ISSN: 1813-0534






Volume 3 No 1 April 2007

Free markets or state intervention – how can entrepreneurship be encouraged?

Carla Millar, University of Twente, School of Business, Public Administration and Technology
Chong Choi, Australian National University, National Graduate School of Management,Australia
Robert Carty*, London Metropolitan University, Department of Management and Professional Development ,UK


The purpose of this paper is to create a typology of three types of global innovation and technology districts. First, we distinguish market-driven technology districts such as Silicon Valley in the U.S. and Cambridge in the U.K. Second, state-driven technology districts targeting foreign multinational companies, such as Sophia Antipolis in France and Singapore in Asia. And third, state-driven technology districts which nurture local companies, such as the Hsinchu Science and Industrial Park in Taiwan. We believe that this typology provides a generic framework for innovation and technology districts, and suggest that the state and public policy will continue to play an important role in innovation and technology strategy in Asia in the 21st century.

Key Words: Innovation; global entrepreneurship; public policy; technology districts


Chinedu B. Ezirim, Dean, University of Port Harcourt, Port Harcourt, Nigeria.Michael I. Muoghalu, Professor, Pittsburg State University, Pittsburg, KS, USA. Emmanuel Elike, Professor, Alabama A & M University, Normal, AL, USA. Emmanuel Anoruo, Professor, Coppin State University, Baltimore, MD, USA.


This paper investigates and attempts to explain how and to what extent investment burden is affected by exchange rate conditions and external debt crises in Africa, epitomized by Nigeria, in light of the international oil price movements. The study specified four foreign investment models to determine the relationships between foreign investment income remittances and such predictors as exchange rates, external debt burden, and oil prices in the international markets. The paper estimated these models using two different methods, namely the OLS and exact maximum likelihood (EML) techniques. These methods were applied to time-series annual Nigerian data derived from 1970-2001. The results indicate that the foreign investment crisis or burden variable is found to associate positively and significantly with the external debt crisis variable, but negatively and significantly with exchange rate conditions and international oil prices. It does appear that as oil prices increase, and hence income from exports, the need for foreign investment income becomes reduced, and so would the associated burden.



Aisyah Binti Abdul Rahman
Noreha Halid*
Hawati Janor*
Universiti Kebangsaan Malaysia


The money multiplier theory demonstrates that reserve requirement could negatively affect money supply; however, there are studies which infer a limited role of reserve requirement as a monetary policy tool to control money supply. Thus, this paper investigates the long run relationship between reserve requirement and money supply in Malaysia by using ARDL co-integration analysis from year 1982 to 2004 as to confirm the theory. Our findings shows that there is no long run relationship; thus, supporting the arguments that reserve requirement does not play a significant role as a monetary policy tool in controlling the supply of money.


Likert Scaled Data: A Suggested Improvement in
Statistical Testing

Linda Martin and Jiajuan Liang
Department of Quantitative Analysis
College of Business,University of New Haven,U.S.A.


Questionnaire surveys are frequently used in gathering business information. The survey questions typically are constructed using a Likert scale. The resulting data is ordinal level. To compare two or more groups’ responses, parametric tests such as the t and F test are commonly used in marketing and management. However, the ordinal nature of the data often violates the assumptions of normality and equal variance necessary for the use of t or F tests. A proposed solution is to transform the ranked responses into ratios. Each ratio is constructed by dividing the number of responses in a particular category (1 to 5) by the sample size. The ratios can then be used to characterize the distribution of within a group. A comparison between the two or more groups can be reduced to testing the equality of the sets of ratios. In this paper we will propose a chi-square test for a comparison of ratios and illustrate its application in marketing research through a simulation and with an actual marketing data set. These examples illustrate that the chi-square test is superior to the traditional t-test.



