IJSM, Volume 12, Number 3, 2012

ISSN: 1555-2411
ABSTRACTS

1. MODERN COST MANAGEMENT STRATEGY IMPLEMENTATION AND FIRM PERFORMANCE:EVIDENCE FROM CHEMICAL MANUFACTURING BUSINESSES IN THAILAND
Kanoknate Prempree, Mahasarakham Business School, Mahasarakham University, Thailand
Phapruke Ussahawanitchakit, Mahasarakham Business School, Mahasarakham University, Thailand
ABSTRACT
Cost management strategy is important for business management effectiveness as it supports decision
making, enhances competitive advantage and increases firm performance. This study aims atinvestigating the relationships among cost management strategy of three dimensions: cost containment,cost avoidance, and cost reduction, operational planning effectiveness, decision making quality, resource
management capacity, and firm performance. A questionnaire was used to collect the data from 168
chemical manufacturing firms in Thailand. The results of this study show that cost avoidance focus andcost reduction capability have a significant positive relationship with firm performance. In sum, this study
contributes to managerial by providing the knowledge that firm performance can be increased by costmanagement strategy implementation. Because the sample is only chosen from one industry as
chemical manufacturing, the generalizability may need to be confirmed. Future research should cover abroader industrial manufacturing in order to increase the external reliability.
Keywords: Cost Management Strategy, Operational Planning Effectiveness, Decision Making Quality,
Resource Management Capacity, Firm Performance, Environmental Uncertainty

2. RISK TOLERANCE: A BEHAVIOURAL ANALYSIS
Everton Anger Cavalheiro University of Cruz Alta
Kelmara Mendes Vieira Federal University of Santa MariaPaulo Sérgio Ceretta Federal University of Santa MariaABSTRACT
The traditional perspective of financial theory suggests an implicit rationality on decision making.
Historically, researches have revolved around demographic, social and economic heuristics, thus
neglecting the emotional, cognitive and behavioral suppositions, related to financial decision making. In
this sense, this study aims to evaluate which are the determining factors for risk tolerance. So, we carriedout a survey on 815 individuals residing in Santa Maria, Julio de Castilhos and Cruz Alta, Brazil.
Afterwards, we performed a CFA and, eventually, a regression analysis. Generally and consistently, thesuppositions for rationality were refuted, though consistent to the Prospect Theory, validating thenumerous studies that demonstrate the violation of the rationality suppositions. The heuristics which are
traditionally used in order to determine the level of risk tolerance have not shown to be significant in thisresearch. The cognitive, emotional and behavioral dimensions of decision making have shown to besignificant.
Keywords: risk; risk tolerance; Behavioral FinanceIJSM, Volume 12, Number 3, 2012

ISSN: 1555-2411

3. INTELLECTUAL CAPITAL ORIENTATION ANDSUSTAINABLE PERFORMANCE OF MEDICAL SERVICE BUSINESS:AN EMPIRICAL STUDY OF PRIVATE HOSPITALS IN THAILAND
Sumittra Jirawuttinunt, Mahasarakham Business School, Mahasarakham University, Thailand
Kannika Janepuengporn, Mahasarakham Business School, Mahasarakham University, Thailand

ABSTRACTThe purpose in this study is to examine the relationships between intellectual capital orientation (humancapital, structural capital and relational capital) and sustainable business performance via knowledge
management effectiveness and organizational innovation. In addition, it also explores the moderating
effects of transformational leadership in the relationships of the model. Here, 102 private hospitals inThailand are chosen as the sample of the study. According to medical service business in Thailand, theresults of OLS regression analysis indicate that three dimensions of intellectual capital orientation havesignificant influence on sustainable business performance through knowledge management effectivenessand organizational innovation. For the moderating effects, transformational leadership increases only
some relationships. Potential discussion with the research results is effectively implemented in theresearch. Theoretical and managerial contributions are explicitly provided. Conclusion and directions ofthe future research are highlighted.
Keywords: Intellectual Capital, Human Capital, Structural Capital, Relational Capital, Transformational
Leadership, Knowledge Management Effectiveness, Organizational Innovation and Sustainable Business
Performance

