bluuebunny/crossref_metadata_2025 huggingface dataset:
Typology of condition based maintenance
Authors: Veldman Jasper , Wortmann Hans , Klingenberg Warse
Published: June 2011

Purpose

The purpose of this paper is the development of an empirically based typology of condition based maintenance (CBM) approaches, including the relevant characteristics and requirements.

Design/methodology/approach

An exploratory case study was conducted in a major gas production facility. The CBM typology that resulted from this case study was subsequently tested against a large set of CBM literature.

Findings

In the literature, CBM is usually presented as a single theory or practice. The paper finds that CBM in fact includes several different approaches and that each of the approaches is only suitable in situations where the specific characteristics of the approach match the situational characteristics. Aided by these findings, a new typology for CBM was developed. The typology is based on the method for obtaining the expected value, or trend (through statistical vs analytical modeling) and the type of data used (process vs failure data). A subsequent literature survey reveals that the proposed typology is applicable for the categorization of a large number of CBM cases found in the literature.

Practical implications

One of the most important requirements in selecting and using a CBM approach is the availability and integration of various types of knowledge, in particular process engineering and maintenance engineering knowledge. Practitioners can use these insights to assess current CBM cases, and identify the key characteristics of current and future use of various CBM types.

Originality/value

This paper presents a novel and empirically based framework for the classification of the different CBM types. Such frameworks were lacking in the current literature. The paper adds to maintenance engineering literature by identifying the key dimensions of the various types along with their key requirements.
Reliability and availability analysis of a robot‐safety system
Authors: Cheng Shen , Dhillon B.S.
Published: June 2011

Purpose

The purpose of this paper is to study reliability, availability, and mean time to failure of a repairable robot‐safety system composed of n robots, m safety units, and a perfect switch.

Design/methodology/approach

Generalized expressions for system state probabilities, system availability, reliability, and mean time to failure are developed. Supplementary variable and Markov methods were used to develop these expressions.

Findings

This study clearly demonstrates that backup robots, safety units, and the repair process help to improve system availability.

Practical implications

This study will help maintenance engineers and reliability practitioners to become aware of the combined effect of backup robots, safety units, and the repair process on the performance of the robot‐safety system. Consequently, they will make better maintenance related decisions in organizations that make use of robots.

Originality/value

This paper has studied the effects of having redundant robots, safety units, and the repair facilities on the performance of a robot‐safety system with perfect mechanism to turn on a safety unit. This is one of the first attempts to study the combined effects of all these factors on a robot‐safety system.
SFAS No. 159
Authors: Xu Li , Tang Alex
Published: June 2011

Purpose

The purpose of this paper is to examine the timing and the determinants of electing Statement of Financial Accounting Standard (SFAS) No. 159 in the banking industry.

Design/methodology/approach

The authors hypothesize certain factors that will potentially affect banks' election decisions and separate banks into three groups: early electors, late electors and non‐electors by hand‐collecting the election decisions and the timing of the election decisions. Univariate and logit rank regressions are used to identify the determining factors between electors (vs non‐electors) and between early electors (vs late electors).

Findings

The authors find that compared to banks not electing SFAS No. 159 (non‐electors), banks electing SFAS No. 159 (early electors as well as late electors) face greater earnings pressures, have less volatile earnings and larger size, and are active in hedging activities. In addition, compared to banks electing SFAS No. 159 at required election date (late electors), banks electing SFAS No. 159 early (early electors) have weak financial strength, less volatile earnings, and are more likely to be audited by non‐Big‐4 auditors.

Research limitations/implications

The study only focuses on the banking industry, so the results from may not be generalized to other industries. Future studies could explore how SFAS No. 159 impacts firms in different industries.

Originality/value

The authors' overall results suggest that the banks might have many considerations in mind when they elect to use SFAS No. 159. The results provide useful information for regulatory bodies to evaluate the efficacy of issuing the standard. Early electors could have exploited the opportunities provided by the transition provisions of this standard to boost their regulatory capital ratios.
Outside CEO directors on compensation committees: whose side are they on?
Authors: Li Haidan , Qian Yiming
Published: June 2011

Purpose

The purpose of this paper is to examine whether outside CEO directors sympathize with the company CEO due to their similar positions and prestige, and make decisions in favor of the company CEO. Specifically, the authors investigate how outside CEO directors serving on the compensation committee influence CEO compensation.

Design/methodology/approach

The authors investigate how outside CEO directors on the compensation committee impact the level and pay‐for‐performance sensitivity of CEO compensation. In addition, the relation between excess CEO compensation (attributable to outside CEO directors) and future firm‐operating performance is examined.

