bluuebunny/crossref_metadata_2025 huggingface dataset:
Requirement engineering elicitation methods
Authors: Rouibah Kamel , Al‐Rafee Sulaiman
Published: July 2009

Purpose

The purpose of this paper is to investigate the perceptions of 19 requirement engineering (RE) techniques in Kuwait in term of three criteria “awareness,” “use,” and “perceived value generated over past system development projects.” Also, this paper aims to examine possible relationships between these RE techniques and two information system development success factors.

Design/methodology/approach

This paper develops a questionnaire and tests with a sample of respondents from 175 organizations in Kuwait.

Findings

Results show that: Arab culture influence perception of RE techniques; most companies have good knowledge of different techniques; several different techniques for identifying and analyzing customer requirements are used; the most highly valued RE techniques are decision trees, goal oriented, prototyping, data flow diagram (DFD), and interviews; six techniques (tree analysis, role playing, unified modeling language, Kawakita Jiro method, flow charts, and Ishikawa) are found to have the least perceived value; and only two techniques (prototyping and decision tree) are highly correlated with the statement “Obtaining the right requirements is a critical success factor for system development,” while other three techniques (quality function deployment, DFD and role playing) are correlated with “We experienced problems during past system developments projects because of wrong requirements collection.”

Research limitations/implications

The study sheds light on perceptions on RE techniques perception in Kuwait where less is known about the subject from Western researchers.

Practical implications

This paper suggests re‐examining university curriculums in order to prepare students for familiarity with techniques that have proven their effectiveness elsewhere and call for more collaboration between academia and practitioners in order to appropriate research outcomes. In addition, this paper is of benefit to foreign consulting companies willing to penetrate the Gulf Cooperative Council.

Originality/value

This is the first Arab study that sheds light on system development practices in the Arab world.
A process model for customer relational assets creation
Authors: Chou Tzu‐Chuan , Lee An‐Sheng
Published: July 2009

Purpose

The purpose of this research is to understand the practices of electronic customer relationship management (eCRM) and to establish a process model for online customers' relational assets creation.

Design/methodology/approach

Through a case study of a Taiwanese securities company, qualitative data are gathered on the process where online customers' relational assets evolved. This research is primarily based on 20 interviews of the case company. Four managers from the other two securities brokerage companies are also consulted in order to validate and complement the collected information.

Findings

The model reveals the relational assets creation as a four‐phase process: establish online relational tie, identify the features of online customers, enhance self‐determined behavior, and exploit research & development advantage for long‐term relationships.

Originality/value

In presenting an integrated view of the relational assets creation issue of eCRM has served as a step in establishing a process model. For each phase of the model, key managerial activities were identified that may facilitate online relationship building. The implications of the lessons learned and its future research directions are also discussed.
Determinants of the critical success factor of disaster recovery planning for information systems
Authors: Chow Wing S. , On Ha Wai
Published: July 2009

Purpose

Recent disaster recovery planning (DRP) literature has mainly focused on qualitative research, while neglecting the quantification of critical success factors (CSFs) for information systems function (ISF). This paper aims to address this issue.

Design/methodology/approach

This paper first conducts an extensive literature review, and then identifies 62 DRP measurement items for ISF. A questionnaire survey, which is based on these 62 measurement items, is used for data collection, and 129 managers of DRP in ISF participate in this paper.

Findings

Through the use of convergent factoring analysis, this paper identifies ten DRP CSFs for ISF, they are: DRP documentations, DRP steering committee and DRP testing, DRP policy and goals, DRP training, DRP maintenance and staff involvement, DRP minimum IS processing requirements, top management commitment to DRP, prioritization IS functions/services, external, off‐site back‐up system, and internal, and on‐site back‐up system.

Originality/value

This paper determines success factors based on a set of decision variables gathered from an extensive literature review in DRP in information systems.
Consumer motivations in taking action against spyware: an empirical investigation
Authors: Gurung Anil , Luo Xin , Liao Qinyu
Published: July 2009

Purpose

The purpose of this paper is to develop a research framework and empirically analyze the factors that motivate the consumers to adopt and use anti‐spyware tools when they are faced with security threats.

Design/methodology/approach

The research model was tested with data obtained through online survey questionnaires. A pre‐ and a pilot‐test of the survey instrument are conducted. Then, a final five‐point Likert scale instrument is created. The solicitation for participants is done through e‐mail invitations. Survey results are analyzed using factor analysis and logistic regression.

Findings

The results do not find statistically significant relationships for hypotheses related to perceived vulnerability and response cost with the dependent variable. Perceived severity, self‐efficacy, and response efficacy are significantly related to use of anti‐spyware tools.

