bluuebunny/crossref_metadata_2025 huggingface dataset:
Emerging threats for MNC subsidiaries and the cycle of decline
Authors: Scott Pamela , Gibbons Patrick T.
Published: December 2010

Purpose

Subsidiary units have traditionally feared relocation of their activities to lower‐cost locations. The authors identify other emerging threats which are changing how multinational corporations (MNCs) manage their subsidiary units, and develop a cycle of subsidiary decline demonstrating how these threats can undermine a subsidiary's position within the MNC.

Design/methodology/approach

The paper presents the results of a survey targeted at over 1,100 subsidiary CEOs of MNCs located in Ireland, a program of in‐depth interviews of 24 subsidiary CEOs/directors, and a review of the literature relating to MNC and subsidiary management, are combined to identify emerging threats to subsidiary activities.

Findings

The main threats to subsidiaries' efforts to enhance their role within the MNC comprise: erosion of barriers to trade; growing complexities in corporate governance; and increasingly sophisticated information and communication technology (ICT) capabilities. These threats are enabling the disaggregation of value chains and increased headquarters monitoring and control. This shift in how subsidiaries are managed is leading to a cycle of subsidiary decline.

Research limitations/implications

the results from the survey are subject to the standard limitations and a larger pool of interviewees may have reinforced the qualitative findings.

Practical implications

To increase subsidiary managers' awareness of the need for a strategic response, the authors develop a cycle of subsidiary decline which illustrates how these emerging threats combine to undermine a subsidiary's position within the MNC. Disaggregating value chains and tighter headquarters control can reduce subsidiary bargaining power constraining its abilities to challenge for resources, in turn restraining its combinative capabilities and leading to a decline in its position and contribution to the MNC.

Originality/value

This paper is the first to build a framework illustrating how emerging threats in the external environment may impact the ability of subsidiary units to maintain and develop their position within the MNC.
Mapping the outsourcing landscape
Authors: Mohr Jakki J. , Sengupta Sanjit , Slater Stanley F.
Published: December 2010

Purpose

This article develops a framework that helps clients and service providers make better decisions about whether and when to outsource, and on the appropriate type of outsourcing arrangement.

Design/methodology/approach

The paper is conceptual in nature.

Findings

Companies must align the governance of business functions to the underlying needs, resources, and desired outcomes. Simple procurement may suffice for acquiring standard business services such as cafeteria catering. When economies of scale exist and when transfer of explicit, codified knowledge is involved, straight‐forward transactional “lift and shift” IT and BP outsourcing arrangements will yield cost savings and efficiency. When transfer of know‐how is more tacit, and the goal is to add value to the client's customers beyond cost efficiency, longer‐term strategic outsourcing is appropriate. Finally, when there are risks to expropriation of proprietary knowledge and capital invested, transformational outsourcing is best.

Practical implications

The client and service provider need to ensure they do not overcommit resources in the case of transactional outsourcing while being prepared to invest adequately in strategic and transformational outsourcing. The framework helps to answer the question of when transformational outsourcing arrangements are appropriate. It also makes explicit the various risks involved, so that appropriate governance can effectively address the risks.

Orginality/value

Many authors have written about the pitfalls of outsourcing including rushing through the initiative and not having a formal governance program. To address these, our framework advocates a comprehensive review of the entire array of possibilities, from in‐house development to simple procurement of services in the open market, as alternatives to outsourcing.
The new meaning of customer value: a systemic perspective
Authors: Pynnönen Mikko , Ritala Paavo , Hallikas Jukka
Published: December 2010

Purpose

Today, as services and products are becoming increasingly intertwined and the competition increasingly global, delivering customer value is not as simple as it used to be. In this article, we suggest that in contemporary business environment customer value is often systemic by nature. This means that managers need to assess their firm's offering through systems‐thinking perspective in order to find out what are the most effective ways to create value for the customer.

Design/methodology/approach

Evidence of systemic customer value is provided in the form of illustrative examples from Apple's and Google's offerings. Furthermore, we utilize a quality function deployment (QFD) tool to provide an example of modeling of the systemic value attributes.

Findings

This paper illustrates how such systemic customer value in the firm's offering can be modeled. This enables the tracking down of the functions that produce the most value in terms of meeting various customer needs. A firm that understands the systemic nature of customer value is better able to concentrate on improving the core functions of its offering, thus gaining competitive advantage and value‐based differentiation over its rivals.

Practical implications

The paper identifies three key issues and best practices concerning systemic value that are helpful for practitioners in improving their firms' offerings, i.e. connectivity, the importance of platforms, and the emerging role of free functions.

