ISSN 1556-6757







Volume 1, Issue 1, 2007


Using Intellectual Capital and Organizational Capability to Enhance Strategic Implementation for Pharmaceutical Firms
  Sharon Yvette Boyce

Sustaining a competitive advantage is imperative for firms that are in dynamic industries, which require effective strategic implementation to manage such changing situations.  Many firms have found that implementation is very difficult to execute.  The major components of strategic implementation will be examined and analyzed.  The contention and rationale by scholars that the implementation process is so difficult to attain will be assessed.  Finally, there will be recommendations as to how a pharmaceutical company can use intellectual capital to build organizational capability as a competitive advantage to enhance its implementation strategy over the long-term.
Full Article

Intertemporal Consumption Smoothing and Capital Mobility: Evidence from Malaysia
Soo Khoon Goh



Using a simple consumption smoothing model and cointegration tests with a structural break, this paper has re-examined the impact of changes in capital mobility and the current account's capacity to predict external performance in Malaysia. The model views the current account as a buffer through which private agents can smooth consumption over time in response to the temporary disturbances to output, investment, and government expenditure. The findings are as follows. Firstly, a structural break is empirically identified in the relationship between consumption and national cash flow in the year 1996, that is a year prior to the Asian Currency Crisis. Secondly, the most stringent restrictions of the present-value model are strongly rejected over the sample period.However informal tests (via Granger causality, correlation, and variance ratio tests) suggest that the consumption smoothing model is sufficient to predict the dynamic behavior of the Malaysian current account. Lastly, the results also suggest that Malaysia’s current account imbalance was sustainable prior to the 1997 crisis. Full Article

An Empirical Study of Customer Relationship Management Implementation in Taiwan’s Machine Industry
  Yi-Chan Chung, Shiaw-Wen Tien, Chih-Hung Tsai, Lin-Lin Tang


The competition between enterprises is becoming more intense in the 21st century. Economy is depressed, the industrial structure is changing, and unemployment is at a record rate in Taiwan. Under these competitive pressures, it is important to impress and improve the relationship with the customer. Because of the power of information and telecommunications technologies, business can track their customers and determine what they really want and how they actually use the product. Analyzing the information returned from customers and products, business can provide active and accurate service to the right customer through the right channel at the

right time and increase customer satisfaction. This paper refers the Customer Service in Customer Relationship Management (CRM) and Information Technology (IT) concepts to analyze and understand the customers’ needs and realize the competencies of support groups within the enterprise. The customers can therefore be better served and the efficiency and effectiveness of internal company support groups can be improved. The knowledge and experience not accumulated can be solved and the cost of manpower and services reduced. Full Article


Verbal Practice and Processes of Topics in Organizational Behavior and Theory: The Case of a Restaurant’s Staff Meeting  Hamid Akbari

An exploratory interpretative study was conducted to identify the actual verbal processes associated with topics in organizational behavior and theory. A tape of an actual staff meeting of a restaurant was transcribed. The transcription was discourse analyzed by two researchers. The results indicated that the meeting’s talk included the topics and processes of structuring, culture creating, leading, exerting power, and controlling. These topics and processes are described, and the implications of this study for management practice and education are discussed.
Full Article


Confronting Rubinomics and the Clinton Administration Economic Boom
Michael Meeropol  and Carlos F. Liard-Muriente


The "crowding-out" debate is an important controversy in macroeconomics. More recently, the crowding-out debate was put in the forefront as an aftermath of the Clinton Administration economic boom legacy, in particular by the former Treasury Secretary Robert Rubin. Rubinomics or the argument that "fiscal discipline" will bring private investment to a growth path as a result of a decrease in real interest rates is appealing. However, we conclude based on data from the experience of the US economy during this period of extraordinary "fiscal discipline" that the evidence does not validate the arguments of Rubinomics.  Full Article

The Measurement and Recognition of Intangible Assets 
Philip Siegel and Carl Borgia

