ISSN: 1813-0534






Volume 1 No 2 December 2005

Mediating Effect of Organizational Commitment on Job Satisfaction -Turnover Intentions Relationship

Dr. Sarminah Samad, Universiti Teknologi Mara, Malaysia


This study aimed at examining the impact of employees’ perception of their job satisfaction on turnover intentions. Consequently, the study examined the role of organizational commitment as a mediator in the job satisfaction-turnover relationship. 300 usable questionnaires were used in the statistical analysis. The results indicated that the hypothesized linkage between job satisfaction and organizational commitment as well as between organizational commitment and turnover intentions were fully supported. The results revealed that the mediating role of organizational commitment on job satisfaction-turnover intentions relationship was fully supported. Based on the implication of the research findings, several suggestions are put forward.

Loyalty to Area Managers: Implications for Job Satisfaction and Tenure among Pharmaceutical Salesforce

Dr. Liu, Chu-Mei
Department of International Business,Ching Yun University, Taiwan


This study is an attempt to apply the concept of loyalty on the employee performance among the sales force of the pharmaceutical industry in another Asian developing country to test its cross-cultural validity. The study focus on possible relationship between the pharmaceutical district managers’ (sales force) loyalty to their area managers (supervisors) and their job satisfaction and their tenure with the organization.

Results show that loyalty to area manager exerts positive influence on both district managers’ job satisfaction and intent to stay with the organization through the dimensions of dedication, effort, and commitment to supervisor. The dimensions of identification and internalization also showed positive influence on job satisfaction and intention to stay, but the association is not significant.

KEY WORDS: Sales force outcomes, loyalty, job satisfaction, Organizational commitment, Intent to stay

Corporate Strategy Under Deflation Economy
“Retail industry”

Dr. Akira Ishikawa ,Aoyama Gakuin University
Dr. Koichi Ishizuka, Xinhua Finance, Japan


During the years between 1992 and 2002, the Japanese economy’s average substantial rate of economic growth increased by a mere 1%. This is roughly one fourth of what was seen in the 1980’s resulting in this period being referred to as the “Lost Decade”. The main causes of this are thought to due to:

1. Continuous depreciation of prices

2. Delay of adjustment of the industrial structure

3. Unresolved bad loans

This “continuous depreciation of prices” is deflation itself, and causes the gap of demand and supply to keep emerging. Severe deflation has had serious influence on corporate strategy, and individual companies are developing various strategies to overcome the current condition.

In this paper, we analyze the corporate strategies being tested by companies under the prolonged deflation economy that Japan had hitherto never experienced and to see which strategy proves most effective in ensuring corporate survival.

Since retail industry is the most vulnerable to the effects of deflation economy, our research focuses on it and pose questions such as: what is deflation marketing, and discuss the frame work of retail industry strategies under deflation economy.

There are 347 companies that are currently listed on the Japanese stock market under the category of retail industry. This investigation focuses on the top 10% of the most successful among them, based on the mean ROE value of the past five years. While there are many sub-segments within retail industry (e.g. Convenience stores, food industry, department stores etc.), this investigation aims to analyze the industry as a whole, including all the components.

This thesis is comprised of sections dealing with Japan-US Deflation, trends in retail industry, method of analysis and its subjects, and analysis results.


From Customer Relationship Management to Value Network Management

Jackson C.Y. Hu,Department of Business Administration, Ling Tung University

Liu-Hsiang Hsu.Southwestern University of Finance and Economics,and Ling Tung University


Describing the nature of CRM (customer relationship management), this article explores the current challenges for relationship concepts posed for buyers and sellers in a value network context. Value networks can and, often, do interfere with customer relationships and thereby call for a broader range of concepts to analyze and understand relationship management and the influence of value networks on relationships in business- to-business markets. So, this article further explores and introduces a systematic approach for managing business networks. The VNM (value network management) approach includes three basic elements: (1) identifying a value network, (2) strategies for managing actors of the value network, and (3) developing and applying operational level methods for managing actors within the value network.

Keywords:Customer relationship management; CRM, Value networks; Value network management, VNM



Jusoh, Osman
Faculty of Business and Economic, Universiti Pendidikan Sultan Idris, Malaysia


Counseling itself is already a time-consuming and difficult process. Having to deal with diverse backgrounds in terms of gender, age, experience, ethnic beliefs and culture makes it even more difficult and complex. Some managers suggested that one should be culturally neutral in any exercise of handling diverse worker problems but how does one do that when one lives in a multicultural society? The purpose of this paper is to examine the benefits and challenges of multicultural workplace counseling. The discussion will begin with a brief description of multicultural workplace counseling in educational organizations. The next section of the paper will discuss the meaning of multicultural counseling to assist troubled employees in the workplace. Finally, the paper will consider the advantages and challenges of multicultural counseling. It is hoped that the understanding and practice of the diverse employee welfare can result in a range of pay-offs and increased productivity for the organization.

