The Business Review Journal
Vol. 20 * Number 1 * Summer 2012
The Library of Congress, Washington, DC * ISSN 1553 - 5827
Online Computer Library Center * OCLC: 920449522
National Library of Australia * NLA: 55269788
The Cambridge Social Science Citation Index, CSSCI,
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Attitudes of U.S. Managers Towards Outsourcing: Survey Results and Managerial Implications
Dr. Helen LaVan, DePaul University, Chicago, IL
Dr. Gloria Fragoso-Diaz, Tarleton State University, Stephenville, TX
Perceptions of U.S. manufacturing managers are analyzed to generate insights into how U.S. managers perceive the ease of doing business in Mexico, Singapore and China. The information is the used to determine if their perceptions are in line with the measurements of the World Bank and if not the implications of it. U.S. manufacturing managers and executives were surveyed. Their opinions were sought on factors such as cost, employment, protecting investors, paying taxes and trading across borders. Comparisons were made between their attitudes and World Bank data about Ease of Doing Business in the three countries. There were variations with respect to whether managers had outsourcing experience with manufacturing and assembly or with business processes and IT, the former being viewed as more challenging. Unexpected findings included that any cultural similarity between the host and home countries was not an important factor, and that the U.S. managers underrated the challenges associated with employment issues especially in Mexico. Given World Bank data factors, Singapore may be an undervalued host country. Of interest to practically all U.S. manufacturing managers is how to structure the outsourcing of any or all aspects of the manufacturing and related processes to achieve effective and efficient outsourcing. Consider these statistics regarding its prevalence: The estimate is that globally outsourced work totaled $525 billion industry in 2010 (Plunkett Research, 2005). Another way to indicate the magnitude of outsourcing is to express it in terms of the worth of jobs that have been outsourced. One estimate is that by 2015 more than 3.3 million U.S. jobs and $136 billion worth of wages will be outsourced (McKinsey Global Institute ,2003).
A New Process Model for Curriculum Development in Business Education
Dr. Shelley A. Chapman, The Idea Center, Inc.
Dr. Linda Randall, University of Hawai‘i-West O‘ahu, HI
Business education’s challenge is to prepare students to be adroit professionals in the increasingly complex business environment. Revisions to curriculum have been proposed; however, many redesign efforts have not fully targeted the needed learning outcomes for today’s professional. We contend that the curriculum development process is a critical factor in a successful redesign of business curriculum. The proposed process model is based on the integration of Mezirow’s transformative learning theory and Heifetz’s adaptive leadership model. Through this new process, faculty will be encouraged to rethink their assumptions, resulting in a redesigned curriculum more reflective of the current needs of businesses. Graduate business education is at a critical crossroad because it is confronted by pressure from businesses demanding professionals who can lead and manage organizations in increasingly uncertain environments. Today’s graduate business students need to be more than competent in the specific theories and skills of strictly functional areas, they must be able to think flexibly and creatively (Palmer, 2007); that is, they need to be able to lead in the midst of ill-defined problems, tremendous uncertainties, and increasing complexities. We propose a new approach to developing the adroit managers called for by the 21st Century business environment. We look more deeply into the process by which business education curricula are developed, as we believe that changing this process will perforce change the curricula and ultimately the education of future business leaders. As Sullivan (2005) notes, while early models of professional curriculum design served the educational community well and established the need for a strong theoretical foundation in professional education, it is possible these models led to an assumption among curriculum planners that theoretical knowledge could be formulated in general, context-free and value-neutral terms which could possibly deny context, narrative, and the ethical implications of knowledge.
Cited by; 10
Dr. Subhendu Das, CCSI, California
Moneyless economy (MLE) does not have any money in the economy. All products and services are free for all people. This means everybody must work, work for free, and get everything they want for free also. Any work that a society needs is considered legitimate. MLE is not socialism. MLE has the ability to provide a lifestyle that anyone wants. We show that it is possible to run the exact same economy that we have now, in the exact same way, and without money. Any government of any country can make smooth transition to MLE if it so desires and is not afraid of money power that exists today in our society. MLE will eliminate poverty, crime, corruption, and wars from the world. MLE will protect environment, human values, and bring true democracy to all countries. In a sense MLE will bring heaven on earth. We should understand that the money is free, like air, for the central bank, thus in one sense we have MLE now. Similarly the earth as given to us is also free. Thus all we need to implement MLE is to change our mindset. We need MLE for the evolution of the society to the next higher level. The laws of nature and the characteristics of nature are the fundamental truth of the universe. If any manmade system or principle does not match with this universal truth then we must make all efforts to change the system to protect the earth and the humanity. The present system of capitalism, headed by the privately owned central bank (CB) as king, has evolved along with the internet technology and financial system, created the global money, and has made the system ready to match with this universal truth of nature.
Cited by; 11
Globalization: Payoffs, Multinational Corporations and Public Policy Makers-A New Paradigm
Dr. Thomas G. Costello, Eastern Illinois University, Charleston, IL
Dr. Ayse Olcay Costello, Eastern Illinois University, Charleston, IL
The unstoppable pace of globalization; the rise and fall of fortunes of both countries and companies; and structural changes taking place in the developed regions of the world are creating numerous puzzling questions for researchers, public policy makers, high level executives of corporations and citizens all over the globe. Despite the seriousness of these questions, such as how to create more jobs in developed countries while continuing to build an industrial base in developing countries; and the urgency of needing to find answers; existing literature has focused its sights on answering a more limited set of questions (e.g., the antecedents of entry mode decisions made by multinational corporations.) In this paper, we address the limited focus of the existing literature by offering a new framework that builds upon and extends the existing international business, strategic management, and economics (i.e., property right economics, and game theory) literatures; and starts to answer some of these critical questions. The world's top 100 non-financial multinational corporations, alone, enjoyed total sales of $ 8.4 trillion, and employed more than 15 million people around the world in the year 2008 (UNCTAD, 2010). Compared with the 2009 gross world product estimate of $58.07 trillion (CIA, 2010), it can easily be seen that globalization’s relentless push to deepen economic ties between countries and continents continues unabated. As a result of the pervasiveness of globalization and its seemingly unstoppable persistence, public policy makers who run countries, top level executives who run globe spanning multinational corporations and citizens who face rising unemployment rates in their counties are faced with a multitude of seemingly intractable questions (Gruenwald, 2008; Stiglitz, 2007.)
Cited by; 2
Managing Customer Satisfaction: A Conceptual Framework
Dr. Andrzej Kobylanski, Penn State Greater Allegheny, PA
Dr. Bozena Pawlowska, University of Warmia and Mazury in Olsztyn, Poland
Contemporary work on customer satisfaction is more focused on investigating the relationship of customer satisfaction and various aspects of business performance. However, there is a gap in literature to address the complexity of organizational issues in the process of customer satisfaction management. Therefore, the main objective of the paper is to redirect satisfaction research toward a strategic approach that encompassess an understanding that customer satisfaction can be managed in a systematic way through the process of continuous improvement. This paper proposes a conceptual framework that reflects a systematic approach of effective management of a complex subject of customer satisfaction. It is widely acknowledged that many businesses around the globe try to build their competitiveness based on quality. Researchers are recognizing paradigmatic shift from a focus on delivering high quality of the final product, toward assuring high quality in every step of the manufacturing process. This orientation shift resulted in the development of certificates (ISO), management systems (Total Quality Management) and pro-quality programs (Malcolme Baldridge Quality Award). All of these approaches have been designed to increase effectiveness and profitability through delivering products and services with quality level that meets customer expectations and thus provide satisfied customers. However, many of these attempts failed because implementation of these systems has not translated into increased customer satisfaction and therefore failed in terms of an increased level of sales.
Cited by; 14
Overcoming Organizational Impediments to Strong Sustainability Management
Dr. Dave Robinson, Central Queensland University, Australia
Mark Boulle, Central Queensland University, Australia
With frequent corporate collapses and global market failures, the financial and economic systems of the Western world are coming under ever increasing scrutiny. These events, and a deeper introspection, call into question the roles played by firms in embracing sustainability practices. A firm's resources are combined to apply its unique capabilities to the challenges of the external environment, industry forces and its competitors. In so doing firms must meet the twin strategic objectives of maximizing shareholder returns to create a sustainable future (for the firm) AND maintaining a responsible approach to sustainable development in areas impacted by the firm. Whereas resources may be classified as tangible or intangible, it is the intangible resources, including the firm's reputation, organizational effectiveness, and innovation propensity that comprise the foundation for sustainable competitive advantage. The development of business-level culture has been portrayed as a six-step journey (Robinson, 2007). Systemic constraints may inhibit the development of organizational culture just as personality disorders may afflict individuals. It is asserted that the so-called big five individual personality traits (McCrae and Costa, 2003) can be related to three categories of organizational pathology (Robinson, 2010), which in turn impede effective sustainability management practices. Additionally, it is proposed that sustainability practices in firms may take one of three forms, namely non-sustainability, weak sustainability, and strong sustainability. Whilst it is clear that all firms ultimately need to embrace a culture that supports and encourages strong sustainability, to date very few have managed to do so, being either unwilling or unable to go beyond the non-sustainable or weak sustainability levels.
