BEST Scholarly Journals


Most Trusted.  Most Cited.  Most Read.

The Journal of American Academy of Business, Cambridge

Vol.  4 * Num.. 1 & 2 * March  2004

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

All submissions are subject to a double blind peer review process.


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


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:; Website,  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.

Copyright 2000-2016. All Rights Reserved

Urban Sprawl: Myth or Reality?

 Dr. Tyler Yu, Dr. Victoria Johnson and Dr. Miranda Zhang, Mercer University, Atlanta, GA



Urban sprawl has become a symbol for a number of social and economic maladies plaguing the public and private sectors, as well as a target for those wishing to cure those contemporary ills.  Perspectives differ on whether it should be contained, encouraged or ignored.  This paper discusses differing viewpoints and consequences of the ancient and ubiquitous conflict between growth and development and conservation and community. In the United States, suburbanization and its corollary, urban sprawl, have increased dramatically and exponentially over the past twenty years.    To some observers, this transition has created a monster, which threatens the very heart of the legendary American dream.  As the country began its transition from an agricultural, rural economy to an industrialized, urban one, it was confronted with the inevitable social and economic challenges that occur with concentrated urbanization.  Historically, the beliefs that growth is a social good, and that bigger is better, have been central tenants of the American perspective. Undoubtedly, growth brings with it a concomitant increase in jobs, a thriving economy, and a larger tax base.  Theoretically, it also creates a more equitable distribution of benefits and burdens.  Consequently, as more affluence is obtained, citizens migrate out of a central city environment to outlying suburbs in an attempt to improve their quality of life.   It is then assumed that the good life will necessarily follow.   That is, the new environment will provide safety, clean air, privacy, pristine natural areas, and better educational systems.   However, in the waning years of the 20th century, this assumption was met with increasing skepticism.  And at the dawn of the 21st century, this skepticism has become a mainstream political concern, resulting in a frontal assault on the cherished beliefs. Empirical data, as well as anecdotal reports, describe too many cars for too few roads; increased pollution; failing schools; increased crime, and loss of the natural environment.   The entrenched belief in the paradigm of continuous growth and constant acquisition now competes vigorously with a new paradigm revolving around issues of life quality.   Currently, the trends signal nostalgic demands for less populated, less automobile dependent, multi-purpose residential communities, and the rise of a New Urbanism.  Citizens want convenience and privacy, in addition to a sense of community and a sense of place ( Leinberger, 1998). Urban sprawl has thus become a symbol for a number of social and economic maladies plaguing the public and private sectors, as well as a target for those wishing to cure those contemporary ills.  According to State Resource Strategies, a Washington consulting firm focusing on growth issues, nineteen states voted on more than 200 state and local initiatives to protect and preserve parks, open space, farmland, historic buildings and watersheds.  Nearly 70% of these initiatives were approved.  Depending on one’s viewpoint, it is a foe to be vanquished, a disease to be cured, or simply the price to be paid for continuing progress.  And, these myriad perspectives continue to be discussed regularly in various forums (Hart, 2003; Hairston, 2003). Despite the emergence of new perspectives and of powerful and knowledgeable champions for taming sprawl, a clear consensus on the nature and scope of urban sprawl nevertheless remains elusive.  Gordon and Richardson (1998) maintain that the sprawl debate is distorted by a high degree of misinformation.  This misinformation has partially contributed to a deep chasm between those who believe that suburbanization is a spontaneous consequence of economic development and the anti-sprawl activists.   A clear consensus, therefore, has not emerged as part of the debate over urban sprawl or suburbanization.   This ambiguity presents a barrier to understanding and controlling the causes and consequences of the issue.


Economic Growth In Transitional Versus Industrial Economies: A Case of the Baltic Sea Region

Dr. Tiiu Paas and Dr. Egle Tafenau, University of Tartu, Tartu, Estonia

Dr. Nancy J. Scannell, University of Illinois at Springfield, Springfield, Illinois



This paper tests whether differences in growth factors exist between the transitional versus industrialized countries of the Baltic Sea Region. Model estimations indicate that significant growth factors are, unlike for industrial countries, in accordance with theory for transitional countries. Economic growth determinants are apparently dissimilar across the two groups. It is expected, however, that in light of ongoing processes of European integration and economic development of the transitional countries, these discrepancies will diminish. Economic growth, albeit attributed with exacerbating income inequality and environmental harm, is one of the salient aspects of economic development and, ultimately, is assumed to promote the enhancement of societal welfare. In this paper, economic growth is understood to mean the growth of real gross domestic product (GDP) or, alternatively, the growth of per capita GDP. The Baltic Sea Region (BSR) has become one of the most competitive economic regions in Europe in the recent decade. BSR countries are strategically situated vis-a-vis the leading world economies (World Competitiveness Yearbook, 2002). Due to its favorable location between the East and West and given the dynamics of interdependencies between its transition and integration phases, the BSR is poised for rapid economic growth. The literature underscores BSR's uniqueness as derived from its concentration of business activity, its high attainment of economic development, civilization and prosperity, and its non-homogeneity (Kisiel-Lowczyc, 2000; Peschel, 1998).  The BSR is composed of two characteristically distinct sets of countries. Estonia, Latvia, Lithuania, Poland and Russia constitute the transitional nations, while Finland, Sweden, Denmark, Norway and Germany comprise the industrialized nations of the BSR. Inhabitants of industrialized countries command relatively strong purchasing power, and, thus, domestic demand prominently contributes to growth along with foreign demand. In contrast, given the relatively diminutive purchasing power of transitional countries' populations, economic growth in transition countries is driven more so by foreign, rather than domestic, demand.  Economic linkages in terms of foreign trade among the countries of the BSR are notably strong, as evidenced in part by substantial foreign trade activity extant within the region. For the transitional countries of the region, the inter-regional economic linkages are especially strong; in addition to foreign trade, they experience a large measure of foreign direct investment, primarily originating from the Nordic countries and Germany.  On the basis of their respective relationship with the European Union (EU), BSR countries can be disaggregated into three groups. To wit, all the transitional countries except for Russia negotiated for membership with the EU, and all industrialized countries except for Norway have already secured membership with the EU. It follows that a third designation emerges consisting of the aforementioned exceptions, namely Norway and Russia, which are neither members of the EU nor currently advancing upon EU accession.The BSR countries are non-homogenous in terms of country size and relationship with the EU, as well as in terms of levels of both economic development and purchasing power parity. Four of the five transitional BSR countries, Estonia, Latvia, Lithuania and Poland, are candidate countries of EU's eastward enlargement initiative. Poland's large size contributes to its formidable presence in this process. The Baltic States (Estonia, Latvia, and Lithuania) are the only former Soviet Union countries among the EU accession countries. Economic and political developments of the largest country within the region, Russia, are not as readily predictable. From among the industrialized BSR countries, Germany is the largest and wields the heaviest influence on the region’s development.


A Note on the Impact Managerial Styles Can Have for Service Marketers: Some New Insights

Chaim Ehrman, Ph.D., Loyola University Chicago, Chicago, IL



In the field of list selection for service marketing, mail order houses typically offer prospective renters a systematic sampling of names per list to estimate expected return rates. Direct marketing is an alternative to e-service marketing since one can reach a wider audience, i.e. those consumers whose computers are not attached to the Internet or simply do not use the Internet. These estimates are the basis for list selection. In this paper, it is shown through Bayesian Analysis how this selection can be modified to accommodate the risk prone, risk averse and risk neutral decision-maker.  There has been an increasing interest in customer data base marketing, both at the business to business marketing as well as the consumer marketing (Kotler and Armstrong , 2001). Don Peppers and Martha Rogers (1993) contrast the typical mass marketing effort versus one-to-one marketing. In the latter, there is much more information regarding the customer data base, such as demographics, preferences and customer profiles.  In Direct Marketing, there is typically an initial communication with the consumer. Subsequently, the marketing message is tailor-made for a very narrow market segment, known as your target market. The goal is receive a direct, measurable response from the consumer from this segment (Kotler and Armstrong, 2001).  Unfortunately, the primary focus of researchers has been on the needs of the customer, both as a consumer and as a business purchaser. However, there is another significant component in list selection that is overlooked in terms of deterministic decision style (Lee et al., 1981). It is known that management style can be risk prone, risk neutral or risk averse (Green, Tull and Albaum , 1988). Thus, the marketing managerial decision process that is used to determine which market segment should be targeted is a function both of what can be delivered in terms of want satisfaction, as well as the willingness of management to assume risk. Further, probabilistic issues can also be included, e.g., what is the probability that the risk prone decision maker will remain risk prone for the purchase of a given list? A direct marketer may be very confident on a higher response rate for some products.  A more general question that should be addressed is, what are some motivations for managers to be risk prone or risk averse. Are these simply personality traits or perhaps based on forecasts of economic growth, stagnation or recession?  In this paper, a real-life example with real response data has been selected to illustrate how decision making styles as well as probabilistic issues can be incorporated in a direct marketing scenario for service marketing. Our focus will be on selling life insurance, but it can be readily modified to include other services. The organization is follows.  In Section 1, the direct marketing process for this service is described in detail. Section 2 shows how one can accommodate different managerial styles of the decision maker, assuming a deterministic scenario. Section 3 incorporates a probabilistic model. Section 4 uses a Bayesian approach to incorporate both prior probabilities as well as conditional probabilities on decision styles of the decision maker.  In the field of selling Insurance (Life, Health, Disability, etc.) a 2-stage procedure is not uncommon. Initially, a salesman would attempt (typically via phone call) to get an appointment with a prospective client. At the face-to-face meeting, the presentation for insurance is typically tailor-made to meet the unmet needs of the consumer. One strategy for selling is the programmed selling, approach, e.g.,Attention; Interest;Desire; Action;( known as “AIDA,” Schewe and Smith, 1983). The key selling for Insurance may vary, depending on the consumer. For instance, with respect to Life Insurance, some are interested in the attribute of long term financial security, others are concerned in the attribute of providing for their loved ones in case of disaster, others want forced saving for a defined goal such as education expenses for their children, etc. Market segmentation would clearly be appropriate.


