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Pathway to Sustainable Business Success in SMEs Through Innovative
Leadership Processes and Synergizing Principles
Brad Nikolic,
CQUniversity, Australia
Dr. David Robinson,
Professor, CQUniversity, Australia
ABSTRACT
The purpose of this paper is to present a conceptual model
to enhance leadership effectiveness and to introduce the concept of synergy into
mainstream leadership theory. In essence, there are four key elements to
effective and sustainable leadership, namely ethical foundation, authentic
action, charisma and transformational intent. These are combined sequentially
indicating a step-wise progression. There are also seven synergizing principles,
namely utility, attraction, visualization, recognition, evolution, reciprocity
and serendipity, each of which exerts influence on the flow of energy within
firms, and which in combination produce synergistic forces that inter-relate
with Vortex Leadership, potentially accelerating the firm toward its goals.
Small and Medium sized Businesses (SMEs) in the modern-day have great
opportunities to compete among global players, through the rise of the
information society, globalization and shifts in social structure. Yet financial
impacts such as the Global Financial Crises (GFC) and increasing social
responsibilities are elements with which all business leaders are confronted.
Hence, innovative leadership is more important than ever to ensure a competitive
edge for the SME. Leadership has become an interdisciplinary field, through
increased research from other disciplines such as the social sciences (Avolio,
Walumbwa, & Weber, 2009; Rosenbach & Taylor, 2006). Business leaders need to
ensure short-term success as well as keeping an eye on long-term business
sustainability. Thus, task orientation continues to be important as ever and
stakeholder engagement has become even more essential in contemporary leadership
approaches. In this paper we explore the necessity for an innovative leadership
framework, proposing that SME leadership must have an ethical foundation model
based on energy flow. The modern-day business environment adds new and complex
challenges to business leaders, which reflect a paradigm shift of peoples’
values through new technologies, environmental concerns or cultural
transformation (Euwema, Wendt, & van Emmerik, 2007; Martin & Ernst, 2005;
Schierenbeck & Wöhle, 2012).
Historical
Perspectives of Corporate Governance: Have the Increased Regulations Changed
Corporate America?
DeLeah Vogt, Sam
Houston State University, TX
Dr. Balasundram
Maniam, Sam Houston State University, TX
Dr. Hadley Leavell,
Sam Houston State University, TX
ABSTRACT
Corporate governance
in America can be traced back to the first corporations chartered in the U.S.
during the nineteen century; however, the corporate governance requirements from
the nineteenth century are minimal when compared to the regulations posed on
corporations today. The past decade brought about significant changes to
corporate governance regulations, which are now imposed on publicly-held
corporations. Corporate accounting scandals involving major corporations like
Enron, WorldCom and Adelphia led to major legislative reform with the passing of
the Sarbanes-Oxley Act (SOX) in 2002, which changed the landscape of corporate
governance entirely. Another round of corporate failures plagued the American
economy as a result of the financial crisis of 2008; more governmental oversight
was added to corporations. As early as the 1800’s, corporations in the USA were
established with legislation that required corporate responsibility to
shareholders. The American corporate structure originated in England; it
provided a corporate framework including the Joint Stock Companies Act of 1844,
which allowed corporations to define their business purpose and the Limited
Liability Act of 1955 gave shareholders limited liability (Grant, 2003).
Further legislation addressed issues for corporations that were chartered in
America. In 1881, the Supreme Court of Massachusetts rendered a ruling in
Davis v. Old Colony Railroad Company stating that corporations were
restricted to their business purpose as stated in their corporate charter and
corporate directors were not allowed to spend shareholder funds on any activity
that was not part of the business purpose for which the corporation was created
(Grant, 2003).
The Staying Power of
Unpopular Projects: Clues from the Movie Industry
Dr. Wayne J.
McMullen, Pennsylvania State University, PA
Dr. Raj Varma,
University of Delaware, DE
ABSTRACT
We examine the
enduring power of unpopular projects with very limited appeal within the context
of hypotheses suggested by extant theoretical research. Based on value or
profit maximization being the ultimate motive for a manager, the
Shareholder-Interest Hypothesis asserts that the survival of unpopular projects
emanates from some competitive advantage inherent to firms investing these
projects. The Management-Interest Hypothesis, on the other hand, suggests that
managers continue making unpopular projects because such projects maximize
managerial private benefits like prestige or job security from risk
minimization. Although our findings document substantial private benefits to
managers choosing to undertake real investments in unpopular projects, these
benefits seemingly do not lead to suboptimal investment decisions. Why
do firms invest in unpopular projects?
Extant theories in
finance prescribe that in the absence of capital constraints, managers acting in
the interest of a firm’s shareholders should accept unpopular capital projects
as long as they are associated with positive net present values, irrespective of
the unpopularity of these projects. Similarly, theories in accounting recommend
that managers should proceed with unpopular projects providing their accounting
returns (revenues divided by costs) are greater than zero. In contrast, agency
theories assert that managers may choose unpopular projects for a variety of
private benefits arising from career and other concerns. What remains puzzling
is how such projects could have any enduring power if these projects only
provided private benefits to managers. We
examine the above mangerial motivations for investing in unpopular projects by
conducting an empirical analysis of
documentary movie
projects.
Toward a Unified View of Customer Relationship Management
Dr. Joseph O. Chan, Roosevelt University, Schaumburg, IL
ABSTRACT
Competitions in the
new economy have caused major changes in business strategies from internal
product focus to value creation along the demand and supply chains. Companies
are extending their operational and decision structures to include those of
their customers, suppliers, distributors, and alliance partners. Product-centric
strategies are replaced by customer-centric strategies that facilitate value
creation. Focuses on transactional efficiency are replaced by new requirements
to integrate and optimize the value chains between the customer, the firm and
its extended enterprise. Disparate business processes and systems, compounded by
the proliferation of customer contact points and channels, have created
incompatible and disconnected views of customers. The inability to synchronize
information and processes across various customer touch points may result in
negative customer experience and lost opportunities for the firm. Disconnections
between CRM operations and CRM analytics can negatively impact marketing
effectiveness, customer retention and loyalty. Lessons learned from past CRM
implementations have provided guidance pointing to integrated strategies that
not only include technologies, but also include business processes, information
and organizations. Forward looking CRM strategies can leverage customer
intelligence created by CRM analytics that enhances CRM operations, and
conversely, CRM operations collect critical customer data for CRM analytics. To
attain optimization of CRM performance, metrics need to be defined across the
enterprise driven by customer-centric goals. For customer relationship
management to take to the new level of value creation, businesses require a
strategy that creates a unified view of customers from the perspectives of
operations, analytics and collaboration along the entire customer relationship
management value chain. This paper proposes an integrated framework for CRM
through the construct of the enterprise model.
Integrating
Knowledge Based XML Transport into Database Statistical Applications
Dr. Karen Coale
Tracey, Central Connecticut State University, New Britain, Connecticut
ABSTRACT
Usage of Extensible
MarkUp Language (XML) extends beyond the Web, facilitating companies’ access to
their own legacy data. Companies are now able to integrate legacy data quickly
and cheaply into newer programs merely by assigning each piece of data an XML
name. XML has strategic impacts as well for the companies. Companies can now
give their suppliers and customers access to their own data without high
application development costs, thus better integrating their operations. Every
type of business transactions uses XML in one way or another. XML is the
foundation for web services, e-business and e-content - industry forecasts
indicate that by 2003, XML will account for 40% to 60% of all Internet traffic.
Yet today's network infrastructure is not capable of recognizing, accelerating,
securing or prioritizing XML traffic (DataPower, 2001). Because of the extensive
growth in usage of XML it is foreseen that there would be high network traffic.
The network traffic in-turn would slow down the transaction process in a
distributed environment. Increasing network bandwidth through hardware means,
which is an expensive solution, can minimize the problem. Without question, the
Internet is a revolutionary phenomenon. In just a few years, it has completely
transformed the landscapes of both personal and enterprise computing (Lee &
Runge, 2001). The word processor use to be the most important application on
the personal computer, now it is rivaled by the web browser. The database used
to be the most important piece of software in an enterprise computing
architecture, now it is rivaled by the Web application server and the ability to
transfer data using standardized protocols (i.e. TCP/IP, FTP, HTTP, and SMTP).
For almost 26 years Electronic Data Interchange (EDI) has given companies the
prospect of eliminating paper documents, reducing costs, and improving
efficiency by exchanging business information in electronic form (Grangard,
2001). EDI-enabled eBusiness is centered around dominant enterprises that impose
proprietary integration approaches on its trading partners.
