bluuebunny/crossref_metadata_2025 huggingface dataset:
Clinical trials risk: a new assessment tool
Authors: Brown Anthony Scott
Published: May 2011

Purpose

Risk management is becoming an increasingly important topic in healthcare. The dangers of conducting clinical trials were brought to the attention of the public by the media in 2006 with the TGN1412 phase 1 clinical trial. Clinical trials are however important for the development of new drugs. There are a number of gatekeepers for the safety of trials but risk assessment is now becoming an important aspect. This paper aims to focus on clinical trials.

Design/methodology/approach

A new risk assessment tool was developed to collect data relating to the contributory factors and control measures associated with clinical trials. The responses to a series of 29 questions are then scored to inform a risk rating for the clinical trial

Practical implications

The theoretical model was converted into a Microsoft Excel spreadsheet with drop down boxes for the responses to the questions. Research management staff have found the tool simple and quick to use. A printout of the assessment can be placed in the study folder as evidence. Highlighted risks are then flagged up to the organisation's corporate risk register and an action plan developed.

Originality/value

The tool has been utilised to assess risks of all research projects from educational studies such as MSc, PhD to medical device trials and drug trials. Furthermore it has assessed risks in the acute, primary care and mental health sectors.
Audits and their impact on clinical practice
Authors: Komuravelli Aravind , Smith Jennifer
Published: May 2011

Purpose

This paper aims to examine the impact of a number of audits on clinical practice within a large mental health NHS trust. It aims to consider all audits that had been reaudited by psychiatry trainees and to compare the adherence to various standards before and after reaudit.

Design/methodology/approach

The authors examined all available clinical audits undertaken by psychiatry trainees that had been reaudited within Mersey Care NHS Trust. The results were analysed using SPSS version 16.0 for Windows. Differences between the results before and after reaudit were tested for using Pearson chi‐squared and Fisher's exact tests, both two‐tailed.

Findings

Significant improvements were noted in five of the 35 standards compared before and after reaudit. Only one reaudit, that of the assessment of physical health and of metabolic and cardiovascular risk in inpatients in Ashworth Hospital, showed significant deteriorations in adherence to the standards which was seen in seven of the nine parameters.

Originality/value

The reaudits demonstrated only a limited improvement in practice. This highlights the need for a more structured approach to involvement of junior doctors in clinical audit and more robust methods of dissemination and implementation of recommendations.
Is a primary care orthopaedic interface service sustainable in a continually changing political and healthcare environment?
Authors: Ferguson Sarah , Cook Fiona
Published: May 2011

Purpose

Waiting times for secondary care orthopaedic appointments have been problematic for many years and led to the development of services outside traditional secondary care settings. The purpose of this paper is to question the sustainability of a primary care musculoskeletal interface service in the face of continuing policy change and future upheavals in the NHS design.

Design/methodology/approach

This paper considers the political, organisational, and governance issues faced by the NHS Bath and North East Somerset Orthopaedic Interface Service (OIS). It discusses critical factors that test its viability.

Findings

The OIS retain 50 per cent of orthopaedic patients referred via the Choose and Book system. Of those, 21 per cent of patients seen were referred onto secondary care, the rest are managed in primary care. Patient feedback on their experience within the OIS service is overwhelmingly positive.

Practical implications

The experiences described could be of value to new services, or for future benchmarking.

Social implications

Increasingly services will be provided outside traditional secondary care settings. There needs to be an increasing emphasis on self‐management as resources become increasingly under pressure.

Originality/value

The paper will be of interest to clinicians, commissioners, providers and possibly the general public. There was a flurry of literature when these services were first established but there has been less published of late, and this paper provides a contemporary perspective.
Local environmental governance, public policies and deforestation in Amazonia
Authors: Borges de Lima Ismar , Buszynski Leszek
Published: May 2011

Purpose

The purpose of this paper is to examine the problem of deforestation in Amazonia and the role of the Brazilian government with regard to the capitalist demands and development needs for the region. It offers a brief historical review of public policies and programs for Amazonia, and critically analyzes their conflicting aspects. Local environmental governance (LEG) is proposed as a conceptual framework and a participatory forest management strategy for dealing with the forest destruction.

Design/methodology/approach

The paper is a qualitative‐based study which provides a systemic analysis of the process of occupation and the key public policies for Amazonia from over the last decades, particularly during thecoup d'étatregime. Based on a literature review and official documents, descriptive data are produced which helped in understanding the political phases of the Brazilian government administrations.

Findings

The study identified some participatory‐based, decentralized models of forest management and existing forest regulatory frameworks which can serve as an illustrative sketchy arrangement on how local environmental governance can become operative and serviceable for a sustainable balance between the use of natural resources, conservation and regional planning. These findings can help future investigations on governance models. The research also shows how the Brazilian government has perceived Amazonia throughout the decades and how this perception influenced the implementation of development and settlement policies for the region.

