting Concepts: A New Definition of Land

Jeffry R. Haber, Ph.D., Hagan School of Business, Iona College, New Rochelle, NY

ABSTRACT

Land is currently classified as a fixed asset. Intangible assets are those assets that do not have physical presence, but nonetheless have value and will be benefit multiple accounting periods. In this paper, a rationale for classifying land as an intangible asset is presented which contrasts current accepted practice. “Land” is described by parameters contained in a deed, not by any physical existence. Dirt, commonly considered the “land,” can be touched, but this is not “land.” The dirt can be removed without changing the “land.” Likewise any other growth that is contained within the deed parameters. Classifying land as an intangible asset would require amortization of the cost, over a period not to exceed the defined accounting limits.

Task-Technology Fit: Brick & Mortar Beware?

Dr. Nora M. Martin*, Nova Southeastern University, Ft. Lauderdale, FL

ABSTRACT

Electronic commerce (ecommerce) takes on many forms and addresses all aspects both internal and external to an organization utilizing information technology. It includes but is not limited to business-to-business transactions, business to end consumer transactions and information gathering by both businesses and consumers. Although initially viewed as a tool to arm consumers with product information, the Internet over the past decade has made the transition from an information tool to a viable shopping alternative. The Internet appears to fit the bill for these consumer-buying preferences in certain areas of the market. The prime areas of growth for Internet purchases are in music, computer equipment and travel (Brannback1997). Understanding the task-technology of the Internet will prove viable for business owners in terms of analyzing their own needs and aspirations with regards to this technology.

An Operational Theory Integrating Cash Discount and Product Pricing Policies

William Lim, Ph.D. and Muhammad Rashid, Ph.D., The University of New Brunswick, Fredericton, NB

ABSTRACT

We present a simple operational theory to integrate the firm’s product pricing decision with its cash discount policy and argue that a firm’s price setting behavior requires simultaneous determination of both a cash discount rate and a pre-discount product price. We show that the cash discount elasticity affects the optimal cash discount rate more significantly while the product price elasticity affects the optimal product price more significantly. We then discuss several practical implications.

Perceived Uncertainty: How Different Environmental Sectors Moderate Strategy-Performance Relationships

Kamalesh Kumar, Ph.D. and Karen Strandholm, Ph.D., The University of Michigan-Dearborn, Dearborn, MI

ABSTRACT

Results of a survey of 159 acute care hospitals were used to test hypotheses relating to the specific ways that the environment modifies the strategy performance relationship. Results indicated that the environment moderates the strength and not the form of the above relationship. Specific environmental conditions that facilitated the success of a differentiation strategy as well as a cost leadership strategy were identified. Implications for hospital administrators are also addressed.

North-South Gender Role Differences in Business

Dr. Joel D. Nicholson and Dr. Yim-Yu Wong, San Francisco State University, San Francisco, CA

ABSTRACT

Brusiness related gender role attitudes across two South American countries (Venezuela and Chile) and one North American country ( the U.S.A.) were examined across a sample of 3,101 managers, professionals and upper division business students. Dorfman and Howell's (1988) revision of Hofstede's (1980) work-related cultural value scale was used to measure masculinity versus femininity. High masculinity scores indicate strong gender role typing in the work place (i.e.; there are certain jobs only men can do). High femininity scores indicate a diminished role of gender in attitudes towards work roles. The data indicated that males in each country held significantly different attitudes towards the role of women in the work force. In addition, the Chilean respondents had stronger gender role typification responses than did the U.S. or Venezuelans. Directions for future studies are given.

Gender and Perception Of Service Quality in the Hotel Industry

Jabulani Ndhlovu and Dr. Turan Senguder, FL

ABSTRACT

Research on gender has been attempted in various disciplines with conflicting results. Success in the implementation of a balanced service quality delivery program in the hotel industry needs a deeper understanding of this subject. This study investigated the question, “Does the perception of service quality in hotels differ by gender?” A total of 241 guests, consisting of 127 (52.7%) males and 114 (47.3%) females at three 5-star hotels in Jamaica was studied. The research design involved collection of data from guest of three 5-star hotel by a questionnaire method to measure customer expectations of service quality. Demographic variables of gender, age and education were recorded. Data analysis was done using ANOVA and t-Test. Using an alpha <0.05 for significance, results indicated that the perception of service quality in hotels did not differ by gender. (t=0.33; df=239; p=0.623). This results present challenges to some hotel managers who believe that the perception of service quality differ by gender. Recommendations for further research include replication of this study with a larger sample. Additionally research is needed on moods states of respondents and a critical analysis of gender related problems affecting guests in hotels.

Analytilitic Framework for Global Transfer-Pricing

Virginia Anne Taylor, Ph.D., NJ

ABSTRACT

Multinational Enterprises can organize their cross- border transactions as international trade, contract modes of coordination, or direct equity investment. All three modes require transfer-pricing decisions. This study is an interdisciplinary examination of the motivation and regulation of transfer pricing activities. As globalization and trade liberalization trends continue to emerge even small firms find themselves doing business in more than one tax jurisdiction (Carter, 1998); they too must learn to navigate the international transfer price jungle. The accounting and economics literature, government documents and business publications are reviewed to uncover the underlying rationale for various government regulations and multinational enterprise price manipulation when reporting of intra-firm transactions. An analytical framework is designed to bring order, structure, and organization to the environmental complexity and thereby improve the effectiveness and optimality of these decisions. Insights from the literature suggest four drivers of transfer pricing for cross-border intra-firm transactions in goods, knowledge, and services.

Linking Organizational Goals and Objectives to Employee Performance: A Quantitative Perspective

Dr. Charles S. Duncan,  Dr. J. D. Selby-Lucas* and Dr. William Swart,  Norfolk, VA

ABSTRACT

Training is a multi-billion dollar industry, and with the advent of the training technology revolution, and the possibilities it provides to business, government, as well as the academic communities, it seems important to determine if the money invested in training by these communities is providing the expected performance on the part of those who are trained. This paper examines training and performance in a quantitative perspective, by discussing the linkages of organizational goals and objectives to employee performance.

THE TOWER: AN EXPERIENTIAL SIMULATION

Dietrich Schaupp, DBA, West Virginia University, Morgantown, WV

Barbara Parsons, Ed.D, Monongalia Health System, Inc., Morgantown, WV

ABSTRACT

"The Tower," a simulation exercise, is the evolutionary end product of work done initially to present the concepts of change, Continuous Quality Improvement (CQI) and empowerment to a group of manufacturing managers. The exercise was designed to help implement an organizational development initiative for a major international corporation. Over time, this exercise has evolved into a "self-contained" demonstration of organizational change that has universal applicability to many management and organizational functions. This experiential activity was originally designed to provide approximately a one-hour activity within a six to eight hour seminar, the purpose of which was to provide an organizational simulation in which strategic and operational decisions are made and assessed.

The Weighted Fair Division Problem

Dr. Somdeb Lahiri, Johannesburg

ABSTRACT

The exact problem we are concerned with in this paper is of the following nature. There are a finite number of producers each equipped with a utility function of the standard variety, which converts an input into a producer specific output. An allocation of the input among the producers is sought which is Pareto efficient i.e. there is no reallocation which increases the output of one producer without decreasing the output of any other. This, as is very widely known, corresponds to maximizing the weighted sum of the utility functions subject to a resource constraint. Alternatively, the weights can be interpreted as exogenously specified prices of the separate outputs and then the problem reduces to maximizing the aggregate revenue subject to a resource constraint. Our analysis focuses on the relations between the optimal solutions and the price and aggregate resource pair. Further, we also study the effect on the former of varying the latter pair.