CHOONG Y. LEE, Professor of Management, Pittsburg State University, USA


Recently total quality management (TQM) has attracted increasing interest throughout the Indian manufacturing industries and its programs have been widely implemented. Currently, there are few studies conducted about TQM implementation by small manufacturing firms in India, even though small firms are still dominant in many areas of manufacturing industries in India. This study analyzes survey results of Indian small manufacturing firms to investigate the present status of TQM and its development and perception among them.


Comprehensive Design for Information Systems with Integrated Systems Design Methodology

Dr Charles C. Willow
School of Business Administration, Monmouth University,USA


Systems Analysis and Design (SAD), by far, has been the choice of many practitioners for articulating a gamut of requirements and processes associated with Information Systems Design. In the midst of the Internet-driven real-time and dynamic information era, however, the focus of many information systems managers has shifted from traditional design of systems to making timely, qualitative decisions pertaining to the choice of the fittest information system for their organizations. Moreover, the demand for embedded systems has brought insurmountable time constraint on such management parameters as product turnaround or lead times to market.

This paper presents ‘Integrated Systems Design Methodology (ISDM)c, a unique systems design apparatus, which may be employed as an alternative to SAD in many instances. Unlike SAD, ISDM provides the managers with a balance of qualitative and quantitative aspects as variables for a wide range of information systems, both generic and customized. Two major critiques of SAD from the literature comprise: difficulty of quantification for the entire process and prohibitively long lead times for design completion.


Dr Doug Davies
University of Canberra, ACT,Australia


The literature states that if many HR functions are devolved to the line managers in organisations, those managers, due to the operational needs of their organisation, will relegate the HR aspect to a minor role. Many of the urgent HR functions will not be done or will be done on an ad hoc basis. This research paper, based on original research in the Electricity Generation industry in Australia, has found the contrary view. The line managers surveyed, both through interview and questionnaire, are aware of the importance of the HR function to the efficient running of an organisation, and tend to place great importance on that area of management. In fact, in a number of the interviews, many of the managers considered that they required more training in the area to more effectively perform their management functions, one of the major areas being HR. However, due to the nature of the industry, operational needs will take priority over the HR needs.

Keywords: Productivity, Partial productivity measure, Multifactor productivity, Total Productivity measure, Cost



Balbinder S. Deo, Assistant Professor, School of Business, UNBC, BC, CANADA.
Doug Strong, Professor, Department of Industrial Engineering, University of Manitoba, Manitoba, Canada


In this case study, it has been observed that functional area management within the organization tended to use partial productivity performance measures that suit to the specific requirements of the functional areas. The selection and use of functionally appropriate performance measure led to the use of different performance indicators for each functional area of the production process. However, the absence of a common performance measure for all the functional areas of the production process led functional executives to miss the effects of performance improvements in one functional area on the performance of the other and on the system of production as a whole.

Keywords: Productivity, Partial productivity measure, Multifactor productivity, Total Productivity measure, Cost


T. Russell Crook*College of Business Administration,Northern Arizona University
Samuel Y. Todd,Sport Management,Georgia Southern University
James G.Combs,College of Business, Florida State university,USA


Rising compensation levels for professional athletes and corporate executives has drawn widespread media attention. While a growing body of research has examined what determines individual athlete’s compensation, there is scant research investigating sport industry executive compensation. We use two competing perspectives – managerialist and agency theory – to shed light into sport industry executive compensation practices. Whereas managerialist theory asserts that executive pay is based on firm size, agency theory suggests that pay is linked to firm performance. Our results show that CEO pay among sport industry firms is determined by firm size, not performance, and that the positive relationship between pay and firm size increases as CEO tenure increases. More broadly, our findings suggest that there is a disconnect between CEO pay and performance in sport.

Keywords: CEO Compensation, Agency Theory, Managerialist Theory

The Strategy of Partnerships with Employers in Union Revitalization: The Case of Telstra Corporation in Australia

Chen-Yen Ku
Assistant Professor, Department of International Business,Vanung University, Taiwan


In a restructuring environment, a union may decide to cooperate with employers, because this may overcome the negative image which is that unions re connected with conflict and militancy. This in turn could diminish both employees and employer antagonism towards unions. This paper makes an argument that whether the CPSU and the CEPU (two major unions at Telstra) increased their power to protect members’ interest during privatization, when they adopted a cooperative tactic with employers.



