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

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

Outsourcing:  Its Benefits, Drawbacks and Other Related Issues

Dr. Prasad Kakumanu and Dr. Anthony Portanova, University of Scranton, Scranton, PA

ABSTRACT

Offshore sourcing for IT software applications and maintenance has become very popular over the last ten years.  It started during the dot com boom years which overlapped with the Y2K situation.  These two conditions created extra demand for IT people which exceeded the available work force in this country.  Afterwards the dot com bust which accompanied an economic slow down drastically reduced the budgets for IT.  Companies looking for ways to develop new software applications and to maintain existing applications within their budget realized the opportunity to send work overseas.  The reason this looks very promising for an organization is the availability of talented IT workers at much lower cost and the maturity of the telecommunication networks and their applications on a world wide basis.  This is also aided by the improved methodology in world wide sourcing and global project management, service level agreements, and confidentiality contracts.  In this paper we discuss the benefits as well as the risks in offshore outsourcing and how public officials are reacting to the IT outsourcing phenomenon.

The Importance of Work Experience to Accountants’ Professional Development

Dr. Keith A. Moreland and Dr. Madhukar Angur, University of Michigan-Flint, Flint, MI

ABSTRACT

During the last decade there has been a shift in CPA licensing requirements toward increasing the education component, while sometimes decreasing work experience requirements.  This study finds that work experience continues to play a vital role in CPAs’ professional development.  In structured interviews with 220 CPAs in a state with a 150 hour education and no work experience requirement and a state that had a 120 hour education and two-year work experience requirement, we find that new and experienced CPAs in both states view work experience as contributing vitally to key professional competencies.  These competencies include key business skills such as communication and computer skills and accounting technical competencies such as financial reporting, accounting information systems, and taxation.  The results of this study suggest that experienced CPAs continue to play a key role in the professional development of new accountants.  Despite more emphasis of university education in licensing requirements, experienced accountants must continue to identify, develop and supervise assignments and roles tasks that enable new accountants to develop their full professional potential.

Diagnosis and Remedies for Deviant Workplace Behaviors

Dr. Steven H. Appelbaum, Professor of Management and Barbara T. Shapiro, MSS

John Molson School of Business, Concordia University, Canada

ABSTRACT

The impact of deviant behaviours—behaviours that violate organizational norms, policies or internal rules—on organizations are examined. The reasons why people engage in such behaviours are explored, along with some of the reasons organizations—toxic organizations—allow such behaviours to thrive within their walls. Possible solutions to overcome such problems in the workplace are also examined. It is proposed that the survival of an organization in the face of deviant employees is possible with a remodelling an organization’s norms, attitudes and social values to a specific organizational culture centered around important ethical core values.  When normal work behaviour goes outside the norms of the organization, its consequences are far-reaching and affect all levels of the organization including its’ decision-making processes, productivity and financial costs (Coccia, 1998).Researchers have given these behaviours many different names including workplace deviance (Bennett & Robinson, 2003), counterproductive behaviour (Mangione & Quinn, 1975), and antisocial behaviour (Giacolone & Greenberg, 1997).  In essence, behaviour is deemed deviant when an organization’s norms, policies, or internal rules are violated by an individual or group, and threatens the welfare of the organization or its constituents (Robinson et al., 1995). 

Optimality Principles and Posterior Information as Decision Making Factors in Internet Marketing

Dr. Boris Stavrovski, City University of New York, New York, NY

ABSTRACT

Right selection of optimality principle and different ways to incorporate posterior information are shown to be crucial for Internet marketing success. Nine possible formalizations for short-term Decision-Making Rules (DMR) are considered for optimal resource allocation in Internet marketing. Three of them are using only a priori data, three – are using posterior data but forfeited any memory of the process, and three – are also using posterior data altogether with some adaptation features. Each of the groups is formed by three DMR – an optimal guaranteed DMR, an optimal in average DMR and a physical mix of DMR, using an optimal in average randomization. Some specific features of those rules are analyzed and compared alongside with simulation of optimal use frequencies for each DMR delivering nontrivial results in an Internet marketing operation. Surprisingly enough seven from nine offered DMR has found a niche of optimal use under some combinations of parameters for a simple model of Internet marketing operation introduced.  Internet marketing delivers a sound example of an electronic commerce activity that includes sharing of business information, maintaining of business relationship, and conducting of business transactions by means of telecommunication networks (Zwass, 2003). There is a common understanding among marketing practitioners (and scholars as well) that the right resource allocation in marketing constitutes one of the most complicated problems involved in making it effective and efficient at the same time. ‘Recent work has established that marketing investments in advertising, promotions and product improvement can have a long-term impact on sales, and therefore cash flows and profits. On the other hand, such marketing investments are costly and may have a negative impact on short-term profit streams’ (Dekimpe, 2000).

The Effects of Institutional Investors in the Retail Industry

Dr. Byron Hollowell, Penn State University, Scranton, PA

ABSTRACT

Using an agency theory approach, this study examines the effectiveness of agency controls to converge managerial and shareholder interests. I specifically examine the relationship between institutional shareholder monitoring and shareholder wealth gains in the retail industry. I find that indirect agency controls, especially the external monitoring provided by institutional owners, are positively and significantly related to firm performance over longer performance time horizons.  Furthermore, I find evidence to support the disciplining effects of direct controls, such as incentive based executive pay packages, to help force the convergence of managers’ and shareholders’ interests.  Monitoring by institutional shareholders is a mechanism that has developed to resolve agency problems between corporate managers and shareholders.  Some researchers believe corporate boards generally fail in their responsibility to monitor management and guide their companies (ALI, 1987 and Dunn, 1987).  Others, however, argue market pressures and concerns for reputation will lead directors to fulfill their duty (Fama and Jensen, 1983).  Yet, whether the presence of institutional investors encourages firm managers and corporate boards to enhance firm performance remains an important and unresolved empirical question.