Findings

It is found that outside CEO directors on the compensation committee are associated with higher CEO compensation. However, excess CEO compensation attributable to outside CEO directors leads to poor future firm‐operating performance. Outside CEO directors are associated with higher CEO pay‐for‐performance sensitivity when the company experiences positive stock returns, but do not impact pay‐for‐performance sensitivity when firm performance is poor. Finally, when the company CEO has more influence on the board, outside CEO directors are more likely to serve on the compensation committee.

Originality/value

The paper is among the first to show that having outside CEO directors on the compensation committee might create agency problems and is costly to shareholders. The findings of the authors' study are relevant to current efforts of regulators and private sectors to enhance oversight of executive compensation.
Apparent audit failures and value relevance of earnings and book value
Authors: Dang Li , Brown Kevin F. , McCullough B.D.
Published: June 2011

Purpose

The purpose of this paper is to examine the value relevance of accounting information in cases of apparent audit failures.

Design/methodology/approach

The authors adopt the bootstrapping technique and compare the value relevance of key accounting information across samples of firms experiencing apparent audit failures with matched non‐audit failure firms.

Findings

Accounting information is found to be less value relevant for firms experiencing apparent audit failures, regardless of auditor reputation.

Research limitations/implications

This study has limitations due to the ex ante research approach adopted. Future research could address this issue by possibly incorporating an “intervening” factor into the model to indicate how the market can differentiate audit failure firms from other firms.

Originality/value

The paper gives support to the assertion that the market appears to rely less on accounting numbers when audit failures occur, even though formal allegations of audit failure may not appear until years after their occurrence. In addition to contributing to value‐relevance research by providing empirical evidence for the market phenomenon around the time of material misstatements, the paper demonstrates an innovative application of bootstrapping to test for differences in R2.
Corporate diversification and earnings management
Authors: Khanchel El Mehdi Imen , Seboui Souad
Published: June 2011

Purpose

The purpose of this paper is to find out whether corporate diversification provides a favourable environment for earnings management (agency conflicts hypothesis) or whether it mitigates this phenomenon (earnings volatility hypothesis).

Design/methodology/approach

Based on a sample of US firms and making an explicit distinction between industrial and geographic diversification, univariate and multivariate analyses are used to test whether firm diversification has an impact on earnings management.

Findings

Results show that the average diversified firm in the sample has somewhat more earnings management problems than a similarly constructed portfolio of stand‐alone firms chosen to approximate the segments of the conglomerate. Consistent with the agency conflicts hypothesis, the authors find that geographic diversification increases earnings management whereas industrial diversification decreases it, consistent with earnings volatility hypothesis. Moreover, industrial and geographic diversification combined reinforce this phenomenon. These findings are consistent with the view that the costs of geographic diversification outweigh the benefits.

Originality/value

The paper makes an important contribution to the accounting literature by providing new and significantly different evidence on the relative roles of corporate diversification in the earnings management. By linking two streams of research, earnings management and corporate diversification, one is taken into the unexplored area of the sources of the difference in earnings management between diversified and focussed firms. More specifically, this study provides evidence that earnings management is more intensively practiced in geographically diversified firms and even more so in firms that are both industrially and geographically diversified.
Multinational Enterprises Are Regional, Not Global
Authors: Rugman Alan M. , Brain Cecilia
Published: June 2011

A paradox of international business is that the multinational enterprises (MNEs) – which are the agents of international business – largely operate within their home‐base markets in each part of the “triad” of North America, the E.U. and Japan. Here, empirical evidence is presented across the 500 largest MNEs. It shows that even the 20 most “international” MNEs (those with the highest ratio of foreign‐to‐total sales) are mainly home‐triad based in their activities. We conclude that the strategic management of MNEs needs to be regionally focused, not global.
An Investigation of Asymmetric Earnings Forecasts of Japanese Financial Analysts
Authors: Mande Vivek , Wohar Mark E. , Ortman Richard F.
Published: June 2011

A number of U.S. studies have documented an optimistic bias in analysts’ forecasts of earnings. This study investigates whether the optimistic bias and asymmetric behavior of forecast errors found in most U.S. studies exists in Japan. We find that for firms reporting profits, Japanese analysts’ forecasts have much greater accuracy and exhibit a small pessimistic bias in comparison to firms reporting losses, where analysts’ forecasts exhibit extremely poor accuracy and an extremely significant optimistic bias. The lack of ability to forecast losses is due to their transitory nature and not due to earnings management. Forecast accuracy and bias are not related to firm size, but are related to the magnitude of reported lossess and profits.
Propensity for Participative Decision‐Making, Job Satisfaction, Organizational Commitment, Organizational Citizenship Behavior, and Intentions to Leave Among Egyptian Managers
Authors: Parnell John A. , “Rick” Crandall William
Published: June 2011

