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Showing papers in "The International Journal of Management in 2009"


Journal Article
TL;DR: In this article, the authors investigated the causes and consequences of choosing different assurance providers for companies seeking independent verification of their sustainability reports and found that companies domiciled in countries with a weaker governance system are more likely to choose a big-4 accounting firm as assurance provider.
Abstract: An increasing number of companies voluntary disclose information about their social and environment performance in sustainability reports. This study investigates the causes and consequences of choosing different assurance providers for companies seeking independent verification of their sustainability reports. We employ a logistical regression analysis from an international sample of 136 companies to document that companies domiciled in countries with a weaker governance system are more likely to choose a big-4 accounting firm as assurance provider. We additionally examine the association between the type of assurance provider and the quality of a sustainability assurance statement. Using a content analysis based on an existing framework (O'Dwyer and Owen, 2005), we provide evidence that big-4 accounting firms positively affect assurance quality in terms of reporting format and assurance procedures. In contrast, the quality of the recommendations and opinions in a sustainability assurance statement is positively associated with non-accounting assurance providers. (ProQuest: ... denotes formulae omitted.) 1. Introduction An increasing number of companies disclose information about their social and environmental performance in, so-called, sustainability reports to demonstrate a commitment to corporate responsibility. Recent evidence documents the rise of external assurance services that independently verify this type of non-financial reports (Beets and Souther, 1999; FEE, 2004; Ifac, 2006). According to a recent worldwide survey, between 1997 and 2007 the average annual growth rate in assurance statements has been 20%, with a current proportion of assured reports settled at 25% (Corporateregister, 2008). From the 2005 KPMG survey of corporate responsibility reporting, it appears that one-third of the fortune global 250 companies adopt an assurance statement of their sustainability report (KPMG/UVA, 2005). The voluntary demand of independent verification by reporting companies can be explained by their willingness to enhance a report's credibility. These claims are consistent with prior research in auditing indicating that third-party assurance provides greater user confidence in the reliability of the information disclosed (see Carey et al., 2000). Since the market for sustainability assurance services is in its formative stages and is evolving rapidly, there is limited understanding of the nature and extent of the demand and supply of this novel auditing practice (Hasan et al., 2005). O'Dwyer and Owen (2005), drawing on a sample of assurance statements of firms short-listed for the 2002 ACCA sustainability reporting award, identify major differences among assurance levels since there is no generally accepted standard in this area. Three approaches have taken a dominant role, namely the global reporting initiative guidelines (GRI, 2002), the AAlOOO assurance standard (AAlOOOAS) of accountability (2003), and the IAASB' s international standard on assurance engagements (ISAE3000) (IAASB, 2003). As a consequence, sustainability assurance statements reveal great variability across countries with regard to definitions, methodology and content of assurance engagements (cf. Deegan et al, 2006). Similarly, cross-country variation of type of assurance provider is apparent from a survey sponsored by CPA Australia (2004). In the four major geographic regions classified from a sample of 161 assurance statements, large audit firms provided assurance on 87% of reports in Japan, 60% in continental Europe, 23% in the UK, and 15% in Australia. A recent paper by Mock et al. (2007) examined a sample of 1 30 firms worldwide that issued a sustainability report between 2002 and 2004. Their analysis suggested that different characteristics inherent to the level of assurance provided are significantly associated with the type of assurance provider, lending support to higher level of expertise in nonfinancial assurance by auditing firms (big-4 accounting firms) in comparison with other types of assurance providers (e. …

141 citations


Journal Article
TL;DR: In this paper, the effects of consumer trust and risk on online purchase decisions-making by students in the United States and Finland from the perspective of the Buying Decision Process were examined.
Abstract: This research examines the effects of consumer trust and risk on online purchase decisions-making by students in the United States and Finland from the perspective of the Buying Decision Process. Four separate and independent samples were used for comparisons in this study. Data from a specially-developed questionnaire were gathered from 194 students in Finland in 2002 and again in 2004. The United States samples consisted of 152 students in 2002 and 162 students in 2005. Gender, changes over time, and purchase volume hypotheses are examined. Findings include evidence that Finnish men developed a more trusting attitude toward online shopping than women over time. No gender differences were discovered in the United States. Although no relationship between the amount of consumer online risk-taking and online purchase volume was uncovered in either country, in the United States respondents with higher levels of trust towards online shopping tended to buy more. In Finland people with little trust towards e-vendors actually reduced their e-shopping over time. The implications of these findings for effective e-marketers are discussed. Introduction This paper expands previous research where the differences and relationships between online shopping behavior and the stages of the Consumer Buying Decision Process (Kotler, pp. 191-199) in Finland and the United States from two separate samples gathered in 2002 and 2004/2005 were examined (Comegys, Hannula and Vaisanen, 2006). Although some differences were shown regarding the online shopping behavior between the countries, the results made it clear that online shopping has gained popularity as the range of different goods purchased has widened along with the increased purchase volume between the two sampling periods. The earlier research investigated gender and the time of sampling, as well as purchase volume and its changes in time, in relation to the Consumer Buying Decision Process. This paper extends the previous research by focusing on the risk and trust factors, which play an integral role in an online environment, and how theses factors relate to the framework of the purchase behavior model. The risk and trust factors associated with online purchasing are integrated with the five stage Consumer Buying Decision Process traditional model. Both Finland and the United States are considered advanced countries in terms of their information technology infrastructure, as well as their readiness and ability to use it, which is confirmed by the World Economic Forum's 2004-2005 Global Information Technology Report (World Economic Forum, 2005). Thus, any differences determined with respect to the risk and trust factors are rooted in something deeper in the way Finns and Americans perceive Internet shopping, rather than being attributed to the influence of poor G? skills. For example, the earlier studies have shown that although there is a clear indication that online shopping is on the rise in both countries, the United States shoppers out shop their Finnish counterparts at least when it comes to the amount and variety of items, whereas Finns tended to purchase less but more expensive items. This indicates one such fundamental difference between Finland and the United States. From a managerial standpoint, understanding consumer risks and how consumers perceive and reduce them is of great concern. This comes to play especially in an online environment, where the e-marketing vendors have to provide a secure channel for not only monetary transactions, but to logistic solutions to overcome one of the most powerful assets of traditional bricks-and-mortar businesses: the possibility for the customer to walk out with the purchased product in hand. Virtual businesses have to convince the customer that the product can easily be returned if it is not satisfactory. The warranty and customer support must work despite different geographical locations, and the customer has to be convinced to make the purchase without the actual physical product in front of them. …

88 citations


Journal Article
TL;DR: Xinran et al. as discussed by the authors presented an historical analysis of the travel and tourism industry's adoption of e-commerce, and identified a number of consistent customer experience across different channels, among airlines, and involving both international and domestic travel in emerging economies with limited internet access.
Abstract: E-commerce is bringing new business opportunities to the global travel and tourism industry. Tourism-related institutions and Internet companies are joining to tap the potential market created by e-commerce. This paper is an historical analysis of penetration of e-commerce in the travel and tourism industry. The analysis identifies a number of consistent customer experience across different channels, among airlines, and involving both international and domestic travel in emerging economies with limited internet access. It is argued, from this analysis, that there area number of emerging new technologies such as mobile devices and global positioning systems which need to be taken into account and effects systematically assessed. The paper concludes that a major challenge facing the industry is to assess the impact of these technologies on different aspects of the travel industry and to find out how much value-added services they actually provide to consumers. Introduction Information technology has introduced e-commerce through the development of the Internet and the World Wide Web. These developments have impacted both consumer and industry behaviors in the areas of travel and tourism. Consumers have more options regarding vacation and budget planning. 95 per cent of web users have searched the Internet to gather travel related information. 93 per cent visited destination web sites and nearly one half used e-mail to gather travel-related information (Xinran, Dae- Young & Morrison, 2006). Almost three- fourths of online travel buyers used search engines prior to making their purchases. In addition to the Internet, technology gadgets such as GPS 's, mobile phones, smart phones and hand-held devices have improved consumers' tourism and travel experiences. Information accessibility regarding travel, destination, bookings, payments, hotels, attractions, and the quality of maps are areas for improvement. Information and Communication Technologies (ICT) have affected the travel and tourism industry for at least 50 years, particularly in the areas of automation and networking of distribution channels. Local travel agents that used the global distribution system have adjusted marketing strategies and expanded services in order to realize increased competitive advantage. Local tourism business comprehension and utilization of the Internet has permitted increased visibility in additional market segments. Businesses have increased services globally by registering with online travel agents, online advertising agents, and inter-organizational reservation systems. In addition, many businesses have developed websites which offer planning, booking and payment services online for added consumer convenience. Businesses that have not made use of the Internet cannot compete and therefore they must grasp the opportunity before they are out-competed by those that have. Information technology has played a central role in the growth and improvement of the travel and tourism industry. The lasting effects of technology are improved information accessibility, a higher level of competition, and a larger market of consumers and businesses around the globe. Information Technology in the Tourism and Travel Industry During the pre- computerized time, the role of the travel agent was to advise clients on travel destinations and to act as an intermediary in the complicated process of arranging travel bookings. Even as late as the early 1990's, consumers booked cruise travel and tourism through travel agents as many companies did not offer direct bookings. There were two waves of information technology that have had a major impact on the industry. The first of these is the development of the direct reservation systems, such as the American Airlines SABRE system. The second is the development of online sales channels via the Internet. The SABRE system was developed by American Airlines in conjunction with IBM. …