Using the Technological Readiness Audit for Strategic Competitive Advantage

Robin Widgery, Ph.D., Stewart L. Tubbs, Ph.D., and David Nicholson, M.S.

Eastern Michigan University, Ypsilanti, MI



What is your company worth?  The human resources literature reminds us that the value of organizations consists of far more than those items on the balance sheet. How much value is represented in the abilities of your employees to work well as a team, to have good communication skills, to be well motivated, to know when to lead and when to follow?  Moreover, what is the value of highly skilled people in your company - people who know how to get the best results from the various technologies that are listed on the "hard" assets side of the ledger? Unlike assets that wear out over time, the value of these human resources, if managed wisely, can continue to grow year to year.  The continuous development of human resources should become a key element of every organizations strategic plan. Managed properly these resources can become a powerful competitive advantage. While some organizations relegate training and development activities to secondary status, these activities should be viewed as a critical strategic function that contributes directly to the bottom line, and has quick and sure impact on the company's competitive potency.  A strategic human resource development perspective should include the following planning components: (1) a plan fully integrated with the organization's overall business plan and its vision statement, (2) an employee development plan designed to meet the unique needs of the current and future organization and its various functions, (3) a plan created to anticipate changes in technological applications within the organization, (4) a plan designed to meet the competitive demands of the organization, and (5) a plan targe-ted to meet the individual training needs within specific functions and specific locations.  To accomplish all these criteria the Technological Readiness Auditsm was developed a few years ago for The Ford Motor Company's North American Operations.  It was created to pinpoint, within specific plants, the exact types of training needed by their engineering and managerial staff in order to prepare them to integrate, as quickly and smoothly as possible, several billion dollars of new processes and technologies.  The Audit was seen as a critical strategic activity that would enable Ford to make a quick and giant leap to a higher plateau of technological competitiveness.  They accomplished this by insuring that on the day the new machines and methods were introduced, the personnel involved were already up to speed on how to get maximum performance from each new technology.  This method of preparedness has now been adapted for the needs of small and medium sized business organizations.  It is a valuable tool for creating more effective personnel development strategies - strategies that anticipate the future and efficiently turn knowledge and skill liabilities into assets. The Technological Readiness Auditsm is a method of diagnosing the training and development needs of employees in order to identify those competencies and skills that need to be strengthened to help assure greater effectiveness in current and future job performance. This assessment method identifies the exact types of training and develop-ment activities needed by all professional and support personnel within the organization. The Audit includes every skill, knowledge, method, process, and technology required throughout the workforce.  What does the Technological Readiness Auditsm actually do?  There are six key objectives, which are achieved during the Audit process.  This process is primarily designed to identify all competencies used in the organization and then to define which parts of the organization have skill liabilities today and/or likely liabilities in the future.  The resulting analysis provides the company with a highly specific picture of human resource assets and liabilities.  Moreover, it provides an HR utilization profile for current conditions and an examination of future HR recruiting and training needs. The six objectives of the Audit include the following:  An inventory of current knowledge, skills, methods, processes and technologies needed by managerial, professional, engineering and technical staff.  A projection of the knowledge, skills, methods, processes and technologies needed for the future.  The identification of core competencies required for all job classifications.  The design of a targeted training curriculum and development strategy for each  functional area audited.  Assistance with the smooth and efficient integration of new and more competitive  technologies to strengthen the company's position of readiness to compete with "cutting edge" competencies and skills.  The identification of the critical recruiting needs of the organization and the  profiling of the efficient utilization of human resources.


 Auditing E-Business: New Challenges for External Auditors

Dr. Ahmad A. Abu-Musa, Tanta University, Egypt



 Electronic Business (E-Business) is a dynamic set of technologies, applications, and business processes that link companies, customers, and communities through the electronic exchange of goods, services, transactions and information. E-Business technology is rapidly changing the way that companies buy, sell, and deal with customers and partners. E-Business is becoming an important business tool since many companies are using the Internet to conduct their business. The dramatic evolution of information technology and the continuous decline in prices encourage many companies to automate their accounting information systems and to adopt E-Business in order to gain competitive advantages in the market. E-Business brings new challenges to conventional external auditors and the audit profession. External auditors need to understand how the advanced technology affects their audit process. Adequate planning of E-Business audit procedures becomes critical because most of the audit evidence might be available only in electronic form. External auditors should be able to evaluate the adequacy and accuracy of the electronic audit evidence.


Making "Good" Decisions: What Intuitive Physics Reveals About the Failure of Intuition

Jeff W. Trailer, Ph.D. and James F. Morgan, J.D, California State University, Chico, CA



 This study examines the intuitive accuracy that people achieve in predicting the motion of objects (intuitive physics). Policy capturing was used to identify each subject's judgment method.  Then, individual decision policies were dissected mathematically, using the Lens Model equation, to determine the source of judgment errors.  The results support previous research that finds intuitive judgments to be generally inaccurate, but goes further by diagnosing how intuition fails.  Should you trust your gut?  Bonabeau (2003) argues a cautionary “no,” however many articles have proclaimed the virtues of intuition in managerial decision making (Mintzberg, 1976; Harper, 1988; Agor, 1989).  Reasons for focusing on intuition include: an increased need for visionary thinking, inspired leadership, and complex imaging (Butts, Whitty, & McDonald, 1991), a need to understand how experts make decisions quickly (Simon, 1987), and a need to reduce reliance on time consuming systematic analysis (Behling & Eckel, 1991).


Agency Theory, National Culture and Management Control Systems

Dr. Samson Ekanayake, Deakin University, Victoria, Australia



 Management control system of an organization is the structured facet of management, the formal vehicle by which the management process is executed.  In most organizations, systems exist for planning, organizing, directing, controlling and motivating.  Depending on the level of appropriateness and quality of the management control systems, the task of management is either facilitated or hindered.  The end goal of a management control system is achieving organizational objectives.  Because employees (agents) do not always give their best efforts for achieving organizational objectives, management control systems need to strive for aligning goals of agents (e.g., employees, subordinates) with that of principals (eg. senior management, owners).  Agency theory and its extension, principal-agent model, provide insights to the problem of goal congruence and suggest remedies, at least in the Western cultural context.  Whether the agency theory presumptions, predictions and prescriptions are universally applicable is an important issue in management. Their validity in different cultural contexts is largely unknown. The available literature to date indicates the possibility that agency theory may not be valid in non-western cultures. However, further empirical research is needed in non-western cultures to shed more light to this issue.


Consumer Protection in E-Commerce: Analyzing the Statutes in Malaysia

Sarabdeen Jawahitha, Multimedia University, Malaysia



 The bearing of e-commerce especially the retail businesses on the Internet have created opportunities to the consumers including Malaysian consumers to transact online with comfort and convenience. Nevertheless, the ultimate success of e-commerce will depend to great extent on the interest and confidence of consumers. There have been several legislation passed to protect the consumers in the traditional market place, many of which can be useful in electronic market place. However, the nature of electronic environment requires new laws or amendment of the existing laws to address the new challenges posed by this new medium of transaction.  Issues like the applicable law to consumer contracts for supply of goods and services made via Internet, the legality of collection of consumer data without express consent from the data subject and the suitable courts to decide on an e-consumer dispute always create anxiety among the e-consumers. Many countries have taken initiatives to address these issues to build up consumer confidence. This paper is an attempt to examine Malaysian legislative framework and analyze its adequacy to address these anxieties and the protection in preserving the interest of the e-consumers.


Technical Efficiencies of Rice Farms in Thailand: A Non-Parametric Approach

Dr. Wirat Krasachat, King Mongkut’s Institute of Technology Ladkrabang, Bangkok, Thailand



 The purpose of this study is to measure and investigate technical efficiency in rice farms in Thailand. This study decomposes technical efficiency into its technical and scale components. In past studies, efficiency analyses have involved econometric methods. In this study, the data envelopment analysis (DEA) approach and farm-level cross-sectional survey data of Thai rice farms in 1999 are used. A Tobit regression is used to explain the likelihood of changes in inefficiencies by farm-specific factors. The empirical findings indicate a wide diversity of efficiencies from farm to farm and also suggest that the diversity of natural resources has had an influence on technical efficiency in Thai rice farms.


The Moderating Effects of Consumer Perception to the Impacts of Country-of-Design on Perceived Quality

Ting-Yu Chueh and Danny T. Kao, National Central University, Taiwan



 This research is exploratory in nature.  The object involved in this research is mobile phone due to its prevalent usage. The main purpose of this research is to identify the moderators affecting the COD effects on perceived quality (PQ). According to related literatures, the moderators affecting the perceived quality are country image, value perception, risk, trust, attitude toward the brand, satisfaction, familiarity, attachment and involvement. The moderators involved in this research were emanated from consumer perceptions, rather than the behavioral aspects. Based upon the literatures and inference, all related moderators will significantly impact on PQ. We suggest that representative samples should be selected and tested in the future research.  The propositions involved in this research might be applicable to other products. Moreover, findings of this research can be applied to practical fields to facilitate the marketing resource distribution.


Ownership and International Joint Ventures’ Level of Expatriate Managers

Lifeng Geng, Lakehead University, Ontario, Canada



 We examine the relationship between ownership and the level of expatriate managers in international joint ventures. We propose that such relationship rests with the division between de jure control and de facto control. Results from empirical tests support our hypothesized inverted-U relationship between ownership and IJVs’ level of expatriate managers. IJVs’ level of expatriate managers rises as ownership increases from low to a majority level and then decreases after ownership exceeds the majority level.


Teaching Workloads of Finance Program Leaders and Faculty and Criteria for Granting Load Relief

Dr. Ron Colley and Dr. Ara Volkan, University of West Georgia, Carrollton, GA



 This study first examines the distributions for teaching loads and number of course preparations of finance program leaders and faculty at Ph.D.-level and masters-level AACSBI-accredited institutions.  In addition, official maximum loads and the extent to which faculty and program leaders in given institutions teach different levels of loads are presented.  Second, the reasons for granting teaching workload reductions to finance faculty are examined.  Where appropriate, statistical tests are performed to report differences among the means of the results observed in the two categories, for both faculty and program leaders and public and private institutions. The overall results show that there are no statistical differences between the responses of program leaders and faculty and between the private and public institution outcomes.  While the former indicates good communications among finance educators, the latter shows that free market competition operates as an equalizing force.  When specified, the official maximum load is usually 24 semester hours (eight courses) per year, but few faculty teach the maximum load. Also, there are significant differences between the average common teaching loads and common number of course preparations in the two categories.  While there are some differences among the reasons cited for load relief in the two categories of programs analyzed, overall results indicate that publication activities are the main factors underlying load relief, followed by editing a journal and institutional service. 