Chinese Consumer Protection
in the Era of Electronic Commerce
Dr. Mary Ip, The
University of Sydney, Australia
ABSTRACT
This paper is to examine the future development of
consumer legal protection in China in view of the growing on-line shopping.
Three main approaches for defending consumers’ rights within the forum of
international e-commerce are considered. And comments are made on the
applicability of these approaches to the diverse consumer’s situation in China.
The rapid development in information technology has bridged the gap and improved
links between people of the world. A consequence of such wide-reaching contact
amongst people is the boost in international trade. Although the proliferation
of international business is also due to liberalisation of the economy and the
removal of trade barriers between countries, it is indisputable that the
availability of the Internet has been the catalyst. Nowadays, people are
physically located in different geographical areas, but in fact are living in
one “global village”. Transactions within the “global village” are mainly
carried out by means of electronic commerce (e-commerce), conducted over
computer networks. Such an e-commerce phenomenon has triggered debate on various
issues, such as tax matters, copyright infringement, data protection,
jurisdiction, and the paradigm of consumer protection. It has been argued that
the borderlessness of the electronic marketplace has destroyed existing
protective shields for consumers. Thus a new legal framework must be devised or
the current consumer protective mechanisms must be modified in order to
accommodate this new commercial environment. Since 1978, China has established
a system of law for the country, and provided statutory safeguards for consumers
in 1994. With its
forthcoming entry into the WTO and the
continuing growth of “global shopping malls”, China needs to revise its strategy
for protecting consumers and review its current consumer law system in order to
gauge if it is compatible with today’s cybermarket. In the light of this, this
pilot paper aims to study the paradigm of Chinese consumer protection with the
advent of e-commerce. With this goal in mind, the paper commences with a brief
review of the literature relating to new hypotheses for international consumer
protection in the era of e-commerce, and highlights the arguments supporting the
different regulatory approaches.
Professionalism as Reputation Capital: Building Strategic Advantage
Dr. Neil E.
Bechervaise, Australian Graduate School of Entrepreneurship, Australia
Dr. Kevin M.
McKenzie, Australian Graduate School of Entrepreneurship, Australia
Richard Beal,
Australian Graduate School of Entrepreneurship, Australia
ABSTRACT
Organisations
typically leverage professionalism to promote reputational capital. Reporting on
the origins, role and implications of professionalism as a strategic driver,
this paper describes a recent Australian study into aspects of a trait driven
ideology supported through individual relationships. Rather than being tangible
and teachable, the paper argues that professionalism may be passed between
generations of workers from childhood and independently of organisational demand
or culture. The paper emphasizes the impact that an individual’s pursuit of
professionalism has upon the reputation capital, and ultimately on the strategic
advantage, of an organisation. Professionalism is under fire. We have become
involved in a continuing global war against terror. National league
football begins again in Australia this week. The axis of evil has
become a pronominal epithet for describing everyone who disagrees with us. A
leading Australian daily newspaper features the dismissal of the musical
director of the National opera company! A woman of international repute, the
artistic leader was lured to Australia from Europe under contract to lead the
opera company toward a new vision. She established a challenging new direction,
initiated tough new rehearsal schedules, and demanded increased production
values and performance standards. Dismissed midway through her contract, the
official press release recorded that her “visions for the artistic growth of the
company are not sustainable by [the firm] in its current financial position”.
When demands for heightened performance impact organisational culture, they
often create conflict. When corporate vision is not shared on the shop floor, or
when mission statements are unilaterally rewritten, low level resistance may
escalate to board level rejection. The fall of the share price of Southcorp, a
major beer and wine producer in Australia has led to the dismissal of the CEO
though his strategic direction has been retained. In the opera community, as
well, governing boards have begun to factor financial viability into the
professionalism of the company. When perceptions of professionalism in one
context do not translate to another, tensions are created when individuals
strive for professionalism in multiple communities, each of which may use
different criteria to pass judgment. Professionalism as a concept creates
multiple images judged from multiple perspectives.
Developing New
Markets for Turfgrass-sod in the United States
Dr. John J. Haydu,
University of Florida, Apopka, FL
Dr. Alan W. Hodges,
University of Florida, Gainesville, FL
ABSTRACT
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. Cultivated turfgrass is a pervasive feature of the urban landscape in
the United States and many other regions of the developed world. It is
preferred as a vegetative groundcover to reduce soil erosion, absorb pollutants,
dampen noise, and to provide a comfortable, durable, and aesthetically pleasing
surface for outdoor activities. Turfgrass is a major characteristic of home
lawns, commercial landscapes, golf courses, hotels and resorts, and public
institutions, including schools, cemeteries and airports. The turfgrass
industry is an incredibly diverse and economically important component of the
horticultural industry. The USDA estimated in 1997 there were over 300 thousand
acres of turfgrass-sod produced in the United States, representing a farm gate
value of $800 million (USDA, FLO-2002). While large, this value represents a
small portion of total economic activity generated by turfgrass production. For
instance, while Florida produced nearly 80,000 acres of sod in 2000, it was
estimated that roughly 5 million acres of turfgrass was being maintained by
families, commercial businesses and institutions (Haydu et al, 2002).
Structural Equation
Modelling Analysis of Fairness Heuristic Theory
Dr. Douglas Flint,
University of New Brunswick, Fredericton, NB
Pablo Hernandez,
University of Toronto, Canada
ABSTRACT
Prior research on
fairness heuristic theory of organizational justice has shown that procedural
information is used when distributive information is lacking. This study
extends consideration of fairness heuristic in two ways: By testing fairness
heuristic effects across four different combinations of procedural and
distributive justice; and by testing an ambiguous distributive outcome.
Structural equation modeling is used to measure the directionality of procedural
and distributive justice effects. Procedural justice is of interest to
organizations because of its impact on important organizational outcomes. These
include: performance (Ball, Trevino & Sims, 1995; Gilliland, 1994; Konovsky &
Cropanzano, 1991; Welbourne Balkin & Gomez-Mejia, 1995), organizational
commitment (Brockner, 1992; Konovsky & Cropanzano, 1991; Schaubroeck May & Brown
1994), job satisfaction (Schaubroeck et al, 1994), organizational citizenship
behavior (Ball et al, 1995), commitment to organizational decisions (Greenberg,
1994; Korsgaard, Schweiger & Sapienza, 1995; Lind, Kulik, Ambrose & de Vera
Park, 1993), turnover intentions (Schaubroeck et al, 1994, Olson-Buchanan,
1996), theft (Greenberg, 1990, 1993), and retaliation against organizations (Skarlicki
& Folger, 1997). Organizational systems that have been linked to procedural
justice include: Employee discipline (Cole & Latham, 1997), inter-group conflict
(Huo, Smith, Tyler & Lind, 1996), institutional racism (Jeanquart-Barone, 1996),
performance appraisal (Barclay & Harland, 1995), pay for performance (St. Onge,
2000), and employee benefits (Tremblay, Sire & Balkin, 2000). There are
some conditions when procedural justice is more salient than others. Fairness
heuristic theory provides an explanation for these conditions. Fairness
heuristic theory deals with the impact of perceptions of procedural and
distributive justice on formation of organizational justice judgments.
Ethical
Attitudes Among Accounting Majors: An Empirical Study
Dr.
Siva Sankaran, California State University, Northridge, CA
Dr.
Tung Bui, University of Hawaii, Manoa, HI
ABSTRACT
Due to
innumerable instances of ethical lapses reported in the media recently, the
accounting profession has come under close scrutiny. This study investigates if
there are linkages between background characteristics and ethics among
individuals who are on the verge of joining the accounting profession. An
instrument is developed to measure ethical attitudes and administered to a
sample population of college students majoring in accounting. Results show that
i) ethics is inversely related to individual competitiveness, ii) personality
types have no bearing on ethics, iii) ethics diminishes with age, and iv) women
have higher ethics. The study also compares the ethics level of accounting
majors with those in other business and non-business majors. Time has repeatedly
proven that to err is human. Circumstances can sweep away even the best person’s
ethical principles. With the ever widening globalization and cut-throat
competition, the pressure in the workplace is higher than ever before. With the
desire to produce results, the modern worker can easily be tempted to compromise
on ethical principles. Unfortunately, some fall victim to temptation more easily
than others. It is ironic that most ethical violations are committed by the
advantaged and successful professionals. Among the business professionals, the
accountants have come under greater scrutiny of their ethical values and
practices due to recent disclosures in the media. In some instances, the ethical
lapses on the part of even a handful of employees have brought their firms to
extinction. This is why it has become important for companies to take a
proactive stance in building an ethical corporate culture. This can be done
only if the company has a team of employees committed to moral principles and
the company provides an environment to nurture it. Often, companies place undue
emphasis on employee/consultant skill sets and relegate other personal
characteristics such as ethics to the background. Assuming a company truly wants
to evaluate the ethical attitudes of a prospective or a current
employee/consultant just as well as the skill set, what signals should they
looking for?