Determinants of the Percent of the Population Enrolled in HMOs

Gigi M. Alexander, Dr. Richard J. Cebula, and Dr. Yassaman Saadatmand

Armstrong Atlantic State University, Savannah, GA

ABSTRACT

This study endeavors to identify key factors influencing interstate differentials in the percentage of the population enrolled in HMOs. Among other things, the cross-section analysis finds the percentage of a state’s population enrolled in HMOs to be a decreasing function of the state’s unemployment rate, the percent of the state’s population at or below the poverty level, and the percentage of the population in the state that filed a federal personal income tax return that included a Schedule C (as a proxy for self employment and independent contractors). In addition, the study finds the percentage of a state’s population enrolled in HMOs to be an increasing function of the percentage of the state’s labor force that is unionized and the state’s female labor force participation rate. The analysis also considers as additional explanatory variables the percent of the population that is black, the percent of the population that is Hispanic, and median family income. These variables do not appear to play a significant role in explaining HMO enrollments.  In the United States, the provision of healthcare and the workings of healthcare markets have attracted considerable interest in recent years. This interest covers a broad spectrum of topics, ranging from hospital capital costs to healthcare inflation to markets for healthcare coverage/insurance (Burstin [1998-99], Cebula [2006], Chirikos [1998-99], Daniels and Gatsonis [1999], deMeza [1983],  Dushi and Honig  [2003], Frick and Bopp [2005], Gaynor and Haas-Wilson [1999], Glied [2003], Goodman and Stano [2000], Gruber [2003], Harris and Keane [1999], Holahan, Nichols, Blumberg, and Shen [2003], Jantzen and Loubeau [2003], Nyman [2003], Swartz [2003]). Of these issues, that of healthcare coverage/insurance has increasingly attracted the attention not only of the media but also of scholars across a variety of disciplines. Dushi and Honig [2003, p. 252] attribute this high level of interest to the fact that the “…decline in health insurance coverage over the last two decades is a matter of national concern.” Indeed, Swartz [2003, p. 283 ] observes that “At least 41 million Americans are currently without health insurance (of any kind) in any given month…”

The Impact of Self-Presentation by an Auditor on Investment Advisors’ Trust of the Auditor

Dr. Herbert W. Pollard, King College, Bristol, TN

ABSTRACT

Self-serving attribution theory suggests persons will acknowledge personal responsibility for successful activities, but the same persons will reject personal responsibility for a failure. In the event of a public failure, the actor will offer self-serving public statements in an effort to influence attitudes and behavior of observers. When this attribution process is employed by a high-status person in an effort to protect public impressions, Lee and Tiedens (2001) proposed that the self-serving behavior may actually damage the public impression of the high-status person. This study examined the impact of a self-serving public statement (self-presentation) by an auditor on investment advisors’ trust of the auditor. The study found that the self-serving statement lowered trust of the auditor.  The term self-serving attributions describes a phenomenon in which persons acknowledge personal responsibility for successful activities, but the same persons reject personal responsibility for a failure. A successful activity is described as a consequence of internal actions. A failure is described as a consequence of external circumstances (Weiner, 1972, 1980, 1986). The motivation that initiates self-serving conclusions has been long debated (Heider, 1958; Kelley, 1973). Nonetheless, the existence of self-serving behavior is well documented (Campbell & Sedikides, 1999; Zuckerman, 1979).

Dual Derivatives Spreading and Hedging With Evolutionary Data Mining

Dr. Hsing-Wen Wang, National Changhua University of Education, Changhua, Taiwan

Abstract

The Black-Scholes options pricing model is widely applied in various options contract and derivatives, including contract design, trading, assets evaluation, and enterprise value estimation, etc. Unfortunately, this theoretical model limited by the influences of many unexpected real world phenomena caused due to six unreasonable assumptions. If we were to soundly take these phenomena into account, the opportunities to gain an excess return would be created. Besides, many literature is available on derivatives pricing via data mining technique such as neural networks, However, little attention has been paid to the dual derivatives spreading and hedging, especially the dual derivatives. This paper therefore combines both the remarkable effects caused by the implied volatility smile (VS) and the tick-jump discrepancy (TJD) between the underlying and derivative prices to establish a three-phase derivatives spreading and hedging model using the Evolutionary Valuation Neural Networks (EVNN). Via the empirical evidence from the warrant market in Taiwan, it is shown that the EVNN model with spreading and hedging operations are superior in terms of performance to the original Black-Scholes-based ones. The EVNN model is found to be suitable for application to various options markets as the valuation factors are modified. This paper helps to integrate the theoretical model with important practical considerations.

An Agency Theoretical Perspective on the Share System of Crew Remuneration and the Crew’s Optimal Effort

Dr. Yao-Hsien Lee, Yi-Lun Ho and Chin-Chen Chen, Chung Hua University, Taiwan

Dr. Ching-Ta Chuang, National Taiwan Ocean University, Taiwan

ABSTRACT

Crew labor force is one of the most important inputs for fishing operations. Previous studies indicate that the share system of crew remuneration has an important effect on crew's optimal effort. Using the agency theory approach, this paper investigates the factors influencing the crew's optimal effort and the share rate. It incorporates the crew’s performance and the uncertainty of fish stock into the traditional share rate model. It shows that (i) increases in the price of fish, the degree of risk tolerance and the job satisfaction level raise the crew’s optimal effort, (ii) increases in the degree of risk tolerance and job satisfaction level increase the optimal share rate of the crew, while an increase in the uncertainty of fish stock reduces the share rate of the crew, and (iii) the share system that includes the fixed wage as well as a share of net proceeds will encourage the potential crew member to join a vessel.  In addition, implications of the empirical result of determining the share rate between the crew and the vessel owner in the far-sea fisheries industry of Taiwan are also discussed.

Teacher Evaluations and Grades: Additional Evidence

Dr. Tom Moore, Georgia College & State University, Milledgeville, GA

ABSTRACT

Numerous studies have attempted to determine the characteristics of effective teaching.  Many of these studies have concluded that student evaluations of teaching (SET) are reliable and robust indicators of teaching effectiveness.  Most studies find that evaluations are difficult to manipulate by assigning higher grades or reducing course requirements for students.  This empirical study finds that the teaching methods employed by the professor are the most important component to teaching effectiveness.   Administering fair examinations and treating students with respect were additional statistically significant variables.  Actual grades given by the professor and anticipated grades earned by students were not statistically significant in any model specification.   Student evaluations of their teachers and professors (SET) have served as the basis for numerous studies in the teaching literature (Cashin, 1995).  Importantly, most of the studies confirm that evaluations are generally valid and reliable and serve as good predictors of how much students actually learn in class (Cohen, 1981).  Student evaluations have been shown to be more robust predictors of performance than colleague ratings or other forms of peer review (Cashin, 1995). Student evaluations have also been shown to be statistically reliable and consistent over time. Surprisingly, students tend to give higher ratings to professors who teach academically rigorous courses (Marsh, 1984).  Students’ prior attitudes toward the course material and the level of enthusiasm and class preparation by the professor have also been found to have a positive significant impact on evaluations (Marsh, 1984).  The time of day the class section is taught and the physical attractiveness of the professor have been found to be insignificant in most studies.

