Challenges the finance profession has been facing following the 2008-2009. A multi-country research

In the successful strategic management of the modern companies each function plays their specific role. While today’s businesses in many ways are different from their ancestors, the key fundamentals are derived from the same roots. Their main purpose of existence is to serve the needs of their shareholders and stakeholders by creating value (Pike et al., 1993). To achieve this effectively and efficiently the various functions need to work in close cooperation with each other. The global crisis, starting in 2008, proved that volatility is higher for the financial markets and the ordinary businesses that have been anticipated before. As the recession started as a financial crisis many people started to blame – amongst others – banks and financial institutions for excessive risk taking and taking short profits ahead of long term sustainable growth. Accordingly the lost confidence in the financial institutions has taken a toll on the reputation of other Finance professionals such as accountants, book keepers, treasury, tax people and others. The finance function’s strategic importance is linked to its ability to help interpreting the business performance and provide transparency. In order to restore the trust the finance profession is now facing one of the biggest challenges of its history, the need to reinvent itself. This paper presents the findings of a recent international research conducted in the United Kingdom, France, Hungary and Poland interviewing 169 executives of the business sector plus the review of 237 job descriptions of finance professionals in order to understand the challenges of the modern finance function. The findings of the study could provide relevant answers and help to overcome a very current problem that Finance is facing today, how to rebuild reputation and to stay a trusted partner and enabler for long term business strategy.

A bizalmat befolyásoló tényezők vizsgálata az üzleti kapcsolatokban (Affects of Transaction cost and Social Exchange Constructs on trust In supply chain relationship)

Az üzleti célú kapcsolatok vizsgálatakor legtöbbször felmerül a bizalom fogalma is, amellyel először a szociálpszichológia és a szociológia foglalkozott. A szerző cikkében azzal foglalkozik, hogy milyen tényezők befolyásolják a bizalmat az üzleti kapcsolatokban. Ezért magyarországi szervezeteket (elsősorban üzleti vállalkozásokat) kérdezett meg kvantitatív módszer alkalmazásával. Ez az empirikus kutatás igyekszik a bizalom lehető legtöbb tényezőit összegyűjteni, ahol a kérdőívben a válaszolók egyik létező – vevői vagy beszállítói – kapcsolatukra gondolva válaszoltak a bizalmon túl a partner hírnevére, az észlelt elégedettségre és konfliktusra, az információcserére, a lecserélhetőségre, valamint a kapcsolatspecifikus beruházásokra vonatkozóan. Az eredmények azt mutatják, hogy egyik változó sem jelent kizárólagos befolyásoló erőt, hanem közösen alakítják ki a bizalom adott szintjét. _______ This article is based on the assumption that trust promotes commitment between partners in the supply chain and improves the chances of return on supply chain success. In contrast, a lack of trust between them often increases transaction costs and results in inefficiency. The results of this research, based on multi-country surveys with 729 returns from France, Hungary, Korea, Tunisia and the United States on supply chain professionals, reveals a strong affect of transaction cost constructs (TCC) (asset specificity and behavioral uncertainty) and social exchange constructs (SEC) (replaceability, perceived satisfaction, partner reputation, and perceived conflict) on trust-commitment variables in partnership based supply chain relationships. This paper employed a structural equation model to extract information from the survey data. Among the findings, the research indicates that a firm’s trustcommitment in dealing with their supply chain partnership is highly associated with not only transaction cost, but more so with social exchange variables. This study may open a new research avenue in that there is another construct, SEC, beside TSC that influences the degree of trust and commitment.

Such a Nice Man

In this novel, Gregory "Go" Overman, a Washington D.C. stock analyst, fears for the welfare of his beloved sister when she falls for a Florida billionaire with a shady reputation. While attempting to find evidence of the billionaire's chicanery, he gets involved with a young hooker his sister is attempting to rehabilitate. Beginning with a lie to his sister, Go's lust pulls him to such a low moral point he wonders if he's become no better than his greedy antagonist. But when tragedy strikes, he unearths secrets that enable him to avenge his sister and redeem himself. This novel is written from the viewpoint of a first-person narrator and contains four sections totaling forty-eight chapters. ^