Cited by; 13
Evaluating Teacher Professional Development Programs in Fostering Native Hawaiian High School Completion
Dr. Larson Ng, University of Hawaii at Manoa, Honolulu, Hawaii
The following study attempted to analyze professional development activities and its relationship towards Native Hawaiian public high school completion in the Leeward District on Hawaii’s Island of Oahu. Using a correlation and bivariate regression procedure, the revealed econometric relationship between professional development expenditures and high school completion from 2000 to 2007 was disturbing. Although professional development expenditures had predominately increased for all high schools, increases in high school completion were not observed for all schools. Moreover, with the exception of Kapolei High School, there was no conclusive econometric evidence to indicate that the professional development undertaken contributed to higher levels of Native Hawaiian high school completion during 2000 to 2007. Instructional support is another critically important factor that contributes to high school completion. In many cases, the amount of instructional support provided to teachers is detrimental in their efforts of assisting students to graduate from high school (Domitrovich, Gest, Gill, Bierman, Welsh, & Jones, 2009). Although there are many techniques to measure the productivity of the many elements that comprise instructional support, assessing its effectiveness through a financial perspective remains one practical way to accomplish this task (Beard, 2009). Consequently, this study attempted to test whether funds spent on professional development activities (i.e., student support personnel, costs to support teachers, and other program support expenditures) in Oahu’s Leeward District has had a positive impact on public high school completion from 2000 to 2007 (Hawaii Department of Education, n.d.).
A Correlational Analysis of Online Learning and the Transformational Leadership Style
Dr. Terri Washburn, Walsh College of Accountancy and Business Administration, Troy, MI
Unchecked growth in online learning brings forth questions about the significance of virtual classrooms upon higher education. The growth in online learning has been swift and unprecedented, and shows little signs of waning (Lei and Govra, 2010). This study builds upon research conducted in 2011 that explored a relationship between the model of learning employed during pursuit of a Master of Business Administration (MBA) and the transformational leadership style of the learner (Washburn, 2011). The 2011 study surveyed two semesters of MBA students in their capstone course, and found no relationship. This current research sought to increase sample size and seek further understanding, and so surveyed an additional semester of MBA students at the same institution. Participants completed the Bass and Avolio’s MLQ-5X Multifactor Leadership Questionnaire (2004). After collecting the survey responses, the researcher divided respondents into categories depending upon whether they took none, some, or most of their coursework online, and a statistically significant correlation between learning modality and the resultant transformational leadership style of the learner was sought. A notable difference in the earlier (2011) study was that non-parametric statistical tests had to be used due to data that was not normally distributed. In this current study, data was normally distributed or approached normal distribution, and a one-way ANOVA used. The results supported the earlier findings, and retained the null hypothesis that no significant relationship between learning modality and leadership style was present.
Cited by; 10
Peer Evaluation in the Online Classroom: Evidence from Virtual Teams
Dr. Maureen Hannay, Troy University Global Campus, Honolulu HI
Businesses increasingly rely on teamwork as one of the major organizational structures used to direct the flow of work towards corporate goals (Brooks & Ammons, 2003; Brutus & Donia, 2010). Therefore organizing students into teams to complete projects, analyze cases or develop presentations seems more relevant in business degree programs (Brutus & Donia, 2010). The use of teams has made the evaluation of student performance more complex (Malone, 2011) and as a result more and more college professors have also instituted peer feedback tools to more effectively assess both the work of student teams as a whole, and the contributions of individual team members (Falchikov & Goldfinch, 2000). This research examines peer feedback scores collected from133 students in seven sections of a capstone course in a graduate-level business program. Results indicate that the scores students assign to their teammates are closely correlated with the overall course grades assigned by the instructor, which provides support for the validity of peer review. Further, the data indicate the while there were no differences in the peer evaluation ratings that men and women received, there were differences in the peer evaluation ratings that men and women assigned as men award significantly higher ratings than women. In order to better equip students for organizational life, team projects have become a larger component in the curricula of many post-secondary programs (Falchikov & Goldfinch, 2000; Friedman, Cox, & Maher, 2008). Teamwork enhances the development of skills and knowledge particularly relevant to the real world, provides an excellent forum for experiential learning, promotes collaborative learning and helps to more efficiently instruct large student numbers (Fellenz, 2006, p. 570).
Cited by; 2
Father-Daughter Succession in China: the Conceptual Framework and a Case Study
Dr. Zhong Qin, Professor, Shantou University, China
Qiao Wang, Shantou University, China
This paper investigates succession between father and daughter using a case study in a family firm in China. This is the first empirical research on this issue in China. The study is based on an in-depth interview to a female CEO who has taken over family business established by her father. This study provides the conceptual framework and investigates four issues in father-daughter succession: the impact of Confucian ideology, gender conflicts, role of other family members and planning and training. Drawing on the information of this case, the authors also discuss managerial implications in terms of cultural influence, succession planning and training on both generations, and comments on how to deal with second generation’s reluctance of taking over and gender conflicts during succession. For Chinese family firms, as far as succession is concerned, family members will always be the first preference or even the only option (Weidenbaum, 1996). This has posed an interesting research topic as how to manage succession in family businesses in China as founders of many family firms are approaching their retirement age. Previous research suggests that only 30% family businesses are expected to survive the second generation, around 15% are expected to survive to the third generation, and less than 3% are expected to survive to the fourth generation (Beckhard & Gibb Dyer, 1983; Kets de Vries, 1993; Ward, 1997). Successful succession is therefore vital for the survival of the family businesses. While it is possible to draw from existing experience and research based on developed economy, it is worth noting that “the Chinese business enterprise family differs in fundamental ways from the usual Western business firm” (Weidenbaum, 1996, p. 141). However, research on family businesses in mainland China remains scarce, and succession has not yet captured much research interest. The lack of research in this area is largely related to the newness of family firms in China. Despite its long history, family business is a relatively new phenomenon in China, and its fate has been closely associated with private firms. Private firms ceased to exist after the nationalization campaign launched by the Communist Party in the 1950s.
Cited by; 15
An Evaluation of Examination Results between Students in Management Courses Being Video
Monitored Verses Those in a Traditionally Monitored Environment
Dr. Marian C. Schultz, The University of West Florida
Dr. James T. Schultz, Embry-Riddle Aeronautical University
Joshua J. Schultz, Spring Hill College
Computer technology has changed the world, and with it the educational delivery systems. An increasing number of students are taking advantage of the ability to take college courses through online distance learning programs. This number continues to increase on a yearly basis. As the number of online students continues to increase, so does the body of research on how students’ performance varies between online and traditional courses. Some studies have found that students perform much better in one mode of delivery than another. One area of research has concentrated on how students perform in online verses traditional examinations. With the advent of modern online learning, examinations were either open book, or required a student to be present at a location to have an examination proctored. Having to go to a location to have an examination proctored was seen as a deterrent to many students, while allowing students to have a text book, notes and perhaps other assistance available when taking an examination, is not viewed as academic rigor or quality by some institutions of higher learning. The objective of this study was to ascertain if a significant difference exists between evaluations being proctored through an online video camera, as opposed to one being conducted in a typical classroom setting where a proctor is present. While the study found while there was a statistical difference in examination scores between students taking video, verses traditionally proctored examinations, additional research is necessary using a larger sample size to validate these findings. The growth of online education has raised new challenges for educational institutions when it comes to achieving testing integrity. According to studies by the National Center for Education Statics (NCES), the number of students enrolled in at least one online class has increased by 11.1 million from 2001 to 2006, and the NCES predicts that by 2014 students fully enrolled in online courses will reach 3.55 million (Online Education, 2011).
Collectivism & Ethnocentrism: An Inter-and-Intra National Analysis Among the Thais, Chinese, and India
Dr. Kritika Kongsompong, Chulalongkorn University, Thailand
Rochelle Powtong, Chulalongkorn University, Thailand
This paper presents empirical results of ethnocentrism in relation to the collectivist strength among subjects in three countries: Thailand, China, and India. The inter-national analysis on the subjects attempts to diagnose and contrast the cultural diversity between the people of the three countries. As for the intra-national analysis, the men and women within the countries are separately examined to analyze the cultural differences. Results show that Thais, Chinese, and Indians are significantly diverse on the realm of collectivist and ethnocentric strengths. Regardless of the nationalities those who are more collectivist show the tendency to be more ethnocentric in their consumption behavior. In contrary to the prediction from the literature review, however, the intra-national results for subjects of the three countries show that men are generally more collectivist than women. Therefore, the Thai, Chinese, and Indian men are likely to be more ethnocentric with their purchase endeavors than their counterparts. Understanding international diversity in consumption behavior has become a task that seems to be impossible to accomplish. Nonetheless, the globalization of today’s world has forced many academics and practitioners alike realize the importance of establishing some understanding on the patterns of consumer behavior around the globe. To date, most cross-cultural consumer behavior studies have been cross-national in their orientation; i.e., they have contrasted consumers across different countries. This cross-national orientation is understandable since there often exist major cultural differences between the peoples of different nations. There is a growing reason to believe, however, that marketers should also be aware of, and concerned about, intra-national differences in consumer behavior; i.e., differences that are cultural based, and which can be used to differentiate consumers within given national boundaries. Moreover, researchers have begun to consider the manner in which intra-national behavioral differences exist across different ethnic groups that reside within a culture (i.e., Lenartowicz and Roth 2001; Nicholis et al. 1997). Their work is adding further depth to knowledge of the impact which culture has on behavior. This study explores consumer behavior differences both inter-nationally and intra-nationally.