Originality/value

The novelty of this paper lies in its analysis of systemic value. Value creation for the customer is often approached from a rather narrow perspective, without understanding the systemic viewpoint.
Making strategies stick
Authors: Jackson Stuart E.
Published: December 2010

Purpose

Many great strategies fail to deliver any value for the simple reason that they never get implemented. This article discusses some of the barriers to organizational change and proposes six tactics that can help organizations get from an unimplemented strategy to an implemented one.

Design/methodology/approach

The author uses a case study of Blockbuster, Inc., which had more than ten years' notice of the need to change its operating model but was unable to do so and recently went into bankruptcy protection. The author then presents a series of lessons and examples for how companies can avoid a similar fate.

Findings

The key lessons from the case studies involve six tactics: having explicit 100 and 1,000 day plans for the strategy development and implementation process, respectively; having high expectations but separating aspirations from the budgeting process; communicating the strategy clearly and concisely; showing the necessary leadership commitment; making some quick moves to signal implementation of the strategy; and realigning the organization to fit the new strategy.

Originality/value

The key message of this article is that strategy does not create value unless implemented. Executives and advisers with responsibility for strategy need to devote as much attention to ensuring the strategy is implemented as they do to developing the strategy itself.
Grading myself
Authors: Marren Patrick
Published: December 2010

Purpose

To review a past column to see whether some “heads‐ups” contained in it were on target or off.

Design/methodology/approach

The paper take the for of an opinion column.

Findings

In the words of Sam Goldwyn, “Prediction is difficult, especially about the future.”

Originality/value

Demonstrates the perils of prediction in a unique way.
The improvement of dyeability of flax fibre by urea treatment
Authors: Sun H. , Jiang X. , Shen Y. , Chen C.
Published: December 2010

Purpose

The purpose of this paper is to improve the dyeability of flax fibre by modification via urea treatment and to explore the mechanism of such improvement.

Design/methodology/approach

The modification to the flax fibre was carried out with different concentrations of urea solution, then the optimum condition for the dyeability improvement was investigated by the measurement of the dyeing colour depth. The chemical properties of the raw and the treated flax fibres were characterised using a variety of techniques including Fourier transform‐infrared spectroscopy analysis and X‐ray photoelectron spectroscopy analysis.

Findings

It was found that the dyeability of flax fibre had been significantly improved via urea treatment. The mechanism of the improvement of the dyeability of the flax fibre was found to be due to the amino groups (NH2) introduced to the flax fibres during urea treatment, which increased the activity of the reaction between the dye and the fibre compared to hydroxyl groups of raw flax fibre.

Practical implications

The treatment method developed provided a practical and effective solution to poor dyeability of flax fibre.

Originality/value

The method could be adapted for use in industrial scale flax dyeing with satisfactory levels of exhaustion and fixation.
Construction manpower demand forecasting
Authors: Wong James M.W. , Chan Albert P.C. , Chiang Y.H.
Published: December 2010

Purpose

The purpose of this paper is to examine the performance of the vector error‐correction (VEC) econometric modelling technique in predicting short‐ to medium‐term construction manpower demand.

Design/methodology/approach

The VEC modelling technique is evaluated with two conventional forecasting methods: the Box‐Jenkins approach and the multiple regression analysis, based on the forecasting accuracy on construction manpower demand.

Findings

While the forecasting reliability of the VEC modelling technique is slightly inferior to the multiple log‐linear regression analysis in terms of forecasting accuracy, the error correction econometric modelling technique outperformed the Box‐Jenkins approach. The VEC and the multiple linear regression analysis in forecasting can better capture the causal relationship between the construction manpower demand and the associated factors.

Practical implications

Accurate predictions of the level of manpower demand are important for the formulation of successful policy to minimise possible future skill mismatch.

Originality/value

The accuracy of econometric modelling technique has not been evaluated empirically in construction manpower forecasting. This paper unveils the predictability of the prevailing manpower demand forecasting modelling techniques. Additionally, economic indicators that are significantly related to construction manpower demand are identified to facilitate human resource planning, and policy simulation and formulation in construction.
The development and testing of a hierarchical measure of project OHS performance
Authors: Lingard Helen , Wakefield Ron , Cashin Patrick
Published: December 2010

Purpose

This paper seeks to examine a hierarchical measurement model for occupational health and safety (OHS) performance developed for use in the Australian construction industry and tested over the life of one case study construction project. The model was intended to provide a more sensitive and informative measure of project OHS performance than traditional injury frequency rates.

Design/methodology/approach

Two measurement tools were tested. The tools, a monthly weighted safety index and a quarterly safety climate survey, were used to measure OHS performance and performance data are presented.

