ISSN: 1813-0534






Volume 4 No 1 April 2008

The Relationship of Strategic Thinking and Strategic Capabilities to Success in A Sample of Australia’s Top 500 ASX Companies

Alan Simon,,School of Business,University of Western Australia,Australia
Gerald LaCava (retired),College of Business and Economic,Boise State University Idaho,USA


Strategic thinking and strategic capabilities are crucial for company success. The aim of the study, which this paper reports, was to ascertain senior executives’ views on the relationship of strategic thinking and strategic capabilities to success in their organisations. A survey of a sample of executives in Australia’s top 500 companies listed on the Australian Stock Exchange was conducted using interviews and questionnaires. Strategic thinking is considered to be slightly less pervasive than deemed important for success which is measured by the key indicators of shareholder return, profit, share price, customer satisfaction and teamwork. Strategic capabilities considered pervasive in organisations are technical skills’ sets of staff and a service culture focusing on the customer. Executives in these profitable, blue chip companies argued that a customer focus and employee technical skills are the most critical strategic capabilities for long-term success.


Pitfalls and Challenges of the Case Study Method in the Asian Context: Reflections and Observations

Gilbert Tan, Ph.D. and Tan Swee Liang, Ph.D., Singapore Management University,Singapore


 The case study method as developed in the West demands that students participate actively in the learning process. Our paper discusses the feasibility of this approach in the Asian context. We begin with a literature review on the case study method, as well as, on the differences between Asian and Western students. Our literature review found some evidence to support the acceptance of the case study method by Asian students. Existing research shows that there are differences between Asian and Western students. For example, Asian students are more used to teacher-centered teaching styles and preferred learning to be more structured with detailed objectives and guidelines on project assignments. Relative to the Western students, many Asian students find it difficult to openly disagree with their peers in front of their teachers.

 We identify five pitfalls, which we believe can prevent the case study method from working the way it is intended to in the Asian context. These pitfalls include (1) unfamiliarity of the case study method, (2) cultural barriers, (3) lack of institutional support, (4) inappropriateness of Western cases, and, (5) resistance to the case study method. We share our observations of policies and infrastructure that our university has put in place, which we believe have dealt with some of these pitfalls to some extent. In particular, our university invests heavily in faculty training and infrastructure to promote the application of the case study method in class teaching. We conclude that the benefits of case study method learning, especially in a knowledge-based economy, cannot be ignored and put aside just because there are pitfalls to prevent it from working. 

Understanding the Supplier’s Role in New Product Development:  How to Achieve Competitive Advantage in the Supply Chain

Lance C. Gentry, Ph.D., Missouri University of Science and Technology,USA
Katrina P. Savitskie, Ph.D., The University of Memphis,USA


A review of the literature regarding the suppliers’ impact on the new product development (NPD) process is provided as a primer to those considering this imitative.  The primer shows how the benefits of integrating suppliers within a firm’s NPD design team can be categorized as better, cheaper, or faster.  The risks of such involvement and how a firm can increase its chances of a more successful collaboration are also discussed.

CPDA Based Fuzzy Time Series for Forecasting Stock Index

Hia Jong Teoha,b ,Ching-Hsue Chenga and Hsing-Hui Chub
aNational Yunlin University of Science and Technology, Taiwan
bLing Tung University, Taiwan


In fuzzy time series, the two critical factors that really affect the accuracy of forecasting are fuzzy relations and defuzzification.  However, the issues of how to determine effective lengths of linguistic intervals and the important of recurrent fuzzy relationships in defuzzification are rarely discussed in previous studies. Hence, an effectively length of linguistic intervals and the prominent recurrent fuzzy relationships can significantly improve the forecasting results. Therefore, this paper proposes a new model which concerns the distribution characteristics of observations in determining the effective length of the linguistic intervals and treats each fuzzy relationship differently based on its recurrences. This paper employs cumulative probability distribution approach (CPDA) to discrete the observations, defines more persuasive universe of discourse, and fuzzifies the observations precisely by using triangular fuzzy number, and assigns different weight to various fuzzy relationship in defuzzify and calculates forecast value. The effectiveness of the proposed model is verified by using TAIEX dataset, and compares proposed performance with Chen’s (1996) and Yu’s (2005) models.  The empirical results show that the proposed model outperforms the listing models with smaller root of mean square error (RMSE).

