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Forecasting Excess Stock Return: A Comparative Study between U.S. and Germany
Dr. Noha Emara, Rutgers University, Camden, NJ
The results of Lettau and Ludvigson (2001) show that Cay-LL has a significant predictive power both in the in-sample and the out-of-sample forecast of excess stock return. Our study departs from Lettau and Ludvigson (2001) in adding and comparing other two estimates of cay namely Cay-OLS and Cay-DLS besides Cay-LL for forecasting excess return in both U.S and Germany over the period 1969:2 to 2005:1. For the case of the U.S., the results suggest that Cay-OLS has the strongest in-sample and out-of-sample forecast for nested models. The results also suggest, for the case of Gernamy, that the three alternative methods of estimating cay do not have any statistical significant effect in either the in-sample or the out-of-sample forecast of nested models. Finally analyzing the out-of sample forecast of non-nested models, using the Diebold Mariano test, the results show that for the case of U.S, Cay-OLS, Cay-DLS and Cay-LL have equal predictive accuracy. On the other hand, neither Cay-OLS nor Cay-DLS have equal predictive accuracy when compared to Cay-LL in Germany. Within the financial markets, several types of financial variables such as the ratios of price to dividends, price to earnings, and dividends to earnings are used to forecast fluctuation of excess stock returns in both domestic and foreign markets. However, these indicators are oftentimes unreliable at predicting such fluctuations. Lettau and Ludvigson (2001) shows that the trend deviations of these macroeconomic variables is a strong predictor of the of the excess stock returns over a treasury bill rate, and can account for a substantial fraction of the variation in future excess returns.
The Deming Philosophy of Management: Causes of Its Difficulties and Failures
Dr. Tony Polito, East Carolina University, Greenville, NC
Dr. George Audi, Ohio University, Athens, OH
The population of Deming subject matter experts (SMEs) were surveyed in order to determine their beliefs regarding the causes of implementation difficulties and failures associated with Demingistic principles. The results indicate an informal conclusion that management, especially senior management or corporate leadership, represent the most common root cause of such difficulties and failures. This finding is, in general, in keeping with Deming’s posture that the commitment of leadership is requisite to successful quality management. W. Edwards Deming is regarded by many individuals as the most important and influential management philosopher since Fredrick Taylor. Deming’s perspective on management is almost totally contrary to that of common practices of Western management and that of business school curriculum. Deming argued such practices and curriculum are a path to poor quality, higher customer dissatisfaction, higher costs and lower profits. He is widely credited as the individual most influential in the economic recovery of post‑World War II Japan as well as the rise of quality as a operations technique and a management philosophy during the late 20th Century; many statements to that effect can be found in print, comments within Bean (1985), Dixon (1987), Kusumoto (1987), Lazzareschi (1993) and Milstein (1992) are exemplars. In 1980, a year in which t1he per capita gross national product in the United States, once first in the world, had fallen to seventh place, an NBC broadcast If Japan can, why can’t we? highlighted Deming’s teachings. Thereafter, Deming’s advice was avidly sought in America; he consulted regularly at Ford, and at GM as well.
Forensic Accounting – A Growing Niche in the Field of Accountancy
Dr. Consolacion Fajardo, Professor, National University, California
This piece of research will examine the reasons why forensic accounting is an expanding field. The objective is to comprehend the drive for going into forensic accounting. It will include a summary of some red flags or indicators of possible fraudulent activities that organizations need to watch out and to be careful about. It is hoped that this article will contribute to the discussion on the importance of forensic accounting in making an autopsy of the financial records to document fraud or crime, as well as a preventive measure for companies to minimize fraud in the organization. Modern forensic accounting first emerged in the 1970s and early 1980s, most notably in connection with insider stock-trading fraud cases and the scandals in the savings and loan business. Forensic accountants were called in to reconstruct the books of failed institutions and determine what went wrong. Unlike conventional accounting which operates from the assumption of honesty, forensic accounting treats all figures suspect until proven otherwise. Forensic accountants are similar to investigators because they track suspects based on financial documents. Forensic accounting can be used not only to hunt down the culprits, but also to prevent fraud and other white collar crimes. Forensic accounting is not part of the usual routine accounting. It is considered an additional tool that can be utilized to prevent, white –collar crime and stop irregularities before they grow into crises. “When America’s federal investigators wanted to prosecute Al Capone, who did they call? An accountant. Times have not changed much since the bean counters brought down Chicago’s crime boss for tax evasion.”
An Integrated Approach using Markov and Rolling Forecasting Models for Predicting Long-Term Academic Performance
Dr. Siva Sankaran, California State University, Northridge, CA
Kris Sankaran, Stanford University, Stanford, CA
This research looks at student academic performance as measured by Grade Point averages (GPA) in sequential quarter intervals and proposes a methodology to construct a transition matrix that captures the probabilistic movements of GPA over time. A Markov model is then proposed to calculate the steady state probabilities and predict the proportion of students in each grade group over the long run. To minimize prediction errors due to non-homogeneity in the academic strengths of students who are admitted over time, a rolling forecasting procedure based on individual student performance is integrated into the Markov approach. Two worked out examples are given, one to demonstrate the steps in applying the Markov model and another to demonstrate the integrated forecast procedure. The average root mean square error of the proposed integrated forecast procedure is less compared to the standard mean-based prediction. The integrated forecast procedure also offers the benefit of requiring only minimal student data for prediction, yet a paired t-test comparing the predicted steady state probabilities under the Markov and the integrated approach shows the latter to be just as effective. The integrated approach is an additional strategic decision-making tool for administrators in monitoring and maintaining consistent academic performance. Every educational institution wants its students to learn and succeed. From admission to graduation, students go through rigorous curricula with guidance from instructors, staff and administrators.
The Impact Product Quality has on Perceptions of Price-Value, Satisfaction, and Behavioural Intentions
Dr. Sean M. Hennessey, University of Prince Edward Island, Charlottetown, PEI, Canada
Dr. Dongkoo Yun, University of Prince Edward Island, Charlottetown, PEI, Canada
Dr. Roberta MacDonald, University of Prince Edward Island, Charlottetown, PEI, Canada
A model is developed that considers the impact a tourist product's perceived quality has on three variables: the perception of price paid versus value received, satisfaction with the product, and behavioural intentions. The model was tested using responses to a survey of 3,235 golfers on Prince Edward Island (PEI), a major tourist destination in Canada. Three types of golfers were considered: visitors, permanent residents, and seasonal residents of PEI. A factor analysis was completed to develop five measures of the perceived quality of the golf course that the respondent had just played. Three multiple regression models were then used to test the relationships between the variables of interest. This appears to be the first study that models golfer behaviors and intentions by resident type. The results of the study indicate that a significantly positive relationship exists: 1) between the perceived quality of the course played and the feeling that value was received for the green fee paid; 2) between quality of the course, perceptions of price-value, and satisfaction; and 3) between perceived quality, price-value, satisfaction, and intentions to return to golf and to recommend the course to others. Overall, the results provide strong support for a the proposed model and contributes to a better understanding of tourists’ perceptions and their behavioural intentions for an important product offered by many tourist destinations. Prince Edward Island (PEI) is Canada’s smallest province with a population of just 140,000 on 5,684 square kilometres of land. PEI is separated from its sister provinces of Nova Scotia and New Brunswick by the Northumberland Strait. In 1997, a bridge was opened providing a permanent link to the mainland. PEI has been called "the million acre farm," and agriculture is the biggest industry.
