2012 Global Business & International Management Winter Conference, Orlando, Florida, U.S.A.,
January 15 – January 17, 2012

 
     
  ▎AUTHORS AND ABSTRACTS  
 
Intergroup Conflict within a South African Mining Company
 

Prof Jan Visagie, Director, School of Human Resource Sciences  
Prof Werner Havenga, Associate Professor, School of Human Resource Sciences, North-West University, South-Africa

 

ABSTRACT

 
 
The uncertainty that accompanies organizational change heightens prospects for intra-organizational conflict. Notwithstanding this, the knowledge base on the sources (or causes) of organizational conflict is underdeveloped – largely as a result of a low incidence of empirical research, and in particular in South Africa. The current study explored the perceived sources of intergroup conflict in a South African mining company. The aim of this research is to investigate intergroup conflict and to look into how intergroup conflict influences employment relations throughout all levels of the organisation. From a probability population of 1000 in the twelve departments a random sample of 200 employees were chosen to participate in the research. This number represents 20% of the total population. Intergroup conflict was analysed and evaluated. Conclusions were drawn and recommendations made on the occurrence of intergroup conflict based on the findings of the literature and empirical study. Data frequencies, correlations and a correlation analysis were performed through the SPSS programme.
Keywords: Conflict management; Group dynamics; Employment relations, Intergroup relations; Employment relations wellness.
 
 
 
 

Growing Jobs and Getting Returns: Impact Investing Through Entrepreneurs

 

Dr. Joel Shulman, Associate Professor of Entrepreneurship, Babson College, USA
Dr. Bradley George, Assistant Professor of Entrepreneurship, Babson College, USA

 

ABSTRACT

 

We analyze the performance of publicly-traded, entrepreneur-managed companies in the United States using monthly stock returns over the time period January 2006 through November, 2011. The portfolio of 109 firms that fit this category (minimum market capitalization of USD 200 million) generates a compound annual return of approximately 14 percent for the time period. This return significantly outpaces the annual returns for benchmarks such as the Russell 2000, Russell 3000 and Standard and Poor’s 500 Price Index. Moreover, the US entrepreneur-managed companies provide considerably stronger job growth compared to non-entrepreneur US publicly-traded companies. We surmise that US entrepreneurial companies may be a rare breed of organizations that contribute both job growth and shareholder returns.
Keywords: Entrepreneur, Family Control, Founder, Impact Investing

 
 
 
 

A Theoretical Comparison of Organizational and Self-Initiating Expatriates: Personality Traits as Moderators of International Experience Success and Stress Management Strategies

 

Mary Forseth Whitman, DBA, Capella University, USA
Adrienne A. Isakovic, PhD, Khalifa University of Science, Technology and Research, UAE

 

ABSTRACT

 

Research conducted on international assignments has primarily focused on the traditional or organizational expatriate (OE): those sent on assignment by the employer. While this research has provided significant insight into this population, continued research is needed on the subpopulation of the self-initiating expatriate (SIE). There has been comparatively little research to date on the SIEs despite this group’s growing prominence in the global workforce. There has also been little exploration and comparison of the intrinsic factors between these two groups. Recent research (Reynolds, 2010) has shown that there are differences in factors which can contribute to OE and SIE adjustment. It is therefore rational to theorize that personality traits and stress management/coping strategies would also differ between these two groups. This theoretical article builds on prior research on personality traits and stress management/coping strategies of expatriates and offers two models for future research.

 
 
 
 

Local government expenditures in China: Is there a performance effect?

 

Yi-Chung Hsu, National Taichung Institute of Technology, Department of Public Finance and Taxation, Taichung, Taiwan
Shan-Ju Ho, Master of Public Administration, California State University, San Bernardino, USA

 

ABSTRACT

 

This paper employs the data envelopment analysis method to evaluate the performance of local government expenditure and to demonstrate how productivity has changed over time for the 31 selected provinces and municipalities in China. Our results show that the Northeast and Northwest regions have lower efficiency scores. The East area is the region found to have the highest average score of 0.945. The patterns of changes in efficiency for the provinces and municipalities are further analyzed using the Malmquist productivity index approach. When the six regions are compared, the East region has a higher productivity than the others. Finally, the panel Tobit model results suggest that foreign direct investment has a negative effect on efficiency scores, while the number of employed persons, health institutions, education terms, and coast mostly have positive effects on them. Ultimately, we also provide the related implications.

