bluuebunny/crossref_metadata_2025 huggingface dataset:
Asian options versus vanilla options: a boundary analysis
Authors: Ye George L.
Published: March 2008

Purpose

The purpose of the paper is to correct a commonly mistaken notion that an Asian option is always cheaper than its plain vanilla European counterpart in a general setting.

Design/methodology/approach

The paper shows that by letting volatility go to zero, the lower bounds of Asian options and vanilla options are derived. Those bounds are then compared.

Findings

The paper finds that the notion can be violated for call options when the dividend yield of the underlying stock is higher than the interest rate, as well as for put options when the dividend yield of the underlying stock is lower than the interest rate.

Research limitations/implications

The approach used in this paper, boundary analysis, can be applied to other exotic options.

Practical implications

The results in the paper may affect decisions on trading Asian options.

Originality/value

The paper will be of value to those interested in using/pricing/hedging Asian options.
Simultaneous output and input hedging: a decision analysis
Authors: Alghalith Moawia
Published: March 2008

Purpose

The purpose of this paper is to present a realistic hedging model.

Design/methodology/approach

The paper uses a general utility function, general distributions, and a multiple‐input technology.

Findings

The study finds that the impact of one or both risks on the optimal output, hedge, or hedge ratio is determined by the market structure of one or both forward pieces.

Originality/value

This is the first paper that uses a general, complete, and realistic hedging model.
Work in progress?
Authors: Gentle Chris
Published: March 2008

Purpose

This paper aims to focus on recent developments within the financial markets.

Design/methodology/approach

The approach is that of critical commentary on the present situation.

Findings

Current market dynamics reinforce the fact that there are few greater issues for financial institutions than governance and control systems.

Originality/value

The paper shows that financial institutions are still seeking to find the correct balance between risk and reward among the forces of financial innovation.
Liquidity=Diversity
Authors: Mainelli Michael
Published: March 2008

Purpose

This paper aims to offer a commentary on recent failures in financial markets.

Design/methodology/approach

The approach is that of critical commentary on the present situation.

Findings

Current market dynamics reinforce the fact that there are few greater issues for financial institutions than governance and control systems.

Originality/value

The paper shows that financial institutions are still seeking to find the correct balance between risk and reward among the forces of financial innovation.
The Stoneridge case – much ado about nothing?
Authors: Edison Andrew
Published: March 2008

Purpose

The purpose of this paper is to explain the issues related to “scheme liability” that underlie the current case before the United States Supreme Court, Stoneridge Investment Partners v. Scientific‐Atlanta and Motorola.

Design/methodology/approach

Explains the facts of the Stoneridge case; explains the legal framework, including ongoing debates over the scope of liability under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b‐5, the Supreme Court's decision in Central Bank, N.A. v. First Interstate Bank, development of the “scheme liability” concept by various plaintiffs' lawyers, and three circuit court decisions related to scheme liability; and the philosophy that is likely to guide the Supreme Court in Stoneridge.

Findings

The Stoneridge case provides the Supreme Court with the unique opportunity to clarify the limits of liability under Section 10(b) and Rule 10b‐5. It is the first time since Central Bank that the Supreme Court will grapple with the contours of liability for so‐called secondary actors.

Originality/value

A clear explanation of the issues in a highly visible Supreme Court case by an experienced commercial litigator.
The FSA begins to “think tough” on insider dealing: but will thoughts turn to deeds?
Authors: Black Duncan , Lercara Angelo , Smallhoover Joe , Huey‐Burns Paul
Published: March 2008

Purpose

The purpose of this paper is to assess the FSA's recent, allegedly soft approach toward insider trading and compare it with current approaches in the USA, France, and Germany

Design/methodology/approach

Discusses reasons for the FSA's current approach, including its emphasis on “principles‐based” regulation and its policy against being an “enforcement‐led” organization and, for comparison, provides the perpectives of Dechert lawyers on current enforcement trends in the USA, France and Germany.

Findings

The prosecution of insider trading is one of the best examples of principles‐based regulation in the USA, which suggests that a debate concerning whether the FSA should adopt “rules” proscribing insider trading before embarking on a campaign of vigorous prosecution may be largely irrelevant if the will exists to address such activity. This article was originally published internally by Dechert LLP in April 2007 and has since been updated for the Journal of Investment Compliance.