The Application of Knowledge Management and Customer Relationship Management of ROC Government

Dr. Li-Hsing Ho and Chen-Chia Chuang, Chung Hua University, Taiwan

ABSTRACT

The advent of the knowledge-base economy had fostered a rapid transformation of the traditional economy market structure; hence, enormous reforms had been noted in every aspect of the economy, from market demand, production methods, marketing techniques, to modes of transaction. Traditional production practices, marketing techniques and conditions no longer follow a fixed model or necessary moneymaking pattern; as a result, innovation and reform had superceded productivity and taken more significant roles in terms of economic development. Thus, knowledge becomes the foundation and core of the new economy of the 21st Century. The war driven by the knowledge-base economy and pivoting around reforms has slowly taken shape, as well as forced a change in the competition and liaison between nations, between governments and enterprises, and between governments and their people. The most evident trend in this new course is that the important player is the entity that could control the customer.  Other major concerns of the business and government sectors in this regard include the understanding and ascertainment of the Customer Relationship Management of the feasibility of the theories and practical application of the construction models, the effective utilization of information technology auxiliary concepts, the analysis and understanding of customer demands, the understanding of the capacity of the internal customer support departments of enterprises for customer service purposes. The studies aim to upgrade the customer service efficiency and capacity of the various departments of an enterprise, and through the resolution of problems that experience could not accumulate or transfer, reduce the service manpower and costs of enterprises.

Educational Marketing of Transnational Education in Asia

Dr. Jack Fei Yang and Dr. Ching-Mei Hsiao, Hsing-Kuo University, Taiwan

ABSTRACT

Whether from an economic, political, or social point of view, higher education has been a key to raising individual standard of living and overall quality of life. For many underdeveloped countries, there is a strong need for educational opportunities from institutions in developed countries committed to international service. Higher education leaders need to have more international visions of service; education leaders in highly industrialized nations need to integrate international and intercultural dimensions into teaching, research, and service (Bloom, 2002; IAU, 2003a).  In 1995, the World Trade Organization (WTO) liberalized trade in educational service through the General Agreement of Trade in Service (GATS), the first legal trade agreement that focused exclusively on trade in services (WTO, 2003). These agreements have been brought about in part because of the demand for educational opportunities and services among different nations and institutions. Education is one of the 12 service sectors covered by GATS. There are 12 service sectors including business, communication, construction and engineering, distribution, education, environment, financial, health, tourism and travel, recreation, cultural and sporting, and transport (Knight, 2002 ; Varoglu, 2002; WTO, 2003). GATS proponents have believed that GATS can provide economic gains and greater student access to help meet increasing educational demands (Knight, 2002).

The Study on the Vitality Index of Organization for an Air Conditioning Factory

Dr. Shing-Ko Liang and Hsiao-Chi Ling, Doctoral Student, National Chiao-Tung University, Taiwan

Jin-Jung Huang, Merck Display Technologies Ltd.

ABSTRACT

The research introduced the concepts of “life” and “death” into analyses and diagnoses of operation of the organization and constructed an index of evaluation of “vitality” to provide operators with a different perspective to the evaluation model. The exploration of conception of vitality index of organization will help people inside and outside of the organization to evaluate it. Like a doctor who examines human body, this research could find the reason why the organization is underperforming and take remedial action.  The results found that by taking advantage of Analytic Hierarchy Process (AHP) to analyze, we could obtain weighted indexes of evaluation of vitality and figure out importance and orders of individual systems for maintaining case life and understand the extent to which the functioning of individual systems can provide operators with a reference.  In recent years, the conditions for the survival of business operations have been fluctuating. In the past, the philosophy of business operation was that they input resources and use them in the most effective way and improve productivity. Then they plan strategies to secure competitive advantages and strengthen competitiveness over limited resources.  With the increasing number of factory closings and the deteriorating environment of operation, the business management should not only emphasize “productivity” and “competitiveness” but also consider if there is any better benchmark for evaluation and improve the operation. Therefore, maintaining sustainable survival should be an urgent topic for each business organization. Sing-Ko (1998, 2002) argued that the two concepts of “system development” and “vitality” should be considered in pursuing an organization’s sustainable existence.

Cultural Diversities Between Singapore and Australia:  An Analysis on Consumption Behavior

Kritika Kongsompong, Ph.D., Chulalongkorn University, Bangkok, Thailand

ABSTRACT

This study investigates the potential differences in consumer behavior in two cultural settings.  Of particular interest, the research investigates the relationship between the amount of social influences that occurs in purchasing decisions and people’s orientation toward locus of control.  This construct has widely been recognized as a factor capable of explaining important dimensions of consumer decision making.  The results show that men and women from the collectivist country (namely Singapore) exhibit more external locus of control tendencies than men and women from a typical individualist country (Australia).  Thus, the latter group is found to exhibit a greater degree of internal locus of control in buying situations.  This study also reports that Singaporean men and women are more responsive to social influence in a hypothetical buying situation than that of their Western counterparts.  Managerial implications are discussed and direction of future research is also recommended.   There has been an explosion of research on a variety of consumer behavior topics over the last twenty years.  The topic that is highly of interest in the past few years, however, concerns the elements that may effect purchasing decisions.  Typical buying decisions are subject to influence from a variety of sources:  biological, personal, commercial, public and personal experiential.  The relative impact of these sources will vary based on several factors, some personal to the consumer, others related to the product/service and the nature of buying situation.  Marketing efforts, therefore, should also focus on understanding the nature and impact of these influences since they can affect virtually all aspects of the marketing mix.  International marketers must go further to understand the similarities and differences that exist across their markets with regard to the relative impact of the various sources of influence and devise their marketing strategy and tactics accordingly. 

Retail Employment: An Evaluation of Supermarket Part-time Work in London, UK

Ola Shittu, Barking College, London, UK

Ogenyi Omar, Ph.D., University of Hertfordshire, Hatfield, UK

ABSTRACT

The UK food retail sector continues to make enormous impact in the social and economic life of the UK population. The sector has continued to be in the forefront of labour market employment especially in terms of part-time workers’ development. This research paper investigates food retailers’ reasons for increasing use of part-time workforce; and peoples’ willingness to engage in part-time employment. A random sample of senior retail managers and part-time workers were interviewed for the study. The findings suggest that food retailers’ increasing use of part-time workforce is for commercial gain. People who engage in part-time work do so for a variety of reasons including labour market constraints. We conclude that although part-time working may be the choice of some people, however, it is uneconomical for others. Our recommendation is that food retailers should consider the opinion of individual employees in their recruitment policy to ensure fair play.

