Showing papers in "Contemporary Management Research in 2009"

Crowdsourcing and its application in marketing activities

Abstract: Crowdsourcing is a newly developed term which refers to the process of outsourcing of activities by a firm to an online community or crowd in the form of an ‘open call’. Any member of the crowd can then complete an assigned task and be paid for their efforts. Although this form of labour organisation was pioneered in the computing sector, businesses have started to use ‘crowdsourcing’ for a diverse range of tasks that they find can be better completed by members of a crowd rather than by their own employees. This paper examines how firms are utilising crowdsourcing for the completion of marketing-related tasks, concentrating on the three broad areas of product development, advertising and promotion, and marketing research. It is found that some firms are using crowdsourcing to locate large numbers of individuals willing to complete largely menial repetitive tasks for limited financial compensation. Other firms utilise crowdsourcing to solicit solutions to particular tasks from a crowd of diverse and/or expert opinions. Conclusions are drawn regarding the advantages and the limitations of crowdsourcing and the potential for the future use of crowdsourcing in additional marketing-related applications. Keywords: Crowdsourcing, Outsourcing, Wikinomics

Success Factors for Small Rural Entrepreneurs under the One- District-One-Industry Programme in Malaysia

Abstract: This paper presents the determinants of small business success as perceived and experienced by rural entrepreneurs. A sample of small rural entrepreneurs under the One-District-One-Industry (ODOI) programme in Malaysia was surveyed using a structured questionnaire. Despite the importance of both internal and external factors, this paper found that the external factors are more dominant than the internal ones in contributing to the business success of the ODOI entrepreneurs. All the external factors extracted by factor analysis narrow down to the important role of the government in promoting small business success. Therefore, the government should continuously provide assistance and favourable environment conducive to small entrepreneurship in the rural area. Keywords: Rural Entrepreneurs, One-District-One-Industry, Success Factors, Factor Analysis

Green Consciousness of Consumers in a Developing Country: A Study of Egyptian Consumers

Abstract: The last three decades have seen a progressive increase in worldwide environmental consciousness due to rising evidence of environmental problems. Environmental protection is increasingly becoming a necessity and part of a bigger agenda in the urbanising world of developing countries. Given the increasing deterioration of the environment, Egypt as in most developing countries should prevent pollution and preserve its natural resources. Egyptian consumers are just at the stage of green awakening. The Egyptian government and companies should respond to the green challenge by knowing whether or not Egyptian citizens are concerned about green issues. Environmental attitudes constitute a significant part of environmental consciousness. Therefore, this paper empirically investigates the attitude of Egyptian consumers towards the environment in general. A survey was developed and administered across Egypt. A total of 122 Egyptian consumers responded and completed the questionnaire. Results contradict the traditional wisdom that environmental concern is a luxury afforded by only the wealthy and shed a light upon the possibility of going green in Egypt. This will help the Egyptian government better understand consumers' level of concern about the environment, develop effective environmental policies required to achieve sustainability and reinforce green purchase through legislation. Moreover, companies will have insight about how to profile green consumers in Egypt, and better develop green marketing messages that will functionally and emotionally appeal to their target customers. Keywords: Pro-environmental Attitude, Green Marketing, Environmental Consciousness

Organizational and Occupational Culture and the Perception of Managerial Accounting Terms: An Exploratory Study Using Perceptual Mapping Techniques

Abstract: Organizational culture and occupational culture are powerful forces that drive organizations and their members. This study explores their effects on the perception of managerial accounting terms, as measured by semantic differential scales. The sample comprises two occupational groups (i.e. 64 management accountants and 68 non-financial managers) in ten organizations. Organizational culture is measured by the Organizational Culture Inventory. INDSCAL and cluster analysis results indicate that different organizational and occupational cultures are associated with differential perceptions of managerial accounting terms. This finding has implications on the effectiveness of accounting communication. It also shows the importance of understanding the effects of organizational culture and occupational culture, which are powerful forces driving organizations and their members. Keywords: Organizational Culture, Occupational Culture, Accounting Communication, Managerial Accounting Terms, Perceptual Mapping Techniques