Research limitations/implications

The empirical findings suggest that protection motivation theory (PMT) may possibly provide a new avenue in the domain of IS adoption. In addition to the usefulness and ease of use in the classical IT adoption models, the threat appeal factors are added in this study to provide a different perspective in understanding technology adoption behavior.

Practical implications

The findings provide insights for business managers and information security professionals attempting to deliver to and implement security mechanisms like anti‐spyware among end‐users who are faced with security threats.

Originality/value

While theories such as technology acceptance model, theory of planned behavior and theory of reasoned action are insufficient to gauge consumers' attitude and behavioral change toward the adoption of anti‐spyware tools when consumers are confronted with threats, this paper provides theoretical support and contributions to the research based on applying PMT in the arena of information systems.
On consolidation model in e‐bill presentment and payment
Authors: Vincent Olufunke , Folorunso Olusegun , Akinde Ayodele
Published: July 2009

Purpose

The purpose of this paper is to develop a multi‐user electronic bill presentment and payment (EBPP) model that would enhance the present billing systems as well as overcome the problems of periodic generation of billing reports and mail volumes.

Design/methodology/approach

The paper evaluates three existing models of EBPP: Biller‐direct, consolidation, and invited pull models and identifies their limitations. Then, the thin consolidation model approach is modified by developing an Extensible Hypertext Markup Language based architecture that is capable of consolidating billing reports from a variety of disparate heterogeneous sources. The modified model is implemented using two case studies.

Findings

The modified consolidation model of the EBPP enhances quick subsequent notification of bills to the consumer for goods or services previously rendered. In the model, a user could pay for multiple services rendered by companies; this in turn overcomes mail volumes.

Originality/value

This paper develops a data integration and unification architecture that will allow billing reports from multiple billers to be integrated into a unified database.
Knowing and learning in practice‐based studies: an introduction
Authors: Gherardi Silvia
Published: July 2009

Purpose

The aim of this introduction to the special issue is to furnish a panorama on how practice‐based studies (PBS) concerned with organizational learning have developed in recent years, and to describe the topics that such studies have debated.

Design/methodology/approach

The articles in this special issue were first presented at the standing working group on “Practice‐based Studies of Knowledge and Innovation in Workplaces” of the European Group for Organizational Studies, and will therefore provide the background to PBS and an idea of its methodology.

Findings

The practice‐ based approach may be useful for: a renewed conception of organization as a texture of interrelated practices which extend to form an action‐net sustained by a knowing‐in‐action which renews itself and transforms itself into being practiced; a renewed conception of knowledge as a situated, negotiated, emergent and embedded activity; a renewed conception of materiality as a form of distributed agency and an intimate relationship with humans; a methodology for analysis of the new forms of work as knowing‐in‐practice; and a lexicon which comprises new expressions and concepts for the renewal of organization studies.

Research limitations/implications

The special issue does not represent an extended review of the literature on PBS.

Originality/value

This paper offers an overview of an emergent field of studies.
Materiality in a practice‐based approach
Authors: Svabo Connie
Published: July 2009

Purpose

The paper aims to provide an overview of the vocabulary for materiality which is used by practice‐based approaches to organizational knowing.

Design/methodology/approach

The overview is theoretically generated and is based on the anthologyKnowing in Organizations: A Practice‐based Approachedited by Nicolini, Gherardi and Yanow. The overview is built by cross‐reading the analyses in this book. The intellectual traditions which are scrutinized all agree that action is materially embedded – objects and artifacts are central to both knowing and learning. But what is their understanding of materiality? The paper explores which concepts are used, how the interaction between social and material realities is presented, and the role materiality is perceived to have in relation to action.

Findings

Findings are that, within the practice‐based approach, common terms for materiality are “artifact” and “object”. The interaction between social and material realities is grasped as several processes: object‐oriented activity, symbolization, embodiment, performance, alignment and mediation. Material artifacts both stabilize and destabilize organizational action. They may ensure coordination, communication, and control, but they may also create disturbance and conflict.

Originality/value

The paper lists a range of options for conceptualizing how organizational action may be materially mediated. It points out that material entities may both stabilize and destabilize organizational action. It contributes to the further understanding of the tangible, artifactual and object‐related side of organizational knowing.
The active role of instruments in articulating knowing and knowledge
Authors: Labatut Julie , Aggeri Franck , Astruc Jean‐Michel , Bibé Bernard , Girard Nathalie
Published: July 2009

Purpose

The purpose of this paper is to investigate the role of instruments defined as artefacts, rules, models or norms, in the articulation between knowing‐in‐practice and knowledge, in learning processes.