Originality/value

The main focus of this article is the debate on the concept of local environmental governance (LEG) as a tool for empowering the local communities through the decentralization of decision making as well as the attempt to find implemented normative and institutional structures within the Amazonian context which can translate aspects of LEG.
Environmental diagnostic model to support the environmental municipality planning
Authors: Amiro Motany de Albuquerque Azevedo Helsio , de Souza Bias Edilson
Published: May 2011

Purpose

The purpose of this paper is to provide a methodology with which it is possible to perform analysis of the environmental situation of a given municipality.

Design/methodology/approach

The methodology is referred to as municipal environmental diagnosis (MED). MED uses methodologies of various authors such as Mota, Santos amongst others, public and private institutions such as the Ministry of the Environment of Brazil and the United Nations Development Program. The proposed model has, as objectives, the creation and application of techniques for environmental auditing and their analysis for planning in a designated area; in this case the Municipality of Inhambane in Mozambique was used as an area of study.

Findings

This methodology is applicable and gives support to environmental planning and management and, subsequently, could serve as a diagnostic base for environmental components in other Mozambican municipalities and around the world.

Practical implications

These techniques will fundamentally support environmental and tourism strategies focused within a theoretical understanding of practical actions related to planning and environmental management, with the aim of increasing the sustainability of the municipality.

Social implications

The methodology will help to improve the living conditions of local people and visitors so that after its application they can develop their activities in concordance with the environmental plan and within set parameters.

Originality/value

This work is relevant for Mozambican municipalities specifically and to all world municipalities in general that do not have tools for environmental management. This work introduces a methodology for environmental diagnosis which allows municipalities to change their environmental situation.
Municipal environmental governance in the Peruvian Amazon
Authors: Bille Larsen Peter
Published: May 2011

Purpose

The aim of this paper is to illustrate the particularities and challenges associated with creating municipal environmental governance institutions in the Peruvian Amazon.

Design/methodology/approach

A case‐study approach based on qualitative research, document analysis and interviews is used based on field research between 2007 and 2009.

Findings

Findings reveal the limitations of municipal governance institutions to reflect local environmental concerns illustrated by the example of oil exploration. Whereas municipal institutions put in place resulted in environmental plans and policies, they failed to effectively address major sustainability concerns within their territorial boundaries. On the one hand, policy ambiguities about the meaning of “local” action reflect longstanding divides between centralised policy making and local agenda setting. On the other hand, findings point to the flexibility of local environmental processes easily neglecting core environmental problems.

Practical implications

The conclusions justify reinforcing policy efforts to strengthen the mandate and competencies of municipalities on broader environmental matters. They also reinforce the need for more locally responsive and socially inclusive environmental agenda setting.

Originality/value

The study sheds light on poorly described environmental governance aspects from an area of global significance. Amazonian affairs are emblematic for environmental conflicts related to deforestation, extractive industries and ecological complexity. Analyzing the importance of municipal processes is critical in this respect.
Globalization of Sustainable Development: Principles and Practices in Transnational Corporations
Authors: Rondinelli Dennis A.
Published: May 2011

The growing public concern that private corporations should not only earn reasonable profits and provide fair returns to shareholders, but also operate as good corporate citizens and socially responsible organizations, has spread to the largest transnational corporations (TNCs), and seems to have been taken up by companies in both richer and poorer countries. Sustainable development calls for people and organizations to meet their present needs in such a way that does not hinder future generations’ ability to do the same. Many TNCs are creating voluntary environmental programs to manage more effectively the environmental impacts of their plants, facilities, and operations. These initiatives are especially important in developing countries with hazardous environmental conditions, social conditions, and non‐existent or poorly implemented regulatory protection.
The Impact of Firm Resources on Subsidiary’s Competitiveness in Emerging Markets: An Empirical Study of Singaporean SMEs’ Performance in China
Authors: Xia Yang , Qiu Yiyun , Zafar Ahmed U.
Published: May 2011

Many FDI studies focus on the advantages that businesses can gain through internationalization and internalization. More recent research has indicated that such traditional theories or perspectives may not sufficiently explain the subsequent success or failure of a firm’s operation in a foreign country, because the advantages gained through FDIs could be greatly affected by their strategic management in the host country environment. This study focused on the issue of a firm’s resources on its subsidiary’s competitiveness in a foreign country. A survey was undertaken in China. All companies participating in the study were small and medium‐sized Singapore‐China joint ventures and Singaporean wholly owned enterprises in China. The findings indicated that the variance in a firm’s performance in a foreign country can be largely explained by the six dimensions of firm resources: (1) technological resources, (2) owner/top manager’s managerial skills and capabilities, (3) employee’s Guanxi skills, (4) employee’s professional/technical knowledge, (5) the firm’s internal relationships and, (6) the firm’s external relationships. Among these six dimensions, employees’ professional knowledge and Guanxi skills, as well as a firm’s internal and external relationships, are significant predictors of Singaporean SMEs’ success in China.
Are Canadian CEOs Compensated for International Responsibilities?
Authors: Gelinas Patrice
Published: May 2011

