ISSN: 1813-0534






Volume 8 No 1 August edition 2012

1. Achieving Competitive Advantage by Balancing Different Stakeholder Demands

Dr Minyu Wu

School of Business, Curtin University, Sarawak Campus, Sarawak, Malaysia

Smita Paul

School of Management, Massey University, Albany Campus, Auckland, New Zealand


This study examines how managers balance stakeholder demands. A broad concept of balancing stakeholder demands comprised of two components is proposed. The first refers to what to balance and includes financial value, stakeholder interests and stakeholder power. The second refers to how to balance stakeholder demands and includes the methods of accommodation, alignment and trade-off. We argue that balancing multiple stakeholder demands helps a firm develop an effective portfolio of

resources that can be utilised to support successful organisational competitive strategy. The broad concept of balancing stakeholder demands offers different approaches for satisfying different or even conflicting stakeholder demands. It rejects a one-size-fits-all suggestion for stakeholder management and helps firms to manage demanding problems in a complex and changing environment.

Key words: stakeholder theory and analysis, corporate social responsibility, competitive advantage,

business level strategy

2. Acquiring Firms Stock Holder Wealth Effects of Selected Domestic and Cross-Border Takeover Bids in China

Stamatios Tsigos, Yunfei Cheng, Joseph Sagaram, and Jayasinghe Wickramanayake

Department of Accounting and Finance, Monash University



This study investigates the stock holder wealth effects of mergers and acquisitions of Chinese acquirers. Specifically, we examine the market reaction to 109 Chinese mergers and acquisitions (M&A) deals with a value of at least US$1 million. It is found that in a 301-day event window centred on announcement day, cumulative average abnormal returns are statistically significant for Chinese acquirers. Another finding is that domestic Chinese acquirers generate higher returns through cross-border M&As. Low market to book value ratio (MTBV) acquirers seem to out-perform high MTBV glamour acquirers. There is strong evidence that the method of payment and tender offers also have a substantial impact on equity returns.

3. The Effect of Firm Performance on Modeling Earnings Management Behaviour

Lan Sun, University of New England, Australia


Since the middle 1980s, discretionary accruals have become the primarily focus in modeling earnings management.While the Jones and Modified Jones models attempt to control for contemporaneous performance, empirical assessments of these models suggest that estimated discretionary accruals are significantly influenced by a firm’s contemporaneous and past performance(Kothari, 2005). In this paper, we formally derived the relation between firm performance and accruals. We show that the evolvement of different models and demonstrate why firm performance should be controlled when estimating discretionary accruals. Using a sample of ASX listed firms with 5,947 firm-year observations from the period of 1999 to 2006, we estimate

discretionary accruals based on Jones Model, Modified Jones Model, Cash Flow Modified Jones Model and Performance Adjusted Technique. The results show that Performance Adjusted Technique tends to adjust the effect of performance on estimated discretionary accruals by removing the measurement in discretionary accruals that correlated with earnings performance and therefore

improve the reliability of further detection of earnings management

4. Sustainability Reporting and Stakeholder Engagement: Evidence from A Local Government Context

Nick Sciulli, Centre for Tourism and Services Research.School of Accounting, Faculty of Business and Law, Victoria University, Melbourne, Victoria Australia.


Greater scrutiny of the activities of government agencies and a drive to involve stakeholders in the consultation process is an area that requires investigation. Governments worldwide have come to understand that it is no longer feasible to simply allow public sector managers to make planning and resourcing decisions on their own, but that it may be appropriate, if not, beneficial and necessary for

the government agency to involve external stakeholders early on in the strategic planning of its operations. Consulting stakeholders will make the government agency more accountable for its actions. In the context of sustainability management and reporting government agencies have the opportunity to allow their community to become an integral part of their planning and outcomes. The objective, therefore, of this report is to investigate the stakeholder engagement vehicles made available at four local councils in the state of Victoria, Australia. This is undertaken to determine if this process of consultation is simply a token gesture on behalf of these councils, or a genuine attempt to become more accountable and empower the stakeholders in the decision making processes of local government. The findings suggest that whilst local councils are expending significant resources in developing and communicating sustainability information, stakeholder engagement strategies need to be further developed and enhanced.

