The American Academy of Business Journal

Vol.  21 * Num.. 1 * September 2015

The Library of Congress, Washington, DC  *  ISSN: 1540 – 7780

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Impact of Sarbanes-Oxley and White-Collar Crime Penalty Enhancement Acts of 2002 on Corporate Fraud Sentencing

Dr. Deanna Oxender Burgess, Associate Professor, Florida Gulf Coast University, FL

Dr. Ara G. Volkan, Eminent Scholar and Moorings Park Chair of Accounting, Florida Gulf Coast University, FL

Alisha Angeloff, Markham Norton Mosteller Wright and Company, PA, Fort Myers, FL

Kelly Dodrill, Markham Norton Mosteller Wright and Company, PA, Fort Myers, FL

James Soldavini, Matthew John Soldavini PA, Naples, FL

Jacqueline Sullivan, McGladrey LLP, Naples, FL



In the years leading up to the Sarbanes-Oxley Act of 2002 (SOX), a number of alleged fraudulent financial reporting cases listed the chief executive officers and/or chief financial officers as accomplices. Spurred on by rising pressure to address these failures, Congress and the House of Representatives voted nearly unanimously to support enactment of SOX. Section 302 of SOX requires chief executive officers and chief financial officers to attest to the fairness of the financial statements they oversee – effectively piercing the corporate shield and holding executives criminally responsible for corporate misdeeds. Companion legislation enacted at the same time, The White-Collar Crime Penalty Enhancement Act, extended the maximum jail-sentences for executives tried for these frauds in the federal courts. This research describes the sentencing outcomes of executives associated with these frauds in the pre-SOX and post-SOX eras, and examines whether the legislation resulted in stiffer penalties. Findings indicate that most frauds end in plea bargains, with fines paid and no admission of guilt. In cases where trials are held, most executives are sentenced to a small portion of the maximum jail-time allowed. Surprisingly, the fraction of actual jail time awarded compared to the maximum sentence permitted under the law decreased post-SOX. Executives committing fraud post-SOX are walking away with smaller portions of the maximum jail time permitted. This finding carries the unintended consequence of failing to hold executives accountable as prescribed by the SOX legislation. In addition, most defendants pay no restitution if they are sent to jail. This paper concludes that the threat of investigation and prosecution under SOX may not deter corporate fraud and unlawful earnings management due to the leniency shown by the courts.


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The Diameter and Company Profitability: An Experiment in Network Evolution

Dr. Tal Ben-Zvi, Stevens Institute of Technology, Hoboken, NJ

Dr. Paul Rohmeyer, Embry-Riddle Aeronautical University, Daytona Beach, FL

Dr. Donald N. Lombardi, Stevens Institute of Technology, Hoboken, NJ



This study examines how business networks evolve over time and impact company profitability. Through simulation, we show that the impact of network evolution on overall profitability is mediated by the network’s diameter. Our analysis indicates that as a network grows, the network’s diameter increases in size. However, as the network evolves beyond a certain point, the diameter stops increasing and starts to decline, following an inverted U-shaped curve. We also demonstrate how a well-connected industry network with a small diameter is correlated with higher company profitability and vice versa – a looser network with a larger diameter produces lower profitability for companies. The results uncover theoretical and practical managerial insights and present a novel approach of conceptualizing businesses within industries. A key question in social networks and alliances studies is how networks in which companies are embedded shape companies’ behavior and conduct, and affect their profitability over time (see, e.g., Goerzen, 2005; Gulati et al., 2000; Hite and Hesterly, 2001; Soda, 2011). Contrary to studies focusing on internal factors that impact companies, this paper discusses the role of network theory in explaining company profitability in a global business environment. We maintain that when companies interact with congruence of interests, when they cooperate with each other to reach a higher value creation while struggling to achieve a competitive advantage, they strive to better positioning within their market. Our main argument is that paying close attention to partnerships and alliances, structuring them into a network that grants access to information, goods, services and capabilities, allow for more business opportunities to companies, which in turn, are translated into higher profits. One way to deepen understanding from this vantage is to investigate the evolution of company networks over time (Chassagnon, 2013).