The adoption of retail electronic commerce: An empirical investigation

The purpose of this study was to empirically investigate the adoption of retail electronic commerce (REC). REC is a business transaction which takes place over the Internet between a casual consumer and a firm. The consumer has no long-term relationship with the firm, orders a good or service, and pays with a credit card. To date, most REC applications have not been profitable. To build profitable REC applications a better understanding of the system's users is required. ^ The research model hypothesizes that the level of REC buying is dependent upon the Buying Characteristics of Internet Use and Search Experience plus the Channel Characteristics of Beliefs About Internet Vendors and Beliefs About Internet Security. The effect of these factors is modified by Time. Additional research questions ask about the different types of REC buyers, the differences between these groups, and how these groups evolved over time. ^ To answer these research questions I analyzed publicly available data collected over a three-year period by the Georgia Institute of Technology Graphics and Visualization Unit over the Internet. Findings indicate the model best predicts Number of Purchases in a future period, and that Buyer Characteristics are most important to this determination. Further, this model is evolving over Time making Buyer Characteristics predict Number of Purchases better in more recent survey administrations. Buyers clustered into five groups based on level of buying and move through various levels and buy increasing Number of Purchases over time. ^ This is the first large scale research project to investigate the evolution of REC. This implications are significant. Practitioners with casual consumer customers need to deploy a finely tuned REC strategy, understand their buyers, capitalize on the company reputation on the Internet, install an Internet-compatible infrastructure, and web-enable order-entry/inventory/fulliment/shipping applications. Researchers might wish to expand on the Buyer Characteristics of the model and/or explore alternative dependent variables. Further, alternative theories such as Population Ecology or Transaction Cost Economics might further illuminate this new I.S. research domain. ^

Nonlinear dynamics and chaos simulation system analysis for improved design

Small errors proved catastrophic. Our purpose to remark that a very small cause which escapes our notice determined a considerable effect that we cannot fail to see, and then we say that the effect is due to chance. Small differences in the initial conditions produce very great ones in the final phenomena. A small error in the former will produce an enormous error in the latter. When dealing with any kind of electrical device specification, it is important to note that there exists a pair of test conditions that define a test: the forcing function and the limit. Forcing functions define the external operating constraints placed upon the device tested. The actual test defines how well the device responds to these constraints. Forcing inputs to threshold for example, represents the most difficult testing because this put those inputs as close as possible to the actual switching critical points and guarantees that the device will meet the Input-Output specifications. ^ Prediction becomes impossible by classical analytical analysis bounded by Newton and Euclides. We have found that non linear dynamics characteristics is the natural state of being in all circuits and devices. Opportunities exist for effective error detection in a nonlinear dynamics and chaos environment. ^ Nowadays there are a set of linear limits established around every aspect of a digital or analog circuits out of which devices are consider bad after failing the test. Deterministic chaos circuit is a fact not a possibility as it has been revived by our Ph.D. research. In practice for linear standard informational methodologies, this chaotic data product is usually undesirable and we are educated to be interested in obtaining a more regular stream of output data. ^ This Ph.D. research explored the possibilities of taking the foundation of a very well known simulation and modeling methodology, introducing nonlinear dynamics and chaos precepts, to produce a new error detector instrument able to put together streams of data scattered in space and time. Therefore, mastering deterministic chaos and changing the bad reputation of chaotic data as a potential risk for practical system status determination. ^

Intercollegiate athletics and college rankings: An analysis of the relationship between athletic success and the U.S. News and World Report college rankings

The purpose of this study was to gain a greater understanding of the relationship between athletic success of football and men's basketball and the U.S. News and World Report (USNWR) college rankings. There has been consistent debate among researchers who study institutional quality about whether intercollegiate athletics enhances reputation. This study is similar to other studies attempting to measure the relationship between athletic success and possible indirect benefits to the university from athletics, such as increased admissions applications and increased alumni donations and giving. This study offered a more nuanced model for measuring athletic success, a concept that has been difficult to measure quantitatively. The method used here also measured change over time (in this case, from year-to-year over an eleven year period). The research questions for this study were (a) is there a correlation between athletic success and the USNWR college ranking; and (b) is there a correlation in the change from year-to-year in athletic success with the change from year-to-year in the USNWR college rankings? Spearman Rho correlation and ANOVA tests were used to answer these research questions. The results from the statistical tests demonstrated little correlation between athletic success, whether in football or men's basketball, with the USNWR college rankings. Although the relationships were weak, men's basketball success consistently demonstrated a stronger relationship than football success. This finding differed from what is most often found in the literature, which often favors football success. The ANOVA test results did reveal some results that suggest athletic participation is a factor in the USNWR college rankings. As the debate continues about whether intercollegiate athletics enhances reputation, and as colleges and universities continue spending enormously on athletics, a keener understanding about the possible indirect benefits to the university from athletic programs is needed. The "advertising" provided by spectator sports such as football and men's basketball is often assumed by university leaders to present substantial indirect benefits for the university. However, the existing research along with this study provides little evidence of such opportunities.