Originality/value

The paper assesses the FSA's recent approach toward insider trading in the UK.
Providers and distributors: responsibilities regarding retail structured products
Authors: Rouch David , Benjamin Joanna , Raffan Michael , Kalderon Mark , Orton Simon
Published: March 2008

Purpose

The purpose of this paper is to provide an overview of recent guidance from the FSA and industry, and recent case law regarding product providers and distributors

Design/methodology/approach

Explains current status of the guidance; provides overview of the guidance and its two component parts directed at “product providers” and “distributors”; discusses international dimensions; explains compliance implications; describes parallel trade association principles published in a July 2007 paper entitled Retail Structured Products: Principles for Managing the Provider‐Distributor Relationship; and summarizes three recent English judicial decisions relevant to the responsibilities and duties of providers and distributors.

Findings

The responsibilities of providers and distributors regarding retail structured products are being defined by an interaction of regulatory, common law, and soft law provisions. Just as the FSA's exercise of its regulatory powers is increasingly based less on detailed rules and more on general principles, so the judges' decision making is based less on doctrinal detail and more on a pragmatic assessment of the relevant facts as a whole.

Practical implications

Regarding retail products, the best approach for providers and distributors is to focus not only on detailed rules and contractual provisions but also on the factual detail of the arrangements, and whether the outcomes are fair to investors and meet their reasonable expectations as created by the firm.

Originality/value

Expert analysis provided by leading lawyers specialized in financial institutions.
The changing tax environment for the UK hedge fund sector
Authors: Ward Dana
Published: March 2008

Purpose

The purpose of this paper is to summarize the main conditions that a UK investment manager has to meet in order to benefit from a UK tax exemption known as the Investment Manager Exemption (IME) and comment on the key developments introduced in the revised Statement of Practice.

Design/methodology/approach

Provides background explaining legislation that defines the IME and its Qualifying Conditions and then goes on to explain the impact of the revised Statement of Practice

Findings

The IME is an exemption for non‐residents trading in certain investments in the UK where that trade is carried on through an investment manager. The IME was introduced in order to promote investment activities in the UK by providing some degree of certainty on the tax treatment of UK managers who manage offshore trading funds. The original Statement of Practice 01/2001 (SP 01/01) was issued by HMRC to provide guidance on the application of the legislation and, more specifically, on how the conditions in relation to the IME are satisfied. The policy aims of the revised Statement of Practice are to improve the IME and also to meet new developments in the investment management industry, thus providing more certainty in relation to the scope and application of the rules.

Practical implications

It is critical that processes are in place to demonstrate satisfaction of the Qualifying Conditions for the tax exemption; and in particular, contemporaneous and detailed transfer pricing documentation needs to be in place for all but the simplest of structures.

Originality/value

Practical guidance from a tax partner of a leading accounting firm.
SEC adopts Amendments to Rule 105 of Regulation M, including important exceptions for bona fide purchases and for separate accounts
Authors: Gittleman Charles S. , Sacks Russell D.
Published: March 2008

Purpose

The purpose of this paper is to provide a detailed description of Amendments to Rule 105 of Regulation M adopted by the US Securities and Exchange Commission (the “SEC”) on June 20, 2007

Design/methodology/approach

Presents a general overview of short sales and the purpose of Regulation M, a rule that prohibits purchases and sales of securities during specified periods close in time to public offerings of securities; and describes the Amendments, including an expansion of the prohibition under the Rule from a prohibition on “covering” to a prohibition on purchases generally and including three exceptions that pertain to “bona fide” purchases, “separate accounts,” and investment companies.

Findings

The Amendments are important because: they expand the scope of the Rule's basic prohibition; they were expanded in part because SEC perceived that circumvention of the Rule was persistent; they permit notable exceptions; and they were adopted close in time to other amendments to the regulation of short sales, including elimination of the price or “tick” tests.

Originality/value

Expert guidance on a recent SEC ruling by experienced securities lawyers.
Taking the risk out of mutual fund compliance: a seven‐step check list for safer, more cost‐efficient mutual fund sales
Authors: Levering Jeff
Published: March 2008

Purpose

The purpose of this paper is to explain the risk of bad mutual fund data for a financial services firm that sells mutual funds and to recommend steps a firm can take to ensure the reliability of its mutual fund data.

Design/methodology/approach

Explains problems caused by missing data, including the “breakpoint issue,” the best sources of mutual fund information, problems firms have retrieving and compiling that information, and weaknesses in a free service (the “Service”) provided by a well known industry utility and securities depository that related to coverage, completeness, and cost. Recommends seven actionable steps a firm can take to ensure the accuracy of its mutual fund data.

Findings

Firms offering funds may sell billions of dollars of funds every week, and maintain considerably more on their books, but frequently they pay scant attention to the accuracy of their mutual fund reference data. The breakpoint issue is alive and well today, and would seriously erode investor and regulatory confidence if this fact became better known. For many firms, discrepancies in data result from funds having one policy disclosed to the SEC while their distributors use entirely different ones. Firms now realize that ensuring accurate reference data is no longer an issue that can be avoided.