In today’s economy value is being created by intangible (intellectual) capital. The Federal Reserve Bank of Philadelphia estimates that in the year 2000 more than $1 trillion was invested in intangibles. Some of these intangibles were not being recognized on the Statement of Position.  This paper reviews the existing and recently promulgated accounting standards relating to intangibles.  Presently, Generally Accepted Accounting Principles allow for inconsistencies in the measurement and reporting of intangibles.  The objective of this review is to provide evidence and alternatives to help improve the measurement and recognition of intangible capital.  This will lead to the reporting of quality earnings that reflect the qualities of relevance and reliability. Full Article


Towards a Model Community Indicator Program: Drawing experience from the construction
of the San Diego - Tijuana CIP

John M. Blair, Celeste Murphy Greene

A considerable number of city-based indicator programs now exists in the United States. They use suites of indicators in community indicator programs (CIPs) to monitor economic and environmental trends and social well-being. CIP’s are based on the philosophy that good management of our cities requires accurate and regular feedback. The construction of a CIP for the San Diego-Tijuana Metropolitan Area (SDTMA) is justified by a plethora of environmental and social problems along the US-Mexico international border. Two of the chief outcomes of our research on the SDTMA are first, the process objectives that must be pursued if citizen support is to be gained for successful CIP operation. The researchers have proposed a model CIP participation system. The second research outcome concerns the CIP indicators. The vast majority of measures in CIPs are simple input measures and the researchers have taken a number of examples and shown how they can be made more informative. Our work has also enabled us to draw some provisional principles about indicator enhancement generally. 
Full Article


A Geo-Spatial Macro-Economic Analysis of Climate Change in Latin America
S. Niggol Seo


This paper examines spatial distributions of geographical and macroeconomic variables to study climate sensitivity of Latin America.  This study tries to capture economy wide effects in contrast to the partial equilibrium analyses based on a specific sector. It also provides an analysis at a larger scale appropriate for the climate change research. In addition, we also examine non-market sector effects such as ecosystem shifts, human and animal settlement changes, and human health effects. Our results indicate that economic activities as well as non-market factors such as human settlements and animal density are not particularly sensitive to different climates. The analysis indicates that humans as well as animals have adjusted well to different climates. Our results show that geographical adversities such as high mountains, inland without access to the oceans, very steep locations have the greatest impacts on the lives of the humans and animals. Full Article


Capital Controls: Theory and Practice
Carlos F. Liard-Muriente


From one perspective, capital controls limit the ability of international financiers and multinationals to curtail labor.  However, from the Neoclassical perspective, capital controls are just bad policies. They remove the discipline of the international market, which rewards countries that pursue pro-growth policies and penalizes those that do not.  Nevertheless, history shows that governments use controls regularly.  This paper presents both views, some historical facts regarding capital controls, and some theoretical constructions. Full Article


The (Un)beatable Incumbent
Bryan C. McCannon

In Anthony Downs' work An Economic Theory of Democracy (1957) conditions are outlined under which a challenger always beats an incumbent by forming a coalition of minority groups. I present a formalization of this result and show that it holds in a rather general environment. I then consider two modifications: eliminating the leader-follower selection of platforms and restricting the set of platforms that can feasibly be chosen. Without the leader-follower requirement the incumbent wins with a high probability. If the set of feasible platforms is restricted the incumbent always wins the election. Thus, conditions are laid out where the incumbent is beatable and where the incumbent is unbeatable. Full Article


What Determines Distribution FDI?
Kara T. Boatman


This paper examines the importance of MNE distribution subsidiaries to overall MNE activity and tests an agency theory of distribution FDI, in which a firm seeking to sell its product in a new foreign market faces the choice of investing in its own sales operation or contracting with a local sales agent.  This choice is first estimated as a function of a number of macroeconomic variables.  Results suggest that US MNEs are more likely to opt for distribution FDI the larger the foreign market and the greater the degree of economic freedom in the host country. Next, a supply-side variable is introduced, based on the hypothesis that cross-industry differences in sales effort may explain some of the industry variation in distribution FDI.  Results of a negative binomial regression analysis suggest that US MNEs operating in sectors with more complex selling processes are more likely to establish foreign distribution affiliates. Full Article


Greening the Business Economics Curriculum: A Paradigm for Environmental Stewardship in the 21st Century   Asayehgn Desta


