IJSM, Volume 8, Number 1, 2008

ISSN: 1555-2411

ABSTRACTS
1. SUSTAINABLE COMPETITIVE ADVANTAGE THROUGH EARNINGS QUALITY OF THAI SMEs:
ROLES OF BUSINESS ETHICS
Phapruke Ussahawanitchakit, Mahasarakham University, Thailand
ABSTRACTThis study aims at examining the effects of business ethics on earnings quality of Small and MediumSized Enterprises (SMEs) in the central part of Thailand. Business ethics is a dependent variable. It
includes justice, relativist, egoism, utilitarian, and deontology. Relevance, reliability, and comparability aremeasurements of earnings quality as independent variables. The results show that justice, relativist,utilitarian, and deontology have significant positive impacts on earning quality and egoism has asignificant negative influence on earnings quality. Also, they critically play important roles in explaining
SMEs’ earnings quality. Surprisingly, these dimensions do not influence on the same level of earnings
quality (relevance, reliability, and comparability). Within the business ethics-earnings quality relationships,
different determinants of business ethics on earnings quality are then needed to explore and investigate
in the further study. Both theoretical and managerial contributions are explicitly provided. Conclusion andsuggestions and directions for the future research are described.
Keywords: Small and Medium-Sized Enterprises, Business Ethics, Justice, Relativist, Egoism, Utilitarian,Deontology, Earnings Quality, Competitive Advantage

2. KNOWLEDGE TRANSFER
BIOTECHNOLOGY FIRMS

IN

PROJECTSALLIANCE:THECASEOFGERMAN

Ricarda B. Bouncken, University of Greifswald, Greifswald, Germany
Viviane Winkler, University of Greifswald, Greifswald, Germany
ABSTRACTThis study analyses preconditions of knowledge transfer between partnering firms in project alliances.
Results indicate that openness of knowledge transfer in biotechnology firms centres on mechanisms thatenable integrated control. However, trust a mechanism strongly discussed in the context of relationships
between individuals did not reveal a positive effect on knowledge transfer.
Keywords: Knowledge, Alliances, Biotechnology

3. RELATIONSHIPS AND NETWORKS IN THE PROCESSES OF ESTABLISHMENT OF FIRMS IN
TRANSITION ECONOMIES: SCANDINAVIAN FIRMS IN CENTRAL AND EASTERN EUROPEDesalegn Abraha Gebrekidan, University of Skövde, Skövde, SWEDEN
Aihie Osarenkhoe University of Gävle, Gävle, SWEDEN
Gabriel Baffour Awuah, Halmstad University, Halmstad, SWEDEN
ABSTRACT
A focus on the particular entry mode a firm uses to enter a new market, rather than on the process ofestablishment, dominates in extant literature. To fill this void, we apply an establishment process model
developed from the network approach to illuminate the web of relationship forms embedded in theestablishment process of two Scandinavian firms as they attempt to establish themselves in transitionIJSM, Volume 8, Number 1, 2008

ISSN: 1555-2411

economies. In one case, the results show that Statoil’s process of establishment in Estonia was both lesstime-consuming and less resource-consuming because the firm drew support from significant actors intheir network of exchange relationships. In the second case, a lack of home and host country support for
Scania in Croatia resulted in an arduous and costly process and less stable position in the market, withthe firm’s position changing several times as different problems cropped up. In light of the findings fromthe two cases, theoretical and practical implications for managing the establishment process arediscussed.
Keywords: relationships, networks, establishment processes, actors, resource exchanges, adaptations,transition economies
4. DETERMINANTS OF INTERNATIONAL EQUITY ENTRY MODE: AN EMPIRICAL ANALYSIS
Ruth Clarke, Nova Southeastern University, Fort Lauderdale, Florida, USA
Fernando Robles, George Washington University, Washington, DC, USA
Syed Akhter, Marquette University, Wisconsin, USA
Marcilio Machado, Fucape Business School, Vitoria, Brazil
ABSTRACTThis empirical paper tests hypotheses exploring the use of equity investment in international market entry
by US-based firms. We first establish the respondents’ use of equity or non-equity, and their internationalpresence, and then proceed to test for determinants of investment. Using transaction cost theory andresource base theory we examine the influences of asset specificity, tacitness of strategic resources,
country similarity, business similarity, environmental uncertainty and behavioral uncertainty on firm
decisions to make equity investments. Six hypotheses are presented and tested on a sample of selfidentified firms engaged in international business. The results for the exploratory study are significant for
one hypothesis, and discussion follows regarding the lack of confirmation of the theory with this data set.
Keywords: International Entry Mode; Transaction Costs; Resource Based Theory