61 citations


Journal Article
TL;DR: In this article, the authors examined factors that deermine which of these two methods taxpayers will choose, and found that attitude, perceived behavioral control and subjective norm positively influence the behaviorial intention of taxpayers to choose the email option.
Abstract: In common with many other countries, the Malaysian government has recently made it possible for taxpayers to file their income tax returns manually or by email, with the latter being preferred because of its speed and simplicity. This study examines factors that deermine which of these two methods taxpayers will choose. The Theory of Planned Behavior (TPB) was used to model the behavioral intentions of taxpayers, hypothesized to be influenced by their attitudes, subjective norms and perceived behavioral controls. The subject of the study were 125 taxpayers each of whom completed a specially-developed questionnaire that measured each of the four independent variable as well as their intention to complete their tax returns by email. A multiple regression analysis of their responses found that attitude, perceived behavioral control and subjective norm positively influence the behaviorial intention of taxpayers-to choose the email option. Implication of this study is also discussed. Introduction As part of the electronic government and also the Multimedia Super Corridor initiatives, the Inland Revenue Board Malaysia (the IRB) is currently streamlining the tax filing process through the use of information and communication technology (ICT) and is working to reform tax administrative policies to embrace an electronic income tax filing system (SGATAR, 2001). The main objectives of the IRB in embracing an electronic filing (e-Filing) system are to facilitate tax compliance and to provide improved taxpayer service through administrative improvement (Ming-Ling et al, 2004). Taxpayers will feel it is convenient, fast and accurate tax computation through e-filing. Taxpayers only need the Digital Certificate, MyKad and key in the transaction details into a computer. The system computes the tax payable automatically, instantly and accurately. And the acknowledgement email of tax forms return from IRB can be received within seconds. The features and benefits of e-filing is immediate acknowledgement, round-the-clock availability and convenience, immediate processing time, cost-savings, user-friendly as well as security. (http://www.msctrustgate.com/). The basic e-Filing requirements are as follows: Tax reference number, PIN Number; Pentium III processor or above; Internet connections; Microsoft Windows 2000 (Latest service pack); Microsoft Windows XP (Latest service pack); IE (Internet Explorer) Ver. 5.0 and above. The website for filing taxes is as shown below https://spsd.hasil.org.my/pki/e/mainpage.html and the procedures involved in the e-Filing process can be accessed from widely available websites, the details of which are made known to all taxpayers. The objective of this paper is to model the intention to use e-Filing amongst tax filers using the Theory of Planned Behavior (TPB). The next section will review the relevant literature followed by the research methodology section, findings, discussion and implications. The objective of this paper is to model the intention to use e-Filing amongst tax filers using the Theory of Planned Behavior (TPB). The next section will review the relevant literature followed by the research methodology section, findings, discussion and implications. In psychology, the TPB is a theory about the link between attitudes and behavior. It was proposed by leek Aj zen (1991). The TPB is an extension of Theory of Reasoned Action (TRA) made necessary by the original model's limitations in dealing with behaviors over which people have incomplete volitional control (Ajzen, 1991). TPB holds that human action is guided by three kinds of considerations which are beliefs about the likely outcomes of the behavior and the evaluations of these outcomes (behavioral beliefs), beliefs about the normative expectations of others and motivation to comply with these expectations (normative beliefs), and beliefs about the presence of factors that may facilitate or impede performance of the behavior and the perceived power of these factors (control beliefs). …

58 citations



Journal Article
TL;DR: In this article, the authors examined the effects of different forms of capital structure on the subsequent behavior of the companies; on the after-effects of the choices of finance by firms, suggesting that how a firm decides to raise capital, whether by means of debt or equity, can make a difference to the performance of the company.
Abstract: This study examines the relative effects of debt and equity financing on the operating performance of companies The sample was collected from a large panel of quarterly financial datasets of listed companies in Taiwan covering the 10-year period from 1995 to 2004 Following the work of Kadapakkam et al (2004), the study defines operating performance as cash flow over sales Over the sample period, the average operating performance of the sample of companies was is around 002 with a maximum of 0445 and a minimum of -0415 A quantile regression analysis of the panel data showed that apart from high cash flow firms, debt financing has significantly negative effects on operating performance, suggesting that how a firm decides to raise capital, whether by means of debt or equity, can make a difference to the performance of the company As such it is an important question that is not without its potential risks or benefits 1 Introduction Most studies of capital structure have investigated what determines how companies decide to raise capital; they have looked into the major determinants of capital structure Very few studies have examined the effects of different forms of capital structure on the subsequent behaviour of the companies; on the after-effects of the choices of finance by firms (Fischer et al 1989, Fama & French 2002) The signal hypothesis, proposed by Harris and Raviv (1985), argues that 'convertible calling' on the part of firms is seldom a good idea, that it is a technique that typically will lower post-call operating performance The trouble with previous studies of the effects of different finance activities is that they have typically have considered either debt or equity as the single source of finance, as if these are the only two exclusive ways in which firms can raise capital, and have employed the conventional ordinary least square (OLS) technique to analyze their data The present study represents an advance over these previous studies in two ways First, it uses the 'dual issue' concept (Hovakimian 2004 to classify firms in the sample, according to which firms can, and often do, issue both debt and equity to raise the capital needed to carry out their business plans in any particular year Second, since OLS techniques are likely to cause inaccurate or biased results when data distribution is asymmetric - as is likely in the present research- this study applies quantile regression (Koenker & Basset, 1978), a technique which is not affected by outliers and shows comparable efficiency to OLS A sample of 3,634 quarterly financial datasets of dual issues from 1 995 to 2004 is taken as the analytical unit On account of slightly left skewed distribution of operating performance, taken as the proxy of dependent variable, the empirical results of OLS and quantile regression are discrepant The next section of this paper describes the data and methodology Section 3 presents the empirical results, while Section 4 discusses the conclusions Data and Methodology The sample was collected from a large panel of quarterly financial datasets covering the 10-year period from 1995 to 2004 All selected firms were involved in in dual issuing over the period of the study and listed on the Taiwan Stock Exchange, which yielded 3,634 observations The financial data of the firms employed in this study were obtained from the Taiwan Economic Journal Database As for the sample selection, following the work of Mackie-Mason (1990) and Hovakimian et al (2001, 2004), two criteria were applied Only firms were included in die final sample whose variation of debt in amount (current- issue liabilities minus pre-issue liabilities) divided by pre-issue total assets exceeded5%, and whose variation of equity in amount (current-issue equity minus pre-issue equity) divided by pre-issue total assets exceeded 5% The measurement of explanatory power in a regression model, in general, is based on the estimate of errors …