Relying on proprietary Canadian data, we determine a positive relationship between the level of Canadian CEO compensation and the existence of significant international components among a CEO’s array of responsibilities. Our findings are consistent with agency and human capital theoretical arguments. Results imply that executive pay premiums should be anticipated and budgeted for in the planning and implementation of international ventures.
A Moral Hazard Model of a Multinational Firm’s Decision between Foreign Direct Investment and International Subcontracting
Authors: Forte Rosa , Brandao Antonio
Published: May 2011

This paper develops a moral hazard model applied to a multinational firm’s decision between foreign direct investment and international subcontracting. We compare the results of the moral hazard model, characterised by the fact that the multinational firm cannot control the operations performed by the subcontractor firm, with the traditional model of symmetric information. We conclude that the uncertainty associated with the subcontractor firm’s behaviour, despite increasing the multinational firm’s preference to engage in foreign direct investment, does not change its optimal decision, which is to subcontract. The exception occurs when the subsidiary stands as more efficient than the subcontractor firm.
Knowledge Management Research Imperatives Governing Multinational Corporation Expansion
Authors: Gabberty James W. , Thomas Jennifer D.E.
Published: May 2011

This paper examines the depth, erudition, and rigor of contemporary research on knowledge management as a causal factor that influences the ultimate outcome of multinational corporation (MNC) expansion, bounded by the confines of information and communication technology (ICT) competences identified as behavioral, business, and technological. Through discussion highlighting the dominant knowledge management (KM) research themes within the milieu of the global firm, readers will gain definitive and practical insight into relevant topics that may be used to stimulate development of growth strategies for the firm.
Outstanding International Business Research: Nature of the Best International Business Dissertations
Authors: Aggarwal Raj , Petrovic Victor , Ryans John K. , Zong Sijing
Published: May 2011

Based on fifteen years of data on the annual Academy of International Business (AIB) best dissertation Farmer Award finalists, we find that these dissertations were done at a range of North American universities. Interestingly, dissertation topics differed from the topics covered in the three top IB journals with five‐sixths of the topics in management, organization, economics, or finance and two‐thirds set in a single country or region (U.S., Japan, North America, and Western Europe). Survey research is the most common methodology but analysis of secondary data is growing. As expected, the finalists are on average an extraordinarily prolific group.
Ownership Structure, Expatriate Policy, and Regionalization: Evidence from Taiwan’s Family Business Groups, 2000‐2002
Authors: Chung Hsi‐Mei
Published: May 2011

Based on the panel data analysis of Taiwan’s family business groups from 2000 to 2002, this research attempts to investigate the relationships among the types of ownership structure, particularistic ties, and the engagements in regional markets from a social capital perspective. The result indicates that a family business group’s use of particularistic ties is contingent on its relative centralization in decision‐making. Consequently, the family business group’s use of particularistic ties in subsidiaries significantly influences its engagements in regional markets. This study highlights the possible role of particularistic ties as a kind of firm‐specific advantage existing within family business groups when expanding internationally. Furthermore, it indicates that the indigenous particularistic ties intrinsic to Great China societies have implications for multinational companies in the context of this region.
Dual Case Study: The Influence of Cultural Dimensions on the Evolution of Two Family Chemical Companies in Italy and Taiwan
Authors: Lu Ta‐Jung , Abetti Pier A.
Published: May 2011

We compare the development over fifty years of two family chemical companies, leaders in their market niches: Zobele Chemical Industries (Italy) and Chemical Group of Sinon Corporation (Taiwan). We follow the evolution of the two companies from serving the domestic market through product and market expansion and finally to globalization. We conclude that their parallel but finally divergent evolutionary patterns are strongly influenced by the cultural dimensions of their countries and, to a lesser degree, by other environmental and structural factors. The insights provided by this dual case study may be of value to owners and managers of family companies, to outside investors, to global business scholars, and to national economic development officials.
The Cost of Doing Business Abroad in Emerging Markets and the Role of MNC Parent Companies
Authors: Chen Roger (Rongxin)
Published: May 2011

This study examines the impact of MNC parents on the cost of doing business abroad (CDBA) of their foreign subsidiaries in emerging markets. Based on a case research, we found that MNC HQs can influence the activity‐based CDBA of their foreign subsidiaries through policies on technology royalties, expatriate expenses, and through helping the export business of their subsidiaries. Theoretical implications of these findings are discussed.
International Joint Venture Configurations in Big Emerging Markets
Authors: Merchant Hemant
Published: May 2011

