Volume 1, Issue 1, 2007

Using Intellectual Capital and Organizational Capability to Enhance Strategic Implementation for Pharmaceutical Firms  Sharon Yvette Boyce

Abstract
Sustaining a competitive advantage is imperative for firms that are in dynamic industries, which require effective strategic implementation to manage such changing situations.  Many firms have found that implementation is very difficult to execute.  The major components of strategic implementation will be examined and analyzed.  The contention and rationale by scholars that the implementation process is so difficult to attain will be assessed.  Finally, there will be recommendations as to how a pharmaceutical company can use intellectual capital to build organizational capability as a competitive advantage to enhance its implementation strategy over the long-term. Full Article
 

Intertemporal Consumption Smoothing and Capital Mobility: Evidence from Malaysia
Soo Khoon Goh

Using a simple consumption smoothing model and cointegration tests with a structural break, this paper has re-examined the impact of changes in capital mobility and the current account's capacity to predict external performance in Malaysia. The model views the current account as a buffer through which private agents can smooth consumption over time in response to the temporary disturbances to output, investment, and government expenditure. The findings are as follows. Firstly, a structural break is empirically identified in the relationship between consumption and national cash flow in the year 1996, that is a year prior to the Asian Currency Crisis. Secondly, the most stringent restrictions of the present-value model are strongly rejected over the sample period.However informal tests (via Granger causality, correlation, and variance ratio tests) suggest that the consumption smoothing model is sufficient to predict the dynamic behavior of the Malaysian current account. Lastly, the results also suggest that Malaysia’s current account imbalance was sustainable prior to the 1997 crisis. Full Article
 

An Empirical Study of Customer Relationship Management Implementation in Taiwan’s Machine Industry  Yi-Chan Chung, Shiaw-Wen Tien, Chih-Hung Tsai, Lin-Lin Tang

Abstract

The competition between enterprises is becoming more intense in the 21st century. Economy is depressed, the industrial structure is changing, and unemployment is at a record rate in Taiwan. Under these competitive pressures, it is important to impress and improve the relationship with the customer. Because of the power of information and telecommunications technologies, business can track their customers and determine what they really want and how they actually use the product. Analyzing the information returned from customers and products, business can provide active and accurate service to the right customer through the right channel at the

Verbal Practice and Processes of Topics in Organizational Behavior and Theory: The Case of a Restaurant’s Staff Meeting  Hamid Akbari

Abstract
An exploratory interpretative study was conducted to identify the actual verbal processes associated with topics in organizational behavior and theory. A tape of an actual staff meeting of a restaurant was transcribed. The transcription was discourse analyzed by two researchers. The results indicated that the meeting’s talk included the topics and processes of structuring, culture creating, leading, exerting power, and controlling. These topics and processes are described, and the implications of this study for management practice and education are discussed.
Full Article


 

Confronting Rubinomics and the Clinton Administration Economic Boom
Michael Meeropol  and Carlos F. Liard-Muriente

Abstract
 

The "crowding-out" debate is an important controversy in macroeconomics. More recently, the crowding-out debate was put in the forefront as an aftermath of the Clinton Administration economic boom legacy, in particular by the former Treasury Secretary Robert Rubin. Rubinomics or the argument that "fiscal discipline" will bring private investment to a growth path as a result of a decrease in real interest rates is appealing. However, we conclude based on data from the experience of the US economy during this period of extraordinary "fiscal discipline" that the evidence does not validate the arguments of Rubinomics.  Full Article



The Measurement and Recognition of Intangible Assets 
Philip Siegel and Carl Borgia

Abstract
In today’s economy value is being created by intangible (intellectual) capital. The Federal Reserve Bank of Philadelphia estimates that in the year 2000 more than $1 trillion was invested in intangibles. Some of these intangibles were not being recognized on the Statement of Position.  This paper reviews the existing and recently promulgated accounting standards relating to intangibles.  Presently, Generally Accepted Accounting Principles allow for inconsistencies in the measurement and reporting of intangibles.  The objective of this review is to provide evidence and alternatives to help improve the measurement and recognition of intangible capital.  This will lead to the reporting of quality earnings that reflect the qualities of relevance and reliability. Full Article


 

A Geo-Spatial Macro-Economic Analysis of Climate Change in Latin America
S. Niggol Seo

Abstract

Capital Controls: Theory and Practice
Carlos F. Liard-Muriente

Abstract

From one perspective, capital controls limit the ability of international financiers and multinationals to curtail labor.  However, from the Neoclassical perspective, capital controls are just bad policies. They remove the discipline of the international market, which rewards countries that pursue pro-growth policies and penalizes those that do not.  Nevertheless, history shows that governments use controls regularly.  This paper presents both views, some historical facts regarding capital controls, and some theoretical constructions. Full Article