Efficiency Analysis of US Banks
Amir Moradi-Motlagh, Swinburne University, Australia, Melbourne
Dr. Amir Abdekhodaee, Swinburne University, Australia, Melbourne
Dr. Ali Saleh, Swinburne University, Australia, Melbourne
Dr. Mehran Ektesabi, Swinburne University, Australia, Melbourne
This paper examines the technical efficiency of the US banks in 2010. The results based on the bootstrap data envelopment analysis (DEA) reveal that a high level of inefficiency exists in a sample of 100 large US banks. Moreover, return to scale properties of individual banks is investigated. This is done by applying a proposed hypothesis testing procedure on bootstrap results. Our findings also show that larger banks are more likely to operate under decreasing returns to scale. At the same time, however, smaller banks tend to operate under increasing return to scale. Finally, for comparison purposes, we also present the efficiency scores derived from the naïve DEA. From the results, it is clear that there is a considerable difference between these methods. The banking industry is the key to the economical prosperity of all countries as a whole as this industry is the engine of economic growth by providing financial services for other sectors. This significant role and tough competitive environment in the US banking industry along with this threat that inefficient banks may not long survive attract plenty of interest in banking efficiency studies. Financial ratio analysis traditionally has been used to measure the efficiency of banks and other organisations, however, they have been criticised due to the inability of being applied in multi-input/output environment in company with the failure of providing an overall measure. For example, a bank can be strong in one ratio and poor in the other. Given these drawbacks, it is imperative to find and employ alternative methods capable of providing more meaningful and accurate results. Data envelopment analysis (DEA) as a nonparametric method in operations research and econometrics, used for estimation of production frontiers, has overcome the above difficulties.
Cited by; 4
An Exploration of the Applicability of the FACT-Vortex Leadership Model in SMEs
Brad Nikolic, Central Queensland UCentral Queensland University, Australia
Prof. David Robinson, Central Queensland UCentral Queensland University, Australia
New challenges in modern day business demand new ways of approaching subordinates as a leader. Subordinates have different levels of maturity and value systems. This paper assumes that effective leadership has to adjust to the different levels of maturity of subordinates. Although the need has been previously documented (Hersey & Blanchard, 1993; Vecchio, 1987) we fear that it has been perhaps over-simplified, certainly worthy of further research, therefore a new paradigm for leadership is needed to meet the challenges of modern day business. Whereas business education may provide tools for real world challenges it is ultimately up to the leader to apply the tools. What we propose is a fusion of four different leadership styles, namely ethical, authentic, charismatic, and transformational leadership, akin to phases of development in individuals. A framework is introduced which illustrates how an energy flow, which we liken to a vortex, can be created, based upon an acute understanding of organizational wellness and individual values. The proposed framework, known as the FACT-Vortex Leadership Model, is subjected to an applicability test through an in-depth phenomenological interview with a prominent local business leader. Significant similarities were found between that leader’s lived experiences and accepted leadership theory, which is the subject of discussion at the end of this paper. Firms compete on a global level, technology is evolving and cultures are transforming. Modern-day advances in business, such as Internet, Smart phones, multiple operational headquarters in different countries, environmental impacts or unpredictable events, have created a new set of challenges that organizations and their leaders have to adapt to (Martin & Ernst, 2005).
Cited by; 5
A Study on the Impact of the Employment of Industrial Foreign Workers on
Taiwanese Electronics Industry’s Competitiveness
Mei-Luan Huang, Nan-Jeon Institute of Technology
Dr. Yaw-Yih Wang, Central Taiwan University of Science and Technology
The current study first defines industry competitiveness, and subsequently cites literature to clarify major indicators that influence industry competitiveness and uses the questionnaire survey method to quantify the influence of every construct indicator on the industry competitiveness of Taiwanese electronics companies that have employed foreign workers. 21st century is an era moving towards globalization, with national competitiveness, global labor division and economic development put atop on the agenda of every industrial country. These days, industries in Taiwan, whether it is traditional manufacturer or the most competitive high-tech industries, manpower is ubiquitously in high demand. Therefore, labor supply of the job market has been the pivotal force behind Taiwan’s economy and one of the major resources that gives life to Taiwan’s economic growth. Over the past decade, though, due to the obvious decline of the population growth rate in Taiwan, added with the rapidly increasing number of highly-educated citizens, there has been an obviously increasing shortage of grassroots labor. To reinforce the “14 National Constructions” and “6-Year National Construction Project”, the government started to loosen the regulations regarding employing migrant workers in 1989; in the years that followed the introduction of foreign workers, due to the needs of social development and domestic industry labor force, foreign workers have been introduced into Taiwan’s job market, with the number of migrant workers amounting to 379,653 as of the end of 2010, a number occupying 3.6 % of the domestic labor force, 11.5％ of the domestic grassroots labor in Taiwan. The introduction of foreign workers can not only mitigate the fierce thirst of grassroots labor in many local industries, pushing the development of local industries and assisting in major constructions, but can also be a great help in many households by sharing domestic chores and taking care of the long-term home care patients.
Analysis of the Green Job: A Challenge for the European Union
Dr. María Teresa García-Alvarez, University of Coruna, Spain
Dr. Laura Varela-Candamio, University of Coruna, Spain
In the last decades, the renewable energies in the European Union are acquiring a great importance due to the positive economic-social implications that entail its development. So, among other factors, we can emphasize the obtaining of environmental benefits, of a greater energetic dependency or the employment creation. The objective of this paper is to analyze the effects of the development of renewable energies, on employment in the European Union, and to establish the professional qualifications more suitable in this industry in expansion. A source of renewable energy is that which is produced in a continuum way and it is characterized by being inexhaustible in the time and by meaning a lower environmental impact. It is the case, among others, of the wind, photovoltaic and thermal solar, biomass or mini-hydraulic. The development of an energetic industry based on this type of production technologies can entail various positive economic-social implications. So, this energy allows: a) a great energetic independency, b) the obtaining of environmental benefits due to the reduced emissions of carbon dioxide that such production technologies suppose and c) the driving for a positive economic increase by means of the continuous innovation and d) the creation of new jobs (Wei et al., 2010). However, the renewable energies also imply some limitations, such as the necessity of establishing a governmental support that allows its development and its protection from the direct competition that conventional technologies suppose. In this context, the European Union establishes an objective of renewable energy consumption of 20% in 2020. With this aim, it establishes the necessity of developing an institutional support mechanism, by part of the member states, although it gives freedom for its selection and development.
Dual Long Memory Property in Returns and Volatility: Evidence from Turkish Stock Market
Dr. Gokce Tunc, Izmir University of Economics, Izmir, Turkey
The objective of this paper is to investigate the dual long-memory property in the returns and volatility of an emerging stock market namely the Turkish stock market. ARFIMA-FIGARCH and ARFIMA-HYGARCH models are used to estimate the degree of persistence in both returns and volatility in the daily data simultaneously. Furthermore, this research broadens the models by using more sophisticated distributions than normal distribution, such as student-t and skewed student-t distribution to capture excess kurtosis and skewness in the returns. The empirical results indicate the presence of dual long memory property in the returns and volatility of Turkish stock market. The volatility estimation results also indicate that the Student-t and skewed Student-t distributions outperform the normal distribution. Growth in financial markets and the continual development of new and more complex financial instruments has led to a growing need for theoretical and empirical knowledge of the volatility in financial time series. Recent empirical studies found that many financial return series may exhibit long memory or long-term dependence on market volatility (Ding et al. 1993; So, 2000). The presence of long memory in returns and volatility implies that there exist dependencies between distant observations. Such long term dependence was found to have significant impact on the pricing of financial derivatives as well as forecasting market volatility. The prior research on long memory in the conditional mean and variance was undertaken independently (Xiu and Jin, 2007; Dionisio et al. 2007). However, dependencies between distant observations are often observed in both returns and volatility simultaneously. Granger and Joyeux (1980), Hosking (1981) and Geweke and Porter-Hudak (1983) were the early contributors who proposed the use of autoregressive fractionally integrated moving average (ARFIMA thereafter) processes to test the long memory property in the asset returns.