4. HUMAN RESOURCE MANAGEMENT POLICIES AND PRACTICES (HRMPP):SCALE VALIDATION IN THE UNITED STATES
Gisela Demo, UCLA Anderson School of Management, Los Angeles, California, USA
Késia Rozzett, University of Brasília, Brasília, Brazil
ABSTRACT
Given the strategic relevance of Human Resource Management (HRM) in organizations and the lack ofcomprehensive instruments to assess policies and practices of HRM, the main objective of this study is todevelop and validate a reliable and valid scale to measure employees perceptions regarding policies andpractices of Human Resource Management (HRM) implemented by organizations. Three studies withdifferent national samples were conducted for the development and validation of the Human Resource
Management Policies Scale (HRMPPS) in the United States (US) using exploratory factor analysis (EFA)
and confirmatory factor analysis (CFA). Scale reliability was assessed by Cronbach’s alpha andJöreskog’s rho. A six-factor model was generated showing high-reliability and good fit. Construct validity
was provided through convergent, discriminant and nomological validity, being the latter assessed
through the correlation between HRM practices and well-being at work. Finally, the scale generalizability
was tested in a different sample by conducting a replicative analysis on the measurement model andstructural model obtained. This research is a starting point to provide a comprehensive, psychometricallyand operationally valid measure of employees’ perceptions regarding the most widely studied HRM
policies and practices. As practical implications, the six-factor HRMPPS model could be used as adiagnostic tool to identify HRM areas where specific improvements are needed, as well as an instrumentof evaluation for managers who wish to improve employees’ well-being. Limitations and directions for
future researches are discussed.
Keywords: human resource management policies and practices; exploratory factor analysis; confirmatory
factor analysis; scale validation; well-being at workIJSM, Volume 12, Number 3, 2012

ISSN: 1555-2411

5. ACTIVITY-BASED COST MANAGEMENT STRATEGY AND CONTINUOUS PERFORMANCEIMPROVEMENT: EVIDENCE OF THAI ELECTRONIC FIRMS
Pitachaya Kaneko, Mahasarakham Business School, Mahasarakham University, Thailand
Phapruke Ussahawanitchakit, Mahasarakham Business School, Mahasarakham University, Thailand
ABSTRACTThe study attempts to integrate the key components of activity-based cost management strategy in thenew model. The objectives of this study are to examine the effects of activity-based cost management
strategy on continuous performance improvement through two mediators: resource integration quality andintellectual capital advantage. This study also examines the effects of organizational communication andorganizational coordination as moderators on the relationships among activity-based cost management
strategy, resource integration quality, intellectual capital advantage, and continuous performance
improvement of electronic firms in the Federation of Thai Industries (F.T.I). Questionnaire was utilized fordata collection and 225 financial managers of electronic firms are the sample of this study. With theresults of the study, activity-based cost management strategy is strongly positive which has a significant
continuous performance improvement through resource integration quality and intellectual capital
advantage which become mediators. However, the results indicate a partially significant positive effect ofthe moderators, organizational communication and organizational coordination on the relationship among
activity-based cost management strategy, resource integration quality, intellectual capital advantage andcontinuous performance improvement. Additionally, the results also suggest that organizational
coordination is suitable as an antecedent than a moderator, because it has a direct effect both on
resource integration quality and intellectual capital advantage, but it has no indirect effect on continuousperformance improvement. To explicitly verify the linking of the aforementioned antecedents tocontinuous performance improvement, future study needs to resort to antecedent and mediating variables
and include them in the conceptual model in order to increase the contributions and benefits of the study.
Keywords: Activity-Based Cost Management Strategy, Cost Management Orientation, Product Planning
Focus, Resource Integration Quality, Intellectual Capital Advantage, Continuous Performance
Improvement, Organizational Communication, Organizational Coordination

6. STRATEGIES IMPLEMENTATION AND EVALUATION OF THAILAND PUBLIC SECTOR TO
IMPROVE PRIVATE SECTOR PERFORMANCE
Viput Ongsakul, National Institute of Development Administration (NIDA), Bangkok, Thailand
ABSTRACTThis survey research revealed the status of strategies implementation of public sector in Thailand aiming
to improve private sector performance. The research data is based on 905 samples which consist of twoparts. The first part is data from citizen evaluation, 755 samples, and the second part is from civil servant
evaluation, 150 samples. The model that we construct to evaluate strategies implementation of publicsector is based on 4 dimensions which are efficiency, competency, participation and governance. The
study reveals that efficiency and governance are most advance dimensions in strategies implementation
while competency and participation are less advance dimensions.
Keywords: Strategy, Strategy Management, Strategy Implementation, Strategy Evaluation,Public Management, Private Sector Performance, Public Reform, New Public ManagementIJSM, Volume 12, Number 3, 2012