ICT Adoption and SME Growth in New Zealand

Dr. Stuart Locke, The University of Waikato, Hamilton, New Zealand



 The impact of adopting information communication technology (ICT) upon the growth of small businesses in New Zealand is reported in this paper.  Government policy increasingly places a strong emphasis upon the importance of ICT and the knowledge economy.  Specific projects, undertaken by government in this regard, have included remote rural broadband access developments, the single government portal and e-procurement initiatives.  A SME Quarterly Benchmarking Survey has been used to investigate various aspects of ICT adoption by SMEs since 1999.  This survey provided the research instrument for the present study.  Three measures of growth are used as the basis for investigating the impact that the level of ICT adoption has on a range of small businesses.  The analysis, using logit regression, probes the strength of the various factor relationships.  Increased profitability, as a proxy for growth, is most strongly correlated with ICT usage.  Although a positive relationship is considered likely, and detectable in the data gathered, it could not be separated from other influences.  Factors such as the level of ICT understanding of the owner/managers and increases in the number of employees are similarly positively correlated. 


Internet Technology as a Tool in Customer Relationship Management

Noor Raihan Ab Hamid, Multimedia University, Cyberjaya, Malaysia

Dr. Norizan Kassim, United Arab Emirates University, UAE



 The Internet’s growth, particularly the World Wide Web, as an electronic medium of commerce has brought tremendous changes in market competition among various industries. For example, past researches have examined the impact of Internet technology on customer relationship management in various areas¾in small and large firms, services and business-to-business companies. However, there remains a need to empirically examine the impact of implementing Internet technology on various dimensions of relationship management in South East Asia, particularly Malaysia. Primarily, the interest was led by traditional customer management economics¾it costs the industry five times as much to acquire a new customer than to retain an existing one (Peppers and Rogers 1996). The results of this study indicate that click-and-mortar companies show a higher percentage of using the Internet technology for CRM compared to pure dotcom companies.  There is a positive impact on the utilization of Internet technology on the CRM variables being studied. These findings may reflect a similar situation in other countries in South East Asia where the penetration rate of e-commerce is relatively low. The limitations and future directions of  this research are also discussed and highlighted. 


Privatization in Saudi Arabia: Is it Time to Introduce it into the Public Sector Domain?

Abdullah M. Al-Homeadan, Ph. D., The Institute of Public Administration (IPA), Riyadh, Saudi Arabia



 Reducing government inefficiency and ineffectiveness was essential for the improvement of economic welfare of the human race. “Governments were forced to look at ways to reduce costs and inefficiencies, and turned to privatizing some of their...commercially oriented operations”(Ives, 1995, p. 2).  One of the countries that is seriously considering privatization is Saudi Arabia.  In fact, Saudi Arabia has already taken some big steps toward privatizing all of the enterprises that could be run by the private sector. The Saudi privatization program was announced by King Fahd on Monday the fifth of May, 1994 and was delineated in the government’s Third Basic Strategic Principle of the Sixth Development Plan (1995-2000). The program has been interpreted to mean “giving the private sector the opportunity to undertake many of the economic tasks of the government, while ensuring that the government does not engage in any economic activity that can be undertaken by the private sector” (p. 17).  The objective of this study is to explore the attitudes of the department heads in the public sector of Saudi Arabia in order to identify the factors that have shaped those attitudes. The importance of the opinions of those administrators stems from the fact that they are going to be responsible for implementing the King’s privatization initiative. Insuring that policy implementors hold favorable attitudes towars privatization is essential to the success of the privatization program. Furthermore, favorable attitudes are a strong indication that reform through privatization is a very timely policy.


Trainer Development Formula: The Case of the Institute of Public Administration in Saudi Arabia

Abdullah M. Al-Homeadan, Ph. D., The Institute of Public Administration (IPA), Riyadh, Saudi Arabia



 Government in Saudi Arabia has always been the main financier of administrative development in the country. Ever since the creation of the Council of Ministers in 1953, the concept of effective and efficient public sector has been one of the government’s main strategies. The Council of Ministers stems from the fact that it practices both legislative and administrative powers. One of the major steps taken by the Council towards improving the effectiveness and efficiency of the struggling ministries and public agencies was the invitation of experts from a number of concerned international agencies as of the year 1957. These agencies are the International Monetary Fund, the International Bank for Reconstruction and Development, The United Nations Technical Cooperation Committee, and the Ford Foundation. One of the major recommendations of these agencies was the establishment of the Institute of Public Administration (IPA) in 1961. The over all mission of the IPA has been the advancement of administrative developments. However, accomplishing this mission could not be achieved without providing a sound administrative environment for the people who will carry on this mission.


The Relationship between the Dow Jones Eurostoxx50 Index and Firm Level Volatility

Dr. Kevin Daly, University of Western Sydney, Campbelltown, Australia



 This paper presents a study of asset price volatility, correlation trends and market risk-premia. Recent evidence (Campbell 2001) shows an increase in firm-level volatility and a decline of the correlation among stock returns in the US. We find that, in relation to the Euro-Area stock markets, both aggregate firm-level volatility and average stock market correlation are trended up-wards.  We estimate a linear model of the market risk-return relationship nested in an EGARCH(1,1)-M model for conditional second moments. We then show that traditional estimates of the conditional risk-return relationship, that use ex post excess returns as the conditioning information set, lead to joint tests of the theoretical model (usually the ICAPM) and of the Efficient Market Hypothesis in its strong form.  To overcome this problem we propose alternative measures of expected market risk based on implied volatility extracted from traded option prices and we discuss the conditions under which implied volatility depends solely on expected risk. We then regress market excess-returns on lagged market implied variance computed from implied market volatility to estimate the relationship between expected market excess-returns and expected market risk.We investigate whether, as predicted by the ICAPM, the expected market risk is the main factor in explaining the market risk premium and the latter is independent of aggregate idiosyncratic risk.


Strategic Orientation of Banking and Finance Managers in United Arab Emirates

Dr. Quhafah Mahasneh, University of Sharjah, United Arab Emirates



 In the emerging economic scenario in the UAE characterized inter alia by intense competition, strategic orientation of banking and finance firms is viewed as a critical roadmap to competitive edge and superior performance. Policymakers have taken ambitious steps to transform the UAE economy into a regional hub of banking and finance. Missing, however, has been an empirical study focusing on the strategic orientation of managers in the banking and finance sector of the UAE economy. Therefore, an attempt is made in this study empirically to investigate the strategic orientation of managers in this important sector of the economy. It is hoped, a study of this kind would have great implications for policy not only in the UAE but also elsewhere in the world.


Great Leaders Teach Exemplary Followership and Serve As Servant Leaders

Dr.   Michael Ba Banutu-Gomez, Rowan University, Glassboro, NJ



 This paper focuses on the impact of exemplary follower and servant leader. Thus it examined their relationship and the roles they play in the creation of the “Learning Organization” of the future. The first part of this framework addressed the process of a good follower. This process include leaders alienating followers, leaders face problems in teaching leadership, skills of exemplary followers, exemplary followers and team, organizations of the future, leaders transforming people and leaders measured by the quality of their followers. The second part of the paper deals with servant leader. Thus its process include servant leaders elicit trust in followers, modern western societies, community provide love for humans, business organizations are expected to serve and modern organizations searching for new mission. Together, the two frameworks provide insights and guidelines for managers and leaders in leading organizations of the future.


Factors that Affect the Selection of Defensive Marketing Strategies: Evidence from the Egyptian Banking Sector

Dr. Mansour S. M. Abdel-Maguid Lotayif, Cairo University, Cairo, Egypt


 The current study aims at identifying the causality relationships between defensive marketing strategies {e.g. business intelligence strategy (BI), customers service strategy (CS), customer complaint management strategy (CCM), Aikido strategy (AIKO), Free telephone line strategy (FTL), focus strategy (FOC), differentiation strategy (DIFF), and cost leadership strategy (CL)} and four sets of variables. These sets are demographics (e.g. respondents’ positions, ages, educational levels, experiences, bank experiences, and bank’s number of employees), bank’s objectives (e.g. to increase the bank’s market share, to maintain the current market share, to increase the bank’s profit, to increase the bank’s customer satisfaction, and to increase the customer’s loyalty), bank’s rivals i.e. kinds of entry modes (e.g. branches, subsidiaries, joint venture, merger, direct exporting and indirect exporting), and rivals’ competitive advantages (e.g. their marketing mix variables, all their marketing program variables, offering of new kinds of banking services, high interest rates on deposits accounts, low interest rates for loans given, well designed service delivery system, employing competitive staff, and strong advertising campaigns). The experiences of 591 bankers were utilized to investigate these relationships. Throughout Canonical Correlation Analysis in Stat Graphic statistical package, strong and significant relationships between defensive marketing strategies and these four sets of variables were supported.


Hedging for Global Equity Investing

Tulin Sener, Ph.D., State University of New York - New Paltz, NY



 In short run, substantial currency surprises exist, including forward rate biases and cross-product terms.  However, significant negative co-variances between the currency contributions and asset returns may result in less or no need for hedging.  A natural insurance takes place. Hedging decisions for a single investment versus a global equity portfolio may not be the same for a given period. The determinants of the optimal hedge ratio for the portfolio are defined as the domestic asset weight, co-variances between asset returns and currency contributions, as well as the variance of the currency contribution.  Hedging is less effective for longer time periods and for the global portfolios with larger domestic asset weights (i.e. 80 percent).