Speculation and Hedging in the Crude Oil Futures Markets
Dr. Yu-Lun Chen, Chung Yuan Christian
University, Taiwan R.O.C.
Ya-Kai Chang, National Chengchi University, Taiwan R.O.C.
Dr. Tai-Hsin Huang, Professor, National Chengchi
University, Taiwan R.O.C.
ABSTRACT
This paper investigates the impact of trading positions of hedgers and
speculators on the price formation process in crude oil futures during 2003 to
2010. Relative hedgers’ position has a negative impact on price efficiency in
crude oil futures markets. Hedgers are less likely to be information motivated,
so their trading delays the price formation process. However, there is a
positive impact of speculators’ position on price efficiency, because
speculators correct pricing error, according to fundamental analysis. Our
findings discover the role of hedgers and speculators on price formation process
in crude oil futures are crucial and beneficial to academics, practitioners, and
regulators. This paper investigates the impact of trading positions held by
hedgers and speculators on market quality in crude oil futures. In the futures
market, two major types of traders include speculators and hedgers have
different trading purpose, behavior and performance. Hedgers use the
futures market to transfer the spot price risk and their
hedging pressure tends to drive down or up the futures price relative to the
expected value of spot price to generate a bias in the futures prices.
Speculators who enter on the opposite side of futures contract bear a risk, and
are, therefore, compensated by a positive expected profit on their position. Due
to the presence of speculators, the futures price will revise to close to the
expected value of spot price. Hence, the trading activities from speculators and
hedgers may have different influence on market quality in crude oil futures
markets.
To evaluate the relationship between the trading
activities of hedgers and speculators and price efficiency is important to
discussions on policy issue in the futures markets, especially regarding
position limits. Position limits have been widely used to contain speculators
participation for stabilizing on futures price movements. However, due to
position limits, the speculators or hedgers may shift to spot or options
markets.
Comparison Analysis
of the Brand Effect between Brand Alliances and M&A Strategies
Dr. Hsiao-Chi Chen,
Chung Yuan Christian University, Chung Li, Taiwan
Abstract
The
effect of branding strategy is always a critical topic in the brand issues.
Brand creation is a tough and complex system for business operation in which
many problems may appear including core competence, consumer demand, different
market segment…etc. In branding strategy, strategic alliances and mergers and
acquisitions (M&A) are applied to solve the growing problems and build more
brand value and effect. However, would be any value added in brand by using the
strategies? Consumer perspective is taken to evaluate brand effect with brand
alliances and M&A strategies. Brand alliances and M&A strategy are compared in
the consumer brand evaluation. This is the main concept discussed in the
research. The strategies for branding under the customer brand evaluation by
One-Way ANOVA have been analyzed. Paired-Sample T Test is taken to compare brand
effect between brand alliance and M&A strategy. The results show that the brand
effect for such brand alliances and M&A strategy is explored. Brand awareness is
the major effect and value created from M&A strategy. In consumer evaluation
process, the brand effect would be affected by both M&A strategy and brand
alliance. However, to increase brand effect depends on strategy types. “Best of
both” would get another brand’s image, awareness…and so on such as Sony
Ericsson and Lenovo IBM, in which M&A strategy is applied successful
to add brand effect and value. However, other M&A strategies could not create
positive effect of brand value. Although, M&A strategy would create more brand
effect comparing with brand alliance, different brand alliance also could create
brand effect. “Homogeneous brand alliances” model get the effect of not only
brand loyalty but also perceived quality. If brand image is seriously valued in
business, “Heterogeneous brand alliances” would be considered in branding
strategy planning. According to the research results, it is found that brand
effect change in different scenarios. How to select the best solution is based
on a firm’s leader’s branding objective.
The Online Corporate
Branding of Banks – A Comparative Content Analysis of Indian and Japanese Banks
Dr. Soniya Billore,
Linnaeus University, Vaxjo, Sweden
Gautam Billore, Punjab
National Bank, India
Kyoko Yamaji, Keio
University, Tokyo, Japan
ABSTRACT
Corporate branding of
banks is an important tool to attract consumer’s attention and the internet is
providing another platform to strengthen institutional brand identity. This
study applied the tool of Content analysis to explore how banks create brand
imagery online by highlighting some perspectives of brand identity that
frequently appeared through the bank’s web pages. A comparative study was
conducted between 25 Indian and 25 Japanese banks to explore how the brand
imagery was established and differed from each other. The comparison between
Indian and Japanese banks was conducted keeping in mind that with rapidly
increasing business relations between the two countries there will be an
increased influx of Japanese banks into the Indian market and vice versa in the
near future (METI, GOJ, 2012). In such an opportunity, the analyses can indicate
how present formats of both countries differ from each other and the scope of
adapting the information on the web pages to national cultures and expectations.
This can be extended further to see if policy and portfolio changes need to be
made in order to adjust to the customer needs of the new market and establish
enhanced appeal for prospective customers. Corporate branding of banks is
witnessing an immense transformation with increased competition, multichannel
delivery and a more robust technological support in the financial industry.
Customersare increasingly aware of what they want from a bank and how the
services should reach them. Innovation in the bank’s service and its delivery is
being constantly researched. This environment has emphasized the need for
strengthening corporate brand identity of banking institutions and reinforcing
customer’s attention to the banks so that stronger relationships can be formed
between them. The IT revolution helped to integrate new modes of service
delivery in the banking sector. This sector evolved vastly towards a “click and
bricks” strategy that emphasizes an online supplement to conventional banking
services (Miranda et al, 2006) and that can also be used as a potent tool to
communicate the overall brand identity of the bank.
The Synthesis
of Selected Behavioral Biases With the Theory of Efficient Markets on Example of
DJIA Index
David Havlicek,
University of Economics in Prague, Czech Republic
(1)
ABSTRACT
This paper describes an
analytical approach to the partial synthesis of the theory of efficient markets
with selected behavioral biases of conservatism, anchoring, gambler's fallacy
and hot hand bias. We test the possibility of modeling these biases in
comparison with the historical time series of U.S. stock index DJIA from year
1896 to 2012. We use for that correlation and regression analysis. The
application of these behavioral biases could not, however, explain either one of
the percentages of variance of logarithmic original time series. Further
research should focus on individual equities, in which the behavioral biases
could be rather expected.
The aim of this
article is to analyze the possibility of a partial synthesis of efficient market
theory and selected behavioral biases. This is only a partial synthesis, since
these two approaches are in contradiction with each other. According to the
theory of efficient markets we cannot achieve abnormal returns based on
historical information. According to behavioral finance it is not possible to
assume that markets behave efficiently, because people make systematically
repeated mistakes. So in both theories, it is necessary to make certain
compromises. This synthesis is performed using correlation and regression
analysis of historical time series of the U.S. stock index Dow Jones Industrial
Average (DJIA) together with selected behavioral biases of conservatism,
anchoring, gambler's fallacy and hot hand bias.
Case
Study: Export Financing as a Key Driver in International Expansion for
Engineering Firms
Jan Picha,
Czech Technical University in Prague,
Czech Republic
Dr.
Ales Tomek, Czech Technical
University in Prague, Czech Republic
ABSTRACT
Construction
and engineering industry in Europe has been heavily affected by recent economic
conditions and debt crises on national levels. Taking advantage of national
export credit and guarantee programs can result in significant competitive
advantage in company’s expansion to developing markets worldwide. This paper
presents unique strategic concept of the two market pioneers of engineering
sector in the Czech Republic when penetrating developing market of Russian
Federation. Despite the economic conditions these companies report increasing
turnover and profitability, while their competitors suffer from lack of jobs.
The markets of Eastern Europe and Asia are specific with neglected
infrastructure and thus represent a huge potential for such experienced firms
possessing necessary exporting know-how and technologies. In order to withstand
the pressure resulting from increasing market competition, exporting firms are
forced to come out with tailor made solutions and high level of value added.
