The International Journal of Management 

About: The International Journal of Management is an academic journal. The journal publishes majorly in the area(s): Competitive advantage & Empirical research. It has an ISSN identifier of 2277-5846. Over the lifetime, 3207 publications have been published receiving 17939 citations.

Multiobjective optimisation of production, distribution and capacity planning of global supply chains in the process industry (vol 41, pg 369, 2013)

Abstract: The performance of a supply chain should usually be measured by multiple criteria. We address production, distribution and capacity planning of global supply chains considering cost, responsiveness and customer service level simultaneously. A multiobjective mixed-integer linear programming (MILP) approach is developed with total cost, total flow time and total lost sales as key objectives. Also, two strategies to expand the formulation plants’ capacities are considered in the model. The e-constraint method and lexicographic minimax method are used as solution approaches to tackle the multiobjective problem. Finally, a numerical example is investigated to demonstrate the applicability of the proposed model and solution approaches.

The application of the value added intellectual coefficient to measure corporate performance: evidence from technological firms

Abstract: This research applies a new accounting tool for measuring the 'value creation' efficiency of a company, the Value Added Intellectual Coefficient (VAIC TM) of Pulic (1998). It also examines its correlation with corporate performance, based on the 2003 annual report from 80 Taiwan listed technologies firms. After modifying the model, applications show that the index of VAIC had a significantly positive correlation with profitability (ROA) and market valuation (MB), and a negative correlation with productivity (ATO), three aspects of a firm's performance. The findings suggest that technological industry in Taiwan is capable of transforming intangible assets such as intellectual capital to high value added products or services, as claimed by Pulic (2004). Tests of VAIC and measures of corporate performance suggest that there are certain represented the time lag relationships between the two. 1. Introduction In a knowledge economy, there is a difference between the modern approach of value creation and the traditional way of monitoring operations. This difference in business activities is due mainly to; the introduction of knowledge, an entirely different position of labor and changes in structural expenditures. In this respect, labour and capital are the primary factors in determining corporate wellbeing. (Bornemann 1999; Pulic 2000; Firer & Williams 2003; Mavridis 2004). Practically, three types of capital are found in a company: financial, physical and intelligent capital (Goh & Lim 2004), whose composition determines the production of low and high value added products or services. Since the traditional underlying factors of production have changed, there is a need to develop alternative economic theories about the information necessary for intelligent capital performance and perceptions of corporate performance. Conventional accounting systems have been developed for manufacturing economies and for measuring the value of financial and physical assets, but with intangibles they have found it difficult to account for the rate of change. Except for accounting systems, there are several internal and external measures of intelligent capital. The Skandia Navigator was one of the first internal measures to calculate and visualize the value of intangible capital, which intelligent capital (IC) represents as the difference between market and book value (Leif 1997). Others are the human resource accounting method, the intangible assets monitoring method, and the balanced scorecard method. External measures include market-to-book value, Tobin's Q and Real Option theory (Shaikh 2004). Mainly because of the lack of a commonly accepted measuring system, an important empirical question remains: Do traditional measures of corporate performance effectively capture the new emerging intelligent-based measures of the same constructs? This empirical study applies a new accounting tool of VAICTM, or the Value Added Intellectual Coefficient, developed by Ante Pulic (1998) as his trade mark- and his colleagues at the Austrian IC Research Centre (Pulic 2000; Borhemann 1999) which is designed to help managers leverage their company's potential. The key contribution of VAIC is to provide a standardized and consistent measure that can be used to conduct comparative analyses across various sectors locally and internationally. This potential of VAIC is motivated by growing evidence in the literature, much of the research stemming from the work of Pulic ( 1998). Bornemann ( 1999) found a correlation between intelligent potential and economic performance. Williams (2001) discovered that a firm with a high level of VAIC it appears to reduce its 'intelligent disclosures' when performance reaches a threshold level for fear of competitive advantage being lost. Moreover, Firer and Williams (2004) found that the associations between the efficiency of value added (VA) and profitability, productivity and market valuation are generally limited and mixed. …

The Effects of Entrepreneurial Orientation and Knowledge Management Capability on Organizational Effectiveness in Taiwan: The Moderating Role of Social Capital