Finance Faculty’s Understanding and Acceptance of Accreditation for Chartered Financial Analyst in Taiwan

Dr. Mei-hua Chen and Dr. Bryan H. Chen, National Changhua University of Education, Taiwan



 Taiwan joined the World Trade Organization (WTO) in January 1, 2002, and now faces significant competition in many respects from other members of the WTO. As far as financial education in Taiwan is concerned, it is urgent to prepare financial students in Taiwan for a global market. For instance, there are many universities in the United States currently offering CFA-oriented degrees or CFA exam preparation courses because the CFA designation is becoming one of the fast-growing credentials among investment professionals worldwide. The findings from this study provided information to financial education faculty for planning business courses in order to meet students' needs and also to capture future business trends. The findings also assist the selected finance departments design more appropriate curricula in their finance majors.


Assessing the Measurement of Organizational Agility

Dr. Norizan M. Kassim and Dr. Mohamed Zain, UAE University, Al-Ain, U.A.E.




This research examines four factors of agility¾ enriching customers, mastering change, leveraging resources, and cooperating to compete and how they relate to the use of information technology and information systems by Malaysian firms in their efforts to become more agile and competitive. Measures of all the four factors of agility were developed and empirically tested using confirmatory factor analysis. The results of the measurement instrument developed for the four factors of agility indicate acceptance of the psychometric properties of the scale.  Rapid changes and challenges in the dynamic information technology environment, and increasingly strong pressures from hypercompetitive markets have forced Malaysian firms to turn to information technology (IT) and information system (IS) to improve organizational agility and to expand globally. IT/IS has now becomes the only way to cope with today’s volume and complexity of data.  However, as technology becomes more matured, management now focuses on controlling the business rather than the technology. Thus the focus now is on how do firms become agile in the market and can this agility be sustained or enhanced through the use of IT/IS. Agility is a necessary ability in the revolutionary turning of the business environment into a turbulent place of competition (Sharifi and Zhang, 1999).


The New Economic and Social Model – A Third Stage of Economic and Social Development in Brazil in the Millennium: One Brazil-Shared Humanity –Wealth Creation and Social Justice

Richard Trotter, Ph.D., University of Baltimore, Baltimore, MD



 Within the last fifty years Brazil has embarked upon an economic program of industrialization and economic development. The first phase of its program focused on economic development through import substitution and considerable state intervention in the country’s economic policy. During the 1990’s the Brazilian government entered upon the second stage of its economic development policy: a market model based on fiscal discipline, trade liberalization, privatization and deregulation. This model produced economic growth and prosperity for the upper and middle classes. Notwithstanding Brazil’s economic growth income disparity has increased with the result that Brazil is in effect two entities: a first world and a third world country. If the Lula administration is to succeed, it must develop an economic model that combines market economy efficiencies while addressing the enormous economic and social inequalities existing in Brazil. Additionally the Lula administration must address structural issues relating to income distribution arising out of race discrimination, labor policy, educational reform as well as creatively borrowing from the experience of the United States, Canada, China and other Asian countries.


Critical Success Factors in the Client-Consulting Relationship

Dr. Steven H. Appelbaum, Concordia University, Montreal, Quebec, Canada



 The primary intent of this study is to examine recent projects involving external management consultants at a N. American telecommunications firm, from the employees’ point of view, to measure the extent to which the aforementioned “critical success factors” were perceived as being evident. A secondary purpose was to examine which, if any, of these factors differ between more or less successful consulting projects with a view to building a model to predict employees’ perceptions of the level of the projects’ success. A third objective was to gather employee opinions on other factors that might contribute to the success of consulting projects. A fourth, and final, objective was to gather general employee opinions on the use of management consultancy at a N. American telecommunications firm. A total of 102 employees responded to a questionnaire consisting of 59 questions. A model including six independent variables was able to predict overall rating of project success, with an adjusted R2 =0.68, F=27.81 (p<.0001).  The significant variables, in order of importance, were:


A Study on Entrepreneurial Attitudes Among Youths in Malaysia. Case Study: Institute Kemahiran Belia Negara, Malaysia

Jumaat  Abd Moen, Ishak Hj Abd Rahman andMohd Fairuz Md Salleh, National University Malaysia, Bangi, Selangor, Malaysia

Rohani Ibrahim, Universiti Teknologi Mara, Syah Alam Selangor,Malaysia



 The objective of this study is to know the entrepreneurial attitudes among the IKBN trainee youths in Malaysia and to identify the factor demographic relationship, educational back ground, respondents’ experience, parental education and job with entrepreneurial attitude orientation. The society has given hopes to IKBN as the first skill center for expanding the entrepreneurship among the trainees. To understand clearly the factors that can influence the entrepreneurial attitude orientation, a model that forms the entrepreneurial attitude orientation was proposed. In this study, a test instrument on entrepreneurial attitude and questionnaires about respondents’ demography was used. This study was carried out on all the IKBN trainees in Malaysia.  Findings have shown that the residential area, field area in IKBN and in school, parent’s education and fathers’ occupation has a significant relationship with entrepreneurial attitudes.


A Comparison of Economic Reforms and Instability Effects in Three Large Emerging Markets

Dr. Parameswar Nandakumar, Indian Institute of Management Kozhikode, India

Dr. Cheick Wagué, South Stockholm University, Södertörn, Sweden



 An additive decomposition analysis is made of the external sector developments in three countries, China, India and Korea, for the period 1974-2000, for the purpose of distinguishing between the results of policies and external influences. The growth in exports is disaggregated into that due to additional primary exports and that arising from diversification into more value-added manufactures. The effects on imports of constraining primary imports while opening up to valuable capital goods imports are also weeded out. The terms of trade effect on the current account, as well as the effects of increases in debt and in interest on debt, are also separated out. In general, specific reform policies such as exports diversification have succeeded more in Korea and – to a lesser extent – in China, while the Indian experience has been only positive in the recent years. Also, external forces have had their say relatively more in India. However, the feedback from financial instability to the real economy is noted only in Korea, as borne out by granger causality tests.


New Evidence on the Impact of Federal Government Budget Deficits on the Nominal Long Term Interest Rate Yield on Moody’s Baa-Rated Corporate Bonds

Dr. Carl T. Massey, Jr., Dr. Richard T. Connelly, and Dr. Richard J. Cebula, Armstrong Atlantic State University, Savannah, GA



 This study empirically investigates the impact of the federal budget deficit on the nominal long term interest rate yield on Moody’s Baa-rated corporate bonds over the period 1946-2002. In a system that includes the ex ante real short term interest rate, expected inflation, changes in per capita real GDP, and the ratio of the federal budget deficit to the GDP level, IV estimation reveals that the total budget deficit has acted significantly to raise the nominal corporate bond yield. This finding is consistent with certain earlier studies and implies the possibility of at least partial “crowding out.” 


Issues and Challenges of Accounting Education in China: Practitioner and Academic Perceptions

Tsui-chih Wu, Shih Chien University, Taipei City, Taiwan

Yealing Tong, Takming College, Taipei, Taiwan



 This paper examines and analyzes the current situation and challenges of accounting education in China. Questionnaire surveys were directed to accounting educators from five mainstream universities as well as accounting practitioners. Taken overall, responses from the two groups are quite homogeneous in the majority of issues in the study. The results show China has experienced an increased pace of change in accounting environment due to internationalization and economic openness. While accounting educators, public accounting, and industry see tremendous value in an accounting education, there is an urgent need for changes in curriculum development and teaching, rewarding structure, and ways of communications with the practice community. The Chinese booming economy for the past ten years has indeed brought about serious problems and challenges with accounting education. The research results may provide some early feedback for the development of accounting education in emerging economies.


Exchange Rate Regime Choices for China

Dr. Xiaoping Xu, Huazhong University of Science & Technology, Wuhan, Hubei, P.R. China



 What exchange rate regimes should China adopt in the 21st century? This paper analyzes some different exchange rate regime choices for China’s economy. It indicates that in China’s case, a fixed exchange rate regime can not mitigate both real and financial economic shocks in the long run; a complete floating exchange rate regime is not appropriate for China either because free movements of international capital and floating exchange rates are basically incompatible in China. The conclusion that flows from this paper is that the future choice for China’s exchange rate regime is a floating rate within a band system.


Sources of Competitive Advantage: Differential and Catalytic Dimensions

Fred Amofa Yamoah, Doctoral Student, International University - London Centre, UK



 A key challenge confronting all managers is achieving consumer satisfaction in an ever-changing business environment. It is necessary to demonstrate that the changing business environment has been a major factor behind the varied sources of competitive advantage and corporate strategies that are implemented by many businesses. A literature review spanning over six centuries provided, highlights the need to differentiate between sources of competitive advantage for corporate success. Towards this goal, a two-tear classification, termed remote and immediate sources of competitive advantage is proposed with a discussion on its theoretical and managerial implications, and an outline of future research directions.


Comprehensive Income: Evidence on the Effectiveness of FAS 130

Dr. Bruce Dehning, Chapman University, Orange, CA

Dr. Paulette A. Ratliff, Arkansas State University, Jonesboro, AR



 Statement of Financial Accounting Standards No. 130 (FAS 130) “Reporting Comprehensive Income” requires all publicly traded companies to include a Statement of Comprehensive Income in their set of basic financial statements.  As Comprehensive Income items have previously been disclosed in various parts of the financial statements, listing these items in statement form provides no information that has not already been available.  Therefore, if markets are efficient, the disclosures required by FAS 130 should not affect firm value.  The purpose of this paper is to provide empirical evidence of the usefulness of CI disclosures as required by FAS 130.  In this study, we examine data for firms in periods immediately before and after enactment of FAS 130 rules.  We find that there is no difference in the market’s valuation of comprehensive income adjustments before and after the implementation of FAS 130.  This is consistent with the efficient markets hypothesis in that there is no change in the way the market values the information due solely to the placement of the disclosure.  Unless other benefits of FAS 130 can be shown, this statement appears to require additional information without a commensurate payback.