25 citations


Journal Article
TL;DR: This paper examined the effect of slack on performance in 450 software firms during the 2001-2003 economic downturn and recovery and found that organizations with more available slack demonstrated a more rapid rate of performance decline in the initial stages of the recession, but later in the recession they demonstrated a quicker rate of recovery.
Abstract: Research on whether financial slack helps or hinders the performance of the firm remains equivocal. One school of thought maintains that slack provides a degree of insulation from environmental change; the second school of thought suggests that slack desensitizes managers to environmental changes. Our study engaged the debate during an economic recession. We examined the effect of slack on performance in 450 software firms during the 2001-2003 economic downturn and recovery. Our measurement of slack specifically focused on available slack, which we gauged using the firm's current ratio. The analysis revealed that organizations with more available slack demonstrated a more rapid rate of performance decline in the initial stages of the recession, but later in the recession they demonstrated a quicker rate of performance recovery. Introduction Does organizational slack grant flexibility for firms to swiftly adjust to environmental shifts? Or does its presence indicate managerial inefficiencies that hamper strategic adaptation? The preceding dichotomy on the role of slack in managing organizations represents one of the more salient intersections between business policy research and managerial practice. Since organizational slack is viewed to be at management's discretion, scholars have focused on the extent to which slack resources should be governed to benefit the firm. One school of thought suggests that slack represents a valuable asset, especially in the context of environmental change. However, other scholars have argued that firms with too much slack are likely to be rife with deficiencies to begin with, and thus ill-suited to weather environmental change. This paper examines these divergent views of organizational slack within the specific context of an economic recession. Because recessions represent one of the most significant environmental threats to an organization's viability and continued profitability (Pearce and Michael 2006), a firm's effective management of slack resources may be particularly amplified within this unique context. That is, as sales revenues decline, profit margins decrease, and available financing dries up, a firm's slack, according to one line of reasoning, may become increasingly scarce and thus critically valuable. While this view aligns with Cheng and Kesner's (1997) assertion that slack may mitigate the effect of economic recessions, it has yet to receive empirical confirmation. This paper aims to offer managerial guidance as well as a contingency approach on the potential influence of certain circumstances on the nature of the slack-performance relationship. As such, we extend previous work on the role of financial slack in firms by offering an empirical examination of the relationship between financial slack and firm performance under circumstances of environmental duress. If slack provides concrete benefits in its ability to buffer firms from environmental disruptions, as many scholars have suggested, then we would witness firms with more slack resources outperforming those with fewer slack resources over the course of a recession. Conversely, if the availability of slack, already representative of managerial ineptitude, desensitizes firms from recession-related demand shocks, then we might expect them to under perform their low-slack counterparts. In undertaking this study, we address recent sentiments by Pearce and Michael (2006) that few managerial prescriptions exist for successfully navigating recessions. This paper provides insights for managers on how to favorably position their firm to survive an economic recession. Slack, Economic Recession, and Performance For the purpose of this paper, we define slack as available resources that remain uncommitted to system operations, such as cash or available credit lines. In general, scholars have identified a multitude of benefits of firm slack in growing the organization. For one, slack alleviates goal conflict within the firm by providing necessary means to solve resource problems (Cyert and March 1963). …

24 citations


Journal Article
Abstract: This paper reviews the recent literature discussing the challenges of repatriation and the possible strategies for meeting them. It reviews past recommendations to HR professionals and ongoing changes in international staffing practices and their effects on repatriation issues. The consequences of unsuccessful repatriation are identified and their implications for global employee management are discussed. The implications of these global changes for career management are recognized and the boundaryless career concept is discussed as a framework for studying careers on a global scale. Suggestions are made for future research in the area of global employee management. With increasing globalization and the need for businesses to compete successfully in a global market place, much attention has been paid to employees who are capable and willing to grow and manage an expanding business in a foreign country. Employees who are selected for international assignments and are relocated to an overseas operation for an extended period of time are commonly known as expatriates. A sizeable body of research has accumulated over the years addressing the special challenges of these employees in foreign locations. Examples of the problems studied are adjustment issues in cross-cultural assignments (Bhaskar-Shrinivas, Harrison, Shaffer, & Luk, 2005), the high cost of expatriate failure (Hammer, Hart, & Rogan, 1998), selecting and training (Tung, 1 998) and repatriation turnover (Black and Gregersen, 1 999; Liu, 2005). Studies usually conclude with numerous recommendations, to HR professionals, for improving the management of their international employees. Over the years, significant improvements have been made in HR policies and the management of expatriates. However, some important issues and problems still continue to adversely affect the expatriation process. Specifically, a significant problem related to overseas assignments consists of the repatriation process upon completion of the work overseas (Andreason & Kinneer, 2004). Coming back to the home office has not always been the experience expected by these managers or professionals. Very often, the years of work experience acquired through foreign assignments tended to be ignored by the organization, and ended up being a hindrance rather than a facilitator of career progression. Disappointing experiences have prompted many employees to leave the company for a better position elsewhere (Baruch, Steele, & Quantrill, 2002). Increasingly, the need for an improved career planning perspective has been accepted by HR professionals. But, the limitations of successful repatriation continue to be recognized. Current research suggests the need for a closer look at the problems of the repatriation process and the available strategies for the staffing of foreign assignments. Given the pervasiveness and complexities of globalization, it is important to adopt a perspective that acknowledges an ever changing environment inside and outside the corporation with implications for global employee management and career planning. The purpose of this paper is to address die problems found associated with the repatriation process and their implications for global employee management. It examines current global staffing strategies of corporations and the implications of these strategies for a new perspective on career management on a global scale. In particular, this paper seeks to highlight recent thinking on global careers and offer directions for future research on the management of global employees. International Experience and Corporate Leadership There are good reasons for valuing an international assignment as an important step in one's career progression. The importance of international work experience for advancement is noted throughout the literature (e.g, Carpenter, Sanders, & Gregersen 2001; Daily, Certo, & Dalton, 2000). Traditionally, an assignment abroad has been viewed as a career move with the expectation of career advancement upon return to the home office. …

22 citations


Journal Article
TL;DR: In this article, the authors provided a framework that relates non-government organization (NGO) internal management practice to corporate performance and studied the effect of senior management initiatives taken inside the organization on the overall performance of the entity.
Abstract: The objective of this paper is to provide a framework that relates non-government organization (NGO) internal management practice to corporate performance and to study the effect of senior management initiatives taken inside the organization on the overall performance of the entity. The internal initiatives addressed in this paper are (1) the time span of corporate strategy, (2) the NGO's internal management techniques and practice, (3) industrial, government relations, and image, (4) ability to navigate through the external environment with a market-driven philosophy, (5) human resource development, and (6) spirit and culture of volunteerism among staff and managers. NGO corporate performance is represented by outcomes developed in the paper, related to sustainability of the NGO, its volume of operations, the deliverability of its services, and the quality of its project products. We then validated our suggested theoretical framework through an empirical analysis of NGOs based in Lebanon and operating in the Middle East. Data was collected by means of a questionnaire developed from preliminary interviews with managers from a subset of 12 NGOs, followed by data collected from 115 NGOs. Empirical results show that NGO corporate performance is significantly and positively correlated with the time span of the strategic plan, industry and government relations, and senior management ability to maneuver in the external environment with market-driven philosophy. However, the internal management model and the human resource development plan were not found to be significant. This could be due to the structure of the projects that are funded through international donors. The NGO Business Context Most developing countries are showing an increased activity in NGOs as part of their economic rehabilitation, yet the civil society sector is still challenged by the lack of clear performance measurement criteria. The increased activity of NGOs is partially due to the fact that local governments in such economies are often ill equipped, and private sector firms are hesitant to invest and offer public goods and services. These factors led international organizations to channel their sponsored developmental projects through NGOs. NGOs are under increasing pressures to become accountable against corporate performance measurement criteria. Theoretically, such measures should involve the volume of the NGO's operations, its capacity to attract funds, the quality of its human resources and its ability to execute projects under consideration, its administrative structure and management models. However, it is challenging to measure outcomes related to typical NGO project deliverables such as alleviating poverty, building capacity, improving literacy levels, protecting biodiversity, or decreasing mortality. NGOs as a Major Part of Civil Society Civil society is defined as "...die sphere of institutions, organizations and individuals located between the family, the state and the market, in which people associate voluntarily to advance common interests..." Civil society mainly involves the role of the government and the marketplace towards the citizens and the society they represent (Carlson, 2002). Civil society comprises two types of organizations; the mutual benefit organizations, and public benefit organizations (Holloway, 2001). Mutual benefit organizations include (1) labor-related organizations such as unions, professional and trade organizations, (2) political parties, (3) student associations, (4) edinic organizations, and (5) recreational or cultural organizations. They are characterized by a two-way benefit system whereby members donate or contribute with the expectations of getting back collective benefits. Organized labor, for example, aims at achieving bargaining power for its members. Such representation and interest protection concepts, along with their applications, go as far back as the late 1800s in that the bargaining power and advocacy for an individual's well-being is far smaller than that of employers with access to financial resources (Webb and Webb, 1987; Commons, 1934). …