Abstract: This study investigates the effects of entrepreneurial orientation and knowledge management capabilities on innovation, competence upgrading and organizational effectiveness among companies in Taiwan, listed in the Top 1000 Firms The study also examines whether social capital moderates the effects of orientation and knowledge on effectiveness It was found that entrepreneurial orientation has a positive influence on the capability of organization to manage their knowledge, on new product or process innovation, on the upgrading of their competence as well as on organizational effectiveness Furthermore, knowledge management capabilities have a significant impact on innovation and organizational effectiveness Finally, social capital moderates the effect on entrepreneurial orientation and knowledge management capabilities on the dependent variables It is argued that these findings have practical implications for business practitioners and academics The limitations of the study as well as directions for further research are also discussed Introduction Nowadays, competitive advantage no longer relies just on tangible assets and natural resources, but on how effectively firms manage knowledge Intensifying global competition forces companies to innovate and improve or upgrade their competence frequently in order to maintain their competitive advantage in the global market In general, this requires the fast exploring and acquiring of critical information and knowledge of the market and of its internal organization (Zahra & George, 2002) Wiklund and Shepherd (2003) suggest that future opportunities can be 'discovered' by combining an entrepreneurial orientation with knowledge management When this combination can be effectively maintained by organizations, the likelihood of underpinning innovation and developing new competencies tends to be higher (Burstein, et al, 2003) By managing knowledge as a continuous process, organizations are able to meet existing and emerging needs, identify, exploit existing and acquired knowledge assets in order to develop new opportunities (Quintas et al, 1997; Carrillo et al, 2004) Furthermore, since knowledge is the key resource for competitive advantage, storing and protecting knowledge creates value for the organization (Berry, 2000) to keep innovating without fear of being imitated by others In addition, Ireland and Hitt (1999) proposed innovation and competence upgrading as two major factors for organizations to compete effectively in the market Organizations should focus on innovation and developing their competence intensively to differentiate themselves from competitors This condition should be based on managing knowledge effectively, by integrating existing knowledge and new information in order to develop new knowledge that will improve innovation (Perez-Bustamante, 1999) The consequence of this strategy is the enhancement of organizational effectiveness In order to provide comprehensive measures of organizational effectiveness it is necessary to include financial performance measures, because the well-performed organization does better financially The roles of social capital on innovation and on competence upgrading have been discussed intensively in the literature (Tsai & Ghoshal, 1998; Burt, 1997; Gold et al, 2001) It is suggested that social capital can enhance firms capacity to diffuse, utilize, and disseminate resources within the organization As the components of social capital, trust, commitment and interaction tend to intensify the willingness of organizational members to share resources and information Tsai (2000) suggested that social capital is an important factor for assisting the organization to create value In the oriental culture, social capital tens to focus on the social networks in society (guanxi), something that is more relationship-based rather than collectivity-based (Marsh, 2003) and is different from the western point of view …

The Effect of Capital Structure on Profitability: Evidence from the United States

Abstract: The relationship between capital structure and profitability cannot be ignored because the improvement in the profitability is necessary for the long-term survivability of the firm. This paper seeks to extend Abor's (2005) findings regarding the effect of capital structure on profitability by examining the effect of capital structure on profitability of the American service and manufacturing firms. A sample of 272 American firms listed on New York Stock Exchange for a period of 3 years from 2005 - 2007 was selected. The correlations and regression analyses were used to estimate the functions relating to profitability (measured by return on equity) with measures of capital structure. Empirical results show a positive relationship between i) short-term debt to total assets and profitability and ii) total debt to total assets and profitability in the service industry. The findings of this paper show a positive relationship between i) short-term debt to total assets and profitability, ii) long-term debt to total assets and profitability, and iii) total debt to total assets and profitability in the manufacturing industry. This paper offers useful insights for the owners/operators, managers, and lending institutions based on empirical evidence. Introduction The capital structure decision is crucial for business organizations. The capital structure decision is important because of the need to maximize returns of the firms, and because of the impact, such a decision has on the firm's ability to deal with its competitive environment. The capital structure of a firm is a mixture of different securities. In general, firms can choose among many alternative capital structures. For example, firms can arrange lease financing, use warrants, issue convertible bonds, sign forward contracts or trade bond swaps. Firms can also issue dozens of distinct securities in countless combinations to maximize overall market value (Abor, 2005, p. 438). A number of theories have been advanced in explaining the capital structure of firms. Despite the theoretical appeal of capital structure, researchers in financial management have not been able to find a model for an optimal capital structure. The best that academics and practitioners have been able to achieve are prescriptions that satisfy short-term goals (Abor, 2005, p. 438). The lack of a consensus about what would qualify as optimal capital structure in the sendee and manufacturing industries has motivated us to conduct this research. Abetter understanding of the issues at hand requires a look at the concept of capital structure and its effect on the firm's profitability. Most other empirical studies on the capital structure of the firm and profitability have been conducted on industrial firms. There might be other factors that affect the profitability of service firms, which are not involved in manufacturing. In service industry, investment in machinery and equipment is very low. If service firms lease their facilities (buildings), then their total capital invested is mainly working capital (Gill, Biger, and Bhutani, 2009, p. 48). In order to examine whether these different investment patterns are also related to the capital structure of these firms, we chose to sample companies from both service industries and manufacturing. This study examines the relationship between capital structure and profitability of the American service and manufacturing firms. The literature cites a number of variables that are potentially associated with the profitability of firms. In this study, the selection of exploratory variables is based on the alternative capital structure, profitability theories and previous empirical work. The choice can be limited, however, due to data limitations. As a result, the set of proxy variables includes six factors: three ratios of short-term debt to total assets, long-term debt to total assets, total debt to total assets and, in addition, sales growth, firm size, and profitability (measured by return on equity). …

