bluuebunny/crossref_metadata_2025 huggingface dataset:
Money laundering trends in South Africa
Authors: de Koker Louis
Published: June 2007

Reports a study by the Centre for the Study of Economic Crime at Rand Afrikaans University into the characteristics of money laundering schemes in South Africa; these were discussed at a workshop on December 5 2001. Outlines the 1998 Proceeds of Crime Act (POCA), the 1992 Drugs and Drug Trafficking Act and their general money laundering provisions, including negligence and intent, defence and penalties; also the racketeering provisions of POCA. Moves on to the reporting of suspicious transactions, where the POCA provisions will be repealed by the new Financial Intelligence Centre Act (FICA); this covers general obligations, secrecy and confidentiality, penalties, preventing tipping‐off, and reporting statistics. Gives examples of the schemes themselves, which fall into broad themes: purchase of goods and properties, abuse of businesses and financial institutions, cash and currency, and the informal sector; case studies include S v Dustigar, Motsepe v Commissioner of Inland Revenue, S v Van Zyl, S v Caswell, and Director of Public Prosecutions: Cape of Good Hope v Bathgate.
Legal instruments to combat money laundering in the EU financial market
Authors: Mohamed Sideek
Published: June 2007

Points out that the creation of the euro currency and liberalisation of the EU financial markets has created opportunities for money laundering. Outlines international legal instruments to combat money laundering; these include the Financial Action Task Force’s 40 recommendations and the Wolfsberg Money Laundering Principles, plus the European Union Directive on Money Laundering 1991 and amendments to it, the national Financial Intelligence Units, and the Europol Convention. Moves on to the European Council meeting in Tampere, Finland on Immigration and Justice in 1999; this decided to establish a European Police College and Eurojust, a network of national prosecutors, magistrates and police officers from each member state which will be a judicial counterpart to Europol ‐ there was a transitional body, the Provisional Judicial Cooperation Unit. Concludes that some of the institutions overlap, but Europol could become the equivalent of the US FBI.
Abolishing the concept of ’predicate offence’
Authors: Bell R. E.
Published: June 2007

Comments on the use of the term “predicate offence”, which is American in origin but has crept into common UK and wider usage; it can be confusing. Traces the origin of the term: a predicate offence is the underlying criminal offence that gave rise to criminal proceeds which are the subject of a money laundering charge; the concept is important in the USA because prosecution for money laundering requires proof that the property involved was proceeds of “specified unlawful activity”. Argues that in the UK since the passage of the Proceeds of Crime Act 2002, the term is redundant; there was a previous distinction between laundering the proceeds of drug trafficking and of other crimes, but has now been removed, so that if the jury can be reasonably sure that the property was derived from criminal conduct and that the defendant suspected this, they can still convict without knowing what particular offence was committed. Discusses also the question of whether tax offences are predicates for money laundering.
International cooperation and mutual assistance under the Proceeds of Crime Bill 2001
Authors: Keramidas Giannis
Published: June 2007

Outlines the new UK Proceeds of Crime Bill, which received the Royal Assent in July 2002. Evaluates how it enhances and even demands international cooperation, most of which text is in Part 11. Details Part 11’s provisions, notably section 429 on handling external requests and orders, section 430 on cases where external inquiries are related to investigations made abroad, and section 432 on Interpretation; plus Part 1 sections 4, 74 and 84. Looks at problematic areas in the Bill, one of which is that there are different parts and sections for different territories; also, it provides for a new body, the Criminal Assets Recovery Agency (CARA) which will not operate in Scotland, so that drug dealers might escape with their proceeds. Moves on to the international legal framework for cooperation, featuring the 1990 UN Model Treaty on Mutual Assistance in Criminal Matters.
Legislative and bureaucratic impediments to suspicious transaction reporting regimes
Authors: Roule Trifin J. , Kinsell Jeremy
Published: June 2007

Begins with the undoubted benefits of suspicious activity reports (SARs) in identifying and indicting terrorist financing schemes and detecting money laundering trends like abuse of telephones card sales and money order transmitters; but comparative analysis of anti‐money laundering efforts in over 20 jurisdictions shows that use of SARs is routinely hindered by legislative and bureaucratic deficiencies. Outlines legislative impediments, of which the most common is the lack of safe harbour protection for financial personnel who report suspicious transactions; another is the absence of a Financial Intelligence Unit (FIU) in a country to oversee the collection and investigations of SARs, and a third is failure to share SAR information with foreign regulators. Moves on to bureaucratic impediments, including failure to train and staff FIUs properly; FIUs also often lack necessary computer systems for effective information exchange, while many jurisdictions put time or other limits on FIU investigation of the huge numbers of SARs generated by banks and other institutions.
Money laundering control: the South African model
Authors: de Koker Louis
Published: June 2007