Relationships among job satisfaction, organizational commitment, organizational citizenship behavior, propensity for participative decision‐making (PPDM), and intentions to leave have been assessed in a number of studies of Western managers. However, there is a dearth of such research in non‐Western organizations. This study examines these relationships among Egyptian managers and suggests prospective directions for additional research in the field.
Environmental Scanning and Strategic Decisions in Multinational Corporations
Authors: Muralidharan Raman
Published: June 2011

This paper reports on an empirical study of the strategic decision consequences associated with environmental scanning by MNCs at the HQ‐FS level. The study focuses on decisions that relate to strategic change. After a review of theoretical arguments that relate environmental scanning with strategic change, hypotheses are developed and tested. Results are discussed in light of relevant works in the area, and implications for international management research and practice are noted.
Global Industry Profiling: Machine Tool Industry
Authors: Hill John S. , Marino Louis D. , Chae Myung‐Su
Published: June 2011

As their businesses globalize at increasing rates, managers need frameworks for analyzing industry activities on a worldwide basis. In this paper, a framework for global industry analysis is presented, using the machine tool industry to illustrate how industry overviews, global consumption and production analyses can be used to gain worldwide perspectives on industry behaviors. Breakdowns by company, segment, region and country markets help strategy formulation and resource allocations in the worldwide marketplace. Obtaining the right sorts of information is the key to insightful global analyses. The globalization of industry trade associations and on‐line business news services are major sources of worldwide industry developments.
Analysis of North Korea’s Foreign Trade: 1970‐2001
Authors: Choe Sang T. , Kim Suk‐Hi , Jeong Cho Hyun
Published: June 2011

In the first years following the Korean War (1950‐1953), the centrally‐directed economy of North Korea had been larger in per capita income and had grown more rapidly than the more loosely‐controlled economy of South Korea. However, in the absence of rational and strategic economic planning, these advantages soon reached their limits. By the mid‐1970s, South Korea’s two successful five‐year economic plans put it ahead of North Korea. Loss of allies in the early 1990s, consecutive floods in 1995 and 1996, and a severe drought in 1997 caused the North Korean economy to shrink in the 1990s. Thus, while North Korea had gradually reformed its troubled economic system since the early 1990s, these measures were different from market‐oriented reform. However, in July 2002, North Korea began to introduce the most significant liberalization measures since the start of Communist rule in 1948 (French, 2002). This paper discusses the performancde of North Korean foreign trade and offers suggestions for steps toward globalization to be taken by the country.
How Effective Is Arbitrage of Foreign Stocks? The Case of the Malaysia Exchange‐Traded Fund
Authors: Hughen J. Christopher
Published: June 2011

Unlike closed‐end country funds that usually trade at large premiums to the values of their portfolios, exchange‐traded funds facilitate arbitrage to prevent their prices from deviating from their underlying values. However, such arbitrage can involve significant transaction costs, which have caused some to question the ability of this arbitrage to reduce premiums. This study examines the premiums on the iShares Malaysia Fund, which is the only exchange‐traded fund that has experienced an extended suspension of arbitrage. The results illustrate the importance of arbitrage in providing the full benefits of international diversification associated with exchange‐traded funds that invest in foreign securities.
Determinants of Corruption: A Cross‐National Analysis
Authors: Park Hoon
Published: June 2011

The background literature survey points to the fact that the degree of corruption is a function of multiple factors of a society. Thus, it is imperative to take a more comprehensive and cross‐disciplinary approach to understand the complete picture of corruption. The research findings indicate economic freedom, socio‐political stability, tradition of law abidance and national cultures are the major variables that dictate the degree of corruption. This study expands the existing knowledge about the determinants of corruption and provides incremental information to help the policy makers fight against this cancerous social disease.
Assessing the Effect of Investment Barriers on International Capital Flows Using an Expert‐Driven System
Authors: Seddik Meziani Aboubaker
Published: June 2011

The analytic hierarchy process (AHP) is an expert‐driven system that has been applied to numerous fields but has yet to be applied to portfolio selection. This study shows how the AHP can be modeled to effectively assess barriers to cross‐border investments. It demonstrates that it is capable of effectively contributing to the selection of an optimal investment portfolio (OIP), herein a diversified portfolio composed of national markets where barriers to capital flows are least likely to adversely affect its return.
National Brand Identity & Its Effect On Corporate Brands: The National Brand Effect (NBE)
Authors: Paul Jaworski Stefan , Fosher Don
Published: June 2011

The power of culture, ethos, and just “being” within the living Brand of a nation is something each citizen on earth experiences every day. Yet, few stop to consider that, since the dawn of time, human beings have been radically affected by the Brands they live within – and verce versa. From the hunter‐gatherer group on the Serengeti, the ancient Egyptian nation built on the Nile, France Under Napoleon, newly emerging open‐society China, to today’s United States of America, human beings live within Brands and Branded systems that shape the way they act, think, and are perceived.
Brand Naming in China: Sociolinguistic Implications
Authors: Li Fengru , Shooshtari Nader H.
Published: June 2011