20 citations


Journal Article
TL;DR: In this paper, the authors examined the causal effects of idealized and consideration leadership and the mediating roles of trust, commitment, and satisfaction on the performance of voluntary employees based on the LISREL model.
Abstract: This study examined the causal effects of idealized and consideration leadership and the mediating roles of trust, commitment, and satisfaction on the performance of voluntary employees Based on the LISREL model, this study demonstrated that idealized leadership both directly and indirectly affected the voluntary performance of employees, mediated through follower trust, commitment, and satisfaction in their leader The results demonstrated that consideration leadership directly influences satisfaction, while idealized leadership directly influences trust Notably, commitment directly and significantly influences employee voluntary performance Consideration does not influence follower trust due to the lack of visionary effects Again, idealized leadership does not influence follower satisfaction, owing to the limitations of the motivation effects The analytical results demonstrated that the model for measuring leadership practices was valid and reliable 1 Introduction Effective leadership can be essential to success in numerous groups Recognizing various leadership practices and how they influence trust, commitment, and satisfaction in an organization is essential, thus enabling managers to maximize employee productivity Commitment has also been found to strongly influence employee productivity (Wallace & Weese, 1995) Pertinent literature revealed extensive material relating to leadership type, trust, commitment, satisfaction, and voluntary performance of employees However, the relationships among all these variables have received little attention Moreover, there is also very little information regarding these concepts at National Defense University in Taiwan This study focused mainly on three specific employee performance behaviors, namely loyalty, cooperation, and participation (Podsakoff, MacKenzie, 1994) These three behaviors are also known as the voluntary performance of employees] (Bettencourt, 1997) Recently, some marketing scholars have also found that trust, commitment and satisfaction are important constructs influencing employee performance behavior (Bettencourt, 1997; Garbarino & Johnson, 1999) However, to date research no research on the military has simultaneously considered the impacts of these three concepts Thus, this study defined a more robust model for testing employee voluntary performance behaviors in the military and noted employee voluntary performance behaviors The central goal of this study was to devise a model for determining employee voluntary performance behaviors in a reliable study Employee voluntary performance behavior and membership status are crucial but empirical research is limited Other research and operations management focuses on employee satisfaction and stresses its importance in determining employee performance behavior (Morgan & Hunt, 1994) Because of its limited focus, this study ignores other important factors such as trust and commitment, which significantly influence employee voluntary performance Employee voluntary performance was considered helpful, and discretionary employee behaviors, for example loyalty, cooperation, and participation (Singh & Sirdeshmukh, 2000) For academics, this study provides useful insights regarding the motivations of employee voluntary performance behaviors via an empirical investigation For practitioners, this study provides ideas regarding the development of causal relationships among idealized leadership, consideration leadership, relationship quality and the voluntary performance of employees 2 Literature Review and Hypothesis Setting During the last two decades, a new genre of leadership theories and models has emerged, frequently termed transformational leadership (Bryman, 1992) Evidence indicates that ideal leadership influences the performance of followers in various ways However, most research linking idealized leadership and/or consideration leadership to performance has been cross-sectional and based on correlational analyses …

20 citations


Journal Article
TL;DR: A review of the literature by as discussed by the authors shows that targeted diversity recruiting is effective when diversity pictorial displays occur, ad messages emphasize valuing diversity, and recruiters are diverse, and they argue that unrealistic ally high expectations can occur in this type of situation, producing low job satisfaction when confronting diversity climate on the job, and ultimately turnover.
Abstract: A review of the literature by Avery and McKay (2006) shows that targeted diversity recruiting is effective when diversity pictorial displays occur, ad messages emphasize valuing diversity, and recruiters are diverse. Moreover, impression management techniques, such as ingratiation (project image of likeability and inclusion) and promotion (project image of competence), can enhance targeted diversity recruiting. This article argues that unrealistic ally high expectations can occur in this type of situation, producing low job satisfaction when confronting diversity climate on the job, and ultimately turnover. This article presents an expanded model of targeted recruiting combining strategy, impression management, realistic expectations, and diversity climate. Several recommendations for implementing the model follow. An established method of diversity recruiting is targeted recruiting, where the focus is upon locating, identifying, and attracting potential employees (Rynes, 1991), here women and minorities. Moreover, successful recruiting increases the person's fit to the organization (personal values fit organizational values), which in the long run decreases turnover (Ng & Burke, 2005). Targeted locations may be career fairs, churches, community centers or specialized professional organizations (e.g., Hispanic accountants). For example, a survey of state police organizations found the most effective recruiting targeted practices were websites, career fairs, military base visits, college visits, community visits, and mentoring programs (Whetstone, Reed, & Turner, 2006). In this article, I will examine the effectiveness of targeted recruiting in relation to strategy, impression management, realistic expectations, and diversity climate. Literature on the Effectiveness of Targeted Recruiting Avery and McKay (2006) reviewed the literature on targeted recruiting for women and minorities. They found that organizations that present pictures of members of underrepresented groups and statements of affirmative action are more attractive to women and minorities; they feel like they will fit into the organization. In short, members of underrepresented groups react favorably to recruiting messages directed at them. Further, women and minorities react positively to recruiters similar to them. Avery and McKay (2006) believe that impression management theory can enhance these recruiting messages. Essentially, impression management is attempting to control the image an individual presents to others (Schlenker, 1980). In this context, recruiters try to present a positive image of the company to women and minorities. For example, recruiters can use ingratiation - the image that the organization is a friendly and welcoming company valuing diversity - through ads in targeted media presenting diversity policy statements, showing a diverse workforce working together, and using women and minority recruiters. In addition, the organization can practice promotion, where it presents advertising touting how their mentoring program produced successful women and minority managers in the organization. In essence, the organization is showing it is competent at producing diversity results. Further, the organization can use exemplification - performing acts of social responsibility - by sponsoring events important to underrepresented groups. Realistic Expectations Theory Although impression management techniques may enhance diversity messages, they may also create a problem once recruits are hired. Realistic expectations theory (also termed Realistic Job Fteview, Wanous, 1992) posits that recruiting messages that are overly positive may produce in recruits unrealistic ally high expectations of success, which turn to job dissatisfaction once they enter the organization and face reality, which ultimately leads to turnover (Breaugh, 1992; Wanous, 1992). Impression management techniques like ingratiation and promotion may then unwittingly create unrealistic ally positive impressions of how diverse and inclusive the company appears to be, which does not match the reality of the organization. …

Journal Article
TL;DR: In this article, the authors present an overview of glass ceiling type barriers in organizations based on the perceptions of a sample of Malaysian mid-level women managers and investigate how women in middle management perceive their career advancement opportunities and what they consider their organizations to be doing to support their advancement.
Abstract: This study presents an overview of glass-ceiling type barriers in organizations based on the perceptions of a sample of Malaysian mid-level women managers. Previous studies indicated the existence of a glass ceiling in organizations and presented strategic recommendations with regard to what corporations could do to remove or reduce the glass ceiling. This study investigates how women in middle management perceive their career advancement opportunities and what they consider their organizations to be doing to support their advancement. Glass ceiling and informal structures in the organizations will be analyzed from the aspect of corporate practices. The relevant questions are derived from the model developed by Bergman and Hallberg (2002). This study aims to answer whether there is a glass ceiling present in Malaysian companies. This study begins with an introduction of the concept of a glass ceiling that prevents women from advancing, and then continues with previous studies on corporate practices and data analysis of samples from Malaysian organizations. The findings show that women middle managers in Malaysian organizations face a glass ceiling in their working environment which, for example, inhibits the promotion of female managers, and entails a barrier to the career development opportunities for women and entails that women do not have enough organizational support, including networking, mentoring and family friendly initiatives

Journal Article
TL;DR: The purpose of this research was to investigate if computer use increases active engagement in the learning process, as perceived by students, and two aspects of learning were examined: active engagement of students in theLearning process, and student interaction with fellow students and/or instructors.
Abstract: The purpose of this research was to investigate if computer use increases active engagement in the learning process, as perceived by students. Two aspects of learning were examined: active engagement of students in the learning process, and student interaction with fellow students and/or instructors. In a survey of 640 community college students in the United States, 75 % either agreed or strongly agreed that use of IT helped them to be more actively engaged in learning, whilst 72 % agreed or strongly agreed that computers made it easier for them to understand materials that they did not understand initially. Tests of significance showed that use of computers helped students in being more actively engaged in learning, and that the use of computers increased student interactions with fellow students and/or instructors. The implications of the results for effective teaching practice are discussed in the paper. Introduction Information technology affects every corner of college campuses, from instruction to student services and from business processes to staff development. Availability of personal computers in the 1980s and the Internet resources in the 1990s has brought tremendous transformation on how students learn in traditional learning environment. Information technology (IT) tools are being increasingly used in educational institutions to facilitate student learning. Institutions are spending financial resources to update IT infrastructure on an annual basis. While the use of computers prepares future college graduates with the essential skills needed for employment, it is also important to find out if such uses affect positively student learning in classrooms and courses. Though there are differences of opinion as to whether IT has any positive impact on learning, it is true that computer usage continues to increase in educational institutions. Most people believe that computer tools play a positive role in learning at all levels of education. The objective of this research is to determine, from students' perspectives, if computers help student learning. Background Researchers have been divided in their opinions on whether IT affects positively student learning. Studies conducted over the years have come up with different results. More recent studies (between 2000 and 2005) have concluded that significant differences exist in student learning due to IT while earlier research came up with a different conclusion. It is easy to understand the reasons for these differences in conclusions. Students started using Personal Computers (PCs) in early 1980s and the Internet in the early 1990s. Over the years, use of IT tools became more and more widespread and students started becoming more and more comfortable using such technologies. Additionally, instructors began to incorporate computers in their courses and require students to use computers in completing their assignments. The argument on the use of technology vis-a-vis student learning is ongoing. Mellon (1996) concluded that the great pendulum of education was focused on technology. Clark (1994) and Garcia (2000) questioned the findings of research that demonstrated the relationship between technology and learning effectiveness. Anglin and Morrison (2000), Diaz (2000), Joy and Garcia (2000) and Saba (2000) believed that the quantitative methods were not used correctly in determining the effectiveness of learning in relation to learning media. Clark (1994) concluded that the media could never influence learning, specifically student learning. Joy and Garcia (2000) came to the conclusion that much of the literature found no significant difference in student learning between technologybased and conventional delivery media. Other researchers believe that use of computer technologies has positive implications for student learning. Leach (2005) studied the increasing use of information technology in students' learning experiences, on campus and on-line, including e-mail, web pages, chat rooms, presentation software, wireless networks, computer simulations, virtual reality, laptops in classrooms, hybrid classes and e-books. …