Outlines the Financial Intelligence Centre Act (FICA) 38 of 2001, which completes the broad legislative framework for money laundering in South Africa. Describes the functions of the Financial Intelligence Centre, including its liaison with the South African Revenue Service, and the Money Laundering Advisory Council; both of these bodies were established by FICA. Reviews the existing legislation such as the Drugs and Drug Trafficking Act 140 of 1992, and the 1996 Proceeds of Crime Act, which was repealed by the Prevention of Organised Crime Act 121 of 1998. Points out the gaps in the legislative framework before FICA; however, over 2,500 suspicious transaction reports have been filed with the police since 1997, and South Africa has had strict exchange control for some time, with gambling, the stock exchange and banking all locked into compliance.
It takes two to tango: international financial regulation and offshore centres
Authors: Masciandaro Donato , Portolano Alessandro
Published: June 2007

Focuses on the features of some countries that make them more likely to offer money laundering services, arguing that these tax havens are structurally different from other countries: they lack significant resources for trading internationally, which pushes them to generate income through a lax supervisory regime, yet their smallness makes them less attractive to criminal organisations. Takes a relational approach which focuses on the exchange between the centre and its criminal customers, developing a supply and demand schedule for money laundering regulation and a game structure (with mathematics) for the relationship between Offshore and Criminal. Argues that because of the complex and perverse competitive factors involved, a pure “name and shame” approach by anti‐money laundering policy makers may be counterproductive.
Money laundering in Malaysia
Authors: Shanmugam Bala , Nair Mahendhiran , Suganthi R.
Published: June 2007

Highlights the growth of money laundering in Malaysia and the efforts of the Malaysian government to curb it, including the Anti‐Money Laundering Act 2001; Malaysia was named by the US Pentagon as one of the countries through which terrorist funds pass to become legitimate, and the country includes the Labuan International Offshore Financial Center, which is likely to be a target for money laundering. Outlines the Act’s provisions and the involvement of Malaysia in the Asia Pacific Group of Money Laundering since May 2000. Suggests improvements in the system: improved international cooperation, proper mechanisms for handling suspicious reports, implementing a compliance culture among financial institutions, strict application of bank‐licensing procedures, plus training and new technology investment.
The fight against money laundering ‐ the Swiss way
Authors: Balleyguier Dina
Published: June 2007

Examines the Swiss campaign against money laundering, especially: anti‐money laundering rules for non‐bank and non‐insurance financial institutions, the mix of direct and indirect supervision that has been enacted, and relevant new due diligence requirements, in particular those related to beneficial owner identification. Details how the self‐regulation organisations (SROs) operate; there are over 6,500 financial institutions in the non‐banking non‐insurance sector, and most of them have become members of one of the 12 SROs, the remainder being directly supervised by the Money Laundering Control Authority, and there is audit by private companies. Explains the due diligence process: identification of the counterparty, clarifying the background of unusual transactions, record‐keeping, suspicious transaction reporting, identification of the ultimate beneficial owner, and application of the new rules to all existing customers.
The International Monetary Fund’s involvement in combating money laundering and the financing of terrorism
Authors: Holder William E.
Published: June 2007

Traces how the role of the International Monetary Fund (IMF) in money laundering/combating terrorist financing has developed, its competence and the instruments it uses. Explores its interactions with the Financial Action Task Force (FATF), especially the quest for a “comprehensive common methodology” with the FATF as standard bearer. Explains its surveillance function, which involves intensive exchange with each member country on its economic and financial system ‐ for instance, whether is unsustainable external debt, and hazards of capital movements. Outlines three specific IMF initiatives: the Financial Sector Assessment Program, the Reports on Observance of Standards and Codes, and the Offshore Financial Center assessments. Concludes that the IMF’s involvement in anti‐money laundering has been fast, intensive and important for its members.
Money laundering regulations in Jordan: a positive example of Middle Eastern country earnest about catching up with international financial standards
Authors: Minwer Al‐Rimawi Lu’ayy
Published: June 2007

Reviews briefly the Jordanian legislation and other measures against money laundering; they include the Central Bank of Jordan Memorandum No. 210 /97, which was advisory and not sufficiently clear on what money laundering actually is. Moves on to Article 93 of the 2000 Jordanian Banks Law, which makes it mandatory for every bank to report to the Central Bank of Jordan any transaction in which it is involved if it suspects that it is related to an illegal act; while Central Bank Regulations No. 10 for 2001 is Jordan’s first specialised regulation on money laundering.
The function of self‐regulating organisations in the Swiss money laundering control scheme
Authors: Müller‐Studer Luka
Published: June 2007