Economic growth depends upon the wealth of goods and services that natural resources provide. Yet, over the years, as corporations pursue hefty returns on their investment, they have been depleting the natural resources so vital for economic development. After the Rio Earth Summit of 1992, however, corporations that once viewed environmentalism as a threat to their survival all of a sudden realized sustainability as a means of gaining a competitive edge; it reduced costs and stimulated greater innovation. When the program of action for the Earth Summit was reviewed in 2002 at the World Summit on Sustainable Development (WSSD) in Johannesburg, South Africa, it was revealed that there was a wide gap between the rhetoric of 1992 and the reality observed in 2002. Full Article

Regional Economic Growth and Income Distribution in California

Jeffrey G. Woods

This paper uses the Solow and Kuznets models to help explain the pattern and differences in economic growth and income distribution in four major regions within California. Using county-level data from 1969 to 1999, I estimated that statewide real per-capita personal income has diverged (become more unequal). However, after controlling for regional affects, statewide income divergence becomes statistically insignificant. On a continuum, the data suggest that on average, the Central, Northern, Southern and Coastal regions have the least to most well endowed composition of resources. The corresponding spatial division of labor across California’s regions results in income inequality. Regional development policies should be diversified and coordinated to insure long-term success and not be overly reliant on one best approach. Policies are more likely to fail if they deviate from the local context. Regional economic development depends more on a partnership of local policy-makers, industry, labor unions and community leaders who can work together towards common goals. Full Article


The Effect of United States Fiscal Policies on California's Poverty Levels

Steven J. Balassi

Poverty and income inequality are problems in California, as well as the United States of America. Government spending, called fiscal policy, should be used to help alleviate these problems. Poverty and income inequality are examined to see if California is fairing better than the U.S. as a whole. This study finds California is not doing as well as the U.S. in the area of income inequality. By comparing California’s poverty to the United States levels, this study also finds that U.S. fiscal policy accounts for 69% of California’s poverty. This shows the impact which U.S. fiscal policies have on California. Full Article


Men, Women, and Perceptions of Work Environments, Organizational Commitment, and Turnover Intentions  Susan M. Stewart, Mark N. Bing, Melissa L. Gruys, Michael C. Helford


As the participation rate of women in the workforce has increased, there has been an emphasis in organizational research on gender issues. One overlooked area pertains to how men and women perceive their work environments and how different climate dimensions affect dedication to organizations. This study utilized 553 (285 women, 268 men) employees to investigate gender differences in (1) affective and continuance commitment, (2) turnover intentions, (3) psychological climate perceptions (i.e., autonomy, cohesion, trust, pressure, support, recognition, fairness, innovation), as well as (4) the moderating influence of gender on the relationship between psychological climate and affective commitment, continuance commitment, and turnover intentions. We controlled for critical covariates of gender, including education, age, job tenure, job level, and organizational membership. Results show that female employees had higher levels of continuance commitment than men. There were no gender differences found for the climate dimensions when examining direct relationships. However, the task-oriented climate dimension of organizational support was a significant predictor of affective commitment and turnover intentions for men, whereas the relationship-oriented climate dimension of workplace recognition was a significant predictor of affective commitment and turnover intentions for women. Limitations, future research ideas, and the practical implications of these findings are provided. Full Article


Antecedents of Marital Happiness and Career Satisfaction: An Empirical Study of Dual-Career Managers    Sharon Jeffcoat Bartley, William Judge, Sharon Judg


Work-family balance is seen as critical to life satisfaction. We study two elements of work-family balance—marital happiness and career satisfaction—for managers within dual-career families in the US, using predictive variables of negotiation skills and assistance provided from outside the couple. After controlling for age, gender, and number of children, negotiation skills were strongly predictive of marital happiness and career satisfaction. Assistance was positively related to career satisfaction, but largely unrelated to marital happiness. Based on these results, we offer practical ideas to assist managers successfully integrate work and family roles, and provide new insights for researchers to better understand work-family balance. Full Article

Dysfunctional Management Education and Declining Global Competitiveness of the United States Economy  Yoshi Tsurumi