Empirical studies of the shareholder valuation impact of firms’ international joint venture (IJV) participation have usually emphasized firm‐specific factors, but rarely extended their analysis to location‐specific factors. This is a crucial omission because the two sets of factors are interconnected vis‐a‐vis their influence on firms’ performance. Yet, previous work has neither identified how the two sets of factors complement each other nor investigated the effect of these complementarities on the shareholder value of firms who enter into IJVs. This study attempts to fill these gaps. It develops a typology of IJVs and then performs cluster analysis on a sample of 241 equity IJVs. Results indicate eight clusters in the data, including three clusters with positive shareholder value. In deriving support for its six hypotheses, the study highlights both value‐creating and value‐neutral configurations of firm‐ and location‐specific variables.
Empirical Evidence on Trade Reform, Revealed Trade Openness, and Output Growth in Latin America. How Far Have We Come?
Authors: Barboza Gustavo A. , Trejos Sandra R.
Published: May 2011

Free trade reform promotes and consolidates businesses’ orientation to international markets. Using a sample of twenty Latin American countries, this study finds support for the hypothesis that higher revealed trade openness implies faster economic growth. However, at low output growth levels, increased revealed trade openness does not translate to faster output growth. Why more trade does not necessarily imply faster growth at all levels of revealed trade openness growth remains a conundrum. Failure to derive faster economic growth may compromise the prospects for sustainable trade reforms and thus the consolidation of new business ventures as engines for further growth.
Korean Workers’ Motivation Tools: Commitment and Incentive‐Based Motivation and Their Relative Impact on Behavioral Work Outcome
Authors: Lee Keun S. , Kulviwat Songpol
Published: May 2011

This research examines the linkage between commitment (organizational and job), motivation (intrinsic and extrinsic), and work outcomes (effort and propensity to leave) using the Korean sample. With its focus on the relative impact of loyalty‐based commitment and incentive‐based motivation on work outcome behavior, this study highlights Confucian culture and expectancy theory. Using survey data, support was found for all the hypotheses except the paths from job involvement to effort. In particular, organizational commitment was found to have the highest influence on effort and propensity to leave, presenting empirical support for the eminence of loyalty as a motivational tool in a collectivistic work culture. Managerial implications and future research are discussed.
Understanding Diverging Isomorphic Pressures on Foreign Subsidiary Managers: A Contingency Model
Authors: Kang Eugene , Li Dan
Published: May 2011

We contend that the international strategy adopted by and the international experience of top executives in parent firms, as well as the embeddedness of foreign subsidiaries in host countries, moderate the impact of institutional distance between home and host countries on the divergence of isomorphic pressures experienced by foreign subsidiary managers. We further suggest that diverging isomorphic pressures are more likely to spur foreign subsidiary managers to deinstitutionalize organizational routines from parent firms when these managers possess knowledge‐based power, the subsidiary’s performance is declining, or social controls are lacking from the parent firm. Implications for research and practice are discussed.
Influential Research and Institutions in International Business Research
Authors: Chan Kam C. , Fung Hung‐Gay , Leung Wai K.
Published: May 2011

We examine the citations from four international business (IB) journals over 2000‐2004 to show the areas, the journals, and the institutions that impact IB research. The leading works that influence IB research are primarily management journals, scholarly books, and IB journals. IB research is published in non‐IB journals, as well and this has influenced the recent research in IB journals. U.S. and non‐U.S. academic institutions and non‐academic organizations are among the top 100 institutions that impact IB research, indicating that this research is a truly global endeavor. Finally, recent IB research is influenced more by recent published research than by past research. Scholarly books have become less influential, while the economics, finance, and marketing journals show no change in the influence on IB research over time.
Strategic Competition, Valuation, Costs and Growth Potential: The Example of Global Product Design and Development
Authors: Monplaisir Leslie , Malikane Christopher , Ojah Kalu
Published: May 2011

We study the performance attributes of an international production form that is designed for success in an increasingly global marketplace‐global product design and development. We find that firms elicit higher returns from their global product development when they compete in strategic complements than when they compete in strategic substitutes. These firms are most likely to compete in strategic complements if they have higher free cash flows, but are most likely to compete in strategic substitutes if they are more dominant in their industry. Importantly, global product development reduces cost largely via variable cost reduction. Moreover, we find that global product development contributes to the firm’s growth potential when pursued in conjunction with high multinationalism, aggressive competitive strategy, and high cost saving.
Motives for Helping: Exploring Cultural Influences on Extra‐Role Behavior
Authors: Wollan Melody L. , Sully de Luque Mary F. , Grunhagen Marko
Published: May 2011