Journal Article
TL;DR: In this paper, the authors proposed a framework to analyze the relationship between corporate governance and bank performance, and tested the framework using eight dimensions, comprising governance as daily practice, governance literacy, code of ethics, governance training, transparency, shareholder input, shareholders participation in governance, and accountability.
Abstract: Corporate governance is a driver of investor confidence and managerial decisions. Bank managers entrusted with executing corporate strategy are increasingly expected to exceed internalize shareholders' and board of directors' (Board) expectations. First, we propose a framework translating corporate governance into a checks-and-balances mechanism of collaboration among shareholders, senior managers, and the Board. Second, we propose a framework comprising eight dimensions to analyze the relationships between governance and bank performance. Third, we test the framework using eight dimensions, comprising governance as daily practice, governance literacy, code of ethics, governance training, transparency, shareholder input, shareholders participation in governance, and accountability. Linear regression was performed on primary data collected from 54 Lebanese banks using as the dependent variable an index representing growth, profitability, and customer satisfaction. Each of the dimensions above were significantly correlated with bank performance, with the exception of governance training, information dissemination, and shareholder input in decisions. Introduction Many factors have encouraged banks in Lebanon and the Middle East to embrace and practice corporate governance, especially major events that revealed problems at the strategic level. Further, regulation has become more sophisticated in accordance with basic concepts of corporate governance practices such as transparency, disclosure, and accountability. Previous research related to the Lebanese banking sector typically focused on operational and credit issues, but did not quite address governance issues at a sector level. Each bank applied such concepts separately and subjectively, especially because there were no common intellectual frameworks that allow for gauging how a bank is doing in terms of corporate governance. But as shareholders increasingly asked to have a say in corporate decisions, and customers and the broader the public started to hold the institution accountable for its strategic decisions, Lebanese banks could no longer put governance on the back burner. To translate concept into practice, we developed a framework that helps test the relationship between drivers related to corporate governance practices, and overall business performance. The model proposes a cause-and-effect relationship and allows for the development of key performance indicators (KPIs) related to how well governance is applied and monitored. Business results that we use to test the model comprise profitability results, growth results, and overall customer satisfaction. Clearly, operational processes and the learning involved in governance enhance corporate culture and make it more conducive to the intellectual growth of its employees (Easterbrook & Fischel, 1989). Indeed, corporate governance has a direct relationship with the learning and growth of employees as it encourages participative behaviors by building awareness about the company's overall direction. Researchers and practitioners have also linked good governance to the design of appropriate incentives and compensation (Jensen & Murphy, 1990; Towers Perrin, 1991). Governance as a Driver of Culture As far back as the 1930s, organizational culture was identified as a socially constructed concept that translates into a unique identity of a company (Mead, 1934; Berger & Luckmann, 1966). It was described as an effect that provides organization members with a way of understanding and making sense of events and symbols (Holzner & Marx, 1979). Several researchers in organizational behavior considered culture as the ultimate driver of performance, as it defines the values and beliefs that the organization embraces in daily operations as well as its long term direction. Davis (1984) coins them as daily beliefs and guiding beliefs. But if culture is the driver of performance, then it needs to provide the employee with fundamental factors that unlock her potential. …

Journal Article
TL;DR: In this paper, Mielke et al. defined unweighted and weighted kappa for multiple judges and compared with pairwise kappa, and exact variance and resampling permutation procedures are described that yield approximate probability values.
Abstract: Unweighted and weighted kappa are widely used to measure the degree of agreement between two independent judges. Extension of unweighted and weighted kappa to three or more judges has traditionally involved measuring pairwise agreement among all possible pairs of judges. In this paper, unweighted and weighted kappa are defined for multiple judges and compared with pairwise kappa. Also, exact variance and resampling permutation procedures are described that yield approximate probability values. (ProQuest: ... denotes formulae omitted.) 1: Introduction The classification of objects into categories and ordered categories is common in business and management research. It is sometimes important to assess agreement among classifications for multiple judges. For example, it may be of interest to measure the agreement among a committee comprised of upper-management in the evaluation of possible promotions of managers to vice-president, or measure the agreement among a panel of judges rating Small Business Innovation Research (SBIR) proposals, or measure the agreement of managers assessing a group of interns for a possible permanent position. Cohen (1960) introduced unweighted kappa, a chance-corrected index of interjudge agreement for categorical variables. Kappa is 1 when perfect agreement between two judges occurs, 0 when agreement is equal to that expected under independence, and negative when agreement is less than expected by chance (Fleiss et al., 2003, p. 434). Weighted kappa (Spitzer et al., 1 967 ; Cohen, 1 968) is widely used for ordered categorical data (Cicchetti, 1981; Kramer and Feinstein, 1981; Banerjee et al., 1999; Kingman, 2002; Ludbrook, 2002; Perkins and Becker, 2002; Fleiss et al., 2003, p. 608; Kundel and Polansky, 2003; Schuster, 2004; Berry et al., 2005). Whereas unweighted kappa does not distinguish among degrees of disagreement, weighted kappa incorporates the magnitude of each disagreement and provides partial credit for disagreements when agreement is not complete (Maclure and Willett, 1987). The usual approach is to assign weights to each disagreement pair with larger weights indicating greater disagreement. While both unweighted and weighted kappa are conventionally used to measure the degree of agreement between two independent judges, the extension of unweighted and weighted kappa to three or more judges has been problematic. One popular approach has been to compute kappa coefficients for all pairs of judges, i.e., pairwise interobserver kappa (Fleiss, 1971 ; Light, 1971 ; Conger, 1980; Kramer and Feinstein, 1981 ; Schouten, 1980, 1982a, 1982b; Epstein et al., 1986; Herman et al., 1990; Taplin et al., 2000; Kundel and Polansky, 2003; Schorer and Weiss, 2007). Pairwise kappa is akin to averaging pairs of t tests instead of utilizing an F test, or averaging zero-order correlation coefficients instead of employing multiple correlation. The problem is exacerbated when trying to define appropriate probability values, as the pairwise probability values are not orthogonal. General procedures for combining probability values due to Fisher (1934, 1948) and Edgington (1972) require independence that is not satisfied with pairwise comparisons. In Section 2, a variety of pairwise unweighted kappas are described and compared, Section 3 describes a recently introduced unweighted kappa for multiple judges (Mielke et al., 2007a; 2008), Section 4 discusses a resampling permutation procedure to obtain the probability of an observed unweighted kappa, Section 5 contains an example analysis of unweighted kappa, Section 6 introduces a recently published weighted kappa for multiple judges (Mielke et al., 2007a; 2008), Section 7 describes exact variance and resampling permutation procedures to obtain the probability of an observed weighted kappa, and Section 8 provides an example analysis of weighted kappa with multiple judges. Although the unweighted and weighted kappas introduced in this paper are appropriate for any number of r > 2 disjoint ordered categories and m > 2 judges, the description of the procedure and the example are confined to m = 4 judges to simplify presentation. …