Applying brand names to international markets remains a challenge to multinational corporations. Consumers’ sociolinguistic backgrounds shape their responses to brand names. This paper uses a sociolinguistic approach as a conceptual framework in understanding brand naming and translating in the Chinese market. The approach promotes that sociolinguistics a) recognizes linguistic competence, b) advances symbolic values imbedded in linguistic forms, and c) renders attached social valence to cultural scrutiny. Three brand‐naming cases in China are presented for discussion, which may benefit multinational corporations on brand decisions involving Chinese consumers.
Internationalization and Performance: Traditional Measures and Their Decomposition
Authors: Hsu Chin‐Chun , Boggs David J.
Published: June 2011

Previous empirical results on the relationship between internationalization and firm performance have been mixed. Both monotonic and curvilinear relationships have been reported. Most recent studies have focused on different types of curvilinear relationships, such as inverted Ushaped, standard U‐shaped, and multiple waves. This paper utilizes a more current sample of firms than prior studies have used and decomposes traditional financial performance measures, applying two different measures of degree of internationalization, country scope and foreign sales as a percent of total sales (FSTS), to measure the effects on financial performance of different degrees of internationalization. Several financial performance measures, including traditional indexes (ROE and ROA) and a decomposition of traditional ones (Profit Margin, Total Asset Turnover), are examined.
The Effect of R&D Investments on Market Value of Firms: Evidence from the U.S., Germany, and Japan
Authors: Bae Sung C. , Kim Dongnyoung
Published: June 2011

This paper examines the effect of R&D investments on the market value of firms in the U.S., Germany, and Japan. Specially, this paper investigates the empirical validity of the widely‐held economic views that suggest that the stock‐market oriented U.S. financial system leads to more corporate myopia and hence to less longer‐term investments such as R&D than the bank‐oriented German and Japanese firms. Findings include that U.S. firms invest in R&D as much as their counterparts in Japan and Germany; the market places a significant and positive value on R&D investments by U.S. firms, though lower than German and Japanese firms; and there are notable differences among the three nations with respect to several other variables. The overall evidence lends little support to the corporate myopia view on U.S. firms.
Efficiency and Resilience of French Multinational Banks: Evidence From the Pre‐Euro Era
Authors: Chotigeat T. , Kramer Sebastien , Pyun C. S.
Published: June 2011

Large French banks have restructured over the last two decades responding to the evolution of the French banking system, European union integration, and globalization. Using financial time‐series and cross‐sectional data of three major French banks (Societe Generale, BNP Paribas, and Credit Lyonnais) from 1993 to 1999, this paper analyzes their performance. Our findings indicate that the French banks’ performance (return on equity capital ratio) was influenced negatively by total assets, the efficiency ratio, the Tier‐1 capital ratio, and loan loss provisions, but not at all influenced by non‐interest income (contrary to our hypothesis). When the French banks were compared their global counterparts, common factors explaining the performance of these banks are efficiency and total assets in at least 3 of the 6 countries.
The Contingency Framework of Foreign Entry Mode Decisions: Locating and Reinforcing the Weakest Link
Authors: Gao Tao
Published: June 2011

This paper delves into the mechanism of the contingency framework for foreign entry mode decisions and identifies two essential tasks that jointly determine the outcome of the entry mode decision. It then recognizes a critical weakness in previous research pertaining to the comparison of entry modes along a key decision criterion, the degree of control. Existing studies generally treat equity involvement as the only source of entrant control, while largely ignoring non‐equity sources of control (i.e., bargaining power and trust). Non‐equity sources of control, when underutilized, amount to missed opportunities, increased resource commitments, and heightened risk exposures in foreign markets. Drawing from a pluralism perspective in transaction and relationship governance, the author presents a more integrative method for the ranking of entry modes along the degree of control. The central message is that companies entering foreign markets should make an earnest effort to identify trust and bargaining power situations and fully utilize their control potential in making entry mode decisions.
What is the Shape of the Multinationality‐Performance Relationship?
Authors: Thomas Douglas E. , Eden Lorraine
Published: June 2011

Previous theoretical explanations and empirical analyses of the multinationality‐performance relationship have produced mixed arguments and results. Linear and inverted U‐shaped relationships have been theorized and confirmed empirically. Recent research has theorized that there is a three‐stage, sigmoid relationship between multinationality and performance. We contribute to the debate by showing that the impact of multinationality depends on the time dimension incorporated in the performance measure; that is, the net benefits from multinationality are likely to be higher in the longer term. The results from our sample of US manufacturing multinationals indicate that there is a three‐stage, sigmoid multinationality‐performance relationship.
Global Improvement Initiatives
Authors: Meteer Jim , Hummel Larry , Wicks Frank , Nolan Thomas
Published: June 2011