Practical implications

Rather than operating under the false assumption that critical data is accurate, make sure you dedicate the time to examine your organization's use of mutual fund data to ensure efficient, ongoing investor relations and to ensure the overall reputation of your firm.

Originality/value

Professional advice from an experienced vendor of compliance systems and software.
Summary of selected FINRA Regulatory Notices and Disciplinary Actions
Authors: Davis Henry A.
Published: March 2008

Purpose

The purpose of this summary is to provide excerpts of selected Financial Industry Regulatory Authority (FINRA) Regulatory Notices issued from October to December 2007 and a sample of disciplinary actions during that period. In July 2007, FINRA Regulatory Notices replaced NASD Notices to Members.

Design/methodology/approach

Provides excerpts from FINRA Reg Notice 07‐54, Fairness Opinions; Reg Notice 07‐57, Representation of Parties in Arbitration and Mediation; Reg Notice 07‐59, Supervision of Electronic Communications; Reg Notice 07‐61, Trade Reporting and Compliance Engine (TRACE), and Reg Notice 07‐65, Amendments to NYSE Rule 409(f).

Findings

The paper finds useful information in each of these Notices.

Originality/value

These are direct excerpts designed to provide a useful digest for the reader and an indication of regulatory trends. The FINRA staff is aware of this summary but has neither reviewed nor edited it. For further detail and FINRA contacts for each notice, as well as other notices and useful information, the reader is directed to www.finra.org
Global engineering networks (GEN)
Authors: Zhang Yufeng , Gregory Mike , Shi Yongjiang
Published: March 2008

Purpose

The purpose of this paper is to propose an integrating framework for the configuration and performance of global engineering networks (GEN).

Design/methodology/approach

The reported study is based on a comprehensive literature review and refined by the practice of three global leading companies along key industry sectors.

Findings

This framework presents the key patterns of GEN from an evolution perspective and demonstrates the influence of the major driving forces.

Research limitations/implications

In addition, this study also identifies research opportunities in two areas: further testing the theory of GEN with a broader range of industry sectors, and expanding the study to inter‐firm engineering activities. The further study is planned accordingly.

Originality/value

The paper offers a systematic view of GEN and can help companies in the design and operation.
The importance of collaborative frontloading in automotive supply networks
Authors: Binder Mario , Gust Peter , Clegg Ben
Published: March 2008

Purpose

The purpose of this paper is to investigate how research and development (R&D) collaboration takes place for complex new products in the automotive sector. The research aims to give guidelines to increase the effectiveness of such collaborations.

Design/methodology/approach

The methodology used to investigate this issue was grounded theory. The empirical data were collected through a mixture of interviews and questionnaires. The resulting inducted conceptual models were subsequently validated in industrial workshops.

Findings

The findings show that frontloading of the collaborative members was a major issue in managing successful R&D collaborations.

Research limitations/implications

The limitation of this research is that it is only based in the German automotive industry.

Practical implications

Practical implications have come out of this research. Models and guidelines are given to help make a success of collaborative projects and their potential impacts on time, cost and quality metrics.

Originality/value

Frontloading is not often studied in a collaborative manner; it is normally studied within just one organisation. This study has novel value because it has involved a number of different members throughout the supplier network.
Innovation performance and partnerships in manufacturing firms in Turkey
Authors: Cetindamar Dilek , Ulusoy Gunduz
Published: March 2008

Purpose

This paper aims to shed light on the relationship between partnerships and innovation efforts of the firms. The goal is to understand whether Turkish firms collaborate for innovation or not and, if they do, what is the impact of partnerships on the innovation performance of firms?

Design/methodology/approach

In this research, a survey methodology is employed. The questionnaire is implemented through structured interviews conducted with 135 Turkish companies from the textile, chemical, food and machinery industries.

Findings

The findings show that Turkish firms have high‐collaboration ties with other companies in particular but the existing partnerships have a weak impact on innovation performance.

Research limitations/implications

As only one country is studied and data come from one year, the findings of this study are limited in terms of generalizing the results for a wide variety of developing countries.

Practical implications

Non‐materialized performance is to a degree due to low quality of relationships, but more importantly Turkish firms need to find ways to improve their partnerships and in‐house capabilities, particularly their absorptive capacities, if they want to improve their innovativeness through partnerships.