Findings

The data suggest convergent validity, indicated by consistent results between the two measures. Results also indicated that a combination of measurement techniques provides more comprehensive data pertaining to project OHS performance and enables the diagnosis of OHS issues that would be undetected with reliance exclusively on traditional measures, such as lost time injury frequency rates.

Research limitations/implications

The implications for future research lie in the demonstrated need to carefully evaluate the validity of the safety index and safety climate survey in future construction projects, and in the broader construction context. The results were limited to an evaluation of the measurement model in a single case study construction project and future testing is needed to determine the generalisability of the model.

Practical implications

The implications for practice are that multiple measures of OHS performance, including leading indicators and surveys of workers' attitudes and perceptions of project OHS, provide a more useful basis for the development of targeted OHS improvement strategies.

Originality/value

The paper develops a theoretical framework for the measurement of OHS using positive performance indicators and safety climate surveys. The evidence for convergent validity suggests that, in combination with traditional lost time injury rates, these measures provide a more robust method for the early detection and rectification of OHS issues in construction projects.
The logistics of construction supply chains: the builders' merchant perspective
Authors: Vidalakis Christos , Tookey John E. , Sommerville James
Published: December 2010

Purpose

The purpose of this paper is to consider the applicability of logistics management in construction and facilitate a better understanding of construction supply chains by studying the logistical functions of builders' merchants.

Design/methodology/approach

Given that logistics application in construction is still in its infancy, conceptual understanding of the problem is a prerequisite. Thus, a grounded theory approach is followed utilising pre‐existing data as a means of building a model faithful to evidence. The model is analysed by following a discrete‐event simulation modelling approach.

Findings

This research demonstrates that examining supply chains from a logistics viewpoint can provide significant insight into the performance of construction supply chains. The analysis also shows that logistics costs are exponentially related to the levels of material demand and number of vehicle movements.

Research limitations/implications

The developed model has to be further investigated and tested for different scenarios. Supplementary refinements of the model are necessary in order to allow the generalisation of the results and the development of an analytical planning tool.

Practical implications

This research illustrates the increased potential of construction for benefiting from an improved capability within logistics which can lead to further developments within the field of logistics in the industry.

Originality/value

This paper considers the significant function of builders' merchants in the supply chains in order to balance the contractor‐centric research efforts that dominate existing literature and take into consideration the holistic nature of supply chain management and its operational aspects.
Offsite production: a model for building down barriers
Authors: Nadim Wafaa , Goulding Jack S.
Published: December 2010

Purpose

Recent calls were launched worldwide for the “revival” of offsite production (OSP) (under numerous nomenclatures) in order to improve the construction industry, meet market demand; and furthermore, overcome the dependence on skilled labour. Despite the well‐documented benefits of OSP, the construction industry seems to be somewhat hesitant in effectively responding to those calls. Forming part of a triangulated research, this paper aims to explore the European Union (EU) construction industry main patterns of concern with regard to OSP. The findings from this paper are set to guide the development of an OSP training and education model (not reported in this paper).

Design/methodology/approach

A qualitative approach using the content analysis technique was employed to analyse secondary data (transcripts) from 54 open‐ended questionnaires carried out under the ManuBuild EU research project, to deeply explore the EU construction industry main perceptions/concerns which may represent a barrier to the wider uptake of OSP.

Findings

The EU construction industry reluctance to embrace OSP practices is largely attributable (amongst others) to the unsuccessful past experiences associated with this approach. While the findings were in line with extant literature “hard” issues/concerns such as cost and productivity, additional findings revealed “softer” issues/concerns such as the flexibility of the OSP approach, preservation of the identity of cities, and the ability to adapt OSP buildings to older generations' needs and requirements.

Originality/value

This paper condensed and synchronised all OSP‐related patterns of concern in a conceptual model. The model expanded on the well documented triad model of “people”, “technology”, and “process”; and further added the “product” and “market” pattern to it. Should all these main five OSP patterns of concerns be addressed, it is postulated that this would help support the wider uptake of OSP within the EU construction industry; and furthermore create a shared understanding between industry and training/education institutions to enable an OSP knowledgeable industry.
Innovating by “doing both”: Cisco manages contradictions that drive growth and profit
Authors: Davidson Alistair
Published: December 2010

Purpose

This interview aims to discuss Ciso's approach to innovation with Inder Sidhu, Senior Vice President Strategy and Planning for Worldwide Operations and a member of the company's Operating Committee. His new book about managing seemingly contradictory alternatives is Doing Both: How Cisco Captures Today's Profit and Drives Tomorrow's Growth.