Legal Liability Risk for Enterprise R&D: The Case of High Tech Industry in Taiwan

Min-Sun Horng, Ph.D., National Kaohsiung First University of Science and Technology, Taiwan

Yung-Wang Chang, Ph.D. candidate, National Kaohsiung First University of Science and Technology and Lecturer, Meiho Institute of Technology, Taiwan

Yu Lin, MBA, National Kaohsiung First University of Science and Technology, Taiwan

ABSTRACT

The purpose of this article is to discuss the legal liability risk for enterprise R&D. Though some enterprises now begin to focus on the concept and operation of risk management, relevant legal risks of enterprises are barely discussed and paid attention to among them. However, such legal risks may result in a large amount of compensation, fines, loss of business reputation, or criminal responsibility, etc., even suspension or shutting down of enterprise. Thus, the legal risk is a crucial and interesting issue. This article, from the angle of enterprise's risk management, tries to introduce the various types of legal risks in the external operation and internal management behaviors of domestic enterprises from studying the exiting documents and regulations first. Then, it emphasizes the legal risks arising from conducts of researching and developing, as well as the monetary liability for these conducts, which are difficult to predict in advance, by analyzing their backgrounds in Taiwan. Finally, from the aspect of risk management, it is to research how to plan and take precaution ahead instead of taking legal procedures such as the lawsuit, arbitration, etc. after things happened. This article can contribute to the enterprise determining the legal risk in its business activities to avoid or reduce losses.

Implementation of Multiple Enrolment Programs Affecting Academic Achievement: An Example from St. John’s University, Taiwan

Chin-Chia Hsu, Doctoral Student, National Taiwan University, Taiwan, St. John’s University, Taiwan

Dr. Chih-Hung Wu, Takming College, Taiwan

Dr. Jovan Chia-Jung Hsu, Kun Shan University of Technology, Taiwan

ABSTRACT

This research aims to explore how multiple enrollment programs are related to academic achievements attained in Universities. It is also intended to be used as a reference for reforming national education policy. The results will also help schools to decide on different recruitment channels and appropriate quotas for each. This research used students, on both two and four year courses, at St John’s University, Taiwan with the administrative data system as the source of the students’ grades and records. We identified the different enrollment channels, the basic population statistics of the students and explored if there was differences in the grades of students enrolling via different channels. The results of the research show that: (1) the greatest number of students, in the Institute came after passing the national government’s entrance examination this is followed by those recommended and selected, and the least are those students who applied directly to the school; (2) students who entered the institutes by passing the national entrance examination have better grades than students from other enrollment channels; (3) in terms of performance during their time at the institution, students who entered school based on by athletic achievement show a downward trend in performance.

Consumer Adoption of the Internet as a Channel:  The Influence of Driving and Inhibiting Factors

Dr. Chien-Huang Lin and Shu-Fen Yu, Ph.D. candidate, National Central University, Taiwan

ABSTRACT

While the number of consumers shopping on the Internet and the volume of their purchases increase, research on what drives consumers to use this innovation has been inadequate. For companies incline to use the Internet as a distribution channel, they need to understand what factors make consumers to use or not to use this innovation for information searching and ordering. A framework including driving and inhibiting factors is proposed to examine their influence on consumers’ attitude for using the Internet as a channel. Four constructs, perceived usefulness, anxiety, playfulness, and novelty seeking are discussed and the moderating role of novelty seeking is explored. The proposed framework provides the possibility of direct comparison between consumers’ attitude toward information searching and ordering simultaneously, and examining the tendency of novelty seeking as a moderator in Internet adoption behavior..  The Internet and the World Wide Web (WWW or the Web) in particular, represents a recent technological innovation that has a profound impact on all facets of people’s lives. The potential of the Internet for businesses to conduct electronic commerce has received greater attention in the literature (Alba et al., 1997; Peterson, Balasubramanian, and Bronnenberg, 1997). In fact, the rapid growth of online retailing has created a vibrant market space and competition with all other shopping channels. It not only reshapes consumers’ shopping habits but also changes distribution channel like no other environmental force since the industrial revolution. With rapid advances in interactive technology and the growing popularity of the Internet, Internet shopping has been touted as the next revolution in direct marketing.

The Seller’s All-Units Quantity Discounts: Single and Multiple Buyers’ Cases

Dr. Esin Sadikoglu, Gebze Institute of Technology, Turkey

ABSTRACT

Suppliers offer quantity discounts with the optimal price breaks and the corresponding discount rates to the customers in order to encourage the buyers to revise their order policies. The objective of this study was to analyze quantity discounts schedules from the seller’s point of view and to consider multiple buyers’ case. The study used both Harris’s EOQ model and the All-units Quantity Discount model in development of the seller’s design of quantity discounts model and designed an efficient all-units quantity discount schedule that provides a win-win situation for both the seller and the buyer. This study also provides a sequential solution for the seller’s design of quantity discounts considering multiple buyers’ case and proposes an efficient, heuristic, and iterative computational procedure of the seller’s common all-units quantity discounts schedule, which mutually advantages both the seller and buyers.   It is not uncommon for a typical enterprise to have 30% of its current assets and as much as 90% of its working capital invested in inventory (Steven, 1996). Proper management of inventories may have a significant effect on the managerial performance of the companies. There exist different types of quantity discounts schedules such as all-units, incremental, and carload discount schedules. There is also business volume discount in which discount is applied according to the dollar volume, which the buyer purchases over a certain period of time (Benton et al., 1996). Quantity discount schedules are equivalent to each other in terms of providing the same benefit to both the seller and buyer assuming that the seller knows the buyer’s relevant cost parameters with certainty given the buyer’s profit improvement requirement (Weng, 1995). Therefore, determining terms of either all-units or incremental quantity discount schedule is advised rather than the selection of the type of quantity discount schedule from the seller’s managerial perspective.

Less is More: How Scarcity Influences Consumers’ Value Perceptions and Purchase Intents through Mediating Variables

Dr. Couchen Wu and San-san Hsing, National Taiwan University of Science and Technology, Taiwan

ABSTRACT

In the world of applied marketing, scarcity appeal is an important strategy (Brannon and McCabe, 2001). Prior studies have examined scarcity effects by single tests, there is no research on simultaneous impact of multiple mediating variables that sufficiently explains scarcity’s value-enhancement. This article used SEM (Structural Equation Modeling) to develop an integrated model to examine how scarcity influences consumers’ value perceptions and purchase intents through the use of more complete mediating mechanisms—assumed expensiveness, perceived quality, perceived symbolic benefits, and perceived monetary sacrifice. Then it compares the extent to which mediating variables play a role in influencing consumers’ assessments of a scarcity cue and how those assessments, in turn, influence purchase intentions. The study provides support for the model. Research findings suggest that a scarcity strategy which includes the use of high pricing and an emphasis on quality-expressive persuasion will enhance valuation and purchase intent.