Relationships among Internal Marketing, Employee Job Satisfaction and International Hotel Performance: An Empirical Study

Abstract: The concept of internal marketing employed in the service sector is crucial to excellent service provision and successful external marketing which calls for an exploration in details. Taking this concept into account, this paper presents an empirical study on the correlations among internal marketing, employee job satisfaction and organizational performance with respect to international hotels in Taiwan. Findings show significant correlations among internal marketing, employee job satisfaction and performance of international hotels. These findings can provide a basis for future academic research of related topics as well as a solid reference for business owners and managers in the service sector. I. Introduction Several experts (Thomas, 1978; Gronroos, 1990; Kotler, 2000) have consecutively proposed a conceptual framework of service marketing known as the "Service Triangle" to incorporate the concepts of Internal Marketing, External Marketing and Interaction Marketing into a more intensive concept. In developing these marketing strategies, attention shall be given to conventional marketing strategies with the aim of providing services that are unique and acceptable to the external customers to win their loyalty. Attention shall also be given to the value of employees, with the goal of determining them to be a contributory to the overall "organizational capital" of the business. Kotler (2000) explains that internal marketing is more important than conventional external marketing. Further, Greene et al., (1994) point out that internal marketing is the key to excellent service and to successful external marketing. These two views justify the exploration of the marketing concept, i.e., Internal Marketing, within a business organization in the service sector. Research reveals that the concept and the action of an enterprise's internal marketing upgrade employee job satisfaction (Tansuhaj et al., 1991; Rafig and Ahmed, 2000; Conduit and Mavondo, 2001), and in turn improve the organizational performance of the enterprise (Pfeffer and Veiga, 1999; Nebeker et al., 2001). This study presents an empirical exploration into the correlations among internal marketing, employee job satisfaction, and organizational performance of the international hotels in Taiwan, and thus to contribute to practical implementation of the correlations and additional academic research in the future. II. Literature Review 1. Implication of Internal Marketing Previous research about internal marketing can be divided into four categories: (1) Treating the Employee as an Internal Customer. Many experts (Sasser and Arbeit, 1976; Berry, 1981; Greene et al., 1994; Cahill, 1996; Huit et al., 2000) believe that the task of internal marketing is to view the jobs as products; and employees as customers. (2) Developing Employee Customer Orientated Behavior. Piercy and Morgan (1991) address the application of marketing skill in the internal marketing of a company. They argue that the company should adopt a framework similar to that of its external marketing and develop a marketing program aimed at the internal market. The goal would be to stimulate service awareness and customer oriented behavior. Many other experts share the same viewpoint (Gronroos, 1985; Heskett, 1987; Gronroos, 1994; Pfeffer and Veiga, 1999; Conduit and Mavondo, 2001). (3) Human Resource Management (HRM) Orientation. According to Joseph (1996), internal marketing should be incorporated with HRM theories, technologies and principles. Cooper and Cronin (2000) believe that internal marketing is comprised of efforts within organizations to train and encourage employees to provide better services. (4) Internal Exchange. Bak et al. ( 1994) propose that allowing efficient operation of an exchange relationship between the organization and its employees is the first move to arrive at the organization's objectives in the external market. …