Executives of a multinational company were looking for ways to spread improvements made at one location to other locations throughout the world. Their initial approach of sharing examples and case studies had proven ineffective. In addition, the localized improvements were having little impact on the worldwide corporate business measures. The principles of quality management and change management added little insight. Frustration with their lack of success had given way to an interest in an approach developed by the Institute for Health Care Improvement (IHI) for the health care industry (Kilo, 1998). The concept of an “improvement collaborative” provided the framework for developing their global improvement initiatives.
Political Assassination and its Impact on Emerging Markets’ Financial Assets
Authors: Han Ki C. , Hun Lee Suk , Suk David Y.
Published: June 2011

This paper examines the impact of the assassination of Mexico’s leading presidential candidate on Mexican Brady bonds and its spillover effects to other emerging financial markets. On the day of the assassination, Mexican Brady bonds declined by a significant 0.97 percent and continued to experience significant declines over the following three trading sessions. However, with the naming of Ernesto Zedillo as the ruling party’s presidential candidate, Mexican Brady bonds recovered over 75 percent of the losses incurred during the previous four trading days. The assassination did not significantly affect other emerging financial markets. The availability of a $6 billion swap facility, holding of large foreign reserves, selection of Ernesto Zedillo, and well managed responses by the Mexican government all served to attenuate spillover effects from the Mexican political crisis.
The Transvergence Proposition Under Globalization: Looking Beyond Convergence, Divergence and Crossvergence
Authors: Gupta Vipin , Wang Jifu
Published: June 2011

Three strategic perspectives exist in dealing with globalization: convergence with the rational Anglo perspective, divergence of the local cultural perspective, and a hybrid cross‐vergence. A fourth alternative “transvergence” ‐ a transformative reinterpretation and application of the indigenous cultural perspective ‐ is identified, that firms can learn over time to combine their strong ties to the local environment with technological and institutional change. Three case studies highlight the process of transvergence. The findings suggest that a focus on the transvergence perspective can be an important addition to our understanding of how globalization can affect firm behavior and result in new business strategies.
A Cross‐National Study Of Perceived Consumer Risk Towards Online (Internet) Purchasing
Authors: Ueltschy Linda C. , Krampf Robert F. , Yannopoulos Peter
Published: June 2011

Perceived consumer risk is explored in relation to online (Internet) purchasing using a cross‐national sample (N=562) from the United States, Canada and U.K. Objectives of the study are to determine if experience in online purchasing reduces perceived risk, if perceived risk varies across product/service categories and if certain types of risk are more important in purchasing certain products/services. Lastly, does national culture affect perceptions of risk? Results are discussed and suggestions are offered to managers on how to reduce perceived risk, thus increasing online purchasing in the three countries examined.
Strategic Choice In International Ventures: A Contingency Framework Integrating Standardization and Entry‐Mode Decisions
Authors: Florin Juan , Ogbuehi Alphonso O.
Published: June 2011

Strategy and marketing scholars look at strategic issues from different points of view and attempt to explain strategic choice and performance from their unique perspectives. This paper combines these perspectives in the context of international ventures and develops a conceptual framework integrating international marketing strategy decisions with entry mode decisions. The resulting contingency framework extends the hierarchical entry‐mode decision model and allows for a better specification of the strategy‐performance relationship in international business.
Seven Revolutions: Global Strategic Trends Out to the Year 2025
Authors: Peterson Erik R.
Published: June 2011

The seven most significant forces now at work changing the world out to the year 2025 are (1) population; (2) resource management and environmental degradation; (3) technological innovation and diffusion; (4) the flows of information and knowledge; (5) global economic integration; (6) conflict; and (7) governance. Together, these seven strategic forces will have a significant impact on how the world unfolds over the next two decades and beyond. Leaders need to develop new approaches and organizational structures. Strategic coalitions between governments, international organizations, the private sector, and civil society will be essential to addressing many of these and other challenges that confront us.
Network Development and Firm Performance: A Field Study of Internationalizing Japanese Firms
Authors: Lu Jane W. , Beamish Paul W.
Published: June 2011

This paper explores the potential competitive advantages from the development of an internal network of subsidiaries and external network of alliances. Given the broad scope and lack of systematic investigation in prior research, clinical field research was conducted in eleven Japanese subsidiaries in China. Our in‐depth interviews revealed that there are benefits and costs associated with the development of both subsidiary networks and alliance networks. While there are exploitation and exploration benefits from subsidiary network development, internationalizing firms (especially smaller firms) are subject to the liability of foreignness. Alliance network development is an effective way to mitigate this liability if internationalizing firms choose the right alliance strategy.
An Emerging Structure of Corporations
Authors: Ito Kiyohiko , Rose Elizabeth L.
Published: June 2011