Human Resource Issues in BYOD Policy Development
Dr. Kathryn J. Ready, Winona State University, Winona, MN
Dr. Marzie Astani, Winona State University, Winona, MN
Dr. Mussie Tessema, Winona State University, Winona, MN
As the number of Bring Your Own Devices (BYOD) continues to rise in the workplace, both for individual and collaborative use, increasing attention to the adoption of BYOD policies is warranted. Well-defined policies are essential in providing direction to employees on devices that are supported and can be accessed in organizations for work-related means. Despite the known risks, particularly among IT professionals, organizations have been slow to adopt security-awareness policies and training programs. However, the adoption of a plan requires careful analysis as to the issues that an organization may be confronted with and/or the type of security breach it may face. Well-defined policies are essential in providing direction to employees on what devices are supported and can be accessed in organizations. This research study examines fifty-seven responses from an organizational survey of service and manufacturing firms in the upper Midwest region concerning the use, training and policies in dealing with BYOD in the workplace. Recommendations are provided to support the development of BYOD workplace policies. Bring your own devices (BYOD) is the practice of using personal devices for business or bringing one’s own devices to the workplace for work-related purposes. BYOD include smartphones, tablets and laptops and the use of these technological devices to make life easier is significantly increasing. There are already more than 1.08 billion smartphone users in the world, and 91.4 million of these users are from the United States (Go, 2012).
Accounting and Audit Decision Making With Fuzzy Multiple Payoffs and Dependent Probabilities
Dr. Awni Zebda, Texas A&M University-Corpus Christi, Corpus Christi, Texas
Recently, different models to address the problem of ambiguity in decision making have been provided by expected utility theorists, behavioralists, and fuzzy set theorists and have been used by several accountants in addressing the ambiguity in some accounting and auditing problems. The objective of this paper is to review and evaluate some of these ambiguity models. The paper also provides an extension of these models. The proposed extension does not require the assumptions of single payoff and independent probabilities assumed by much of the literature on decision theory and previous ambiguity models and, thus, it provides for more realistic and flexible representation of decision problems when these assumptions are inappropriate. For the last thirty years, decision theory of expected utility (e.g., von Neumann and Morgenstern , Savage ) has been the most widely recommended model for decision making under uncertainty. The theory has been extensively used by accountants as a basis for the development of models to solve accounting problems. The theory has also been the basis for much of the behavioral literature dealing with accounting decision making. However, decision theory and, consequently, accounting decision models and analysis fails to deal with ambiguity for a number of reasons [Zebda, 1991, 1995]. First, decision theory does not allow for fuzzy states of nature which are common in accounting problems. Second, the theory is not suitable to address the ambiguity attached to probability judgments.
Sustainability Content Analysis of Management Texts
Dr. Constance Bates, Florida International University, FL
Dr. Ronnie Silverblatt, Florida International University, FL
Although the concept of sustainability is familiar to many, it has not yet become a standard part of the business college curriculum. While some business schools have sustainability courses and have integrated sustainability into the curriculum, others have not. Perhaps schools are trying to determine if this new topic is truly mainstream or just peripheral, much like corporate social responsibility was twenty years ago. A study of the sustainability content of introductory management textbooks was conducted to help business schools ascertain how the subject is evolving in management textbooks. This content analysis provides an up-to-date look at how much space is being devoted to sustainability. This may be useful to professors is designing their curricula and choosing their textbooks. There is no doubt that the word and concept of sustainability is familiar to many. We often hear about going green and taking care of the environment. Businesses proudly announce their efforts to go green in order to attract customers and clients who value this effort. Accordingly, sustainability has become a mainstream opportunity for both consumers and businesses. The question then arises: what, if anything, should colleges of business do about this topic? Should they immediately create a sustainability major or integrate sustainability into the business core? Or, should they wait until students or employers start requesting skills in this area before taking any actions? Or maybe, there is some intermediate response to this new phenomenon.
Member Orientation of the U.S. Credit Union Industry: Post-2008 Evidence
Dr. Su-Jane Chen, Metropolitan State University of Denver, Denver, CO
This research aims to determine if the credit union industry has been able to deliver significant value to its members in the post-Great Recession era by comparing all credit unions and banks’ national average interest rates over the time period of 2009-2012. Empirical results show that credit unions have been offering significantly higher savings rates and charging significantly lower loan rates than banks since 2008 despite several ensuing market and regulatory developments adversely affecting the credit union industry during the period. The only exception resides in the mortgage lending area, where neither industry dominates in its rate offerings. Thus, the general tax-exempt status and not-for-profit co-op philosophy of the credit union industry appear to continue to benefit its members. Given previously documented spillover effects of credit union presence on local markets, retail banking customers most likely have also gained from the credit union industry’s member-oriented practice. A closer look at test statistics further reveals that credit union members on average save the most money from car loans, credit card debt, and home equity loans. However, according to the Credit Union National Association, an industry trade organization, membership penetration in the industry as of mid-year 2012 for these most-advantageous services varied from 4.4% for new automobile loans to no more than 15% for credit cards. Thus, the credit union industry administrators and leagues should develop effective strategies to educate its members, promote its products, and raise membership penetration rates. This proposition should resonate particularly well with smaller credit unions, which have in general experienced much lower membership penetration rates than their larger counterparts.
Labor Mobility of Scientists and Engineers and the Pace of Innovation
Dr. Simona Lup Tick, Graduate School of Business and Public Policy, Naval Postgraduate School, Monterey, CA
This paper presents a first empirical estimate of the relation between the labor mobility of research personnel, as a measure of knowledge spillovers, and the pace of innovation, measured by the mean backward lag in patent citations. Using an unbalanced panel of firms across eight U.S. industries with the highest rate of innovation as measured by patents granted from 1984 to 1999, the cross-sectional results show evidence of a positive relation between the rate at which scientists and engineers change jobs and the pace of innovation within each industry. When the relation is estimated with industry fixed effects, the estimate on the labor mobility is not longer significant. Therefore, this paper presents an initial cross-sectional result that establishes a stylized fact between labor mobility of research personnel and the pace of innovation that requires further investigation. Decision makers have always been concerned with issues related to innovation, potential spillovers and their impact on the incentives and capacity to innovate. At least since Scotchmer and Green (1990), economists have accepted the idea that current research can build on the pool of existing technological knowledge, and the pace of innovation depends critically on the amount of knowledge transferred among firms. There are many channels through which knowledge spreads. One channel is the labor movement of scientists and research personnel from one firm to another. This idea was articulated in Arrow's 1962 article on the public good aspect of information, writing that "no amount of labor protection can make a thoroughly appropriable commodity of something so intangible as information.
Inward and Outward U.S. Foreign Direct Investment Performance During Recent Financial Crises
Dr. Lucyna Kornecki, Embry-Riddle Aeronautical University, Daytona Beach, FL
Foreign direct investment (FDI) plays an extraordinary and growing role in the global markets and represents an integral part of the U.S. economy. This research has descriptive character and focuses on the latest trends in inward and outward U.S. foreign direct investment illustrating the impact of the recent financial crises on FDI performance. The study analyzes the US FDI stock contribution to the global FDI and performance of the inward and outward US FDI flow and stock, during last decade. The essential part of this research relates to inward and outward US FDI employment and the structure of inward and outward US FDI financial performance, which includes: equity, reinvested earnings and intercompany debt. The International Monetary Fund defines foreign direct investment (FDI) as an investment that allows an investor to have a significant voice in the management of an enterprise operating outside the investor’s own country. The phrase “significant voice” usually means ownership of 10 per cent or more of the ordinary shares or voting power (for an incorporated enterprise) or the equivalent (for an unincorporated enterprise). This may involve either creating an entirely new enterprise—a so-called greenfield investment—or, more typically, changing the ownership of existing enterprises, via mergers and acquisitions. Other types of financial transactions between related enterprises, such as reinvesting the earnings of the FDI enterprise, are also defined as FDI (http://www.conferenceboard. ca/hcp/details/economy/outward-fdi-performance.aspx). The United States continues to be the leading destination for foreign direct investment (FDI) and the leading investor in other economies.