5. An Overview of Corporate Accounting Malfeasance

Liz Washington Arnold, Peter Harris.

The Citadel, New York Institute of Technology USA.


Corporate malfeasance has increased significantly since the mid-1990s resulting in a significant increase in the number of previously issued financial statements having to be restated. Congress’ passage of the Sarbanes-Oxley Act of 2002 (SOX) was a direct response to the accounting scandals and an attempt to reform the financial/business reporting process. This paper provides an overview of corporate accounting malfeasance, the state of corporate accounting malfeasance, reasons for its

occurrence, comprehensive listings of the types of corporate accounting malfeasance activities, as well as its legislative results. The paper also theorizes that corporate accounting malfeasance is here to stay and is an inherent part of the US and any worldwide financial system, regardless of the policies implemented by the SEC, other regulatory bodies or leading groups of the accounting profession

6. Exploring Australias Global Trade Potential: A Gravity Approach with Panel Data

Dr Mohammad Mafizur Rahman

School of Accounting, Economics and Finance, Faculty of Business and Law

University of Southern Queensland



This paper investigates Australia’s global trade potential taking data of Australia and its 57 trading partners for the period of 1972-2006. Gravity model approach and panel data estimation techniques have been used. The paper first estimates the augmented gravity models of trade. The estimated coefficients are then used to predict Australia’s trade potential. Our results reveal that Australia’s bilateral trade is affected positively by income, openness of trading partners, common language and free trade agreement, and negatively by the per capita income differential and distance between Australia and trading partners. The results indicate Australia has notable trade potential with

Mexico, Argentina, Uruguay, Austria, Peru, India, the Philippines, Brazil, Chile, the USA, New Zealand, Greece, Japan, Turkey, Nepal, Kenya, Spain, Hungary, Brunei, Hong Kong, South Africa, Pakistan and Canada.

7. Unbalanced International Trade Flows and Their Implication: An Extentensive Review

Samuel Belicka,Victoria University, Melbourne,Australia

Ali Salman Saleh,Swinburne University of Technology,Victoria, Australia


The relationship between international trade flows and key macroeconomic variables such as economic growth, Export (X), and Import (M), among others is one of the most widely debated areas among economists and policy makers around the globe. The aim of this paper is to review the extensive literature in this area, focusing on both the theoretical debate and empirical evidence. This review is important in order to learn from past experience and to derive major conclusions which can be beneficial in macroeconomic debates. In addition, this review could also assist policy makers in

formulating the right economic policies to tackle problems such as the high Trade Deficit (TD) and high debt levels associated with international trade flows. The majority of these studies used X, M, Gross Domestic Product (GDP) and related relative competitiveness variables, such as relative prices to examine the economic prosperities various countries’ overtime. The key outcomes from these studies showed that relatively open economies countries seem to achieve higher economic prosperity

than the less open economies. However, unbalanced trade, in particular the TD and subsequent rising debt levels with the Rest of the World (RoW), lead to undesirable macroeconomic consequences. In relation to Australia, the bulk of the empirical studies show that Australia has experienced a persistent TD for the past 30 years, with increasing TD as a percentage of the GDP. The key outcomes from empirical studies presented in this paper show that Australia’s growing liabilities with the RoW are

intended predominantly for other than investment purposes, which may perhaps weaken the economic prosperity in Australia in the future. In addition, various policy implications which might arise from the debates are also discussed in the paper.

Keywords: Trade flows, GDP, survey, implication, Australia

8. Connected But Not Alike:Cross-Cultural Comparison of Generation Y in China and South Africa

Prof. Nandani Lynton, PhD, China Europe International Business School (China)

Prof. Kurt April, PhD, University of Cape Town (South Africa) & Ashridge (UK)


This study examines the values of Generation Y in China and South Africa to test the widespread assumption that young people are developing a common global youth culture and which organizations can respond with global programs. This convergence perspective posits that economics drives culture and that increasing levels of material well-being will lead to the spread of international, Western-style behaviour and values. The study analyzes original research data from surveys of 272 Gen Y individuals in China and South Africa to trace their similarities and differences, taking into account

their experience of macro-level change and increased global connectedness. The results show continued cultural divergence and highlight the different cultural meaning given to superficially similar values statements. This implies that global organizations must localize HR programs to be effective.