As companies grow and increase the number of products they have on offer, they generally change and adapt their organizational structures, in order to arrange their resources and product mix in ways that will create value. We analyze various corporate structures that have been adopted by U.S., European, and Japanese companies, in the context of the resource‐based view of the firm. These corporate structures include functional, divisional, conglomerate diversification, core competence‐based diversification, and keiretsu. We also identify an emerging structure. This recent development is a network of alliances, aimed at pursuing economies of scale, scope, and speed.
China’s Inward Foreign Direct Investment Success: Southeast Asia in the Shadow of the Dragon
Authors: Buckley Peter J. , Clegg Jeremy , Cross Adam R. , Tan Hui
Published: June 2011

This paper explores the impact of China’s growing prominence in global and regional foreign direct investment (FDI) fl ows on the Southeast Asian countries as investment locations. Providing internal social and economic cohesion is maintained, China is likely to exert a greater pull on regional FDI after WTO accession. To benefit from China’s success, the Southeast Asian countries will need to replace deteriorating individual locational advantages relative to China with a superior regional one. The ASEAN Free Trade Agreement or the Asian Investment Area or both are likely to be important policy solutions.
Entrepreneurial Strategic Posture, International Diversification, and Firm Performance
Authors: Thoumrungroje Amonrat , Tansuhaj Patriya
Published: June 2011

Building on the entrepreneurship, marketing and strategic management literature, we propose a conceptual model to investigate the effects of entrepreneurial strategic posture (ESP), perceived environmental uncertainty and international diversifi cation strategy on performance. The ESP‐International diversification‐Performance relationship is investigated using a contingency framework. Entrepreneurial strategic posture is postulated to influence the use of international diversifi cation strategy of entrepreneurial fi rms. Moreover, perceived environmental uncertainty is hypothesized to strengthen the relationship between a firm’s entrepreneurial strategic posture and international diversification strategy, which ultimately affect the firm’s performance. Propositions for further empirical studies are provided in addition to managerial and theoretical contributions.
A Test of Financial Integration in East Asia
Authors: Park Kang H.
Published: June 2011

The purpose of this paper is to examine the extent of financial integration occurring in East Asia. Increasing economic integration in East Asia over the last two decades has been evidenced by consistent growth in intra‐regional trade and investment. Greater economic integration in the region, accompanied by financial deregulation and liberalization, has contributed to greater financial integration. This study confirms increasing degree of financial market integration in East Asia by comparing movements of monthly money market rates before and after the Asian financial crisis. Convergence of interest rates across the countries in East Asia is examined by analyzing deviations, correlation coefficients and multivariate co‐integration tests of interest rates.
The Need to Remain Flexible in Today’s Global Marketplace
Authors: Klein Ward
Published: June 2011

This article is an edited version of the presentation given by Ward Klein at the 2004 International Business Conference sponsored by the Boeing Institute of International Business at Saint Louis University’s John Cook School of Business. Over 300 guests listened to his comments and participated in a Q&A at the conclusion.
A Multi‐National Study of Family Decision‐making
Authors: Harcar Talha , Spillan John E. , Kucukemiroglu Orsay
Published: June 2011

In the globalization age, with worldwide increases in dual income households, decision‐making has become more difficult and even more important than in the past. In this article, a five‐countries cross ‐ cultural comparisons of husband and wife decision‐making roles in the purchase of various goods and services in unlike environments is presented. Despite substantial cultural variation, there are surprisingly high degrees of similarities in family purchasing decision roles among the five countries. This study provides insights for managerial and public policy makers on the implications of cross‐cultural similarities and differences in consumer decision‐making.
Effect of Cultural Environment on Earnings Manipulation: A Five Asia‐Pacific Country Analysis
Authors: Guan Liming , Pourjalali Hamid , Sengupta Partha , Teruya Jenny
Published: June 2011

This study examines the possible impact of cross‐country differences in culture on earnings management or choices of accounting accruals in five Asia‐Pacific countries: Australia, Japan, Hong Kong, Malaysia and Singapore. A set of traditional and cultural variables were used to test the hypotheses developed in the paper. The results indicate that both the traditional variables (size and debt‐equity ratio) and cultural variables (individualism, power distance, uncertainty avoidance and long‐term social values) can explain the choices of accounting accruals in different countries. This paper is the first that links earnings management to cultural values and indirectly provides evidence that accounting values (as defined by Gray, 1998) affect earnings management.
A Comparative Study of U.S and Japanese Generalized System of Preferences
Authors: Seyoum Belay
Published: June 2011