Delivering project construction together with secured project financing proved
to be the key success factor in developing markets which enabled these firms to
succeed in highly competitive international bids. This paper identifies and
introduces the key success drivers necessary for successful execution of export
financing concept. Author continues his research in the field of competitive
strategy with focus on project alliances and project financing at international
engineering sector. Our ambition is to work out best practice model of leading
engineering firms with utilization of national export credit and guarantee
program as a strategic alternative for foreign market entry and provide a route
map for other market players. As a research methodology case study method was
selected.
Features of IT Offshoring to Russia: German Perspective
Rasim Muftiev,
Technische Universitat Dresden, Germany
ABSTRACT
The article reviews IT
offshoring: a type of outsourcing concerning the close business relationships in
the field of the Information Technology. The paper provides a basic overview of
Russia as a player in the global IT outsourcing market. Russian IT offshore
providers are discussed from the point of view of German potential customers
with respect to advantages of Russian IT market — such as strong and experienced
IT workers, financial benefits, smaller time zones, and their close fit with
German culture — as well as their disadvantages — for instance, weak
intellectual property protection, a lack of IT-security, and complicated
political, legal, and tax policies. This overview discusses advantages,
disadvantages, and an overall perspective of possible IT offshoring
collaborations with Russian IT vendors. Information technology (IT) outsourcing
has been a fitting approach for the business optimization for over two decades
with a substantial growth over the last years. The usual function consists of
delivering IT services, getting access to resources for the development of
products, and providing reliable IT infrastructure and software solutions at
competitive prices.
India is currently the top IT
offshore destination; however, many other
countries possess unique characteristics and qualities which can make their
possible offshore markets the most attractive for IT customers. One of such
examples is Russia, which shows stable development of positive trends in its IT
market. Since German companies are forward looking, always searching for
innovative solutions, they are considered a possible valuable partner for the
evolving Russian IT vendors in the near future. Although, there is always a
number of obstacles or difficulties in every IT market. For German companies to
offshore, there are still several remaining disadvantages of Russian IT market,
which will be discussed in this paper as well its advantages.
The Effects of IFRS and
the Institutional Environment on Accounting Quality in Chinese Listed Firms
Yuang-Lin Chang and Dr.
Cheng-Hwai Liou,
National Taichung
University of Science and Technology, Taichung, Taiwan
Yi-Hsin Chen, Deloitte
Touche Tohmatsu Limited, Taichung, Taiwan
Dr. Ching-Chieh Tsai,
National Taichung University of Science and Technology, Taichung, Taiwan
ABSTRACT
The objective of this
study is to examine whether the mandatory adoption of IFRS in China and its
institutional environment lead to difference in accounting quality.
Like many other countries, China mandated
IFRS adoption in 2007.
According to the institutional
perspective, China is characterized by a relatively weak institutional
environment. Therefore, the institutional environment in China has posed
challenges to the generalizability of existing institutional theories and has
thus created opportunities to examine the effects of IFRS adoption on corporate
accounting quality. Based on prior studies and
in light of the geographical and economic diversity that exists across regions
in China, this study further examines the effects of the regional institutional
development on corporate accounting quality after the mandatory adoption of IFRS.
By using a
firm-level cross-sectional regression framework and utilizing an institutional
perspective, this study aims to extend the research streams from the mandatory
adoption of IFRS and to investigate the role of the institutional environment in
the quality of accounting in Chinese listed A-share firms. Our empirical
research achieves the following two conclusions: 1) IFRS adoption in China leads
to a significant improvement in accounting quality, and 2) IFRS and the
institutional environment synthetically influence the accounting quality as
well.
Our findings provide corroborating evidence for the importance of the
development of the institutional environment in which those Chinese listed firms
operate.
The adoption of International Financial Reporting
Standards (IFRS) is one of the most significant changes in accounting regimes in
modern accounting history. Several
researchers indicate that adopting IFRS leads to
higher accounting quality, more market liquidity, and improved corporate
transparency, and therefore ultimately benefits firms and investors (Tendeloo
and Vanstraelen 2005; Soderstrom and Sun
2007; Tyrrall et al. 2007; Barth et al. 2008; Daske et al. 2008; Armstrong et
al. 2010; Li 2010; Jones and Finley 2011; Zéghal at al. 2011). Like many other
countries, China mandated IFRS adoption in 2007.
The Global Competitive
Ability of Taiwan’s IT Industry based on its Stock Fluctuations
Dr. Shu-hen Chiang,
Chung-Yuan Christian University
ABSTRACT
In view of the progress in
financial integration and the increasingly internationally competitive
information technology (IT) industry in Taiwan, this paper seeks to understand
the position of its global competitiveness from the IT stock
price changes in Taiwan. We first use shift-share analysis adopted from regional
science to decompose stock fluctuations into four effects that comprise three
external factors with one internal element. Dynamic shift-share analysis is then
used to trace the evolution of these four effects for changes in IT stock prices
in the Taiwan stock market. It is found that the strong competitiveness of the
IT industry in Taiwan is fully reflected in its internal element. Taiwan is not only a typical small open economy
which derives its economic energy mainly from export-oriented manufacturing, but
its small and medium-sized enterprises (SMEs) also play a much more important
role in economic activities than in other Asian countries. In such an
environment, Taiwanese firms continue to face increasingly severe international
competitive pressure and it is this that led the authorities to decide to
develop the information technology (IT) industry as the catalyst of industrial
transformation and innovation through the use of massive public investment. A
notable expression of this is the Hsinchu Science-based Industrial Park (HSIP),
which is referred to as Taiwan’s “Silicon Valley”. Many studies, for example,
Tsai (2004) and Yang et al. (2009) suggested that the IT industry in Taiwan has
successfully created a globally competitive technological capability. Although
numerous attempts have been made from economic analysis to demonstrate
technological progress and competitive advantage in the IT industry, no studies
have ever tried to investigate its global competitiveness from the finance
field. The purpose of this paper is to quote shift-share (SS) analysis from
regional economics to explore further into this issue by use of information from
stock markets. Globalization refers to the connectivity and integration of
countries, corporations and people in terms of labor, capital and technology.
Condition and
Perspective of Internal Auditing and Influence of Internal Auditing on
Annual
Report Quality: The Case of Croatia
Marko Cular,
University of Split, Croatia
Toni Susak,
University of Split, Croatia
ABSTRACT
Research of internal
auditing condition, perspective of the same and influence on reporting quality,
through the annual report, is based for listed companies, in 2011. The primary
aim is to draw conclusion about the existence of internal auditor and internal
audit department for listed companies. The secondary aim is to find connection
between existence of internal auditor and external auditor's opinion. The final
effect is to show influence of internal auditing on annual report quality. The
goal of research is to be informed with condition of internal auditing and
reporting quality, through the annual report and to determine relationship
between them, in order for financial reporting to be more transparent. Given
that fundamental, the goal of modern internal auditor is to develop quality
management process (in terms of commitment of achieving goals and requirements
of the owner, more efficient use of resources, improving quality and
environmental awareness, ethical behavior and pronounced responsibilities).
Annual report is a document that includes all elements related to objectives of
modern internal auditor, it is necessary to investigate connection between
existence of internal auditor and annual reports quality. Descriptive statistics
show existence of internal auditor, existence of internal audit department and
auditor’s opinion for observed companies. The quality index of annual reports
will be calculated, for selected listed companies. Also, connection between
internal auditor existence and external auditor’s opinion, and difference on
annual report quality for companies that have or do not have internal auditor
will be determined. Results of researches indicate that position and stability
of internal auditing in Croatia is very weak; position of internal auditing
influence on audit opinion; there is no difference in annual report quality,
looking for companies that have, or do not have internal auditor (because we
have a poor annual report quality, considering on index quality of annual
reports for observed listed companies). Today, quality of information is the
key for success in the world of investment. Quality of presented information in
annual reports affect investors and stakeholders, their roles, thinking,
behavior and their apetite for risks.
Asymmetric Timeliness
of Earnings across Corporate Life-Cycle Stages
Slavko Sodan,
University of Split, Croatia
Dr. Zeljana Aljinovic Barac, University of Split, Croatia
ABSTRACT
This paper analyzes differences
in earnings asymmetric timeliness across companies’ life-cycle stages.
Asymmetric timeliness of earnings implies more timely recognition of economic
losses than gains and it is the most commonly used measure of conditional
conservatism in accounting. Namely, conservative bias in accounting causes
negative stock returns, which reflect downward adjustment in economic income, to
have a higher association with earnings than positive stock returns.