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HR Challenges for Safeguarding Employee Privacy Rights in The Private Sector Workplace

Dr. Bernadette Baum, National University, San Diego, CA

Dr. Jennifer M. Davis, University of New Hampshire School of Law, Concord, NH



Historically, courts have set down precedent dashing any expectation of privacy employees may enjoy in the private sector workplace.  Despite the absence of strong employee privacy rights laws, however, employers do not always have the right to violate fundamental privacy values.  With recent trends indicating a shift toward laws with broader protections for employee privacy rights, Human Resource managers are tasked with creating and implementing fair policies involving workplace privacy. Employers risk engaging in privacy violations concerning matters related to searches, access to private information, and third-party disclosures. Legitimate reasons may exist for employers to monitor employees or conduct searches.  Reasons range from managing the productivity levels of employees to maintaining a safe environment for all employees in the workplace.  Likewise, business necessity dictates an employer’s need to obtain certain personal information regarding employees and applicants.  Because an employer’s need to know is somewhat broad, HR professionals face challenges in creating policies that strike a balance between how much information is appropriate to obtain and the proper ways in which to safeguard the information.  Potential problems arise when employers utilize the services of outside agencies to maintain company personnel records.  Reportedly, such data is often shared with third parties and other entities without the knowledge of the employee, or even the employer.  Similarly, background checks conducted on prospective employees by outside contractors often reveal inaccurate information detrimental to job applicants, thereby exposing employers to liability should a lawsuit arise as a result of the dissemination of inaccurate information.  


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Does the Fire Station have a Glass Ceiling? Perceptions of Female Firefighters

Dr. John Griffith, Embry-Riddle Aeronautical University

Dr. James Schultz, Embry-Riddle Aeronautical University

Dr. Ronald Wakeham, Embry-Riddle Aeronautical University

Dr. Marian Schultz, The University of West Florida, FL



This research examined perceptions of 338 female firefighters in the United States. Specifically, respondents answered questions on if they would pursue a career in the fire service again, if they would advise a daughter or family member to join and if they were treated as equals by male firefighters. Additionally, female firefighters were asked if they achieved more acceptance from males based on length of time on the job and if physical requirements unnecessarily limited female firefighters. A significant majority of female firefighters indicated that they enjoyed their careers, would advise a daughter or family member to join and that the longer they were on the job, the more acceptance they gained from male firefighters. Significantly more female firefighters disagreed that physical requirements to be a successful firefighter limited females.  A significant majority of retired female firefighters disagreed that they were treated as equals by male counterparts. Recommendations included repeating this survey in three to five years and studying sexual harassment in the fire service.  Future researchers should also examine mentorship of women and minorities, and the acceptance of lesbian, gay, bisexual and transgender (LGBT) firefighters in the fire service. Women comprised 47.2% of the total U.S. civilian workforce in 2010. As of the 2010 census, the United States had 301,000 paid firefighters, 3.6% of whom are women.  That translates to approximately 10,800 female fighters (U.S. Census, 2012).  Organizations such as the International Association of Women in Fire and Emergency Services as well as researchers producing studies at the National Fire Academy have questioned why the number of female firefighters appears to be so low.  Some have looked into the idea that many women do not seem to apply to be firefighters and focused attention on recruiting efforts (Kronenberger, 2009; Ross, 2011).


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Ireland Maintains Business Allure

Dennis C. Stovall, Grand Valley State University, Grand Rapids, Michigan



Businesses in the United States have continued to embrace the many positive aspects of locating in Ireland.  The two countries have many shared values, with a majority speaking the same language.  In addition, the corporate tax rate of 12.5 percent in Ireland has come to be one of the greatest benefits identified by investors.  Ireland also has a willing, flexible, and productive workforce, and one of the highest levels of economic freedom in the world.  Irish officials have created organizations solely for the purpose of making the transition into the Irish economy as effortless as possible for foreign companies.  With all of this and more, Ireland’s business allure has evolved and caught the attention of countless corporations including Amgen and Microsoft.  This shift is the cause of some concern for the American government as a great amount of tax revenue leaves with the companies. Rising numbers of Irish companies also are attempting to break into the American economy, however, they do not have the same resources or benefits that the American businesses receive when expanding into Ireland.  Irish companies face a unique set of obstacles.  Some Irish companies choose to establish contacts to spread the word about their business.  Others utilize trade shows to make themselves known.  But each comes with some form of the same goal: to become a grand success and a leader in its industry in America. As the benefits of becoming corporately involved in the Irish economy increase, so too does the number of U.S. companies placing or expanding their business into Ireland.  The business relationship between the United States and Ireland dramatically increased in 1969 when John A. Mulcahy, a one-third shareholder of Pfizer Inc., convinced Pfizer to move some of its business to his home country of Ireland.  Cork, Ireland, became the city of choice for a new citric acid plant built by the drug company.  Naturally, other companies looked into the reasoning behind this new venture and discovered many attractive qualities of the European country. 