Brand Extension: Impact of Categorization and Leader-Partner Association Approach

Dr.Chen, Kuang-Jung, Department of International Business, Ching Yun University, Taiwan


Categorization theory is used to examine the effect of brand concept (functional, symbolic or experiential) on consumer ratings of brand extensions. Lately, however, conceptual frameworks for leveraging secondary brand associations have been advanced

Results of our experiments indicated that extensions with a functional concept were evaluated more favorably when the original brand denoted a functional rather than a symbolic or experiential concept. Symbolic and experiential concept extensions were evaluated more favorably when associated with a core brand that denoted a symbolic and experiential concept respectively. Results further indicated that with the application of brand association base approach, acceptance is more favorable as far as the selected products are concerned.

Key words: Brand extensions, Brand leadership, Consumer behavior

The Study of the Relationship Between Strategic Groups, Mobility Barriers, and Operating Performance:Empirical Analysis of Incubation Centers in Taiwan

Dr. Wen-Long Chang and Hung-Jing Liu, Shih Chien University, Taipei, Taiwan, R.O.C.Jasmine Yi-Hsuan Hsin, University of British Columbia, British Columbia, Canada


The paper applied the concept of strategic groups to study the relationship between strategic groups (SG), mobility barriers, and operating performance for Incubation centers in Taiwan. Grant’s (1991) resource dimensions and Porter’s (1980) mobility barrier dimensions were addressed to compare the operating performance between different strategic groups. The research has found that Incubation centers in Taiwan can be divided into three SG according to the similarity of their resource ownership and strategic thinking: SG with dominance over versatile resources, strategic group with dominance over professional resource, and SG with dominance over relation resource. All three had significant differences at service differentiation, cost disadvantages independent of scale, access to distribution channels, capital requirement and switching cost. SG with dominance over versatile resources had the highest mobility barriers; SG with dominance over relation resource had the lowest mobility barriers. Each SG evidentially showed distinct operating performance on percentage of stationed-in enterprises, growth rate of stationed-in enterprise and government subsidies. SG with higher mobility barriers tends to have better operating performance.

Cultural Diversity: An Effect to the Communication in the Classroom

Oranong Swasburi, Assistant Professor of faculty of Informatics,
Walailuk University ,Thailand
Sun Yonghong, Lecturer at Language Center, Wanli Zhejiang University, China


This research investigated Chinese and Thai teachers’ and students’ perceptions of the use of power in the classroom. Furthermore, the correlation of the use of power strategies and the efficiency of the students’ learning in the classroom were examined. The survey questionnaire is based on five potential bases of power identified by French and Raven (1986)—that is reward power, coercive power, referent power, legitimate power and expert power. The results revealed that Thai and Chinese students have differing perceptions of their teachers’ use of power in the classroom. With regard to the significant differences in the perceptions of teachers and students concerning the use of power in the classroom, the results indicated that Thai students perceived that Thai teachers employed reward power, coercive power, referent power, legitimate power and expert power while Chinese teachers exercised reward power, coercive power, referent power, legitimate power and expert power in the classroom. In terms of the correlation of the use of power strategies and the efficiency of the students’ learning in the classroom, the results showed that Thai teachers’ use of coercive power and Chinese teachers’ use of reward power and expert power were associated with the students’ cognitive domain. It further revealed that the use of reward power, legitimate power and expert power had a significant correlation with Thai students’ affective domain while the use of reward power and legitimate power were associated with Chinese students.

Key word: reward power, coercive power, legitimate power, referent power and expert power


Dr. Lieh-Ching Chang, Associate Professor of Hsuan Chuang University, Taiwan


In the 21st century, Mainland China has already become the largest market of commercial activities in the world. And China’s large population means that its consumer market will have boundless potential to exploit.

In a report issued in February 2005, the White House think tank—the Earth Policy Institute devoted to the research on global environment, points out that China has replaced the United States, the largest economic body in the world, to become the second-to-none consumer country in the world. China tops America in the consumption of 4 basic commodities, that is, grain, meat, coal, and iron and steel; it only lags behind in the consumption of oil.

To satisfy its consumption, China also imports large quantities of grain, soy bean, iron ore, aluminum, platinum, and other products. As is stated in the above report, all these imports will place China’s economy in the “center of the raw material economy of the world”.

However, in Taiwan due to the economic takeoff and the wealth accumulated by its people, its consumer market has long since stepped into the mature stage. Though people on both sides have the same culture and ancestry, there is a very marked difference in the consumption model between them. This is due in large part because the political, economic, educational, social and cultural environments are completely different. So this text will not only introduce the status of economic development and the consumer market trend across the Straits, but also use the famous consumer theory proposed by Bourdieu (1984) to analyze the difference in consumer culture across the Straits.