5. UNDERPRICING OF INITIAL PUBLIC OFFERINGS: AN EMPIRICAL ANALYSIS OF INDIAN IPOMARKET
Sobhesh Kumar Agarwalla, Indian Institute of Management, Ahmedabad, India
ABSTRACT
Initial Returns (Underpricing) of IPOs and long run (under)performance of IPOs is studied extensively
across countries and across time. On a sample of 110 public issues in the Indian market across a 4 years
time (2002 – 2005), it is found that the extent of underpricing and the post listing returns is significantly
related to the number of times the issue was oversubscribed. In addition, the return varied significantly incase of IPOs and in case of seasoned equity offerings. Though long run underperformance of IPOs isfound in many countries, but for the public offers during the sample period in the present study it was
found that the stocks performed better than the market (180 days post listing) and the average excess
return was as high as 17.36% (Median – 18.02%). The extent of correlation between performance of thestocks and number of times oversubscribed was highest in case of retail investor category as comparedto the non-retail and institutional investor category. This could imply two things – the post issues prices
are guided more by the demand from retail investors than institutional investors or the retail investor makea better judgement of the price.
Keywords: IPO, Underpricing, Initial Excess Returns, Underperformance, Book-buildingIJSM, Volume 8, Number 1, 2008

ISSN: 1555-2411

6. WHEN VOLUNTEERS DON’T HELP THAT MUCH: THE MEDIATED MODERATION EFFECT OF
VOLUNTEERISM BETWEEN HIGH COMMITMENT HUMAN RESOURCE PRACTICES,ORGANIZATIONAL CLIMATE AND STRATEGIC PERFORMANCE OF TEMPORARY
ORGANIZATIONS
Ing-Chung Huang, National Kaohsiung University, Taiwan
Chin-Ming Ho, National Sun Yat-Sen University, Taiwan
Jin-Feng Uen, National Sun Yat-Sen University, Taiwan
Long-Sheng Lin, National Sun Yat-Sen University, Taiwan
Po-Chien Chang, National Sun Yat-Sen University, Taiwan
ABSTRACT
Temporary organizations as a contingent and task-oriented form of work have recently received moreattention both in academic research and business practice. The inherent characteristics of temporaryorganization , where a set of skilled people working together to accomplish certain task over a limited time
period, call for more delicate human resource management efforts. This study contributes to the humanresource management literature in several aspects. First, we extend the theoretical domain of highcommitment human resource practices into the temporary organization context. Drawing on a sample of
Taiwan’s two major city councilor candidates’ campaign offices, we demonstrate that high commitment
human resource practices within the campaign headquarters have positive effects on the candidates’
successful election, which is the strategic performance of these campaign organizations. Second, weshow that high commitment human resource practices affect the organizational climates within thecampaign organizations and subsequently lead to election success. The mediation process helps clarify
how high commitment human resource practices “release” their influence to foster a positive andsupportive internal social structure toward motivating employees to collectively contribute toorganizational performance under the temporary organizational context. Lastly, we demonstrate thenegative mediated moderation effect by volunteerism within temporary organizations between thelinkages of human resource practices through organizational climate to performance, which we believe tobe unique under temporary organizational context. Implications and suggestions are provided.
Keywords:Temporary organization; high commitment human resource practices; organizational climate;volunteerism, mediated moderation