Discusses the function of the two types of self‐regulating organisations (SRO) in implementing the Swiss Federal Statute Concerning the Combat of Money Laundering in the Financial Sector (MLS); in Switzerland the enforcement of the duties of diligence contained in the MLS is based mainly on self‐regulation. Defines the two types: type A is the “para‐banking” sector, and type B are insurance companies, banks, casinos etc. Outlines the legal basis in the MLS for the two types, the importance of the Control Office for SRO type A, the scope for self‐regulation, and adequate rules for small SROs type A. Gives an example of a particular SRO (the VQF) as a type A SRO, including supervision and control, and sanctions.
The incorporation and operation of criminally controlled companies in Canada
Authors: Schneider Stephen
Published: June 2007

Examines how financial proceeds of entrepreneurial crime are disbursed throughout Canada’s legitimate economy, focusing on the use of criminally controlled companies as money laundering vehicles. Outlines the design of the research, including data sources, sampling method, data collection, and limitations of the data; the main source of primary data are the proceeds of crime cases taken from the files of the Royal Canadian Mounted Police. Discusses the findings: drug trafficking is the largest single source of criminal proceeds. Moves on to the criminal companies involved: these have a long history in North America, and while they exist for various reasons, money laundering is one of their main functions. Details a case study, that of Gary Hendin, an Ontario lawyer who laundered around CDN12 million in drug money during the late 1970s and early 1980s. Indicates the types of companies used and their methods for laundering money: nominees as owners or directors, a company hierarchy, fake loans or investments, selling a company, buying a company already owned by a criminal enterprise, fictitious business expenses and false invoices, fictitious salaries, and offering shares in a public company.
E‐trade and money laundering: countering schemes and patterns
Authors: Nardo Massimo
Published: June 2007

Reviews briefly the apparent inevitability of growth in electronic trade; the constraining factors seem to be security risks such as problems of transparency and symmetry of information, the need for defence from intrusive technologies and against threats from fraud, embezzlement, counterfeiting, false identities and privacy. Relates e‐trade to the preferences of money launderers for the internet because of its low transparency, multiplier effects, low control, and high risks. Outlines three types of strategy for confronting money laundering: adapting current procedures, developing countering IT techniques like encryption, and singling out possible patterns of suspicious transactions for intermediaries’ consideration. Concludes that existing machinery cannot be expected to curb the transition to an electronic future, and that a combination of strategies is necessary.
The control of risks associated with crime, terror and subversion
Authors: Norgren Claes
Published: June 2007

Reviews the policy of the Financial Action Task Force (FATF) and its remit since it was set up in 1989. Outlines the measures involved in the FATF’s work in developing legal standards against money laundering and terrorist financing: monitoring country compliance by a self‐assessment process and a system of mutual evaluation, a system of effective sanctions, and support for technical assistance. Mentions the FATF’s cooperation with the World Bank and International Monetary Fund to develop a common methodology for assessing jurisdictions’ measures against money laundering and terrorist financing, and its list of Non‐Cooperative Countries or Territories (NCCT), which has successfully triggered improvements in anti‐money laundering legislation.
Migration and illegal finance
Authors: Masciandaro Donato
Published: June 2007

Deals with the relationship between migratory flows and financial flows from the viewpoint of economic analysis. Points out the differences between migrants and host populations as this relates to the demand for banking and financial services, for instance the importance to migrants of remittances to their home countries. Analyses the similarities and differences between money laundering and money dirtying (ie financing terrorism) and between formal and informal banking systems and the need for concealment. Focuses on the Italian case, exploring whether there is a relationship between the existence of migration and the risk of terrorist financing. Concludes that empirical aggregate analysis cannot support the existence of a link between intensification of migration flow and the risk of financing Islamic terrorism.
Compliance and reporting issues arising for financial institutions from money laundering regulations: a preliminary cost benefit study
Authors: Harvey Jackie
Published: June 2007

Explores views on the costs and benefits of financial institution compliance with money laundering regulations as a precursor to a full cost benefit study. Notes that there is very little information on the costs and benefits of money laundering, which is linked with the difficulties of estimating the volume of money laundering that is occurring. Deals with attempts to measure money laundering; the problems involved in this have resulted in a system and procedure based approach which focuses on input rather than output and is clearly inferior. Looks at the costs and benefits for private compliance with money laundering regulation. Moves on to the UK’s money laundering control system, which is based on the Financial Services Authority; financial institutions have to file suspicious activity reports (SAR( and to know their customer, but it is not clear that statistics on these activities show more than the companies’ compliance. Concludes that the industry regards these duties, ie of policing the regulations on behalf of the government, as a burden, and that if this is regarded as excessive, there will be a deterrent to cooperation.
Regional externalities and direct effects of legislation against money laundering: a test on excess money balances in the five Andean countries
Authors: Bagella Michele , Becchetti Leonardo , Lo Cicero Massimo
Published: June 2007