Accordingly, economic losses are reflected in earnings faster than economic
gains. This research assumes that level of earnings asymmetric timeliness, i.e.
level of conditional conservatism, will differ across different corporate
life-cycle stages. We argue that companies in early life-cycle stages which
require a great use of financial leverage, so they will apply less conservative
financial reporting than mature companies, in order to improve their perceptive
borrowing capacity. Empirical evidence is provided through the sample of large,
listed companies from 14 Western European countries in succession from 2002 to
2011. Estimated results indicate that companies in introduction and growth stage
of corporate life-cycle have low level of asymmetric timeliness of earnings.
This paper examines
the level of accounting conservatism in different corporate life-cycle stages.
Basu (1997) defines conservatism as accountants’ tendency to require a higher
degree of verification for recognizing good news than bad news in financial
statements. In accordance with principle of prudence, conservative accounting
system recognizes potential decreases in income or assets well before they are
realized, but postpones the recognition of income increase until it is realized
or is sufficiently certain. Therefore, Basu expects that reported earnings will
respond more completely or quickly to negative shocks on value of company (i.e.
bad news) than to positive shocks (i.e. good news).
The Application of FAHP/DEA
Methodology in a Transit-oriented Development
Planning in Taipei Metro Transit
System
Dr. Wann-Ming Wey,
Professor, National Taipei University, New Taipei City, Taiwan, R.O.C.
ABSTRACT
The concept of
transit-oriented development (TOD) planning mode in an urban area was proposed
based on the principles of smart growth and sustainable development in recent
years. Meanwhile, the development of appropriate design techniques for the
surrounded built environment of TOD has become important increasingly as the TOD
applied in an urban district. The available evidence lends itself to the
argument that a combination of urban design strategies and TOD patterns that
promotes the quality of urban built environment will help create active,
healthier, and more livable communities and it is an essential element of this
research. This study will include the following sections. First of all, we try
to study and classify the category of smart growth principles based on
literature review. Followed by applying fuzzy Delphi technique (FDT) to obtain
individual expert’s opinions and to screen the most important criteria of
proposed principles in our research. And then the empirical study of Taipei
Metro Transit System will be demonstrated to show the application of our
proposed methodology. Finally, the utilization of Fuzzy Analytic Hierarchy
Process (FAHP) method and Data Envelopment Analysis (DEA) model combined with
assurance region analysis will be applied to select the most suitable MRT
stations as the suggested strategies for public sectors. This paper presents a
study on a decision-making problem integrating smart growth principles into the
urban transportation planning development strategies. A case of Taipei metro
transit system will be taken as an empirical example to illustrate the
appliacatin of our proposed methodology for assessing the comparative
performance of TOD planning multicriteria analysis. This paper also proposes a
model to evaluate the candidate TOD station performance of future MRT locations.
The station performance of TODs is based on perspectives that balance and link
the quantitative and qualitative, tangible and intangible, and internal and
external factors.
A Qualitative Study on
the Antecedents of Turnover Intentions in A Turkish Company
Aylin Boztok Devrimci,
Istanbul Bilgi University, Istanbul, Turkey
Dr. Elif Cicekli, Istanbul Bilgi University, Istanbul, Turkey
ABSTRACT
This study explores the
effects of work-life balance (WLB) and other factors on employee turnover
intentions in a Turkish company. Turnover intentions, WLB practices, and other
possible antecedents of turnover intentions are assessed through in-depth
interviews with ten employees in a Turkish company. Results show that turnover
intentions are negatively affected by WLB, particularly consistent work hours
and flexible leave time, and by other factors, including a peaceful and friendly
work environment, and the company’s being an institutionalized and prestigious
company. In order to decrease employee turnover intentions, companies are
advised to focus on these factors. Employee turnover has become a major issue
for management in the twenty-first century (Batt & Valcour, 2003). Companies are
giving attention to this issue (Lucas, Parasuraman, Davis, & Enis, 1987) because
they know that a low level of employee turnover increases organizational
performance and reduces the costs associated with recruiting and training new
employees (Chen, Lin, & Lien, 2010). In this study, a Turkish company is
examined to explore the possible antecedents of employee turnover rate,
including WLB. Qualitative research on
the effects of WLB and other work-related factors on employee turnover
intentions in Turkey is lacking. Studies have examined antecedents of employee
turnover intentions, such as perceived organizational support and perceived
supervisory support (Tuzun & Kalemci, 2012), organizational justice (Ozer &
Gunluk, 2010), job demands, job resources, and intrinsic motivation (Babakus,
Yavas, & Karatepe, 2008). However, all of these studies are quantitative in
nature and do not include WLB as a possible antecedent. Other studies have
examined the WLB-related issue of work-to-family conflict in Turkey, including
the effects of work-to-family conflict on job satisfaction (Anafarta, 2011;
Karatepe & Tekinkus, 2006; Yildirim & Aycan, 2008), on emotional exhaustion (Karatepe
& Tekinkus, 2006; Yavas, Babakus, &
Karatepe, 2008), on job performance (Karatepe
& Tekinkus, 2006; Yavas et al., 2008), and on organizational commitment (Karatepe
& Tekinkus, 2006). However, these studies did not examine the effects of WLB on
turnover intentions.
Intangible Assets and Business Performance
Dr.
Biserka Komnenic, Business School - Novi Sad, Serbia
Dr. Dragica Tomic, Business
School - Novi Sad, Serbia
Dr. Radovan Tomic, Business School -
Novi Sad, Serbia
ABSTRACT
Based on resource-based
theory, firms gain competitive advantage and achieve superior performance by
holding, acquiring, and effectively using strategic assets. These assets include
tangible, physical assets as well as intangible assets. Intangible assets are
valuable, rare, nonsubstitutable, hard to imitate and
thus are defined as strategic assets capable
of generating sustainable competitive advantage and superior financial
performance. Often regarded as a fourth factor of production, in addition
to land, labor, and financial capital, intellectual capital (IC) embodies
intangible value drivers and for that reason, plays increasingly important role
in achieving high business performance. This paper empirically investigates
whether intellectual capital as a strategic asset impacts organizational
performance and also identifies the IC components that may be the drivers of the
traditional indicators of business success. The study sought its evidence from
the banking sector in Serbia, using data from 24 Serbian banks from 2006 to 2008
and applying the VAIC methodology to generate independent variables that reflect
IC. Regression models were constructed to examine the relationships between the
efficient use of human and structural capital and corporate performance
measures, including return on assets, return on equity, and productivity. The
empirical findings of our study support the hypothesis for the positive
relationship between firm IC and corporate performance measures: return on
assets, return on equity and productivity. The growing importance of
intangible resources for contemporary firms is the result of the increasing
complexity in the business environment, as a consequence of structural changes
to the economic system transformed to a now intensively based on knowledge.
Firms need to develop the ability to respond faster to changes. They have to
react smarter and be more sensitive and flexible to market signals, while at the
same time gaining the capability to create their own future. In this competitive
environment, firms cannot compete simply through using standardized solutions
and processes that were designed for a stable and predictable environment.
Fuzzy
Logic and Panel Logistic Models for EU Smart Specialisation Strategies
Dr. Yari
Borbon-Galvez, ZLC-Zaragoza Logistic Centre, Zaragoza, Spain,
SPRU-Science
and Technology Policy Research, University of Sussex. UK
Dr. Maria Del
Sorbo, Institute for Prospective Technological Studies-JRC, European Commission.
Spain. University of Salerno. IT
ABSTRACT
Based on a
fuzzy logic and a panel logistic model, the models suggest 10 configurations
(contexts) of sectoral specialisation of the EU regions, the most specialised
regions being: Oost Nederland, Ouest FR, Saarland, Sachsen Anhalt, Schleswig
Holstein, Thuringen, and Zuid Nederland; and various specialised sectors ranging
from: Construction, Electricity gas and water supply, Manufacture of electrical
and optical equipment, Real estate renting and business activities, and others.
The Sectoral Specialisation of the EU regions was calculated with the Revealed
Comparative Advantage method, capturing the degree to which a given region
employs its economically active population (EAP). The results suggest that, for
a region, to specialise in any given sector there are two ‘necessary
conditions’. Firstly, the sector had to invest heavily in tangible goods
(assets), and second, the region had to increase the shares of high and
medium-high tech manufacturing employment. Moreover, the results show that the
apparent labour productivity of the specialised regions did not have to be
higher than the rest of the EU regions. It was also found that high
specialisation emerged mostly among regions with high disposable income per
capita, and this happens more often not among the largest EU regions. The panel
logistic model shows that smart specialisation strategies targeting R&D
intensity and R&D personnel at regional levels are potentially useful tools for
regional de-specialisation and specialisation, correspondingly. The model is
corroborated with the description of two contrasting cases (regions), one
specialised and other de-specialised. Currently, the European policy on
research and innovation is betting on Regional ‘Smart Specialisation’ as a way
to ‘stay in the game’ (FORAY et al., 2009) at times of increasing global
business competitive pressures. It is expected to revert what had been described
as two decades of high concentration of wealth in high-income regions and low
technological prominence in lagged ones (CUTRINI, 2010), implying that low
technology will hardly pave the way to high-income regions.