Dynamics of Market Variables on the Taiwan Stock Exchange

Dr. Khine Kyaw,
Plymouth Business School, University of Plymouth, UK 


This paper examines the dynamics of market liquidity, volatility and trading activity on the TSE. The market has a trading practice different from those of the NYSE or the LSE which are the most commonly studied markets in the literature. We find that liquidity of large firms improves over the trading days while that of medium-size firms deteriorate, but liquidity of small firms does not change throughout the days of the week. Market volatility is significantly higher on Mondays and it subsides substantially from Tuesdays onwards. Meanwhile, the market is significantly inactive on Mondays and becomes more active as trading days progress until Fridays when the activity dips slightly. The liquidity, volatility and trading activity dynamics observed on the Taiwan Stock Exchange is best explained by Foster and Viswanathan model.

An Electronic Spreadsheet to Calculate Multistage Growth Stock Price

 Dr. Weiping Liu
Department of Business Administration
Eastern Connecticut State University,USA


This paper presents an easy-to-use custom-made spreadsheet to calculate stock prices. This spreadsheet can not only be used in the regular zero-growth model, constant growth model and different growth model, but also be used in situations when a company has multistage of growth

Comparing the Forecasting Performance by Using Power Transformation in VAR and Bayesian VAR Models

Chi Hsiu Wang, Ching Yun University, Taiwan
Po Hsuan Hsu , Columbia University, U.S.A.
Yi Wei Chien, Ching Yun University, Taiwan


 This article is devoted to examine the performance of power transformation in VAR and Bayesian VAR (BVAR) forecasts, in comparison with log-transformation. The effect of power transformation in multivariate time series model forecasts is still untouched in the literature. We examined the U.S. macroeconomic data from 1960 to 1987 and the Taiwan’s technology industrial production from 1990 to 2000. Our results showed that the power transformation provides outperforming forecasts in both VAR and BVAR models. Moreover, the non-informative prior BAVR with power transformation is the best predictive model and is recommendable to forecasting practice.

Do a Firm’s Board Member Linkages Relate to IPO Firm Financial Performance?

Paul Beckman: San Francisco State University
Ping Hsiao, CFA®: San Francisco State University


Members of one firm’s Board of Directors may sit on other Boards of Directors as well.  Those individuals then form links between one board and another.  When considering a large set of corporations, those linked board members can create a large set of networked individual.

A project investigated the relationship between an IPO corporation’s board linkage structures and its financial outlook.  The most relevant linkage structure measure of a Board of Directors is the total number of other firms to which that firm is connected, which correlates positively with both a firm’s expected financial performance and the likelihood that the firm will be merged or acquired.

Inventory Manufacturing Losses

P. D.. Marshall, Ph.D. CPA, Professor, Perdue School of Business, Salisbury University,USA
J. J. DeRidder Ph.D., Professor, Perdue School of Business, Salisbury University,USA


 Many manufacturing firms experience a loss of inventory during production.  Production losses which fall within an expected range are considered normal, whereas, losses which exceed this range are considered abnormal.  In order to utilize production resources efficiently manufacturing firms must be able to identify, interpret and control normal and abnormal spoilage/shrinkage losses.

IT Workforce Analysis in the State of Kuwait: An Exploratory Study

 Hasan Abbas,Jafar Ali,Quantitative Methods and Information Systems Department, Kuwait University
 Imad Dashti,Economics Department, Kuwait University


 In this study, the concept of a technical workforce is introduced and discussed in the light of the current labor situation. We identify in this research such findings as the importance of demographic variables and how an employee thinks towards his/her employer. These issues are introduced in our project as evidence of their relative importance to the Information Technology (IT) workforce, as they have been totally disregarded by the current research stream. Mainly, our project unveils the attitudes and concerns of the technical workforce regarding job situations. We developed questionnaire as our instrument to conduct this research to distribute over a representative society of this sector as our study sample. The findings of this research prove major differences between groups of our technical workforce society.