Design/methodology/approach

The paper focuses on a distributed, knowledge‐intensive and instrumented activity at the core of any collective action: qualification. The particular case of breeding activities in the livestock sector has been studied, where collective practices of animal qualification for collective breeding have been studied. Qualitative data stemming from in‐depth interviews and observation of daily practices have been analysed, combining practice‐based approaches on knowing processes and science philosophers' theories on the use of instruments during action.

Findings

The study of instruments used in daily practices allows us to go beyond the dichotomy between opposite types of knowledge, i.e. scientific knowledge seen as a stock, and sensible knowledge seen as purely tacit and equated to non‐instrumented practices. Instruments are not merely mediators in learning processes; they also take an active part in shaping and activating knowledge and learning processes.

Research limitations/implications

Further research is needed on the designing of reflexive instrumentation, which takes knowing and knowledge articulation into account better.

Practical implications

Using instruments as a key concept to analyse knowing‐in‐practice processes has both methodological and managerial implications for identifying those instruments that favour learning processes.

Originality/value

This paper complements more classical practice‐based approaches by proposing a new perspective on instruments in learning processes, which is particularly relevant to the study of pluralistic organisations where power is diffuse.
Tinkering with material resources
Authors: Styhre Alexander
Published: July 2009

Purpose

Ethnographic studies of, for instance, laboratory work show that practices never reach a full closure but are always open to contingencies and ambiguities, making it possible to accommodate new empirical findings. The aim of the paper is to demonstrate that this is true also for less “high‐brow” work in, for example, the construction industry

Design/methodology/approach

A case study of a Swedish rock construction company is reported.

Findings

The study suggests that activities accruing less prestige than scientific laboratory work also share this basic openness. In rock construction work, there is always uncertainty involved when engaging material resources such as equipment, tools and technologies and when exploring literary previously unknown ground. Practice is therefore what is of necessity and is simultaneously enclosed in terms of drawing on a relatively stable specific set of know‐how, routines, beliefs, and norms, while remaining attentive to emerging events.

Practical implications

Any practice must be regarded as resting on detailed know‐how and experience and therefore the management of seemingly “low‐skilled work” needs to be reconsidered as what is demanding informed vocabularies and insight in to the domain of practice.

Originality/value

In theoretical terms the paper bridges practice theory, science and laboratory studies, and theory about construction work. In addition, the empirical study reported calls for a revaluation of the term “low‐skilled work”.
Emerging interdisciplinary practice: making nanoreactors
Authors: Sutherland Olsen Dorothy
Published: July 2009

Purpose

The paper aims to gain a better understanding of how different disciplines work together to develop new technologies.

Design/methodology/approach

The study employs qualitative methods in the form of semi‐structured interviews and observations. A socio‐cultural approach is taken and the concept of the activity system is used to examine emerging practices.

Findings

In the process of creating common practices the community overcomes some of the challenges normally associated with disciplinary diversity. What develops cannot really be described as a convergence of knowledge, more as an intertwining of work practices.

Research limitations/implications

Although only tentative conclusions can be drawn from a single case study, the findings may have implications for the organisation of multidisciplinary tasks.

Originality/value

The paper suggests a conceptualisation of emerging interdisciplinary practice and provides a descriptive account of knowledge creation in a new field within nanosciences and nanotechnologies.
Proposal sequence and the endowment effect in negotiations
Authors: Galin Amira
Published: July 2009

Purpose

The purpose of this paper is to investigate whether changing the sequence of proposals during negotiations and changing the order of the responding options might minimize the endowment effect, therefore producing a better chance at reaching an agreement.

Design/methodology/approach

The study includes four versions of questionnaires comprised of two identical proposals (one gain and one loss) in reversal sequences, and two identical reimbursement options in reverse order. The four versions aim to allow for a combined investigation of the impact of proposals sequence and the reimbursement options sequence on the endowment effect. Each of the study's 814 participants received one of the four questionnaires. Based on both framing and contrast effects, it is hypothesized that the sequence of proposals – when the first one is conceived as a loss and the second as a gain – has a moderating impact on the endowment effect.

Findings

The findings show a significant endowment effect as a high demand inducer in negotiations, and a significant impact of the proposals sequence as a factor that reduces the endowment effect. However, no significant impact of the responding options' order on the endowment effect was found.

Practical implications

The study contributes to the understanding of the impact of proposal sequence in negotiations. Negotiators who understand how to utilize the proposals sequence may lead the negotiation to a concessionary atmosphere.