Originality/value

This paper is one of the early examples empirically investigating the relationship between technology collaborations and innovation performance of firms in a developing country context.
Digital/web‐based technology in purchasing and supply management: a UK study
Authors: Gallear David , Ghobadian Abby , O'Regan Nicholas
Published: March 2008

Purpose

To date little is known about the actual level of utilisation of digital/web‐based interaction technologies in purchasing and supply management (SM) in the UK. This paper seeks to address this gap in the extant knowledge through empirical research in a UK setting. It examines the level of usage, the uses, the perceived benefits, and future perspective on the use, of web‐based technology in purchasing and SM.

Design/methodology/approach

An empirical survey of UK‐based organisations was undertaken. Information simultaneously collected on the buyer‐supplier relationship orientation of the firms in the sample was used to test the proposition that the use of web‐based technology leads to stronger collaborative relationships with suppliers.

Findings

Data obtained from 156 valid responses indicated that six in every ten organisations use web‐based technology to support purchasing and SM activities, but that the usage is lower in small to medium‐sized enterprises. The main uses reported are for communicating with suppliers, for marketing products/services, and for locating technical data. Making purchases over the internet was significantly more prevalent in organisations exhibiting relatively more partnership orientation.

Practical implications

The findings provide only limited evidence in support of the proposition that the deployment of web‐based technology leads to stronger buyer‐supplier relations. However, findings do suggest that the effectiveness of the purchasing and supply function can be enhanced through greater use of web‐based technology for online purchasing and for efficient consumer response.

Originality/value

The paper establishes salient UK managerial perception on the strategic and operational importance of web‐based technology adoption in purchasing and SM.
Exploring determinants of company‐university R&D collaboration in Spain
Authors: Concepción López‐Fernández Ma , Serrano‐Bedia Ana Ma , García‐Piqueres Gema
Published: March 2008

Purpose

This paper sets out to examine the factors that influence Spanish manufacturing and service firms to cooperate with universities on R&D.

Design/methodology/approach

A LOGIT regression model is used to verify the importance of certain variables, selected and constructed according to the literature review, to the decision to cooperate with universities. An empirical study is carried out using data from the Spanish 2000 Community Innovation Survey (CIS). The sample of study is 3,964 innovative manufacturing and service firms.

Findings

Firm size, spillovers, R&D intensity and operating costs influence both manufacturing and service firms in the same way in their decision to cooperate with universities on R&D activities. However, the variables relating to strategic and legal protection of innovations, as well as belonging to a foreign group have been shown to affect manufacturing and service companies differently.

Research limitations/implications

The analysis of the cooperation decision from the transaction cost economics approach is limited to operational costs and risks because of the type of data supplied by the CIS. A second limitation relates to the inability to use more recent data as, to date, the only CIS microdata published are from the year 2000.

Practical implications

The empirical results allow one to identify the characteristics of Spanish manufacturing and service firms that cooperate with universities.

Originality/value

The paper has explored the differences between manufacturing and service companies relating to the determinants of establishing R&D cooperation agreements with universities.
Communities of practice as structures for managing knowledge in networked corporations
Authors: Scarso Enrico , Bolisani Ettore
Published: March 2008

Purpose

The aim of the paper is to discuss the critical issues concerning the design and implementation of communities of practice (CoPs), that are increasingly being developed in global networked corporations to connect dispersed and (semi)autonomous units, departments, and working teams.

Design/methodology/approach

The paper explores, summarises, and discusses the current literature and the reported experience of internal CoPs as a starting‐point to develop a comprehensive and systematic framework of the functioning of such structures.

Findings

An explanatory framework is proposed, which identifies and integrates the main dimensions shaping the creation and management of CoPs.

Research limitations/implications

The proposed speculation is based on a survey of more than 200 studies specifically focusing on CoPs in business environments. Owing to space constraints, only part of this is reported in the reference list, but further details can be requested from the authors. This study can also provide a consistent model for future empirical validations through case‐study analysis or action research.

Practical implications

The suggested framework, identifying the critical dimensions and issues, can be of use for the design and management of CoPs intentionally created by firms.

Originality/value

The study attempts to draw a comprehensive and coherent picture of elements that are generally treated disjointedly, both in academic studies and in practice.
Development of practitioner guidelines for partnerships between start‐ups and large firms
Authors: Minshall Tim , Mortara Letizia , Elia Stelios , Probert David
Published: March 2008

Purpose

The purpose of this paper is to illustrate the development of the final outputs of a research project looking at partnerships between technology‐based start‐ups and large firms (“asymmetric” partnerships). It presents the stage of the research aimed at understanding how best to design outputs to assist firms in managing such partnerships.