This paper suggests that motives for engaging in affiliative‐promotive “helping” extra‐role behavior is related to cross‐cultural differences. The cultural dimensions of in‐group collectivism, uncertainty avoidance, performance orientation, and humane orientation, and their differential effect on helping extra‐role behavior in a diverse workforce are examined. Theoretical implications provide guidance for future empirical research in this area, and provide managers with more realistic expectations of employee performance in the workplace.
What Causes Multinational Companies to Increase Resource Commitments During Financial Crises in Emerging Markets?
Authors: Gao Tao (Tony) , Sarraf Talin E.
Published: May 2011

This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging markets. Favorable changes in the host government policies, market demand, firm strategy, and infrastructural conditions are hypothesized to influence the MNCs’ decision to increase resource commitments during a crisis. The hypotheses are tested with data collected in a survey of 82 MNCs during the recent Argentine financial crisis (late 2002). While all the above variables are considered by the respondents as generally important reasons for increasing resource commitments during a crisis, only favorable changes in government policies significantly influence MNCs’ decisions to change the level of resource commitments during the Argentine financial crisis. The research, managerial implications, and policy‐making implications are discussed.
The Impact of Firm Resources on the Internationalization and Performance Relationship: A Study of Indian Manufacturing Firms
Authors: Pattnaik Chinmay , Elango B.
Published: May 2011

The previous decade has been characterized by emerging market firms expanding into international markets. This trend has led to scholars in the IB arena to grapple with the new phenomenon of emerging multinational enterprises (EMNEs), specifically the relationship between internationalization and performance of the EMNEs. This paper seeks to add to the literature by capturing the impact of firm resources on the internationalization‐performance relationship. Empirical analysis on a sample of 787 Indian manufacturing firms indicates that there is a non‐linear relationship between internationalization and performance. Findings also indicate that a firm’s capabilities in cost efficiency and marketing have a moderating impact on this relationship.
Country of Origin Effect on U.S. Consumers’ Brand Personality Perception of Automobiles from China and India
Authors: Fetscherin Marc , Toncar Mark
Published: May 2011

Chinese and Indian car manufacturers are entering developed markets. The question arises how they will be perceived by consumers from those countries. Using the multi‐dimensional brand personality scale, this paper provides an explorative study of the country of origin effect on U.S. consumers’ brand perception of automobiles from China and India. Our multivariate analysis of variance shows differences in terms of brand excitement, brand competence, brand sophistication, and brand ruggedness. Our results indicate that the Chinese car is perceived to be more daring, up‐to‐date, and outdoorsy than the Indian and U.S. car; more intelligent, successful, and upper‐class than the Indian car; and more charming than the U.S. car. The U.S. car is perceived as more successful than the Indian car.
An Empirical Analysis of the Impact of Corporate Transparency On Foreign Direct Investment
Authors: Seyoum Belay
Published: May 2011

This study tests for the relation between corporate transparency and foreign direct investment (FDI) using a sample of 118 countries. The study also develops a set of indicators to measure corporate transparency. The findings indicate support for the hypotheses that a) greater levels of corporate transparency are associated with higher levels of inward FDI flows, and b) corporate transparency has a greater impact on inward FDI in developing countries than developed countries.
Bank Loan Pricing in the Asia‐Pacific Region
Authors: Chotigeat Tosporn , Harjoto Maretno A. , Yi Ha‐Chin
Published: May 2011

This study examines bank practices of corporate loan pricing in the Asia‐Pacific region. We find that the all‐in‐spread for loans (mostly term loans with longer maturities) in the Asia‐Pacific region are significantly smaller than those in the US. In addition, foreign banks tend to price their loans favorably in the Asia‐Pacific region, while foreign banks in the US have a higher loan spread. This finding indicates that foreign banks foster more competitive loan pricing in the Asia‐Pacific region, while foreign banks in the US seem to experience a competitive disadvantage compared to domestic lenders.
Challenges to Modern Consumer Segmentation in a Changing World: The Need for a Second Step
Authors: Amine Lyn S. , Alexander Smith J.
Published: May 2011

We re‐evaluate modern segmentation assumptions and methods by referencing several postmodern characteristics of consumers in global markets. Drawing on contributions from sociology, political sociology, social theory, anthropology, philosophy, psychology, consumer behavior, and international marketing, we posit three research questions, discussion of which leads to the formulation of research propositions. Real‐life consumer and marketing examples are quoted as evidence of the need to go beyond reliance on modern segmentation to incorporate postmodern thinking into consumer analysis as a necessary ‘second step.’ This paper invites reflection on how marketers should adapt to new, complex, and changing consumer realities, which are summarized as multi‐dimensionality, unpredictability, inconsistency, search for meaning, and peak experiences by means of consumption.
Testing the Link Between Multinationality and the Return on Foreign Assets
Authors: Kudina Alina , Rugman Alan M. , Yip George S.
Published: May 2011