On Acculturation of Business Acquisition: The Case of two Machine Tool Manufacturers in Taiwan

Nelson N. H. Liao, Chaoyang University of Technology, Taichung County, Taiwan




One aggressive machine tool manufacturer in Taiwan acquired another major machine tool manufacturer retaining all employees of the acquired firm and providing its financial and managerial support in the year 2000. The present paper examines the issue of acculturation between the acquiring firm and the acquired firm in terms of organizational culture and employees’ working attitudes. The present paper introduced a conceptual research framework, followed by implementation of a structured company-wide questionnaire, the employees of the two firms responded twice in one year. By way of reliability check, descriptive analysis, Pearson correlation analysis, independent samples t-test, stepwise regression analysis, and interviewed with key members of the two firms, the major findings are as follows:


Perspectives on Privacy

Dr. William H. Friedman, University of Central Arkansas, Conway, AR



 Privacy, while rarely a major social concern before 1900, has recently become a high profile issue, bordering on obsession for the general public as well as for the computer and the business worlds. Discussants of privacy rights often take much for granted, and in the most extreme cases, their assertions about privacy and rights are made in a tone of almost “axiomatic” self-certainty. They typically proceed with the full expectation that the intended audience will assent to the spokesperson’s positions without question. There have been many proposed and actual extensions of the scope of privacy, which have now progressed to demands for shielding virtually all information about anything an individual might wish to keep secret, despite the existence of reasonable, competing values. For example, in the US, a student has a legal right to keep his/her parents, whether they defray the student’s tuition or not, from ever learning from a university that the student has failed every course.


Global Trade Model

Dr. Baoping Guo, University of Northern Virginia, VA



 This paper presents a global trade model by incorporating capital flows, consumer goods flows, and intermediate goods flows in conventional multiregional input output model to simulate that the interconnected world economy as whole is various of trade flows. The paper presents global trade equation, export equation, import equation by introducing domestic trade matrixes, import matrixes and export matrixes, which show the structure connection of global economy from different analysis angles. The model suggests that there be the import-export structure interdependence among countries in international trade system. In addition, the paper provides a solution procedure for an exogenous customer-consumption-oriented dynamic multinational equilibrium.


Mobile Commerce: Customer Perception and It’s Prospect on Business Operation in Malaysia

Dr. Ahasanul Haque, Multimedia University, Selangor, Malaysia



 Use of mobile devices will open significant opportunities for e-commerce, payment services, information services and entertainment. However, adoption of mobile commerce in business to business (B2B) and business to consumer (B2C) sectors has been relatively low in Malaysia. Rapid growth numbers of mobile users, it is crucial for companies to fully understand what influence consumers satisfaction. As consumer perception of services would influence the level of satisfaction, companies should then pay attention to the attributes that are perceived as important by consumers for making choices. Hence, this paper is an early attempt aims to provide empirical data on mobile users’ preferences of services as well as attributes that are perceived as importance when they shop using mobile devices. This paper explains users’ perception towards mobile commerce and its scope as a business marketing strategy in Malaysia. The results of the study indicated significance difference between male and female perception of mobile commerce. In addition, results also highlighted negative influence types of information on the use of mobile commerce among the various groups.


Is Family Ownership a Pain or Gain to Firm Performance?

Jira Yammeesri, University of Wollongong, Northfields Ave., Australia

Dr. Sudhir C. Lodh, University of Western Sydney, Australia



 This study examines the relationship between family ownership and firm performance in Thailand between 1998-2000.  This study focuses on family-controlling ownership, managerial-family and managerial-non-family ownership.  The results show that family-controlling ownership is positively significant to profitability, but it is less significant to market returns.  The results also show that managerial-family ownership has a strong positive relationship with firm performance.  Interestingly, this study finds that managerial-family ownership does not always encourage firm performance as, based on a non-linear analysis, the results show that a certain level of managerial-family shareholding is negatively related to firm performance.


Comparison of Knowledge Management and CMM/CMMI Implementation

Sam Ramanujan Ph.D. and Someswar Kesh Ph.D., Central Missouri State University, Warrensburg, MO



 As software project’s deadlines have been missed, budgets grossly overspent, and resources not adequately used to its full potential, the need for a structure or model to assist in implementation have become very apparent. CMM and CMMI were developed to address these situations. In addition to structuring tasks, organizations face a daunting task of organizing and maintaining the knowledge that exists within them. Such an effort is essential for organizations to gain leverage from their knowledgebase. The process used to organize and maintain the knowledge base is aptly called Knowledge Management. In this study we highlight the symbiotic relationship between Knowledge Management and CMM/CMMI implementation in organizations.


Selecting Consumer Oriented Alliance Partner to Assure Customer Satisfaction in International Markets

Feng-Chuan Pan, Tajen Institute of Technology and I-Shou University, Taiwan



 Many firms enter into international strategic alliance with a wish to strengthen their competitive advantages in international markets However, efforts that lack customer perceived value or deviate from customer expectation. has driven many firms to the hell of failure. Selecting proper international strategic alliance partner has been view as critical factor to the success of cross-border cooperation. While the consumer is the center of marketing and many functional operations, consumers are ignored in most international strategic alliance researches. This paper argues that distinct from partner-related factors and task-related factors; consumer-related factors shall be the most important criteria in selecting partner prior to adopt other factors into consideration. This paper presents the importance of the role of consumer in business activities, and the necessity of involving consumer-related factors in the decision of international strategic alliance, particularly partner selection. Base on several international strategic alliance theories, this paper develop several propositions for further empirical studies.


The Relationship between Self-Directed Learning Readiness and Organizational Effectiveness

Dr. Min-Huei Chien, The Overseas Chinese Institute of Technology, Taiwan



 The purpose of this study was to investigate the relationship between readiness for self-directed learning and organizational effectiveness.  The hypotheses that guided this investigation related to the relationship between readiness for self-directed learning and organizational effectiveness in several companies in Taiwan.  The results of the study showed significant relationship between SDLRS and organizational effectiveness. Recommendations suggested that manager should help employees become ready for self-directed learning in order to improve organizational effectiveness. 


A Study to Improve Organizational Performance: A View from SHRM

Dr. Min-Huei Chien, The Overseas Chinese Institute of Technology, Taiwan



 This research studies how to improve organizational performance from the point of strategic human resource management. The research method adopted was the case study of the qualitative research and the data was collected by in-depth interviews. In the process of the research, the author interviewed with fifty employees, including twenty mangers and thirty workers.  According to the analysis of the research data, there are five factors effecting organizational performance: (1) Model of motive. (2) Leadership styles. (3) Organizational culture and environment. (4) Job design. (5) Human resource policies.  According to the results, the study point out some feasible suggestions on the administrative policy and management. The results of this study could be helpful to the management effectiveness practices and the construction of quality management model in disciplinary study.


Project Performance: Implications of Personality Preferences and Double Loop Learning

Dr. Karla M. Back and Dr. Robert Seaker, University of Houston, Houston, TX



 The process of managing and implementing a project is typically more dynamic than what an initial project plan would indicate. Projects exist within organizational as well as economic contexts designed and are executed by human beings.  When such influences are considered collectively, chances are that a successful project will have required a series of reassessments and adjustments throughout the project’s duration. Given the nature of most project environments, what allows a project to meet its business and performance objectives in the most cost effective and timely manner?  A proposed theory contends that as organizational and external environments become more complex, projects must evolve to be more organic in nature.  This is accomplished by building a team that practices, incorporates, and nurtures double loop learning – a phenomenon that refers to an individual’s capability and propensity for challenging accepted rules and parameters that decisions or actions face.  It is also postulated that the tendency toward thinking and behaving in this way is correlated with certain aspects of an individual’s personality.  Therefore, project success may actually be determined at the time individuals are selected for the project team – that is, prior to any formal planning and implementation of tasks. 


The Dollar Value of Improved Customer-Oriented Retail Sales Personnel

Dr. Edward Kemery and Dr. Gene Milbourn, University of Baltimore, MD



 It is argued that by failing for focus on the customer orientation of its sales clerks, an organization could place itself at a competitive disadvantage.  A study was conducted which found that a self-report measure of trait hostility correlated with supervisory ratings of job performance of sales clerks.   Although the magnitude of the obtained correlation was low (r=. 16), utility analysis demonstrated how even a selection instrument of such “modest” validity can produce a significant bottom-line payoff to an organization in some instances. Obtained findings also argue for continued investigations of theoretically meaningful personality-performance hypotheses.


Gaining a Competitive Advantage from Advertising

(Study on Children's Understanding of TV Advertising)

Dr. Ali Khatibi, Dr. Ahasanul Haque & Dr. Hishamudin Ismail, Multimedia University, Cyberjaya- Malaysia



 For many years, TV advertisers have produced commercials that are designed to attract and hold the attention of children of all ages. As a result, there has been increasing controversy regarding whether these commercials are fair since they are intended to persuade children who are not mature enough to critically evaluate the messages presented. In this study, verbal and non-verbal measurements were used to investigate whether age, gender and parental influence have an effect on the understanding of TV advertising. The study would measure two components of understanding TV advertising: the recognition of the difference between programs and commercials and the comprehension of advertising intent. ANOVA analyses were performed to assess the effect on age, gender, parent-child interaction and parental control of TV viewing: one for each measure of understanding of TV advertising. In addition to determine among which groups the true differences lie, other test was conducted. The Least Significant Difference (LSD) method was performed for the purpose


Study of the Relationship between Perception of Value and Price and Customer Satisfaction:

The Case of Malaysian Telecommunications Industry

Dr. Hishamudi Ismail and Dr. Ali Khatibi, Multimedia University- Cyberjaya- Malaysia



 The objective of this study is to examine the co-relationship between customer satisfaction, service quality and perception on value for leased line service in Malaysia telecommunication industry.   In conducting the survey, the authors distributed the questionnaire to 245 respondents by using three data collection techniques i.e. personal interview, telephone interview and mail survey.  Findings indicate that there is a relationship between the customer satisfaction and service value. The empirical findings in this study also indicate there is a significant relationship between overall customer satisfaction level and overall quality of service and the tested variable i.e. perception on the current price and the perception on the current value.  In this study, the authors suggest that in order to increase value of service, enhancement should be concentrated more on the service quality aspect rather than customer satisfaction.


How is Market Efficiency Disappeared? Comparing the Opening Position and Closing Position Simulation Results

Ching-Wen Lin, Takming Institute of Technology, Taipei, Taiwan

Dr.Kuang-Hsun Shih, Chinese Culture University, Taipei, Taiwan

Dr. Shaio Yan Huang, Providence University, Taichung Hsien, Taiwan



 This study intends to examine the market efficiency on the Taiwan Electronic Index (TEI) in terms of predictability of Neural Networks, and also attempts to compare the simulation results of using opening position and closing position. The neural trading system informs 14-15 transaction opportunities based on domestic and international information in the testing period. This investigation suggests that using opening position may reflect superior trading information, and that this information is diluted with the passage of time.