Exports help developing countries to expand their production, promote industrialization and accelerate their economic growth. They played an important part in the economic transformation of Southeast Asian countries. The Generalized System of Preferences (GSP) is one of the ways in which developing countries can increase their exports to the markets of developed nations. The GSP, a unilateral, non‐reciprocal program agreed under the United Nations provides preferential duty entry to numerous products imported into developed countries by eligible developing countries. The objective of this study is to examine the role of GSP in stimulating exports of developing countries. It also provides a comparative appraisal of the GSP schemes of the United States and Japan. The paper also makes certain recommendations to make GSP schemes more efficient and applicable to particular situations.
Does Foreign Direct Investment Promote Economic Growth? Evidence from Turkey
Authors: Gunaydin Ihsan , Tatoglu Ekrem
Published: June 2011

This paper examines the causal relationship between foreign direct investment (FDI) and economic growth in Turkey using annual data for the period 1968‐2002, by means of cointegration, error‐correction models (ECM) and the augmented vector autoregressive (VAR) methodology developed by Toda and Yamamoto (1995). Johansen (1992) cointegration test results indicate that these two variables are cointegrated. The empirical results from Granger causality tests based on error‐correction models and the augmented level VAR suggest that there is a strong evidence of bi‐directional Granger causality between FDI and economic growth, corroborating the feedback hypothesis for Turkey over the sample period.
An Assessment of Cap Gemini’s Cross‐Border Merger With Ernst & Young Consulting
Authors: Malhotra Ayesha , Pierroutsakos Alex
Published: June 2011

Cross‐border mergers are rising in number and scope even though, on average, firms do not profi t from them. In this article, we use interviews and secondary data to assess a historic merger between two global consulting giants ‐ Cap Gemini and Ernst & Young Consulting. The two fi rms had well‐articulated strategic reasons for merging. Nevertheless, their integration strategy failed to address key differences in business models, core competencies, and organizational practices. As a result, the combined firm suffered five years of diminished financial and competitive performance. Our study highlights the organizational complexities affecting mergers between human capital‐intensive firms.
Towards An Understanding of Terrorism Risk in the MNE
Authors: Suder Gabriele , Czinkota Michael R.
Published: June 2011

Based on a literature review of terrorism and global business literature, this paper addresses those conditions that may lead to new considerations about risk and its management at policy and the MNE (multinational enterprise) level. How do MNEs adapt to the 09/11 ‐ type risk in strategic management that shapes choices made for internationalization and for international business operations? It is observed that MNEs increasingly enlarge the notion of political risk. We suggest the development of a strategic risk assessment that incorporates terrorism which in its threat, event and aftermath does not remain local or national, but influences investment, location, logistics, supply‐chain and other performance‐ linked decisions of the international value chain through an enlarged risk‐return evaluation. Using the OLI‐paradigm as a typology, we extend Dunning’s work by incorporating the terrorism dimension. We do so mainly through the analysis and distinction of the most vulnerable links in firms’ value chain in which adjustments need to be made in the face of terrorism threat, act and aftermath. This paper attempts to improve the understanding of international management in an era of global risk and uncertainty.
Explaining Imports and Exports: A Focus on Non‐Maquiladora Mexican Firms
Authors: Thomas Douglas E. , Grosse Robert E.
Published: June 2011

This paper examines both the imports and exports of nonmaquiladora Mexican firms, theorizing that importing is generally motivated by exploration for new resources and exporting by exploitation of existing resources. Our results indicate that firm size is positively related to both imports and exports, while low cost labor advantage is positively associated with exports but not significantly related to imports. Because importing may precede exporting, it should be considered as part of the internationalization process of firms and as a key way to acquire resources before exploiting them through exporting.
Managerial Incentives to Diversify and Shareholder Monitoring: Evidence from International Acquisitions
Authors: Kim Dong‐Kyoon , Kwok Chuck C. Y. , Young Baek H.
Published: June 2011

The authors examine how a firm’s risk change around an international acquisition is related to the managerial equity interest in the firm. Focusing on the international acquisitions made by bidding fi rms that have weak monitoring from outside shareholders, those that make an acquisition in an unrelated industry, and those that experience negative stock returns around announcements, the authors find that managers of these firms tend to undertake risk‐decreasing international acquisitions with the increase of managerial equity ownership and previously granted stock options. The evidence suggests that managerial incentives to use foreign acquisitions to reduce the risk of their personal wealth are more often utilized in the absence of shareholder monitoring.
Launching A Consumer Product In China
Authors: Marks Roger H.
Published: June 2011

This article is an edited verion of a presentation by Roger Marks at the 2005 U.S. China Business Forum sponsored by the World Trade Center Chicago and the U.S. and Chicago Chambers of Commerce. The high turnout by individuals from private industry and various government agencies reflected the keen interest on exporting to China. This article addresses key business and legal considerations and an overall strategic approach to successfully launching a U.S. brand into China.
The Relationship between Foreign Transfers and U.S. Companies’ International Strategies
Authors: Daniels John D. , Insch Gary S.
Published: June 2011