Design/methodology/approach

The paper presents an interview with Sidhu whose thesis: “Our experience at Cisco” suggests that the concept of “Doing Both” is relevant to a wide range of management decisions and people must learneto look at every opportunity not as a choice between apparently conflicting goals, but rather a way of obtaining a multiplier effect by seeking and meeting two apparently conflicting goals.

Findings

Sidhu advocates that organizations actively manage three sources of change in their organization – sustaining change that improves the existing business, disruptive change that needs to be developed outside the core business and externally sourced change that can be spun into the business.

Practical implications

Sidhu believes that doing both means asking your organization to elevate its game. But asking is, by itself, not enough. Leaders need to change their organization – its approval processes, its reward systems, its innovation language and its expectations about the rate of change.

Originality/value

According to Sidhu, based on Cisco's experience, doing both seems to work best in market transitions, when the nature of the market is changing or there is potential for new business models and disruptive approaches.
The evolving Internet in 2025: four scenarios
Authors: Rueda‐Sabater Enrique , Derosby Don
Published: December 2010

Purpose

To explore the future of the Internet in 2025, the authors participated in a collaborative research and scenario development project between Cisco, a global leader in Internet architecture and the scenario consultancy GBN, a member of the Monitor Group. The Internet's shape 15 years from now and the path it takes to get there are uncertain and unpredictable, hence the need for scenarios.

Design/methodology/approach

To help explore possible futures of the Internet in 2025, researchers from Global Business Network and Cisco first identified a set of premises that provided a foundation for all the scenarios. Then they identified key drivers of change and synthesized them into three “axes of uncertainty.”

Findings

Finally, from the many plausible scenarios, they selected four to develop in depth.

Practical implications

These scenarios can help decision‐makers in corporations directly involved in the business of the Internet and national leaders and policymakers perceive emerging patterns, detect big risks or opportunities in advance, and rehearse ways of operating in the different possible future environments.

Originality/value

The four scenarios are: Fluid Frontiers: this is a world in which the Internet becomes pervasive; Insecure Growth: this is a world in which users – individuals and business alike – are scared away from intensive reliance on the Internet; Short of the Promise: this is a frugal world in which prolonged economic stagnation in many countries takes its toll on the spread of the Internet; and Bursting at the Seams: this is a world in which the Internet becomes a victim of its own success.
Should strategy professionals be certified?
Authors: Rollinson Randall
Published: December 2010

Purpose

The author believes that corporate practitioners and the leaders who rely on them stand to gain from supporting a training and certification program in strategic planning and strategic management. this paper aims to address this issue.

Design/methodology/approach

The author researches and lays out the necessary steps that need to be taken before strategic planning can become a recognized profession.

Findings

The steps leading to professional certification are: an accepted set of standards for strategic‐planning practitioners needs to be developed and a widely recognized practitioner‐credentialing program must be in place.

Research limitations/implications

The paper reports on the progress toward a goal of credentialing made by the Association for Strategic Planning.

Practical implications

The Association for Strategic Planning now offers two levels of certifications: the Strategic Planning Professional and the more advanced Strategic Management Professional plus a designation, the Strategic Planning Apprentice. In addition, the Association for Strategic Planning has approved an initial set of Registered Educational Providers that offer courses, seminars, and programs in strategic planning and strategic management.

Originality/value

Chief executive officers, trainers and planners will be interested in this report on the state of professional credentialing and training in the field of strategic management and planning.
The financial crisis and the haphazard pursuit of financial crime
Authors: Tomasic Roman
Published: December 2010

Purpose

The financial crisis has been something of a turning point in the regulatory response to financial crime around the world. The failure of light‐handed regulation and risk assessment by both industry and regulators made the operation of financial regulatory agencies almost untenable, often leading to calls for their replacement by more effective agencies. The purpose of this paper is to assess the nature of this regulatory challenge.

Design/methodology/approach

The paper discusses some of the case studies that have emerged from the dark side of regulatory and enforcement policies in recent times.

Findings

A culture of minimal regulation of financial markets meant that many undesirable practices (such as insider trading, foreign corrupt practices, tax avoidance, money laundering and other frauds) were able to avoid detection until public outrage led to regulatory and prosecutorial agencies being prompted into action following the collapse of financial markets.

Research limitations/implications

More detailed studies of particular institutions will be necessary; this will become possible as the current financial crisis subsides.

Originality/value

This paper explores some of the factors behind this state of affairs and makes policy recommendation in regard to the need for more effective internal controls and monitoring measures within the modern financial corporation.
Financial crime in business organizations: an empirical study
Authors: Gottschalk Petter , Solli‐Sæther Hans
Published: December 2010

Purpose

The purpose of this empirical study of financial crime in business organizations is to create insights into management competence, applications of information technology and use of information sources to combat financial crime.