Business School Curriculum: Can we learn from Quantum Physics?

Steven Tippins, Ph.D., CLU, ARM, Roosevelt University, Schaumburg, IL



 This paper explores the development of the curriculum within business schools.  It posits that changes may be needed and suggests that the work within areas such as quantum physics may be a place to start the reevaluation. If you peruse the undergraduate catalogue at many colleges and universities striking similarities appear.  Beyond the nice pictures of students enjoying student life or having a meaningful conversation with a professor, the real similarities begin to reveal themselves when one looks at the curriculum.  Of the approximately 120 credits that a student must take to graduate why do most schools require the same courses?  Is business such a science that we know exactly what must be taught, how it should be broken up, and in what order?  One of the duties within the realm of academia is service.  It is not uncommon for a curriculum committee (or any variation of that name) to periodically look at the curriculum to see if it is appropriate for the student body in question.  Whether this task is internally driven by a desire to provide a good product or externally driven by the need to comply with accreditation guidelines, analysis such as this is good.  To paraphrase, an unexamined curriculum is not worth offering.  Many times one of the first questions that arises when curriculum review is broached is a form of “what is everyone else doing?”  Whether it is a formal survey of competitors or copying top programs, business school curriculum development can tend toward incestual.  The curriculum at many, if not most, schools may be exactly what is needed.  However, there may be ways of looking at what is taught and its overarching structure that may be helpful.  Some of the basic tenants that have been developed in the field of quantum physics may be helpful.  Before these concepts are presented a brief history of business school curriculum will be presented.


Ally Strategic Alliance with Consumers? Who Care?

Feng-Chuan Pan, Tajen Institute of Technology and I-Shou University, Taiwan



 While strategic alliance is widely adopted by firms to compete either in domestic or cross-national markets for various advantages, and the customer and consumers are viewed as the center of any marketing activities, there are none or few of researches place significant focus on the role of the customers/ consumers in the decision of strategic alliance. The author conducted a meta research and citation analysis on main academic literatures and found only a tiny fraction of researches involve customers / consumers in alliance related studies whether in domestic or international contexts. The author suggests the need to extensively and directly involve customer / consumer as the center in the research of strategic alliance, so as in real business world, particularly for those international alliances that normally cross over distinct cultures.


Knowledge Management Initiatives: Exploratory Study in Malaysia

Dr. Badruddin A. Rahman, Universiti Utara Malaysia, Malaysia



 A study on Knowledge Management (KM) initiatives was conducted on a sample of various categories of organization in Malaysia. The categories were companies listed in the Kuala Lumpur Stock Exchange (300 of a total of 500 companies), government Ministries and Departments (30), educational institutions (80), small and medium size industries (100), the electronic industries (150) and government-owned agencies (10). About 303 questionnaires were returned and the preliminary findings showed nearly half of the respondents were reporting that they already established formal knowledge management initiatives in their respective organizations. This was evident amongst organizations in the education sector, government own organizations and government departments and/or agencies. Nonetheless, the findings also showed that the Malaysian private sector was slowly catching up to meet the challenges of the competitive business environment.


Alternative Panel Estimates of Elasticities for Cigarette Demand in the U.S.

Su-Chen Yang and Dr. Yao-Hsien Lee, Chung-Hua University, Taiwan

Dr. Jian-Fa Li, Chin Min College, Taiwan




This paper presents a set of more refined estimates of demand for cigarettes in the U.S.  It was found that the dynamic fixed estimator (DFE) outperforms the pool mean group estimator (PMG) and the mean group estimator (MG) in the U.S. cigarette market from 1961 to 1997.  The estimated short-run price elasticity is -0.122 (from the DFE), and the long run price elasticity is -0.716 (from DFE) over the period from 1961 to 1997.  This provides better understanding if the price increases of cigarettes cover settlement costs in the future.  The elasticity of demand for cigarettes plays a crucial role in both the pricing decision of cigarette firms and the government policy to mitigate medical costs from cigarette smoking.   Literature abounds in estimating the price of elasticity (see Table 1).  The demand for cigarettes in the past was estimated either from time series data or from cross-section data (Lyon and Simon, 1968; bishop and Yoo, 1985; Keeler, 1993; Coats, 1995).  Without considering the specific state laws or changes in consumer tastes over time, biased estimations may result.  More recently, researchers have attempted to use the panel data approach to avoid the estimation problems facing either time series data or cross-section data (Baltagi and Levin, 1986 and 1992; Becker, et al., 1994; Keeler, et al., 1998; Baltagi, et al., 2000; Baltagi and Griffin, 2001). 


Purchasing Power Parity and the Base Currency Effect: A re-examination

Dr. Khalifa Hassanain, United Arab Emirates University, Alain, U.A.E.




This article reexamines the base currency effect for Purchasing power parity theory. The test is conducted using a newly developed nonlinear IV unit root test that accounts for cross correlation for panels made of twenty-one base currencies for industrial countries. We use annual data and allow for different dynamic structure over the free float era. While the choice of the base currency matters for the annual data, the week rejection occurs mostly with European currencies. The rejection is not strong using the German mark. The null is rejected even using the dollar and the yen as base currencies. Volatility appears to be the only significant explanation for the base currency effect. The IV test results show that cross correlation does matter for base currency invariance.


Perspectives in Consumer Behavior:  Paradigm Shifts in Prospect

Dr. Z. S. Demirdjian, California State University, Long Beach, CA

Dr. Turan Senguder, The Journal of American Academy of Business, Cambridge, Hollywood, FL



 Despite its adolescence, consumer behavior as a discipline has attained a crowning position in marketing.  Many professionals and academics characterize consumer behavior as the key to contemporary marketing success.  Over the years, various approaches based on social sciences have been proposed and applied to teaching and researching the consumer.  Prompted by their ever-increasing complexities, recently the interest in social sciences seemed to have waned.  Although there have not been seismic changes in the field, there have been some shifts in paradigms. As the discipline develops, one important question is to ask as to what approach to adopt for teaching and researching consumer behavior.  To broaden the underpinning theories of consumer behavior, paradigms outside the social sciences could very well be tapped for additional understanding the complex nature of the consumer.  Several frontiers of other sciences seem promising for the understanding the consumer.  As is explained in this paper, the prospects for an interdisciplinary approach outside the family of social sciences appears brighter than ever for thinking outside the “black box” (i.e., mind) and for contributing to its dynamism.


A Model for Web Server Security

Someswar Kesh, Ph.D. and Sam Ramanujan, Ph.D., Central Missouri State University, Warrensburg, MO



 Organizations are now increasingly dependent on their web servers for business as well as to disseminate both mission-critical and non-mission critical information.  The core and peripheral business of many organizations as well as their image depend heavily on their web sites that reside on their web servers. At the same time, incidents of attacks on web sites by hackers with a multitude of motives have increased significantly in recent years. It is therefore essential to secure web servers to the maximum possible extent.  This paper discusses various facets of web server security and presents a model for web server security based on an analysis of the threats and tools and technologies available to protect these web servers. 


Methods for Maximizing Student Engagement in the Introductory Business Statistics Course: A Review

Charles F. Harrington, Ph.D. and Timothy J. Schibik, Ph.D., University of Southern Indiana, Evansville, IN




Suggestions are offered to create a collaborative teaching environment where active learning is the primary method used to teach business statistics.  Students often claim to find the initial experience with business statistical analysis uninteresting, inapplicable, and uninspiring. The faculty-at-large whether from research universities, comprehensive colleges, or private institutions report frustration in integrating activities designed to invigorate and energize student engagement in first year business statistics courses.  Various alternatives to the lecture class format are suggested in an attempt to encourage instructors to try alternative pedagogies.  The intellectual and practical engagement of students in the undergraduate business statistics curriculum poses significant challenges to faculty regardless of institutional or student body characteristics.  Students often claim to find the initial experience with business statistical analysis uninteresting, inapplicable, and uninspiring. The faculty-at-large whether from research universities, comprehensive colleges, or private institutions report frustration in integrating activities designed to invigorate and energize student engagement in first year statistics courses.


From Industrial Revolution to Managerial Evolution: The Case of IBM Credit Corporation

Dr. Hui-Kuan Tseng, University of North Carolina at Charlotte, Charlotte, NC



 We ought to admit that we are living in a time of ever-changing. It is the first time in the human history that the humans are capable of producing mass information far more rapidly than they can absorb.  Humans have sped up the adapting process far beyond they can imagine. The rapid technological advancement has made the knowledge and information the key competitive advantages. The Quality Movement in 1980 brought to the consumers better quality products with lower prices.  The industry power is switched toward consumers ever since. The internationalizing of marketing and the overall raising of living standards brought opportunities on the one hand, and competition on the other. With the emergence of the economic powers in the Asia Pacific region, competition is increasing  globally. The global competitions, the prevailing of the Internet, and the soaring technology have a great impact on the conventional way of organization and operation. On the global scale, any managerial personnel with vision strive to discover innovative and competitive ways of management to adjust to the situation. The new industrial management models have been developed speedily. Nowadays, the participatory management, flattened organization, and empowerment have become the jargon of the industrial managers. A great number of companies strive to increase their competitiveness and efficiency.  The Industrial Revolution which first got its start in Great Britain changed the ways by how the world produced its goods.(1) 


 Developing New Markets for Turfgrass-sod in the United States

John J. Haydu, Ph.D., University of Florida, Mid-Florida Research and Education Center, Apopka, FL

Alan W.  Hodges, Ph.D., University of Florida, Food & Resource Economics Department, Gainesville, FL



 Three years of research examining market opportunities for turfgrass-sod was conducted in the eastern (1999), central (2000), and western (2001) regions of the United States.  A total of 1,248 firms, representing eight distinct Standard Industrial Classifications (SIC), were surveyed.  Data were analyzed by geographic region and type of business.  Results indicate that considerable differences exist across these categories with respect to market outlets, grass varieties used, and purchasing criteria of customers.  Market outlets have shifted dramatically in recent years from a direct selling approach (from the farm direct to the customer) to more indirect selling through large retail chains.  Major grass varieties used by consumers was largely a function of geographic location where climate restricts optimal growth, rather than problems associated with market outlets.  Primary purchasing criteria were product quality, followed by price, product availability, and delivery, although results varied somewhat by type of business.