This paper relates the different motives for transferring employees internationally to the conduct of each major international strategy (multidomestic, global, and transnational), proposes seven hypotheses on these relationships, presents and discusses the results of a survey of heads of human resources or international operations in United States based companies, and concludes with theoretical and practitioner implications of the study and suggestions for future research. We found significant support for three hypotheses and directional support for two others.
An Empirical Analysis of the Internationalization‐Performance Relationship Across Emerging Market Firms
Authors: Elango B.
Published: June 2011

This study tests for the relationship between internationalization and performance in the emerging market context using a sample of 719 firms from 12 emerging markets. This study also incorporates the quality of governance in the emerging market studied to test for the interactive influence of the environmental context on the internationalization performance relationship. Findings indicate support for an inverted U‐shaped relationship between internationalization and performance for manufacturing firms and a positive linear relationship for service firms. In explaining the relationship between internationalization and performance, the quality of governance of the home country of the firm was found to interact with internationalization.
Is There a Link Between Foreign Exchange Market Stability and Stock Market Correlations? Evidence from Canada
Authors: McPherson Matthew Q.
Published: June 2011

The link between foreign exchange and stock markets has numerous practical business implications. If international diversification strategies are to be successful, these markets should display low levels of correlation. In addition, understanding the determinants of asset volatilities, as well as their international correlations, are important parameters for the day to day risk management of financial institutions, the risk management of firms operating internationally, and the pricing of contingent claims. This paper examines whether there is a link between exchange rate stability and stock market volatility and correlations. I find that the connection between exchange rates and stock market correlations and volatilities extends beyond periods of extreme crisis.
Banking Bigness: Concentration of the World’s 50 Largest Banks
Authors: Nissan Edward , Niroomand Farhang
Published: June 2011

Industrial concentration is broadly defined as: a few firms controlling a substantial share (assets, revenues) of the market. In the banking sector, this paper shows that the largest 50 banks in the world control about 50 percent of assets of the largest 1,000 banks. Two well known indexes of concentration were used (the Herfindahl and Theil’s entropy) to check the levels of concentration between 1990 and 2002. For purposes of robustness, the world’s largest 100 banks were also investigated. It was found in both cases that the concentration in 2002 was statistically significant as compared to concentration in the previous decade
Hedging Transaction Exposure Through Options and Money Markets: Empirical Findings
Authors: Khazeh Kashi , Winder Robert C.
Published: June 2011

This study compares the effectiveness of money market hedges and options hedges for both payables and receivables denominated in British pounds, German marks, Japanese yen and the Swiss franc. Data on interest rates, exchange rates, and options contracts were obtained from public sources for two recent time periods. This information was used to determine, for each currency: 1) the lowest rate of exchange for payables, and 2) the highest rate of exchange for receivables for each hedging technique. Unique “money market hedge exchange rate factors” and “options hedge exchange rate factors” were developed to facilitate comparisons between the two hedging techniques.
Global Organizational Control: A New Role by Inpatriates
Authors: Kiessling Timothy , Harvey Michael
Published: June 2011

As organizations have expanded globally, control mechanisms utilized in the past may need to be supplemented with a new type of personnel, that of the inpatriate. Expatriates were the most widely used staffing for corporate control, but due to various issues, a complementary set of employees to facilitate corporate goals could be utilized. Inpatriation, as a practical and conceptual means to augment expatriation, is discussed, compared with, and contrasted to, expatriation. This research explores the use of inpatriates in facilitating global control.
Internationalization and Performance: The S‐curve Hypothesis and Product Diversity Effect
Authors: Hsu Chin‐Chun
Published: June 2011

This study uses data from 255 global pharmaceutical/biotechnological companies to (1) determine the impact of internationalization on firm performance and (2) explore the moderating effect that product diversity has on the relationship between internationalization and company performance. The results highlight the rewards of pursuing internationalization and demonstrate that companies benefit from internationalization activities by achieving higher overall performance. This finding contrasts with recent empirical evidence that an S‐curve relationship exists. Analysis of the moderating effect of product diversity indicates a strong effect on the internationalization‐performance relationship and thus shows that the payoff from internationalization is moderated by product diversity
Do Social Institutions Matter to Markets in Transition? Investigating Consumer Sentiment in China
Authors: Yim Chi Kin (Bennett) , Hung Kineta , Zhou Nan , Zhu Jonathan J.H.
Published: June 2011

This study assesses the impacts of the social institutions of a transitional economy on its market by examining how China’s political, economic and cultural institutions influence consumers’ sentiment and their purchase planning behaviors. We propose and empirically validate a four‐factor model of consumer sentiment that captures the impacts of these powerful social institutions. The validity of the model was supported with data from a multi‐level stratified survey that involved 9 cities and 3,960 consumers across a number of product categories. Our findings confirm the salience of social institutions in affecting consumers’ sentiment as well as their consumption behaviors in China.