Building Team Trust: A
Study in the Asian Context
Dr. Ngan Collins, RMIT University, Australia
Yu-Min Chou, Business College, RMIT University, Australia
ABSTRACT
Numerous scholars have
concentrated on the influences of team trust in team cooperation and
performance. However, there is a lack of studies which explore the relationship
between team trust and team performance in the virtual setting. The issue of
whether team trust influences team effectiveness differently between
conventional and virtual teams has rarely been discussed. The purpose of this
paper aims to address this gap in the literature by investigating team trust in
both conventional and virtual teamwork, in order to seek an understanding of
effective methods for building team trust in these working environments.
Findings from this study show that building interpersonal trust between team
members is important to improve the team effectiveness of conventional teams.
But developing institutional trust within a team is essential for virtual
teamwork. An understanding of how to build team trust in different working
environments can help businesses to increase the operational efficiency. The
rapidly changing business environment has led to competitive pressure to have a
flexible organisational form for increasing working effectiveness so that
teamwork has emerged as an important working style in the industry Teamwork is
widely utilised in organisations to achieve high levels of performance in
business operations because people cooperating can complete the job with better
quality than individuals working alone. With advanced information technology,
the use of virtual teams has been increasing. Virtual teams use computer-based
communication systems to allow distant and time-dispersed employees to combine
their knowledge and skill without the expenses of travel, thus, many
multinational companies utilise virtual teams to achieve operational efficiency
and to improve strategic performance. Research into teams in organisations has
largely investigated the influences of work group characteristics and team
structures on team performance.
Evaluation, Steering, and Support of Knowledge Production in Interdisciplinary
Clusters of Excellence – One Step Beyond
Claudia Jooß,
IMA/ZLW & IfU, RWTH Aachen University, Germany
Dr. Rene
Vossen, IMA/ZLW & IfU, RWTH Aachen University, Germany
Prof. Dr.
Sabina Jeschke, IMA/ZLW & IfU, RWTH Aachen University, Germany
ABSTRACT
Size,
complexity, and dynamics of interdisciplinary research clusters result in an
advantage with regard to resolving hybrid and specific problems. The variety of
different scientific experiences, disciplines, and cultures in (mutual)
scientific and operative research, however, can lead to tension and conflict in
cooperation (Loibl 2005). This explains the high demand for structural and
procedural framework conditions to support interdisciplinary knowledge
production within interdisciplinary research clusters; thus, constant
evaluation, steering, and support of knowledge production is required. This
continuous steering and support of knowledge production is also necessary for
the successful orientation of all cluster actors, teams, projects, and partial
projects toward the superordinate objective of the German Research Foundation (DFG)―the
knowledge objectives derived from these as well as the defined vision of the
individual research clusters. This paper discusses the impact of already
experienced knowledge engineering tools by taking the case study of scientific
DFG clusters, the so-called clusters of excellence, of the RWTH Aachen
University as an example. This impact is mirrored by consequent learning
processes and successes in learning within the research subject clusters of
excellence. A thesis concerning further needs for research of the nationwide
Excellence Initiative, which covers further research constructs, is elaborated
in an outlook that goes one step beyond and opens up the research horizon for
years to come. In 2005/2006, the German Excellence Initiative was
established by the federal government, the German Research Foundation (DFG), and
the advisory council on scientific matters to sponsor and support science and
research. With the help of so-called “future concepts,”(1) “clusters of
excellence,” (2) and “graduate schools,” (3) the Excellence Initiative aims to
equally and broadly support top-level research and increase Germany’s
attractiveness as a center
for university and scientific research so as to sustainably strengthen the
location for science, improve Germany’s international competitiveness, and
visualize peaks in the areas of university and science. (4)
The Role of Incentive
Compensation on Tax Avoidance: Empirical Evidence from Thailand
Xiaoque Chen, Mahasarakham
Business School, Mahasarakham University, Thailand
ABSTRACT
The growing divergence
between book and tax income is being considered by those in authority. Economics
theory makes the assumption that human beings are self-interested, which
indicates managers are motivated to manipulate accounting numbers to achieve
their goals. Also, asymmetric information does provide the opportunity, since
managers hold more information than the shareholders. As a result, earnings
management gets first blame which contributes to the increasing gap between book
and tax income. However, accounting scholars are often quoted that taxation is
an alternative factor that influences the reporting of accounting income. Thus,
the rising divergence between book and tax income is also questioned to be the
result of tax activity. Soon afterward, researchers began to consider the role
of incentive compensation on tax avoidance. This study used unique panel data
from the Stock Exchange of Thailand, obtained from 3 sources: DataStream,
SETSMARTs, and the annual report of a 10-year period database from
2001 to 2010. Information of all listed companies is collected, but only
complete individual firm data sets are analyzed. The result shows that the trend
of the book-tax gap fluctuates. The gap first reaches a peak in 2004 and once
again in 2009. The basic estimation shows that earning management plays a
significant role on the divergence between book and tax income. The estimation
of the tax avoidance model is Tax Avoidance = BT - 0.036007 * EM -
138,884. This paper does not only aim
to investigate whether incentive compensation influences tax avoidance, but also
aims to discover the uniformity of estimation techniques between repeated
cross-section analysis and panel data analysis. OLS estimation reveals that salary and bonus does influence tax
avoidance, but not every year. Pooled-OLS
indicates that salary is the only
factor while fixed and random effects do not show any link between incentive
compensation and tax avoidance.
Determinants of Audit
Committee Effectiveness in Saudi Listed Firms
Dr. Murya Habbash, King
Khalid University, Abha, Saudi Arabia
Dr. Ehsan Al-Moataz,
Professor, Umm Al-Qura University, Makkah, Saudi Arabia
ABSTRACT
This paper provides
empirical evidence that audit committee effectiveness is associated with
economic factors, and that it increases with board independence and board
diligence and decreases with the firm's leverage and state ownership. Moreover,
there are positive associations between audit committee effectiveness and audit
quality and large firm size. At the same time, a substitution effect is observed
between internal control mechanisms, ownership types and audit committee
effectiveness. Audit committee effectiveness increases with the supply of active
and independent directors and with the demand for monitoring, and decreases with
the availability of substitute monitoring mechanisms. There is a vital need to
understand the implementation of the emergence of corporate governance, and
specific aspects such as audit committees in developing countries such as Saudi
Arabia. In recent years the accounting profession, users of financial statements
and governments have expressed concerns over the incidence of fraudulent
financial reporting. One response on the part of companies to these concerns has
been the establishment of audit committees (Al-Moataz, 2008). Turley and Zaman
(2003) point out that corporate failures and malpractices have led to an
increasing emphasis on the governance role of audit committees. Also, Jaggi and
Leung (2007) claim that the weaknesses in corporate governance mechanisms in
Asia, due to a lack of audit committee,s have partially contributed to the
crisis. It is interesting to note, however, that in all of the countries where
they have become established, audit committees have been motivated by unexpected
company failures and/or corporate malpractices (Vanasco, 1994; Guthrie and
Turnbull, 1995; Wolnizer, 1995; Teoh and Lim, 1996; Porter and Gendall, 1998).
Recognising
the importance of audit committees as a major tool to increase confidence in
financial statements the Minister of Commerce issued a resolution in January
1994, mandating all public companies to establish audit committees.
Cross-Country
Differences in Euro Crisis
Dr. Timotej Jagric,
Professor, University of Maribor, Slovenia
Dr. Sebastjan Strasek, Professor, University of Maribor, Slovenia
Marjan Hafner, Institute
of Macroeconomic Analysis and Development, Slovenia
ABSTRACT
This paper shows that
countries with less developed and unstable financial system were more affected
by last financial crisis. We find that non-financial companies’ financial
structure in more affected countries were less favorable, since this structure
is minor influenced by long run financing, which was also confirmed by ANOVA
models. The differences between more and less affected countries are highly
significant by indicators, which are connected with long-run financing. Many
observers and policy makers support the view, that euro crisis can be attributed
to reckless fiscal policy in the peripheral or noncore countries. The
alternative view (Wyplosz, 2010) is that a reform of EU institutions is needed
in order to impose fiscal discipline on the sovereign national institutions,
since a revised euro-zone’s Stability and Growth Pact (SGP) would be doomed to
fail. Soros (2011) defend a different view. He understands the euro crisis as
banking rather than a fiscal crisis and argues that the euro crisis is a
by-product of 2008 crash which forced the financial system to substitute the
sovereign credit of governments for the commercial credit that had collapsed.