Stock Price Volatility and Firm Capital Structure Decisions during the Financial Crisis
Dr. Deniz Ozenbas, Montclair State University, Montclair, NJ
Dr. Luis San Vicente Portes, Montclair State University, Montclair, NJ
Financial economics research establishes that there is a link between the stock price volatility of a firm and its capital structure decisions. We hypothesize that this relationship would become especially critical during periods of stress such as periods with heightened stock price volatility and diminished opportunities of debt financing (i.e. during a credit crunch). Towards that end, in this study we build on our previous theoretical and empirical work about the relationship between stock price volatility and capital structure at the firm level by specifically investigating the capital structure decisions and borrowing costs of publicly traded firms during the most recent financial crisis, i.e. 2007-2009. To account for possible systematic differences between smaller and larger firms (such as credit constraints, or credit market frictions) we analyze different size firm-groups based on their market capitalization. Through quartile regressions, we analyze the relation between firm risk and the debt ratios and the cost of external financing across the distribution of firms. We frame our analysis based on the Financial Accelerator Model of Bernanke et. al (1999). Since the effect of heightened risk on leverage is offset during investment booms, we propose that in a crisis period that directly follows a boom firms will be even more adversely affected due to their heightened levels of leverage, and the above described relationship will be more pronounced. Finally, we distinguish between financial and non-financial firms in order to identify the strength of such propagation mechanisms and hence would be able to provide policy recommendations for financial services regulation. This distinction proves crucial since we find fundamental differences between financial and non-financial firms in terms of their capital structure, and ability to borrow, where the former are more leveraged and exhibit lower cost of capital.
Predicting Firm Performance As A Function of CEO and Economic Factors
Dr. Gordon Arbogast, Jacksonville University, FL
Dr. Jim Mirabella, Jacksonville University, FL
This paper analyzes the relationship between Chief Executive Officers’ (CEO) age, graduate education, and tenure to the performance of a company in relation to its percentage change in revenue per year. Information was gathered from the CEO's representing companies from the 2011 Fortune 500 list. The time span of data gathered was from 1995 to 2010, a fifteen-year period. Data was then eliminated on CEOs and companies that did not have complete information for the fifteen year period, or were outliers from the group. The final data collected includes information covering fifty-six CEOs from twenty-four different companies. The results indicated a strong relationship between a company’s change in revenue and CEO age. Tenure and graduate education were eliminated. As a result, the null hypothesis (there is no relationship between CEO age and a company’s percent change in revenue) was rejected in favor of accepting the alternative hypothesis i.e. there may well be a relationship between CEO age and a company’s percent change in revenue. Scholars in strategic management have increasingly studied the role of top management teams in strategy formation and organizational performance (Hambrick & Mason, 1984). Often the emphasis has been on demographic characteristics such as the ages, organizational tenures, functional backgrounds, and education of top managers. Empirical work on the link between the demographics of the leadership team and firm performance is not readily abundant, even though there is evidence that they are related (Norburn & Birley, 1988). For example, Hambrick and D'Aveni (1992) found that the average top management team tenure and functional experience in marketing, opera-tions, and R&D were less likely to file for bankruptcy.
Employee Engagement: Lessons learned from the U.S. 2013 Glassdoor Best Places to
Work Employee Choice Award Leaders
Dr. Arthur H. Johnson, Palm Beach Atlantic University, FL
While leaders and managers wish to attain the best performance from their employees, maintaining and sustaining high levels of employee performance has proven elusive in spite of implementing intentional motivational practices such as rewards, incentives, consequences, performance management systems, and various drivers of performance. Because of the lack of effectiveness of traditional motivational strategies, or a lack of understanding by leaders and managers of how to apply this knowledge of motivation theory, a shift away from traditional motivational strategies has occurred (Herzberg, 2003) and moved toward employee engagement strategies (Marciano, 2010). Clearly there is a disconnect between research-based knowledge of best practices in employee engagement and what is actually practiced at most business organizations in the United States. The purpose of this study was to perform a content analysis of the Glassdoor Top 20 Best Places to Work in 2013 Employee Choice Award Leaders based on the employee engagement RESPECT model (Marciano, 2010) to determine the practices, policies, and actions those organizations have implemented to engage employees successfully, and determine how the RESPECT model of employee engagement fits employee perceptions of what makes an engaging organizational environment. A content analysis using the RESPECT model (Marciano, 2010) components (recognition, empowerment, supportive feedback, partnering, expectations, consideration, and trust) was conducted by examining all employee review statements of from Glassdoor’s Top 20 Best Places to Work in 2013 (N = 956).
The Three Types of Workers: A Comparison Study Among United States, Chilean, and Japanese Employees
Dr. Leopoldo Arias-Bolzmann, Professor of Marketing,
CENTRUM, Graduate Business School, Pontifícia Universidad Catolica del Peru
Dr. Emiko Magoshi, J. F. Oberlin University, Tokyo
As noted in previous work (Kim & Sikula, 2005; Kim & Sikula, 2006; Kim, Sikula & Smith, 2006; Kim, Cho & Sikula, 2007; Kim, Arias-Bolzmann, 2008), there are three types of people in the workplace: “Necessities,” “Commoners,” and “Parasites.” A person is a Necessity if they are irreplaceable and crucial to the functioning of an organization. A Commoner is a person of normal ability and talent who has no significant impact on organizational success. Parasites are detrimental freeloaders who damage the functioning of an organization. Unlike previous studies which compared data sets from two countries, there were three data sets from three different countries compared for this study: 32 students in an MBA Organizational Behavior class in the U.S.; 47 students in an MBA Marketing class in Chile; and 46 undergraduate Management students in Japan. These students were asked for their views on the leading traits and behaviors of Necessities, Commoners, and Parasites. The method of collecting the three sets of data was identical from previous studies, but the process of analyzing the data was different. Contrary to the previous studies, the characteristics of all three categories are dissimilar, and the characteristics of Commoner from the Japanese data set were very positive. Potential explanations for these findings may be due to the low inter-rater reliability and the differences in the respondents’ cultural backgrounds. Human beings, by nature, are relational creatures. At any given time all people, regardless of their individual differences (e.g., age, gender, religion, ethnic background), assume multiple roles in society, such as that of spouse, parent, employee, friend, club member, and citizen of a city, town, or country.
Productivity. The Engine of Progress in Business Organizations
Prof. Piero Mella, Department of Economics and Business, University of Pavia, Italy
This study aims to show that in a capitalistic economic world the trends in productivity and quality represent the fundamental economic variable. The search for ever greater levels of productivity is due in general to man’s natural tendency to maximize labor efficiency, which by definition represents a necessary though “unpleasant” and strenuous activity to be minimized. This phenomenon is general in nature, as observation reveals, and can be translated in two general observational postulates: (1) Postulate of industriousness: man develops economic behavior aimed at the production, exchange and final consumption of wealth; in particular, he is willing to supply his own labor to produce and consume those goods necessary to satisfy his economic needs, which is equivalent to saying that man is industrious. (2) Postulate of efficiency: industrious man maximizes the efficiency of his labor, thereby maximizing the ratio between the benefits of «working» and the sacrifice involved, searching for the maximum quality given the sacrifice needed to produce; that is, he maximizes the value of the obtained production. These postulates lie behind the hypothesis that productivity and quality are destined to continually increase. I propose the following “Hypothesis of increasing productivity”: the search for the highest levels of Return On Equity necessary to produce value for the shareholders and meet the expectations of the firms’ stakeholders gives rise to a improvement process whose macro effect is increasing levels of productivity and quality.
Lifelong Professional Education for Lawyers: A Collaborative Model
Dr. Barbara J. Durkin, SUNY Oneonta, Oneonta, NY
Dr. Deborah Schwartz, Iona College, New Rochelle, NY
Dr. Theodore M. Schwartz, Iona College, New Rochelle, NY
In response to client requirements and market conditions, law firms are abandoning their traditional apprenticeship practice of developing new lawyers, which resulted in a pyramid-shaped organizational structure. Fewer new law school graduates are hired and trained by law firms; instead, law firms are using experienced, lateral hires or subcontracted legal expertise resulting in a diamond-shaped organizational structure. In the long term, this jeopardizes the pipeline for legal talent because fewer new law school graduates are being hired and trained by individual law firms. This paper suggests a new collaborative model among law schools, law firms, private interest groups, Continuing Legal Education (CLE) providers, and regulatory agencies. Its function would be to provide for long-term, sustainable development of legal talent through standardized training of lawyers and by a system of tracking legal expertise. The legal services industry, of which law firms are a part, generates billions of dollars in revenue and accounts for 1.12 million jobs (Bureau of Labor Statistics, 2013). Like their corporate counterparts, large law firms have multiple offices and clients domestically and internationally. Many law firms have evolved, merged, and grown into mega-firms (often called “BigLaw”) employing thousands of lawyers and non-lawyers. In contrast, more than three-fourths of all lawyers employed in private practice work in law firms with less than 20 partners; almost one-half are in solo practice (American Bar Association [ABA] in 2009 Trotter, 2009). In a survey of law firms’ managing partners, one of the major issues identified was the challenge of recruiting and retaining qualified lawyers (Clay & Seeger, 2012).