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FDI and Its Impact on Developing Markets

Bryan Herriford, Sam Houston State University, TX

Dr. Balasundram Maniam, Sam Houston State University, TX

Dr. Hadley Leavell, Sam Houston State University, TX



Foreign Direct Investment (FDI) has played a crucial role in the growth of the economies in many developing countries.  With FDI monies, a country may be able to make the transition leap to a developed nation.  As companies determine where to place their resources, they must consider the effects these investments will make on the host country.  Host countries must learn what investors are looking for and ensure their country is receptive to the change these investments will make.  This study looks at the increase in FDI in many developing countries over the last twenty years and the effects these investment have had on the host country.  First this study looks at the positive reforms that host nations enact in order to attract new foreign investment.  It will then discuss different types of spillover effects FDI has on the domestic market.  It concludes with a look at possible negative effects to the host economy and what host nations can do to limit those effects. Foreign direct investment has been one of the largest factors in the growth of developing nations over the last decade.  Many countries with a low gross domestic product (GDP) have seen the opportunities that additional capital from foreign investment could bring to their countries and how fast they could grow their economies with outside help.  The large impact foreign investment can have on a country’s economy has heavily influenced political leaders in these countries.  New laws and policies are reconsidered in light of the ramifications they would have on their desirability to foreign investors. Many companies have seen the potential for very large returns by investing in developing nations where investment was never possible before.  With the chance to expand business production and products into untouched markets, multinational companies are investing large sums of capital in many developing economies to lower their production costs and gain a larger market share in the world economy. 


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Organizational Creativity Capability and Firm Performance: Evidence From Software Businesses in Thailand

Wadsana Charunsrichotikomjorn, Mahasarakham University, Thailand

Dr. Phaprukbaramee Ussahawanitchakit, Mahasarakham University, Thailand

Dr. Prathanporn Jhundra-Indra, Mahasarakham University, Thailand



This study aims to investigate the relationship between organizational creativity capability and firm performance via the mediating role of business practice effectiveness, organizational innovation success, and organizational excellence efficiency. The results were derived from a survey of 104 software businesses in Thailand, which CEOs or managing partners are the key informant. The results found that new management method and valuable human resource development have significant influences with all of two organizational consequences; business practice effectiveness, and organizational innovation success. Whereas useful operational control establishment has an insufficient influence to yield significantly expected outcomes. The contributions of theoretical and managerial, conclusion and suggestions for future research are also discussed. Keywords: Organizational creativity capability, New management method, Valuable human resource development, Novel oganizational culture formation, Useful operational control establishment, Original performance evaluation system, Business practice effectiveness, Organizational innovation success, Organizational excellence efficiency, Executive proactive vision, Strategic renewal mindset, Corporate resource readiness,  Business environment complexity. Under the severe competitive business environment such as economic, technology and culture, those firms generate rapid responses in order to survive and succeed. In an era of high-technology changes, firms encounter globalization and rapid changing in business environment, many firms have been affected by macro environmental factors including the threat of new entrants and established competitors, substitute products, bargaining power of suppliers and customers (Porter, 1979). These factors have a pressure on firm characteristics. The rapid changes in the external environment provide advantageous or disadvantageous outcomes to the firms.


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Management As A Moderating Variable in the Causes and Effects of Construction Delays

Dr. Miemie Struwig, Professor, Nelson Mandela Metropolitan University, South Africa

Gerrit Smit, Nelson Mandela Metropolitan University, South Africa



The construction industry has been exhaustively studied, both internationally and locally, in the area of delays in projects. A list of possible delays has evolved over the past 10 years that covers all major delays in this industry. Although the causes and effects of projects delays are clear, little attention has been given to what factors can moderate the influence of the delays. This research focuses on the development of a proposed model of causes, effects, and moderating variables of project delays. The intention is to use the proposed model to identify and confirm the moderating variables (management activities) to mitigate construction delays. The causes and effects of construction delays are well documented and researched (see Motaleb & Kishk, 2010; Sambasivan & Soon, 2007; Assaf & Al-Heijji, 2006). Causes of construction delays are factors or events that occur before and during the construction process that will affect the time to complete, and the cost and quality of completing, a project. Effects of construction delays are the consequences when the causes of delays are not identified and worked on effectively. Although most studies on construction delays and their effects proposed solutions or remedies, their effectiveness has never been tested. Very little research focuses on the moderating variables that will influence the effects of delays due to the various factors causing them. Thus, based on the surveys of construction delays and their effects, a proposed model showing the effects of delays will be developed. This model will include the suggested moderating variables that can assist to manage construction delays, and that can be tested empirically.