ISSN: 1555-2411

7. COMPETITIVE ADVANTAGE IN THAI SERVICE BUSINESSES:INVESTIGATING THE EFFECTS OF ORGANIZATIONAL DESIGN EFFECTIVENESS
Anirut Pongklee, Mahasarakham University, ThailandSakcharoen Pawapootanont, Mahasarakham University, Thailand
ABSTRACTThis paper to examines the role of organizational design effectiveness that affects service marketing image,specialize human capital, and firm performance. In addition, the researchers explore the key antecedents oforganizational design effectiveness that include three factors of competence development in business
relationship, customer induced uncertainty and technological opportunity. The model is tested using datacollected from mail survey of 149 companies from hotel businesses in Thailand. The results indicate partial
support for the hypotheses derived from the conceptual model. Thus, contribution and suggestions are also
provided for future research.
Keywords: Organizational Design Effectiveness, Service Marketing Image, Specialize Human Capital, Firm
Performance, Competence Development in Business Relationship, Customer Induced Uncertainty, andTechnological Opportunity

8. ROLES OF RISK MANAGEMENT STRATEGY IN GOAL ACHIEVEMENT:EVIDENCE FROM THAI LISTED FIRMS
Sutika Rukprasoot, Mahasarakham Business School, Mahasarakham University, Thailand
Phapruke Ussahawanitchakit, Mahasarakham Business School, Mahasarakham University, Thailand
ABSTRACTThis study aims at investigating the impacts of risk management strategy on goal achievement throughmediating influences of internal control efficiency, operational value increase and organizational resource
exploitation and moderating effects of environmental complexity. Risk management strategy consists of(1) identifying events and circumstances relevant to an organization's achievement of its goals andobjectives (IE); (2) assessing these events and circumstances in terms of likelihood and magnitude ofimpact (AE); (3) determining a strategy for responding to the identified threat or opportunity (DS); and (4)monitoring the subsequent evolution and impact of the events (ME). 128 information Thai Listed firms
were chosen as the sample of the study. The results present that AE and DS have a significant positive
influence on internal control efficiency, operational value increase and organizational resource
exploitation. Inversely, ME has a negative influence on operational value increase, organizational
resource exploitation, especially it has a significant negative influence on internal control efficiency.
However, IE has no influence on internal control efficiency operational value increase, organizational
resource exploitation. Likewise, operational value increase and organizational resource exploitation havea potential positive influence on goal achievement while internal control efficiency has no relationship withgoal achievement. Thus, further study may consider finding practical reasons why it is so by reviewing
extensive literature. Potential discussion with the research results is effectively implemented in the study.
Theoretical and managerial contributions are explicitly provided. Conclusion and suggestions anddirections for the future research are highlighted.
Keywords: Risk Management Strategy, Internal Control Efficiency, Operational Value Increase,
Organizational Resource Exploitation, Environmental Complexity, Goal AchievementIJSM, Volume 12, Number 3, 2012

ISSN: 1555-2411

9. SOYBEAN BRAZILIAN PRICE’S PREDICTABILITY VIA BOX-JENKINS METHOD
Everton Anger Cavalheiro University of Cruz Alta
Kelmara Mendes Vieira Federal University of Santa MariaPaulo Sérgio Ceretta Federal University of Santa Maria
Juliano Nunes Alves University of Cruz Alta
ABSTRACTThis paper analyses the efficiency of the Box-Jenkins methodology in the forecast of monthly returns ofthe soybean price paid in Brazil. At first, in order to determine the exogenous variable, the logarithm
return of this commodity was calculated. Subsequently, the best period for the series simulation wasverified. Afterwards, the simulations were carried out and the model was validated. The results suggest
relative predictability for the soybean price, denoting some sort of inefficiency in this market due,
especially, to the period following the American crisis, in which the soybean price was shown to be morepredictable in t + 1 modeling.
Keywords: Time series, Box-Jenkins, Soybean