Dr. Raja Roslan Raja Abd. Rahman,Universiti Teknikal Malaysia Melaka


The Malaysia government is working hard to develop this nation to an industrial country based on vision 2020. To achieve vision 2020, human resource is the main key which need attention from all parties be it the government sector or the private sector. The subject that needs to be taken into consideration by a manager in facing vision 2020 is the organizational commitment and rewards on increasing technical industry employee’s performance. The purpose of a study were to identify the components of organizational commitment and rewards, to determine the predictors of organizational commitment and rewards, to understand the level of organizational commitment of the workers, and to understand relationship between organizational commitment and rewards on increasing the technical industry employees performance in Malacca, Malaysia. The methodology of research used on quantitative method and Likert five scale questionnaires as the research instrument. The respondent consists of 120 workers from several technical industry employees in Malacca, Malaysia. The findings was shown that 72 (60%) of the respondents posses a high level of organizational commitment, where else 48 (40%) of the respondents posses an average level of organizational commitment. There are significant relationships between commitment towards an organization and reward factor on extrinsic and intrinsic. The study also reveals that the reward factors and organizational commitment have a low level of positive relationship. Based on the findings, the levels of commitment in the technical industry organizations are at an average level. As a result, the extrinsic reward and intrinsic reward are able to raise the level of commitment towards organization amongst the technical industry employee’s workers of Malacca, Malaysia. In conclusion, the overall organizational commitment of the technical industry employee’s workers of Malacca, Malaysia toward their organization is high. The extrinsic and intrinsic reward dimension seems to balance the relationship with every level of organizational commitment. It is necessary for the technical industry organization to refer once again to its vision, mission, objective and goals in line with human development in the area of the spiritual and physical, and also in the area of a intrinsic and extrinsic values.

Keywords: Relationship, Organizational Commitment, Rewards, Technical Industry Employees, Performance and Malacca, Malaysia

A Preliminary Study on Correlation between Accounting Practitioners’ Choice of Profession and their Learning Experiences

Chu-Hsing Yang, Ph.D. Candidate,Chih-Yu Wang, Ph.D. Candidate,
Graduate Institute of International Business Administration,Chinese Culture University, Taiwan


Accounting practitioners are the most basic required profession in the business community. With a longtime image as bean counters, accounting professions have not enjoyed the same level of status as many other professions, such as doctors, lawyers and architects, etc. The stereotype of accounting professional is never preferential in attracting young kids in their career choices. Although business major consists of the largest crowd of students in vocational and higher education today, many business students have found accounting to be a difficult subject, explaining the decreasing numbers of students choosing accounting major. While many educators in Taiwan have sensed an eventual decaying of college student’s general quality, quality of the new recruits into the accounting profession has raised concern for the future of the profession in general. Thus, the study aims to explore the correlation between accounting practitioners’ choice of profession and their learning experience. Tests will be conducted on accounting practitioners in CPA firms to explore the links between the professional’s career choice and their past learning experience. Therefore, suggestions will be provided to instructors as well as accounting professionals for the future class design in attracting talented individuals to choose accounting as their profession.

Key words: accounting practitioners, career choice, learning experience



Dr. Sarminah Samad,Faculty of Business Management, Universiti Teknologi Mara, Malaysia


The purpose of this paper is to examine the relationship between personality traits and demographic variables with employee empowerment. Consequently this study determined the influence of personality traits and demographic variables on employee empowerment among Customer Marketing Executives of telecommunication firms in Malaysia. The study revealed that openness and proactive personality were related significantly with employee empowerment. Regression analysis on a sample of 482 respondents also indicated that both proactive and openness personality had a positive effect on employee empowerment. In terms of demographic variables, age, income, job and organization tenure were significantly related with employee empowerment. Further, age, income, job and organization tenure were found to have a positive influence on employee empowerment. All the six variables contributed 55.3 percent variance in employee empowerment. Based on the findings, implications for managerial practice and future research are discussed.