Originality/value

The paper focuses on the application of the framing and contrast effects to the negotiation process, as well as highlighting the negotiation process, whereby negotiators' insight about the proposal sequence may lead to a better outcome.
Conflicts in top management teams and team/firm outcomes
Authors: Liu Jun , Fu Pingping , Liu Songbo
Published: July 2009

Purpose

The purpose of this paper is to examine how different conflict‐handling approaches moderate the relationship between conflicts and TMT as well as firm performance by adopting the Thomas terminology.

Design/methodology/approach

CEOs, TMT members, and lower‐level employees of 200 firms in the telecommunication industry in Mainland China were surveyed. Survey data collected from 123 CEOs, 442 TMT members, and 894 employees and archival data of firm performance were matched for hierarchical regression modeling (HRM) analyses.

Findings

Results show relationship conflict reduces team cohesiveness and both relationship and task conflicts are negatively related to firm performance. With relationship conflict, the results show using compromising approach could help reduce its negative effects on TMT cohesiveness and firm performance; but avoiding either type of conflict will undermine both team and firm outcomes. Accommodating approach does not have significant moderating effect on conflict‐outcome relationships.

Research limitations/implications

The study reveals some interesting insights, but it does not include any contextual variables such as firm culture or team norms or climate which are shown to relate to both conflict types and conflict management approaches.

Originality/value

By examining the interplay between conflict types and conflict management approaches, the paper offers interesting insights into the connection between nature of conflicts, conflict management, employee‐rated TMT effectiveness, and objective firm performance.
Relationship, task and process conflicts on team performance
Authors: Martínez‐Moreno Edurne , González‐Navarro Pilar , Zornoza Ana , Ripoll Pilar
Published: July 2009

Purpose

The purpose of this paper is to examine which communication contexts – virtual or traditional interactions – is more disruptive or beneficial to the effects of intragroup conflicts on team performance.

Design/methodology/approach

A laboratory experiment was conducted comparing 22 face‐to‐face (FTF) teams, 22 videoconference (VC) teams and 22 computer‐mediated communication (CMC) teams over a month.

Findings

Results showed that VC teams are the highest performing teams and CMC teams the lowest. However, when task conflict increases VC team performance diminishes at the first stage of the teamwork. FTF team performance is also improved by task conflict, but also by process conflict. After a period where team members develop teamwork experience, relationship conflict and process conflict damage more seriously team performance in CMC teams than in FTF teams. In conclusion, traditional teams and virtual teams behave in different ways, but also there are differences between VC and CMC teams.

Research limitations/implications

This study concludes with a discussion of the obtained results in terms of their implications for traditional and virtual team managers, taking into account the limitations provided by the student sample used.

Originality/value

The paper sheds light on the beneficial impact of task conflict and process conflict on team performance in traditional contexts in several stages of teamwork, and it provides new evidence for hopeful expectations for virtual teams.
Gender and creation of value in mixed‐motive negotiation
Authors: Miles Edward W. , LaSalle Margaret M.
Published: July 2009

Purpose

The purpose of this paper is to present how previous research has shown that, in negotiations that have integrative potential, men negotiate greater outcomes than do women. The primary purpose of this set of studies was to determine whether gender difference could be attributed to more effective performance in dividing value, more effective performance in creating value, or both.

Design/methodology/approach

In study 1, participants negotiated a case situation that had integrative potential. Participants were randomly assigned to a side of the case and to a negotiation counterpart. This provided a comparison of all possible dyad gender combinations – female‐female, female‐male, and male‐male. Statistical tests included actor‐partner interdependence model (APIM) analysis, ANOVA, χ2, and t‐tests. Study 2 replicated a sub‐set of the study 1 tests using a different sample and a different negotiation case situation.

Findings

Male‐male dyads created more value than female‐female dyads in both study 1 and study 2. No differences were found in the proportion of the negotiation “pie” claimed by men versus women. These combined results indicate that, in mixed‐motive negotiations, gender differences in individual‐level outcomes are a function of the amount of value created by the dyad, not in differences in the division of value.

Originality/value

The paper extends research regarding gender and negotiation performance by pinpointing that, while men obtain greater outcomes than women in negotiations that have integrative potential, the difference in outcomes emanates from differences in creating value, not from differences in dividing value.
The effects of ethical climate on group and individual level deception in negotiation
Authors: Stawiski Sarah , Tindale R. Scott , Dykema‐Engblade Amanda
Published: July 2009

Purpose

The purpose of this paper is to investigate the effects of ethical climate on the use of deception during negotiation for both individuals and groups. It aims to focus on the use of “ethical climate” as a shared task representation at the group level.