7. ANTECEDENTS OF ORGANIZATIONAL LEARNING: A CONCEPTUAL FRAMEWORK
S. L. Chau, Hang Seng School of Commerce, Hong Kong, ChinaABSTRACT
Facing the accelerating rate of change in the global knowledge-based economy, survival anddevelopment of organizations critically depend on their learning capability. Drawing on theresource-based view of the firm, the presence of intangible organizational resources in the form oflearning capability might lead to competitive advantages. Thus, the increasing importance of learning
drives business to shift their strategic focus to organizational learning. Literature generally put forward thatsuccessful organizational learning enhances organizational effectiveness and competitiveness. Factors
such as organizational structure, leadership, organizational culture, human resources development andknowledge management practices are commonly identified as facilitators that support a learningorganization. This paper contributes to construct a unified and holistic conceptual model according tothese presumed antecedents of organizational learning, which is relatively limited in the extant literature.
Keywords: Organizational learning, Organizational effectiveness, Strategic Learning Capability

IJSM, Volume 8, Number 1, 2008

ISSN: 1555-2411

8. MEASUREMENT OF FORMAL HARMONIZATION: CASE STUDY FOR ROMANIA
Răzvan V. Mustaţă, Babeş-Bolyai University, Cluj-Napoca, Romania
Dumitru Matiş, Babeş-Bolyai University, Cluj-Napoca, Romania
ABSTRACTThe actual tendencies show a continuous movement towards the harmonization of the accountancy
standards, but not without difficulties and interrogation marks (Ampofo and Sellani, 2005, p. 219). This is
the reason why we consider that the concern regarding the measurement of accounting harmonization, atregional and international level, describe a normal condition, which may conduce through the results
obtained to the achievement of the existence of a single set of accounting standards accepted in all theworld. Through this paper we would like to quantify the harmonization rate existent between theRomanian Accounting Regulations and the International Financial Reporting Standards (IAS/IFRS) in theperiod 1973-2007, using with that end measurement tools like - Euclidean Distance and Jaccard
Coefficient. The results obtained show the existence of a real accounting harmonization process between
the two referential, and its amplitude register a considerable increase in the 2000-2007 period.
Keywords: global accounting standards, de jure harmonization, measurement of harmonization

9. THE TYPOLOYGY OF RESTRUCTURING BY DEMERGER PRACTISED BY THE ENTITIES FROMROMANIARamona P. Răchişan, Babeş-Bolyai University, Cluj-Napoca, România
Adrian Groşanu, Babeş-Bolyai University, Cluj-Napoca, România
Sorin Berinde, Babeş-Bolyai University, Cluj-Napoca, România
ABSTRACT
Contemporary entities are permanently submitted to transformation processes as a consequence of theinfluence of direct and indirect factors, and each entity, no matter the ownership form, the dimension, theshareholding structure or the capacity to adapt to the environment, is submitted to modifications towards
developing its activity and making it more efficient. The economic entity, while trying to be on one handless vulnerable to transformations and on the other hand more performant and efficient, has the tendency
to be submitted to the restructuring process. The restructuring term presents more meanings for change
and reorganisation. International specialized literature considers that restructuring can have three main
forms: the irreversible transfer of assets between the entities during the operations of merger, demerger
and partial contribution; the creation of patrimonial relations between entities having for basis financialshares) and contractual agreements which do not affect the legal independence of the entities (Bavayand Beau, 1990). In other authors’ opinion there are three main types of restructuring operations:demergers (merger-demerger and pure and simple demerger), partial asset contribution (partial asset
contribution and subsidiary creation) and mergers (merger by absorption and fusion)(Bardos andTournier, 2000). The paper has for an objective to identify the restructuring typology by demerger
practised mostly by the entities from Romania. In order to reach this objective we used the researchmethodology, which had for basis an extensive study consisting in the analysis of demerger operations
made in between first January 2006 and thirty June 2007, respectively a number of 295 demerger
operations.
Keywords: Economic entity, Restructuring, Demerger, Demerger purpose, Extensive study