Describes the research methodology used by EEC team studying anti‐money laundering legislation in the five Andean Pact member states: Bolivia, Colombia, Ecuador, Peru and Venezuela. Focuses on the cooperation between the EEC Central Research Unit and the Local Research Units in the five countries, and why the 40 Recommendations of the Financial Action Task Force (FATF( were chosen as the benchmark for the investigation. Illustrates the results of the comparative analysis of anti‐money laundering legislation in the five countries. Analyses responses to a questionnaire about the main money laundering channels in each country and whether this relates to inadequate compliance to FATF legislation. Measures the impact of uneven FATF compliance in the Andean countries on their excess money balances.
Banking secrecy and money laundering
Authors: Ping He
Published: June 2007

Addresses the conflict between banking secrecy and the fight against money laundering. Looks back at the origins of banking secrecy in the Swiss havens for German Jews’ money in the 1930s, and at the various reasons given justifying secrecy. Shows how banking secrecy has been lifted in response to the perceived need to prevent its being used as a money laundering device. Moves on to review banking secrecy in China, where it is enshrined in law but is not absolute: there are 11 institutions that have the right to enquire into an individual’s savings deposits, and recent legislation has been passed against money laundering.
Chasing dirty money: domestic and international measures against money laundering
Authors: Veng Mei Leong Angela
Published: June 2007

Purpose

The purpose of this paper is to provide an overview and discuss the development of the UK and international measures against money laundering.

Design/methodology/approach

This paper examines the anti‐money laundering measures and the activities of regulatory and professional bodies both domestically and internationally.

Findings

Despite the enormous efforts and co‐operation by the governments, law enforcement agencies, professional bodies and private financial institutions, money laundering and terrorist financing remain as threatening issues. There is also the concern that stricter regulation will only add burden on the financial industry.

Originality/value

This paper examines the development of different measures against money laundering and thereby provides assistance to policy makers in the formulation and implementation of effective anti‐money laundering mechanisms.
Problems applying traditional anti‐money laundering procedures to non‐financial transactions, “parallel banking systems” and Islamic financial systems
Authors: Zagaris Bruce
Published: June 2007

Purpose

The purpose of this research paper is to consider the unique and even positive nature of hawalas and other informal fund transfer systems (IFTs) in the developing world.

Design/methodology/approach

Reviewing primary and secondary reports from national regulators, international organizations, and academics, the paper questions the conventional view that IFTs should be subject to extensive regulation and scrutiny because they have been abused by some participants. Many positive characteristics of hawalas – speed, transaction cost, cultural convenience, and versatility – also contribute to their abuse. The paper examines the modern uses of hawalas, including legitimate – remittances from migrant workers, humanitarian and emergency aid, personal investments – and illegitimate – money laundering, terrorist financing, tax and customs evasion, circumventing exchange controls – applications. The paper then discusses legal issues involving IFTs in developing and developed countries, discussing factors the international community should consider when designing regulatory systems. The paper reviews developing world IFT regulation in the UAE, Afghanistan, Somalia, the Eastern and South African Anti‐Money Laundering Group, and Columbia, and developed world regulation in The Netherlands, the UK, and the USA.

Findings

The paper concludes that IFTs are robust in jurisdictions where formal banking systems are absent or weak, or where structural obstacles distort foreign exchange and other financial markets.

Originality/value

Looking forward, the paper considers, inter alia, licensing or registration requirements and the rationale for choosing one over the other, and the need for competent authority due diligence on IFT operators.
Anti‐terrorist finance provisions in Jordan: important step but insufficient
Authors: Malkawi Bashar H. , Malkawi Hikmet O.
Published: June 2007

Purpose

The purpose of this paper is to examine the anti‐terrorist finance provisions in the Penal Law as well as the vulnerabilities in place that hamper more effective regime.

Design/methodology/approach

The paper identifies the pre‐September 11 legal structure in Jordan regarding terrorist finance. Since, then the amended Penal Law, promulgated on October 8, 2001, has emerged as the principal tool in addressing terrorist finance activities. The paper is divided into five sections covering pre‐existing statutory provisions on terrorist finance, Jordan's counterterrorist financing regime including money laundering law and directives, the anti‐terrorist finance provisions in the Penal with its constituent elements, Jordan's accession to the United Nations Convention for the Suppression of the Financing of Terrorism, and finally the paper provides a set of conclusions.