Successors and the Family Business: Novel Propositions and a New Guiding Model for Effective Succession
Markus Baur, University of Latvia, Riga
This paper summarizes the results of a doctoral study which aimed to identify success factors for succession in the family business by exploring the perspective of outperforming successors. Based on the framework of systems theory and a qualitative research approach, 13 successful cases of medium-sized family firms in the close-to-boarder-area of Austria, Germany, and Switzerland have been studied. For this purpose, problem-centered interviews with the successors have been conducted. The results of the research are relevant to both scientific and business practice inasmuch as diverse propositions emerged or confirm existing theories. On the basis of 17 propositions, the paper offers a new guiding model for effective succession and outlines the resulting novel notions to successful succession. Research concerning succession in family-held businesses is not new. Many attempts have been made to further advance the understanding of this very important phase for family businesses. However, only few authors have let the successor to be in the spotlight. Research that focuses particularly on successors has been concerned primarily with the development of successors (Sardeshmukh, 2008), conflict reasons within after-succession environment (Harvey & Evans, 1995), motives and traits of successors (Halter et al., 2007), attributes of successors (Chrisman, Chua, & Sharma, 1998; Sharma & Rao, 2000), career orientation (Zellweger et. al., 2010), and leadership qualities of successors (Cater, 2006).
On the Housing Market and U.S. Economic Recovery
Dr. Sahar Bahmani, The University of Wisconsin at Parkside, Kenosha, WI
The head of the Federal Reserve, Chairman Ben Bernanke, in March 2012, gave a lecture series about the financial crisis of 2007, where he discussed the root causes of the most recent financial crisis as well as the policy responses to these significant issues. With his area of expertise being the Great Depression, it is important to thoroughly analyze what causes financial crisis and how to better prevent them. In this paper, we look at the specific policy responses to these root causes of the financial crisis of 2007 in order to evaluate how the current actions of the Federal Reserve are in fact helping the U.S. in its recovery process. This recovery process is directly linked to the conditions and outlook of the housing market, therefore we discuss the state of the sluggish housing market in the U.S. as well as how and why it is slowing down the recovery process in the U.S. Currently, many are optimistic because the housing market has begun to see positive signs, which will have a positive impact on the economy. By looking at the current data on the housing market, through prices, sales, the difficulty of obtaining a loan through competitive requirements as a result of the banking crisis, and the average credit scores needed, we will be able to compare and contrast the requirements to obtain a home mortgage loan after the financial crisis of 2007 compared to the requirements before the collapsing of the housing market and its impact on recovery in the U.S.
21st Century Brazil
Dr. Kip Pirkle, University of Georgia, Athens, GA
Brazil in 2013 is the world's seventh largest economy and it is estimated that by 2017 it will be the fourth largest. Brazil is rising as a global player with its new-found political and economic stability. Brazil’s government policies have played a significant role in its growth. Government is taking considerable growth-oriented measures such as infrastructure projects to include hydro-electric plants and stadiums for the 2014 World Cup soccer and the 2016 Olympics. With its economic growth, regional power, and increasing influence, Brazil has the potential to become a base of power for the developing world in the coming decades. Much of that story will unfold in the next few years, and Brazil will have the opportunity to take a prominent seat at the global table. In 1500, the Portuguese were the first European settlers to arrive in Brazil led by Pedro Cabral claiming Brazil for Portugal. (1) Other Portuguese pioneers followed seeking valuable goods for trade and unclaimed land in order to flee their lives of poverty. (2) At this time, the only item of value the explorers discovered was the pau do Brazil (Brazil wood tree) from which they made red dye. The Portuguese in Brazil were much less focused at first on conquering, controlling, and developing the country. Most were penniless sailors drawn to a world of profitable trade and abundant agriculture rather than territorial expansion. Their new discovery was concentrated on the exterior of Brazil as the country's interior remained unexplored. Eventually sugar was brought to Brazil by the Portuguese. (3) Harvesting sugar was very labor intensive and slaves were imported from Africa to harvest the crops. One third of all slaves transported to the Americas were brought to Brazil to work in the sugar fields in the 17th century.
Comparative Business, Economic and Cultural Analysis of the Impact of Olympics on Host Nations
Dr. Michael Ba Banutu-Gomez, Professor, Management and Entrepreneurship,
William G. Rohrer College of Business, Rowan University, NJ
Hosting an Olympic event presents many opportunities and daunting challenges for host cities. It is also a very costly undertaking that carries a high degree of financial risk. This paper analyzes the Olympic legacy of five host cities from both a business, economic and cultural perspective. In today’s world of fleeting attention spans, very rarely does a situation arise in which much of the world’s focus is directed on one place. The Olympics are one of those events that captivate the world and, as a result, provide a virtually unparalleled moment of possibility for the host city to present themselves to the global community. The business of the Olympics has a far greater impact on the world than the athletic events ever will. Lobbyists from dozens of cities formulate complex, detailed plans in an effort to have the International Olympic Committee (I.O.C.) select their city to host the Games. These plans are put into motion as long as a decade before the I.O.C. makes their choice. Masses of people typically flood the selected cities’ streets in celebration when the announcement is made. Since it can be reasonably deduced that no country is full of riotous sports fans, it is only logical to question what it is about hosting the Olympics that sends people into such pandemonium. The answer is the hope of a better future for which playing Olympic host can serve as a springboard. Olympic cities can benefit in a vast array of areas, from the economy to urban redevelopment. Hosting the Olympics automatically creates thousands of jobs and revenues from the Games themselves.
CSR, Quality of Work Life, and Employee Job-related Outcomes: A survey of Employees in Thai workplaces
Dr. Kalayanee Senasu, National Institute of Development Administration, Bangkok, Thailand
Dr. Anusorn Singhapakdi, Old Dominion University, Norfolk, VA
This research investigates the relationships between corporate social responsibility (CSR), quality of work life (QWL), and employee job-related outcomes (i.e. job satisfaction and organizational commitment). The data were collected via self-administered questionnaires completed by employees of six companies selected from different sectors in Thai workplaces, with a 73% response rate. The main research findings include: (a) the positive relationships between CSR, QWL, and job-related outcomes; (b) CSR has a significant impact on organizational commitment but not on job satisfaction; and (c) the lower-order QWL appears to play the most important role in both job satisfaction and organizational commitment. Some managerial implications and recommendations are also included based on our research findings. Corporate social responsibility (CSR) has become vital for competitive advantage in today's business world. CSR is not only good for society but can also be good for business. For example, CSR is positively associated with firm reputation and financial performance (Lantos, 2001; Peloza, 2009). Socially responsible companies attract more investment capital and tend to build greater customer loyalty than less responsible firms (Stengel, 2009). According to Stengel, the most progressive companies realize that CSR is essentially about "triple bottom line — profit, planet and people". Socially responsible organizations are not only paying attention to the well-being of society, but also to the well-being of their employees. Singhapakdi, Sirgy, Lee, & Vitell (2010) suggest that companies are paying more attention to the well-being of their employees. It is likely that socially responsible organizations treat their employees better than their counterparts..