A large and robust empirical literature demonstrates that there is a strong relationship between the performance of a multinational enterprise (MNE) and its degree of multinationality. We develop a new metric to capture the return on foreign assets (ROFA), which we use as an alternative metric to return on total assets (ROTA) as a dependent variable representing performance. We find a significant S‐shaped relation between ROFA and the degree of multinationality across a large set of UK firms.
Organizational Efficiency, Firm Capabilities, and Economic Organization of MNEs
Authors: Hwang Peter , Gaur Ajai S.
Published: May 2011

We argue that multinational enterprises (MNEs) not only strive to minimize transaction costs but also attempt to maximize transaction values when interacting with local firms in foreign markets. We put forth our thesis regarding MNE governance structure, that it is contingent on the institutional environment of the host country and the characteristics of the transaction. Specifically, we suggest that MNEs’ choice of market, hierarchy or hybrid (joint ventures) form of governance, depends on the interplay between the costs and benefits of a transaction relationship. For high knowledge content products/services, MNEs choose hierarchy when the institutional environment is not well developed. As the institutional environment develops, hybrid replaces hierarchy. However, in a very strong institutional environment, hierarchy again turns out to be optimal for MNEs. For low or no knowledge content products/services, the presence of market is possible in a very advanced institutional environment.
SOX as Safeguard and Signal: The Impact of The Sarbanes‐Oxley Act of 2002 on US Corporations’ Choice to List Abroad
Authors: Sherman W. Scott , Chambers Valrie
Published: May 2011

Corporate scandals at Enron, Tyco, and MCI highlight the issue of opportunistic management behavior. The US Congress responded to these scandals by passing the Sarbanes‐Oxley Act of 2002 (SOX). SOX imposes additional management responsibilities and corporate operating costs on companies trading under SEC regulations. This paper examines three options for US corporations responding to SOX: compliance with SOX, taking a company private, or moving to a non‐ SEC‐regulated exchange, such as an international exchange. The paper then examines potential corporate governance options using Transaction Cost Economics (TCE; Williamson 1985) to develop propositions regarding which options firms may select.
The Monetary Transmission Mechanism of a Small Open Economy with Sweeping Financial Reforms: The Case of Korea
Authors: Seob Son Young , Smith William T. , Soo Pyun Chong
Published: May 2011

This study reveals how a Korean monetary transmission mechanism evolves in the tumultuous decade of the 1990s. We show that (i) contractionary monetary policy shocks have more explanatory power for the post‐crisis periods than for the pre‐crisis period; (ii) the effects on output from external shocks attributed to the oil price and the U.S. federal fund rates are mixed; (iii) there is little positive spillover effect from the U.S. to Korea through the trade channel; and (iv) there is a positive spillover effect from the international capital market channel.
Evidence of Managerial Response to the Level of Consumer Complicity, Pirate Activity, and Host Country Enforcement of Counterfeit Goods: An Exploratory Study
Authors: Chaudhry Peggy E. , Peters Jonathan R. , Zimmerman Alan
Published: May 2011

The major findings of this exploratory research are that a firm’s level of market commitment through future investments will increase in strategically important markets, regardless of high consumer complicity to purchase fake goods; that companies will employ additional anti‐counterfeiting tactics in markets with a high level of pirates and a high degree of enforcement of its intellectual property rights; and that companies employ a standardized approach of anti‐counterfeiting tactics targeted at consumers.
Temporal and Geographical Patterns of Internationalization ‐ An Exploratory Analysis
Authors: Hutzschenreuter Thomas
Published: May 2011

Internationalization is of high relevance and has been discussed intensively. However, different internationalization paths have been proposed by theoretical models and have been observed in reality. In this study, we examine the internationalization path of 52 German firms over a period of ten years using comprehensive and rich data on all new ventures established by these companies within this period. We find four distinct patterns of internationalization and propose a stage model of internationalization based on these findings. Our results show different challenges for managers depending on the stage of internationalization and render interesting starting points for further research.
Corporate Governance in the European Union: Firm Nationality and the ‘German’ Model
Authors: Rahman Manzur
Published: May 2011

While there has been some convergence in corporate governance codes and securities regulations across the European Union (EU), the remaining areas of divergence are the most contentious as they reflect differences in fundamental societal norms and values. I propose that using the multinational corporation as the referent unit of analysis yields a means for making a qualitative distinction between the two regimes. I suggest that at least for firms with EU‐wide scope, certain critical elements of the German model may be more appropriate, as the neoclassical justifications of the Anglo‐American model are less reliable in such a setting.
Transformation of Chinese State‐Owned Enterprises: Challenges and Responses
Authors: Wang Jifu , Zhao Jinghua , Ning Yixi , Yu Peng
Published: May 2011

