IJSM, Volume 9, Number 1, 2009

ISSN: 1555-2411

ABSTRACTS
1. KNOWLEDGE CREATION AND THE MANAGEMENT OF DIVERSITIES: COMPARATIVEANALYSIS OF KAO CORPORATION AND P&G
Takabumi Hayashi, Rikkyo Unversity, Japan
Atsuo Nakayama, Rikkyo University, Japan
ABSTRACT
Many theories on knowledge creation, including strategic management theories, seem to be argued,
based on the assumption that contexts are homogeneous under the environment against the backgroundof the industrial digitalization and the market globalization. In addition, traditional knowledge creation
theories have hardly highlighted the impact of cultural and technological diversities on knowledge creation
processes and the dynamic interconnectedness between them. This study has examined the impact ofcultural and technological diversity on corporate R&D activities that can be regarded as knowledge
creation processes. As a result of the analysis, the authors have noted that there is increasingly
dynamic interconnectedness between knowledge creation and cultural and technological diversities.
Keywords: Knowledge Creation, Management of Diversity, Cultural Diversity, Technological Diversity,
Boundary Management

2. LOCATION ATTRACTIVENESS OF SMALLER AREAS: DO THEY USE CONTEMPORARY
TRENDS IN ECONOMIC GEOGRAPHY?
Djula Borozan, J.J. Strossmayer University of Osijek, Osijek, Croatia
Ivana Barkovic, J.J. Strossmayer University of Osijek, Osijek, Croatia
ABSTRACT
Within the framework of the new economic geography theory and current trends in the spatialorganization of economic activities, the attractive business location is becoming ever more important inincreasing region’s competitiveness, a concept that is increasingly cited as a prerequisite for regional
growth and development. This paper is discussing the ability of a region to attract business activities,
particularly big firms due to a wide range of benefits they generate to an area. Following the (Croatian)trend of big firms moving to smaller areas due to the package of benefits they offer to firms in terms ofspecific business environment, available and adequate labor force and doing business with lower
costs, the paper analyzes and discusses the case of Osijek-Baranja County (OBC) in Croatia anddelineates failures in policies of local and regional authorities to make the OBC more attractive businesslocation, thus ensuring its development and long-term prosperity. The paper concludes with policy
suggestions focused on quality improvement of business environment, strengthening of entrepreneurial
capacities and creating more dynamic entrepreneurial activities, which have been inter alia identified as
crucial attractors of (big) firms.
Keywords: Location Attractiveness, the Osijek-Baranja County, New Economic Geography, Regional
Imbalance, Local CommunitiesIJSM, Volume 9, Number 1, 2009

ISSN: 1555-2411

3. CORPORATE INNOVATION, CREATIVE PERFORMANCE, AND SUSTAINABLE GROWTH: AN
EMPIRICAL RESEARCH OF EXPORTING GEMS AND JEWELRY BUSINESS IN THAILAND
Pharnnapha Chuebang, Mahasarakham University, Thailand
Phapruke Ussahawanitchakit, Mahasarakham University, Thailand
ABSTRACTCorporate innovation is one of many factors which are important for competitive advantage of the firms.
It strongly affects resources competitiveness and competitive advantage for capabilities that influence afirm’s creative performance and a sustainable growth. This research examines the relationships ofthe aforementioned variables. Also, it investigates the antecedents of corporate innovation. The results
reveal that corporate innovation has a positive influence on resources competitiveness and competitive
advantages for capabilities; and creative performance has a positive impact on sustainable growth.
Likewise, transformational leadership, customer knowledge conduct, collaboration orientation,
cooperative outsourcing, and global market opportunities are the antecedents of the corporateinnovation. Efficiency of IT system definitely moderates the cooperative outsourcing-administrativeinnovation relationships. Thus, theoretical and managerial contributions are provided and limitations ofthe study and suggestions for further research are presented accordingly.
Keywords: Corporate Innovation; Technical Innovation; Administrative Innovation; Resources
Competitiveness, Competitive Advantage for Capabilities, Creative Performance, Sustainable Growth,
Transformational Leadership, Customer Knowledge Conduct, Collaboration Orientation, Cooperative
Outsourcing, Global Market Opportunities, Competitive Learning, Efficiency of IT System, and Innovation
Diffusion