Findings

There are still many loopholes to close in Jordan's anti‐terrorist finance initiatives. There is a need for greater enforcement of existing provisions with an eye to expanding the scope of article 147(2) of the Penal Law to include Islamic banks, hawala, charities, and zakat. A clear definition of the term “terrorist activity” should be supplied in article 147(2) and penalties for terrorist finance offense should be tightened.

Research limitations/implications

Lack of publications or research on the subject of terrorist finance in Jordan in Arabic.

Practical implications

This paper will be very helpful for any individual interested in the legal regime of anti‐terrorist financing as it exists in Jordan.

Originality/value

This paper meets a need for an understanding of the Jordanian legal regime as applied to anti‐terrorist financing and offers insights to lawyers and academics.
The effects of export barriers on perceived export performance
Authors: Hakan Altıntaş Murat , Tokol Tuncer , Harcar Talha
Published: June 2007

Purpose – As a key crucial point, this study aims to examine the relationship between export barriers and the perceived export performance of Turkish SME's. Design/methodology/approach – Major export barriers perceived by SMEs in Turkey are identified and, subsequently, the relationship between export barriers and export performance are examined. A web‐based questionnaire method was conducted among 2,000 SMEs that listed export associations with 7.25 percent response rate. The empirical analysis was conducted in two phases. The first step was to perform an exploratory factor analysis to 20 export barriers. The second step was to run a structural equation model to determine which barrier groups have a greater effect on perceived export performance. Findings – The findings suggest that procedural barriers and competition in foreign markets have the most effective impact on export performance. Both structures have negative effects as expected. In other words, as the procedural and competition barriers decrease, export performance also increases. Research limitations/implications – First of all, not all export barriers that might affect export performance were examined. Another limitation is that, the data obtained related to a very specific period. Export performance was measured by only subjective method with Likert scale. In the context of future research, export barriers of the Turkish exporters in relation to individual countries of origin should be investigated. Practical implications – The analysis of exporting problems on the basis of firm differences between domestic and foreign markets, procedural barriers, internal inefficiency barriers, competition and governmental barriers can provide both corporate and public policy makers with valuable guidelines for the formulation of suitable export marketing strategies and national export assistance programs respectively Originality/value – This study generally confirms the literature, but comes to some original further conclusions, based on export barriers of Turkish exporters.
The impact of aesthetics on employee satisfaction and motivation
Authors: Bjerke Rune , Ind Nicholas , De Paoli Donatella
Published: June 2007

Purpose

This paper sets out to explore the impact of aesthetics on employee satisfaction and motivation.

Design/methodology/approach

The paper is based on organisational aesthetics and organisational culture theory and interviews with employees at Norwegian telecommunications company Telenor – a significant investor in art, design and architecture.

Findings

There are potential connections between artifacts (as an expression of organisational culture) and employee satisfaction, identity, mood, creativity and motivation. Aesthetics seems to be particularly important to employees working with the business segment because of the face‐to‐face interaction between employees and customers. It appears that the “visual Telenor” influences employees' identification with the organisation.

Practical implications

When organisations invest in art, design and architecture, they need to be active in engaging employees with its meaning and relevance. If employees are not engaged, the aesthetic environment will not stimulate creativity or influence job satisfaction and motivation.

Originality/value

The findings of this paper have enabled the creation of a matrix with four different categories defined by the degree of financial investments in art, design and architecture and the extent of investments in activities engaging employees. A conceptual model is proposed that identifies possible connections between aesthetics and employee performance.
Enterprise for all? The fragility of enterprise provision across England's HEIs
Authors: Hannon Paul
Published: June 2007

Purpose

The aim of this paper is to present the findings of a comprehensive study of enterprise and entrepreneurship education provision in England's 131 Higher Education Institutions (HEIs). The paper is based upon the National Council for Graduate Entrepreneurship (NCGE) mapping study of formal and informal activity conducted in 2006.

Design/methodology/approach

All HEIs in England were invited to complete an online institutional mapping template seeking data on enterprise and entrepreneurship accredited programmes/modules, non‐accredited enterprise and entrepreneurship provision and other institutional characteristics that support enterprise and entrepreneurship development. The research team maintained regular contact with all HEIs to maximise participation and to provide support where requested. A number of institutional visits were made by the research team both to introduce the study and to assist data entry where there was limited resource. The approach led to the collection of a unique and robust data set.

Findings

The results illuminate the scale and scope of dedicated provision for enterprise and entrepreneurship across the HE sector in England. Of all institutions, 94 per cent participated, ensuring that these results are analogous to a census report. The results further highlight the penetration of the student population and in particular the nature of their engagement.