Keywords: Local government expenditure, Data envelopment analysis, Efficiency, Productivity, China

 
 
 
 

The General Theory of Entrepreneurship

 

Dr. Gerald Gunderson, American Business and Economic Enterprise,Trinity College, Hartford, USA

 

ABSTRACT

 

There has been no shortage of notions as to what prompts entrepreneurship. They have included individuals who mobilize capital, exercise assertive personalities, and those willing to assume large amounts of risk. Some theories emphasize particular personal experiences such as being the first child or having a father who owned his own business. Even the best known theories, such as Schumpeter’s creative destruction or Kirzner’ alertness, assume forces that include only part of the influences that shape entrepreneurial choices. Thus we turn to the best comprehensive model, that of modern economic theory. It posits that people are resourceful, evaluative, and maximize, that is, make of the most of their circumstances all the while seeking to expand them. It allows both entrepreneurs and consumers to pursue objectives besides money and suggests the potential domain for human improvisation and discovery is huge. It allows for the incorporation of multiple influences as well as trade-offs among influences. Our first trials with this model yield better predictive results for the relative amount of entrepreneurship among economies at a given time and among nations through history. It also breaks ground in scholarship by explaining the surprisingly regular pattern of development that growth sectors follow.

 
 
 
 

The prohibition of the incentive supports distorting competition in the European Union

 

Dr. Hasan Bulent Kantarci, Kocaeli University, Economics and Administrative Sciences Faculty, Kocaeli, TURKEY
Res.Asst. Halil Kete, Kirklareli University, Economics and Administrative Sciences Faculty, Kirklareli, TURKEY

 

ABSTRACT

 

In this article are discussed what consist of the Government Promotions in the European Union, which prohibitions they involve, the exceptional applications related to those prohibitions and the competition policy of the European Union. The issue of the prohibition for state aids in EU are of great essence. The basic reason behind these restrictions bears the necessity of common competition policy. Indeed, if these state aids do not have a control system, they might come out in favour of the corporations in a country while being disadvantegeous for those having the same producing area in other countries. Another result might appear as attracting the investments towards that country in an unequal way through the provided aids and incentives. To prevent this kind of adverse events, the treaty of the European Union published the items prohibiting the uncompetitive supports. But these bans are not for general due to the fact that forbidding the state aids for good is not possible in free market. Instead, while a number of uncompetitive supports gets banned, regional aids or unemployment assistances get free.

 
     
 
 
 

ECONOMIC INDICATORS AND THE PERFORMANCE OF MICROFINANCING INSTITUTIONS

 

Dr. Gemunu Nanayakkara, Lecturer in Management Accounting, Department of Accounting, Finance & Economics, Griffith Business School, Griffith University, Australia

 

ABSTRACT

 

Microfinancing has proven to be an effective way of reducing poverty over the last 30 years after it was pioneered by Professor Muhammad Yunus in 1976 when he set up the Grameen Bank (GB) in Bangladesh. The phenomenal success of the Grameen Bank by offering financial services to the poor without any collateral sparked a growth of microfinancing institutions in the developing countries during the last three decades. Yunus was awarded the Nobel Prize in 2007 for his contribution. At the moment it is estimated that there are over 3000 microfinancing institutions (MFIs)around the world serving over 130 million poor people. The performance of a MFI depend on a number of factors both within and outside its control. An understanding of factors affecting the performance of MFIs is important considering the hundreds of millions of dollars that are injected into the MFIs by donor agencies and governments. Using data collected from 234 MFIs around the world, this paper examines the effect on the performance of MFIs made by three external economic factors that are completely beyond their control; literacy of the borrowers, economic growth and the population density.
Keywords: Microfinancing, Literacy, Economic Growth, Population Density, Performance

 
 
 
 

The Auditor’s Responsibility to Detect Fraud

 

Dr. Mohamed S. M. Salem, Accounting, Finance and Economics Department, University of Sharjah, United Arab Emirates (UAE)

 

ABSTRACT

 

The auditor‘s responsibility to detect fraud is a very important part of his/her job because of the use of advanced and complex computer systems. The growing concern over fraud leads to a false perception by the financial statement users of the auditor’s role as extending to the detection of all kinds of fraud. This paper is concerned about fraud, based on the primary responsibility for prevention and/or detection of fraud rests upon management to develop adequate accounting systems with appropriate internal controls. As a consequence, the auditor cannot be considered a guarantor of his client’s financial statements because of the fact that he may be handicapped by collusion, expert forgery or other sophisticated deterrents to detection. Overall, it is the management rather than the auditor who is primarily responsible for instituting the necessary internal control procedures and for the financial statement. The previous findings reveal that because of the use of more advanced technology, the amount of fraud that is detected appears to have declined. This is related to the fact that auditors have limited legal expertise and do not have the training needed to identify all illegal activities. Further, the auditor should be responsible for uncovering only that fraud which has a material effect on the accuracy of financial statements.
Keywords: Fraud Detection, Management Fraud, Fraud and Technology