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Organizational Management Flexibility and Goal Achievement of Electrical

Appliance and Electronic Parts Businesses in Thailand

Dararat Thatrak, Mahasarakham University, Thailand

Dr. Karun Pratoom, Mahasarakham University, Thailand

Dr. Pakorn Sujchaphong, Mahasarakham University, Thailand



The objective of this research is to examine the relationships between organizational management flexibility and goal achievement via organizational innovation, value creation, and firm competitiveness as mediating variables. Creative organizational culture, organizational learning, change management competency, and environmental dynamism are the antecedents of organizational management flexibility. The data was collected by a mail questionnaire survey from electrical appliance and electronic parts businesses in Thailand. The model used in this research was explained by using the dynamic capability theory and the contingency theory. The sample was 128 electrical appliance and electronic parts businesses in Thailand. The statistical results revealed that organizational management flexibility had a significant positive effect on organizational innovation, value creation, firm competitiveness, and goal achievement. Besides, the consequences of organizational innovation had a significant positive effect on value creation and goal achievement. Value creation and firm competitiveness had a positive effect on goal achievement. Finally, the antecedent constructs, namely, creative organizational culture, organizational learning, change management competency, and environmental dynamism partially affected organizational management flexibility. Some theoretical and managerial contributions, a conclusion, and suggestions for future research are also discussed. In a globalized world, the uncertainty of the environment is considered as the key factors that organizations need to focus on the business operation because it is a factor that may cause the operation of the organization not success.


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Sports Sponsorship: An Effective Tool for Marketing Strategies

Dr. Hyun Sook Lee, National Autonomous University of Mexico, Mexico City



Companies adopt sponsorship to capture or target the huge consumer market, communicating their brand information and image, and informing consumers about the company and its offerings and building a long term relationship with the consumer (Stipp, 1998; Simmons & L.Becker-Olsen, 2006; Tanvir et al., 2012).  In particular, sponsorship for mega-sports events such as the World Cup, Olympic Games, Formula 1 racing etc. has become the marketing tool of choice for corporations seeking brand impact in the heart of consumers both globally and nationally.  In terms of totally or partially banned TV advertising on products like tobacco and alcoholic drinks, mega-sports sponsorships  present great opportunities to access their target markets. Sport plays one of the most significant roles in everyday life of people around the world, whether those actively participating in it or those who are just spectators and supporters.  In most western countries, this part of social life is widely reported on and reflected by the mass media (Lee, 2013).  The same phenomena might be an opportunity for the companies that are looking to raise their current and/or potential consumers´ awareness of their products/services, including certain products prohibited for advertising through mass media. In the meanwhile, salient/prominent athletes and/or sports teams tend to earn large sums paid by their sponsors, resulting in mutual benefits to all.  For this paper, the author intends to define sponsorship as well as sports sponsorship in particular.  She also reports trends of sports sponsorship, especially the most sponsored sports, a background of mega-sports events  and principal sports sponsors. 


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Service Innovation Capability of Tour Operator Businesses in Thailand

Sakkasem Panalad, Mahasarakham University, Thailand

Dr. Phaprukbaramee Ussahawanitchakit, Mahasarakham University, Thailand

Dr. Nantana Ooncharoen, Mahasarakham University, Thailand



This research aims at investigating the effect of service innovation capability on performance via competitiveness in the new model. Whereas, customer force, competitive diversity and technology become the antecedents of service innovation capability. Moreover, the moderating effects are executive vision and learning culture. The key research question is how service innovation capability affects performance. Data are collected from travel agency in Thailand. The regression analysis is employed to examine all hypotheses. The results indicate that some dimension of service innovation capability namely innovativeness, alertness to create, and research and development awareness have a positive effect on competitiveness. Moreover, competitiveness is effective on performance. A potential discussion of the results is evidently implemented in this research. Contribution and conclusion of the research are presented accordingly. The atmosphere of global economy, business environment is rapidly change in the area of customer demand, competitions, technologies, regulations, and economic group (Tingsapat, 2006). As a result of a intense competition to both domestic and international markets. Firm need to make adjustments or try to find ways to deal more effectively o firm that have the potential to compete and more competitive and success of the business performance. Therefore, firms need to focus on various firm capabilities. Especially, capability service of innovation has become important factor of the competitive advantage and success of the business competitiveness which effect to its performance. As previous research found that innovation establishment is a significant factor of the business competitiveness which effect to its performance.