Trust based security mechanisms for wireless sensor networks

Wireless sensor networks are emerging as effective tools in the gathering and dissemination of data. They can be applied in many fields including health, environmental monitoring, home automation and the military. Like all other computing systems it is necessary to include security features, so that security sensitive data traversing the network is protected. However, traditional security techniques cannot be applied to wireless sensor networks. This is due to the constraints of battery power, memory, and the computational capacities of the miniature wireless sensor nodes. Therefore, to address this need, it becomes necessary to develop new lightweight security protocols. This dissertation focuses on designing a suite of lightweight trust-based security mechanisms and a cooperation enforcement protocol for wireless sensor networks. This dissertation presents a trust-based cluster head election mechanism used to elect new cluster heads. This solution prevents a major security breach against the routing protocol, namely, the election of malicious or compromised cluster heads. This dissertation also describes a location-aware, trust-based, compromise node detection, and isolation mechanism. Both of these mechanisms rely on the ability of a node to monitor its neighbors. Using neighbor monitoring techniques, the nodes are able to determine their neighbors’ reputation and trust level through probabilistic modeling. The mechanisms were designed to mitigate internal attacks within wireless sensor networks. The feasibility of the approach is demonstrated through extensive simulations. The dissertation also addresses non-cooperation problems in multi-user wireless sensor networks. A scalable lightweight enforcement algorithm using evolutionary game theory is also designed. The effectiveness of this cooperation enforcement algorithm is validated through mathematical analysis and simulation. This research has advanced the knowledge of wireless sensor network security and cooperation by developing new techniques based on mathematical models. By doing this, we have enabled others to build on our work towards the creation of highly trusted wireless sensor networks. This would facilitate its full utilization in many fields ranging from civilian to military applications.

Explaining the effects of class size on faculty and students

This study explored the effects of class size on faculty and students. Specifically, it examined the relationship of class size and students' participation in class, faculty interactive styles, and academic environment and how these behaviors affected student achievement (percentage of students passing). The sample was composed of 629 students in 30 sections of Algebra I at a large, urban community college. A survey was administered to the students to solicit their perceptions on their participation in class, their faculty interaction style, and the academic environment in their classes. Selected classes were observed to triangulate the findings. The relationship of class size to student participation, faculty interactive styles, and academic environment was determined by using hierarchical linear modeling (HLM). A significant difference was found on the participation of students related to class size. Students in smaller classes participated more and were more engaged than students in larger classes. Regression analysis using the same variables in small and large classes showed that faculty interactive styles significantly predicted student achievement. Stepwise regression analyses of student and faculty background variables showed that (a) students' estimate of GPA was significantly related to their achievement (r = .63); (b) older students reported more participation than did younger ones, (c) students in classes taught by female, Hispanic faculty earned higher passing grades, and (d) students' participation was greater with adjunct professors. Class observations corroborated these findings. The analysis and observational data provided sufficient evidence to warrant the conclusion that small classes were not always most effective in promoting achievement. It was found that small classes may be an artifact of ineffectual teaching, actual or by reputation. While students in small classes participate and are more engaged than students in larger classes, the class-size effect is essentially due to what happens in instruction to promote learning. The interaction of the faculty with students significantly predicted students' achievement regardless of class size. Since college students select their own classes, students do not register for classes taught by faculty with poor teaching reputation, thereby leading to small classes. Further studies are suggested to determine reasons why classes differ in size.

Modeling security and cooperation in wireless networks using game theory

This research involves the design, development, and theoretical demonstration of models resulting in integrated misbehavior resolution protocols for ad hoc networked devices. Game theory was used to analyze strategic interaction among independent devices with conflicting interests. Packet forwarding at the routing layer of autonomous ad hoc networks was investigated. Unlike existing reputation based or payment schemes, this model is based on repeated interactions. To enforce cooperation, a community enforcement mechanism was used, whereby selfish nodes that drop packets were punished not only by the victim, but also by all nodes in the network. Then, a stochastic packet forwarding game strategy was introduced. Our solution relaxed the uniform traffic demand that was pervasive in other works. To address the concerns of imperfect private monitoring in resource aware ad hoc networks, a belief-free equilibrium scheme was developed that reduces the impact of noise in cooperation. This scheme also eliminated the need to infer the private history of other nodes. Moreover, it simplified the computation of an optimal strategy. The belief-free approach reduced the node overhead and was easily tractable. Hence it made the system operation feasible. Motivated by the versatile nature of evolutionary game theory, the assumption of a rational node is relaxed, leading to the development of a framework for mitigating routing selfishness and misbehavior in Multi hop networks. This is accomplished by setting nodes to play a fixed strategy rather than independently choosing a rational strategy. A range of simulations was carried out that showed improved cooperation between selfish nodes when compared to older results. Cooperation among ad hoc nodes can also protect a network from malicious attacks. In the absence of a central trusted entity, many security mechanisms and privacy protections require cooperation among ad hoc nodes to protect a network from malicious attacks. Therefore, using game theory and evolutionary game theory, a mathematical framework has been developed that explores trust mechanisms to achieve security in the network. This framework is one of the first steps towards the synthesis of an integrated solution that demonstrates that security solely depends on the initial trust level that nodes have for each other.^