A Workflow Performer-Activity Affiliation Networking Knowledge Discovery System
Dr. Kwanghoon Pio Kim (1), Kyonggi University, South Korea
In this paper (2), we implement an organizational knowledge discovery system, which is able to explore “workflow performer-activity affiliation networking knowledge,” in particular, from a workflow-supported organization. That is, we try to theoretically define a knowledge exploration framework for amalgamating workflow affiliating knowledge with social networking knowledge, and practically implement a knowledge discovery system based upon the framework. The implemented system not only copes with the algorithms discovering workflow performer-activity affiliation networking knowledge from an XPDL-based workflow package\footnote (3), which represents involvement and participation relationships, after all, between a group of performers and a group of activities, but also deals with visualizing the discovered knowledge. Conclusively, we describe the implications of workflow performer-activity affiliation networking knowledge in workflow-supported organizations. In general, a workflow management system consists of two components¾modeling component and enacting component. The modeling component allows a modeler to define, analyze and maintain workflow models by using all of the workflow entities that are necessary to describe work procedures, and the enacting component supports users to play essential roles of invoking, executing and monitoring instances of the workflow model defined by the modeling component. Especially, from the organizational intelligence point of view, the modeling component deals with the planned (or workflow build-time aspect) knowledge of organizational resources allocations for workflow-supported operations, while on the other the enacting component concerns about the executed (or workflow run-time aspect) knowledge of organizational resources allotments for the workflow-supported operations.
The Dawn of Radical Change: A Case for Leadership
Dr. Janice M. Spangenburg, Capella University
With the changes and the forces that drive change and challenges for everyone and every organization---The time for leadership is now. The changing dynamics of organizations requires leaders that are trained, ready and up for the challenge and committed to starting and finishing a project or endeavor. A case for leadership crystallizes and indemnifies the need and also the gaps that exist in every industry in the world. We need to be serious now because the future will not wait for us to think about it anymore. We need action and perseverance. There is no end to the studies of leadership and while we discover new theories and new ways of leading we are still ever interested in this topic and want to learn more about it in every way possible. For eons we have studied leadership and strive to be able to bring it to a place where it can be effective and efficient. Leadership is tested every day in some manner and on various levels. In these tests, we find the fit of the fittest and the strongest of the pack. This individual seems to have the textbook description and characteristics. This individual is larger than life to us and we are looking at the leader almost in a surreal fashion because we don’t truly believe what we see. However, we deem that individual as the one who can make it happen for us and the one who can lead us fearlessly into the future without hesitation. This person is the inspiration that we have looked for and the one who makes the journey worth every painstaking step. This individual is transformative and infuses us with the strength and the verve to go forward and jump higher and leap into troubled and often rocky waters. While this person seems like a modern day superhero, it is someone that comes into our lives at various points and we do get to enjoy this breath of fresh air 2 or 3 times and perhaps a few more if we are lucky.
Project Management in Universities – The Functional Aspect
Dr. Agata Klaus-Rosinska, Wroclaw University of Technology, Poland
Universities implement a growing number of projects. We can indicate here: research projects (as a result of the fulfilment of the core processes of university), investment projects (modernization and expansion of university complexes in Europe is possible, among others, thanks to the funds coming from the European Union), as well as administrative projects (reorganization of the functioning of public universities is currently required by the ministerial regulations). A large number of projects and their diversity requires universities to implement the appropriate project management system, which enables efficient project management, and thus results in the achievement of desired goals within a specified budget and time frame, in accordance with accepted quality standards; it also requires careful planning and control. In the construction of an appropriate project management system in universities, account should be taken of three fundamental aspects of project management: the functional, the institutional (otherwise known as the organizational), and the personal aspect. The functional aspect is related to the fundamental processes of project management, which include initiation, planning, implementation, closure, and control of projects. The institutional aspects of project management raise concerns regarding the project location within a specified organizational structure. Personal aspects are related to problems regarding the selection and the direction of project personnel [Trocki, Grucza & Ogonek, 2004]. This paper is focused on the functional aspect of project management and has a structure as follows: 1.
Challenges for IFRS Acceptance by the Accounting Profession in the U.S.
Dr. Joseph H. Jurkowski, D’Youville College, Buffalo, New York
Dr. Arup K. Sen, D’Youville College, Buffalo, New York
Dr. Sylwia E. Starnawska, D’Youville College, Buffalo, New York
In order to ascertain the acceptability in adopting International Financial Reporting Standards (IFRS) throughout the entire world-wide business community a survey has been developed and was completed by mid-size CPA firms who have multi-national clientele. Since 2002 the International Accounting Standards Board (IASB), in concert with the Financial Accounting Standards Board (FASB) in the US, have been undergoing a convergence process and attempting to reach agreement on what standards are utilized. There is a very diverse mixture of Accounting systems in use in the world today and the goal is to move from a Rules- based system to a Principles based world Accounting System, thus improving the comparability of basic Financial Statements among companies, regardless of national origin. The Securities and Exchange commission in the United States has committed to working on this project but has not yet mandated the usage of IFRS for publicly traded companies since there are a number of important issues remaining to be resolved. The survey will indicate how CPAs and their clients view this change and if adoption of IFRS will increase reported earnings or to what extent it is beneficial to other reporting issues. Since the IASC was established in 1973 the financial world has been discussing and working toward a world-wide standard accounting system with standardized financial statement presentation. Based in London, the IASB (successor to IASC) is an independent, privately funded and the main global body for setting internationally recognized, acceptable and harmonized accounting standards that will promote transparent, consistent, reliable and comparable accounting information around the world (Smith, 2008).
Toward Using a Roadmap for Strategy Selection for Market Segments: Some New Insights
Dr. Chaim M. Ehrman, Jerusalem College of Technology, Israel
Many Marketing Decision Makers face a unique problem in the area of Marketing Segmentation. Given that there are different market segments to target for a given product or service, how should one define the best segment for one’s product or service? Clearly, the marketer will utilize the 4 P’s of marketing to maximize want satisfaction of the consumer in that given segment, known as the target market. In this paper, a systematic step-by-step approach is presented to show the decision maker how one can find the ideal target market. A case study is presented to illustrate implementation of the “Roadmap” approach is selecting the ideal market segment. There are 4 significant parts to the “Roadmap” approach. There is a wide literature on consumer preference for product attributes. Clearly, the best strategy would be to optimize Brand Performance on the key attributes that consumers consider important. The term “Compositional Models” identifies models that measure attribute importance by the consumer. The typical method for collecting data for compositional models is to write a survey and ask the consumer to rate the importance of each attribute for a given product. The data collected is rating data or interval data, which lend them to significant analysis. Wilkie and Pessimier (1972) present an extensive review of Compositional models. An important reference is the pioneering work by Lavidge and Steiner (1961) on New Product adoption, and Green and Wind (1975) on Conjoint Analysis. In this paper, a compositional model to measure brand satisfaction will be used. It is called the Linear Compensatory Model (Fishbein, 1975) or LCM . Each brand can be evaluated on a performance score or belief score (b) for that brand on that attribute (i.e., how well is that brand performing on that attribute), as well as an importance score (I) on that attribute (how important is that attribute for a given consumer). We sum the product of Belief Scores multiplied by Importance Scores for each brand, and divide by the total of Importance Scores.
Business Travel and Visa Application: Where Are the Gaps?
Dr. Julie Jie Wen, University of Western Sydney, Australia
Statistics have shown a decline of business visa application from China to Australia. Although increasing number of outbound visitors from China has attracted significant research interest globally, very little research has concentrated on business travelers from China visiting Australia for a combination of training and sightseeing purposes. They are group travelers with unique characteristics but have not been analyzed to reasonable depth. This paper presents analysis between what is really happening in China related business travelers and what statistics published in Australia about visa application reveals. A gap between the increasing number of business travelers who visit Australia on private passport and tourist visa, and the declining number of business travelers recorded officially, has been identified. The Chinese outbound travel market has been recognized as the greatest potential force in global tourism. It was estimated that Chinese outbound tourists reached 22 million, with an additional 50 million travelers to Hong Kong and Macau (Li et al, 2010). Business travel in the study refers to official travel in the form of delegation and business group travel. Visitors of this type of travel mostly come from public service sector and state-owned enterprises, with increasing numbers from the private sector in recent years. They come to Australia in the group for the purpose of study tour, combining sightseeing with training sessions in their itinerary. These visitors are normally organized by a travel agency in China, who normally provides an invitation letter from a receiving company in Australia to facilitate a business visa for entry to Australia, although an increasing number of business travelers arrive on a private tourist visa. Australian Immigration indicated a slight decrease of business visa applications from China since 1999. This seems to be contradictory to the growing visitation of Chinese to Australia.