Design/methodology/approach

A combination of company case studies, company workshops, an end‐user survey and pilot dissemination programme were used to identify an appropriate form for the packaging and delivery of the research findings (i.e. what problems can be encountered in such partnerships, and what approaches companies have implemented to overcome these problems).

Findings

A range of approaches for overcoming the problems of managing partnerships between firms whose age and size are markedly different were catalogued. The research presented in this paper revealed that companies felt best able to learn from the experiences of others through a combination of direct support, multi‐company workshops, and online access to selected materials.

Research limitations/implications

The generalisability of the findings may be limited by the fact that the majority of the organisations collaborating in this research either were located in the high‐technology business cluster in and around the city of Cambridge, UK or had formed partnerships with companies in this geographic region.

Practical implications

Partnerships between technology‐based start‐ups and technology‐intensive large firms can provide an effective means of accessing and integrating the complementary assets required to bring a novel technology to market. This research will help firms overcome the numerous challenges involved in setting up and managing such partnerships by providing stakeholders with easier access to academic research findings. It will assist researchers who are considering how to disseminate research outputs to industry.

Originality/value

There is a strong body of work on improving the performance of partnerships in general, but less on overcoming the practical challenges of managing partnerships between firms of markedly different age and scale. In addition, the selection of the optimum process for ensuring that the findings of such research are used to support implementation remains a topic of debate. This work helps to address both gaps.
Creating products in the absence of markets: a robust design approach
Authors: Silberzahn Philippe , Midler Christophe
Published: March 2008

Purpose

The purpose of this study is to examine how firms deal with a situation of true uncertainty about their potential markets and technologies. Specifically, it asks how firms can create products when the corresponding market does not exist.

Design/methodology/approach

This paper is based on a longitudinal study of a high‐tech firm, combined with analysis of existing theory in product design and entrepreneurship.

Findings

Markets and products are usually a defining choice made early on by firms in their strategic process. Such a choice guides their development by providing a “stable concept” to which decisions can be related. When markets do not exist yet, however, this approach is not effective. Early choice of products and markets limits firms' flexibility by constraining their ability and willingness to adapt, while fundamental new technical and market information is likely to emerge during the project that will prove the initial assumptions wrong. The paper shows an alternative approach where products and markets actually result from a generic process of products and markets exploration driven by the firm. It is suggested that this approach forms a robust design in that it allows the firm to deal with the uncertainty by simultaneously developing its products and exploring markets, while preserving the flexibility to adapt to the changing environment.

Practical implications

The practical implication of this paper is to suggest an alternative approach to deliberate planning in high‐tech ventures. With this approach, rather than markets and products, strategy defines a market and technology exploration process.

Originality/value

The paper is original in three ways. It links the product design and market exploration processes in high‐tech firm development; it is based on an in‐depth longitudinal study; and it results from an academic‐practitioner collaborative work.
The performance appraisal congruency scale: an assessment of person‐environment fit
Authors: Whiting Hal J. , Kline Theresa J.B. , Sulsky Lorne M.
Published: March 2008

Purpose

The purpose of this paper is to construct an instrument to assess employee‐perceived performance appraisal congruency and then to use the scale to predict employee attitudes about their performance appraisal systems.

Design/methodology/approach

The scale was developed using 28 subject‐matter experts and researcher knowledge of the extant literature. The scale was then completed by a sample of 135 individuals using internet administration.

Findings

Regression analyses showed that performance appraisal congruency predicted overall system satisfaction, perceived usefulness and fairness. Supplementary analyses of the performance appraisal congruency items were conducted so as to refine the original instrument for future research.

Research limitations/implications

Limitations of the study include: the interviews conducted to develop the instrument were conducted in a single organization; the study used an internet sample that was made up of university alumni; all measures were self‐report; and single item measures were used as the criterion variables. The findings support the utility of the use of the P‐E fit model in performance management systems. Future research should assess outcomes that would be of interest to organizations, such as the relationships with performance system satisfaction and employee commitment and turnover.

Practical implications

If employees perceive that the performance appraisal system is congruent with their expectations, then positive outcomes should be expected.

Originality/value

While congruency has been linked to important outcomes such as job satisfaction, organizational commitment, turnover intention, and actual turnover, it has not been used within a performance appraisal framework.
Fuzzy logic and performance evaluation: discussion and application
Authors: Beheshti Hooshang M. , Lollar James G.
Published: March 2008

Purpose

This paper seeks to describe the development of the fuzzy logic model approach to decision making and its value for managers by illustrating its application to employee performance appraisals.