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Service Perceptions of Social Networking Sites: A Comparison of Saudi and Indian Users

Dr. Yasser Mahfooz, King Saud University, Riyadh, Kingdom of Saudi Arabia



The objective of this paper is to compare perceptions of service quality of social networking sites (SNS) among Saudi and Indian users. The data was collected online using convenience samples technique. The respondents were students who visit social networking sites (181 in Saudi Arabia and 128 in India). The service quality of social networking sites was measured using four dimensions- ease of use, privacy, design, and functionality. Data was analyzed using exploratory factor analysis, t-test and regression analysis. Respondents in both countries reported high levels of perceived service quality for social networking sites. However, Saudi respondents reported a higher perceived service quality than Indians on all dimensions, and all individual items. The social networking sites should recognize the importance of design and functionality in service delivery, by implementing appropriate customer-oriented strategies. Despite the large number of studies on social networking sites, very few studies compare e-service quality perceptions among different countries. The present study does so between users in two countries with different socio-cultural environments - Saudi Arabia and India. A traditional service is an intangible offering based on performance or efforts (Berry, 1980), whereas electronic service or e-service can only be delivered through mediation of information technology. E-service can be delivered alone or with e-commerce, either unconditionally or with a service contract (Rowley, 2006). Researchers have been of the view that e-service is an information service (Rust & Lemon, 2001; Rowley, 2006) and has significance in providing better experience to consumers through interactive flow of information (Santos, 2003).


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Internal Audit Transparency and Firm Goal Achievement: An Investigation of Financial Businesses in Thailand

Varipin Mongkolsamai, Mahasarakham University, Thailand

Dr. Phaprukbaramee Ussahawanitchakit, Mahasarakham University, Thailand

Dr. Sutana Boonlua, Mahasarakham University, Thailand



The main objective of this study is to examine the effects of internal audit transparency of Thailand’s financial business firms’ goal achievement. 81 firms are the sample of the study. The results reveal that internal audit transparency is positively related to internal audit reliability, internal audit quality, internal audit usefulness, information value, and best decision making.  Internal audit quality has a significant positive effect on internal audit reliability and internal audit usefulness while information value results in a significant positive influence on firm goal achievement as well as best decision making, which also poses a significant positive effect on firm goal achievement. Besides, internal audit reliability and internal audit usefulness are positively related to information value whereas the information value itself displays a significant positive effect on best decision making. In terms of the antecedents of internal audit transparency, the findings assert that the internal audit ethics and regulation force pose a significant positive impact on internal audit transparency. Furthermore, future research could be conducted on different samples and on a larger scale to widen the generalizability of its findings.  For many years, the political unrest in Thailand has affected the economy and its investors’ confidence, which results in stock market bubbles or inefficient capital markets, and damages the economy (Penman, 2003). This is considered important for the reason that the stock market is a national treasure which can influence the economy success (Sutton, 2002). Since the market is no longer limited by time zone boundaries; businesses, therefore, are conducted simultaneously in various countries with many people worldwide. There have been numerous reforms undertaken to restore users’ confidence, including the internal auditor’s role outstands to reestablish the user’s confidence (Octavia, 2013; James, 2003).


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Cost of Capital and Price of Banking Intermediation in Croatia

Dr. Alen Stojanovic, Professor, University of Zagreb, Croatia

Dr. Vlado Leko, Professor, University of Zagreb, Croatia

Zeljko Menalo, University of Zagreb, Croatia



From the very beginning, banks were considered to be the most important financial institutions in every financial system. In a certain aspect, they are treated as the “public good”. It is, therefore, understandable that the entire public, not just regulatory institutions, is interested in their safety and stability. This concern has been reflected differently, but most obviously seen in a slow and constant increase in bank capital requirements over the past few decades. Unfortunately, there has not been an agreement between the banks, regulatory institutions and scientific community on the important issues of effectiveness and sustainability of new capital rules. This paper will point to the complexity of increase in bank capital requirements, as well as mechanism of determining the price of bank intermediation and costs distribution of commercial banks funding, in order to contribute to very limited comprehension of long –term consequences in growth of bank capital requirements.  As it is generally accepted, tightened capital standards enforced upon banks by implementation of Basel III have drawn attention of not just regulatory and supervisory institutions, but also of wide scientific community. Discussions on potential effects of tightened capital standards include not just the issues of bank safety and stability of banking and the entire financial system, but also potential consequences of increasing capital requirements on the cost of bank intermediation, loan activity volume and, consequently, the overall economic activity. The scientific and expert literature differs two prevailing, but often completely opposite views on the matter.