Originality/value

This is the first time such an approach has been taken in England and the results are illuminating for academics, policy‐makers (particularly regional development agencies) and enterprise educators. The data provide an evidence base for supporting further development needs across the HE sector and offer opportunities for benchmarking and the exchange of practice, knowledge and experience.
Entrepreneurship education in the UK: a longitudinal perspective
Authors: Matlay Harry , Carey Charlotte
Published: June 2007

Purpose

This paper sets out to critically evaluate contemporary entrepreneurship education initiatives in the UK. The authors seek to compare and contrast various entrepreneurship education methods, approaches and curricula as well as relevant outcomes, in the UK context.

Design/methodology/approach

Longitudinal case studies were used, over a ten‐year period (1995‐2004), to analyse in‐depth qualitative data relating to the development and implementation of various approaches to entrepreneurship education, in a sample of 40 new and established universities in the UK.

Findings

A number of interesting findings have emerged from this longitudinal study. It appears that conceptual and contextual as well as design and delivery factors can impact significantly upon entrepreneurship education courses developed in UK HEIs. Furthermore, a number of actual and perceived barriers needed to be overcome or mitigated in order to facilitate a better understanding of stakeholder needs and contributions.

Practical implications

Measuring the outcomes of entrepreneurship education in the UK is still proving ellusive. This study provides a longitudinal overview of current entrepreneurship education initiatives in order to gain a better understanding of the scope and limitations of this type of educational programme.

Originality/value

This paper presents an empirically rigorous, longitudinal case study approach to a rapidly growing aspect of higher education in the UK. The richness of the emergent data offers a valuable insight into pertinent aspects of entrepreneurship education and stakeholder needs and contributions.
Human resource management in growing small firms
Authors: Barrett Rowena , Mayson Susan
Published: June 2007

Purpose

The purpose of this paper is to begin the process of exploring the intersection between entrepreneurship and HRM by developing an understanding of the nature of HRM in growth‐oriented small firms.

Design/methodology/approach

A survey of 600 small Australian businesses, conducted by CPA Australia in March 2002 to explore employment issues, is analysed by the authors.

Findings

The analysis shows that growth‐oriented small firms are more likely than non‐growing ones to use formal HRM practices where that means that they are written down, regularly applied or assured to take place.

Research limitations/implications

The data are a single snapshot of small firms in time (March 2002) and therefore, while non‐growing small firms can be identified amongst the sample, it is not correct to assume either that they have not grown in the past to reach their current size (with the exception of the single person firms) or that they will not grow in the future. Moreover it is not known whether the growth, which the growing small firms indicate they undertook, was or is sustained.

Practical implications

The result suggests that small firms seeking growth should reconsider their HRM practices in light of their business plans to ensure that there is a good “fit”.

Originality/value

The authors examine small firms in Australia, which are much smaller than their international counterparts, to see whether conclusions from overseas studies are relevant.
Corporate real estate under siege?
Authors: Adkison Jeff
Published: June 2007

The corporate landscape is evolving towards a focus on core business functions. Company operations that are not direct contributors to the core success of the business are being outsourced. For many corporate real estate departments, this means that the internal function is being examined for potential outsourcing. Given this new environment, Corporate Real Estate (CRE) must adapt by focusing on its own core internal processes and outsourcing the non‐core work now being performed by internal staff. The transformation from internal to external provides many challenges, including staff realignment issues and service‐provider selection. When effective, CRE can focus on providing real and measurable benefits to the company as well as enhancing the CRE executive’s career.
Outsourcing: Opportunities and challenges for corporate competitiveness
Authors: Glagola John R.
Published: June 2007

This is the first part of a two‐part paper. It discusses basic issues and concepts surrounding the outsourcing process, including the influences that drive the process, the factors that shape the process, and potential outcomes, touching briefly on complications and challenges that the client may encounter. Part Two will address the pragmatic aspects in some detail, offering concrete suggestions for more effectively managing the entire outsourcing process.
The ‘All‐in’ Bundled Services Model for facilities management and costing
Authors: Bogle Thomas W.
Published: June 2007

Large owner‐users of real estate increasingly search for methods to streamline their operations and reduce expenses without decreasing services to building occupants. This paper describes a model successfully adopted by a variety of corporations to accomplish these objectives. Key to achieving these results is the establishing of Standard Service Agreements between occupants and service providers and the ‘bundling’ of similar services under a unified management umbrella.
Strategies for demand forecasting in corporate real estate portfolio management
Authors: O’Mara Martha A.
Published: June 2007