Journal Article
TL;DR: In this article, the authors used a multivariate logistic regression (logit) model to compare the performance of 85 United States companies and found that return on assets, firm size, debt ratios, and auditor opinion are useful in discriminating the best governed firms from the worst governed firms.
Abstract: Recent financial scandals in United States companies have exposed "corporate governance" weaknesses. The measure of corporate governance used in this study is based on a Business Week survey. The governance rankings of this survey are derived from the opinions of experts who rated each company on four aspects of governance: shareholder accountability, quality of directors, independence of the board, and corporate performance. We use a multivariate logistic regression (logit) model in this study and the sample size is 85 United States companies. Our results suggest that return on assets, firm size, debt ratios, and auditor opinion are useful in discriminating "best" governed firms from "worst" governed firms 1. Introduction The practical importance of good corporate governance has been acknowledged for a long time (Shleifer and Vishny, 1997), but has taken the limelight in recent years in the wake of numerous high profile corporate scandals all over the world. Globally, there is increased awareness about the results of poor corporate governance: fraud, runaway CEO pay, excessive diversification, questionable acquisitions and decisions that result in an overall destruction of the inherent value of an organization. Shareholders are filing suits, regulators are enacting laws to ensure good governance, and increasingly, firms are attempting to better govern themselves. This interest in governance has resulted in an explosion of research and commentaries in the popular press and academic journals. Despite the importance of and interest in the topic, empirical research has not converged to provide guidance for best practices that might be followed to improve governance. Some empirical studies have shown positive relationships between well governed corporations and firm performance (Gill, 2001; Gompers, Ishii and Metrick, 2003), while others have not (Dalton, Daily, Ellstrand and Johnson, 1998). The complexity of the issue calls for additional research that might shed light on some of the controversies currently raging in this area. There are numerous mechanisms by which a firm may be effectively governed such as, board and leadership structure, ownership structure and large block shareholders, CEO compensation, takeovers, and overall transparency in reporting. Research indicates that firms perceived as well governed command a premium in the market that could be as high as 10-12% (Newell and Wilson, 2002). Critical among various governance mechanisms is the structure of the board (Daily, Dalton and Cannella, 2003). Are there characteristics of a board that make it effective as a tool of governance? What is the impact of a "good" board on performance of a firm? These questions are not new and have been asked many times in prior research but have been mired in controversy and not fully answered. In this paper we review prior research exploring the relationship between board characteristics and firm performance. We then present empirical results of our study on accounting and financial characteristics of US firms that have the "best" and the "worst" corporate governance according to a Business Week survey. Explanatory variables used in this study include: return on assets, debt ratio, market value of equity, profit margin, cost of goods sold ratio, dividend payout ratio and audit opinion. Some of the accounting variables used above are historical and have an inward looking focus. They measure the past successes of various decisions taken by the board of directors. On the other hand, market based measures mentioned above are forward looking in the sense that they emphasize future expected earnings of the firm. These measures reflect current plans and strategies of the management team. Section 2 provides a brief literature review. The data and methodology are discussed in sections 3 and 4. Section 5 describes the empirical results and we conclude the paper in section 6. 2. Literature Review Agency theory holds that managers are the agents of shareholders, the principals. …

Journal ArticleDOI
TL;DR: In this article, a study was conducted to determine factors that influence variable intention to comply, with zakah payment among Muslim employees, using a diff erent approach than the usual one by decomposing the main factors (i.e. att itude and subjective norm) into several dimensions.
Abstract: Purpose – Previous zakah literatures have shown that many factors may influence the compliance behaviour of zakah on employment income. However, variable intention has not been taken as the focal point previously, although intention is said to be the immediate antecedent variable to one’s compliance behaviour. Thus, this study was conducted to determine factors that influence the variable intention to comply, with zakah payment among Muslim employees. Theory of planned behaviour, which was developed by Ajzen (1985), was applied as a basis for this study. This study used a diff erent approach than the usual one by decomposing the main factors (i.e. att itude and subjective norm) into several dimensions. Meanwhile, perceived behavioural control does not use this approach. Design/Methodology/Approach – This study is based on an extensive literature review and data were generated from a sample 250 Muslim individuals. A multiple regression analysis was used for statistical analysis. Findings – The results showed that att itude and subjective norm can be decomposed into six and three components, respectively. Bett er results were found when all the decomposed components were tested in multiple regression analysis. Three components of att itude, three components of subjective norm, and perceived behavioural control were found to be signifi cantly related to the intention to comply with zakah payment. Originality/Value – This study supports the contention that att itude and subjective norm in the model of zakat intention of compliance behaviour are respectively composed of several dimensions and provide good results if each dimension is treated as a separate variable.


Journal ArticleDOI
TL;DR: In this article, the authors examined the impacts of trade openness and fiscal policy on economic growth in Malaysia between 1970 and 2003 using the autoregressive distributed lag (ARDL) approach and bounds test as proposed by Pesaran et al.
Abstract: This study examines the impacts of trade openness and fiscal policy on economic growth in Malaysia between 1970 and 2003 using the autoregressive distributed lag (ARDL) approach and bounds test as proposed by Pesaran et al. (2001). Based on a structure consistent with the endogenous growth theory, the ARDL results show that, overall, trade openness and fiscal policy have strong positive impacts on economic growth in Malaysia over this period. This paper also develops a system instrumental variable method to estimate the structural speed of adjustment coefficient in an error correction model.

Journal Article
TL;DR: Payutto et al. as discussed by the authors presented an integrated approach to dealing with employee stress, namely physical and spiritual therapy that in many respects is an outgrowth of the way Eastern philosophies deal with the problems.
Abstract: In the workplace of today is characterized by large amounts of stress on the part of employees. It is argued that much of this is due to rapid changes in the business world that have led to many economic, social, political, and family problems. Stress can result in poor work quality, poor productivity, morale problems, health problems, employee absenteeism and turnover and accidents, each of which can cost organizations a lot of money. This paper presents an integrated approach to dealing with employee stress, namely physical and spiritual therapy that in many respects is an outgrowth of the way Eastern philosophies deal with the problems. Physical therapy is a technique for reducing stress through a programme of controlled activity and exercise. Spiritual therapy is about teaching the ability to deal with stress through meditation and reflection on religious teachings. Implications of this integrated approach for reducing stress among both western and eastern managers are discussed. Introduction Stress is the body's nonspecific reaction to any demand made on it. It affects people in different ways and is therefore a highly individual condition. Certain events may be quite stressful to one person but not to another. The affect of stress is not always negative. Some mild stress actually improves productivity and can be helpful in developing creative ideas. But if every one lives under a certain amount of stress and that stress is severe and it persists long enough, it can be harmful. Such stress can be as disruptive to an individual as any accident. Ass reviews of the literature have shown, it can result in poor attendance, excessive use of alcohol or other drugs, poor job performance, or even overall poor health (Mondy, Noe & Premeaux, 2002).It is generally agreed that the nature of work and organizations at the present time tend to create a stressful environment. We argue in this paper that a good starting point in trying to reduce or at least reduce stress at work is with the managers or leaders in the organization. In analyzing what they should do, it is useful initially at least to list the established traits of en effective leader. In this regards, according to their review of the literature, Nakai and Schultz (2003) concluded that a good leader is visionary, courageous, leads, or even follows where necessary, is results oriented, has perspective, is strategic, and respects his or her people. In addition, leaders must learn to deal with stress, scare, worry and anxiety that disturb and destroy the 'calmness' and 'peace' of mind. It has been argued that if leaders are free from stress, they will be in their centered state and higher state of mind, as a result of which they can precisely see things as what they are, and can make the accurate and right decisions (Kausen, 2003) It is the argument of this paper that there are valuable insights for managing stress obtainable in Eastern philosophies such as Buddhism. The Buddhist system of philosophy was developed out of the teachings of the Gottama Buddha (543 BC). The Buddha advocated four noble truths to overcome the miseries of human life, such a as prolonged job satisfaction, after his 'enlightenment' through long-time study and meditation. The four noble truths are: (a) the fact that there is misery, (b) there is a cause for misery, (c) there is cessation or removal of misery, and (d) there is path leading to cessation of misery. The aim of education is to lead the person attain the state of cessation of misery or eternal happiness and peace. The path that leads to cessation of misery is called the eight-fold path. It consists of eight steps namely: (a) right understanding, (b) right thought, (c) right speech, (d) right conduct, (e) right livelihood, (f) right endeavor, (g) right mindfulness, and (h) right concentration (Payutto, 2003). Davis, Eshelman and McKay (1995) mentioned that one of the areas that most people can benefit from learning is how to handle and manage stress. …



Journal ArticleDOI
TL;DR: In this article, the authors address the issue of internet financial reporting (IFR) index, by carefully reviewing existing literature relating to the topic, and then suggest a suitable dimension of disclosure index to represent IFR.
Abstract: Purpose – This paper aims to address the issue of internet financial reporting(IFR) index, by carefully reviewing existing literature relating to the topic, and then suggests a suitable dimension of disclosure index to represent IFR. Design/Methodology/Approach – The study was dependent on an extensive review of the literature of IFR.Findings – Many have investigated the extent, mode and quality of IFR over the last decade. Most of early IFR research is descriptive and exploratory in nature,thus unable to explain the item to represent the level of IFR. Furthermore,while many have conceded that a suitable proxy such as an index of disclosure can be used to gain insight into the sophistication of information disclosed by companies, to date, very few attempts have been made to develop such index. Of these few studies, the dimensions used to represent IFR are inconsistent among the researchers. These differences contribute to the variations in the findings and thus are unable to clearly explain factors influencing the behaviour of the IFR. Based on extensive literature review, we can conclude that the level of IFR can be categorised into two dimensions, which are content and presentation. Originality/Value – The paper provides a basis for mapping existing and future studies on IFR and constructing scenarios of future studies in this area. Paper type – Conceptual paper.