Design/methodology/approach

An extensive literature review provided the framework for the model development in this research. Performance evaluations represent a critically important decision that often involves subjective information. Models and heuristic techniques that focus on the use of different types of information are available; however, with few exceptions, the models are not robust enough to be applied in a practical, managerially useful manner. Fuzzy logic models provide a reasonable solution to these common decision situations.

Findings

Fuzzy logic can be a powerful tool for managers to use instead of a traditional mathematical model when evaluating the performance of personnel or teams. The flexibility of the model allows the decision maker to introduce vagueness, uncertainty, and subjectivity into the evaluation system.

Research limitations/implications

This research calls attention to an alternative method of the performance evaluation system as opposed to the traditional quantitative methods. Future research in this area is needed to develop a method for relating membership values to linguistic variables in performance evaluation, as well as testing the sensitivity of membership values and their impact on the outcome.

Originality/value

This paper provides a simple‐to‐use fuzzy logic model for establishing a more meaningful evaluation system.
Personnel participation as a key factor for success in maintenance program implementation
Authors: García Arca Jesús , Carlos Prado Prado J.
Published: March 2008

Purpose

The purpose of this paper is to put forward the methodology and most important aspects used at the Spanish group of timber companies Grupo Losán to design and implement a satisfactory preventive maintenance program in the manufacture of melamine and veneers in accordance with continuous improvement and TPM philosophy.

Design/methodology/approach

The paper draws on empirical evidence from one case study and develops a framework for improvement in continuous improvement management for company competitiveness.

Findings

The authors judge the difficulty in implementing a continuous improvement culture to be caused by the complexity of obtaining commitment and involvement from the personnel most affected by the project. In this context, a participative approach and a suitable methodology for implementation are key factors that are not always taken into account by companies. This experience also proposes the important role that researchers can play as “agents of change” from a viewpoint of “action research”.

Practical implications

The management experience provides companies with a useful guideline to implement continuous improvement culture not only in the maintenance area, but also in supply chain management.

Originality/value

The case study covers a gap in the research field on the lack of implementing guidelines which aid adopting continuous improvement in companies.
Enhancing the effectiveness of the balanced scorecard with scenario planning
Authors: Othman Rozhan
Published: March 2008

Purpose

This paper aims to propose the idea of linking the use of the balanced scorecard with scenario planning. Scenario planning emphasizes the development of a strategic plan that is robust across different scenarios. This ensures that the strategy implemented using the balanced scorecard is linked to external conditions and takes into consideration the expected changes in the environment.

Design/methodology/approach

This paper examines the criticisms of the balanced scorecard and proposes the use of scenario planning as a way of overcoming some of these limitations.

Findings

It argues that the use of scenario planning is capable of overcoming the lack of external orientation in the balanced scorecard. Scenario planning also helps make the balanced scorecard more reflective of changes that may appear in the future. This ensures that the scorecard developed is not merely a linear extension from the present.

Research limitations/implications

Studies need to be undertaken to examine whether integrating scenario planning with the balanced scorecard leads to more effective strategy implementation.

Practical implications

Adopters of the balanced scorecard need to recognize that developing a balanced scorecard system needs to be preceded by a strategy formulation process that incorporates an understanding of how future events may evolve. This can be achieved using scenario planning.

Originality/value

This study is probably the first attempt to link the implementation of the balanced scorecard and scenario planning.
Selection of lean manufacturing systems using the PROMETHEE
Authors: Anand G. , Kodali Rambabu
Published: March 2008

Purpose

In recent years, many manufacturing companies are attempting to implement lean manufacturing systems (LMS) as an effective manufacturing strategy to survive in a highly competitive market. Such a process of selecting a suitable manufacturing system is highly complex and strategic in nature. The paper aims to how companies make a strategic decision of selecting LMS as part of their manufacturing strategy, and on what basis such strategic decisions are made by the managers.

Design/methodology/approach

A case study of a small‐ and medium‐sized enterprise is presented, in which the managers are contemplating on implementing either computer integrated manufacturing systems (CIMS) or LMS. To supplement the decision‐making process, a multi‐criteria decision making (MCDM) model, namely, the preference ranking organisation method for enrichment evaluations (PROMETHEE) is used to analyse how it will impact the stakeholders of the organisation, and the benefits gained.

Findings

An extensive analysis of PROMETHEE model revealed that LMS was the best for the given circumstances of the case.

Research limitations/implications

The same problem can be extended by incorporating the constraints (such as financial, technical, social) of the organisation by utilising an extended version of PROMETHEE called the PROMETHEE V. Since, a single case study approach has been utilised, the findings cannot be generalized for any other industry.