 
 
 
 

Establishing Sustainable Educational Business Programs in Guatemala

 

William J. Haney, Ph.D., Professor of Business Administration, College of Business and Mass Communication, Brenau University, USA

 

ABSTRACT

 

As the educational marketplace expands globally, business students continue to expect curricula that enhance their knowledge of international business practice, as well as engage them directly with international venues. These curricula can take the form of international internships, travel abroad classes, cross-cultural service learning opportunities, and hands-on classroom applications that bring students in direct contact with business and industry in foreign lands. The purpose of this study was twofold. First, this study examined the key considerations that were taken to ensure that student experiences were applicable for graduate level curricula. Second, it investigated the attitudes American and international graduate business students have about travel to Guatemala to work on sustainable educational projects directly tied into the local Guatemalan economy. As a result of their travel to Guatemala, students reported valuable insights into a developing nation’s economy as well as an understanding of the issues associated with their partner host companies. Further examination of the travel experience indicated that when developing such programs, close coordination with host companies created partnerships that allowed sustainable growth in that company which can continue to develop ongoing relationships with future business students who travel.
Keywords: travel abroad, study abroad, international travel, Guatemala, internationalization, business programs, service learning

 
 
 
 

Social Networks in Higher Education: A Study of the Relationship of Social Structural and Proximity Factors to Teacher Credibility and Perceived Quality of Academic Life

 

Dr. Gordon R. Haley, Assistant Professor of St. Thomas University, USA

 

ABSTRACT

 

As Berge (1998) tells us, learning is a lifelong process that is important to effective participation in cultural and economic life in a democratic society. In their research on cultural issues in distance education, Enoch and Soker (2006) note one of the major concerns of modern societies today is to ensure increased access to higher education, and to include members of formerly under-represented social groups and categories, such as ethnic and racial minorities, women and people who live in distant rural or disadvantaged areas or who have to combine their studies with full-time or part-time jobs. Building on the work of Enoch and Soker, this paper looks at race, gender, age, course location and job status and their relationship to teacher credibility and perceived quality of academic life. The data for this study was provided by students attending a community college located in a metropolitan area of the Midwest.

 
 
 
 

An Optimal Confidence Region for the Best and the Worst of Correlated Treatments

 

Hubert J. Chen, Professor, Department of Accountancy, National Cheng Kung University, Tainan, Taiwan

 

ABSTRACT

 

A single-sample sampling procedure for obtaining an optimal confidence region for the best and the worst alternatives of several correlated normal populations with a common unknown variance and a non-negative correlation coefficient is proposed, where the best (worst) alternative is defined to be the one with the largest (smallest) mean. By“an optimal confidence region”we mean that the individual interval component in the region has the smallest interval width while the confidence probability remains at a fixed number. An important application is applied to the evaluation of a number of diversified mutual funds in the U.S. stock market. It is found that the confidence region provides statistical information for investors in a financial market. The confidence region can also be applied to independent populations.
Keywords: Confidence region; Largest (smallest) mean; Student t; Fixed-width; Multivariate normal; Least favorable configuration

 
 
 
 

Corporate Governance, Financial Leverage and other Determinants of Intellectual Capital Performance in UAE Banks

 

 Magdi El-Bannany, College of Business Administration, University of Sharjah, UAE, Faculty of Commerce, Ain Shams University, Egypt, Principal, Dr El-Bannany & Co. Accountants, UK

 

ABSTRACT

 

Purpose – The aim of this study is to investigate the impact of corporate governance, financial leverage and other factors on intellectual capital performance in UAE Banks over the period 2000-2008. Design/methodology/approach – Multiple regression analysis is used to investigate the relationship between the intellectual capital performance as a dependent variable and corporate governance, financial leverage & other independent variables. Findings – Results indicate that the standard variables, bank efficiency, bank size, bank profitability bank age, and listing age have significant impact on intellectual capital performance but the barriers to entry variable has not. The results also show that corporate governance and financial leverage variables, which have not been considered in previous studies, have a significant impact on intellectual capital performance. Originality/value – This paper adds to the literature on the determinants of intellectual capital performance in banks. In particular, it tests the theories that corporate governance and financial leverage which have not been considered in previous studies have impact on intellectual capital performance.
Keywords: Intellectual capital performance, corporate governance, financial leverage, bank efficiency, barrier to entry, bank size, bank profitability, bank age, listing age, banks, United Arab Emirates

 
 
 
 

Predicting Takeover Targets– Case of Croatian Insurance Companies (1998-2010)

 

Dr. Tomislava Pavic Kramaric, University of Split, University Centre for Professional Studies, Croatia

 

ABSTRACT

 