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Audit Practice Transparency and Audit Survival: An Empirical Investigation of Certified

Public Accountants (CPAs) in Thailand

Usaporn Ponphunga, Mahasarakham University, Thailand

Dr. Prathanporn Jhundra-indra, Mahasarakham University, Thailand

Dr. Kesinee Muenthaisong, Mahasarakham University, Thailand



This paper aims to examine the relationship among the effects of audit practice transparency and audit survival. The components, the consequences of audit practice transparency are included audit quality, audit credibility, financial information reliability, information value, stakeholder acceptance, and audit survival. For the relationships among audit practice transparency and its consequences can explain by the capability theory. The Certified Public Accountants (CPAs) in Thailand were selected as the sample. A questionnaire is used as the instrument for data collection and an auditor is the key informant. The data were received and usable 376 auditors of the sample. The effective response rate was 21.41%. The Ordinary Least Squares (OLS) regression analysis is methods for testing the hypotheses. The results indicate that audit practice transparency has significant positive impacts on audit quality, audit credibility, financial information reliability, information value, stakeholder acceptance, and audit survival. Similarly, audit quality has significant positive impacts on audit credibility, financial information reliability, information value, and stakeholder acceptance. Likewise, audit credibility and financial information reliability have significant positive impacts on information value, and stakeholder acceptance. Moreover, Information values have significant positive impacts on stakeholder acceptance, and audit survival. Similarly, stakeholder acceptance has significant positive effects on audit survival. Future research is suggestion to seek other consequence variables of audit practice transparency for literature review. Theoretical and managerial contributions are explicitly provided.


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Exploring Business Development

Haifa Al Wawi, A’amal Holding Company, Kuwait



Business development has become an important tool to ensure current business growth, sustenance and future survival. However, the term “business development” is interpreted differently, and its theoretical foundations are still underdeveloped. The present study explores the business development function as currently being practiced in the corporate world to clarify the concept and to discover the main business development practices by investigating the duties and responsibilities of business developers in various commercial settings, as well as the skills and experience necessary to become a successful business developer. At present, business development (the abbreviation “biz dev” or the acronym BD are used by most professionals) refers to corporate entities’ and government agencies’ assisted development efforts for a particular area, groups of people or SMEs. This paper’s focus is on the corporate side of the business development.   The popularity of the term ‘business development’ has recently increased. A search on any popular Internet search engine for ‘business development’ may now result in millions of results. Despite its increased use in the corporate world during the past few years, relatively less academic research has been done on business development. This is evident from the fact that management books not only lack its definition but also exclude business development as a business function. Similarly, companies also differ in its interpretation. Even some progressive high tech-firms claim their core competence is business development; however, they are unable to define it except that to say that it has some specific tasks and procedures. Thus, business development represents an important but unacknowledged practice in management theory and the corporate world. This paper’s objective is to understand the concept of business development, its organization in companies, the main tasks of business development functions and the skills of business developers.


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Service Creativity Strategy and Business Performance: Empirical Investigation of