YuhShy Chuang and Shin Gang Jeng, International Business Department, Chin Yun University


Taiwan is facing increasing competitive pressures in the global market. Under these conditions, small business owners face many challenges. These challenges include gaining full status as a member of the World Trade Organization and increasing competition from China and other countries. In the face of these challenges, not much is known about the specific job stressors small business managers in international trade face, nor the extent of the job stress that they experience.

A total of 350 surveys were sent to small business managers/owners based in Taiwan and involved in international trade. One hundred three surveys were returned. The results suggest that reports of interpersonal conflicts at work (ICAWS) were significantly related to the Physical Symptoms (PSI) reported by small business manager/owners. The Physical Symptom scores were also significantly correlated with Quantity of Workload (QWI) scores and with Commitment to Change (CTCS) scores for these managers. No significant relationships were noted between the age of the small manager/owners and the growth levels of the organization, nor between men or women on the major variables examined. The findings suggest that the physical symptoms scale may be a major marker variable in small business settings. The descriptive data revealed a picture of the typical Taiwanese small business owner experiencing the most Physical Symptoms as being primarily male, 41 to 51 years of age, high school educated, having worked for 11 to 15 years, earning US$30,000 to US$40,000 and having four or more children. Ideas are also offered relating to the types of stressors experienced in such settings, possible stress management techniques and future research recommendations.

A Feasibility Analysis of Implementing the Closed Fishing Seasons on the North-East Coastal Fisheries in Taiwan: A Perspective of Fisheries Co-management

Chin-Chen Chen and Yao-Hsien Lee, Chung Hua University, Taiwan
Ching-Ta Chuang and Hao-Ting Liu, National Taiwan Ocean University, Taiwan


We investigate the feasibility of implementing the closed fishing seasons on the northeast coastal fisheries in Taiwan and discuss the potential impacts of fisheries co-management on the fishery sustainability. Our results indicate that (1) the fishermen recognize that a well-designed policy for fisheries management should consult with them, while they prefer the government authorities to play as supervisors; (2) the fishermen association can help to reach the fishermen’s consensus harmoniously, which is useful to carry out the fisheries co-management system;(3) the survey results show that associating the closed fishing seasons with the fisheries co-management system is more efficient than that of the closed fishing seasons only.

Keywords: Community-based; Co-management; Closed Fishing Seasons; Sustainability

Understanding Turnover and Commitment of Service Organization’s “Contact Person”

Wen-Kung Lin, Department of International Business, Vanung University


Literature points to the importance of interpersonal encounter in the delivery of services. This encounter is only one side of the coin. The other side is also and interpersonal encounter, this time with management. This makes the employee a person caught-in-the-middle. Being in the middle creates tension in the contact person. How does it affect his productivity and quality of service deliver? How about his plans in the future?

This article provides a view of the relationships among coping resources, role stressors, burnout tendencies, employee performance and job outcomes.

Results show that contact employee’s turnover tendencies is significantly influence by his/her commitment to stay with the job or the company, his level of burnout attributable to management and also from the customers, and level of support given by his boss as coping resource.

KEY WORDS: Service Employee Turnover

Effectiveness of “Mid-Night Sales” as a Sales Promotion: A Customer Perspective

Mei-Liang Chen, Department of Business Management, Chihlee Institute of Technology


There is a great debate on the value of sales promotions or on the antecedents of consumer response to them. This study concerned itself on the premise of consumer benefits of sales promotion within the context of the practice of third world mall having “mid-night sales” promotions.

The focus is the contribution of the sales promotion to the final purchase of the products that are the subject of this sales promotion endeavor.

Among the results, aggregate data analysis shows the dominance of the utilitarian benefits as influencers of purchase. On a disaggregated form of analysis, however, a different picture is generated – working group of respondents went for utilitarian benefits, while the students group went for hedonic benefits.

Key Words: Sales promotions, Mi-Night Sales


Value-at-Risk Analysis for Taiwan Stock Index Futures Market

Shang-Ming Liu, De Lin Institute of Technology
Shwu-Jane Shieh, National Cheng-Chi University


The VaR for the Taiwan stock index futures returns, which exhibit fat tails and ARCH effects, are calculated by employing FIGARCH (1, d, 1) model with two different innovation distributions: normal and Student-t. The empirical evidence is in favor of the Student-t FIGARCH to calculate the VaR based on the Kupiec failure rate tests. The results show that long memory FIGARCH model nicely captures the fat tail behavior of the stock index futures returns.


Taiwan Institute of Business Administration  @ 2008.All Rights Reserved



Journal Cover

ISSN: 1813-0534