A Re-examination of Technology Transfer in Sino-foreign Joint Ventures after China’s WTO Accession

Chun Jiang, Ph.D., University of New England, Australia

ABSTRACT

Although technology transfer in Sino-foreign joint ventures has been extensively investigated by both of Chinese and Western scholars, China’s WTO accession and continuously increased FDI absorption will significantly accelerate the competitiveness in Chinese market. Accordingly, MNCs are supposed to change their strategies in terms of technology transfer in compliance with more competitive environment in Chinese business context. Therefore, this research empirically investigates the new changes of technology transfer in Sino-foreign joint ventures given such new circumstances. Through adopting the qualitative research approaches: in-depth interview and case study, the author extends the theory of technology transfer in Sino-foreign joint ventures by means of advocating some new propositions   Although plenty of strategic objectives have been suggested to explain the motivations for the formation of IJVs, i.e. reducing investment risk, economies of scale, accessing potential market, etc (Beamish and Banks, 1987; Contractor, 1989; Hennart, 1988), providing a platform for organizational learning /technology transfer is extremely important in developing countries, especially in China (Buckley, 2004; Tsang, 1999 & 2001; Wong, 2002; Si, 1999). Previous literatures identified that technology transfer in Sino-foreign joint ventures was problematic due to its underdeveloped institutional environment and low legal protection of intellectual property. Foreign partners are not willing to transfer the technology into IJVs for avoiding the risk of technology spillover (Buckley, 2004; Thompson, 2003; Wong, 2001, Young, 1997).

Analyses of Operations of Ditch Container Wharf and Container Yard

Dr. Yu-Ping Tu, Shu Te University, Taiwan, ROC

Ya-Fu Chang, Doctoral Student, Chang Jung Christian University, Taiwan, ROC

ABSTRACT

In the 1960s, American shipping company Sea-Land began to use containers in sea transportation and, in recent years, the development of large-capacity containerships has been the trend in shipbuilding. It is necessary for existing container ports to take proper measures at a time when almost every containership company is building mega-containerships. With mega-containerships taking berth at the container terminal of a port, the pattern of operation of mega-container terminals will be an important factor affecting port operation. However, there has been little research on the subject. This study applied the concept of computer simulation to analyze operations of ditch wharfs and container yards in future mega-container terminals. Simulation software was used to construct different models of operation and examine possible situations encountered by operational systems of container terminals. The research found that shipside and gate operations might be accountable in part for delays of transportation in container terminals. If each operation subsystem could meet the standards of operational efficiency for mega-containership, the delays of container transportation might be reduced and the operational efficiency of the entire container terminal logistics might be enhanced.  In order to reduce operational costs at ports, a shipping company may consolidate routes and select a few hubs to berth in calculating total global shipping cost. Thus, more and more containerships are mega-containerships, defined as vessels having capacities of at least 8,000 ten-foot equivalent units (TEUs), and tens of thousands of containers will begin to flow into container terminals at ports. But, as the containers must be consolidated, stored, and transshipped, containerships of more than 10,000 TEUs, limited by depth of water and container yard, cannot be accommodated at every port. Therefore, mega-containerships will berth at only a few ports in the world and then consolidate and transship containers from feeder ports to a few hubs (De Monie, 1997).

Narrow Framing, Loss Aversion and Equity Home Bias

Tzu-Hui Pan, Ph.D. Candidate, National Taiwan University, Taiwan

Abstract

This study attempts to integrate narrow framing and loss aversion effects into the utility function and uses the revised utility function to solve the equity home bias puzzle. The equilibrium problem is solved using the log liner approximation method. The findings of this study indicate that without narrow framing and loss aversion effects, the optimal portfolio choices only include the myopic demand component. After incorporating narrow framing and loss aversion effects in the utility function, the optimal portfolio choices include both the myopic and hedging demand components. To hedge against narrow framing and loss aversion effects, domestic investors invest disproportionately in home-country equity assets. Results of this study merely satisfy the empirical phenomenon and successfully solve the equity home bias puzzle.  Despite the rapid integration of global financial markets, few investors diversify their holdings internationally as financial theory recommends. Traditional financial portfolio theory states that non-systematic risk can be virtually eliminated via diversification. Since the correlation coefficient of returns between countries is not united, international portfolio allocation can increase investment efficiency. However, empirical results demonstrate that most investors invest too large a proportion of their savings in home-country equity assets. Academics term this phenomenon the “equity home bias puzzle”. According to French and Poterba (1991) and Lewis (1999), the lack of diversification phenomenon that individuals invest too little in foreign securities is commonly existed. Some psychological economists attempt to use information asymmetry to explain this phenomenon. According to these psychological studies, the greatest risk investors face is that of the unknown. Foreign capital markets thus tend to be perceived as very risky by investors. Meanwhile, domestic investors find it easier to analyze the domestic assets. Notably, domestic residents find it much more difficult to analyze financial statements published by foreign firms. Therefore domestic residents invest disproportionately in domestic equity markets rather than foreign markets.

Intra-Day and Inter-Day Price Volatility in the US and European Equity Markets: A Measure of Trading Friction

Dr. Deniz Ozenbas, Montclair State University, NJ

ABSTRACT

The ability of an equity market to accommodate a series of trades and incorporate information into stock prices with minimal price volatility is an important aspect of its quality. We use return series with various differencing intervals that are as short as half-hour and as long as two weeks to investigate the short-term volatility accentuation in five equity markets: Nasdaq and the NYSE in the US, and the London Stock Exchange, Deutsche Boerse and Euronext Paris in Europe. Variance-ratio statistics are employed and results confirm an intra-day reverse J-shaped pattern of half-hour volatility. In addition, we find evidence of an intra-week pattern in volatility with higher volatility on Monday opening periods and Friday closing periods. The evidence also suggests an accentuation of volatility during longer periods, such as 24-hour intervals. This accentuation appears to subside when we extend our differencing interval to longer periods such as one-week or two-week returns.   The ability of an equity market to accommodate a series of trades and incorporate new information into stock prices with minimal price volatility is an important aspect of its quality.  If the price discovery process is marked by price swings, runs and reversals, in other words if the price discovery process is not efficient, then short-term volatility will be heightened in the market.  Heightened short-term volatility makes trading more difficult and hence may scare liquidity away. Furthermore, increased short-term volatility can invite more speculative short-term trading into the market (day trading).  Even though some traders might be able to profit from it, high short-term volatility is costly to the market in aggregate.  It discourages trades, lowers portfolio performance for most traders and makes portfolio returns more uncertain for everybody.  This study investigates short-term price volatility accentuation both inter-temporally and across several stock markets, and assesses it as an inverse measure of equity market quality.  We investigate stock price volatility in several differencing intervals that are as short as half-hour to as long as two weeks in five different equity markets in the US and in Europe.  In addition, we investigate whether  there are any day-of-the-week effects in volatility.