Boutique Hotel Businesses in Thailand

Anantaporn Puttassa, Mahasarakham University, Thailand

Dr. Prathanporn Jhundra-indra, Mahasarakham University, Thailand

Dr. Saranya Raksong, Mahasarakham University, Thailand



Recent research has indicated that service creativity strategy is hot issues, which a better explanation between firm creativity and firm strategy. Thus, this study addresses the main research question is how the relationship between service creativity strategy and business performance is. Based on two theories comprise of the Resource-Advantage Theory(R-A Theory) and Contingency Theory that are supported in this model. The purpose of this research is to investigate the relationship among each dimension of service creativity strategy, its consequences, and antecedents. Regression analysis is used for analyzes the data from 75 boutique hotel businesses in Thailand. The results show that service creativity strategy positively influences on its consequences and antecedents. Especially, the proactive service encouragement strongly influences on business performance. Finally, contributions and future directions are included.  Currently, the globalization of technology rapidly changes and has an influence on the organization's adaptation for increasing competitive advantage, efficiency, and effectiveness. Thus, the firms have creative ability to develop new service will succeed in competitive advantage, which is the basis for the firm competency to survive and grow in the future. Hence, creative strategy is the core of the organization’s survival and competitive advantage that brings firms to achieving sustainable competitive advantage (Haward, Murphy, and Lorenz, 2008). Specially, the influence of the global competitive environment pressured the executive need to increase a potential of business strategies (Porter, 1979). According to Dewett and Gruys (2007) suggested that the firm understanding of creative strategy is the foundation of innovation development.


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Social Marketing Strategy and Sustainable Marketing Success: An Empirical Investigation of ISO 14001

Manufacturing Businesses in Thailand

Chotika Chimngamsert, Mahasarakham University, Thailand

Dr. Prathanporn Jhundra-indra, Mahasarakham University, Thailand

Dr. Saranya Raksong, Mahasarakham University, Thailand



Societal marketing strategy has been viewed as one of key components that influence marketing outcomes. Drawing on Stakeholder Theory, the objective of the study is to investigate the relationships among societal marketing strategy and its consequences; brand image, product reputation, customer satisfaction, superior market position, customer loyalty, and sustainable marketing success, and also to explore the moderating effects of firm-stakeholder relationship. The result were derived from a survey of 95 ISO manufacturing businesses in Thailand provided the interesting points of the societal marketing strategy which was directly associated with marketing success. Ordinary least square (OLS) regression analysis is used the hypothesized relationships among variables. Results suggest that societal marketing strategy is positively related to its consequences. Brand image is positively related to superior market position. Product reputation is positively related to superior market position and customer loyalty. Similarly, customer satisfaction is positively related to customer loyalty. Firm-stakeholder relationship plays a moderating role between societal marketing strategy and its consequences are partially supported the hypothesis. Moreover, theoretical and managerial contributions, conclusion, and suggestions for future research are also interesting to be discussed. During the 21st century, there’s been a trend towards a global increase in the social and environmental responsibility. Current situations has emerged the effects and problems such as air and water pollution, and health problems such as cancer and heart disease (Crane and Desmond, 2002; Sirgy et al., 2012). Prior research has indicated that environmental and social effects may impede business development and long-term success (Timbur, 2010). Many empirical researches have been conducted on the social responsibility of businesses.


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Assessing the Consumers’ Propensity for Online Shopping: A Demographic Perspective

Dr. Mahmoud Abdel Hamid Saleh, King Saud University, Saudi Arabia



This paper is aimed at achieving two goals: first, to identify consumers’ propensity for online shopping, and second, to investigate the association of gender, income, age, and education with consumers’ propensity for online shopping. The study was conducted on a sample of 293 consumers in Saudi-Arabian market. Data were collected through a questionnaire contained four measures of consumers’ propensity for online shopping. The findings of the study outlined that 66% of the respondents preferred traditional retail-store shopping to online shopping. The findings also revealed insignificant differences in consumers’ propensity for online shopping between males and females and between the various levels of age. Conversely, significant differences were found between the levels of income and education for the higher levels. Based on the research findings, marketers are recommended to pay more attention to consumers who prefer online shopping to traditional shopping, and at the same time, work diligently to stimulate consumers who prefer traditional shopping in retail stores; removing their uncertainty and perceived risks associated with online shopping transactions. With the development of the Internet usage during the last two decades, Online shopping has grown up rapidly to be a major activity for numerous consumers all over the world. The amount of sales on the Internet increased globally to reach about 348.6 billion dollars in 2009 (Keisidou et al., 2011) and was expected to reach 778.6 billion dollars in 2014 (IMAP retail report, 2010). The reason for online shopping growth may be explained in terms of the advantages the Internet provided to both the sellers and the buyers. It allowed business organizations an easy access to enter the global markets effectively at a low cost.