An Empirical Investigation on the Impact of Quality Management on Productivity and Profitability: Associations and Mediating Effect

Abstract: This paper tries to investigate on how quality management practices may affect productivity and profitability in the electronics and electrical industry. This study attempts to fill the research gap by examining relationships between quality management practices, productivity and profitability in the electronics and electrical industry using correlation, multiple regression analyses and SEM. In doing so, relationships between QM, productivity and profitability constructs were assessed and described. The results reveal that quality measurement, benchmarking in particular as well as employee focus, supplier relations and training appear to be of primary importance and exhibit significant impact toward productivity and profitability. In addition, the findings also suggest that productivity mediates the link between QM and profitability. Findings of the study provide a striking demonstration of the importance of quality management practices for the electronics and electrical industry in Malaysia in enhancing its productivity and profitability. Keywords: Quality Management, Productivity, Profitability, Electronics and Electrical Industry, Correlation, Multiple Regression and SEM

Service Quality Index: A Study on Malaysian Banks

Abstract: The paper aimed to construct a measure in service quality for Malaysian banks. It focuses on the technique used in creating an index for service quality. The SERVQUAL model was used as the underlying theoretical framework. The quantification of service quality led to the attempt to construct an index. The index was constructed using Structural Equation Modeling (SEM) and American Customer Satisfaction Index (ACSI) as the underlying frameworks. An adapted ACSI was enhanced and improved to accommodate 2 exogenous constructs. The attempt was successful. A survey was conducted on 350 respondents where 200 were completed. Results provided evidence relevant to the literature where service attributes in service quality could improve customer satisfaction. Keywords: SERVQUAL, ACSI, Service Quality, Service Attributes, Structural Equation Modeling (SEM), Customer Satisfaction and Malaysian Banks

Executing Downsizing: The Experience of Executioners

Abstract: Downsizing as a managerial strategy has been implemented on a global scale for more than two decades. Most research on the outcomes of downsizing focus on the personal and professional consequences affecting individuals representing two distinct camps: the downsizing survivors and downsizing victims. This Australian case study explored how the executioners, the individuals that were entrusted with the task of carrying out downsizing, experienced their responsibilities. The results derived from one of Australia’s largest banks demonstrate that the work of executing downsizing activities is emotionally taxing. It was shown that executioners had a tendency to distance themselves from the tasks emotionally, cognitively, and physically. These strategies were seen as coping mechanisms for self-protection and self-preservation. Previous experience with downsizing enabled executioners to stay on task. Relational proximity and closeness with individual victims further impacted the emotional state of executioners. This study heavily relied upon Clair and Dufresne’s (2004) empirical work and generated a preliminary conceptual framework depicting various facets of executioners’ reactions to downsizing-related layoffs. Keywords: Downsizing, Executioners, Australia, Bank

Determinants of Subcontracting in Lao Garment Industry

Abstract: Subcontracting firms play an important role in industrial development. One of the main reasons is that large firms subcontract small and medium-sized enterprises and by doing so, large firms can enjoy the advantage of lower wage of small firms (traditional approach) and/or they can enjoy the lower transaction cost from inter-firm cooperation in terms of technology, production and marketing (modern approach). This study aims at investigating the determinants of 42 subcontractors’ behaviors in Lao garment industry. We utilize probit model in analyzing data from the field survey. The results of analysis follow modern subcontracting approach. Traditional subcontracting relation that has been simplified as the relationship between high wage firms employing male workers and low wage firms employing female workers is not important factor in explaining subcontracting behaviors of Lao garment industry. Rather, modern subcontracting relation approach matters much more in this industry.