Crotty (2009) finds the roots of the crisis in the New Financial Architecture (NFA),
where deep cause on the financial side is to be found in the flawed institutions
and practices of the current financial regime. The existing system of tight
financial regulations was deconstructed through radical deregulation pushed by
financial institutions and justified by efficient financial market theory. Since
different effects of financial crisis are a function of different
characteristics of financial systems we analyze EU countries with a goal to find
significant differences. Our analysis builds on results from our previous
research (see Strasek (2012), and Hafner and Jagric (2013)).
Price Relationship
between Commodity Exchange Market and Traditional Market in Iran: Study of Maize
and Barley
Mina Mahmoudi, University
of Nevada, Reno, NV
Dr. Amir H. Chizari,
University of Tehran, Iran
ABSTRACT
Maize and barley are
important products in feeding livestock in Iran and their price change is
important for policy makers, producers and consumers. According to the huge
transaction volume of these products in Iran Commodity Exchange and traditional
market, this study will pursue the price relationship between these two markets
for these products. For this purpose, we used monthly price data and the
existence of monthly unit root was checked too. Johansen cointegration analysis
and vector error correction model (VECM) showed that for both products, the
prices of traditional market are related to the prices of exchange market and
the price leadership is undertaken by the exchange market. So, buyers and
sellers of these products in traditional market can use price information of
commodity exchange market to determine the ideal price and volume of their
transactions. Maize and barley are two of most important products in Iran which
are used in feeding livestock and their price changes is important for policy
makers, producers and consumers. United Nations Food and Agriculture
Organization (FAO) estimated maize and barley production of Iran respectively
1.6 and 3.4 million tons in 2009 [15]. The market for these products can be
divided into two parts: Commodity Exchange market and traditional market.
Agricultural commodity exchange market has established in Iran in response to
the need of information transparency, managing risk of price fluctuations,
organizing markets in order to enhance performance and reducing transaction
costs. Among all agricultural commodities, maize and barley are listed on the
center of exchange market transactions (during the years 2008, 2009 and 2010 the
share of total maize from all agricultural products traded on the exchange
market, was respectively 68.5, 57.9 and 10.9%, and the share of barley
transactions was 7.2, 22.6 and 26.3%) which have been both cash and future
transactions [13].
The Impact Analysis of
Globalization on Human Resource Management --- A Systems Thinking Model
Dr. Kuan-Chou Chen,
Professor, Department Head, Purdue University Calumet, Hammond, IN
Dr. Keh-Wen “Carin” Chuang,
Associate Professor, Purdue University North Central, Westville, IN
ABSTRACT
Globalization influences
the number and kinds of jobs that are available and requires that organizations
balance a complicated set of issues related to managing people in different
geographies, cultures, legal environments, and business conditions. HR functions
such as staffing, training, compensation, and the like have to be adjusted to
take into account the differences in global management. This paper will focus
on the Human Resource Management aspects of the Human Capital and the
Information system. This paper will further delve into demographics, economy,
change, new technology, total quality management and their inter-relations using
system thinking.
The effects of globalization are not just a recent phenomenon. The term is used
since 1980s, reflecting technological advances that have made it easier and
quicker to complete international transactions. The most appealing aspect of
this has been the integration of financial markets made possible by modern
electronic communication. Globalization is the process of denationalization of
markets, politics and legal systems, i.e. the rise of the so-called global
economy. Globalization refers to an extension beyond national borders of the
same market forces that have operated for centuries. Globalization occurs when
companies decide to take part in the emerging global economy and establish
themselves in foreign markets. They will adapt their products or services to the
customer’s linguistic and cultural requirements. They take advantage of the
Internet and establish an effective presence on the international marketplace
with multilingual corporate web site or even as an e-business. Overall,
globalization requires a combination of linguistic, engineering and marketing
knowledge that is not easily available. This paper will focus on the Human
Resource Management aspects of the Human Capital and the Information system.
Leadership and
Spirituality in Business: The Contributions of Eastern Philosophies
Dr. Stewart L. Tubbs,
Eastern Michigan University, MI
Pradeep Chowdhry, Eastern Michigan University, MI
ABSTRACT
There is a substantial
body of research evidence regarding the importance of leadership and leadership
development to organizational success, Avolio and Luthans (2006),Charan, Drotter
and Noel (2001), Fullmer and Goldsmith (2001), Goffee and Jones (2006),
Goldsmith (2007), McCall and Hollenbeck (2002), McCauley, Moxley and Van Velsor
(1998), Reardon (2007), Viceri and Fulmer (1997), Wagner and Harter (2006), and
White (2007). However, there remains an ongoing controversy about what types of
leadership styles and competencies are the most effective in any given
situation. In this paper leadership is defined as, “Influencing others to
accomplish organizational goals,” (Tubbs, 2007). Based on the model presented in
this paper, the rationale is advanced that the leadership competencies on the
outer wedges of the model are where leadership development efforts should be
focused (Tubbs and Schulz, 2006). This paper focuses on exploring the
contributions of Eastern philosophies (specifically from India) on leadership
effectiveness. Approximately $50 billion a year is spent on Leadership
Development (Raelin (2004). Yet, one of the most frequently asked questions of
leadership scholars is whether leadership can, in fact, be taught and learned.
The answer seems to be a qualified yes. In other words, some aspects of
leadership are more likely to be learnable and others are less so. For the
purposes of this paper, leadership is defined as, “Influencing others to
accomplish organizational goals,” Tubbs, (2007). Leadership is often discussed
in terms of competencies, (Boyatsis (1982), Goleman, Boyatsis and McKee (2002),
Whetton and Cameron, (2002). Competency is a term that describes the
characteristics that lead to success on a job or at a task, Boyatsis (1982).
Competencies can be described by the acronym KSA knowledge, skills and
abilities. The model in Appendix A shows that leadership competencies can be
represented by three concentric circles. These three circles describe three
distinct aspects of leadership.
Inter-Partner Trust and Controlling International Joint
Ventures
Samson
Ekanayake, Deakin University, Victoria, Australia
ABSTRACT
It has long been
acknowledged that international joint ventures (IJVs) offer opportunities for
firms to gain competitive advantage, diversify risks, and to gain access to new
markets and technologies (Ghoshal, 1987). Hence, establishment of an IJV is
considered a ‘compelling option’ for a firm that pursues global strategies (Hergert
& Morris, 1988; Fryxell, Dooley & Vryza, 2002). Despite their importance and
popularity, many IJVs seem to encounter relational and performance problems and
fail (Groot & Merchant, 2000). While estimates of IJV failure vary, a failure
rate of 61 per cent within the first five years of formation has been reported
(Osborne, 2003). The failure rates of IJVs are considered to be significantly
higher than that of a single firm (Bleeke & Ernst, 1991; Das & Teng, 2000).
According to some estimates, up to 70% of all IJVs fail within two years of
their formation (Geringer & Herbert, 1991; Parkhe, 1993). A number of
non-academic studies also highlight the poor performance and high failure rates
of IJVs (e.g., Cooper & Johnson, 2000; Andersen Consulting, 1995). IJVs
generally face greater challenges, because partners, especially foreign
partners, have to control IJVs in settings with which they have little
familiarity (e.g., markets, distribution systems, legal systems, geographical
separation, cultural differences) (Groot & Merchant, 2000; Fryxell et al.,
2002). Controlling an IJV is particularly complex and difficult because of
shared ownership and control (Madhok, 1995; Groot & Merchant, 2000; Fryxell, et
al., 2002). As Groot & Merchant (2000, p. 581) point out, an IJV involves an
obvious, extra dimension of complexity because of the behaviors of the
partners “must be considered in choosing the set of controls to use.” Alliance
partners are ‘neither friends nor strangers’ (Lorenz, 1988).