Keywords: cultural values; comparative HRM; cross-cultural; generation Y

9. The Internationalization of Small Entrepreneurial Firms: A Conceptual Framework

Falih M. Alsaaty, PhD

College of Business, Bowie State University, Maryland,USA

Hany H. Makhlouf, PhD

College of Business, University of the District of Columbia, Washington, D.C.,USA


The purpose of this paper is to introduce a conceptual framework to explain the factors leading to the internationalization of small entrepreneurial firms. The paper postulates that firms’ internationalization is a function of internal (originating) and external (facilitating) forces. The framework draws upon the methodology of competitive advantage analysis of the resource-based view as well as the

industrial organization view. It is emphasized in the literature that the field of international entrepreneurship is at an early stage of development and, as a result, lacks rigorous theoretical foundation. This paper is intended to facilitate the development of a comprehensive theory of the field by identifying and classifying key factors that enable small firms to ‘go global’ at an early (or later) stage of their

inception. The model presented here can also be used as a guide by would-be entrepreneurs to craft their firms’ internationalization strategies.

10. Core Competencies of Taiwanese Furniture Manufacturing Companies: A Manager Guide to On-Shoring

Cleamon Moorer, Brennan School of Business, Dominican University, USA


The purpose of this paper is to describe the core competencies of the Taiwan’s furniture manufacturing industry. Over the last 20 years, a large percentage of Taiwan’s furniture manufacturing companies have relocated to Mainland China, Vietnam, Indonesia, and the Philippines. Several firms have remained in Taiwan, but have opted to outsource manufacturing in other countries. The idea of outsourcing and captive sourcing are common practices in the context of manufacturing. This paper focuses on the core competencies of furniture manufacturing companies that have

remained in Taiwan; and that have formed industrial clusters characterized by pursuing niche product segments, fashion, innovation, value chain-orientation, and quality. This paper attempts to argue that on-shoring and inter-organizational collaboration will continue to be imperative for the stability, survival, and growth of Taiwan’s furniture manufacturing industry in the 21st century. Lastly, the paper proposes that the attributes of Taiwan’s furniture manufacturing industry can be to be used to identify best practices for various labor-intensive industries in other advanced nations.

Keywords: furniture manufacturing; core competencies; on-shoring

11. Benefits Analysis of Live Customer Support Chat in E-Commerce

Websites: Dimensions of a New Success Model for Live Customer Support Chat

Ahmed Elmorshidy, Ph.D.

Claremont Graduate University, USA / Gulf University for Science & Technology, Kuwait


This study investigates an important newly implemented type of customer support in major ecommerce web sites, which is the live service chat feature. The study provides a benefit analysis of live customer support chat. It further reviews solid theoretical frameworks of service quality including the Integrated Gaps Model of Service Quality and the service quality model. The study introduced new dimensions of success for E-service quality (system quality, system reliability, system availability, information quality, consistency of service quality and online customer feedback). The study also

provided a new theoretical framework for e-service quality success (particularly live customer service chat), which provides a solid ground for further research in this new and critical area of customer support.

12. Customer Value Proposition and Its Linkage in Marketing Strategy

Dr. Nagasimha Balakrishna Kanagal,Indian Institute of Management Bangalore,India


Customer value propositioning is basic to marketing strategy along with value delivery. The constructs of customer value, monetary value and customer value proposition (CVP) is examined. The linkages of customer value proposition are next examined that includes positioning, brand identity, core competencies / competitive advantages, firm value proposition, vision and objectives and supply chains. Issues in formulating a customer value proposition for a brand is laid out that include empirical study of the customer value proposition concepts. The paper concludes with the implication of customer value propositions in marketing strategies of brands.

13. Trends in Taiwanese Travellers Satisfaction: A Case of The Australian Tourists Market

Binta Abubakar PhD,,United Arab Emirate University,United Arab Emirate


This paper was exploratory in nature and the research focused on Taiwanese visitors experience in Australia, their satisfaction with the destination, the process of selection and post experience evaluation. The study also analyses tourist recommending behavior. The study was conducted using survey questionnaire at a specific location in Australia, tourist were asked to evaluate their experience with the destination and the overall process of their satisfaction. The preliminary finding indicates that

there is a direct relationship to Taiwanese traveller satisfaction, the destination selection and whether they will recommend family and friends to revisit.