Exploring the Relationships between Total Quality Management (TQM), Strategic Control Systems (SCS) and Organizational Performance (OP) Using a SEM Framework

Zakaria Abas, Universiti Utara Malaysia

Zulnaidi Yaacob, Universiti Sains Malaysia

ABSTRACT

Many highly competitive and world class organizations have implemented TQM strategy in order to continually seeking better performance. However, many previous studies have revealed inconsistent and contradictory findings concerning the relationship between TQM and performance. Given that, this paper discusses the interrelationships between Total Quality Management (TQM), Strategic Control Systems (SCS) and organizational performance (OP). As a response to the call for utilizing second generation of statistical analysis, which is structural equation modeling (SEM) in management accounting research, a SEM framework is developed. According to this framework, the implementation of TQM has a direct impact on OP and SCS as well as indirect impact on OP through use of SCS. The framework suggested here represent the first attempted that depicting the relationships between TQM, SCS and OP using SEM framework. Given that, this paper contributes to the knowledge in terms of developing SEM framework for understanding the strategy-control-performance relationship.

Utility Function and Risk Taking: An Experiment

Esin Okay Örerler, Ph.D. and Dicle Taşpınar, Ph.D., Istanbul Commerce University, Turkey

ABSTRACT

Investing by its very nature is an emotional business.  Few investors have the self-knowledge, emotional stamina or self-control to make rational, intelligent and profitable decisions, particularly in times of uncertainty.  The main purpose of this study is to examine the style of financial risk taking, and in particular the psychological profiles associated with different risk taking behaviours. Behavioural economics and finance increases the explanatory power of models by providing it with more realistic psychological foundations. The assumption of behavioural risk taking leads to three fundamental approaches to risk:  Risk avoiders abstain from investments they perceive to contain risk, risk reducers participate in high risk investments in spite of the risks involved, and risk optimisers who are motivated by the exposure to risk.  This study identifies and characterizes individual investors based on their shared investing attitudes and behaviour. It finds out evidence of a behavioural search for investments based on a questionnaire approach suggested by LeBaron, Farrelly and Gula (1989). The approach to risk is studied by a psychometric measure, “Risk Assessment Inventory" prepared for the Turkish investors.  The research data is analyzed using statistical techniques, namely frequency, percent, arithmetic mean, chi-square independent test, non-linear principle component analysis and t-test.  The result of the research data have shown that there are not much significant differences between the variables related to the amount of investment when they are analyzed with respect to the dimensions of risk assessments.

Employee Theft: From Behavioural Causation and Prevention to Managerial Detection and Remedies

Dr Steven .H. Appelbaum, Professor of Management and Concordia University Research Chair

Jennifer Cottin, MBA, Remy Paré, MBA, and Barbara T. Shapiro, MSS

John Molson School of Business, Concordia University, Montreal, Quebec, Canada

ABSTRACT

The purpose of this article is to conduct a literary review of current research in the area of employee theft.  The topic will be examined/analyzed in a logical stepwise fashion. Beginning with the actors to determine who they are and why they steal.  Next, various methods that have been used to prevent theft in the workplace will be presented.   Understanding the necessity of detection techniques and the importance of reporting theft is underlined, followed by a discussion of the direct and associated consequences of employee theft.  The research will be summarized with suggestions to benefit managers.   Employee theft is defined by Greenberg (1990) as “any unauthorized appropriation of company property by employees either for one’s own use or for sale to another”.  Expressions such as “inventory shrinkage”, “spoilage”, “pilferage”, “shortage”, “unaccounted loss” and “defalcation” are often used as a replacement for “employee theft”.  These expressions are often used by managers because they have an attitude of denial and avoid the image of criminal activity (Oliphant & Oliphant, 2001).  Theft can have the form of top management fraud, workers compensation fraud (Wang & Kleiner, 2005), embezzling cash, taking office supplies and equipment, making personal photocopies and phone calls (Gross-Schaeffer, 2000). Employee theft is a serious problem that must be addressed by management because it results in a loss of approximately $ 200 billion annually in the United States alone.  Moreover, statistics from the United States Chamber of Commerce indicate that 50% of all small company failures in the first year of business can be attributed to employee theft (Business Strategy, 1995).  Though the media depicts fraud and employee theft primarily in large companies like Enron and WorldCom, the phenomenon also exists in small businesses.  The not-for-profit sector is not exempt, which may explain why many not-for-profit organizations have disappeared throughout the years. Managers must separate theft into two categories; theft committed by customers, and theft committed by employees, in order to tackle the problem correctly.  Theft within a company must be further differentiated by managers as isolated incidents versus those resulting from the corporate culture.  To effectively deal with this issue, management must take a holistic approach to examining employee theft by reviewing human resources hiring policies, completing proper reference checks and ensuring that disciplinary actions are taken against offenders.  Though profit is not a bottom line in not-for-profit or charitable organizations, management must see loss from employee theft as impeding the achievement of the organization’s goals and should therefore strive to reduce it by every means possible.

Expatriate Success in China:  Impact of Personal and Situational Factors

David Erbacher, Mt. Eliza Business School, Beijing, People’s Republic of China

Dr. Brian D’Netto, University of South Australia, Adelaide, Australia

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

ABSTRACT

The success of international ventures depends crucially on the performance of key expatriate personnel. These expatriates must often operate in a foreign country with little guidance from their corporate office. In view of the significant impact that expatriate decisions have on the organization, the selection and appointment of these individuals becomes very important. This paper seeks to identify personal and situational factors associated with expatriate success in the People’s Republic of China. The results indicate that performance management, training, organizational support, willingness to relocate and strength of the relationship between the expatriate and the firm were significantly associated with expatriate success. The implications of these findings are discussed.  In an era of increasing competition, many organizations seek growth through expansion into foreign markets. Theories of competitive advantage stress the need for organizations to transfer skills and develop organizational staff. The use of expatriates is an important human resource option which enables skill transfer (Black et al,1999; Brett and Stroh, 1995 ). Historically, expatriate failure rates have been quite high (Black, 1988; Tung, 1981). During the posting phase, expatriates may take a prolonged period of time to adjust, exhibit poor behaviors, be withdrawn or return home early, or may 'brown out', completing their assignment in a low state of effectiveness (Forster, 1997). Expatriates who are unable to adjust may be disruptive, have personal goals poorly aligned with organizational goals, may reject local culture and resist localization efforts (Hailey, 1996). The costs of poor adjustment include unsuccessful expatriate performance, low productivity in the overseas operation, problems with client relations and operational inefficiency (Mendenhall & Oddou, 1985). Thus, recruitment and selection of expatriates becomes important.