Design/methodology/approach

This empirical research was carried out by a web‐based questionnaire combined with a letter to the largest business organizations in Norway.

Findings

Executives demonstrate competence in crime prevention by introducing control mechanisms and reporting routines. However, when suspicion of crime occurs, executives are not competent in carrying out interviews, investigate documents and find electronic evidence.

Practical implications

Executives need to focus less on routines and regulations and more on information sources and knowledge management.

Originality/value

Both descriptive statistics as well as correlation analysis in this paper provide new insights into the extent of financial crime, as well as competence, information sources and systems in a developed economy such as Norway.
The Sallie Rohrbach story: lessons for auditors and fraud examiners
Authors: Perri Frank S. , Brody Richard G.
Published: December 2010

Purpose

The purpose of this paper is to understand workplace violence risk factors linked to fraud detection and safeguards professionals can implement to reduce such risk.

Design/methodology/approach

Sources of information consisted of published news media, scholarly articles, and articles retrieved from the web.

Findings

Findings suggest that there may be an underestimation by anti‐fraud professionals as to the possibility of a white‐collar criminal resorting to violence to prevent his or her fraud schemes from being detected and disclosed.

Practical implications

The paper represents a useful guide for anti‐fraud professionals to incorporate into their practice by considering workplace risk factors and solutions to mitigate such risks.

Originality/value

This paper serves to educate anti‐fraud professionals to recognize workplace violence risk factors, the behavioral traits of violent white‐collar criminals, and the steps they can take to mitigate such risks.
Manipulating perceived risk to deter and disrupt counterfeiters
Authors: Reynolds David
Published: December 2010

Purpose

The purpose of this paper is to highlight the benefits of alternative, business‐based approaches to tackling the trade in counterfeit goods.

Design/methodology/approach

The findings in the paper are based on over six years of personal experience in the brand protection business, on top of over 20 years operational experience dealing with organized crime topics. The conclusions are also based on assessments drawing on a large body of intelligence on the operations, business practices, and vulnerabilities of counterfeiters and the relative impact of anti‐counterfeiting programs.

Findings

A careful understanding of the trade in counterfeits reveals a number of vulnerabilities in the business model that can be exploited to disrupt or deter the counterfeiters. In particular, sales brokers often see the smallest profit margins, survive hand to mouth, and put themselves at risk by directly touting sales of counterfeits to persons they do not know over the internet and in face‐to‐face meetings. They offer a natural entry point to the business for both intelligence collection and targeted seizures and influence campaigns. These campaigns can and should exploit both the lack of means to mitigate counter‐party risk and the natural distrust seen among participants in criminal businesses. Raising the perception of costs and risks only slightly can prompt counterfeiters to move away from certain brands and industries, sometimes permanently. A means to measure the effectiveness of such influence campaigns for a company is possible using a metric that takes into account the impact of disruption and targeted seizures leading to an estimate of recovered potential sales.

Originality/value

The approach detailed in the paper is unique and has not been successfully pursued and fully exploited by any firm or organization charged with tackling the trade in counterfeits.
The makings of a statement: accounting for employee health
Authors: Holmgren Caicedo Mikael , Mårtensson Maria
Published: December 2010

Purpose

The purpose of this paper is to explore how the idea of health statements is constructed and on what assumptions it rests.

Design/methodology/approach

Published health statements from the Swedish municipality of Umeå are analysed in terms of the rhetoric of the arguments that are presented. This is done in order to identify the assumptions the arguments rest on.

Findings

Although no empirical proof is provided, the arguments presented in the health statements of Umeå municipality follow a logic that goes from success factors to good results via employee health and satisfaction as a proxy of internal quality of work that in turn is assumed to create good quality of service. The construction of that logic is concomitantly the production and reproduction of a moral system of values that rest on the ambiguousness and implicitness.

Originality/value

A discussion about the assumptions expressed in Umeå municipality's health statements, how they are constructed to make the management accounting of employee health work and the construction of morals that is implicit in that system.
Airfare price insurance: a real option model
Authors: Jain Adishwar K. , Cox Raymond A.K.
Published: December 2010

Purpose

The purpose of this paper is to examine the uncertainty of acquiring the lowest possible airfare when contemplating the purchase of a ticket. A real option model is applied to value insurance contracts that could be offered to passengers to cope with price risk. Furthermore, the premiums charged for such airfare price insurance contracts can augment airline carrier revenues.

Design/methodology/approach

Prices on 14 airfares were collected for 79 consecutive days on an assortment of US domestic and international flights from four airline carriers. Volatility in airfares was shown using the price range and SD. The Black‐Scholes‐Merton model was employed to value the call and put options representing different airfare price insurance contracts.