4. INDIVIDUAL STOCKOWNERSHIP IN THE UNITED STATES: IS THERE A NATIVE-IMMIGRANTGAP IN FINANCIAL MARKET PARTICIPATION?
Swarn Chatterjee, University of Georgia, Athens, USA
Nathaniel J. Harness, Texas A&M-Commerce, Commerce, USAABSTRACTThis paper uses data from the National Longitudinal Survey, cohort 1979 (NLSY79) to examine thedifferences in financial market participation among native-born Americans and immigrant households.
The results indicate that, compared to natives, immigrants are less likely to own stocks and that thelikelihood of stockownership increases with income and educational attainment for immigrants andnatives alike. Results also suggest that stock market participation among immigrants increases as theirtime in the United States increases, and that risk tolerance is a positive predictor of financial market
participation for both native-born and immigrant Americans.
Keywords: Immigrants, Risk Tolerance, Individual Assets, Investor Behavior, Financial MarketParticipationIJSM, Volume 9, Number 1, 2009

ISSN: 1555-2411

5. EXPLORING THE ROLE OF KNOWLEDGE MANAGEMENT ACITIVITES IN BUILIDNG UP
ORGANIZATIONAL LEARNING CAPABILITY
S. L. Chau, Hang Seng School of Commerce, Hong Kong, China
ABSTRACT
Recognizing the strategic importance of knowledge and learning in modern organizations, the concepts ofknowledge management and organizational learning have been gaining higher awareness. Yet,confusion seems to exist in the relationship between “knowledge management” and “organizationallearning”. This paper attempts to make a clearer understanding of the role of knowledge management
activities in bringing about organizational learning and improved performance outcomes. Drawing upon
the resource-based theory, it is hypothesized that knowledge management activities will help build uporganizational learning capability that in turn will bring about better organizational performance. Results ofthe study provide preliminary support to the hypotheses. Implications for both management researchersand practitioners are highlighted.
Keywords: Knowledge management, Organizational effectiveness, Organizational learning capability

6. HOW TO ELIMINATE CONFLICTS: THE ESSENCE OF INDIVIDUAL AND BIOLOGICAL IDENTITY
Lyubov A. Bogun, Odessa Institute of Entrepreneurship and Law, Odesa, Ukraine
ABSTRACTThe aim of the present research is to answer the question: How to eliminate conflicts given thevalues and their origins are understood? The essence of individual must be considered to answer thisquestion. Different manager’s decision intentions were considered to investigate the issue. Theresearch shows that religious, genetic and biological viewpoints must be taken into consideration toeliminate cultural differences and their influence on probability of conflicts in international alliances.
Keywords: biological identity, conflicts, cultural differences, essence of individual

7. AN INDIVIDUAL LEVEL THEORY OF INNOVATION DIFFUSION
C. B. Claiborne, Texas Southern University, Houston, Texas, USAABSTRACTThis paper posit an individual level theory of innovation diffusion. Innovators possess an intelligencesimilar to emotional intelligence which predisposes them to pursue solutions to personal problems orneeds. Innovation intelligence is related to curiosity, empathy, abstract thinking, and self-efficacy.
Innovation Intelligence is unrelated to social desirability, dogmatism, fatalism, and risk avoidance.
Keywords: Innovation, Diffusion, Innovation Intelligence, Emotional Intelligence

IJSM, Volume 9, Number 1, 2009

ISSN: 1555-2411

8. OPTIMAL HEALTH CARE FINANCING: GOVERNMENT OR PRIVATE?
Stephen Foreman, Robert Morris University, Moon Twp, PA, USA and Crimea State MedicalUnivesity, Simferopol, Ukraine
Anatoly Kubushkin, Crimea State Medical University, Simferopol, UAABSTRACT
Government funded health care systems provide equity or fairness in terms of access to medical care.
However, they are often inefficient in that they encourage high levels of use of medical care. Privately
funded systems are generally more efficient but fail to provide equity. Privately funded systems can be
improved through health insurance. However, insurance also encourages over use. Accordingly, theory
suggests that there should exist an optimal health care system that includes and balances bothgovernment payment and private payment and that there exists an optimal balance of out of pocket
payment and health insurance payment. We use World Health Organization data to consider optimal
government and private payment and optimal levels of private health insurance in the context of life
expectancy at birth and the World Health Organization’s performance measures. Empirical illustration
using these measures of efficiency and equity suggest that increasing private health care spending as apercentage of all health care spending provides optimal efficiency at about 46% and minimal fairness at
about 54%. Out of pocket payment as a portion of private payment seems to provide no more efficiencies
above 35% and take the greatest toll on equity at 76%. There may well be no “best” form of health carefinancing but there are indications that there may be an optimal approach. Optimal health care financing
may consist of a combination of public and private activity and a combination of out of pocket payment
and insurance in the private sector.
Keywords: Health Care Finance, Government Financing, Private Financing, Optimal Financing,
Government Health Insurance, Out of Pocket Payment