Planning for future real estate and facility needs in a highly uncertain competitive environment can benefit from a four‐stage process of demand forecasting. Based upon research conducted within the Corporate Real Estate Portfolio Alliance and a review of general business forecasting techniques, each successive stage relies on more abstract data and increased dialogue about business strategy with the lines of business as uncertainty about the future increases. Each stage requires increasing flexibility in the supply of real estate as the range of probabilities around the forecast widens.
Creating an effective organisational model
Authors: Chirgwin Benjamin
Published: June 2007

CRE value is created by efficiently aligning business and real estate strategies. The primary responsibility in today’s environment for corporate real estate executives is to understand the business that they are in, and to
leverage that knowledge to make real estate strategies and decisions that support and enhance the profitability of the company. The first step in this process is gaining business knowledge through aligning real estate and business strategies and goals. This paper looks at one way of establishing an organisation that efficiently captures and utilises business information to develop value‐added real estate strategies.
Financing corporate real estate: A raw materials procurement approach
Authors: Deeble Kevin E.
Published: June 2007

Current CRE financial management practices predominantly reflect a view of real estate as an investment vehicle. The author argues that for the CRE manager, real estate is not an investment vehicle, but rather a raw material in his firm’s production process. Under the raw materials procurement approach, the CRE manager’s goal is to optimise reliability, flexibility and cost across the CRE portfolio. Optimisation is attained by pursuing a financing
strategy of asset/liability matching; the CRE manager should attempt to match the duration of his real estate financial commitments to the real estate’s expected productive life as a raw material. The author outlines a methodology for implementation built around two key manageable variables: commitment and control.
Management information systems for corporate real estate
Authors: Fransson Wade , Nelson David
Published: June 2007

Over the last 15 years, many corporations have pursued systems integration to streamline operations, reduce costs and increase efficiency, resulting in enhanced competitiveness and greater profits. Has the time come for systems integration for corporate real estate? How can integration of systems support and enhance portfolio management? What are the data dependencies and relationships? What about the Internet? This atricle discusses the challenges, issues and opportunities of real estate information systems integration.
Current issues in strategic corporate real estate asset analysis and management
Authors: Kim Hiang Liow , Ooi Joseph T.L.
Published: June 2007

Corporate real estate (CRE) refers to the land and buildings owned by companies not primarily in the real estate business. Given a large concentration of corporate wealth in real estate and that management is committed
to increasing shareholders’ wealth, this paper identifies and discusses three major issues regarding the authors’ understanding of strategic CRE analysis and management from the perspectives of end‐users, corporate finance and capital markets. The paper reviews recent studies and evidence related to these questions and considers future research that promises to be challenging and fruitful.
Challenges of construction in emerging economies
Authors: Thompson Michael W.J.
Published: June 2007

The construction of real estate facilities in emerging markets can be challenging due to a variety of unique constraints rarely apparent to the uninitiated. The process of weaving a thread of efficiency in the disarray that exists, while keeping costs to a minumum can be both frustrating and time consuming. Developing market can pose seemingly insurmountable challenges in construction due to existing economic and financial considerations. A lack of infrastructure, complicated bureaucratic procedures, restricted foreign investment, substandard materials, building standards and design and a lack of competitive market forces are further obstacles to the sector. While a simple lease option may appear a more dependable solution, the financial and operational benefits of constructing a ‘Build‐to‐suit’ facility demand that corporates explore innovative solutions that neutralise the difficulties. The resultant strategy, however, has to be flexible enough to address the myriad possibilities of a company’s growth, its contraction or total withdrawal.
Influences on Australian organisations’ new space demands
Authors: Higgins David , Oluwoye Jacob , Lenard Dennis
Published: June 2007

New business opportunities and challenges are changing the structure of office, industrial and retail organisations and altering the pattern and demand for space. These agents of change on organisations’ decisions for new space formed the basis for a questionnaire survey of 167 new space occupiers. An index of degree of importance constructed from the results can provide a new platform for corporate real estate planning and a strategic approach to commercial property market decisions.
Evaluating investment projects: The hurdle rate
Authors: Chen Hsaio‐Yun , Ward Charles
Published: June 2007

A previous paper in this journal discussed how to estimate the appropriate rate that should be used to evaluate investment projects. In this paper, the same theme is extended to discuss why projects might attract hurdle rates that are higher than the cost of capital. The answer involves discussion of the topic of real options, which may provide a rigorous explanation of how companies can value flexibility in capital budgeting. This paper discusses the gap between the hurdle rate and the cost of capital and explores possible explanations for the rational use of additional barriers before accepting capital projects.
Environmental and brownfield liability: Relative influence on corporate expansion
and relocation
Authors: Gorovitz Robertson Heidi , Reichert Alan K.
Published: June 2007