Attrition of Agency in Real Estate Brokerage

Dr. Bruce Lindeman, University of Arkansas at Little Rock, Little Rock, AR



 In the past two decades, the agency function in real estate brokerage has evolved from representation only of sellers to include agency representation of buyers. This evolution has led to a variety of problems, especially the likelihood of conflict of interest when agents attempt to represent both buyer and seller in a transaction.  Because the legal considerations are controlled largely by state law, attempts by the states to resolve these problems have provided an interesting variety of “laboratory experiments”, none of which (so far) seems to have achieved a desirable solution. This paper includes a history of past developments, a summary of the current situation, and some reflections upon the implications of these problems


A Dynamic Econometric Modeling of the U.S. Rice Market

Dr. Sung Chul No, Southern University and A&M, Baton Rouge, LA

Dr. Hector O. Zapata, Louisiana State University, Baton Rouge, LA



 Over the past three decades, developments in time series analysis have brought new approaches for combining structural characteristics of market models with stochastic processes that better represent available data: structural econometric and time series analysis (SEMTSA) and structural vector autoregressive model (SVAR).  The paper provides an empirical evaluation of these two approaches for the U.S. rough rice market.  Transfer functions, derived from the SEMTSA model, were estimated.  The turning point, RMSE, and MAPE evaluation revealed that the TF model provide accurate forecasts and greatly reduces forecasting errors relative to the existing structural and ARIMA models for the fundamental rice market variables in an out-of-sample period (1990-1999).  The research also addressed the empirical usefulness of combining structural-statistical properties of economic data in commodity modeling.  A comparative analysis of the impulse response functions revealed that the estimated effects in the VAR model of specific behavioral shocks often do not appear economically intuitive. 


From General System Theory to Total Quality Management

Dr. Te-Wei Wang, Florida International University, Miami, FL



 This paper evaluates the theoretical ground for total quality management (TQM). General systems theory (GST) is the referenced theoretical framework. TQM and GST are contrasted side by side from two perspectives: theoretical assumptions and implementation methods. The comparison between system approaches and TQM practices show that TQM is a true system approach. TQM provides principles and techniques implement GST. TQM utilizes cybernetic principle to deal with traditional efficiency and productivity problems. It also prescribes many practical methods and technique for building a learning organization.  TQM has long been criticized by the lack of guiding theories (Sitkin et al, 1994). Starting in the 1990s, many researchers have tried to put TQM under rigorous theoretical examination. For example, Grant, Shani, and Krishnan (1994) compared TQM with traditional management theories. Hackman and Wageman (1995) accessed the coherence, distinctiveness, and likely perseverance of the TQM philosophy. Dean and Bowen (1994) also found substantial overlap between TQM and management theory.


Compensation Structure, Perceived Equity and Individual Performance of R&D Professionals

Jin Feng Uen and Shu Hwa Chien, National Sun Yat-sen University, Taiwan, R.O.C.



 In order for individuals to improve their work performance they must be sufficiently motivated and compensation is the most important source of motivation for professionals. A major issue in designing a compensation structure for such individuals is the equity they perceive they are gaining. For this reason, this research discusses the relationship between compensation structure, perceived equity and individual performance. After surveying 258 R&D professionals from high-tech organizations in Taiwan, we put forward the argument that skill-based pay and job-based pay influence R&D professionals into believing they are receiving an enhanced equity which will then lead to a better performance on their part. High-tech organizations succeed through a combination of innovation, conceptualization, and commercialization of new technological ideas (Newman, 1989). They emphasize techniques in business strategy; and investment in R&D activities accounts for a relatively high proportion of their total expenditure (Milkovich, 1987). It has long been recognized that R&D professionals function as a separate occupational group in manufacturing organizations with a remit to provide those organizations with a competitive edge.


The Content Continuum: Extending the Hayes & Wheelwright Process-Product Diagonal to Facilitate Improvement of Services

Dr. Tony Polito, East Carolina University, Greenville, NC

Dr. Kevin Watson, University of New Orleans, New Orleans, LA




The explanatory power of the Hayes & Wheelwright Process-Product Matrix, as well as the diagonal embedded within it, fails under counterexamples of mass customization. When the diagonal is extended into the realm of service products using Schmenner’s Service Process Matrix, an expanded framework emerges. That framework, herein coined The Content Continuum, appears to be highly explanatory and finds good fit with many existing service classification schemes.  A number of Original Levi's retail outlets offer made-to-order women's bluejeans on a mass customization basis. Customer measurements are entered at the POS terminal and directed to a numerically controlled cutting device at the company's Tennessee plant. Levi's customization strategy effected a 300% increase in sales and a simultaneous reduction in inventory at introduction (1994a). Toward further improvement, the company has co‑developed a point‑of‑sale "body scanner" expected to decrease response time and improve the quality of the process (1994b). The application is not unique; Tom Peters notes a similar process for the tailoring of suits at Saks Fifth Avenue (Peters, 1987). Anderson windows, Motorola pagers, and Hallmark Create-A-Card vending machines provide examples of mass customization from other industries.


Japan’s Liquidity Trap: An Empirical Analysis

Sujata Jhamb, IILM, Institute for Integrated Learning in Management, New Delhi, India




The liquidity trap is a phenomenon which may be observed when the economy is in severe recession or depression. The real GDP stops growing and the price level are stable or falling. The nominal interest rates are close to zero and cannot decline further, the speculative demand for money become infinitely interest elastic. Any increase in supply of money will not be used to purchase government bonds but will be hoarded as idle cash balances. Money and short-term government securities become perfect substitutes as the yields from holding both are zero. In such a scenario only policies other than monetary policy can help raise output and employment.  This paper studies the prolonged recession in Japan during the period of the nineties and finds that liquidity trap has been one of the main reasons for ineffective monetary policy leading to a limping Japanese economy. The current liquidity trap can we treated as ‘partial paralysis’ of the Japanese financial system. Saving behaviour is important because it helps to determine the evolution of future consumption opportunities. Japan’s post war savings behavior can be viewed in this light. Saving has enabled Japan to increase stock of assets rapidly, increase worker productivity, rapid rates of economic growth and raise standard of living.  A comparison of Japanese gross domestic savings with other major industrial countries for the 30 year period - 1970-2000 shows us that, there are wide disparities in saving behavior across countries and by large margins: The other countries are clustered in terms of their saving rates, with U.S. & U.K. at low end of the spectrum. This shows that Japan’s saving rate is high, both in absolute terms and relative to other countries. 


Teaching a Research-Oriented, Graduate Global Marketing Course to Adult Learners in a One-Month Format

Dr. Juan España, National University, La Jolla, CA



 This paper presents the author’s experience teaching a heavily research-oriented, applied graduate course to a class of working adults in a one-month format. A common concern among instructors of research-oriented courses in a compressed format is that the term length might not allow for a thorough treatment of the theoretical issues involved and their application to real-life situations. As the author explains, appropriate coverage can be achieved within the framework of a one-month course format. The key to success is the early use of efficiency-enhancing mechanisms aimed at, among others, upgrading students’ library and research skills at the very beginning of the course, facilitating and jumpstarting students’ research and ensuring high levels of student participation.


Predicting Impending Bankruptcy Using Audit Firm Changes

Dr. Yining Chen, Dr. Ashok Gupta, and Dr. David L. Senteney, Ohio University, Athens, OH



 Unlike prior research, we investigate the incremental explanatory power of auditor changes beyond the information conveyed by traditional financial statement ratios in predicting bankruptcy. We find that auditor changes are important in predicting impending bankruptcy and convey important information not reflected in traditional financial statement ratios alone.  In fact, we find compelling evidence that directional knowledge regarding auditor changes such as changing from large accounting firms to small accounting firms provide incremental explanatory power in predicting impending firm failure beyond what is conveyed traditional financial statement ratios and auditor changes considered jointly.  Although the existing relevant literature provides no empirical evidence in this regard to our knowledge, this result is intuitive as one motivation for clients to change audit firms is to seek less conservative professional auditors as smaller audit firms may be as a strategic response to manifestation of the financial statement effects of bankruptcy.


Financial Crisis in Emerging Markets: Case of Argentina

Dr. Balasundram Maniam, Dr. Hadley Leavell, and Vrishali Patel, Sam Houston State University, Huntsville, TX




In the past ten years, several emerging markets experienced severe financial crises: Mexico in 1994, Asia in 1997, Russia in 1998, Brazil in 1999, and Argentina in 2001. The patterns in these regions/countries are markedly similar. This paper will discuss the reasons for the financial crises in emerging markets with a focus on Argentina. The paper will discuss the policies of the Argentine government before the crisis, the underlying factors that led to the crisis and the resulting effects of the crisis. Finally the paper will discuss some of the recommendations to solve Argentina’s problems.  The mid 1990’s was marked with severe crises in a number of emerging markets. It started in 1994 with the Mexican crisis.  Asia’s devastating financial crisis hit the global market, followed by Russia’s and Brazil’s financial crises in subsequent years.  Most recently, Argentina has been drastically impacted financially.  Most of these financial crises started with a currency crisis. The common features of the financial crises include the vast appreciation of domestic currencies, skyrocketing interest rates and large capital outflows.


Measuring and Reporting of Intellectual Capital Performance Analysis

Dr. Junaid M. Shaikh, Curtin University of Technology Malaysia




This paper reviews several internal and external measures of intellectual capital. Internal measures – such as the Balanced Scorecard – are used to manage, guide and enhance a firm’s intellectual capital so it can be leveraged to generate greater value for the company. External measures, which include market-to book value, Tobin’s Q and Real Option Theory focus on investors and others attempting to value a company (provides a signal to external parties). Here, greater emphasis is placed on external reporting and consequently is subject to accounting standards and financial regulations - although, a specific accounting standard that adequately addresses intangibles has yet to be developed. There is indeed much to support the assertion that IC in the new century will be instrumental in the determination of enterprise value and national economic performance. Stemming from this awareness of the value of know-how is a drive to establish new metrics that can be used to record and report the value attributable to knowledge within an organization.