The impact of globalization and worldwide competition has become excruciatingly noticeable in China. The purpose of this study is to examine China’s transformation of state‐owned enterprises (SOEs) to competitive, capable organizations by identifying the dominant challenges and forces for change to State‐Owned Enterprises in China (SOE), the nature of SOE responses to those forces, and the degree of SOE success in making the necessary transformations to compete in a global business environment.
Aligning the Interests of Subsidiaries and Headquarters in Multinational Corporations: Empirical Evidence
Authors: Olcay Costello Ayse , Costello Thomas G.
Published: May 2011

To better understand the relationship between the headquarters and subsidiaries of multinational corporations, we introduce and test a theoretical framework that builds on and extends the positive agency theoretic corporate governance literature. Results indicate that there are three types of subsidiary bundles of corporate governance mechanisms that are used by multinational corporations. In addition, the following factors can help predict what type of subsidiary bundle a multinational corporation will use to align the interests of its headquarters with a particular subsidiary: the multinational corporation’s international strategy, its subsidiary’s importance, environmental uncertainty faced by its subsidiary, and its subsidiary’s age.
How Regional is the Supply Chain in the Enlarged EU?
Authors: Curran Louise , Zignago Soledad
Published: May 2011

This paper explores the regionalisation of the European Union’s supply chains and the impact of enlargement by looking at trends in trade in intermediate products between 1995‐2007. The findings show that enlargement has not significantly impacted overall levels of regionalization although it has led to quite major changes in the division of labor within the EU. In addition, the impacts have been very varied depending on the sector involved. There has been a greater consolidation of the EU supply chain in medium‐tech and up‐market goods while in low‐market and high‐tech goods, market share has been ceded to non‐EU sources.
A Note on the Regional Triad Model and The Soft Drink Industry
Authors: Gardner John C. , McGowan Carl B.
Published: May 2011

The objective of this paper is to analyze the five largest companies in the soft drink industry in the context of the regional triad theory as presented in Rugman and Brain (2003) and later in Rugman and Verbeke (2004b, 2007). We find that of the five largest companies in the soft drink industry, only Coca‐Cola meets the definition of a global company as defined by regional triad theory. National Beverage is a strictly domestic company and Cadbury, Cott, and Pepsi are bi‐regional MNEs with sales in the NAFTA and European triad regions. Coca‐Cola reports sales in five major geographic regions, which fits the criteria of a global firm
A Commentary on Adam Smith and International Business
Authors: Forsgren Mats , Yamin Mo
Published: May 2011

A close reading of Adam Smith’s works, “An Inquiry into the Nature and Causes of Wealth of Nations” and “The Theory of Moral Sentiments,” indicates that he would not support the advocacy of free markets wholeheartedly. His view on market systems, although “free,” implies strong institutions and regulations. Adam Smith would have been particularly concerned with the fact that the large multinationals are as much political actors as they are economic actors. He would have argued that there may be ‘moral‘ limits to globalization. In his view, the general rules of morality are (in modern parlance) ‘socially embedded.’ Thus, sympathy and fellow‐feeling mostly operate at ‘close quarters’ and, in particular, they may not be effective at a transnational level.
Keeping the Eclectic Paradigm Simple
Authors: Narula Rajneesh
Published: May 2011

The eclectic paradigm as developed by Dunning evolved in response to the changing IB milieu. I argue that this continual expansion threatens to make the paradigm tautological, without an honest “gatekeeper.” Continual expansion to address new lacunae begins to have decreasing returns, either because the gatekeeper cannot expect to have the specialized knowledge, or because the number of extensions makes the final product unwieldy. I propose a return to a basic eclectic paradigm, which I refer to as “EP‐lite,” that can then be complemented by other frameworks and theories as needed. In a similar vein, the growing number of sub‐categories of ownership advantages does not in itself provide greater clarity. Besides, the “correct” definition of what constitute O advantages is relative to the purpose for which it is being used.
Sources of Technology and the Strategic Roles of MNE Subsidiaries in China
Authors: Zhang Si , Pearce Robert
Published: May 2011

The paper investigates the importance of six sources of technology as used by MNE subsidiaries operating in China. These are determined by the strategic roles of the subsidiaries. This facilitates analysis of the role of technology both in the competitive development of the subsidiaries and Chinese industrialization. Though these subsidiaries build their bridgeheads in China (mainly to supply the Chinese market) around established, standardized parent‐group technology, there is a tendency to broaden technological scope (mostly locally accessed or generated), especially to generate the capability to develop new goods that target the Chinese market.
Value Creation and Home Region Internationalization of U.S. MNEs
Authors: Hoon Oh Chang
Published: May 2011