 

The (Un)beatable Incumbent
Bryan C. McCannon

Abstract
In Anthony Downs' work An Economic Theory of Democracy (1957) conditions are outlined under which a challenger always beats an incumbent by forming a coalition of minority groups. I present a formalization of this result and show that it holds in a rather general environment. I then consider two modifications: eliminating the leader-follower selection of platforms and restricting the set of platforms that can feasibly be chosen. Without the leader-follower requirement the incumbent wins with a high probability. If the set of feasible platforms is restricted the incumbent always wins the election. Thus, conditions are laid out where the incumbent is beatable and where the incumbent is unbeatable. Full Article

 

What Determines Distribution FDI?
Kara T. Boatman
 

Abstract

This paper examines the importance of MNE distribution subsidiaries to overall MNE activity and tests an agency theory of distribution FDI, in which a firm seeking to sell its product in a new foreign market faces the choice of investing in its own sales operation or contracting with a local sales agent.  This choice is first estimated as a function of a number of macroeconomic variables.  Results suggest that US MNEs are more likely to opt for distribution FDI the larger the foreign market and the greater the degree of economic freedom in the host country. Next, a supply-side variable is introduced, based on the hypothesis that cross-industry differences in sales effort may explain some of the industry variation in distribution FDI.  Results of a negative binomial regression analysis suggest that US MNEs operating in sectors with more complex selling processes are more likely to establish foreign distribution affiliates. Full Article


 

Greening the Business Economics Curriculum: A Paradigm for Environmental Stewardship in the 21st Century   Asayehgn Desta

Abstract

Economic growth depends upon the wealth of goods and services that natural resources provide. Yet, over the years, as corporations pursue hefty returns on their investment, they have been depleting the natural resources so vital for economic development. After the Rio Earth Summit of 1992, however, corporations that once viewed environmentalism as a threat to their survival all of a sudden realized sustainability as a means of gaining a competitive edge; it reduced costs and stimulated greater innovation. When the program of action for the Earth Summit was reviewed in 2002 at the World Summit on Sustainable Development (WSSD) in Johannesburg, South Africa, it was revealed that there was a wide gap between the rhetoric of 1992 and the reality observed in 2002. Full Article



Regional Economic Growth and Income Distribution in California

Abstract
This paper uses the Solow and Kuznets models to help explain the pattern and differences in economic growth and income distribution in four major regions within California. Using county-level data from 1969 to 1999, I estimated that statewide real per-capita personal income has diverged (become more unequal). However, after controlling for regional affects, statewide income divergence becomes statistically insignificant. On a continuum, the data suggest that on average, the Central, Northern, Southern and Coastal regions have the least to most well endowed composition of resources. The corresponding spatial division of labor across California’s regions results in income inequality. Regional development policies should be diversified and coordinated to insure long-term success and not be overly reliant on one best approach. Policies are more likely to fail if they deviate from the local context. Regional economic development depends more on a partnership of local policy-makers, industry, labor unions and community leaders who can work together towards common goals. Full Article


 

The Effect of United States Fiscal Policies on California's Poverty Levels

Abstract
Poverty and income inequality are problems in California, as well as the United States of America. Government spending, called fiscal policy, should be used to help alleviate these problems. Poverty and income inequality are examined to see if California is fairing better than the U.S. as a whole. This study finds California is not doing as well as the U.S. in the area of income inequality. By comparing California’s poverty to the United States levels, this study also finds that U.S. fiscal policy accounts for 69% of California’s poverty. This shows the impact which U.S. fiscal policies have on California. Full Article


 

Men, Women, and Perceptions of Work Environments, Organizational Commitment, and Turnover Intentions  Susan M. Stewart, Mark N. Bing, Melissa L. Gruys, Michael C. Helford
 

Abstract

As the participation rate of women in the workforce has increased, there has been an emphasis in organizational research on gender issues. One overlooked area pertains to how men and women perceive their work environments and how different climate dimensions affect dedication to organizations. This study utilized 553 (285 women, 268 men) employees to investigate gender differences in (1) affective and continuance commitment, (2) turnover intentions, (3) psychological climate perceptions (i.e., autonomy, cohesion, trust, pressure, support, recognition, fairness, innovation), as well as (4) the moderating influence of gender on the relationship between psychological climate and affective commitment, continuance commitment, and turnover intentions. We controlled for critical covariates of gender, including education, age, job tenure, job level, and organizational membership. Results show that female employees had higher levels of continuance commitment than men. There were no gender differences found for the climate dimensions when examining direct relationships. However, the task-oriented climate dimension of organizational support was a significant predictor of affective commitment and turnover intentions for men, whereas the relationship-oriented climate dimension of workplace recognition was a significant predictor of affective commitment and turnover intentions for women. Limitations, future research ideas, and the practical implications of these findings are provided. Full Article