Developing Supply Chain Strategies Model for Taiwanese Manufacturing Companies
Chao-Shun Wang, National Cheng Kung University, Taiwan
and Lecturer, Dahan Institute of Technology, Taiwan
Chia-Yon Chen, Professor, National Cheng Kung University, Taiwan
With the development of globalization and information technology, product life cycles have shortened significantly, and information transfer and the demands on market reactions have become increasingly faster, thereby resulting in enormous changes of enterprise supply chain systems. This study investigates Taiwanese manufacturing businesses with experience of the complete supply chain, which includes upstream suppliers and downstream customers, and established a supply chain strategy model using the structural equation modeling (SEM). It further validated the causality relationships and interactive impact weights of the manufacturers’ state of the environment, impact, and response. According to the empirical results, market resource environmental competition has a positive impact on supply chain information sharing, and supply chain information sharing has a positive impact on supply chain coordination and supply chain restructuring. Lastly, supply chain coordination has a positive impact on supply chain restructuring. The empirical findings can help manufacturers to review the impact of market source environment uncertainties on individual manufacturers, and further develop supply chain strategic directions. The external market resource environment will affect the changes in the internal environment of a company. If the external environment has become more dynamic and complex, the organization will face more uncertainties and must be able to rapidly respond to changes in the demand of the consumer market. Many enterprises have realized the limitations of their own resources and the competition with the external environment in resource allocation, realizing that independent operation is no longer feasible, while only through cooperation with other enterprises could then acquire important resources, thus achieving their strategic objectives. In addition, with the rapid advancement of information technology, consumers can easily capture market product information and cooperate with alternative suppliers.
An Equity Security Selection Using Annual Information
Dr. Raja R. Vatti, St. Johns University, Jamaica, NY
Investment analysts use mainly macro, fundamental, and technical analyses for selecting companies with high potential returns. The expectations to macro environments are an important part of the research because markets react promptly to the changing global economic trends. The stock prices of individual firms tend to follow the markets even if their future is on solid footing. Empirical research confirms it. Technical analysis concentrates on observing repeated past price and trade volume behavior of stocks, industries and markets to identify companies with upward price movements. Despite the controversy of its value, technical research is still widely used. The fundamental analysis would like to look at the efficiencies and deficiencies of individual firms and industries to pinpoint firms with bright prospects. The current investigation utilizes a fundamental approach to analyze all the information reported in the most recent annual reports to select companies for including in the following year’s portfolio. The proposal here is to select an industry first, and then to select companies from the industry. The companies considered for investment in the industry would be classified into several similar groups by using important financial measures of performance. A few undervalued companies from some quality groups would be selected for the portfolio. The usefulness of the proposed method is tested by comparing actual investment returns. In the process of selecting a few companies with high potential returns, investment analysts should patiently seek and analyze all the relevant past, current and anticipated information on many individual companies. The inherent assumption in this pursuit is that all the information is easily accessible for everyone.
The Effectiveness of the Contrarian and Momentum Strategies in the Global Financial Crisis Period
in Asia Pacific Stock Markets
Dr. Yu-Nan Tai, Alliant International University
This study explored the effectiveness of the contrarian and momentum strategies in the Chinese stock markets of Taiwan, Hong Kong, & Singapore both during the 2008 financial crisis and during the pre-crisis period. The sample period was from May 2003 to October 2012, providing both long-term and short-term analysis and including a non-crisis financial period and a crisis period. This study used an empirical research design and was non-experimental in nature. Results showed that in the short-term, the momentum strategy is significant in Taiwan, Hong Kong, and Singapore. However, in the long-term, the momentum strategy is not significant in the Asian financial crisis period. The contrarian strategy is significant in the long-term but is not significant in the short-term crisis period. De Bondt and Thaler (1985) were the first researches to combine behavior and cognitive psychology with economics and finance to help explain stock return anomalies. This became known as behavior finance and provided researchers an alternative method to the traditional CAPM to explain stock market behavior. Behavior finance emphasizes the importance of investor psychological factors such as overreaction and underreaaction and relies on the contrarian and momentum trading strategies to explain how investors can obtain abnormal returns in different holding periods based on these psychological factors. Overreaction and underreaction are extremely important concepts in behavioral finance field and create the biggest challenges to the efficient market hypothesis. Barberis, Shleifer, and Vishny (1998) explained that investors’ conservatism causes short-term momentum effect and representativeness heuristic, which can cause overreaction and have long–term reserve on stock price.
Energy Efficient Management in the Classroom and Their Fiscal Implications in Spain
Dr. Maria Luisa Fernandez de Soto Blass, University CEU San Pablo, Madrid, Spain
The European Union approved the Directive 2012/27/EU on energy efficiency and the Directive 2010/31/EU on the energy performance of buildings. Buildings account for 40 % of total energy consumption in the Union. Spanish Action Plan 2011-2020 is a strategic, comprehensive plan that affects all the consuming end-use sectors as well as the Energy Transformation Sector. On September 14, 2012, the Spanish Government approved the submission to Parliament of the Bill on tax measures for energy sustainability. A brief description of certain tax incentives that have not been created specifically for the renewable energies sector. These fiscal incentives could be applied to the building of the classrooms; 1.Tax-Free depreciation 2.Reduction of income from certain intangible assets. 3.Capital duty exemption. 4.Tax allowances on local taxes. The Saving Energy Classroom Tables help Professors, lectures, teachers and students help them to learn about heat, light, electricity, natural gas, and ways to make simple changes that can save valuable natural resources and money on their utility bills. This paper is the result of the researches that the author is carrying out about “Taxation and Climate Change”, that is a National Investigation and Development Research (DER2010-14799) and the other research about “Study on the desirability and the possibility of extending the freedom of choice in education at the Community of Madrid through the implementation of private funding sources (EDUCACEU)REF USPBS-PI02/2011-UNESCO 5309-5802-5909.
Introducing the Communicational Adhesion Lifetime Index Model: A New Communication
Approach for the Hotel Industry
Sandra Heiden, University of Latvia
A profound understanding of customers’ needs and preferences is essential in all industries, and especially in the hotel industry. Understanding guests’ needs and having a clear picture about guests in mind will be a prerequisite for hoteliers in the future; this understanding will make it possible for hotels to survive and prosper (Yavas and Babakus, 2005, p. 359). Hence, hotel marketing of the future should choose <emphasize?> customers’ perspectives. The focus should be on the added value that customers receive due to their service relationship with a company. One central aim is to listen to customers, care about their expectations and respect their fears and uncertainties (Wiesner and Sponholz, 2007, p. 18f.). Since traditional marketing communication approaches are no longer appropriate due to these fundamental changes, new ways are required to cope with these new challenges. Hotel companies require more sophisticated guest segmentation and communication strategies than ever before, due to the highly competitive markets, experienced and demanding customers and the specifications of the service industry. An increase in customer retention is usually regarded as a strategic corporate goal, but a differentiation in terms of changing customers’ expectations is seldom accomplished, and the customer’s perspective is ignored. The intention of this paper is to introduce a new conceptual model for marketing communications in the hotel industry, which takes the customer perspective into account and proposes a new approach for more effective and dynamic communications in the future.