Social Media and
Youtube As An Attractive Marketing Tool
Dr. Hyun Sook Lee,
National Autonomous University of Mexico, Mexico City
ABSTRACT
Technological evolution and
social media such as Facebook, Twitter, YouTube and others have been influential
in becoming an integral part of people´s everyday lives. The key factor for the
success of social media is conversation, being a cost-effective method for
marketing activities and thus for business practice. YouTube has the advantage
of free world-wide access, to all those connected with the internet, so it must
be attractive as an advertising tool. For Entertainment marketers, YouTube
became a must-buy as an option for anyone trying to reach a great number of
viewers, especially the younger demographic (Learmonth, 2010). The
ability to identify market opportunities and to mobilize or develop resources
for effective exploitation of those opportunities is an essential prerequisite
for gaining competitive advantage. This dynamic competitive firm behavior is
observable and can be studied by examining the patterns of actions and reactions
of firms over time (Miller & Chen 1996a, b; Grimm & Smith 1997; Ferrier 2001;
Chi, Ravichandran
& Andrevski, 2010).
Staying ahead in today's challenging business environment requires an
established infrastructure for maintaining internal processes as well as
external relationships with stakeholders (Managed Network …, 2012).
Increasingly, retailers
and marketers have recognized that online consumers, especially those in younger
demographics, are becoming unresponsive to advertising on social networking
sites. That's partly because they feel overwhelmed by the sheer volume of
advertising, but they also feel the ads aren't in sync with or relative to their
wants and needs. Because of that, young consumers are starting to ignore
traditional advertising and are expecting businesses to change their marketing
tactics to meet their lifestyle desires.
Coca-Cola: International
Business Strategy for Globalization
Dr. Michael Ba
Banutu-Gomez, Professor, Management and Entrepreneurship,
William G. Rohrer College
of Business Rowan University, Glassboro, NJ
ABSTRACT
The purpose of this
research was to analyze the efficiency of global strategies. This paper
identified six key strategies necessary for firms to be successful when
expanding globally. These strategies include differentiation, marketing,
distribution, collaborative strategies, labor and management strategies, and
diversification. Within this analysis, we chose to focus on the Coca-Cola
Company because they have proven successful in their international operations
and are one of the most recognized brands in the world. We performed an in-depth
review of how effectively or ineffectively Coca-Cola has used each of the six
strategies. The paper focused on Coca-Cola's operations in the United States,
China, Belarus, Peru, and Morocco. The author used electronic journals from the
various countries to determine how effective Coca-Cola was in these countries.
The paper revealed that Coca-Cola was very successful in implementing strategies
regardless of the country. However, the author learned that Coca-Cola did not
effectively utilize all of the strategies in each country. CEOs
and top management teams of large corporations, particularly in North America,
Europe, and Japan, acknowledge that globalization is the most critical challenge
they face today. They are also aware that it has become tougher during the past
decade to identify internationalization strategies as well as with whom to do
business (Krishna, 2005). Entering into a foreign market is like discovering
new territory for business owners. Foreign countries have different laws,
economies, business strategies and currency. Cultural differences can also
impede a country's success. Though every business should anticipate a huge
learning curve, entering a foreign market can be easier with the adoption of a
few strategies (Krishna, 2005) Entering into a foreign market could require
changing your product to suit the new market's tastes and preferences.
Disconfirmation and
Customer Satisfaction of Impulse Buying Behavior
Dr. Chuanlin Kang, Chinese
Culture University, Taiwan
ABSTRACT
Although consumer
researchers have investigated impulse buying nearly 60 years, diversified
finding on the relationship between impulse buying and consumer satisfaction
still a question need to study furthermore. Based on the E-K-B model of
consumer buying decision theory, this paper try to justify the definition of
“impulse buying” and try to explore the mediating effects of “disconfirmation”
on the relationship between “impulse buying” and “consumer satisfaction”. A
random sample of 1,327 Taiwanese consumers is examined with questionnaires. The
major finding demonstrated that “disconfirmation” acts as mediating variable
with partial effects between “impulse buying” and “consumer satisfaction”.
Theoretic and practical implications are discussed with respect to impulse
buying behavior. According to Solomon (2001), approximately two-thirds of all
purchase decisions are made in stores. In some product categories, including
candies, chewing gums, oral hygiene products, and cosmetics, more than 70% of
all purchases are unplanned. Statistical data shows that impulse buying has
accounted for a dominant share of all purchase in certain product categories
(Smith, 1996). Previous studies
differentiated impulse buying from non-impulse buying by using various criteria,
including intention, presence of advance planning, and the state of being
rational. As a consequence, pluralities of definitions have been proposed. Among
studies that used presence of advance planning as a criterion, most agreed with
Stern's (1962) view that impulse buying is an unplanned behavior (e.g. Kacen
and Lee, 2002). However, some studies argued that consumers’ in-store
information search and product evaluation should be viewed a planned behavior
(e.g. Wood, 1998). Among studies that used intention as a criterion, Engel and
Blackwell (1982) defined impulse buying as a buying action undertaken without a
problem previously having been consciously recognized.
The 1959-73 Mandatory
Oil Import Quota Program: U.S. Energy Policy or a Camouflaged Subsidy?
Dr. John C. Edmunds,
Professor, Babson College, Wellesley, Massachusetts
Sitanshu Singh, Brandies
University, Waltham, Massachusetts
ABSTRACT
It is illuminating to
study the struggles over the Mandatory Oil Import Program. That program was of
the sort that seems to crop up in countries everywhere; it was an intervention
that diverted profits to a select group, at a cost to the larger polity. The
media never publicized it prominently because it was cloaked in legitimacy and
required too much explanation. The quota program is a suitable and worthy
precedent for today's discussions about energy policy and market regulation
because it had so many parallels with today's battles over energy policy. It
has the advantage that the debate about it was always a mix of analytical
arguments and partisan rhetoric, so it is a relevant model for framing today's
issues. Hopefully the lessons of that mandatory quota program can be applied to
today's emotion-charged debates. The alignments for and against the quota are
easy to understand, the Congressional tactics employed were instructive, and the
bureaucratic wrangling over technical details was the real meat of the program.
The tactics that the adversaries employed, and the public appeals they issued,
were similar to the ones employed in today's struggles. Studying the oil import
quota can shed light on a larger topic, namely, how the U.S. will set its
energy policy, as forecasts of self-sufficiency open up new possibilities. The
oil import quota debate was most intense during a period when the United States
was dependent on imported crude oil, to a degree that mimics the dependency just
before the current production surge began. The quota debate also pitted the
major international oil companies against the smaller domestic firms, commonly
known as the independents. So the Mandatory Oil Import Quota Program has much
to recommend it to today's experts and laymen as they align themselves on all
sides of current U.S. energy policy issues. As a way of presenting the
contestants in the struggle, we take the point of view of the international oil
companies and we portray the "independents" as their adversaries.
Behavior of Consumers
of Healthy and Healthier Food in Israel
Dr. IlanBijaoui, Ashkelon
Academic College
Dana Dayanzada,
Bar Ilan University
HadarVdee, Bar Ilan University
ABSTRACT
The profiles of consumers
of healthy and healthier food are different. Healthy food consumption is a
cultural trend, an ideology. Healthier food is a wider behavior focused mainly
around the phenomenon of obesity. To enter both markets, firms must understand
both consumer behavior and related profiles. In the present research we analyze
the profile of the Israeli consumer of healthy and healthier food and compare it
with the "classic" profile defined in the literature worldwide. The main
motivation of the healthy Israeli consumer is the health of their children.
Consumers of both genders are prepared to spend money for healthy food. The
positioning of healthy products must be focused on content value related to
children's health and on preventive medicine for their relatives. The healthier
food consumer has a different profile than the healthy food consumer. Anybody
can be a healthier food consumers, and therefore these consumers are more
difficult to characterize. Nutrition content related to obesity is the only
common denominator of healthier food consumers. Seventy nine percent of top
executives in the food and beverage business agree that healthy nutrition is the
key issue driving the industry forward, ahead of convenience and price growth
pressure (Deloitte, 2012). Healthy food is a global and growing trend (Nielsen,
2012; Feunekes et al., 2008; Nørgaard and Brunsø, 2009; Grunert, Willys, 2007).
The desire to maintain good health is of prime concern for consumers, and they
read labels in order to obtain information about ingredients, nutrition (Wills
et al., 2009), and negative nutrients in food products (Cowburn and Stockley,
2005; Drichoutis et al., 2006). Consumers in North America show the highest
confidence in understanding nutrition labels. Nearly six in ten (57%) regional
respondents indicated that they mostly understand the details of such labels.
This result is based largely on U.S. respondents, as consumers in the U.S.
appear more comfortable with the labels than are Canadians consumers. Fully 58%
of U.S. respondents report mostly understanding the information, compared with
49% of Canadian respondents (Nielsen, 2012).
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