Keywords:Overall Satisfaction, Repeat Visit, Taiwanese Tourist, Australia as Destination, Recommendation

14. Improving Service Quality: A Case Study with Reference to Thenmala

Ecotourism Destination


1 Research Scholar SASTRA University, Thanjavur, Faculty-Department of Business Administration, MA College, Kothamangalam, Kerala, India. 2 External Guide, SASTRA University Thanjavoor, Reader &Research guide in Commerce & Management, Dept of Commerce, St. Dominics College, Kanjirapally.India 3 Internal Guide, Dept of Management Studies, SASTRA University, Thanjavur,India


There are thirty tourist guides in Thenmala eco-tourism destination. Here, the researcher had implemented a series of steps to improve their internal motivation, based on the framework of Organisation Development (OD). At the beginning Human Resource Committee (HRC) has been formed in order to build a collaborative culture with the top management. Human dimensions of Total Quality Management (TQM) have been explored in order to improve the skill levels of Human Resource Committee (HRC). Paretto Chart and Fish Bone Diagram were used to improve the skill levels of HRC. Motivational Performance Scores of local tourist guides were low. So Quality Circles (QC) with emphasis on case study methods were used in order to improve the same. Once the Motivational Performance Scores got improved, they were exposed to human engineering experiment. Eight tourists and six tourist guides were segregated for human engineering experiment on two consecutive days. Paired t-test has been done in order to test the satisfaction levels of tourists. The null

hypothesis does not stand. That is the level of satisfaction of the tourists after the human engineering is greater. We conclude that human engineering has improved the level of customer satisfaction at 5% level of significance. After QWL projects tourist guides gave higher rating as regards with the HR policies of Thenmala

KeyWords: Total Quality Management, Quality Circles, Motivational Performance Scores, Human Resource Committee, Organisation Development, Paretto Chart , Fish Bone Diagram and Tourist Relations Management (TRM).

15. Wastah in The Kuwaiti Administration

Yousef M. AlMutairi, Mohammad Qasem Al-Qarioti

Kuwait University,Kuwait


This study is an exploratory study of wastah in Kuwait administration, (a synonym of favoritism in the English language) is a widespread phenomenon. The study is based on a questionnaire which was distributed to a sample of (500) participants including government officials, private sector employees, university students, ordinary people who go to government offices and private businesses for having some procedures done in order to get goods/services. Data were collected by two trained research assistants, during December 2010, and January 2011. The study reveals that wastah is deeprooted, wide spreading, increasing rather than decreasing phenomenon which permeates all parts of society regardless of gender, education, and nationality. In a list of the main ten reasons for practicing wastah, tribalism is the first and wrong understanding of democracy is the tenth reason for practicing wastah. Negative impacts and ways to combat wastah were discussed and few recommendations and

conclusions were drawn.

KeyWords: wastah, favoritism, Kuwait, public service, corruption.

16.The Development of Taiwan Environmental Policies in Foodservice Industry over The Last Decade

Dr. Su-Ling Wu, Department of Leisure Management, Yu Da University,Taiwan

Wei-Fang Chen(corresponding author), Department of Tourism and Leisure Management, Ling Tung University, Taiwan


Previous studies in Taiwan and the USA have both suggested that a great proportion of businesses were confused about environmental policy. The review of the past and current development of environmental policies and regulation in Taiwan food service industry has been covered in detail. In this study, we systematically investigate how the environmental movement has affected the formation of environmental policies and regulation in Taiwan. Through the review of environmental policies, conflicts were found and discussed with suggestions for the policy maker in terms of carrying out the environmental policies with more efficient method. It is recommended that the Taiwan EPA should work on establishing standards which can be integrated into the Food Safety Control System. The restaurant can be approved by a government authority, such as the Health Department, with the most understanding of the daily operation of the food service industry.

KeywordsEnvironmental policies, food service industry, Taiwan


Taiwan Institute of Business Administration  @ 2008.All Rights Reserved


Journal Cover

ISSN: 1813-0534