Journal Article
TL;DR: Ecotourism is a growing industry propelling economic growth and advancement in many lesser developed countries as mentioned in this paper, and its appeal largely resides in its interaction with natural environments and educational experiences, while at the same time promoting sustainable development.
Abstract: Ecotourism is a growing industry propelling economic growth and advancement in many lesser developed countries. Its appeal largely resides in its interaction with natural environments and educational experiences, while at the same time promoting sustainable development. However, there is currently a lack of standards in place for evaluating the diverse entrants in the ecotourism industry. Each enterprise has distinct goals and mindsets in place that result in very different levels of impact on the surrounding environment and community. The purpose of this article is to create a framework that identifies the standards necessary for studying ecotourism ventures. Introduction Modern advancements in information technology and countries' infrastructures, coupled with increases in disposable incomes, have resulted in a rapidly growing tourism industry. The World Tourism Organization (WTO) claims that, "at the start of die new millennium, tourism is firmly established as the number one industry in many countries and the fastest-growing economic sector in terms of foreign exchange earnings and job creation" (World Tourism Organization, 2006). This is all a result of an increase in disposable income among developed countries. Because of this increase lesser developed countries are scrambling to upgrade IT and infrastructure in order to attract the billions of dollars being spent on tourism every year. The aforementioned advances have increased the proportion of the population that is well educated and has sufficient disposable income to travel abroad. The advances have also highlighted, through media and the Internet, indigenous cultures in remote places and raised the awareness of environmental issues associated with mass tourism. One example of this is me cruise ship issues with dumping untreated refuse directly into the ocean. Trends are shifting from mass tourism to smaller groups and participative authentic tourism. These trends are emerging as a result of changing consumer preferences for vacations. Mass tourism caters to the need to entertain people on vacation, and satisfies tourists' desire to be pampered. The growing popularity of authentic tourism is based on a participative educational experience that is environmentally and socially responsible as well as sustainable. This category of tourism has become known as ecotourism. The term ecotourism was created and popularized by Hector Ceballos-Lascurain in 1983, and was initially meant to describe nature-based travel to relatively undisturbed areas with an emphasis placed on education. His concept has matured to a scientifically based approach to the planning, development, and management of sustainable tourism products and activities. In the purist vision of what ecotourism represents, a definition should include all of the following elements: * Nature based * Active participation * Progressive educational travel * Interpretation of natural environments * Social and cultural components * Involvement and returns for the local community * Managed to be ecologically and environmentally sustainable With the continuing growth in tourism and die emergence of ecotourism as a distinct segment within the tourist industry, it is increasingly important to understand the development of ecotourism. Ecotourism has become a major source of revenue for developing countries. However, the term ecotourism has been inconsistently applied to purist operations as well as crass commercial exploits. This lack of consistency has been problematic in tracking the development of this industry segment. Review of Literature Growth in Tourism Tourism has existed since biblical times when people traveled to far places to see culturally significant sites. During that time, travel and tourism were limited to individuals of status. With the passage of time, travel and tourism have become available to larger segments of the population, which is continuously growing as a result of increasing economic development and political stability in the world. …

Journal Article
TL;DR: In this paper, the authors examined the effect of ISO/TS 16949 on supply chain performance at 54 automobile and related firms in Taiwan, as judged by their managers, and found that implementation of the quality standard was judged to have improved the performance of the supply chain (in terms of the SCOR criteria) in these firms and led to them being more satisfied with it, in the views of managers from each of the firms.
Abstract: The main objective of management quality standards such as ISO/TS 16949 is to help companies develop and maintain supply chain systems that meet certain criteria (such as those provided by the supply chain operations reference model, SCOR) and 'result' in products and services that satisfy their customers. This study examines the effect of implementing ISO/TS 16949 on supply chain performance at 54 automobile and related firms in Taiwan, as judged by their managers. A multiple regression analysis found that implementation of the quality standard was judged to have improved the performance of the supply chain (in terms of the SCOR criteria) in these firms and led to them being more satisfied with it, in the views of managers from each of the firms. There were no significant differences in these judgments on the part of managers in firms with different characteristics. The results are interpreted as support for the use of such standards, as something whose implementation can help firms to develop excellent supply chains. Introduction The Quality Management System ISO/TS 16949 was drawn from integrating an earlier system QS-9000 (Chrysler, Ford & GM, 1998; Hwang, 1999; Liu et al., 2000; Lin et al., 2004) with other automotive quality systems (Franceschini, 2004). ISO/TS 16949 (Second Edition, 2002) was issued on March, 2002. The content of ISO/TS 16949 includes ISO 9001 :2000, ISO/TS 16949 (Customer Requirements), and specific customer-specific requirements (IATF, 2002; Daimler Chrysler, Ford & GM, 1994, 2002, 2005, 2006). ISO/TS 16949 was developed by the International Automotive Task Force (IATF), the Japan Automobile Manufacturers Association Inc., and ISO TC 176. It has become a common quality standard for the automobile and related industries. The main objective of ISO/TS 16949 is to help enterprises acquire ISO/TS 16949 certification by implementing common standards and thereby provide good services and a high quality of product to their customer. The International Organization "Supply-Chain Council" (SCC) was organized in 1996 by Pittiglio Rabin Todd & McGrath (PRTM) and the AMR Research, with many branches in different countries (Supply-Chain Council, 2007). The Supply-Chain Council initially included sixty-nine voluntary member companies, but it now has close to 1 ,000 corporate members worldwide (Supply-Chain Council, 2007). The membership of the Supply-Chain Council consists primarily of practitioners who represent a wide cross section of industries, as manufacturers, services, retailers, and distributors (Supply-Chain Council, 2007). The Supply Chain Operations Reference (SCOR) model established by the SupplyChain Council is regarded as setting standards for a number of related industries in the area (McKay, 1998; Supply-Chain Council, 2007). The SCOR model covers the five main or major processes of planning, sourcing, making, delivering and returning. For each of these processes it provides criteria for each of the following five aspects; (1) descriptions of the standard processes (2) a framework of relations among the standard processes (3) standard metrics to measure process performance (4) practices that produce 'best' performance (5) standard alignments for features and functions (McKay, 1998; Supply-Chain Council, 2006, 2007). The SCOR model comprises a set of measures for evaluating supply chain performance. These performance measures are both customerfacing and internal-facing. The customer-facing reliability measures are "delivery performance," "fill rate," and "perfect order fulfillment," the responsiveness measures are "order fulfillment lead time," while the flexibility measures are those of "supplychain response time," and "production flexibility." The internal -facing measures are the cost measures of "supply chain management cost," "cost of goods sold," "value-added productivity," and "warranty cost or returns processing cost," and the assets measures of "cash-to-cash cycle time," "inventory days of supply," and "asset turns" (McKay, 1998; Supply-Chain Council, 2006, 2007). …

Journal Article
TL;DR: In this article, the authors discuss the importance of teaming as a strategic and tactical tool which, when properly implemented, will achieve positive performance results, and they provide university and business examples to demonstrate how leaders can integrate teams and teaming into their organization's strategy.
Abstract: This paper addresses teaming as a strategic and tactical tool which, when properly implemented, will achieve positive performance results. When strategic plans are developed, teams and teaming should be included as a strategy, and the reason for the strategy should be explained (e.g., using teams to improve processes or as a way to empower people). Once teaming becomes a strategy, the strategy must be executed in order to accomplish the mission, vision, goals and objectives of the organization. Also, the organizational structure may have to change to support the strategy. If team leaders and other team members do not understand team requirements, they may not do their jobs properly. Therefore, team leaders and members must be taught the theories, concepts, and tools that are necessary for their teams to be successful. In this paper, we analyze reasons for team failure and offer strategic and tactical approaches to achieve team success. In addition, we provide university and business examples to demonstrate how leaders can integrate teams and teaming into their organization's strategic and tactical plans. Introduction The application of team concepts is not a new phenomenon in international or U.S. work environments. Beginning in the early 1900's, articles and books about group (team) concepts were readily available. Some of the earlier publications included Lewin, Lippitt and White (1939) and Lewin (1947, 1951, and 1958). Kurt Lewin is respected as the psychologist who invented the concept of group (team) dynamics. Some of the more recent authors of publications in the area of effective, high performance teams are Rico, Sanchez-Manzanares, Gil, and Gibson (2008), Harrison and Tarter (2007), Adobor (2004). Munro and Laiken (2003), Ammeter and Dukerich (2002), Romig (1996), Ray and Bronstein (1995), Zenger, et al (1994), Katzenbach and Smith (1994), Ehin (1993), Pryor (1993, 1998, 2007), Osbum, et. al. (1990), and Shonk (1992). Longenecker (2001) noted that between 70% and 80% of all U.S. manufacturing companies use some type of teams. He indicated that teams are generally used to "improve productivity, quality, efficiency and overall operating performance" (Longenecker, 2001:21), and he gave several examples of organizational success using teams. Because of globalization, outsourcing and competition, organizations are using work teams and collaboration to achieve organizational objectives. These work teams may include employees of the organization, outside consultants or experts from other organizations, and even external customers and suppliers. Job performance, company performance, product value and customer satisfaction increases when people in strategic business units or work teams support each other and their emphasis is on cooperation and achievement of common goals rather than competition. When cross functional teams align their jobs with customer requirements, it increases not only the long-term viability of the organization but also leads to organizational growth. However, Longenecker (2001) makes the point that the most self-directed, performance-driven managers often function better individually than in a team. Therefore, it is important to make a distinction between groups of individuals who work together but excel individually and groups of people who excel as a team. There are significant differences between work groups and work teams in terms of goals, synergy, accountability, skills, types of work, and empowerment. See Figure 1. Work Groups include people who interact with each other, share information, and make decisions to help each group member perform within his or her area of responsibility. The focus in work groups is individual accountability (i.e., individual performance results). Work teams work together so that their individual efforts result in performance that is greater than the sum of the individual parts (Robbins and Judge, 2007). The philosophy behind the concept of teams is that people achieve better performance results when they as a team take ownership of an issue or a process and function as strategic and tactical leaders of their respective organizations (Longenecker, 2001; Pryor, et al, 2007, 1998). …