Design/methodology/approach

Participants were 458 undergraduate students who earned course credit. Participants engaged in a simulated negotiation task about the selling/purchase of a new car, via an instant messenger program. Those assigned to the “seller” role either negotiated individually or as a three‐person group, and received one of three ethical climate manipulations (honesty, competitive, or control). The main dependent variable was whether the seller(s) disclosed information about a possible defect.

Findings

As predicted, groups were less honest than individuals. Participants in the honesty condition were most likely to be honest while those in the competitive condition were the least likely to be honest, although this difference was not statistically significant. Finally, there was a significant interaction effect between size of negotiating party and ethical climate indicating that groups' “default” response was to lie, but they lied significantly less often in the “honesty” condition. Alternatively, individuals' default response was to be honest.

Practical implications

Decision‐making groups have a tendency to compete even if it means being dishonest. However, organizations can help to overcome this tendency by establishing an ethical climate.

Originality/value

While there have been studies published on the effects of ethical climate on decision making at the individual level, there is a gap in the literature on these effects at the group level. Decisions are made at the group level too often to not pay attention to these differences.
Competitive business advantages in the era of Unified SuperConvergence
Authors: Bonometti Robert J.
Published: July 2009

Purpose

The purpose of this paper is to examine opportunities for businesses to derive competitive advantages from broadband wireless products and services in the coming era of Unified SuperConvergence.

Design/methodology/approach

Unified SuperConvergence is defined as a term of art that extends the concept of digital convergence in several ways that are discussed in the paper. Six major technology domains are identified as being highly important elements of this future era, and recent works are referenced to establish technology benchmarks for each domain. Examples of technologies and discussion of their potential usage in business operations are provided.

Findings

Implications of future wireless products and services are discussed from the perspectives of generic business operations as well as for three representative vertical industry segments. The main conclusion to be derived from the discussion in this paper is that the necessary interdependent and underlying enabling technologies and standards are now in place, and market forces are primed and ready to fuel explosive growth in wireless products and services for mobile business applications.

Research limitations/implications

Although an extensive set of over 200 references and resources are cited in the discussion of the six enabling technology domains, this set is not exhaustive and could be extended.

Practical implications

The arena of Unified SuperConvergence represents highly fertile ground for near‐term competitive advantages to be exploited by business firms.

Originality/value

This paper defines a new term of art, Unified SuperConvergence, and discusses six major enabling technology domains that underlie it. An extensive set of literature references is provided to document and extend the foundations for ideas discussed in the paper, as well as to help stimulate and turbo‐charge the reader's thinking about where mobility technologies are taking us, and how businesses can exploit the tremendous opportunities that the future era of Unified SuperConvergence will provide.
Location strategy for competitiveness of special economic zones
Authors: Dhingra Tarun , Singh Tripti , Sinha Ambalika
Published: July 2009

Purpose

The purpose of this paper is to develop a framework for the firms located inside special economic zones (SEZs) in India and to assess the effect of location on competitiveness of the firm.

Design/methodology/approach

A literature review is done to identify the variables and intermediate variables including sub‐variables which affect the location competitiveness of the firm that leads to superior firm performance. Literature support for all the variables in the framework is discussed to establish a logical sequence.

Findings

Hypotheses are formulated in a sequential framework to draw relationships between location of a firm in an SEZ as latent function, intermediate functions, and superior firm performance as a dependent function.

Research limitations/implications

This developed framework is yet to be empirically tested. Such a paper can be applied in manufacturing industries located in an SEZ.

Practical implications

Location competitiveness is an important strategic decision for industries. The paper on location strategy for competitiveness of SEZs helps in identifying a framework including various prepositions that lead to superior firm performance.

Originality/value

The value of the paper lies in its attempt to propose a relationship between firm location and its effect on firm competitiveness. The approach emphasizes multiple interrelationships between sets of variables and also suggests a quantitative research methodology, i.e. structured equation model, to test empirically.
National standards strategy: public/private cooperation for global competitiveness
Authors: Hemphill Thomas A.
Published: July 2009

Purpose

Establishing timely national product design standards is an important cooperative activity capable of capturing economic benefits from having the national product design standard adopted for global commerce. The purpose of this paper is to undertake an exploratory analysis of five global economic powers' – Canada, Germany, Japan, the UK, and the USA – national standards strategy (NSS), comparing them for commonality in institutional standards setting policy approaches, i.e. there should be a general “convergence” in specific NSS policy initiatives among similar, economically developed countries.