Impact on Small Retailers and Entreprenuers on the Departmental Store Development:Case Study in Malaysia

Azhar Hj. Ahmad, Ishak Hj. Abd Rahman,Sallehuddin Mohd Nor,Jumaat Abd Moen,Che Aniza Che Wel,Ahmad Raflis Che Omar,
Lecturer, School of Business Management,Faculty of Business and Economics, National University of Malaysia


The presence of bigger retail outlets have brought new business opportunities and moved the retailing industry and Malaysian economy to greater heights. Since these bigger outlets affects the existing retailers, a study was undertaken to assess the potential impact of the proposed development of departmental stores on existing small business retailers in Bandar Bukit Tinggi, Selangor and Bandar Perda, Pulau Pinang. The assessment was based primarily on the perceptions and expressed opinions of the sampled retailers in the catchments area of the proposed development of the departmental stores. The objectives of the study were to: 1) elaborate on the characteristics of the retailers in the catchments area and 2) assess the perceptions of the small retailers regarding their performance, future outlook, and actions needed amid the development of the departmental store. From the analysis, there would be short-term adverse impact on most retail outlets and the degree of the impact is determined by the type of retail business. The study also raised several recommendations for the existing small retailers to employ in order to stay competitive.

The Effect of clothing and appearance and consumer age in the retail apparel buying process in India

Dr. Avinash Kapoor [Management Development Institute (MDI), Gurgaon] ,India
Dr. Chinmaya Kulshrestha [Management Development Institute (MDI), Gurgaon],India

In the retail stores environment, the sales executive is a strong factor of influence on consumers because store image and the ability to attract customers & build loyalty can be greatly affected by the sales executive’s performance and personality characteristics such as his/her attentiveness, expertise, friendliness, and appearance. As the sales executives represent retailers to customers and work on behalf of retailers for the transaction or exchange function between retailers and consumers. The sales executive tells the customers about the products and services available to them in the retail store and thus helps them decide which products and services are the best to meet their needs, wants and expectations.

The manner one dresses up, the type of clothes one wears, & the manner one interacts with others is an important factor in everyday human lives as it conveys mood, identity, attitude and values. Thus clothing and appearance also act as a form of communication.

This paper highlights a conceptual framework to study clothing and appearance as a form of communication. Whenever there are interactions among individuals some symbolic interaction is also involved (i.e., interpretations of clothing symbols between a wearer and a perceiver). The framework also reflects the importance of clothing cues in perceptual and communicative processes.

The clothing type of the sales executive could also act as an influential nonverbal communication cue that interacts with consumers in sales. The sales executive’s appearance and his appropriate clothing may be an important factor in influencing consumer satisfaction with sales executive’s performance. A consumer may fully anticipate buying a particular brand of product, but this purchase intention may not be fulfilled if the appearance of the sales executive is not appropriate. Conversely, a consumer may lack interest in buying a product, but because of the influence of clothing type of the sales executive, the consumer may purchase the product.

“There are some retail stores who hire popular young people as sales executives and have them wear the products sold in the store” (Engel et al., 1995). However, no clear relationship between the clothing type of the sales executive and consumer behavior has been reported in the literature.

Teenagers give more importance on appearance than any other age group and spend most of their pocket money on personal consumption. They are actually the trendsetters who extend fashion and culture for the population at large.

Teenagers and elderly consumers have different attitudes, values, and behavior. They have different choices in products, services, activities, and media. The teenager consumers and elderly consumers are significantly different in seeking information. Teenager consumers use mostly consumer-dominated sources, such as social gatherings and friends. Elderly consumers are more likely to use marketer-dominated sources, such as newspapers and radio. Age differences are expected to influence consumer perception. Consumers in different age groups may have their own unique perceptions and preferences.