Framework of an Entrepreneurial Region:
Exploring the Entrepreneurial Capacity of MSC Malaysia

 Izaidin Abdul Majid and Mohd. Taib Dora,Universiti Teknikal Malaysia Melaka,Kamariah Ismail ,Universiti Teknologi Malaysia


 Central to the process of designing a framework for regional economic development is usually the issue of potential capacity of the region to stimulate entrepreneurship activities. New paradigms of regional development which stresses on learning, flexibility, knowledge and networking were identified as the underlying driving force that facilitate the emergence and sustainability of entrepreneurial activities.  Economic growth, especially at the regional level and specifically in the formation of regional clusters of industrial innovation, is generally thought to have very close connections with entrepreneurship and new firm formation. In order to help spur entrepreneurial activities, supportive environment for business start-up or entrepreneurial regions should be designed and established.  Entrepreneurial regions are perceived to display characteristics that are consistent with economic prosperity and growth.  Some of these characteristics are high levels of business start-up, often of high quality ventures and an adaptable and flexible indigenous population of firms that are innovative and trade extensively outside the region as well as creating new economic opportunity within it.  On the human or entrepreneurs perspective the issue of culture is an interesting area to be explored.  The extent to which a culture of entrepreneurship exists and the extent to which individuals experience enterprise and observe entrepreneurial activity in others around them is an indicator of entrepreneurial potential within the region. This paper therefore, explores and highlights some of these issues pertaining to entrepreneurial region and human development in terms of their entrepreneurial culture.  This study reveals that the Multimedia Super Corridor Malaysia fulfills the entire underlying criterion (as proposed in the research framework) of an entrepreneurial region.

Technopreneurial Leadership Style among Bumiputera SMIs Technopreneurs in Melaka

 Dr. Raja Roslan Bin Raja Abd. Rahman
Prof. Dr. Abu Bakar Bin Mohd. Yusof
Prof. Madya Dr. Abu Bakar Bin Mohd. Diah

Tajuldin Bin Yusof
Institut Pengurusan Teknologi dan Keusahawanan
Universiti Teknikal Malaysia Melaka  


Technopreneurial leadership styles is important for theoretical and practical reasons because Bumiputera technopreneurial leaders were the individual that will need to lead small and medium industries (SMIs) in today’s innovative and dynamic market in Melaka.  The research had identified the certain personality traits, behaviors, competencies technopreneurial leaders. The analysis shown that Bumiputera technopreneurial leaders and entrepreneurial leaders’ monitoring operation and performance among the Bumiputera can use it’s to evaluate SMIs success and ventures success. Also practitioners of high-risk lending may be interested in methods of assessing entrepreneurial leadership that can be introduced into their risk calculus and potentially improve the likelihood of higher returns of their venture in investments. The conclusion, the research had provide insights for team building in executives’ teams of  SMIs , for example providing guidance in finding team members that can make unique contributions via their personality traits, behaviors, competencies and ways to monitor SMIs operation and performance. Suggestions of the research can be used as a guide to present and future SMIs technopreneurs regarding entrepreneurial leadership style that have to be practiced to become successful Bumiputera technopreneurial leader in Melaka.

Alliances in Management :A Methodological Perspective

Preeti Goyal, Faculty of Management Studies, University of Delhi,India


For knowledge creation through research, there needs to be a match between research methodology and the phenomenon being investigated.  In the context of alliances, the relationships of interest are often complex and multifaceted.  There appears to be substantial interest in the methods used for research in strategy.  This paper reviews the current state of methodological treatment of alliances in strategy and management disciplines.  Articles appearing on alliances over the 2001-2007 (both included) period in 5 strategy and 5 general management journal are analyzed and discussed in this paper.

The present study reveals similar trends as were noted by Venkatraman and Grant (1986).  That is, ‘while researchers use both quantitative and qualitative methods, there is still a tilt towards large sample and reliance on quantitatively-operationalized research designs.  Also, as noted by Shook et al (2003), more specialized techniques are being used for research and the use of basic techniques such as t -tests and other tests of mean differences is minimal.  Based on papers that have used qualitative research techniques, it appears that there are no studies with the interpretivist perspective.  Most studies are in the positivist and somewhere in between positivist and interpretivist area.  The epistemological outlook for the papers reviewed is that of objectivism and have a realist ontological approach.  While new research methods are emerging in management research in the area of alliances still uses the more traditional methods

India’s Manufacturing Sector: Sources of Competitiveness, Constraints, and Prospects

Ramachandran Natarajan, Tennessee Tech University, Cookeville, TN USA


India’s emergence as an economic power in the world raises some interesting questions concerning the competitiveness of its manufacturing sector. Despite its growth and importance to the economy, India’s manufacturing sector does not get the same attention as its information technology sector.  Its competitive strength in design and high value-added manufacturing presents a paradox. This paper examines the sources of competitiveness in the Indian manufacturing sector. Constraints on its growth are discussed. The prospects for further growth are assessed. The issues concerning the sustainability of the competitive advantage in the context of developments in the global economy are addressed.