The Bush Administration has been aggravating the jobless GDP growth and  the widening income and social gaps between the top 3% of income brackets and the rest.  These problems are damaging the global competitiveness of the U.S. economy.  They have been shaped by flawed theories of business, economics, and law in the self-centered culture of market fundamentalism.  It produces business and public services mindset that embraces the robber baron culture and Social Darwinism of market and Christian fundamentalism.  It is destroying the manufacturing culture that had produced the “golden age” of the post-World War II era.  Fundamental remedies require alternative management theories and practices.  Such alternative business models can be gleaned from the comparisons of Detroit’s demises and the rising competitiveness of Toyota and Honda transplant firms in the U.S. Full Article


The Effects of Involvement on a Website: A Case Study of a Service Provider
Gary Kaskowitz

This research looks at whether a local, service-based professional can successfully use the internet to recruit clients and increase the purchase intent of prospects. In particular, this study looked at whether an interactive personality or knowledge assessment tool would increase desire for sales information about a service more than a free information product would. In addition, the purchase intent was measured for these respondents. It was found that an interactive assessment created a higher proportion of prospects registering for an opt-in marketing campaign than did the free information product. It was also found that respondents who participated in an interactive survey expressed higher purchase intent and perceived pricing than did respondents who received a free e-book. These results suggest that interactive assessments may be a meaningful alternative for on-line marketers looking to increase opt-in and purchase intent. Full Article


Determining more successful candidates for Far-East projects: Case study of South Korea and Chin   Joo Y. Jung and Sibin Wu


As the business world is increasingly becoming global in scope, more and more firms are entering international project environments. When a western company is providing goods or services to an eastern company, its managers would soon observe different management styles and motivations from their counterparts. While most western management elements coexist in the East, some elements are practiced with different values and motivations. Are there more critical management elements in the East? Are there more successful western managerial styles in the East? Based on management and project management theories, we first model what makes up the international project management. Based on interviews with executives who have worked on various large scale supplier contracts in the East, we argue why certain personal and managerial styles are valued differently using national culture theories. The result suggests that uncertainty avoidance, power distance and long-term orientation dimensions of culture have larger influences towards the Far East project management. More interestingly, soft management elements seem to matter more than hard elements in this unique project environment. Full Article


How to Stay Out of the Doghouse: How to Handle Involuntary Terminations Correctly
Laura L. Sullivan, Anthony F. Sullivan, Charles R. B. Stowe


One of the least pleasant aspects of being in business or in a management position is the chore of terminating an employee.  For the employee, the experience may be comparable to a death in the family or to a divorce in terms of stress.  For the employer, the termination of an employee is fraught with potential liability and is an event for which there is little training offered in most business schools.  However, termination of employees due to economic setbacks, poor performance or worse employee impropriety or bad behavior is a reality that managers must be aware of.  This paper surveys the legal landscape of employee termination to provide present and future managers with an understanding of how to minimize their legal liability. Full Article

An evaluation of the nature and purpose of psychological contact: Recommendations for appropriate HR Practices to ensure a healthy psychological contract is developed and maintained      Vlasios Sarantinos


The psychological contract is a well-know concept amongst researchers seeking to analyze

changes and management practices in the workplace. This paper examines the main theoretical

underpinnings of the concept, attempting to establish its usefulness as a tool for scrutiny of the

employment relationship. There is also attention on the linkage of the psychological contract with

organizational practices and the uptake it has by HR managers. In the end we propose future

directions for consideration. Full Article


Conceptualizing an Improved Public Relations Strategy: A Case for Stakeholder Relationship Marketing in Division I-A Intercollegiate Athletics.
Mick Jackowski

A conceptual exploration into Division I-A intercollegiate athletics indicated that its goals are to: (a) provide sport-related opportunities in support of education, (b) generate revenue, and (c) heighten university prestige.  Toward the achievement of these goals, it appeared that the most common models of public relations within these athletic departments used a combination of public information and press agentry.  Utilizing the competing values perspective of organizational effectiveness and the organizational life cycle, the author proposes that the role of public relations in Division I-A athletics is changing and could be utilized to greater effect by these departments.  Based on a rationalization of its current stage in the organizational life cycle, incongruity could exist between Division I-A athletics and its most prevalent use of public relations.  Examples are used to illustrate these points.  The analysis concludes that public relations in these organizations could be more effective if it becomes more integral in organizational policy-making and utilizes the two-way symmetrical communication model.