Developing Credit Scoring Models When Small Sample Sizes Are Available
Vesarach Aumeboonsuke, National Institute of Development Administration, Thailand
Dr. Arthur L. Dryver, National Institute of Development Administration, Thailand
Making lending decision is an important process for financial institutions because it has a direct impact on the profits and losses of financial institutions. Therefore, financial Institutions try to develop good credit scoring models to make lending decisions. The purpose of this research is to compare the performance of the credit scoring models between multiple linear regression and logistic regression. The comparison of the credit scoring models is done through using three sets of population data generated through simulation. The odds ratio is adopted in this research as an evaluation tool. The findings of this research are useful for financial institutions especially commercial banks because they present the evidence of how well each credit scoring model can predict the credit score of the loan applicants. Credit scoring is the set of decision models and their underlying techniques that aid lenders in the granting of consumer credit (Thomas et al., 2002). When the loan applicants approach the bank to request for loans, they are required to submit their information such as employment, salary, nationality, residential status, , etc. to the bank. Consequently, the bank will use the credit scoring model to process the information and compute the credit score of each loan applicant. The credit score is the continuous interval scale that varies, depending on the users’ predetermined range. The bank will set the critical credit score as the benchmark such that, the bank will accept any loan applicant whose score lies above the critical score. On the contrary, the bank will reject any loan applicant whose score falls below the critical score. Evaluating credit worthiness of credit seekers is a crucial process for financial institutions because their existence largely depends on how such a process is being conducted. Financial institutions use a variety of credit scoring methods and a variety of criteria to select the best credit scoring methods. This research compares the performance of credit scoring methods between multiple linear regression and logistic regression. The odds ratio is used for comparing the performances of these methods.
Product Tactics in a Complex and Turbulent Environment Viewed Through a Complexity Lens
Dr. Roger B. Mason, Durban University of Technology, South Africa
This paper is based on the proposition that the choice of different product tactics is influenced by the nature of the firm’s external environment. It illustrates the type of product activities suggested for a complex and turbulent environment, when viewing the environment through a chaos and complexity theory lens. A qualitative, case method, using depth interviews, investigated the product activities in two companies to identify the product activities adopted in a more successful, versus a less successful, firm in a complex/turbulent environment. The results showed that the more successful company uses some destabilizing product activities but also partially uses stabilizing product activities. These findings are of benefit to marketers as they emphasize a new way to consider future product activities in their firms. Since businesses and markets are complex adaptive systems, using complexity theory to understand how to cope in complex, turbulent environments is necessary, but has not been widely researched, with even less emphasis on individual components of the marketing mix. Increasing product complexity, rate of change in most markets, increasing speed of technological development and obsolescence, and unstable and rapidly changing customer needs is making product management a risky business. Since product life cycles (PLC) are getting shorter, and obtaining information for forecasting in these circumstances is nearly impossible, new product development is even more risky and requires a new approach. It needs to be quick and continuous. Since launching new products is becoming more uncertain and difficult, it must not be done at the expense of product improvement or enhancements.
Cited by; 3
Networking as a Strategy for Firms in a Developing Country to Enter Developed Country Markets
Dr. Mohamed Zain, Universiti Putra Malaysia, Serdang, Malaysia
Dr. Siew Imm Ng, Universiti Putra Malaysia, Serdang, Malaysia
Norizan Kassim, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia
Today, more and more firms are striving to enter foreign markets due to the business potentials in those markets as a result of the breaking down of trade barriers arising from globalization. Based on a multi-site case study method this paper examines how indigenous small and medium enterprises (SMEs) from a developing country of Malaysia used their network relationships to facilitate their entry into developed foreign markets particularly those in developed countries. The evidences from the cases of three software and one control SMEs in this study provide some indications that their networking relationships with foreign parties not only facilitated and motivated their entry into those markets, influenced their market selection and their mode of entry decisions, but they also helped them gained initial credibility to enter developed country markets. All businesspeople must be aware of the effects of today’s globalization on their business. As trade barriers are broken down due to globalization, more opportunities as well as challenges are opened to or faced by businesses to explore foreign markets, particularly when the their domestic market is small. With globalization, indigenous firms that have been focusing in domestic market are forced to be internationally competitive and to participate in international business. The global economy now reaches every corner of the world and internationalization now involves not just the large corporations but also many small and medium-sized enterprises (SMEs), many of which are located in developing countries. The international market entry process of SMEs from a network perspective has been intensively explored in the past (see Johanson & Mattson, 1988; Axelsson & Johanson, 1992; Johanson & Vahlne, 1992; Coviello & Munro, 1997; Andersen, 1996; Ellis, 2000). Chetty and Patterson (2002) pointed out that the concept of business networks (Anderson et al., 1994) came from the social exchange perspective on social network (e.g. Cook & Emerson, 1978).
Cited by; 2
Innovation of Low and Medium-Low Processing Industry: A Reference Innovation Model
Dr. Borut Likar, University of Primorska, Slovenia
Marko Ropret, University of Primorska, Slovenia
Peter Fatur, University of Primorska, Slovenia
Dr. Janez Kopac, Professor, University of Ljubljana, Slovenia
Maja Skafar, Independent Researcher, Slovenia
The aim of our research was to design a “Reference Innovation Model”, presenting the most important set of innovation factors, and their concrete values related to innovation and business performance. The Model is based on the analysis of the most innovative companies and provides concrete guidelines as to how the existing state may be improved. The focus was made on the largest economy sector in Slovenia, i.e. low and medium-low processing companies (henceforth referred to as the NTP). The analysis was performed in three phases. In Phase 1, companies were classified into the groups pursuant to their innovation performance (Non-Innovators, Innovation Followers and Innovation Leaders). The Phase 2 confirmed that the Innovation Leaders are also the most successful group as regards business performance. Finally, (Phase 3) the Reference Innovation Model was drawn up. The Model indicates that both appropriate innovation inputs (investments) and effective innovation process are related with the company’s innovation and business performance. In terms of innovation inputs it seems that the attaining of the Leader position does not presuppose the need for increasing the overall innovation expenditures above the Followers level. The move to Innovation Leaders, however, requires a more effectively managed innovation process. So as to achieve a place among the Leaders, both Followers and Non-Innovators should restructure the innovation expenditures from being machinery-oriented (majority of innovation expenditures) into being balanced between machinery/equipment (1.6 % of total turnover) and intramural/extramural R&D expenditure (1 % of total turnover). While Non-Innovators are particularly lacking a clear Innovation policy (I_F1), considerate lag in managing innovation process was also shown in negligible attention to new products (I_F2) and not performing well at satisfying user’s needs (I_F3) - both for Non-Innovators and Followers.
Cited by; 4
Business Valuation Process Review
Professor Wael Al-Rashed, Kuwait University
Dr. Mohamad H. Atyeh, Kuwait University
The objective of this paper is to provide an overview of the business valuation process theoretically and practically. This paper focuses on the general use of the business valuation process and a sample case study is provided on a listed telecommunication company based in Kuwait. The well-recognized valuation models among many existing, the discounted cash flow and the relative valuation methods are presented. The results show that, there is no unique framework for the business valuation process that exists in practice. Other than using the theory in valuation, when it comes to a real case, knowledge and experience are major parts. Since the 1950’s, theories and practices of corporate finance have grown to explain and clarify how the investment managers react with or deal with any investment whether it is a new or current investment. On the other side, how the investors react to companies’ financial announcements and investment decisions. A lot of research and studies have been conducted regarding this subject, no dout, business valuation is considered as a science. Many literatures and theories were developed within the area of business valuation which contribute and facilitate the valuation process and minimize the risk related to this kind of assignments. However, no unified framework determines how the valuation process to be conducted and the procedures to be taken. Hence, taking into consideration the formal financial and accounting standards and procedures, there is no right or wrong way to perform a valuation. Therefore, the previous makes it interesting to review the business valuation process theoretically and analyze it practically to see the process and procedures of its application on a real company. This research project covers the most important and used business valuation methods which are income based and relative valuation approaches. In addition to a practical case study of a telecommunication company based in Kuwait will be called (Tel).
Cited by; 4
The Stock Market Reaction to the U.S. Quantitative Easing Announcement:
Evidence in Emerging Stock Market
Dr. Yaowaluk Techarongrojwong, Assumption University, Thailand
Although many studies have examined the impact of U.S. conventional monetary policy announcement on stock return in other countries (Ehrmann & Fratzscher, 2006; Hausmann & Wongswan, 2006; Wongswan, 2009), the impact of the U.S. unconventional monetary policy announcement on the stock return in the developing country especially in the firm level analysis is unexplored. This paper investigates the effect of quantitative easing announcement in the U.S. on the stock return in Thailand by using the event study approach. The announcements on November 25, 2008 and November 3, 2010 were examined with 653 firm-announcement observations. Several findings are noted. First, the quantitative easing announcements in the U.S. give the negative impact on the stock return in Thailand. Second, the negative abnormal return is also visible on the day prior to the announcement day, which disappears in a few days and becomes statistically significant and positive within a week. Third, the capital intensive industries respond to the quantitative easing announcement in the U.S. with the largest magnitude among 8 industry sectors. The subprime crisis in late 2007 made the U.S. economy sluggish (Dodd, 2007). The U.S. economic recovery has been fully unachievable until present. In the normal time, the Central Bank influences the economy by using the conventional monetary policy which includes the open market operation, the direct borrowing through the discount window and the reserve requirements (Meulendyke, 1998; Nakornthab, 2009). The conventional monetary policy seems ineffective since the Federal Reserve maintained the low policy rate (0% - 0.25%) on December 16, 2008. The unconventional monetary policy is the new solution that the Federal Reserve implements. One of the chosen monetary policy tools is the Quantitative Easing (Q.E.). The Q.E. is an increment in size of the Central Bank’s balance sheet by using the new created money to purchase the securities from the commercial bank and the private sectors. The purchased securities include the long-term government securities and the mortgage back securities.