How Cause Related Marketing Influence Customer Value in Banking Industry

Abstract: This study elucidates how cause related marketing, service quality and perceived risk are related, and explores the influence of service quality and perceived risk on customer value. Service quality found to be affected positively by cause related marketing, whereas cause related marketing negatively influences perceived risks. Finally, exactly how customer value is affected by the service quality and perceived risk is considered, and cause related marketing notably indirectly affect customer value through service quality and perceived risk. Keywords: Cause Related Marketing, Service Quality, Perceived Risk, Customer Value

Forgiveness and Revenge: Empirical Study of Malaysian Business Employees

Abstract: Building on a previous work by Bradfield and Aquino (1999), this study examines factors influencing forgiveness and revenge cognition and behaviors among Malaysian executives. A questionnaire survey method was undertaken. Respondents were selected by using convenience sampling method from four Malaysian organizations. The findings from this study suggested that 1) that the contemplation of revenge or forgiveness is positively related to their behavioural equivalents: (2) that power asymmetries between the offender and the victim in a corporation has an influence on the forgiveness or revenge behaviour; (3) that revenge cognitions and behaviour in a corporation are influenced by the offence severity: and (4) that religion (especially), gender, and ethnic have asignificant influence to forgiveness cognitions and behaviours.

CEO Compensation and US High-tech and Low-tech Firms' Corporate Performance

Abstract: Many factors contribute to the determination of top executive compensation. This paper explores and examines the systematic difference of high-tech and low-tech CEO pays. It examines the relationship between top executive compensation and an Organizational factor, a Market factor and an Accounting factor. It tests CEO’s salary, bonus, and long-term compensation with respect to corporate reputation, ROE, Tobin’s Q, CEO shareholding and firm size. The results show that CEOs’ Salaries at high-tech firms shows a significantly positive relationship with ROE, Tobin’s Q, and corporate reputation, while only corporate reputation shows a significant relationship with CEOs’ salaries at low-tech firms. In addition, both the high-tech and low-tech firm executives’ total compensation are significantly and positively related to Tobin’s Q, and corporate reputation. Similar results are reported with Long-term compensation. In general, high-tech firms tend to use more sophisticated performance measures for the determination of CEO compensation, while low-tech firms seem to use a simple performance measure such as corporate reputation.

Ownership Structure and Firm Performance in an Emerging Market: the Moderating Role of Social Networks

Abstract: This study aims to exam whether firm performance is affected by ownership structure both directly and in interaction with social networks in an emerging country. We adopt 2004 data on 279 Taiwanese public electronic firms. The result finds that different levels of ownership structure have different impacts on firm performance. Besides, Taiwanese electronic firms have less interlocks than America and Singapore, while the interlocks of Taiwanese electronic firms are more likely occurred in the same industry. The article also documents that different kinds of interlocks have different relationship between interlocks and firm performance. As for the interaction between ownership structure and interlocks, there is no significant relationship between them. Keywords: Ownership Structure, Social Networks, Resource Dependence Theory

An Empirical Investigation on the Dyad Perspective of Buyer- Seller Relationships in Australian Regional Agribusinesses

Abstract: The research reported in this study investigated how agribusinesses in Australian regional setting evaluate their existing business relationships and identifying the areas for improvement. These areas were examined in terms of the variables of the fivestage buyer-seller relationships development process from the existing literature and this was achieved through a series of 24 in-depth interviews conducted with 12 agribusinesses from a dyadic perspective. The findings revealed that at the early stages of the relationship, organisations were concern with achieving product and service quality whilst trust, commitments, co-operation, social and structural bonds were regarded as more critical in the later stages of the relationship, to the development of a close long-term relationship. The research findings also highlighted eight areas for improvement in a buyer-seller relationship that could vary in their relevance and importance at each level of the relationship.