Full Article


Pygmalion in sales: The influence of supervisor expectancies on salesperson’s self-expectations and work evaluations.  M. Chowdhury

In order to assess the relationships between supervisors’ expectations and behaviors, and salespersons’ self-perceptions and work evaluations, survey data were collected from 174 sales employees and their supervisors in three retail companies. All hypotheses were tested using Pearson correlations and partial correlations, controlling for the background variables of gender, marital status, ethnicity, length of employment, and years of sales experience.  The results indicate that hypotheses 1 through 3 were supported but hypotheses 4 through 6 were partially supported. They were supported for supervisors’ positive achievement motivation behavior but were not supported for supervisors’ authoritarianism. Using multiple regressions as a basis for causal paths, a model was developed that examined the influence of background variables, supervisors’ expectations and motivational behaviors, authoritarianism, employee self-expectations on performance evaluations.  The model explained 64% of the variance in performance evaluations.  The findings indicate that to the extent supervisors engaged in positive motivational behaviors and expected greater performance from their salespersons, employee self-expectations were increased, which influenced supervisors’ performance rating independently of the influence of other factors, such as the direct and indirect effects of supervisors’ expectations and supervisors’ authoritarianism.  The data suggest a significant effect that accounted for about 7% of the variance in employee work ratings.
Full Article


Different Skill-Set Views: A Four-Year Study of Marketing Students, Practitioners and Educators
James W. Bovinet


Marketing educators realize business schools need to maintain a level of practitioner relevance in order to attract students to their major.  In other words, the skills and competencies learned by marketing majors need to match the skills and competencies desired by industry.  This exploratory research seeks to compare skill-set perceptions between students, marketing educators, and marketing practitioners. Full Article


Organizational Cultures: Use Nanotechnology Communication Format to Achieve Goals
Ferdinand O. Fiofori


The future deliverance of fast, effective organizational communication for goal achievement also lies in the organization’s ability to employ nanotechnology.  To understand the integrated patterns of human behavior which include thought, speech, action and artifacts, with regard to intercultural and organizational cultural communication for decision making, depend on the capacity of the objective usage of smaller, faster, lighter, cleaner, leaner, user-friendly, cost-effective technology as portals or channels to convey our messages that correspond to the rise in the economy which will operate according to its own rules.  This paper’s theoretical perspective suggests the need for organizations to look at the Return on Investment (ROI) for businesses, shareholders, stakeholders, and also assess their Cost Benefit Analysis (CBA) before using the inevitable process of nanotechnology.  As businesses are finding more and more differential segments, micro-markets and targets for their products because of the rising variety of life-styles, nanotechnology communication formats become imperative for easy accessibility to clients and markets. This article’s discussion of the role of business communication in the creation, Maintenance, and performance of business, shows the need and employment of business communication in the field of knowledge and technology transfer and diffusion, as well as commercialization in the diverse communication disciplines including the usage of nanotechnology communication portal format.  As business communication becomes important for everyone in our sophisticated communication age, we also observe how information travels with lightening speed from one part of the globe to another as a result of technological developments such as the internet and blogs.  This article thus helps to advocate the use of nanotechnology to help with strategies for program development to stay a few steps ahead of their challenges and competition. Full Article


Informativeness of Accounting Information to Shareholders in Egypt: Perspectives from the Most Actively Trading Firms  Mohamed Hassan Abdel-Azim,Tarek Ibrahim


This study examines the informativeness of accounting information to three classes of shareholder value; high, medium and low. The results indicate that shareholder value adjusts positively a target level according to the five categories of financial ratios. This shows a high degree of informativeness of accounting information to shareholders in Egypt. In general, the results show that shareholders in the three classes are quite affected by the firms’ assets efficiency and profitability. In addition, shareholders do not appreciate liquidity and cost elements. Shareholders in the low class in particular do not appreciate the benefits of costless financing and prefer short-term debt over long-term debt financing. Full Article