9. TOWARDS A TYPOLOGY OF STRATEGIC ALLIANCES FOR SMALL FIRMS
Akmal S. Hyder, University of Gävle, Sweden
Johan Gaddefors, University of Gävle, Sweden
ABSTRACT
Many studies have been conducted on strategic alliances, but mainly from large and medium-sizedcompanies’ perspectives. This work concentrates on small firms and suggests a typology of small firm
alliances to reveal their opportunities and constraints relating to alliance formation and development. By
combining network and Entrepreneurship orientation (EO), an alliance typology consisting of four
categories: (1) stable-proactive, (2) stable-innovative, (3) dynamic-proactive and (4) dynamic- innovativeis developed. The proposed typology is exemplified by the help of in-depth case illustration which
performs a two-fold function: it examines the applicability of the typology and it offers guidance to theentrepreneurs as how to combine effectively network and EO and also position the firm in theappropriate typology in managing business. All the alliance type can be appropriate for small firms, but
the nature of business will decide which type will be employed. One limitation of this study is the focus onservice firms. Two studies can be suggested in this regard: a focus exclusively on the manufacturingfirms to compare with the result of the current study and to combine both service and manufacturingfirms to illustrate the theoretical contribution.
Keywords: Strategic alliances, entrepreneurial orientation, small firms, service firms

IJSM, Volume 9, Number 1, 2009

ISSN: 1555-2411

10. MARKETING CONCEPT, MIX, AND ORGANIZATION AND PLANNING WHEN LAUNCHING NEW
PRODUCTS INTO THE INTERNATIONAL MARKETS: CASE FINNISH HIGH TECH COMPANIES
Matti J. Haverila, American University of Sharjah, Sharjah, United Arab Emirates
ABSTRACT
While much research has been directed at the variables critical to successful R&D of new and hightechnology products, much less work has been directed at those factors crucial to the success of theseproducts when the firm attempts to enter the international markets. This study surveys Finnish hightechnology firms and identifies those variables associated with successful versus unsuccessful attempts
to enter the international market. The research attempts to determine and identify the marketing methods
used by Finnish high technology companies in launching new products abroad. The rank order ofimportance of the different marketing methods will be presented. Also, the purpose is to determine if theuse of marketing concept, marketing mix variables and marketing organization and planning variables
significantly contribute to the success of product launch. The generalizability of the findings to othereconomies is discussed.
Keywords: High Technology Products; Marketing Concept; Marketing Mix; Marketing Organization andPlaning; New Product Launch

11. AN EMPIRICAL STUDY ON THE IMPACTS OF PARTNERSHIP BETWEEN SCM IMPLEMENTINGENTERPRISES ON BUSINESS PERFORMANCE
Jong-Weon Kim, Dongeui University, Busan, South Korea
Eun-Jung Kim, Dongeui University, Busan, South Korea
ABSTRACT
Absorption, trust and mutual dependency—core elements of partnership for enterprises engaged in a
supply chain—will bring about agility (i.e. the ability for businesses to respond to changes promptly andflexibly) and help them share needed information on a real-time basis, providing them with visibility on
internal information needed for decision-making and enabling process innovation. Therefore, this studyaims to empirically analyze how business partnership enhances an enterprise’s agility, internal visibility
and process innovation and affects its business performance. This study collected data on-line and offline from the real time enterprises which implement the supply chain management. The 84 responses
were used for the statistical analysis. The research results were as follows. First, mutual dependency hasbeen shown to significantly affect both agility and internal visibility, while absorption has significant
impacts on internal visibility alone and trust on agility only. Meanwhile, process innovation is significantly
influenced by trust, but not by absorption and mutual dependency. Second, process innovation
significantly influences agility and internal visibility. Third, internal visibility and process innovation
significantly affect on the non-financial performance of an enterprise, while agility has no significant
impact on its non-financial performance. Fourth, agility, internal visibility and process innovation have nodirect impacts on the financial performance of an enterprise. Finally, the non-financial performance of anenterprise significantly influences its financial performance. This study suggests some practical
implications on SCM to the practitioners.
Keywords : Supply Chain Management, Real Time Enterprise, Partnership, Business Performance