On Interest Free Investment Partnerships: Theoretical Foundations 

Dr. Tarek H. Selim, The American University in Cairo

ABSTRACT

In this paper, an interest-free investment partnership based on profit and loss sharing is characterized on the Capital Asset Pricing Model (CAPM) yielding several interesting hypotheses. A comparison between investment partnerships and conventional risk management is deduced. There are four major findings. First, an interest-free financing partnership based on complementary capital is proven to necessarily yield a lower beta-risk of investments. Second, in order for the above conclusion to hold, capital lenders (such as banks) must require a minimum partnership share inversely proportional to project risk and increasing with opportunity cost of capital. Third, the sum of lender's share and relative risk level balances to unity at equilibrium. Hence, tradeoffs exist in  risk-shares and not in risk-returns. Fourth, without accounting for inflation, and in contrast to predetermined fixed interest, a maximin strategy of financing partnerships (maximum return with minimum risk) imply an existence of an optimum zero risk-free rate. Several implications on the conduct of partnership financing are discussed.  It is the ultimate purpose of this paper to outline theoretical foundations for an interest free investment partnership based on Profit/Loss Sharing. This is done by utilization of the Capital Asset Pricing Model (CAPM). Risk-return tradeoffs are undertaken for both partnership financing based on interest free sharing contracts and for conventional interest-based investments. Several interesting commonalities and differences between the two methods are illustrated. Section 2 discusses the conventional CAPM model, its conditions, and methodology. Section 3 provides an explicit theoretical account of partnership financing by augmenting the CAPM model towards strict constraints of a  no interest partnership. Section 4 summarizes the findings of the paper.  The importance of a financial system in any society occurs in the vital role that the financial system plays in creating incentives to reach an efficient allocation of resources, and to provide the required financial service intermediation in order to channel funds from savers to borrowers and to facilitate financial and money flow movements among agents in the economic system. Such facilitation requires an efficient re-allocation of resources from agents who have a surplus of financial resources to agents who have scarcity of financial resources. 

The Czech Republic: Is It a Global Player?

Dr. J. Kim DeDee and Lynda S. DeDee, University of Wisconsin Oshkosh, Wisconsin

ABSTRACT

Despite the interest in global business, scholars give limited attention to the transition economies of Central and Eastern Europe (CEE). This article provides a framework of the Czech Republic, a key nation to go from command economics to market driven economics as applicable to U.S. firms.  Crafting a set of competitive advantages requires management to identify the variability of evolving markets, to understand the needs of those markets, and then to deliver products and services at the right quality, quantity, price, and timing to meet or surpass most demands (McDougal, 1989; Morris & Paul, 1987). Entrepreneurial firms intent on a global presence establish ventures that engage in traditional or emerging international markets, which, in certain cases, could involve the ongoing transition economies of Central and Eastern Europe (CEE). Taking advantage of the growing potentials there, while managing for real and perceived risk, calls for approaches that may differ significantly from standard U.S. practice. Considering the merits and differences of the market potentials of CEE countries, the Czech Republic (CR) stands out as a leader in the ongoing transition from centralized government command economics to market driven demand economics. The authors first examine how the government of Czechoslovakia, and later the Czech Republic, when given the opportunity, laid the cornerstone for a private sector economy and later acted as a host country for free market capitalists worldwide. Next, they identify the most salient long-range characteristics of the Czech transition economy, and finally, they explore important dimensions of the Czech market and their implications to U.S. business. From an historical viewpoint, both perceived and real attributes of a nation can be argued as necessary for understanding that nation as a potential market.

Evaluating the Organizational Performance of Taiwanese Hospitals Using the Fuzzy Analytic Hierarchy Process

Cheng-Ru Wu, Che-Wei Chang, and Hung-Lung Lin

Yuanpei University of Science and Technology, Taiwan, R.O.C.

ABSTRACT

Enhanced living standards and educational levels have fostered a strong public health consciousness, fuelling the development of Taiwan’s medical sector. Effective hospital operations definitely contribute to the maturation of the home care, pharmaceutical and health food sectors. Therefore, such sectors must assess the operations and organizational performance of hospitals. However, conventional evaluation models for organizational performance are generally too subjective and are focused mainly on eliminating defects rather than providing information regarding competition or cooperative sectors, knowledge of which is vital to enhancing organizational performance or operations. The inability of home care, pharmaceutical or health food sectors to evaluate the organizational performance of hospitals makes it impossible not only to understand hospital operations, but also to select an appropriate hospital to cooperate with. This work presents an AHP-based approach to resolve the uncertainty and imprecision of service evaluations during pre-negotiation stages, where the comparison judgments of a decision maker are represented as fuzzy triangular numbers. A novel fuzzy prioritization method, which derives crisp priorities (criteria weights and scores of alternatives) from consistent and inconsistent fuzzy comparison matrices, is also proposed. The fuzzy analytic hierarchy process (FAHP)-based decision-making method can provide decision makers in related medical sectors or hospital administrators with a valuable reference for evaluating the organizational performance of hospitals to either identify the most appropriate hospitals for collaboration or invest in nearby stores of interest such as pharmacies or health food stores.  Importantly, the proposed model can facilitate the medical sector in assessing the organizational performance of hospitals, making it highly applicable for academic and commercial purposes.

What Is Business Cybernetics?

Dr. Vojko Potocan and Dr. Matjaz Mulej, University of Maribor, Maribor, Slovenia

ABSTRACT

Cybernetics and Systems Theories were created six decades ago in order to help humans attain more holism in an era of unavoidable specialization and overspecialization. Both theories resulted from interdisciplinary team work. Today, they are applied more inside traditional disciplines and professions than on an interdisciplinary basis. Though, we could not locate business cybernetics. Here, we are offering an introductory provocation about it. Business Cybernetics is supposed to deal with management / control of business aspects of activities and attributes of humans and their organizations, all way from families to United Nations organization, and to support requisite holism of thinking, decision making, and action. We would like to contribute from our (economic, organizational, systems, and innovation management) education and our experience the following essay for those interested in the question raised in the title. In our present contribution we wish to discuss the benefits and weaknesses of implementing the interdependent systems theories, and business cybernetics for research and the management of organizations as Business Systems (BSs). This is a next step after our previous contributions. 