The river, the railroad tracks, and the towers: How residents' worldview and use value transformed Wilton Manors into a diverse, gay-friendly, urban village

This case study examines the factors that shaped the identity and landscape of a small island-urban-village between the north and south forks of the Middle River and north of an urban area in Broward County, Florida. The purpose of the study is to understand how Wilton Manors was transformed from a “whites only” enclave to the contemporary upscale, diverse, and third gayest city in the U.S. by positing that a dichotomy for urban places exists between their exchange value as seen by Logan and Molotch and the use value produced through everyday activity according to Lefebvre. Qualitative methods were used to gather evidence for reaching conclusions about the relationship among the worldview of residents, the tension between exchange value and use value in the restructuration of the city, and the transformation of Wilton Manors at the end of the 1990s. Semi-structured, in-depth interviews were conducted with 21 contemporary participants. In addition, thirteen taped CDs of selected members of founding families, previously taped in the 1970s, were analyzed using a grounded theory approach. My findings indicate that Wilton Manors’ residents share a common worldview which incorporates social inclusion as a use value, and individual agency in the community. This shared worldview can be traced to selected city pioneers whose civic mindedness helped shape city identity and laid the foundation for future restructuration. Currently, residents’ quality of life reflected in the city’s use value is more significant than exchange value as a primary force in the decisions that are made about the city’s development. With innovative ideas, buildings emulating the new urban mixed-use design, and a reputation as the third gayest city in the United States, Wilton Manors reflects a worldview where residents protect use value as primary over market value in the decisions they make that shape their city but not without contestation.^

Control of MNC environmental performance and the challenges of subsidiary network dimensions

The trend of green consumerism and increased standardization of environmental regulations has driven multinational corporations (MNCs) to seek standardization of environmental practices or at least seek to be associated with such behavior. In fact, many firms are seeking to free ride on this global green movement, without having the actual ecological footprint to substantiate their environmental claims. While scholars have articulated the benefits from such optimization of uniform global green operations, the challenges for MNCs to control and implement such operations are understudied. For firms to translate environmental commitment to actual performance, the obstacles are substantial, particularly for the MNC. This is attributed to headquarters' (HQ) control challenges (1) in managing core elements of the corporate environmental management (CEM) process and specifically matching verbal commitment and policy with ecological performance and by (2) the fact that the MNC operates in multiple markets and the HQ is required to implement policy across complex subsidiary networks consisting of diverse and distant units. Drawing from the literature on HQ challenges of MNC management and control, this study examines (1) how core components of the CEM process impact optimization of global environmental performance (GEP) and then uses network theory to examine how (2) a subsidiary network's dimensions can present challenges to the implementation of green management policies. It presents a framework for CEM which includes (1) MNCs' Verbal environmental commitment, (2) green policy Management which guides standards for operations, (3) actual environmental Performance reflected in a firm's ecological footprint and (4) corporate environmental Reputation (VMPR). Then it explains how an MNC's key subsidiary network dimensions (density, diversity, and dispersion) create challenges that hinder the relationship between green policy management and actual environmental performance. It combines content analysis, multiple regression, and post-hoc hierarchal cluster analysis to study US manufacturing MNCs. The findings support a positive significant effect of verbal environmental commitment and green policy management on actual global environmental performance and environmental reputation, as well as a direct impact of verbal environmental commitment on green policy management. Unexpectedly, network dimensions were not found to moderate the relationship between green management policy and GEP.