Many States in America have enacted laws to encourage redevelopment of contaminated urban properties. The laws attempt to do this by addressing one barrier to redevelopment, the environmental liability attached to contaminated
urban properties. In general, the laws attempt to remove or reduce the significance of that barrier by reducing or eliminating the environmental liability risk attached to these properties. Our hypothesis was that these efforts cannot encourage significant redevelopment because they fail to address non‐environmental barriers to urban redevelopment. To determine whether this legislative focus on environmental liability is misplaced, we conducted a survey of Northeast Ohio businesses which had decided, since the enactment of Ohio’s brownfields law, either to move to a new location, or to expand at an existing location. The survey asked businesses to rank the relative importance to their relocation decision of environmental and non‐environmental factors. The results of the survey show that numerous non‐environmental factors were of equal or greater importance to decision‐makers than the environmental status of the property. Therefore, legislative efforts to encourage redevelopment of contaminated urban properties must be expanded to address non‐environmental barriers to redevelopment
News of real estate’s death is greatly exaggerated
Authors: Kirschbraun Thomas C.
Published: June 2007

The Internet and e‐commerce continue to change profoundly the manner in which everyone conducts business. These fundamental changes impact not only the traditional supply chain but also the way in which business is conducted throughout the enterprise. In this paper plausible implications and outcomes are predicted for the future of commercial real estate in the New Economy. Anything that changes how people conduct business also changes where it will be conducted. Companies that anticipate these changes and restructure their fixed‐asset base (including real estate) fastest will gain greater additional competitive advantage in the New Economy. Firms that choose not to adopt the tools of e‐commerce will effectively be choosing to go out of business.
From fiefdom to service: The evolution of flexible occupation
Authors: Harris Robert
Published: June 2007

This paper examines the realignment that is currently taking place within the property supply industry. It traces the origin of service provision within the industry during the last recession. It then outlines the evolution of service provision into a range of products, or occupancy solutions, to suit the increasingly complex needs of occupiers.
The paper identifies the ‘new’ providers and explains the subtle differences in the breadth and depth of their offers. The paper ends with the key challenges facing both suppliers and occupiers of flexible solutions.
Organisational agility and the knowledge infrastructure
Authors: Becker Franklin
Published: June 2007

Flexibility has become a matter of survival for many organisations as we embark on the twenty‐first century. In the real estate field, flexibility has historically meant some combination of different forms of procuring, planning, constructing and financing space. This paper argues that such approaches are necessary, but not sufficient. Senior managers need more robust adaptive strategies that exploit knowledge management tools to model, under conditions of uncertainty, the real estate and human resource implications of different workplace decisions. These facets of workplace strategies are the knowledge infrastructure that enables agile organisations to cope successfully with chronic uncertainty.
In search of flexibility in corporate real estate portfolios
Authors: Gibson Virginia
Published: June 2007

Real estate is an inherently inflexible asset, yet corporate real estate managers increasingly need to find ways in which flexibility can be achieved. Shorter planning horizons, increasing corporate experimentation and growth through mergers and acquisition are but a few of the influences which have led to the need for more flexible resources. One way in which corporate real estate managers can gain a greater insight into the problem is by recognising that real estate is often considered from a variety of perspectives: as a physical, functional and financial asset. Each of these perspectives leads to a different source of flexibility. As a physical asset, corporate real estate managers are concerned with aspects of design, including floorplate sizes, column placement and building services. As a functional asset, corporate real estate managers consider what activities can actually be undertaken inside a building. As a financial asset, corporate real estate managers examine the terms of contracts and the ability (and cost) to terminate those obligations. Each of these types of flexibility is required, but at different times and for different purposes within the life cycle of an organisation. Possibly the most appropriate way to look at the issue is on a portfolio‐wide basis, considering what are an organisation’s core and periphery real estate requirements. This approach requires a different type of examination of the assets but can provide a corporate real estate manager with a firm base for working towards the elusive goal of flexible real estate.
Flexible real estate through knowledge of tax implications
Authors: Smilski Debra K.
Published: June 2007

Technology, telecommunications and new IPO companies bring with them a new definition of ‘rapid growth’ and change. In 1990, ‘fast’ was considered to be a compounded growth rate of 15 per cent. Today companies are currently experiencing compounded growth rates of between 15 and 100 per cent per month! For the real estate practitioner, this creates a definite challenge. Real estate professionals are being asked to create an agile and flexible physical environment that can adapt quickly to the constant change. With this agile and flexible model comes the expectation that corporate real estate (CRE) will provide a return on asset (ROA) and contribute to shareholder value. The key is to manage CRE as a business and to leverage it ‐ whether owned or leased ‐ at the precise moments in the corporate life cycle that make the most sense.