Design/methodology/approach

The five national standards strategies are evaluated for distinctive policy initiatives, with common policy initiatives combined, resulting in 18 distinctive policy initiatives found among the surveyed population. Each national standard strategy is then compared to the 18 policy initiatives, with commonality recorded.

Findings

Contrary to any preconception that economies considered comparable in economic development would tend to converge around similar NSS policy initiatives, the evidence reveals there is less harmonization (the results show convergence is overwhelmingly in the moderate/low categories – 14 policy initiatives, or 77.8 percent), with initial evidence indicating that the degree of public or private institutional involvement in technology standards setting may affect the types of policy initiatives included in a NSS.

Research limitations/implications

The paper is exploratory in nature, with only five nation‐states in the survey.

Practical implications

The paper provides insight into: the strength of a country's NSS versus a competitor nation; and public and private sector development of the national innovation system.

Originality/value

The paper offers an exploratory evaluation of harmonization of NSS across countries and its significance to the national innovation system and global competitiveness.
Airline alliances
Authors: Saglietto Laurence
Published: July 2009

Purpose

The purpose of this paper is to present global airline alliances from a complementary and original angle to the existing works: “specific social networks”. “Social” as it is an inter‐organisational network through business relations between airline companies and “specific” as these are formal relations of contractual types (joint marketing, code sharing agreements, etc.).

Design/methodology/approach

It is an empirical study, about cooperation agreements between global regular airlines, over a time period of six years from Airline Business Review database. The graph theory is used to measure social network and graphics representation for illustrations.

Findings

The results show that there is a real process of social embeddedness correlated to the airline alliances members' experiences. Their structuring as networks varies in time following a life cycle and their specific morphologies affect their performance.

Practical implications

The paper proposes numerous measures to approach the structure of airline alliances and graphics representations to illustrate networks.

Originality/value

The paper draws a synthesis from the morphology and morphogenesis of airline alliances, proposing thereby some of their structural properties which have an impact on their competitiveness.
Engaging embedded information
Authors: Thompson Michael P. , Jensen Robert J. , DeTienne Kristen
Published: July 2009

Purpose

The purpose of this paper is to propose a model of knowledge transfer that takes into account both the perspective of the sender and the perspective of the receiver, with an emphasis on the latter. The contention is that, although externalizing knowledge residing in an individual or group and making it accessible to others either through direct communication or embedding information in the organizational system is a necessary component of knowledge transfer, it is not the only component. An equal, but understudied, share of the knowledge transfer effort takes place when the receiver of the knowledge engages with it, internalizing it and making it usable for the receiver as well.

Design/methodology/approach

The paper first defines knowledge from a pragmatic, organizational perspective. Second, it presents the model. Finally, it evaluates the current direction of knowledge transfer studies in light of the main tenets of the model.

Findings

Engagement of information is a necessary step before knowledge can be effectively transferred to a receiver. Engagement is defined as an act whereby the receiver of the information actively uses the information by applying it to specific tasks.

Practical implications

Companies should be aware that there is a tendency to under‐invest in engagement and over‐invest in embedding information.

Originality/value

The model differs from current models in that it proposes that in virtually no case is the interplay a zero sum game. In most cases, investing more in embedding information requires investing more in engaging the information.
Post‐loan credit risk: an analysis of small business in southern Arkansas
Authors: Casey K. Michael , Selwyn Ellis T. , Linn Gary , Griffin Ken
Published: July 2009

Purpose

The purpose of this paper is to identify pre‐loan factors that ultimately impact post‐loan risk ratings of small business in southern Arkansas.

Design/methodology/approach

Ordinary least squares linear regression analysis is conducted on small business data to determine which factors contribute to higher post‐loan credit risk ratings.

Findings

Businesses with records of loan repayment and personal financial assets at stake are more likely to be assigned better credit risk ratings. Additional analysis indicates that businesses with no past due collections or judgments, having good trade references, a profitable business, and not operating in a volatile industry are much more likely to result in loans ultimately receiving good post‐loan performance marks and lower risk ratings.

Research limitations/implications

This paper has a small sample of firms in a historically economically depressed region. While the relevant factors seem intuitive they may not apply to other regions and/or larger businesses.

Practical implications

Results of this paper may be interesting to loan officers of banks and other lenders, particularly in this region given the current financial crisis.

Originality/value

This paper is the first to analyze actual data from small businesses in southern Arkansas. The results may help the organizations attempting to aid economic development in this region.
Ignoring the lessons for effective prudential supervision, failed bank resolution and depositor protection
Authors: Garcia Gillian G.H.
Published: July 2009

Purpose

The purpose of this paper is to establish three sets of principles – the first for effective prudential supervision of financial institutions; the second for the timely resolution of failed institutions and the management of financial crises; and the third for the successful protection of deposits. It also aims to show how these principles have been eschewed, especially in the USA and the UK.