Findings

Airfare price insurance contracts affordability was demonstrated ranging from 1.55 to 11.28 percent of the average dollar ticket price.

Research limitations/implications

The valuations in the paper were based on ex post data that would not be available to the customer purchaser. Nonetheless, the airline carriers that sell the insurance would have better estimates of the price volatility and therefore could price the contracts to make a profit.

Practical implications

Airline passengers would have an opportunity to reduce the ticket price risk they face when buying their tickets. Airline carrier could increase revenues by offering such products.

Social implications

The opportunity to manage price risk contributes to the completeness of markets.

Originality/value

The paper shows that airfare price insurance contracts are a viable tool in the management of price risk.
Prepayment risk and bank performance
Authors: Fayman Alex , He Ling T.
Published: December 2010

Purpose

The purpose of this paper is to identify effects of prepayment risk on performance of commercial banks in the USA. Understanding how various risks impact banks' performance can help to improve performance of financial institutions and better estimate risk premia charged by banks on the loans they extend to their customers.

Design/methodology/approach

The paper measures the prepayment risk premium and aims to gauge its effect on various ratios that measure bank performance. Since, risk management is an important goal of financial management, it is important to learn how prepayment risk pertains to bank performance.

Findings

The results of this paper suggest that prepayment risk may significantly impact return on loans, return on equity and real estate loans to total loans ratios of various commercial banks. The impacts, in terms of strength and direction, vary between the periods of pre‐ and post‐passage of the Financial Institutions Reform and Recovery Act. The results indicate that the addition of prepayment risk variable to regression models can generally increase their ability to explain bank performance metrics.

Originality/value

To the authors' knowledge, there is no existing literature that gauges the impact of prepayment risk on various components of bank performance. There is existing literature that shows that bank stocks move in response to prepayment risk.
Corporate dividends decisions: evidence from Saudi Arabia
Authors: Al‐Ajmi Jasim , Abo Hussain Hameeda
Published: December 2010

Purpose

The paper aims to test the stability of dividend policy, test the effect of cash flow on the company's dividend policy, identify the factors that determine a firm's cash dividend payments, and examine the characteristics of dividend‐paying and non‐paying firms.

Design/methodology/approach

The hypotheses are tested using unbalance panel data for a sample of 54 Saudi‐listed firms during 1990‐2006.

Findings

Saudi firms pay out a lower proportion of their cash flows compared to the proportion of dividends of reported earnings. Firms have more flexible dividend policies since they are willing to cut or skip dividends when profit declines and pay no dividends when losses are reported. Lagged dividend payments, profitability, cash flows, and life cycle are determinants of dividend payments. Agency costs are not a critical driver of dividend policy of Saudi firms. Zakat is found to play a role in explaining firm's dividend decisions.

Originality/value

This paper is the first to study the determinants of dividend policy in a country where companies are required to pay Islamic zakat.
Dividend policy and share price volatility: UK evidence
Authors: Hussainey Khaled , Oscar Mgbame Chijoke , Chijoke‐Mgbame Aruoriwo M.
Published: December 2010

Purpose

The purpose of this paper is to examine the relation between dividend policy and share price changes in the UK stock market.

Design/methodology/approach

Multiple regression analyses are used to explore the association between share price changes and both dividend yield and dividend payout ratio.

Findings

A positive relation is found between dividend yield and stock price changes, and a negative relation between dividend payout ratio and stock price changes. In addition, it is shown that a firm's growth rate, debt level, size and earnings explain stock price changes.

Practical implications

The paper supports the fact that dividend policy is relevant in determining share price changes for a sample of firms listed in the London Stock Exchange.

Originality/value

To the best of the authors' knowledge, this paper is the first to show that corporate dividend policy is a key driver of stock price changes in the UK.
Testing forecasting power of the conditional relationship between beta and return
Authors: Verma Rahul
Published: December 2010

Purpose

The purpose of this paper is to investigate the forecasting power of the conditional relationship between beta and international stock returns.

Design/methodology/approach

Using the market model, the individual betas for each country in the sample are estimated by ordinary least square. The conditional relation between beta and return is tested by estimating cross‐sectional regressions for each month (i.e. 343 cross‐sectional regressions). Mean value of coefficients and t‐statistics (one tail) are computed to test whether the mean values of coefficients are significantly positive and negative. Whether there is a systematic relationship between the bull market and the bear market is also tested.

Findings

Overall, no support of the model was found. Although positive, there is insignificant relationship between beta of current period when excess market return is positive with next period stock return. Moreover, although negative, there was insignificant relationship between beta of current period when excess market return in negative with next period stock return. Similar results were found when the sample was divided into January and non‐January months.