Globalization and fierce competition have forced many business entities to look for alternative ways of improving their competitiveness. One of such ways is particularly interesting and it refers to mergers and acquisitions of companies. M&A activities are conducted within different industries as well as in an insurance industry. This paper investigates the characteristics of target companies on the Croatian insurance market. The data used for these analyses refer to the period from 1998 to 2010. Starting from the standpoint that not all insurance companies are equally attractive for M&A, logistic regression analysis was conducted with the aim of exploring characteristics of target insurance companies and finding out the motives for acquiring a particular insurance company. Such an analysis brings an important finding according to which insurance companies are characterized by distinctive characteristics which make them potential targets. The findings show that out of eighteen independent variables included in the model, three of them were statistically significant (leverage, size measured by gross written premium and size measured by total assets) in predicting whether a certain company is about to become a target company. The likelihood of being acquired is significantly and positively related to leverage and size measured by gross written premium, while it is negatively related to size measured by total assets. The results of the analysis show that M&A are to be driven for the most part by economically viable objectives.
Keywords: M&A, takeover targets, logistic regression

 
 
 
 

The Positive Outlook of The Last In First Out Inventory Method

 

Dr. Peter Harris, New York Institute of Technology, USA

 

ABSTRACT

 

The Last in First out Method (LIFO) is presently under severe scrutiny from the financial community, which may soon culminate in its repeal as an acceptable accounting method. There are pressures from the SEC in conjunction with the International Financial Accounting Standards Board to standardize accounting standards worldwide. In addition, there is political pressure imposed by the US Obama administration to raise additional revenues. Both groups strongly oppose LIFO, raising the possibility of its complete elimination as an acceptable accounting method. However, adverse economic and political events in 2011 have greatly renewed the lifeline of LIFO. In the case of its u repeal, the author presents some tax opportunities available in this transition period.
Keywords: LIFO, LIFO Reserve, IFRS, US GAAP, FIFO

 
 
 
 

A Model of Global Network Environment for Innovation

 

Karol I. Pelc, School of Business and Economics, Michigan Technological University, USA

 

ABSTRACT

 

Global innovation networks emerged recently and became a trademark of the 21st century’s international management of innovation and technology. They are developing due to continuously increasing complexity of technology and increasing costs of innovation projects. Collaboration became effective thanks to the improving information and communication technology allowing easy and simultaneous access to databases in globally distributed systems. The evolution of global markets with a high degree of openness provided incentives for innovation initiatives reaching across national borders. Scientific, technological and economic networks of collaboration involve companies, institutions and individuals. In many instances they became necessary for solving important problems and for jointly developing risky and/or high cost innovation projects. The purpose of this paper is to present a conceptual model of global network environment for innovation. The model represents a constellation of interlinked global networks. The constellation consists of the following layers: (a) Research networks, (b) Innovation networks, (c) Production networks, and (d) Service and distribution networks. Linkages between elements of each network are considered through representation of streams of knowledge. The paper also presents a new taxonomy of global innovation networks and a brief description of typical structures of those networks. The global aspects of innovation networks are emphasized within four basic spheres of environment: economic, managerial, social, and cultural. The Schumpeterian concept of innovation is applied in analysis of basic features of collaborative innovation. The impact of global business environment on innovation network configurations is assessed according to criteria corresponding to the four basic spheres of that environment.
Keywords: Global network environment, Innovation networks, Knowledge flow, Network taxonomy, Impact assessment

 
 
 
 
 
 
 

Organizational Effectiveness Among Public, Private And Not-For-Profit Sectors In Jamaica And The USA

 

G. Ronald Gilbert, Ph.D. Clinical Professor
Donald Roomes, Senior Lecturer
Florida International University, Miami, FL, USA

 

ABSTRACT

 

The relative effectiveness of public, private and not-for-profit (NFP) organizations remains an area of research interest. NFPs have been least researched and little cross cultural analysis of the three sectors has taken place. Our study focuses on the relative differences and similarities of the organizational work environments associated with public, private and NFP sectors embedded in two different English speaking national cultures from which these organizations interact and serve to reinforce the cultural contexts in which they exist. It is based on data collected from samples of 1588 working adults from the nations of Jamaica (N=704; Public=229; Private= 391; NFP= 84) and the USA (N=884; Public=212; Private=577; NFP= 93). We used a standardized organizational assessment instrument that includes 10 empirically derived (EFA, CFA) independent dimensions of an organization’s production systems-service quality chain. Metric equivalence was established across the two nations. MANCOVA statistical applications revealed the USA respondents rated their organizations higher on most measures than did the Jamaicans and this is attributed to national culture. When controlling for national differences, the private and NFP organizations were rated higher on most measures of organizational effectiveness than were those in the public sector.