Practical limitations/implications

The methodology of PROMETHEE and its algorithm has been demonstrated in a detailed way and it is believed that it will be useful for managers to apply such MCDM tools to supplement their decision‐making efforts.

Originality/value

According to the authors’ knowledge there is no paper in the literature, which discusses the application of PROMETHEE in making a strategic decision of implementing LMS as a part of an organisation's manufacturing strategy.
A study on the performance evaluation of major international airports in the world
Authors: Tseng K‐J. , Ho Jow‐Fei , Liu Yuan‐Jing
Published: March 2008

Purpose

This paper aims to assess the performance evaluation of major international airports in the world.

Design/methodology/approach

In this study, the authors utilized data envelopment analysis in an input‐oriented method to discuss the overall operational performance of 20 major international airports between 2001 and 2005. They used cross efficiency measure to determine the international airports that enjoy the best operational performances and used the bilateral model to compare the performance differences between international airports of different regions.

Findings

The Atlanta Airport (ATL) in the USA and the Beijing Airport (PEK) in China experienced MPSS. The overall performance of international airports in Asia is better than those in Americas, Europe, and Oceania.

Research limitations/implications

Service quality can be discuss in the field in the future.

Practical implications

In sensitivity analysis, four inputs had positive impacts on overall performances.

Originality/value

The ATL in the USA and the PEK in China were the best practices for the other international airports.
A new role for research in achieving prosperity in the Middle East
Authors: Ruscoe James
Published: March 2008

Purpose

The purpose of this paper is to assert a mainstream role for focused R&D as a service activity for the economy and for society in a prosperous and harmonious Middle East.

Design/methodology/approach

Comparative review of science policy options in the context of today's Middle Eastern economies and societies, their competitiveness, needs, aspirations.

Findings

A clear case for a university‐based R&D policy targeting the needs and potential of each nation so as to stimulate entrepreneurship, job creation and renewal of traditional sectors and small firms.

Practical implications

Priority allocation of resources to targeted R&D together with associated policy changes to achieve an open socio‐economic climate conducive to innovation and birth of new activities.

Originality/value

To remind policymakers of recent international experience and thus help identify a Middle Eastern R&D focus also in the context of Islam's historic appreciation of the value of knowledge and learning.
The International Baccalaureate and its Middle East challenge
Authors: Bunnell Tristan
Published: March 2008

Purpose

The International Baccalaureate Organization (IBO) celebrates its 40th anniversary in 2008. The IBO published a strategic plan in 2004 calling for a shift towards directed growth of the three IB programmes, and greater access. The purpose of this paper is to show how the Middle East region offers a microcosm of the huge challenge facing the IBO in meeting its desired aims.

Design/methodology/approach

This paper presents the current situation regarding the IB in the Middle East region as defined by the International Air Transport Association standards organization. This involves a total of 16 countries.

Findings

The Middle East involves a relatively small area of IB activity in relation to the total number of “international schools” in the region. There is currently 48 schools offering 60 programmes, and comprising 2 percent of IB schools worldwide. Dubai in particular has seemingly much potential for future growth. No school offers the continuum of IB programmes.

Practical implications

This paper offers a regional insight into the challenge facing the IB in meeting its desired goals. It will allow for the success of the IB strategic plan to be assessed more fully in the year 2014.

Originality/value

The nature and development of the IB in the Middle East has received very little attention by the scholarly community in spite of 40 years of involvement. This is the first paper to offer a resource for evaluating the future success of the IB strategic plan.
Performance appraisal‐cultural fit: organizational outcomes within the UAE
Authors: Behery Mohamed H. , Paton Robert A.
Published: March 2008

Purpose

The purpose of this paper is to explore, within the UAE, performance appraisal, culture and associated outcomes. It builds upon a mainly Western literature to develop the case for aligning culture with appraisal to meet stakeholder expectations.

Design/methodology/approach

A sample of managers was drawn from the Chamber of Commerce listing. Their views were sought on the extent to which they empathised with appraisal approaches. Opinions relating to organizational outcomes associated with the appraisal, combined with an exploration of culture issues, were canvassed.

Findings

Results suggest: commitment will be influenced by the extent to which an employee perceives a personal organizational “fit”; an employee's job satisfaction maybe positively linked to the extent to which they consider appraisal and culture to be aligned; and, there was an unexpected neutral effect relating to the impact of national culture.

Research limitations/implications

This Westernised approach appears to have been favourably received: the paper examines why this maybe the case and suggests further research to validate the results and to establish the true extent and nature of this Westernisation. However, the findings are based on a small sample, drawn from an affluent and outward looking socio‐economic region, and as the research was explorative, qualitative analysis was limited.