Design/methodology/approach

The first set of principles and examples of their violation are determined from material loss reviews conducted by agency inspectors general, government reports, and academic research. The second set of principles is derived from International Monetary Fund practice and research; violations are those reported in government reports, published research, and press articles. The third set of principles is chosen from those proposed by the Basel Committee on Banking Supervision and the International Association of Deposit Insurers. Violations are those reported in academic and practitioner research and the press.

Findings

Many of the three sets of principles have been ignored in the current financial crisis.

Research limitations/implications

Experience in previous crises has shown that eschewing these principles delays the resolution of individual failed institutions, increases resolutions costs, and delays the recover from the crisis. If the legal and regulatory system is to be reformed appropriately to prevent a recurrence, future research must discover the reasons why the principles have not been followed.

Originality/value

The paper assembles three sets of principles and instances where they have been violated in order to help policymakers, practitioners and researchers to focus on where and what reforms are needed to prevent a recurrence of the current severe financial crisis.
A new standard for deposit insurance and government guarantees after the crisis
Authors: Campbell Andrew , Raymond LaBrosse John , Mayes David G. , Singh Dalvinder
Published: July 2009

Purpose

The purpose of this paper is to explore the arrangements that have been used in the present crisis and their relative success and to look to the post‐crisis situation.

Design/methodology/approach

The paper examines and explains the crisis and the roles of deposit insurance and government guarantees. It deals with coverage, funding, institutional structure, speed of payout, incentives, accountability and, in particular, considers how such systems should function in a world of cross‐border institutions.

Findings

The paper suggests how such principles and standards should be set either through International Association of Deposit Insurers or some more efficient means to complement an international approach to financial stability being addressed by the Basel institutions.

Originality/value

There is no widely accepted standard over what the reformed financial system safety net should look like with respect to the protection of deposits and the wider guaranteeing of creditors and other stakeholders. This paper, therefore, makes an attempt to fill that gap.
Bankruptcy and reorganization procedures for cross‐border banks in the EU
Authors: Garcia Gillian G.H. , Lastra Rosa M. , Nieto María J.
Published: July 2009

Purpose

The purpose of this paper is to examine the complexities of reorganizing and/or liquidating troubled banks under the European Union's (EU) current institutional framework as it is defined by its directives and by national supervisory, remedial, and insolvency practices.

Design/methodology/approach

The paper compares provisions of different EU directives that impact financial institutions and summarizes national remedial practices.

Findings

The paper documents the diversity that currently exists among national supervisory, remedial and failure resolution practices for banks. It also assesses the economic efficiency of the institutional framework for resolving problem banks that is defined by the Reorganization and Winding‐up Directive and identifies components of the directive that can hamper efficient cross‐border resolutions.

Research limitations/implications

There is a deficiency in publicly available information on EU member countries' practices for disciplining and resolving troubled banks.

Practical implications

The paper assesses issues/conditions that can hamper efficient cross‐border resolutions – issues on which policymakers should focus when they reform the current framework. It also explores areas of coordination with other EU directives that deal with financial crisis management that are relevant in the current financial crisis.

Originality/value

The paper makes policy recommendations for reforming the EU's current institutional framework for resolving troubled banks.
Special bank resolution and shareholders' rights: balancing competing interests
Authors: Hüpkes Eva
Published: July 2009

Purpose

An effective bank resolution regime requires taking action while the bank still has positive net worth and shareholder claims still have economic value. Such actions raise a number of legal issues with respect to the rights of shareholders. This paper aims to consider how to strike a balance between the need to protect the legitimate rights of shareholders and the need for a prompt and rapid action and a failure resolution mechanism that minimizes disruptions to the financial system and preserves market discipline.

Design/methodology/approach

The paper examines the nature of the shareholders' rights and the legal protection afforded to them. In the European context, the relevant sources of law are the European Convention on Human Rights and the applicable community legislation. It considers different options for resolution within this framework ranging from a pre‐packaged resolution decided by the shareholders ex ante to the outright divestiture of the shareholders once certain regulatory thresholds are breached while the bank still has positive net worth.

Findings

The curtailment of shareholder rights should seek to generate appropriate incentives for shareholders and other stakeholder and achieve broad objectives of enhancing predictability and maintaining public goods, while at the same time providing for due process, proportionality and adequate compensation.

Practical implications

The paper presents options on how to reform existing frameworks in order to facilitate bank restructurings in a crisis.