Cited by; 6
The Lure of Online Shopping Sites: An Analysis of Rakuten and Amazon in Japan
Dr. Shoichi Morimoto, Senshu University, Kanagawa, Japan
Kaori Nagahata, Senshu University, Kanagawa, Japan
Electronic commerce (e-commerce) has become a popular method of transacting all over the world. In particular, business-to-consumer (B2C) online shopping, a form of e-commerce, has grown remarkably . Online shopping is a convenient part of modern daily lives. However, at the same time, the growth of the B2C market has encouraged intense competition among sellers, prompting them to invest more effort in attracting customers by differentiating themselves from the competition. Countless shopping websites have sprouted up around the world, and thus, various features on shopping websites have been developed for this purpose. Japan is no exception in this market; the two strongest consumer sites in Japan, Rakuten and Amazon, account for nearly 50% of the share in the country’s online shopping market. This paper examines the factors that have contributed to their success. To this end, we surveyed various aspects of online shopping sites in Japan and contrasted the consumer tools on these websites using the theories of consumer behavior and behavioral economics. Finally, we systematically present the essential components of these online shopping sites to help other competitors strengthen their positions in the market. Electronic commerce (e-commerce) is a booming market worldwide and is expected to grow by 19.4% by the end of 2013, according to the latest report by Goldman Sachs. In particular, the business to consumer (B2C) market (i.e., online shopping) has grown remarkably. For instance, as of March 2011, there were 172.3 million online shoppers in the U.S., 87.1% of whom were Internet users. Meanwhile, consumers in the Asia Pacific region make the most online purchases. Figure 1 shows the percentage of online shoppers in each region, based on a 2010 Nielsen survey of more than 27,000 Internet users. Among the Asia Pacific countries boasting the top percentages, the Japanese market is a notable one with two dominating shopping sites.
Cited by; 4
Funding of Research and Development in the Function of Improving the
Competitiveness in the Global Environment (EU Member States Experience)
Dr. Radovan Tomic, Professor, Higher School of Professional Business Studies, Novi Sad, Serbia
Dr. Dragica Tomic, Professor, Higher School of Professional Business Studies, Novi Sad, Serbia
Gordana Tomic, Belgrade Business School, Belgrade, Serbia
Denis Bugar, Higher School of Professional Business Studies, Novi Sad, Serbia
In this paper the authors highlight the importance of Global Competitiveness Index, which measures and compares the competitiveness of national economies. By its analysis of the economies we follow the macroeconomic environment, the state of government and public institutions, and their level of technological readiness. In order to reach certain conclusions, we will use primarily statistical analysis: the regression and correlation, but also the descriptive analysis so we can present data and results as practically as possible. We will evaluate the contribution of innovation in boosting the competitiveness of an economy. The analysis starts with examining a link between increasing share of GDP for research and development activities and growth of the index values of innovation which affects the global competitiveness index. Improvement of products, production processes, increase of efficiency, greater market power and influence and potential for development represent the processes by which companies and economies still strive to survive in intense competitive struggle and increase their competitive advantage. Precisely for these purposes they invest in research and development so that previously mentioned processes could be adequately utilized. Such activities can affect the growth of competitiveness and recognition which can have effect in conquering new markets and growth of revenues from sales, which further leads to greater funding for research and development activities in order to keep pace with other market actors and the environment in which they operate. In the creation of competitive advantage, strategy of the national economy through which a country mobilizes and develops its production capacity to achieve economic development and international competitiveness is very relevant. It is essential that country creates an environment that stimulates companies to gain competitive advantage. Exactly, for this reason, the purpose of this study is to indicate the importance of having a positive relationship between innovation and the creation of global competitiveness on the example of the European Union.
Internet Banking for Midwest Community Banks: Consumer Adoption Determinants
Dr. Nasim Z. Hosein, Northwood University, Midland, MI
This is the final part to a wider study that reports on the critical success factors of Internet Banking (IB) among customers in the South Dakota banking industry, and how to identify potential users. The data was collected through a survey questionnaire from banks in the region who offer IB services. The data indicates that there are several key factors in the success of IB within current users. These include: internal system /organizational, convenience, security and service marketing factors. An important lesson learned from this study is that these factors, although ongoing, need to be constantly revised by banks through the life cycle of IB. These are areas that are important to current users of IB and thus, contribute in the retention of current IB customers. Since the mid-1990s, there has been a fundamental shift in banking delivery channels toward using self-service channels such as online banking. During the past several years, online banking acceptance has been rapid and current worldwide. Approximately 74 percent of the private banking customers in Finland are regular users of internet banking services (The Finnish Banker's Association, 2004). In general, Europe has been and still is the leader in online banking technology and usage. As the internet becomes more important for commerce, internet websites are playing a more central role in most companies' business plans. An especially elegant case has been made for the "Internet-only" business model in the banking industry such as eliminating the need for physical branch offices. This results in the reduction of overhead expenses. Banks can then use the resulting savings to reduce their loan interest rates or increase their deposit interest rates, attracting new customers without sacrificing earnings. The web-based distribution focus allows banks to enter new geographic markets without the costs of acquiring existing banks or starting up new branches, further increasing growth potential.
The links between Material Well-Being, Intergroup Contact, and Post-Conflict Reconciliation:
The Case of Rwanda’s Coffee Farmers
Dr. Jutta Tobias, Cranfield University School of Management, Cranfield, UK
Against the theoretical underpinnings of intergroup contact theory and the liberal peace hypothesis, this paper presents correlations between material well-being, intergroup contact, and post-conflict reconciliation attitudes. A sample of specialty coffee farmers (N=239) in Rwanda’s recently liberalized coffee sector provided the basis for our analysis. An innovative technique was invented to measure participants’ ethnic affiliation and comfort level with questions about interethnic relations in a political context that strongly discourages open discussion of ethnicity and intergroup relations. Results from correlational analyses suggest that frequent, deep, and pleasant contact with members from the other ethnic group in Rwanda is strongly linked to an attitude of reconciliation between ethnic groups. Moreover, poverty reduction and higher life satisfaction are also linked to reduced intergroup prejudice. These observations were discernible independent of participants’ ethnicity, or of the specific ethnic mix of community members in a given survey location, suggesting that policy interventions that target economic development may also trigger positive social change. The original contribution of this work consists in a quantitative examination of an observed positive deviance in behavior in a region where people have been locked in cycles of poverty and conflict for decades. The so-called ‘poverty-conflict trap’ (Collier et al., 2003), i.e. repeated cycles of violence and poverty, prevents many such regions from engaging in sustainable economic and social development. Our research is noteworthy for at least two reasons. First, institutional change embracing entrepreneurship in regions marked by intractable conflict has a potentially larger impact on social wealth creation because of its dynamic quality, i.e. the potential to break up particularly destructive norms and practices, and replace these with more productive modi operandi.
Quality as aFactor of Corporate Competitiveness
Dr. Petr Suchanek, Masaryk University, Brno, Czech Republic
Dr. Alena Klapalova, Masaryk University, Brno, Czech Republic
This paper deals with the relationship between quality, performance and competitiveness and is based on qualitative and quantitative data collected over a three-year period of empirical research into Czech companies. The aim of the paper is to present the analysis of certain aspects of quality management and compare them with financial performance measures showing the competitiveness of the companies examined by the study. There are many studies dealing with mutual relationships between quality, performance and competitive ability of a company, pointing at the connection between quality management and corporate outcomes measured by indicators of performance and competitiveness. In the Czech Republic, however, there are no specialized studies of a similar kind which would examine the relationship between quality, performance and competitiveness. The aim of the research, of which some of the results are presented in this paper, is to contribute to filling in the blank space. Previous research has illustrated that most companies in the Czech Republic consider the quality of their products or services as superior. At the same time these companies are aware of the positive impact of the superior quality of their products on the competitiveness of their company. (for more see Blažek et al., 2009). However, these conclusions do not provide evidence about other aspects of performance and competitiveness of companies which could also reflect quality management. The paper’s goal is to fill in the knowledge gap to some extent. The paper summarises a three-year period (2009-2011) of research activities of the authors in this area. Thanks to the research, it is possible not only to monitor the level of quality, its perception by companies and its relation to performance and competitiveness in individual years, but it is also possible to monitor the development and transformation of the quantities under scrutiny in time (and in the context of the economic crisis, which was underway during the research).