Originality/value

This contribution is to test the validity of conditional relationship between beta and stock returns in international setting by considering the effect of current period up‐ and down‐markets on the next period stock return. If the conditional version of capital asset pricing model (CAPM) holds, there must be a consistent result, i.e. similar to those obtained by the studies using contemporaneous relationship. It is important to perform such tests on the conditional version of CAPM since an ex post state dependent model may not be used as a forecasting model.
Commercial aerospace supply chains
Authors: Rose‐Anderssen C. , Baldwin J.S. , Ridgway K.
Published: December 2010

Purpose

The purpose of this paper is to explore the evolution of commercial aerospace supply chains.

Design/methodology/approach

The approach is presented as evolutionary steps by introduction of key supply chain practices. These steps are brought together by applying cladistics, a classification approach from the biological sciences, to classify the evolutionary relationships between supply chain forms. This is presented in two stages.

Findings

Earlier research produced a “conceptual cladogram” from secondary data that describes the evolution of aerospace supply chains. This paper expands on this through empirical validation and develops a “factual cladogram”, revealing a newly emerging supply chain form. Key practices define the change of supply chain forms in the evolutionary adaptation to market realities and to proactive responses to increased competition.

Research limitations/implications

The factual cladogram as such does not necessarily prescribe world‐class performance but may serve as a platform for discussing and monitoring the properties of the emergent supply chain in light of strategies for the future. As such it becomes a strategic bench‐marking tool for the change of practices, technologies and products.

Practical implications

In practical terms, the approach may be developed as a strategic tool for policy development, and a decision support tool through the creation and exploration of future supply chain form scenarios.

Originality/value

Theoretically, this paper elaborates on a framework for how and why evolution produces diversity of supply chain form.
Risks affecting ERP post‐implementation
Authors: Pan Kuifan , Baptista Nunes Miguel , Chao Peng Guo
Published: December 2010

Purpose

The purpose of this paper is to identify, assess and explore potential risks that can affect long‐term viability of enterprise resource planning (ERP) systems in the post‐implementation and exploitation phase.

Design/methodology/approach

The research took a large Chinese private group as a case study. A theoretical ERP risk ontology, which was adopted from the literature, was used to frame the study and generate data collection tools. Two questionnaires were thus designed and used to explore ERP post‐implementation risks in the case company.

Findings

The study identified 37 risk events, of which seven were identified as the most critical for ERP exploitation in the case company. The findings show that organisational and human‐related risks are the crucial factors for potential ERP failure and not the usually suspect technical risks.

Research limitations/implications

This study contributes to the knowledge of ERP in general, and provides valuable insights into ERP post‐implementation risks in large companies in particular.

Practical implications

The findings will not just be useful in supporting ERP risk identification and management in the large Chinese companies, but will also be beneficial to other large companies in general, which may be confronted with similar ERP exploitation challenges.

Originality/value

The majority of large companies in China and in the West have implemented ERP systems and engaged in the system post‐implementation phase. Most of the existing literature in the field focuses on the process of implementation. This paper looks forward to the risks involved in the post‐implementation phase. Understanding potential risks that may occur during ERP exploitation is vital for these large firms to achieve and sustain business success through their ERP systems.
Social influence, voluntariness, experience and the internet acceptance
Authors: Sharif Abbasi Muhammad , Hussain Chandio Fida , Fatah Soomro Abdul , Shah Farwa
Published: December 2010

Purpose

It has been argued that behavioural models of technology acceptance do not serve equally across cultures. This study aims to extend technology acceptance model (TAM) to suit in a developing country context. The model attempts to identify the relationship between social norms, management support and moderating factors voluntariness and experience.

Design/methodology/approach

The study used a quantitative methodology to investigate the correlational paths. A cross‐sectional survey was completed by 504 academics working in higher educational institutes of Pakistan. The data were analysed using structural equation modelling (SEM) based on partial least squares (PLS) methods.

Findings

The extended model achieved acceptable fit and most of the hypothesised paths were significant. Determinant perceived usefulness was an important construct of the internet acceptance, i.e. R2=34 per cent more than behavioural intention. Moderator experience diminished the impact of usefulness on behaviour usage.

Practical implications

The findings suggest that expecting acceptance behaviour from individuals on the basis of only TAM's constructs is not enough for introducing new IT technologies. The study reveals that an individual's perceptions are formed/changed through attitudinal and social beliefs, along with management support and usage experience.