This study analyzes the relationship between multinationality and performance of 1,247 US multinational enterprises (MNEs) over the period of 1995‐2004 by utilizing Tobin’s q theory. Internationalization is a double‐edged sword: foreign intangible assets create a firm’s value, while, at the same time, internationalization itself degrades the value by raising transaction costs and uncertainty in foreign operations. The empirical results show that US MNEs cannot increase their performance merely by developing their intangible assets in the rest of the home region (Canada and Mexico). Conversely, US MNEs rarely suffer from a liability of foreignness in their home region.
On The Mode of International Expansion: The Role of Agency Costs
Authors: Mirus Rolf , Yeung Bernard
Published: May 2011

We examine the mode of international expansion as an equilibrium governance contract between home country and host country factor owner. The focus is on agency costs, a form of transactions costs. Two phenomena are shown to be related to the agency costs imposed by factor owners: (i) the choice of different modes of international expansion by one firm in different locations, and (ii) the simultaneous occurrence of several forms of foreign involvement in the same location. We attempt to characterize the dynamic relationship between the mode of an offshore operation and changes in factor market conditions that affect agency costs.
A Commentary on Risk Reduction by Geographic Diversification
Authors: Eckert Stefan , Trautnitz Georg
Published: May 2011

The relationship between multinationality and value is still one of the most fundamental questions in IB research. Gande, Schenzler, and Senbet (2009) claim to have found empirical evidence for the incomplete capital markets theory (ICMT), which stipulates that investors value corporate multinationality due to its risk‐reducing effect. We show here that their findings do not support the hypothesis that investors value geographical diversification at the firm level because of its risk reducing effect. Further, a review of extant research shows that empirical results concerning the valuation impact of the risk‐reducing effect of geographical diversification at the firm level have to be regarded with caution due to conceptual and methodological inconsistencies. Consequently, this paper proposes several methodological refinements.
Brokers' incentives and conflicts of interest in the control of opportunism
Authors: Olalekan Yusuf Tajudeen
Published: May 2011

Purpose

The purpose of this paper is to examine brokers' financial incentives in the Nigerian insurance market and how they balance conflict of interest which their role engenders. The paper aims to assess how these affect the control of opportunism of customers in the Nigerian insurance market.

Design/methodology/approach

The study involved the use of semi‐structured interviews of insurance broking executives and documentary analyses of how incentives aid the control of opportunism in the insurance market.

Findings

Findings suggest that the Nigerian insurance market operates on highly tariff incentive system which might be hampering insurance brokers' role in bridging information asymmetries to control opportunism in the market. Conflicts of interest are also real in the insurance market.

Practical implications

Findings are relevant for practitioners and regulators in addressing the restrictive remuneration system which calls for liberalisation to encourage the control of opportunism in the insurance market.

Originality/value

The study underscores how financial incentives might be utilised to balance conflict of interest which insurance intermediation engenders.
Predicting Tunisian mutual fund performance using dynamic panel data model
Authors: Ben Belgacem Samira , Hellara Slaheddine
Published: May 2011

Purpose

The purpose of this paper is to examine the ability of well known fund characteristics such as the recent past performance, fund size, management fees, fund age, net asset value and fund growth so as to explain Tunisian equity mutual fund performance.

Design/methodology/approach

The sample was split according to investment objectives, and the advanced dynamic panel data approach was used over the period 1999‐2006.

Findings

The authors find that past performance and fund size have a positive and significant influence on future performance for all fund categories, irrespective of what performance measure was used. This may indicate the existence of scale economies in the Tunisian equity mutual fund industry. The author also find that the other fund characteristics play an important role in explaining performance, but their impact varies among the fund categories. In all, regression results support the dynamic links between fund characteristics and future performance.

Research limitations/implications

The findings do not take into account the behaviour of fund managers and their ability to extend the investment opportunities set. It seems that there are more complex factors related to the strategic behaviour of the manager and driving differences in performance across funds than previous studies have indicated.

Practical implications

The authors confirm the empirical evidence that historical performance contains some information about future performance and such information may be important to mutual fund investors. It was also found that fund size is positively related to future performance of small fund category as well as of large fund category. This may indicate the existence of scale economies in the Tunisian equity mutual fund industry. In addition, the influence of the other control variables varies among the fund categories, but often is the same as in earlier studies.

Social implications

The paper provides information to foreign investors for investing in Tunisian capital market.

Originality/value

In this regard, the study of literature revealed that the explanation of performance, based on quantitative factors, is often limited to a static approach that involves making estimates resting on multiple regression, regression in cross section and principal component analysis for short periods. However, several empirical studies highlight the impact of past performance on future performance. It seemed essential to enrich the analysis by using a dynamic approach.