Originality/value

The paper discusses key elements that policy makers need to consider in the design of a regulatory framework for early intervention and resolution.
Retail depositors, conduct of business and sanctioning
Authors: Cartwright Peter
Published: July 2009

Purpose

The purpose of this paper is to consider whether a move from self‐regulation in the form of the Banking Code to statutory regulation by the Financial Services Authority (FSA) of retail banking conduct of business is to be supported.

Design/methodology/approach

The paper begins by examining the nature of the self‐regulatory process and then considers its strengths and weaknesses in the context of the Banking Code. It then looks at the changes proposed by the FSA. Focusing in particular on the issue of enforcement, the paper contrasts the powers of the Banking Code Standards Board and the FSA.

Findings

The paper concludes that, while a move to statutory regulation is to be supported, there is concern about whether such a move will bring the benefits that might have been expected.

Practical implications

More attention needs to be paid to the ways that different forms of regulation operate in practice, with empirical research particularly valuable.

Originality/value

The paper adds to the (relatively brief ) literature on consumer protection in banking, and the even briefer body of research on self‐regulation.
The role of the Fannie Mae/Freddie Mac duopoly in the American housing market
Authors: Reiss David
Published: July 2009

Purpose

The purpose of this paper is to provide a brief introduction to the role of the Fannie Mae/ Freddie Mac duopoly in the American housing market.

Design/methodology/approach

First, the paper defines the “government sponsored enterprise,” which is the type of hybrid public/private entity that Fannie and Freddie are and provides an introduction to the other significant government sponsored enterprises. It then explains what Fannie and Freddie do in the American mortgage market and provides a brief history of how the two companies developed. Finally, it evaluates the two companies as duopolists in the conforming mortgage market.

Findings

The paper concludes by suggesting that the current financial crisis presents an opportunity to rethink whether the Fannie/Freddie duopoly continues to serve the public interest.

Research limitations/implications

Because of its length, the paper does not review alternative approaches to the status quo that the US Government can take to ensure that it has a stable federal housing finance policy.

Practical implications

The paper argues that the current financial crisis provides an opportunity to revisit the design of the structure of the US housing finance market.

Originality/value

The paper sets forth the rationale and legal basis for characterizing Fannie Mae and Freddie Mac as duopolists.
FSA challenge in Court of Appeal to finding of Financial Services and Markets Tribunal on question of whether solicitors' firm had contravened financial promotion regime
Authors: Gray Joanna
Published: July 2009

Purpose

The purpose of this paper is to look at a recent Financial Services Authority (FSA) challenge in the Court of Appeal to finding of Financial Services and Markets Tribunal on question of whether solicitors' firm had contravened financial promotion regime (FSA v. Fox Hayes: Court of Appeal (civil division): Lord Justice Longmore, Lord Justice Wilson, Lord Justice Lawrence Collins).

Design/methodology/approach

Examines the FSA's various grounds for appeal and what was an appropriate level of penalty.

Findings

Provides the court of appeal's decisions on point of law in relation to three issues.

Originality/value

This paper will be of interest to regulated firms who fear the consequences of regulatory liability for breaches of FSA rules.
Banks governance and public‐private partnership in preventing and confronting organized crime, corruption and terrorism financing
Authors: Hardouin Patrick
Published: July 2009

Purpose

The financial sector is critical for the effectiveness of the fight against organized crime, corruption and terrorism. The purpose of this paper is to discuss principles of governance of the sector and the complexity of the activities targeted. Its aim focuses on the need for public‐private partnership.

Design/methodology/approach

The paper is based on a definition of the strategic situation of the financial sector, a review of basics of its governance at global and firms levels and an analysis of activities targeted. It discusses global harmonization versus local diversity; know your customer principle, separation of the compliance function, definition of risks; difficulties of investigation, facets of organized crime, “follow the money” principle and terrorism; size of terrorist and organized crime money, money laundering and terrorist financing; chain of terrorist financing (sourcing, moving including reverse money‐laundering and Hawala, storing, using funds); relationship between organized crime and terrorism; complementary roles of informal and legal channels. This leads to the definition of the role of states and of the financial industry and of their cooperation.

Findings

A public‐private partnership is needed, based on anti‐terrorism networking and a strategy for cooperation aiming at reinforcing national and private capabilities with respect and adaptation of the legal framework.

Research limitations/implications

Based on an in‐depth investigation of terrorism financing and links with organized crime, the paper does not investigate corruption finances.

Practical implications

The paper gives a design of the practical content of a strategy for public‐private cooperation.

Originality/value

The paper provides banks and public agencies with an integrated analysis of the need for public‐private partnership and of its content.