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Human Resources Management Model oriented to the Sustainability of Family Businesses -

A proposal from the Comparison Between Italy and Colombia

Orlando E. Contreras, Universidad Industrial de Santander, Bucaramanga, Colombia



There is no doubt that dynamics of productive sector in Europe, especially in Italy, have been constructed through a genuine and collaborative work, which has its deepest roots in the gentle spirit of its people and in the influence of families, which in its role of the relational core of society, have over the decision process of human resource management in organizations. Unfortunately, this reality has not been taking place in other latitudes, such as Latin American countries, where despite the potential of its resources and talent of its people, phenomena such as the formation of long-term business alliances based on overall goals (environmental, social and financial) is the exception rather than the rule. This paper makes a previous analysis and formulates a proposal in the line of making an integral comparison between Italy and Colombia, in terms of societies, leadership styles, but especially in human resource management practices in order to create a managerial model oriented by sustainability principles for Colombian family businesses, which would be developed in further research process. The broadly shown interest in business-environment-related topics raises the need to be permanently looking for research alternatives in the area of management and business administration. This is carried out in order to achieve a methodological contribution to practices, which are consistent with the objectives of harmony for such relationship. Nevertheless, there has been a tendency to focus on the impact produced by the actions of companies on the environment: Clean Production, Sustainable Development, Zero Emission as well as the recurrent claims from several sectors towards Ecological Philanthropy.


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Exploring Perceived Product Knowledge, Credibility, and Attractiveness of Celebrity

Endorsers on Influencing Teen Purchase Intentions

Dr. Scarlett C. Wesley, University of Kentucky, KY

Dr. Minyoung Lee, University of Kentucky, KY

Behnoosh Ghaani Farashahi, University of Kentucky, KY

Laura ParksUniversity of Kentucky, KY



Retailers and branded products use celebrity endorsers in their advertisements as a way to entice shoppers to purchase their products. The celebrity attributes of product knowledge, credibility, and attractiveness can determine a celebrity’s effectiveness as an endorser. Teens are a group that is heavily influenced by celebrities because they emulate celebrities’ actions and personalities to better fit in with their peers. For this study, surveys of 246 teens were collected asking them to rate endorsers’ product knowledge, credibility, and attractiveness based on their intention to buy an advertised product.  Celebrity endorsers were found to influence teens’ purchasing decisions.  Product knowledge, credibility, and attractiveness all have an effect on teens purchasing intentions with endorser’s product knowledge and credibility have the largest influence on whether they purchased a product.  Retailers and branded products use celebrity endorsers in promotions and advertisements as a way to entice shoppers to purchase their products (Keel, 2012; McCracken, 1989). A celebrity endorser is “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” (McCracken, 1989, p. 187). One quarter of American commercials and advertisements use celebrity endorsements, and those endorsers have a great impact on product sales because celebrities create a higher instance of recall and attention (MarketWatch, 2006; Shimp, 2000) for a product over non-endorsed items. One quarter of all advertisements feature celebrities as an endorser of a product or brand (Shimp, 2000), indicating the validity of this strategy as a means of persuasive communication (Biswas, Hussain, & O’Donnell , 2009). 


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An Examination of the Impact of Social Isolation in the Workplace

Dr. Charles Chekwa, Troy University, FL

Eugene Thomas, Jr., Dillard University, LA

Dr. Akins Ogungbure, Troy University, GA

Dr. Conrad Francis, Texas Tech University, TX



“Social isolation” and “loneliness” can be viewed as related or causational, one to the other. However, the authors recognize a distinct difference. The authors believe that while loneliness draws more association with the immeasurable and internal emotion one has for dependencies on others, social isolation represents the manageable external variables that affect, and motivate or demotivate, individual behavior. Therefore, the authors seek to delve into social isolation within the workplace and, more particularly, where technology has supplanted human interaction. In doing so, the authors seek to answer the questions: What is social isolation?  How does social isolation affect employees within the workplace? What is the residual impact of social isolation on employers?  Recently, a bank television advertisement aired displaying customers having an objectionable experience with a non-human approach to customer service. The underlying idea was the importance of human interaction and the consequences of its absence. The authors noted the implication or suggestion that technology in the form of self-service substitutes can be a poor replacement for “oh-so-valuable” social interactions. Despite this, and independent of it, among business models today, the authors note that technology self-service models have become more prominent; call any service line and you will surely be greeted by an automated call distributor (ACD).  Companies view this as a means for businesses to “utilize web-based Self Service Technologies (SSTs) to minimize costs, provide readily available resources as needed, and reduce latency while simultaneously serving multiple customers”  (Boyette, Thomas, & Rankin, 2009). While the authors can accept that self-service does give some remedy to the customer and business alike, the objection unfolding, as illustrated by the aforementioned advertisement, is that removal of human interaction may not be a workable alternative. 


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