Antecedents of Marital Happiness and Career Satisfaction: An Empirical Study of Dual-Career Managers    Sharon Jeffcoat Bartley, William Judge, Sharon Judg
 

Abstract

Work-family balance is seen as critical to life satisfaction. We study two elements of work-family balance—marital happiness and career satisfaction—for managers within dual-career families in the US, using predictive variables of negotiation skills and assistance provided from outside the couple. After controlling for age, gender, and number of children, negotiation skills were strongly predictive of marital happiness and career satisfaction. Assistance was positively related to career satisfaction, but largely unrelated to marital happiness. Based on these results, we offer practical ideas to assist managers successfully integrate work and family roles, and provide new insights for researchers to better understand work-family balance. Full Article

Dysfunctional Management Education and Declining Global Competitiveness of the United States Economy  Yoshi Tsurumi

Abstract
The Bush Administration has been aggravating the jobless GDP growth and  the widening income and social gaps between the top 3% of income brackets and the rest.  These problems are damaging the global competitiveness of the U.S. economy.  They have been shaped by flawed theories of business, economics, and law in the self-centered culture of market fundamentalism.  It produces business and public services mindset that embraces the robber baron culture and Social Darwinism of market and Christian fundamentalism.  It is destroying the manufacturing culture that had produced the “golden age” of the post-World War II era.  Fundamental remedies require alternative management theories and practices.  Such alternative business models can be gleaned from the comparisons of Detroit’s demises and the rising competitiveness of Toyota and Honda transplant firms in the U.S. Full Article

 

The Effects of Involvement on a Website: A Case Study of a Service Provider
Gary Kaskowitz

Abstract
This research looks at whether a local, service-based professional can successfully use the internet to recruit clients and increase the purchase intent of prospects. In particular, this study looked at whether an interactive personality or knowledge assessment tool would increase desire for sales information about a service more than a free information product would. In addition, the purchase intent was measured for these respondents. It was found that an interactive assessment created a higher proportion of prospects registering for an opt-in marketing campaign than did the free information product. It was also found that respondents who participated in an interactive survey expressed higher purchase intent and perceived pricing than did respondents who received a free e-book. These results suggest that interactive assessments may be a meaningful alternative for on-line marketers looking to increase opt-in and purchase intent. Full Article

Determining more successful candidates for Far-East projects: Case study of South Korea and Chin   Joo Y. Jung and Sibin Wu
 

Abstract

As the business world is increasingly becoming global in scope, more and more firms are entering international project environments. When a western company is providing goods or services to an eastern company, its managers would soon observe different management styles and motivations from their counterparts. While most western management elements coexist in the East, some elements are practiced with different values and motivations. Are there more critical management elements in the East? Are there more successful western managerial styles in the East? Based on management and project management theories, we first model what makes up the international project management. Based on interviews with executives who have worked on various large scale supplier contracts in the East, we argue why certain personal and managerial styles are valued differently using national culture theories. The result suggests that uncertainty avoidance, power distance and long-term orientation dimensions of culture have larger influences towards the Far East project management. More interestingly, soft management elements seem to matter more than hard elements in this unique project environment. Full Article


 

How to Stay Out of the Doghouse: How to Handle Involuntary Terminations Correctly
Laura L. Sullivan, Anthony F. Sullivan, Charles R. B. Stowe

Abstract

One of the least pleasant aspects of being in business or in a management position is the chore of terminating an employee.  For the employee, the experience may be comparable to a death in the family or to a divorce in terms of stress.  For the employer, the termination of an employee is fraught with potential liability and is an event for which there is little training offered in most business schools.  However, termination of employees due to economic setbacks, poor performance or worse employee impropriety or bad behavior is a reality that managers must be aware of.  This paper surveys the legal landscape of employee termination to provide present and future managers with an understanding of how to minimize their legal liability. Full Article


 

The paper presents results of a survey that investigated levels of awareness and usage of Operations Research (OR) / Management Science (MS) in a sample of manufacturing and service organizations in the United Arab Emirates (UAE). A sample of 200 individuals at different management levels was used and descriptive statistical analyses were employed. Results indicated that the majority of the respondents are aware of OR/MS and use it to some extent .Results also showed that the most common OR/MS techniques are: decision analysis, cost benefit analysis, computer simulation, financial modelling and risk analysis. The most common application areas identified are: project evaluation, sales analysis, manpower planning, accounting procedures, and stock control. Limitations and future research are also presented.
Full Article


 

An evaluation of the nature and purpose of psychological contact: Recommendations for appropriate HR Practices to ensure a healthy psychological contract is developed and maintained      Vlasios Sarantinos

Abstract