Executive Compensation Contracts: Change in the Pay-Performance Sensitivity within Firms

Dr. Jinbae Kim, Korea University, Seoul, Korea



 Contract theory predicts that the optimal compensation contracts depend not only on firm-specific factors but also on CEO-specific factors as well. However previous research in compensation generally focuses on the effects of firm-specific factors on the pay-performance sensitivity in compensation contracts. Using compensation data on 52 firms that have two CEOs in the sample period who have served for at least eight years, this paper investigates the changes in the pay-performance sensitivity within firms at the time around the CEO departure. Empirical evidence shows that firms change their pay-performance sensitivity after the CEO leaves, in a manner consistent with predictions from the contract theory.


Political Constraints and the IRS’ Tax Enforcement Actions

Dr. Vijay K. Vemuri and Prof. Donald P. Silver, Long Island University, Brookville, NY



 The taxpayer compliance research mainly focuses on the taxpayers’ compliance decisions. However, taxpayer compliance is influenced by both veracity of the taxpayers and the enforcement strategies of the IRS. The perception of excessive coercive enforcement procedures may result in curtailment of enforcement authority of the IRS. The political processes available to oppose and reform enforcement policies differ for individuals and corporations. The opposition of corporations tends to be swift, well orchestrated, and concentrated on a particular enforcement issue. On the other hand, the opposition of the individuals may accumulate into taxpayer antagonism and may call for extensive reform of tax administration including enforcement policies. This paper analyzes the civil penalties assessed and abated to examine differences in penalties on individuals and corporations for the years 1978 to 2002. The results indicate that systematic differences exist in the incidence and the amount of penalties for these two groups. Further, time series of penalties for individuals exhibits significant auto correlation, suggesting a possibility of implicit budgets for penalties.


Asymmetry in Farm-Milled Rice Price Transmission in the Major Rice Producing States in the U.S.

Sung Chul No, Southern University and A&M College, Baton Rouge, LA

Dr. Hector O. Zapata, Dr. Michael E. Salassi, Dr. Wayne M. Gauthier, Louisiana State University, Baton Rouge, LA




Over the past three decades, agricultural economists have tested whether the retail price response to price increases at a lower market level is similar to the retail price response to price decreases at the same market level. The majority of the empirical studies have focused on farm-retail price transmissions.  However, the price transmission effects between the farm and milling level are as important as the price transmission effects between the farm and retail level, especially for rice.  Milling transforms rough rice into the more desired milled rice. It is the milled price that transmits changes in farm prices to the final consumers. Thus, the paper tested the null hypothesis that decreases in milled prices resulting from decreases in farm prices are as fast as increases in milled prices resulting from increases in farm prices in the major rice producing states, Arkansas, California, Louisiana, and Texas.  Adopting a newly developed econometric methodology, momentum-threshold autoregressive model (M-TAR), the paper found strong evidence indicative of symmetric pricing behavior for milled rice in the states of Arkansas, California, and Texas. 


Application of Thermodynamics on Product Life Cycle

Dr. Kuang-Jung Tseng, Hsuang Chuang University, Hsin Chu, Taiwan, ROC




Thermodynamics is a physical science deal with the interactions of matter and energy.  It contains the law of the energy conservation and the law of entropy that tends to increase in a closed system. The author has applied these laws to constrain the processes by which raw materials are transformed into consumable goods and the goods are distributed afterwards. The size of the sales force can be determined by introducing the temperature concept into thermodynamics to represent hot or cold consumable goods. With the concept that entropy increases in a closed system, which is similar to the distribution of consumable goods into the system, an ideal innovation of the product life cycle (PLC) can be determined.  In order to modify the phenomenon of the product life cycle, a parameterα,  which relate to the management efforts as well as the development and services efforts , is introduced. As a result, the PLC curve can be manipulated due to the value of α. The parameterα is related to the product quality, sales services and the degree of newness of the application of the product.


Regionalization and Specialization: A Theoretical Contribution

Dr. Charbel M. Macdissi, CEDE, University of Antilles-Guyane, Guadeloupe



 The study of the regionalization and specialization deals with the behavior of a country inside the supra-national bloc and the correlations that may exist between the fact to belong to these institutions and the development of exchanges between their countries members. The institutional frame can take the form of common market agreements, cooperation or integration but also of commercial arrangements among the states. Thus, can we consider the institutional factors and the proximity as determinants of the commercial exchanges?. Thanks to the institutions and the common agreements between the countries of an area the intra-regional cooperation can and must expand also to inter-regional relations. However, this approach raises many questions: can we talk about a regional comparative advantage?. Must one be affiliated to one or several supra- national institutions?. Isn’t there sometimes a contradiction between the objectives followed by these different institutions?. How can we proceed to the intensification of intra-regional exchanges? How can we choose the specialization in order to develop the cooperation?. What kind of barriers could delay or even stop the regional cooperation? 


Critique and Insight into Korean Chaebol

Dr. Jonathan Lee, University of Windsor, Windsor, Ontario, Canada



 This paper closely examines the management practices of one of Korea’s largest chaebols. Critique of this chaebol is based on interviews with number of managers still working for the company. It is clear from the discussion that there are many challenges that face the chaebols; however, these challenges are not necessarily unique to Korean chaebols. South Korea (Korea) is the 11th largest economy in the world in terms of gross national product and 13th largest trading country as of 2002 (1). It has been and remains one of the fastest growing economies in the world. Many of the Korean chaebols or conglomerates are well known throughout the world, such as Samsung, Hyundai, LG and others. Although many consumers do not realize that they are Korean companies, some of these companies are among the world’s largest producers and exporters of memory chips, and they rank among the largest and most efficient steel manufacturers and shipbuilders in the world.


Golf, Tourism and Amenity-Based Development in Florida

Dr. Alan W. Hodges and Dr. John J. Haydu, University of Florida, Gainesville, FL



 Settlement patterns in the United States are increasingly based on environmental, cultural and recreational amenities and the perceived quality of life, rather than economic opportunities. This is especially true for the retired population, who are not dependent upon earned income. The state of Florida has experienced very rapid growth over the past 50 years due to tourism and amenity-based development. Many residential developments now feature golf courses and other recreational amenities. Golf is a highly popular recreational sport in America, with participation by over 20 percent of the adult population. In Florida, there are currently over 1300 golf courses, more than any other state.  Golf is an important activity associated with the large tourism industry in Florida. Economic characteristics and regional impacts of golf courses in Florida in the year 2000 were evaluated based upon survey data together with other published information and a regional economic model constructed using Implan. Survey results indicate that residential developments were part of 54 percent of Florida golf courses, with some 756,000 residential units having a total value of $158 billion. Golf industry employment was 73,000 persons. The book value of assets owned by golf courses was $10.8Bn, including land (58%), buildings and installations (26%), vehicles and equipment (10%) and golf course irrigation systems (6%).


Explaining Embraer’s Hi-Tech Success: Porter’s Diamond, New Trade Theory, or the Market at Work?

Dr. Juan España, National University, La Jolla, CA



 This paper analyzes alternative theories of competitive advantage and their ability to explain the commercial success of the Brazilian aircraft manufacturer EMBRAER in world markets. A survey of EMBRAER’s history reveals a company created by the Brazilian government out of national security considerations but able to transform itself over time into a vibrant commercial enterprise. Key to this successful transformation was the 1994 privatization and the formation of a number of strategic and operational alliances with international partners. EMBRAER’s case seems to transcend the neat demarcation lines drawn by adherents of existing competitive advantage theories, raising important questions about the conventional wisdom on the issue of how to create and sustain competitive national industries or firms.


Investigating and Modelling GATS Impacts on the Developing Countries: Evidence from the Egyptian Banking Sector

Dr. Mansour Lotayif, University of Plymouth Business School, Plymouth, Devon, UK

Dr. Ahmed El-Ragal, Arab Academy for Science and Technology, Alexandria, Egypt



 Previous research studies focused on investigating the impact of GATS (General Agreement for Trade in Services) on the developed countries, whilst few studies investigated these impacts on the developing countries. This paper will investigate the following three main objectives: 1- To identify the impact of GATS on the Egyptian banking sector. Chi-square Goodness of Fit will be used for the purpose of defining whether the GATS impact on the Egyptian banking sector is positive or not. 2- The paper will elaborate the GATS impact by exploring the dependency relationship between twenty-five GATS impacts and seven demographic variables, for which Correlation analysis will be utilized. 3- Causality relationships are to be examined throughout modelling the variables that affect the perception of the GATS impacts (i.e. dependent variables), Multiple Regression (MR) will be used in this context. Compiling evidence from the Egyptian banking sector revealed that the perception of each GATS impact is affected by five of the predictor variables. These five are bank type (local or foreign), position of respondent, respondent educational level, respondent experience, and bank experience.


The Behaviors & the Statistical Properties of Emerging Markets’ Indices & Their Impact on Estimated Stock Beta: The Case of ASE

Dr. Mahmoud A. Al-khalialeh, Kuwait University, Safat, Kuwait



 This study examines the behaviors and the statistical properties of two alternative market indices introduced by Amman Stock Exchange (VWI & EWI), and their impact on estimated stock beta. The study predictions are examined by using 2206 observations of daily market index over a nine-year period (1992-2000). The study’s findings indicate that the mean of EWR is notably and significantly higher than the mean of VWR for most years and time intervals examined in this study. Additionally, findings suggest that the two market returns tend to get closer during bullish market conditions and diverge widely during bearish conditions. The variances of the two market returns vary significantly in the last four years. The implications for estimated beta are examined by estimating beta for a sample of 58 companies listed in ASE, using the two market indices and based on 246 daily index observations during 1998. Furthermore, the results indicate that the two market returns produce dissimilar betas; the market return with the larger variance (VWR) produces significantly lower beta than the market return with the lower variance (EWR)


Contact us   *   Copyright Issues   *   Publication Policy   *   About us   *   Code of Publication Ethics

Copyright 2000-2016. All Rights Reserved