Originality/value

The study is useful in non‐western cultural contexts. Specifically, in contrast to previous studies, diversity of individuals' acceptance behaviour is examined within a single south‐Asian country's context.
A Graphical Diagnostic for Identifying Influential Model Choices in Bayesian Hierarchical Models
Authors: SCHEEL IDA , GREEN PETER J. , ROUGIER JONATHAN C.
Published: December 2010

Abstract. Real‐world phenomena are frequently modelled by Bayesian hierarchical models. The building‐blocks in such models are the distribution of each variable conditional on parent and/or neighbour variables in the graph. The specifications of centre and spread of these conditional distributions may be well motivated, whereas the tail specifications are often left to convenience. However, the posterior distribution of a parameter may depend strongly on such arbitrary tail specifications. This is not easily detected in complex models. In this article, we propose a graphical diagnostic,the Local critique plot, which detects such influential statistical modelling choices at the node level. It identifies the properties of the information coming from the parents and neighbours (the local prior) and from the children and co‐parents (the lifted likelihood) that are influential on the posterior distribution, and examines local conflict between these distinct information sources. The Local critique plot can be derived for all parameters in a chain graph model.
The Chief Executive’s Influence on Corporate Design Management Activities
Authors: Song Min Jeong , Nam Ki‐Young , Chung Kyung‐won
Published: December 2010

An increasing number of chief executives (CEs) understand the importance of design and show strong interest in design management. What specific traits or behavior factors are common to the CE who values design management? How do these core factors interact with one another to produce successful designs and design management? To answer these questions, researchers reviewed company literature and public press materials in order to identify the influential factors that would most help a CE toward successful designs and design management. The review found four: design awareness, good sense of design, support for design, and involvement in design. Next, a survey was carried out targeted at leading corporations based in Korea and overseas. (The survey was aimed at the senior designers of the companies, rather than the chief executives themselves, in the interests of objectivity as well as knowledge of the subject.) The research examined the extent of the chief executives’ design awareness and its influence on design and the correlation among the four factors mentioned above, as well as correlations between those factors and their effects on design tasks and output. Further, the research demonstrates that the inter‐relationships among the influential factors themselves may have either a positive or a negative effect on corporate design management.
Microorganisms with Novel Dissimilatory (Bi)Sulfite Reductase Genes Are Widespread and Part of the Core Microbiota in Low-Sulfate Peatlands
Authors: Steger Doris , Wentrup Cecilia , Braunegger Christina , Deevong Pinsurang , Hofer Manuel , Richter Andreas , Baranyi Christian , Pester Michael , Wagner Michael , Loy Alexander
Published: December 2010

Peatlands of the Lehstenbach catchment (Germany) house as-yet-unidentified microorganisms with phylogenetically novel variants of the dissimilatory (bi)sulfite reductase genesdsrAB. These genes are characteristic of microorganisms that reduce sulfate, sulfite, or some organosulfonates for energy conservation but can also be present in anaerobic syntrophs. However, nothing is currently known regarding the abundance, community dynamics, and biogeography of thesedsrAB-carrying microorganisms in peatlands. To tackle these issues, soils from a Lehstenbach catchment site (Schlöppnerbrunnen II fen) from different depths were sampled at three time points over a 6-year period to analyze the diversity and distribution ofdsrAB-containing microorganisms by a newly developed functional gene microarray and quantitative PCR assays. Members of novel, uncultivateddsrABlineages (approximately representing species-level groups) (i) dominated a temporally stable but spatially structureddsrABcommunity and (ii) represented “core” members (up to 1% to 1.7% relative abundance) of the autochthonous microbial community in this fen. In addition, denaturing gradient gel electrophoresis (DGGE)- and clone library-based comparisons of thedsrABdiversity in soils from a wet meadow, three bogs, and five fens of various geographic locations (distance of ∼1 to 400 km) identified that oneSyntrophobacter-related and nine noveldsrABlineages are widespread in low-sulfate peatlands. Signatures of biogeography indsrB-based DGGE data were not correlated with geographic distance but could be explained largely by soil pH and wetland type, implying that the distribution ofdsrAB-carrying microorganisms in wetlands on the scale of a few hundred kilometers is not limited by dispersal but determined by local environmental conditions.
Detection and Characterization of aCryptosporidiumIsolate from a Southern Elephant Seal (Mirounga leonina) from the Antarctic Peninsula
Authors: Rengifo-Herrera C. , Ortega-Mora L. M. , Gómez-Bautista M. , García-Moreno F. T. , García-Párraga D. , Castro-Urda J. , Pedraza-Díaz S.
Published: December 2010

The presence ofCryptosporidiumandGiardiain 221 fecal samples from different species of Antarctic pinnipeds was investigated by immunofluorescence microscopy and PCR.Cryptosporidium, a skunk-like genotype, was detected only in a southern elephant seal.Giardiawas not detected. This is the first report of aCryptosporidiumsp. in Antarctic marine mammals.