Originality/value

A contribution is made to the literature as the research reinforces the view that appraisal and culture are linked and impact upon performance. More importantly the Middle East has received scant attention from researchers. By questioning the traditional view of Middle Eastern practice the research raises interesting questions concerning the current status of managerial professionalism and efficacy.
Analysis of small business performance in Syria
Authors: Alasadi Rami , Abdelrahim Ahmed
Published: March 2008

Purpose

The purpose of this paper is to develop a model that evaluates the performance and assesses the success of small business enterprises in the service sector in Syria.

Design/methodology/approach

A logistic regression model based on a comprehensive questionnaire with a response rate of 58 percent that examines the contribution of several factors to the success of small business enterprises; a sample of 340 firms; implied by three performance measures: owner/manger satisfaction with performance, profitability, and sales turnover. These factors are: planning, firm size, source of capital, owner/manager age, and training for company management and staff.

Findings

Provides information about each factor, indicating their significance and contribution to the success of small business enterprises. Recognizes that trained self‐financed young owners/managers are better able to run their business successfully. However, lack of training and insufficient planning were found to be common among the surveyed sample.

Research limitations/implications

A higher response rate could have added better significance to the examined factors. The investigation is limited to the small business service sector in established in Syria. Self‐administered interviews could have given a better insight on the significance of the findings.

Practical implications

This paper could prove helpful to young entrepreneurs willing to start their businesses in growing economies such as the Syrian economy.

Originality/value

This paper satisfies the need for young entrepreneurs who lack the proper knowledge, based on scientific research, for small business development. Also introduces a fair representation of the small business economy in a developing country, most likely similar in behavior to other countries in the region.
Management development as learning within the Middle East public sector
Authors: Dixon Christopher
Published: March 2008

Purpose

The purpose of this paper is to suggest one approach to achieve a better connection between industry and academia. Some definitions of staff development, to better understand the complex process of learning in terms of a functionalist, performance improvement and self‐development perspective are outlined. Some operational dilemmas that face both the manager and educationalist are considered in terms of a need to deliver quality, productivity and cost effective goods and services.

Design/methodology/approach

The topic examines the need to bridge the process of management and academic staff development such that both managers and academics can experience a common understanding of critical thinking. As both become more involved in complex activities that cannot be addressed by purely technical solutions a critical perspective is described that questions and examines the underlying assumptions, commonsense, taken for granted aspects of the working environment. This critical perspective provides a common arena and shared connection between industry and academia for mutual benefit, shared understanding and exploitable opportunities.

Findings

The notion of single and double loop learning is proposed with the latter being considered as a successful way to address some of the common incompatible norms, structures and procedures encountered by both industry and academia. Learning is examined in terms of knowledge, research, theory and application. A critical perspective involving reflection, emancipation, the use of dialogue and the sharing of tensions and dilemmas is described that challenges the rational and prescriptive nature of what stands for much of industry and academic work.

Practical implications

Practitioners involved in the staff development process will have an interest in such an approach.

Originality/value

The critical learning theory described in this paper can be used to draw closer the management and education arenas in such a way that can ensure industry and academia are better informed and challenged.
Horizontal and vertical spillover effects of foreign direct investment in Chinese manufacturing
Authors: Wang Chengqi , Zhao Zhongxiu
Published: March 2008

Purpose

The purpose of this paper is to examine foreign direct investment (FDI) spillovers accruing to Chinese local industry at both intra‐ and inter‐industry levels and how such effects vary with the nationality of the investor.

Design/methodology/approach

A panel dataset for Chinese industry over the period 2000‐2002 is employed for an augmented production function with external factors being defined as the influences of externalities in production.

Findings

The paper provides evidence of positive spillovers working both within industries and between industries, and evidence of vertical effects being more important than horizontal effects. The results also show that Western multinational enterprises (MNEs) generate more vertical spillovers than their overseas Chinese counterparts. This latter finding confirms that it is necessary to break down inward FDI by foreign ownership, as this makes a significant improvement over previous findings.

Research limitations/implications

Owing to data constraints, the design of the empirical framework does not allow a tightly defined source of potential vertical spillovers, i.e. a distinction of vertical spillovers through backward or forward linkages.

Practical implications

Given the strong evidence of vertical spillovers, the role of foreign MNEs in bringing local suppliers up‐to‐date with best practices should be counted amongst the policy benefits when judging whether it is appropriate to provide policy incentives to FDI. Policy effectiveness could be maximized at targeting specific types of foreign investor.

Originality/value

The paper assesses the relative importance of horizontal and vertical spillovers in a unified framework and the role of nationality of the investor.