Cited by; 2
Human Resource Management and Organizational Innovation
Wannapa Wichitchanya, Chulalongkorn University, Bangkok, Thailand
Dr. Supol Durongwatana, Chulalongkorn University, Bangkok, Thailand
At this time, many organizations point to building a competitive advantage; for this reason innovation policy is initiated to stimulate the people to create the ideas for the enterprise. The factors that affect the feasibility of innovation depend on several factors, such as corporate finance, networking, marketing strategies, and human resource management. This study aimed to explore the human resource management activities that affect innovation based solely on a review and analysis of research and data from the literature. The findings found that the human resource management activities that affect high innovation in long term are: high potential pool, competency fit, employee empowerment, incentive system, career management, and coaching and mentoring system. In the new Thai economic era, innovation is the key success factor that makes competitive advantage and profits, including changes market positioning, in short term and long term (Hsueh and Tu, 2004; Santos-Rodrigues, Dorrego, and Jardon, 2010). Thus, many organizations have initiated policy, corporate culture, and an environment that promotes and encourages employees’ innovative behavior and creativity (Hewitt-Dundas, 2006; Dobni, 2008; Rodrigues, Dorrego and Jardon, 2010) that affect overall corporate performance, profits, and sales growth (Hsueh and Tu, 2004). Nowadays, human resource management (HRM) has changed its role, from general administration to HR strategic partner (Noe, Hollenback, Gerhart and Wright, 2006). HR has been concerned with the value-added aspect of work rather than with working better, and should develop a human resource management mechanism, innovative structure, and corporate culture to enhance the highest profitability and innovative capabilities (Tidd and Bessant, 2009: 100). Based on Hansen and Birkinshaw’s innovation value chain process (2007), idea generation stage, conversion stage, and diffusion stage, HRM takes the major role in supporting employees to work as a team and in changing their behavior. Especially regarding the idea generation stage, HRM stimulates the worker to think and create new solutions to develop the organizational process and to discuss how to implement good ideas in actuality.
Cited by; 16
Employee Support Programs and Building Affective Commitment
Nigar Cagla Mutlucan, Bogazici University, Istanbul, Turkey
Employee support programs help organizations cultivate affective commitment by appealing to employees’ self-interested motives to receive or by fulfilling employees’ other-interested motives to give. This paper reviews the underlying relationships between employee support programs and affective commitment. Additionally, intrinsic and extrinsic work value orientations of employees are proposed to affect the relationship between employee support programs and employees’ affective commitments to their organizations. Characteristics of employee support programs that are pertinent to different types of Turkish organizations are also proposed. Finally, conclusions and suggestions for future research are presented. In recent decades, employment conditions have changed drastically. That is, employees do not work for a sole company until retirement. As such, the balance of power has shifted in favor of employees; they are more mobile and autonomous. Human resources are now the most valuable assets of a company and employees can be thought of as the engine of an automobile; without the engine, no matter how fancy the car is, it can go nowhere. Therefore, organizations have developed ways to enhance employees’ affective commitment to prevent a loss of talent. Affective commitment refers to a positive emotional attachment between an employee and an employer (Mowday, Steers, & Porter, 1979). Meyer and Allen (1991) defined affective commitment as “the employee’s emotional attachment to, identification with, and involvement in the organization” (p. 67). Affective commitment is also related to fewer intentions to quit the organization (Allen & Meyer, 1996; Vandenberghe & Tremblay, 2008), lower turnover (Meyer, Stanley, Herscovitch, & Topolnytsky, 2002), reduced absenteeism (Eby, Freeman, Rush, & Lance, 1999; Meyer et al., 2002), more customer-oriented behaviors (Chang & Lin, 2008), and improved in-role and extra-role performance (Luchak & Gellatly, 2007; Meyer et al., 2002). One way that organizations strengthen employees’ affective commitment is through employee support programs (Hartwell et al., 1996). Employee support programs are “formalized practices designed to improve employees’ experiences at work by providing emotional, financial, and instrumental assistance beyond the scope of standard HR pay, benefit recognition, and training and development programs” (Grant, Dutton, & Russo, 2008, p. 898).
Cited by; 2
How Mentoring Affects to Companies and Employees?
Dr. Pedro Nunez-Cacho Utrilla, University of Jaen, Spain
Dr. Felix A. Grande, University of Jaen, Spain
Mentoring practices are tools that help foster both staff and company development. Accordingly, this paper focuses on the impacts of such practices in a sample of 603 Spanish companies which, thanks to mentoring, have improved their competitive position and the performance of their human capital. Furthermore, guidelines are given on how to carry out mentoring processes effectively in a business context. The results reveal a causal relationship between the use of mentoring programmes, business and enhanced staff performance. The importance of Human Resources (HR) to company management and to an organisation's success has been highlighted by many researchers (Gurav et al., 2011) and appears to be one of the main challenges of businesses This explains the rising importance being accorded to HR departments in company organisation charts (Wright et al., 2001), because professional development is one of the functions in human resource management that can make the difference between success and failure because it contributes to making a company more adaptable to changing and competitive environments (Becker, Hyland and Acutt, 2006; Palmer and Johnson, 2005). Mentoring processes are featured among other HR practices. Mentoring is a strategic activity to develop professionals in the company and stress their importance to the business (Allen, Eby and Lentz, 2006). This practice have been designed from organisational theories and are included in ‘new career practices’ and have emerged as alternatives to traditional career development techniques (Hezlett and Gibson, 2007). Research in the area of human resources suggests that we can consider mentoring as key strategic activity for the professional development of executives and crucial for firm development (Allen and Poteet, 1999; Wanberg, Welsh and Hezlett, 2003). Despite this, few studies have analysed mentoring's effects on individuals and on mentors and have touched on the subject or provided deeper analysis of mentoring's influence and efficacy (Baugh and Fagenson-Eland, 2007) and there aren´t have discussed the importance of mentoring for the performance of businesses (Duh, Belak and Milfelner, 2010; Van der Merwe, Venter and Ellis, 2009).
Cited by; 3
Reverse Triangular Mergers: Regulator’s Response, Work Done By Other
Independent Auditors and Potential Illegal Acts by Audit Clients
Dr. Michael Ulinski, Pace University, Pleasantville, NY
Dr. Roy J. Girasa, Pace University, Pleasantville, NY
Chinese reverse triangular mergers are sometimes used to circumvent the regulatory oversight in order to gain access to U.S. capital markets. Instances of fraud, illegal acts of audit clients and lack of auditors’ compliance with audit standards for the use of other independent auditors work by the principal auditor are discussed. The researchers describe legitimate uses of reverse triangular mergers and problems that led to the Public Company Oversight Board’s Research Note and Practice Alert concerning these types of mergers. Issues of fraud and potential illegal acts of Chinese domestic companies are framed within a discussion of auditing standards that guide audit conclusions and proper treatment of the discovery of fraud and illegal acts in financial statements. Examples of violations of legitimate use of reverse triangular mergers are given. Conclusions are drawn and recommendations are made for improvement in the reporting process that enables transparency of financial information useful for investor and other decision makers. Much attention has been placed on the activities of Chinese companies seeking listing on U.S. or other capital markets throughout the world. While many legitimate companies have navigated through the process of initial public offerings, many other Chinese based companies have opted to gain access to capital markets through the use of reverse triangular mergers. Although a legal process and efficient way to gain entry into capital markets, abuses have been noted especially with the intent to avoid U.S. regulatory and auditing standard guidelines. In addition fraud and potential illegal acts may have been intentionally perpetrated on the investing community with little or no recourse by U.S. or other regulators of capital markets. Cultural and language barriers complicate the access to financial data regulators need to determine if auditing quality standards have been compromised.
How Does Culture Affect the Effectiveness of Brand Extension:
A Comparative Study of Taiwan and Vietnam
Dr. Yi Hsu, National Formosa University, Taiwan
Ngoc Thanh Tran, National Formosa University, Taiwan
Dr. Li-Wei Hsu, National Kaohsiung University of Hospitality and Tourism, Taiwan
This study attempted to investigate the effectiveness of brand extension from Hofstede’s five cultural dimensions (power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, long/short term orientation). Four hundred and seven (N=407) respondents from Taiwan and Vietnam were selected and invited to participate in this study. Simple regression analysis was utilized to examine the five propose research hypotheses through a questionnaire designed on the Likert five-point scale. The results indicated that four of five hypotheses are supported and all five cultural dimensions of Hofstede have shown positively significant influence on brand extension effectiveness. Finally, this study was wrapped up with a conclusion and the suggestions for the practitioners. Launching a new product can be an attractive strategy for expansion but with risks. This is because around 30% of all new products fail (Montayo-Weiss & Calantone, 1994), while others are even more pessimistic, citing that only two out of ten new launches succeed (Crawford, 1977). Due to factors such as high advertising cost and the increasing competition for shelf space, it has become more difficult to succeed with new products (Aaker 1990, 1996). Bearing in mind the costs and risks associated with extension of new product, firm managers nowadays prefer extending brand that have been already existed than introducing new product. Brand extension option has become an increasingly popular way to enhance the equity associated with well-known and well-respected brands (Kapferer, 2000). Therefore, it is not surprising that Simms (2005) indicated 82% of the strategies of launching new product are extending the existed brands. After Aaker’s research (1990) on brand extension in U.S. market, a lot of scholars have researched this interesting field in many countries with various cultural heritages (Tu, 2010; Omotayo, 2010; Olavarrieta et al, 2009; Dhananjay and Panwar, 2009).