Brand Emotion and Blogs

K.H. Padmanabhan, University of Michigan-Dearborn, USA 


Brand emotion is vital to branding.  It separates and burnishes brands.  This paper shows how Web logs or blogs can help in building and propagating brand emotions, and how adept they are in doing so.

lder Consumer’s Travel Behavior:A Case of Inter-City Travel in Malaysia

 Abdul Razak Kamaruddin, Associate Professor, Universiti Malaysia Terengganu,Malaysia 


Transportation is an essential part of the community infrastructure that individuals need to gain access to goods, services and social contact that support their day-to-day existence and quality of life. To date, however, there has been little research on the transportation needs and preferences of Malaysia’s older consumers. The purpose of this paper is to better understand the transportation needs of older adults and to explore the problems encountered by them in relation to public transport. The survey is particularly focused on inter-city travel concerns of adults age 55 and older, because it is known that personal mobility shrinks as individuals’ age. This information is essential to the development of marketing strategies that expand and improve transportation choices for older consumers and the accessibility that those choices provide.

The Construction of Development Model in Recreational Sport Industry

Tsai, Fen-Ching1 & Joe C. Kao2,
1Fooyin University
No.151, Jinxue Rd., Daliao Shiang, Kaohsiung County 831, Taiwan

2National Taiwan Sports Universtiy
No.250, Wenhua 1st Rd., Guishan Shiang, Taoyuan County 333, Taiwan


Recreational sport industry (RSI) was the very important industry globally. The core value of product convey in RSI was relevant with quality of life and national strengthen and image. RSI was an industry with wide sub-industry, strong inter-industry relations and high economic value. The purpose was to construct the development model of RSI. The model was constructed according to Porter’s Diamond Theory and the RSI theories- Kao (2002, 2004 & 2006, 2005). The new model was explained and inspected the rationality and feasibility by the relevant literature. The key factors and elements contained: ‘Chance’- income and free time increase; ‘Government’- government system, relevant policies, sport funds, input resource and sport education; ‘Supply Conditions’- performance, skills and facilities; ‘Demand Conditions’- health value and leisure demand, ‘Supportive Organizations’- NGOs, investment and sponsorship; ‘Core industries’- participant sports, spectator sports, events and facilities, and ‘Surrounding industries’- sport goods wholesale and retailers, sport media, sport agents, sport tourism, sport lottery and sport insurance. The relationship of each factors formed a new model figure. Form macro viewpoint of a country, this study explained the RSI development, understand the relationship among factors and elements, clear the import issues and help to make the prior strategies to implement RSI.

Examing the Influence of High Commitment Human Resources Practices(HRM )on Academics’ Organizational Commitment and Mediating  Effects  of Career Commitment and Perceived or Organizational Support,Trust,and  Procedural Justice

 Lew Tek Yew
Curtin University of Technology,Malaysia 


Much recent writing on Human Resource Management (HRM) has emphasized the desirability of a committed workforce and the central role of HRM practices in establishing and maintaining employee commitment.  However, little research has examined the psychological links of career commitment,  perceived organizational support, /trust/and procedural justice according to the social exchange theory which underlines the relationship of HRM practices on employee commitment, especially in the context of higher education in Malaysia.   Hence,  this review and conceptual  paper makes a timely contribution to the research literature by reviewing the relevant literature and recommending  propositions to guide future research in this area for faculty members at higher educational institutions in Sarawak, Malaysia.   Theoretically, it adopts the social exchange theory by  incorporating the mediating effects of  career commitment,  perceived organizational support, /trust/and procedural justice into the above relationship between high commitment human resource management practices (HRM) and employee commitment. 


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Journal Cover

ISSN: 1813-0534