A Study on the Effect of Sequential Extended Brand Elasticity on Brand Equity
Dr. Min-Cheng Lai, National Taipei College of Business, Taiwan
Dr. Shu-Cheng Lin, ChunYu Institute of Technology, Taiwan
Brand extension has been the basis for growth strategies of many enterprises globally. How brand extension strategies affect brand equity has become a popular strategic issue. At present, enterprises mainly adopt diversification strategies to expand business territory. Therefore, the product categories that are completely different from main brand image will be the greatest challenge faced by enterprises. However, when consumers face product categories different from master brand image promoted by enterprises, will brand extension strategies urge them to accept product categories of product extension? This study investigated the correlation among brand elasticity, brand extension evaluation, and brand equity, and conducted a questionnaire survey. A total of 260 questionnaires were distributed, and 237 valid questionnaires were returned. This study found that: 1) under atypical sequential brand extension of reputable master brand, the brand elasticity of subsequent extension will be superior to that of intervening extension; 2) brand elasticity has a positive effect on brand equity; 3) brand extension evaluation has a positive effect on brand equity; 4) brand extension evaluation plays an intervening role between brand elasticity and brand equity. Based on the aforementioned findings, this study proposed specific suggestions on the management of practical operation as reference for practical application and follow-up studies. In recent years, as the product life cycle shortens, the launch of a new product requires high cost. Brand extension is the basis for domestic and international growth strategies for many enterprises; hence, the influence of brand extension on brand equity has become a popular strategic topic.
Causality Relationship for Selection Variables of Brand Creation and Brand Acquisition as Expansion
Strategies: Evidence from Egypt
Dr. Mansour S. M. Abdel-Maguid Lotayif, Business Department, Beni Suef University, Egypt
The current study aims at identifying the factors behind the selection of both brand creation and acquisition besides figuring out the of causality relationships in this perspective. The experiences of 173 Egyptian executives were utilized to achieve these objectives. Throughout multivariate analytical technique (e.g. multiple regression) bivariate analytical techniques (e.g. correlations), and univariate analytical (i.e. descriptive analysis such as percentages) significant causality relationships between brand creation and acquisition and study's demographics were found. Moreover, the variables affecting the selection of brand creation and acquisition were figured out. Brand name (as an intangible asset) has become one of the most critical assets of the firm nowadays (Kuzmina, 2009), as intangible assets are key driver of innovation and corporate value in the 21st century (Bounfour 2003; Del Canto and Gonzalez 1999; and Coombs and Deeds 1996). Moreover, the appropriate allocation of these intangible resources has become an important strategic decision for organizations (Halliday et al., 1997). That intangible asset has different definitions in different disciplines; in consumer, in finance, in legal, and in marketing disciplines (Kuzmina, 2009). More specifically, brand is a set of mental associations in consumer research discipline; brand is an intangible and conditional asset in finance discipline; brand is a tool in differentiating a company’s offering from that of its competitors in legal research, discipline; and brand is a name with considerable power to influence buyers in marketing. How to get that intangible asset? Is it throughout creation? or acquisition?
Dr. Ahmed Soliman, COBA, King Saud University, Riyadh, Saudi Arabia
Mohammed Saleh Salem, COBA, King Saud University, Riyadh, Saudi Arabia
Rapid developments in telecommunications enabled users to perform tasks quickly and easily. Mobile instant messenger is one of the most successful technologies that significantly improved the performance of users. Many people use instant messaging such as Blackberry Messenger and WhatsApp Messenger as a way of communicating with their friends and family members while they are roaming. Others enjoy using instant messenger in sending and receiving jokes and funny stuff. This study reveals that in addition of perceived usefulness and perceived ease of use of mobile instant messenger, sociability, perceived self-expressiveness, and perceived enjoyment are strong motivational factors in using mobile instant messenger. Practical implications and suggestions for future research are offered. Mobile text messaging service has been one of the most successful mobile services in recent years (Nysveen, Pederson and Thorbjørnsen 2005b). Moreover, instant messaging has grown tremendously as the rate of acceleration in the development of information technology, internet, and mobile communication is unprecedented. In a nutshell, Mobile Instant Messenger and WhatsApp Messenger are becoming popular media for both social and work-related communications. Instant Messaging (IM) is often described as a “near-synchronous” communication medium, placing it between synchronous communication medium such as speech and asynchronous communication medium such as email (Avrahami and Hudson 2006).
Influence of Six Sigma Practices on Internal Quality Management of Thai Private Hospitals
entering the ASEAN Economic Community (AEC)
Pareeyawadee Ponanake, King Mongkut’s Institute of Technology, Ladkrabang, Thailand
Dr. Sunpasit Limnararat, King Mongkut’s Institute of Technology, Ladkrabang, Thailand
Dr. Manat Pithuncharurnlap, King Mongkut’s Institute of Technology, Ladkrabang, Thailand
Dr. Woranat Sangmanee, King Mongkut’s Institute of Technology, Ladkrabang, Thailand
This research aimed to study 1) the internal quality management of a Thai private hospital entering the ASEAN Economic Community (AEC), and 2) the influence of Six Sigma practices on this internal quality management. The sample group for the research comprised 337 HA officers. The research was conducted from December 2012 to June 2013, and the research method used was purposive sampling through questionnaires. Statistical data analysis was performed using percentages, means, standard deviations, multiple linear regressions, and the forward selection technique. The research found that 1) the internal quality management of Thai private hospitals entering the ASEAN Economic Community was at a high level, and 2) that the Six Sigma practices regarding supplier relations influenced this internal quality management at the 0.05 level of significance, while the Six Sigma practices customer relations, quality data, service design and process management influenced it at the 0.01 significance level. Quality management is essential to strategic management to increase an organization’s competitive advantage and efficiency. The qualitative ideas that have been applied in management for many years include statistical quality control, statistical process control, zero defects and total quality management. Recently, Six Sigma has become a popular approach to quality management and has been accepted by various industries around the world (Hendry & Nonthaleerak, 2005). The Six Sigma approach emphasizes methods (or systems) that improve the efficiency of businesses’ statistical tools and methods and reduce production process, leading to reduced defects of those process and increased quality of products and services, as well as increased profits (Russell & Taylor, 2011).
Relationship Marketing Orientation and Differentiation Strategy Affecting Banking Performance Effectiveness
Jedsada Wongsansukcharoen, King Mongkut's Institute of Technology Ladkrabang (KMITL), Administration and Management College (AMC), Bangkok, Thailand
Dr. Jirasek Trimetsoontorn, King Mongkut's Institute of Technology Ladkrabang (KMITL), Administration and Management College (AMC), Bangkok, Thailand
Dr. Wanno Fongsuwan, King Mongkut's Institute of Technology Ladkrabang (KMITL), Administration and Management College (AMC), Bangkok, Thailand
This paper aims to develop structural equation modelling of variables that affect the banking performance effectiveness of commercial bank branches (Thailand) in the banking sector by gathering quantitative data. The population of the study covers all 2,068 Thai commercial bank branches in Bangkok, Thailand (as of 31 July 2012). This research defined the Thai banks for data collection using stratified sampling (first step) and simple sampling (second step). Primary data were collected using a self-administered survey of 65 managers and 185 marketing officers. The responses to the questions capturing focal constructs used a seven-point Likert scale. Data were analysed using confirmatory factor analysis (CFA) and structural equation modelling (SEM). It was found that significant relationships existed between relationship marketing orientation (RMO), and differentiation strategy, and banking performance effectiveness. The key success factors of relationship marketing orientation were found to have direct influence on banking performance effectiveness (p < 0.001), and indirect influence on banking performance effectiveness through the mediation of differentiation strategy (p < 0.001). These results enhance performance effectiveness, customer insight and building long-term relationships with businesses and customers to the factors needed to respond to the highly competitive situation at present.