Cited by; 2
The Adequacy of Programs Used by the Auditors on Jordanian Companies Operating in Electronic
Commerce and its Impact on Accounting Disclosure (From the Viewpoint of the External Auditor)
Dr. Majed Alsharayri, Balqaa' Applied University, Jordan
Dr. Jamal Al-sharayri, A'Al Al-Bait University, Jordan
This study aimed at identifying the extent of programs sufficiency that auditors use on the companies operating in e-commerce. A questionnaire was designed and distributed to a random sample from the population that consists of external auditors. (30) Questionnaires were distributed, while (25) were retrieved. (SPSS) was used to analyze the data and extract the values of duplicates, standard deviations, means and test hypotheses of the study. The study concluded that the e-commerce is the challenge facing auditors and that the ready-made software used in auditing is essential and important in the process of auditing the operations of e-commerce. The researchers found a set of recommendations; the most important was that audit offices must provide these software and work to raise the skills of auditors in dealing with this software, they also advised companies to disclose about the operations of e-commerce in their statements which facilitates the process of financial audit of their accounts. The spread of e-commerce and its practical exercise by entities and business organizations in their various forms to impose a set of external and internal challenges, especially when taking into account the business risk arising from its exercise, as well as to enhance methods of confidence in the systems and electronic sites, especially since the conviction of the idea of the security of websites that devoted to the exchange of information related to electronic commerce is still surrounded by uncertainty and fear of inadequate security precautions designed to protect data over the web, as it often may not be convoyed with a commercial internal control systems and security procedures used in these entities in addition to changes and developments in the field of e-commerce, which make auditors face significant challenges related to the development of audit procedures when dealing with these changes, and to dispel these fears, International Federation Of Accountants issued the international statement no. (1013) concerning the impact of e-commerce on the audit of financial statements, which focused on the level of scientific knowledge of the auditors, and working knowledge, and risks of the client's business and internal control and security considerations.
Gender Gap and Gap 5: A Servqual Empirical Study of Trans-Atlantic Airlines Passengers
Dr. Kien-Quoc Van Pham, Humboldt State University, CA
The SERVQUAL model is used to identify and explore gender differences in service quality expectations and perceptions of passengers on Trans-Atlantic flights. In-flight SERVQUAL based surveys were administered and collected. The study finds no gender based statistical significant difference in the overall importance ratings of the SERVQUAL five operationalized service quality dimensions with the exception of the Assurance dimension. Further investigation was conducted to isolate which of the twenty two service quality attributes would evidence any statistically significant disparity. Identified gender gaps in service quality perceptions and expectations should prove beneficial to airlines intent on pursuing a gender segmentation strategy. Recent Asian, and American airlines promotional campaigns targeting women passengers driven by the projected increase in the number of women travelers, especially , business women and the paucity of gender specific research in this particular industry indicates the need to empirically validate this emerging trend for gender market segmentation beyond the traditional business economy class one. Furthermore, the advent and sustained global proliferation and growth of low costs airlines, increasing transaction costs transparency and information diffusion with the internet, i.e. virtual airfares comparisons given an itinerary via travel portals, airlines websites, and subsequent legacy purchasing channels “disintermediation” all have contributed to the acceleration of the “commoditization” of airlines services. In a “commoditized”, highly competitive environment, the pursuit of a differentiation strategy via quality services is an imperative. The application of the segmentation concept is a timeless topic of critical import in marketing literature and practice.
Technopark Models: University Incubators Worldwide
Dr. Hanadi Mubarak AL-Mubaraki, Kuwait University, Kuwait
Dr. Michael Busler, Richard Stockton College, NJ
The purpose of this paper is to investigate and identify the outcomes of technopark models in context of university incubators worldwide. Moreover, the university incubator units offer considerable advantages to new, growth-orientated firms in the provision of shared facilities such as offices, administrative staff and access to university research and grant support. The goal of technopark is promoting economic development, commercializing new technologies, and enhancing universities research mission. Design/methodology/approach: Empirical evidence is presented from twelve in-depth, longitudinal case studies of entrepreneurial firms based within a university incubator located in united state. Findings: The current research highlights the specific role of the university incubators models, and in particular, the analysis of case studies based on outcomes of university incubators such as 1) Technology Transfer as License Income, 2) Entrepreneurial Development, and 3) Industry Research Partnerships. Future research needs to consider the relationship between the funds of technology transfer with number of jobs created. Originality/value: this paper will add value to academia, practitioner, and policy maker for successful implementation. A business incubator offers an ideal environment for start-ups and technopreneurs to transform their ideas, patent and innovation into viable business ventures. Entrepreneurs and small businesses receive support and guidance to be able to start up their business concepts, operate effectively and keep up with the pace of change whilst remaining competitive (NBIA, 2010; Info Dev, 2009). According to National Science Foundation budget report for fiscal year 2011 (NSF, 2011) the amount of budget for research infrastructure $1.8 billion (24%), provides a tremendous opportunity for technology transfer.
Cited by; 4
Product Characteristics and Parallel Systems Strategy
Dr. Kevin Mason, Arkansas Tech University, Arkansas
Large organizations develop and integrate corporate, business, and functional level strategies in order to achieve strategic goals. This paper focuses on the interdependence among the functional-level strategies and systems organizations use to address three basic problems faced by organization: the entrepreneurial problem, the engineering problem and the administrative problem. Firms respond to these problems by developing (1) marketing strategies that match the firm’s products to customer needs, (2) production strategies that match the manufacturing processes to the product requirements, and (3) administrative systems that generate the behaviors needed to produce the product. This article presents a “parallel systems” framework that can be used as a tool to examine the impact of product characteristics in each of these key areas. Finally, implications to the parallel systems framework for business practitioners and researchers are identified and discussed. Large organizations develop and integrate corporate, business, and functional level strategies in order to achieve strategic goals. Corporate level strategy asks “What business do we want to be in?” and planning focuses on the mix of businesses and the allocation of resources to those businesses. Business level strategy asks “How can we compete?” and planning focuses on how a particular business will compete (costs leadership, differentiation, or focus) within its own market(s) and industry (Porter, 1980). Functional level strategy asks “How do we support the business-level strategy?” and planning focuses on the ways each functional unit (e.g., marketing, production, finance) contributes to goals defined at the corporate and business levels. This paper focuses on the interdependence among the functional-level strategies and systems organizations use to address three basic problems faced by organization: the entrepreneurial problem, the engineering problem and the administrative problem (Miles, Snow, Meyer and Coleman, 1978).
The Role of Costing Method Based on the Basis of Activity in Providing
Competitive Advantage for the Hospital Managements
Dr. Baki Yılmaz, University of Selcuk, Konya, Turkey
This study is a studying done for the practicability of the costing that is base on the activity in the hospitals that are a management of production of service. The objective is the role of, one of the strategic and advanced cost methods in the hospital managements, “The Costing Method That Is Based On The Basis Of Activity” as a weapon of competition, and its effect to the performance of management and to provide that this method becomes lodestar in the decisions that hospital managers take. The dynamic competition atmosphere, in our day, has made necessary that in the hospital managements, good-quality services are produced with more justly and low costs. The hospital managements, for keeping their activities on this intense competition atmosphere, need the costing methods, which cater to some changing customer demands instantly and which have the good quality and justly information of the low cost and have the capability of offering a wide service range. This need, at the present time, has brought into open the necessity of new cost accounting method providing a true cost information. The transformations lived in the matter of the cost accounting method has increased the importance of costs in the cost information system and caused to the consequence that they are used effectively. In this context, in terms of the competition threaten the aims and the existence of managements is transformed into opportunities after eliminated the negative effects of it, the importance of the cost accounting activities has increased gradually.
Most Feasible Strategies for Green Marketing Mix under Business Sustainable Development
Dr. Wen-Lan Wang, Ling Tung University, Taiwan
The main goal of this research is to explore the relationship between consumer lifestyles and green marketing mix strategies. The research samples people from the general population in Central Taiwan and collected 439 valid samples. A Structural equation modeling was used to analyze the data and facilitate a discussion on the effect of lifestyle on green marketing mix strategies. In this way, green marketing mix strategies are used in a timely manner toward consumers with different lifestyles to increase the sale of green products. The research discovered that consumers consider different factors when purchasing green products depending on their lifestyles. Therefore, marketing strategies are differentiated to suit different lifestyles; explanations of product quality and functionality are suitable for plan-oriented and price-oriented lifestyle consumers. Promotional activities for products are applied to price-oriented lifestyle customers, whereas consultation and recycling services are provided for work-oriented lifestyle consumers. For plan-oriented lifestyle consumers, emphasizes governmental laws, regulations, and incentives related to green products is recommended. Incentives such as price and attractive packaging are more appealing to price-oriented lifestyle consumers. Because the Earth is seriously polluted, governments all over the world are imposing restrictions to trade, and green products are becoming increasingly popular due to the rising awareness of environmental protection among consumers. Green consumption is also gradually becoming a new trend.