Journal Article
TL;DR: In this paper, the authors examine a potential negative consequence of stock option grants to the Chief Executive Officer (CEO) and provide evidence of earnings deferral manifested by significantly negative abnormal accruals for the group with high proportion of stock options.
Abstract: We examine a potential negative consequence of stock option grants to the Chief Executive Officer (CEO). Using a large sample of public firms spanning the period 1992-2001, we classify firm-year observations into three groups based on the stock option proportion of total compensation to the CEO. We empirically document a negative relation between stock option proportion and contemporaneous operating performance. We provide evidence of earnings deferral manifested by significantly negative abnormal accruals for the group with high proportion of stock options. 1. Introduction Executive pay packages contain four basic components: a base salary, an annual bonus tied to accounting performance, stock options, and long-term incentive plans (including restricted stock plans and multi-year accounting based performance plans). The most pronounced trend in executive compensation has been the explosion in stock option grants, which on a Black-Scholes valuation basis, now constitutes the single largest component of managerial pay (Murphy, 1999). In this paper, we examine some implications of awarding large amounts of stock options. Specifically, we investigate the association between the proportion of total compensation to the Chief Executive Officer (CEO) from stock option grants and contemporaneous operating performance. For firms with a low proportion of stock options, there is a reasonable payoff to improved current performance, since a higher proportion of compensation depends on short-term performance. Therefore, these managers may exert a higher level of effort to improve current operating performance to maximize their compensation. However, when the proportion of stock options is high, managers have incentives to either re-allocate effort from short-term to long term or to delay recognition of earnings to increase the future expected compensation from stock options. Both these arguments are consistent with negative association between ROA and proportion of stock options. While we cannot directly test the re-allocation of effort by managers, we can investigate managers' incentives to defer earnings. Manipulation of earnings is one way managers can improve long-term operating performance, given the potential limits on long-term performance of other effort. This issue is important since it examines the incentive of CEOs to defer earnings and consequent deterioration of earnings quality that is driven by high proportion of stock options in their pay. Our results are consistent with the notion mat firms with a high level of stock options experience a negative contemporaneous operating performance. With a large sample of public firms spanning the period 1992-2001, we classify firm-year observations in to three groups based on the stock option proportion of total compensation to the CEO. Our results indicate a significantly negative association between contemporaneous operating performance and proportion of stock option compensation for the firms with a high proportion of stock options, even after controlling for known variables associated with the grant of stock options. This group is associated with large negative abnormal accruals and this is consistent with the notion of deferring earnings to future periods. This result is robust to the use of either a balance sheet or a cash flow approach to estimating abnormal accruals. For firms with a low proportion of stock options, we observe a positive relationship between contemporaneous operating performance and stock options and smaller abnormal accruals compared to the group of firms with high proportion of stock options. 2. Research Design and Empirical Model 2.1 Research Design In order to examine whether me granting of CEO stock options is associated with a firm' s current operating performance, we classify firm-year observations into three groups based on the proportion of stock options. We first rank firms based on their SOPROP by year and by industry. …

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the combined effects of managerial characteristics of owners/managers and business strategy on the firm performance of Chinese small and medium enterprises (SMEs) in Malaysia.
Abstract: Malaysia, like many developing countries, is encouraging local businesses to take greater role in the management of its economy. While incentives and deregulation measures are offered, variations in performances still persist. Researchers have long been interested in explaining the variance in fi rm performance, as even those firms operating in the same industry and in the same business environment show diff erences in performance outcomes. Numerous paradigms in the literature have been employed to explain the variance in business performance, including the Classical Industry Organisation, the Revisionist school, the New Industrial Organisation school, the PIMS paradigm,the Austrian school, and the Resource-based school. This paper investigates the combined effects of managerial characteristics of owners/managers and business strategy on the firm performance of Chinese small and medium enterprises(SMEs) in Malaysia. Using multivariate relationship, the results of the study did not show any significant correlation between the managerial characteristics of the owners/managers and firm performance outcomes among the Chinese entrepreneurs. Nevertheless, a significant amount of variance in performance outcomes can be explained by firm strategy. Furthermore, several significant correlations were found between managerial characteristics and business strategy.

Journal Article
TL;DR: This article investigated the relationship between students' personality traits (risk-taking propensity, goal orientation, and openness to experience) and their perception of the effectiveness of summer-abroad courses.
Abstract: Abroad courses are becoming apart of many higher education programs. Such courses can introduce students to the global perspective of business discipline and provide them with valuable international experience. Student's personality traits, however, may have an influence on how they perceive the effectiveness of the abroad courses. Accordingly, this study investigated the relationships between students' personality traits (risk-taking propensity, goal orientation, and openness to experience) and their perception of the effectiveness of summer abroad courses. A total of 121 students (twenty graduate students and 101 undergraduate students) who participated in a summer abroad program constituted the survey group. The findings of this study suggest that students are fairly satisfied with various components of the summer abroad courses while they see a need for improvement in extracurricular activities, such as company visits and plant tours. Furthermore, goal oriented students, particularly those with a higher level of learning goal orientation, find the in-class lectures (both in the U.S. and at abroad colleges/universities), guest lecturers, and outside class activities to be more effective. Introduction One's individual characteristics could determine his/her behaviors and perceptions. Similarly, students' personality traits may reveal their learning behaviors and influence their perception of course effectiveness. The field of psychology has uncovered a variety of personality trait measures. Through empirical research (Goldberg, 1993), these personality measures have been clustered under a widely accepted five-factor model (Judge, et al., 1999) known as "Big Five" which includes traits of extroversion, conscientiousness, agreeableness, neuroticism, and openness to experience (Costa & McCrae,1992, and Digman, 1990). For this study, however, we focus on three specific, relevant personality traits (risk-taking propensity, goal orientation, and openness to experience) and examine the relationships between these personality traits and perceived effectiveness of summer abroad short courses. From an entrepreneurial perspective, Brockhaus (1980, p. 513) defines the propensity for risk taking as "the perceived probability of receiving rewards associated with the success of a situation that is required by the individual before he will subject himself to the consequences associated with failure, the alternative situation providing less reward as well as less severe consequences than the proposed situation." The goal orientation trait is a linkage between two major classes of goal orientation: performance orientation and orientation learning. Dweck and Leggett (1988) define the performance goal orientation as a demonstration and validation of one's competence by seeking favorable judgments from others while avoiding negative judgments. The learning goal orientation is the development of competence by acquiring new skills and mastering new situations (Dweck & Leggett 1988). Finally, openness to experience is symbolized by being imaginative, intellectually curious, willing to explore, open to new and abstract ideas, and tolerant of unconventional values (Costa & McCrae, 1992). This personality trait can be a predictor of one' s performance in j ob training (B arrick & Mount, 1991) and in the transitional j ob stage (Thoresen, et al., 2004). Background The International Business Programs at California State University, Fresno, is actively engaged in various international endeavors and strives to fulfill the University's international-related mission and goals. To that extent, in the summer of 2008, the International Business Programs offered five undergraduate and two graduate courses from the business curriculum in three different locations: Hong Kong, Paris, and Dijon. Two of the undergraduate courses (Production/Operations Management and Strategic Management) were offered in joint partnership with Hong Kong Baptist University, China. …