At first glance, airline strategic alliances seemed like a “can’t lose” proposition to either airlines or to their passengers, a win-win situation for both. The airlines would gain efficiencies with code sharing, and benefit financially from the resultant derived operational economies of scale and economies of scope. Passengers would find it easier to accumulate, bank, or redeem their frequent flyer miles, experience better package pricing, and avail themselves to distant destinations with fewer airline changes and stopovers. As part of a broader empirical study of international service quality on the transatlantic corridor between the United States and Europe (understood to be presently as the heaviest and most competitive route globally), 623 passengers flying on 36 scheduled airline flights were queried as to the importance of airline alliance benefits for international travelers. This study surveys passenger attitudes toward alliances, and attempts to answer the question, “Are alliances working for them, of benefits to them?”

Loyalty on E-Banking

Dr. Po-Wei Pan, Assistant Professor, Huang Chuang University

I. Research Motive and Objective

Since the first pure play Internet-based bank, Security First Network Bank (SFNB), was established and began operations in October 1995, it provided an experience that was very different from the traditional banking experience. Instead of waiting in long lines to be served by a teller at a service desk, there were no tellers, no service desks, and 24 hour service, the concept of Internet banking attracted the attention of global financial community. It also had a large impact on the traditional business models of banks and their retail network (Lin, Yuting, 2000). Since Taiwan’s Ministry of Finance approved in February 2000 the establishment of Financial Information Service Co. to build a shared Internet based system for use by financial institutions, banks had started to aggressively expand into Internet banking services since March 2000. As of June 2002, there were 45 financial institutions that provided Internet banking service (Banker’s Association, August 2002). According to the results of the “ARO Network Measurement Research” that was conducted in July 2003 by InsightXplorer Limited, there are 3.82 million people that don’t make repeated visits to Internet banks.

The 21st century is a customer oriented century. Attracting new customers and retaining exiting customers are strategies taken by the vast majority of businesses. With the competitive environment, the banking industry had already become a buyer’s market. Therefore, the growth and survival of banks is dependent on whether the financial services offered meet the need of customers. The most competitive weapon for a bank is its quality of service (Stafford, 1996). Service quality is the most important distinguishing characteristic among banks (Morrall & Katherine, 1994). From the perspective of the receiver of services, the increase in service quality results in higher satisfaction of the receiver of services, resulting in future spending (Anderson, 1994). Therefore, repeated rendering of services by users has become the source of profits (Johnson, 1992). As the profits of a business grow, it is only naturally the business’s overall effectiveness has increased, enough to reward users, and increase the quality of service. Therefore, the importance of the service of quality (as in Diagram 1-1) can show increased visibility of financial information. As customer loyal towards banks decrease, the quality of services has become important indicators within the competitive banking industry.


A Study of The Effect of Customer’s Satisfaction and Customer’s Competitive Status of Student Recruitment for the Four-Year Business Programs in Taiwan’s Higher Technological and Vocational Education Institutions

Dr. Yeh-Hsun Fey, Ling Tung University, Taiwan
Yeh-Jui Fey, Southwestern University of Finance and Economics, and Department of Insurance, Ling Tung University, Taiwan


This study explores the competitive status of student recruitment for Taiwan’s four-year programs of business in higher technological and vocational institutions. Quantitative research was applied for this study. In this study, 429 programs from 73 HTVE institutions, which participated in the section of business of joint placement for entrance to four-year institutions of technology and two-year junior colleges in 2005. The data analyzed for this study was collected from the joint recruitment committee. In addition to descriptive statistics, the inferential statistics for this study include Pearson product-moment correlation, independent t-test, and one-way ANOVA. The result could be useful to technological universities and colleges, joint recruitment committee, and the education authorities for reference.


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ISSN: 1813-0534