Cited by; 14
Knowledge and Working Performance as Barrier and Driver for SMEs
Dr. Alena Klapalova, College of Commerce and Hotel Management, Brno, Czech Republic
The aim of paper is to present the results of survey realized in year 2009 focused on detection of barriers and drivers of entrepreneurship stemming from external as well as from internal environment. The respondents of the inquiry were owners and managers of small and middle tourism and hospitality enterprises in the Region of South Moravia (one of 14 regions of the Czech Republic). Results show that main two barriers are knowledge of managers and staff and working performance of human resources. Both barriers are perceived also as the most important drivers for future development of companies. There are also some differences when considering size and age of companies, i.e. among microenterprises and small and middle companies and among those starting the business before the year 1990 (during socialism era), during 1990´s and after year 2000. Although not every entrepreneur wants to do business in large scale (and some even not in middle scale) (Bartlett et Bukvič, 2001), there probably would not be many owners who prefer to have their business be unsuccessful. Pasanen citing Simon (1996) stresses that “the most important and the most challenging business goal is long-term survival (Pasanen, 2005). Small and middle enterprises play very important role in tourism and hospitality industry where the customer demand is extremely heterogeneous and the supply can correspond to this character of demand relatively easier compared to other industries.
Cited by; 2
Diversification Strategy and Performance of Taiwan Financial Firms in the Global Financial Crisis (2007–2008)
Hou Ou-Yang, Kun Shan University, Tainan, Taiwan
This study uses agency theory to predict the influence of related and unrelated diversification on a firm’s performance. Further, this study argues that the link between diversification and performance is moderated by the environment in which firms operate. Financial firm data covered the years 2003 through 2009 was acquired from the Taiwan Stock Exchange (TSE) and Taiwan’s over-the-counter market. This study data spans the period of the Global Financial Crisis (2007–2008).The regression results reveal that financial firms pursuing related (or unrelated ) diversification have significantly positive (or negative) effects on market performance in stable environments, but have significantly negative (positive) effects on market performance in dynamic environments. In recent years, the knowledge-based economy tide taking over the entire world is knowledge. Both the diversification strategy and the environment which firms operate are key determinants in acquiring the competitive advantage in Taiwan’s financial industry. In this study, agency theory is used to examine how diversification strategy influences a firm’s performance. To add to the existing literature on this topic (e.g., Lin ,2001; Ou-Yang 2010, 2011), it considers the role of the environment (Simerly and Li, 2000；Lim, Das, and Das, 2009) as a moderator of the relationship between strategy and performance. This study argues that the influence of diversification on a firm’s performance is contingent on whether the environment within which firms operate is stable or dynamic.
The Impact of SOX on the Relationship Between the Managers’ Earnings
Management Behavior and Voluntary Restatements
Prof. Ya-Fang Wang, Providence University, Republic of China
I examine the question that why managers’ voluntary restatements have been more prevalent even if after the SOX by addressing the managers’ earnings management behavior made by a restatement sample of 483 companies during 1997-2005. First, I adopt a variant of Heckman’s (1979) two-stage estimation procedure to deal with endogenous problem for the voluntary restatement announcements. Second, I consider seven characteristics of restatements to examine the impacts of SOX on the relationship between the managers’ earnings management behavior and the content of voluntary restatements. Overall, my findings suggest that managing earnings by real manipulation activities seems to be the driver for the dramatic increase in voluntary restatements during the post-SOX period. In recent years, the incidence of financial report restatements has increased dramatically (GAO 2003; Wu 2002). A research report done by the Glass Lewis & Co. indicates that 1,195 companies (8.5 percent of all public companies) made restatements in 2005, compared with 613 companies in 2004. Moreover, it reveals monotonic increases that companies release the restatement announcements in 2006. The erosion in the quality of earnings and financial reporting as evidenced by the proliferation of financial report restatements has caused concern among academics, practitioners, and regulators alike. Although the Sarbanes-Oxley Act (hereafter called SOX) imposed substantial criminal penalties on CEOs/CFOs for issuing misstated financial statements (Section 305), still I found many companies voluntary to release the restatement announcements. Therefore, I particular concern is the why managers’ voluntary restatements have been more prevalent even if after the SOX.
Factors Affecting Customer Satisfaction and Employee Satisfaction in the
Hotel Industry in Egypt (A comparative study)
Dr. Ahmed Samir Roushdy, Sadat Academy for Management Sciences
The aim of this Research is to identify customer and employee levels of satisfaction in the hotel industry, and also to define most significant factors of both employee and customer satisfaction, as well as to examine that relationship between customer satisfaction and employee satisfaction. Two structured questionnaires were used to collect data, one for customers and the other for employees. A case study was applied on El Gouna Resort in north of Hurghada on the west cost of Red sea in Egypt. El Gouna is home to 14 spectacular hotels built along 10 kilometers of beach front and spread across islands inter linked by lagoons. The town is easily accessed from Europe via the nearby Hurghada International Airport. El Gouna Hotels were chosen as winners in Trip Advisors 2012 Travelers’' choice awards. Moevenpick Resort El Gouna (built on 12 islands surrounded by gardens, total number of rooms is 554, we will call it hotel A) and Sheraton Miramar Resort El Gouna (built on nine islands surrounded by gardens, total number of rooms is 339, we will call it hotel B) were chosen to be winner in the "Top 25 hotels" in Egypt for 2012 Travelers' choice. That was the reason behind selecting these two hotels. The need for close interaction and communication in service organizations generally threatens the satisfaction of the consumers, since the production and consumption process cannot be separated. For the accomplishment of guest satisfaction, the satisfaction of employees in the hotels is imperative.
Cited by; 10
The Role of Personality and Parental Support in Taiwanese College Students’ Career Self-Efficacy
Ching-Hua Mao, Chihlee Institute of Technology, Taiwan
The purpose of the present study was to determine whether personality or parental support is the main predictive indicator of career self-efficacy. A parental support scale, a career self-efficacy scale, and the Holland Personality Scale were employed to study 435 Taiwanese college students. The results show that the Conventional type of personality is the most significant predictive variable of career self-efficacy among Holland’s six themes. In addition, among the four subscales of the parental support scale, Esteem and Autonomy Support played a significant role in predicting college students’ career self-efficacy. As compared to the parental support variable, which only accounted for 3.9% of the variance, the personality traits variable accounted for 36.5% of the variance. In recent years, research on the Social Cognitive Career Theory (SCCT；Lent, Brown, & Hackett, 1994) has become a popular subject in the field of career development. The core concept of the theory is based on career self-efficacy, which directly forms individuals’ career interests. The theoretical model also claims that person inputs (including gender, personality, race, and physical condition) and background contextual affordances are leading factors that construct different learning experiences and influence the development of career self-efficacy. In the past, studies often focused on the discussion of personal variables and overlooked the impact of contextual determinants on personal career process. Although some research includes contextual determinants in the analysis, scholars do not find sufficient evidence to support the SCCT model or have proposed disaccorded paths. Lent et al. (2001) divided contextual determinants into contextual supports and contextual barriers.
Cited by; 2
Cost-Integration Between Balanced Scorecards and 6 Sigma and its Role in
Enhancing the Overall Quality of Industrial Companies
Dr. Abdallah Barakat, Shaqra University, Saudi Arabia
The rapid developments of many of the administrative and technical concepts have led contemporary industrial firms urged to find ways, methods and appropriate strategies aimed at achieving excellence and enhancing the products and services of firms. The current study identifies the possibility of integrating balanced scorecards and 6 Sigma to enhance the overall quality of industrial companies. To achieve the goal of this study, a virtual model was built that shows the relationship between cost-integrated balanced scorecards and 6 Sigma. The study depends on completing the vocabulary of the theoretical framework with respect to the sources, references and foreign literature relevant to the study, including the Internet. This study arrives at a number of theoretical conclusions that are commensurate with the assumed form of the study on which it was based, and it provides a set of recommendations that are consistent with these conclusions. The initial aim is to construct a method to study management through the use of abstracts and referenced literature specifically related to the study. The main objectives of the study are the following: To provide a conceptual framework of the balanced score card and 6 Sigma and to determine their role in enhancing the overall quality of the companies to which they are applied. To monitor the strengths and weaknesses of each of the two methods and to determine how to integrate cost between the two methods to enhance the overall quality of industrial companies. The study pointed out that the B.Sc. which takes into account the four aspects (financial, customer, the internal operational processes, learning and growth) is an administrative tool that helps to translate the vision and mission of the organization into measurable targets, and then adjusts and guides the organization's performance towards achieving these targets in each of the four aspects.
Cited by; 2
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