Leadership Style and Innovation Ability: An Empirical Study of Taiwanese Wire and Cable Companies

Dr. Yuan-Duen Lee, Chang-Jung Christian University, Taiwan

Huan-Ming Chang, Doctoral Student, Chang-Jung Christian University, Taiwan

ABSTRACT

Innovation ability and leadership are two basic functions. This paper studies employees’ views of the relationship between enterprise innovation ability and management leadership styles. Utilizing a sample of wire and cable companies in Taiwan, the study analyzes the questionnaire responses of 339 employees from ten publicly listed companies. The study adopts ‘innovation ability’ and ‘leadership style’ as its two dimensions, and then utilizes descriptive statistics and factor analysis to identify the major factors of the dimensions. Canonical correlation analysis is then used to discover the relationships between the dimensions. The study concludes that: (1) transformational leadership style is more acceptable to employees; and (2) there is a correlation between innovation ability and leadership style. The paper concludes with management implications and suggestions for future study.  The Taiwanese wire and cable industry has been in existence for more than half of century. During this time, business management styles have been conservative and stable as a result of prevailing government policy of national protection. However, with the expected changes that will accompany World Trade Organization (WTO) compliance, this industry will face increasing competition as a result of the decline of question of how to improve the performance of this industry in these changing circumstances is a vital issue for Taiwan. In this regards, leadership style and innovation ability will be crucial.

Is Malaysia’s Manufacturing Productivity Growth Input Driven?

Dr. Elsadig Musa Ahmed, Multimedia University, Melaka, Malaysia

ABSTRACT

Productivity indicators within the manufacturing sector for the period 1959-2001 were compared. In order to study the effects of government policies in improving the sector’s productivity growth, the study period was split into three phases, viz. 1971-1979, 1980-1986 and 1987-2001, which corresponded with the major policy changes. Two models were generated from the production functions to measure manufacturing sector productivity growth. The first model is an extensive growth theory model and the second one is an intensive growth theory model. The extensive theory model had a gap that cast doubt in the results. A statistical analysis was provided to close this gap. The results show a slowdown in the contribution of Total Factor Productivity (TFP) growth and negative growth of labour productivity of the sector. A negative impact of quality of inputs used by the sector was observed in the contribution of TFP and labour productivity growth in comparison with other productivity indictors of the sector. This paper found that productivity growth of Malaysia’s manufacturing sector is input driven rather than total factor productivity driven.

Information Technology Business Value: Effects of IT Usage on Labor Productivity

Dr. Aylin Ataay, Galatasaray University, Istanbul, Turkey

ABSTRACT

Despite significant progress in evaluating the productivity payoffs from Information Technologies (IT), approaches used in measuring IT business values are not universally accepted and the conclusions drawn from current research are arguable. This very exploratory paper aimed to reveal organizational experiences of companies with IT usage in a developing country and understand the relationship between labor productivity and technology usage level. We proposed that objective and perceived labor productivity level of the firms will vary according to IT usage level in different value creating activities of the firm. The results suggest that electronic linkages between external partners such as customers and suppliers did not play a significant role on firms’ actual labor productivity. However, we found that online business scorecard and procedures practices were two of the electronically supported knowledge and information management systems that could contribute to the operational performance of the firms and differentiate more productive companies from others. On the other hand, we couldn’t find a significant correlation between objective and perceived measures of productivity. We can argue that operational improvements gained from applying IT within the organization did not translate to the objective measure of productivity.

Equality between the Monetary Multiplier and the Income Velocity of Money

Dr. José Villacís, San Pablo University, Madrid, Spain

ABSTRACT

In the end, the only and eternal vocation of money is circulation. The money movement follows an opposite direction to the circulation of goods. The movement of money related to income is known by economists as income velocity of money. It would be better to call it aggregate demand and, even better, monetary dynamics. The income multiplier measures the convergent multiplying expansion of income that takes place as a consequence of money circulation.  The same phenomenon is observed, that is monetary movement, and therefore it is not advisable to use two concepts, or even less advisable to use two devices to name the same operation. It is not economically scientific or scientifically economic. Both concepts: income velocity and income multiplier represent the same activity.  The income velocity of money measures the times in which a unit of money finances a unit of income. This activity of money movement implies purchasing activities of net production or nominal income in the period. Therefore, a monetary mass circulating V times represents the total demand. Circulating is buying. Those who offer goods are demanding money and those offering money are demanding goods. The income multiplier, on the other hand, explains the total expansion taking place as a consequence of an initial strike of autonomous demand. This initial quantity of money, when it expands, finances increases in income and a total growth higher than the initial demand can be achieved. This expansion takes place due to money circulation (It cannot be other way). The statement that money circulates in income expansion implies that economic units are buying goods successively and constantly.

Practicing Ethics in Hr: Where’s the Action?

Dr. Maria G. Mackavey, Hellenic College, Brookline, Massachusetts

ABSTRACT

Hr’s role has been changing over the past several years in ways that can compromise Hr’s ethical responses in organizations.  This article examines the current trends in Hr and discusses how to attune Hr practices to encourage, strengthen and defend hr practices that cultivate habits of moral affections and conduct in organizations.   A few years ago, David Ulrich and some of his students at the University of Chicago surveyed several hundred organizations to determine which aspects of hr were most valued.  The survey was sent to line managers and other members of the organization to whom hr provided services.  When the results were tallied, Ulrich et al discovered that by far – over 70% -- said that it was not hr’s ability to deliver the “goods” that they valued so much (although that was certainly ranked second in importance) as hr’s integrity.  Let me repeat this: integrity was listed as the most valued aspect of hr’s work in organizations!  The OED defines “integrity” as:

An Accounting Information System for Harmonization

Dr. Siva Sankaran and Dr. Dhia D. AlHashim, California State University, Northridge, CA

ABSTRACT

Accounting harmonization seeks to bring together varied accounting systems and procedures into an orderly structure producing synergic results. With increasing globalization of the marketplace, international investors need access to financial statements that are comparable through accounting harmonization. Due to the large volume of data that harmonization generates, reporting companies would require database systems to store and distribute the multi-faceted data, and investors would need directory assistance with locating and analyzing this data over the Internet. This paper describes the distributed architecture of a Web-based accounting information system for harmonization that meets both of these requirements. A prototype has been implemented demonstrating the feasibility of the concept.  With increasing globalization of the marketplace, international investors need access to financial information based on harmonized accounting standards and procedures. This research builds a case for the adoption of harmonization in financial reporting and develops a Web-based accounting information system that assists with such harmonization. The paper is organized according to the following sections. First, we review the literature on accounting harmonization and discuss its importance. Second, we examine the international efforts currently under way in promoting its acceptance. Third, using workflow analysis, we develop an algorithm that identifies the design requirements for a harmonized Web-based computer system. In the section that follows, we describe the architecture and implementation of the prototype. We conclude with directions for future research.

Influencing Factors on the Innovation in Logistics Technologies for Logistics Service Providers in Taiwan

Dr. Chieh-Yu Lin, Chang Jung Christian University, Taiwan

ABSTRACT

This paper will study the factors influencing the technological innovation for logistics service providers in Taiwan. More and more logistics companies in Taiwan began the adoption of technological innovation because of the governmental policy of global logistics. Questionnaire survey