Uncovering and Developing Industry Clusters

Abstract: This paper observes that the existing definitions of clusters can be grouped under two categories: intra-industry clusters, and inter-industry clusters. Economic geographers and strategy researchers suggest “intra industry” conceptualisations of clusters. Regional economists subscribe to the Porterian model of clusters that focuses on inter-industry linkages. While we agree that clusters should assess inter-industry linkages, we argue that the process of identifying clusters should begin at the intra-industry level. A conceptual framework based on ‘strategic groups’ theory and value system analysis is developed as an explanation for industry clusters. Keywords: Strategic Groups, Value System Analysis, Regional Economics

Underwriting Systematic Risk and Profit Margin in Fuzzy CAPM and ICAPM Models: The Case of Aviation Coverage

Abstract: Airlines are the business of transporting passengers in which the safety and risk have always been important We use the fuzzy CAPM and fuzzy ICAPM models to investigate the underwriting systematic risk and profit margin of aviation transportation, in which the parameters of membership function are the asymmetric triangular fuzzy number We calculate the underwriting systematic risk and profit margin of aviation and show that the value of underwriting systematic risk in both of CAPM and in ICAPM are positive and, while the underwriting profit margin of aviation is positive in CAPM it is negative in ICAPM The results mean that there is a positive relationship between the return rate of underwriting and rate of market, and the return of P/L insurer is made on investments, not on the underwriting in the aviation insurance, which could be used to perform the forecasting of the underwriting profit margin and underwriting systematic risk Our results show that the prediction model of underwriting risk and insurance price in the fuzzy environment with skew factor becomes more rational and elastic than that in the crisp environment Keywords: CAPM, ICAPM, Underwriting Systematic Risk, Underwriting Profit Margin

A Two Phases Reputation－Based Model for Selecting Trusted Partners

Abstract: Partner selection is a key issue in supply chain management, owing to its role as the critical starting point in supply chains. However, trust is crucial among supply chain participants, and lack of trust is a significant barrier to establishing collaborative partnership. This study presented a method for selecting trusted collaborative partners which comprised two phases: (1) discovery phase, during which a requestor (i.e. namely a trustor) discovered the partner candidates (i.e. namely trustees) that were willing and claimed to be capable of collaborating, and (2) selection phase, during which the trustor selected the most reputable trustees using referral and reputation systems. This study adopts referral networks to identify the objective and subjective testimonies of partner candidates from third parties (i.e. namely raters) who had previously collaborated with the trustees, and this information was then aggregated to yield a trust score. The trustee with highest score was selected as a collaborative partner. We hope the proposed model can effectively help enterprises select collaborative partners with good competence, goodwill and predictability. Keywords: Collaboration, Collaborative Supply Chain, Trusted Partner Selection, Reputation System

Inter-Firm Relationships in the Telecommunications Industry: Characteristics and Typology

Abstract: This paper discusses the characteristics and formation of inter-firm relationships in the telecommunications industry. The formation and partner selection are key issues for managers arranging inter-firm relationships. We focus on inter-firm relationships conducted by the telecommunications carriers and discuss the characteristics of the industry and possible or preferred formations and propose an analytical framework for inter-firm relationships in the industry. The discussion and proposed framework are validated by actual observed inter-firm relationships. We observed that major telecommunications firms choose equity-based relationships rather than other types and we show a framework that can help people to recognize strategic directions for preparing a valuation of inter-firm relationships in the industry. Keywords: Telecommunications, Strategic Alliances, M&A, Typology

Information Transfers among Group-Affiliated Firms

Abstract: This study examines intra-group information transfers associated with quarterly earnings announcements. Specifically, the objectives of this paper are to investigate whether there is positive information transfers among group-affiliated firms, and to examine how the affiliate’s operating strategy affect the extent of information transfers. The sample includes 615 quarterly earnings releases by firms listed in Taiwan Stock Exchange between 1988 and 1997. The empirical results provide evidence of positive information transfers between affiliated firms associated with quarterly earnings announcements. In addition, the extent of information transfer is dependent on the diversification strategies of the group affiliates. When industry covariation in firms' returns is removed, directional information transfers remain significant. Keywords: Group-affiliated Firms, Information Transfer, Quarterly Earnings Announcement, Market model, Two-index Model

Am I an Online Shopper After All? A Paradox on Definition of e-Commerce from the Consumers' Perspective

Abstract: Retailing marketplace today is composed of traditional and electronic retailers. Facing to the evolutionary transformation arose from electronic commerce (EC), this article attempts to establish the elementary understanding on EC and modern consumers’ behavior. The authors examine the gap between practitioners’ and academics’ perception about EC and get a clear look from consumers’ perspective. Four behavioral patterns with different tendency to online activities are further identified. They are product-, price-, convenience-, and service-orientation. Additionally, an industrial demonstration of consumer electronics retailing is presented to show the gap and to exemplify an application of consumers’ behavioral patterns proposed in this paper. For people involved in the marketing and EC fields, this article suggests that consumer behavior should be reexamined according to the specific product categories under appropriate EC definition.