Taylor, HRM, Strategic HRM with Jobs, Employee Performance, Business Performance Relationship:
HR Governance through 100 Years
Dr. Gurhan Uysal, Ondokuz Mayıs University, Samsun, Turkey
This study discusses theory of SHRM, and it puts a SHRM model. SHRM can be described with employee/firm performance relationship. In this relation, employee performance increases performance of business departments; and, performance of business departments increases firm performance. Business departments are stock, supply, marketing, production, logistics, finance and others. Secondly, it is assumed that relationship between employee/firm performance is trigonometric in SHRM function. In trigonometry, there are dependent variable, independent variable, and moderators. Dependent variable is firm performance; independent variable is employee performance, and moderator is business departments. It is expected that relationship is triangular in this trigonometry. Thirdly, there are some functional differences between HRM and SHRM. Major difference between is, HRM practices are individual and separate in HRM. However, HRM practices are interrelated in SHRM. SHRM aims to achieve firm performance. SHRM achieves firm performance through employee performance. HRM practices has an impact on individual performance. and individual performance increases performance of business departments. Departments are stock, supply, marketing, production, finance etc. It is expected that individual performance increases performance of stock department, performance of supply department, performance of marketing department and so on. It is believed that performance of business departments has an impact on firm performance. Firm performance is described with market share, earnings, employee satisfaction, customer satisfaction, product quality. Therefore, performance of business departments increases its impact on those variables of firm performance through employee performance in SHRM.
Politics and Economic Growth: Regional and Income Level Classification
Dr. Hussein Zeaiter, Lebanese American University
Dr. Raed El-khalil, Lebanese American University
Issam Nassar, Lebanese American University
Is politics an important determinant of Economic growth? Political economists have long been arguing whether and to what extent democracy, bureaucracy, government stability, affect economic growth. This paper focuses on the relationship between political risks, like democracy, government stability, military and religion involvement in politics, and ethnic tensions on economic growth controlling for the regions and the income level. Using cross section-time series data for more than 140 countries over the period 1984-2009, this paper shows that government stability is the most important political factor for all countries as well as different income level countries. The growth in Sub-Saharan African countries are mainly affected by the lack of democracy and ethnic tension. The relationship between political risks and economic growth has long been studied. Democracy is considered the main political risk factor of all political risks. It seems to be an engine for growth; however, many non-democratic countries have high growth, at the same time, some democratic countries have slow and sometimes depressed economies. The main question remains to what extent democracy triggers growth in developing as well as developed economies. This study discusses whether democracy and other political indices can be common factors among countries with common geographical areas as well as income levels. Many questions have arisen of the relationship between democracy and economic growth. Sometimes the relationship is direct as in Western Europe where democracy is accompanied by solid economic structures and high growth. In many sub-Sahara African countries, economies perform very poorly and democracies as well.
The Relationship of Service Quality, Customer Satisfaction and Customer Loyalty in Private Nursing
Homes in the Bangkok Metropolitan Region
Lanchakorn Satsanguan, King Mongkut’s Institute of Technology Ladkrabang, Thailand
Dr. Wanno Fongsuwan, King Mongkut’s Institute of Technology Ladkrabang, Thailand
Dr. Jirasek Trimetsoontorn, King Mongkut’s Institute of Technology Ladkrabang, Thailand
The effect of population aging, the socio-economic transformation and the inadequacy of health and social services for older people with health problems has led to a considerable focus on long-term care for them. Some carers in long-term care institutions, particularly nursing homes, are unable to help older persons with chronic diseases and instead can only care for the activities of daily living for the elderly. This leads to a lack of confidence in the service quality of nursing homes, including decreased customer satisfaction and customer loyalty. The overall objective of this study is to examine the relationship of the above three variables with customers of private nursing homes in the Bangkok metropolitan region of Thailand. Authors use an accidental sampling method and regression analysis to collect and analyze data. Regression results are consistent with our research objective. Some items of the service quality construct correlate with customer satisfaction. “Safe facilities for the elderly” has the greatest relation with customer satisfaction. Some items of the customer satisfaction construct correlate with customer loyalty. “Good experience of the service” has the highest relation with customer loyalty. Furthermore, some items of the service quality construct correlate with customer loyalty. “Care of personnel that is similar to relatives of elderly” has the second highest relation with customer loyalty. There were 810 million people aged 60 years or older around the globe in 2012. Population aging – that is, the rising proportion of older people in the population, is a global incident due to the fast decrease in fertility rates combined with declining in mortality and increasing longevity (United Nations, 2012). This phenomenon is taking place in many developing countries in Asia including Thailand.
An Assessment of the Effects of Individuality on Organisational Culture in Selected Institutions in Ghana
Rosemary Boateng Coffie, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
James Kennedy Turkson, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
Assessment of organisational culture is a valuable analytical tool in its own right as there are many ways to visualise the concept of organisational culture. The research assesses the effects of individuality on organisational culture. The culture of the individual is assessed to find out its relationship with individuality. The degree to which individuality affects organisational culture was analyzed and discussed with the support of the Statistical Package for Social Science (SPSS). Factors such as the individual’s home background, inherited traits and working conditions were analyzed against the organisational culture of the individual. The results revealed that the culture of the individual does not influence his work. This was as a result of the modern demands from employers. Upon entering an organization, individuals attempt to understand what the organization is really like and try to become participating members (Feldman, 1976). Individuals are motivated to ‘make sense’ of their environment and understand why things happen (Heider, 1958). By observing behaviours that are common to the members of the organization, new employees can determine what behaviours are expected and rewarded and what behaviours are frowned upon and attract sanctions. As individuals enter and become participating members of an organization, they are exposed to beliefs and values that begin the initial development of cultural internalization. Once employees become aware of organizational expectations, norms, and values, they will often attempt to adhere to them in order to be embraced as new members of the organization. It is obvious that the acceptance of an individual into an organization will depend on how such an individual conforms to the general behavioural patterns of the organization.
Environmental Purchasing: From the Perspective of Claims, Involvement, and Societal Structure
Dr. Kokku Randheer, King Saud University, Saudi Arabia
Dr. Abdulrahaman Al-Aali, King Saud University, Saudi Arabia
Ruwaida Al-Ibrahim, King Saud University, Saudi Arabia
One of the major issues in marketing today is green marketing, or environmental consumption. This study examined whether environmental claims, societal structure, and consumer involvement in environmental issues influence positive consumer attitudes toward the environment and affect purchase decisions. A sample of 460 individuals was included in this study. Data were collected using a multiple-item scale developed to address all of the variables of the study. Data reduction was conducted using factor analysis. Seven factors were identified with alpha values that met the threshold level of 0.7, and total variance explained exceeded 65%. The association between favorable consumer attitudes toward the environment and independent variables was found to be significant. High and low environmental involvement, substantive claims, associative claims, message framing, collectivism, individualism, and favorable consumer attitudes were found to be significant predictors of willingness to perform an environmental purchase decision. Managerial implications highlight the importance of directing environmental issues toward the young and creating platforms that inform, educate, and convert markets into green consumption. An enormous opportunity exists for green consumption, and practitioners should translate this knowledge into a profitable model. Today’s marketing field involves numerous environmental issues, such as the popular green revolution.
Nonverbal Immediacy and Teaching Effectiveness of Asian and American Lecturers
Roy Ramos Avecilla, Webster University, Thailand
Dr. Maria Belen Vergara, Webster University, Thailand
Fifty-two Asian students in an international university in Thailand participated in a study which determined their perceptions of nonverbal immediacy and teaching effectiveness of two Asian and two Caucasian American lecturers of business and technology courses. Teacher nonverbal immediacy involves affiliation and animation behaviors (Smythe and Hess, 2005) whereas teaching effectiveness refers to dimensions of teacher behavior (i.e., cognitive, affective, motivational, disciplinary, and innovative) that produce learning outcomes and motivation in the students (Rico, 1971). Results showed that Asian students perceived Asian lecturers as more nonverbally immediate than Caucasian American lecturers. Although Asian and American lecturers were seen as equally effective in teaching, Asian students positively associated nonverbal immediacy behaviors with the affective, motivational, and overall dimensions of teaching effectiveness of Asian lecturers. The findings underscored the value of cultural differences in expectations and perceptions of appropriate teacher behavior in a multicultural classroom context. Implications on managing multicultural college classrooms and future research directions are discussed. The increasing cultural diversity of students in higher learning institutions has prompted researchers in the field of instructional communication to vigorously explore variables that can promote greater accountability and better instructional quality in a multicultural classroom context.
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