Application of XCSR Model for Dynamic Portfolio Selection

Abstract: Security selection is the most time-consuming problem in investment process Today, investing environment is more complex than before and investors can’t see through the information frame, the reality behind which they are unable to scrutinize Static model cannot provide appropriate solutions when current phenomena are completely different from that of the training period Learning classifier system (LCS) is possessing with dynamically learning mechanism to evolve internal rules in response to changes in the external environment This study employs real number version classifier system (XCSR) to investigate constructing dynamic stock portfolio We examine the constituents of the TSEC Taiwan 50 Index and take those stocks daily transaction data to generate a number of technical indicators as input factors for XCSR model The empirical results revealed that this study's XCSR model yields return on investment is significantly better than the Buy and Hold model This research also indicates that classifier system can effectively monitor market fluctuations and the proposed model can help investors obtain relatively optimal returns Keywords: Extended Classifier System, Dynamic Portfolio, Framing Effect

An Exploratory Study into the Accountancy Firms Chosen by Industrial Company IPOs in Australia from 1994 to 2004

Abstract: This study is an exploration into the choice of independent accountants made by industrial initial public offering (IPO) companies in Australia between the years 1994 to 2004. The aim of this research is to determine which companies are more likely to use one of the Top 5 accountancy firms and in so doing we seek to offer some insight into understanding the likelihood of IPO companies adopting the services of the big accounting firms. Our findings show, as predicted, that the majority of industrial IPO companies, and particularly the larger companies, used one of the Top 5 accountancy firms as their independent accountant. However, unexpected was that certain industry types were less likely to hire a Top 5 accounting firm for their independent accounting services compared to other industry categories. Our studies also found that after the year 2000 a smaller percentage of companies used independent accountants than between 1994 and 1999. Many factors contribute to the selection of an independent accountant and this paper provides some understanding of identified factors and the influence that they have over the choice of independent accountants by industrial company IPOs.

Abnormal Stock Returns and Share Repurchases Following Increases in R&D Expenditures

Abstract: This study assumes that firms with significant increases in research and development (R&D) expenditures have more information asymmetry between managers and investors. These firms may have greater difficulty in reflecting intrinsic firm value than other firms, and may have incentive to repurchase outstanding shares. Consequently, this study examines the relations among R&D, abnormal stock returns, and share repurchases. The empirical results demonstrate that firms that economically significantly increase in R&D exhibit abnormal stock returns. Such firms are more likely to make share repurchases, and abnormal stock returns are associated with positive repurchase announcements. Keywords: Abnormal Stock Return, Research and Development, Intangible Assets, Share Repurchases, Information Asymmetry

Making Investment Decisions in a Chilean Family-Oriented Business: Who is Right the Parents or the Children?

Abstract: The relevance of traditional methods of project evaluation in the decision-making process for family-oriented businesses is not completely clear, as compared with the importance of other variables such as the project’s coherence with the family’s values and interests, amongst others. This article presents a case study related to a Chilean family business, in its attempt to determine the importance that family members attribute to different variables that should be considered when making investment decisions. The investigation considered three types of data: a) evaluation of the investment from a financial and strategic point of view, b) presentation of results to the member of family, and c) follow-up with respect to the decision made and interviews with all the family members. The results show that the parents feel that stability in the family investment policies and the impact of the investment on the roles that each family member plays in the business are the most relevant variables, whereas the children assign more value to aspects associated with business returns.