"Unfair'' Restaurant Reviews:To Sue Or Not To Sue

In their discussion entitled - “Unfair” Restaurant Reviews: To Sue Or Not To Sue - by John Schroeder and Bruce Lazarus, Assistant Professors, Department of Restaurant, Hotel and Institutional Management at Purdue University, the authors initially state: “Both advantages and disadvantages exist on bringing lawsuits against restaurant critics who write “unfair” reviews. The authors, both of whom have experience with restaurant criticism, offer practical advice on what realistically can be done by the restaurateur outside of the courtroom to combat unfair criticism.” Well, this is going to be a sticky wicket no matter how you try to defend it, reviews being what they are; very subjective pieces of opinionated journalism, especially in the food industry. And, of course, unless you can prove malicious intent there really is no a basis for a libel suit. So, a restaurateur is at the mercy of written opinion and the press. “Libel is the written or published form of slander which is the statement of false remarks that may damage the reputation of others. It also includes any false and malicious publication which may damage a person's business, trade, or employment,” is the defined form of the law provided by the authors. Anecdotally, Schroeder and Lazarus offer a few of the more scathing pieces reviewers have written about particular eating establishments. And, yes, they can be a bit comical, unless you are the owner of an establishment that appears in the crosshairs of such a reviewer. A bad review can kneecap even a popular eatery. “Because of the large readership of restaurant reviews in the publication (consumer dining out habits indicate that nearly 50 percent of consumers read a review before visiting a new restaurant) your business begins a very dangerous downward tailspin,” the authors reveal, with attribution. “Many restaurant operators contend that a bad review can cost them an immediate trade loss of upward of 50 percent,” Schroeder and Lazarus warn. “The United States Supreme Court has ruled that a restaurant owner can collect damages only if he proves that the statement or statements were made with “actual malice,” even if the statements were untrue,” the authors say by way of citation. And that last portion of the statement cannot be over-emphasized. The first amendment to the U.S. Constitution does wield a heavy hammer, indeed, and it should. So, what recourse does a restaurateur have? The authors cautiously give a guarded thumbs-up to a lawsuit, but you better be prepared to prove a misstatement of fact, as opposed to the distinguishable press protected right of opinion. For the restaurateur the pitfalls are many, the rewards few and far between, Schroeder and Lazarus will have you know. “…after weighing the advantages and disadvantages of a lawsuit against a critic...the disadvantages are overwhelming,” the authors say. “Chicago restaurant critic James Ward said that someone dumped a load of manure on his yard accompanied by a note that read - Stop writing that s--t! - after he wrote a review of a local restaurant.” Such is a novel if not legally measurable tack against an un-mutual review.

Travel Marketing: Industry Relationships and Benefits

In the discussion - Travel Marketing: Industry Relationships and Benefits - by Andrew Vladimir, Visiting Assistant Professor, School of Hospitality Management at Florida International University, the author initially states: “A symbiotic relationship exists among the various segments of the travel and tourism industry. The author has solicited the thinking of 37experts and leaders in the field in a book dealing with these relationships and how they can be developed to benefit the industry. This article provides some salient points from those contributors.” This article could be considered a primer on networking for the hospitality industry. It has everything to do with marketing and the relationships between varied systems in the field of travel and tourism. Vladimir points to instances of success and failure in marketing for the industry at large. And there are points of view from thirty-seven contributing sources here. “Miami Beach remains a fitting example of a leisure product that has been unable to get its act together,” Vladimir shares a view. “There are some first class hotels, a few good restaurants, alluring beaches, and a splendid convention center, but there is no synergism between them, no real affinity, and so while visitors admire the Fontainebleau Hilton and enjoy the food at Joe's Stone Crabs, the reputation of Miami Beach as a resort remains sullied,” the author makes a point. In describing cohesiveness between exclusive systems, Vladimir says, “If each system can get a better understanding of the inner workings of neighboring related systems, each will ultimately be more successful in achieving its goals.” The article is suggesting that exclusive systems aren’t really exclusive at all; or at least they shouldn’t be. In a word – competition – drives the market, and in order for a property to stay afloat, aggressive marketing integrated with all attendant resources is crucial. “Tisch [Preston Robert Tisch, currently – at the time of this writing - the Postmaster General of the United States and formerly president of Lowe’s Hotels and the New York Visitors and Convention Bureau], in talking about the need for aggressive marketing says: “Never...ever...take anything for granted. Never...not for a moment...think that any product or any place will survive strictly on its own merits.” Vladimir not only sources several knowledgeable representatives in the field of hospitality and tourism, but he also links elements as disparate as real estate, car rental, cruise and airlines, travel agencies and traveler profiles to illustrate his points on marketing integration. In closing, Vladimir quotes the Honorable Donna Tuttle, Undersecretary of Commerce for Travel and Tourism, “Uniting the components of this industry in an effective marketing coalition that can compete on an equal footing with often publicly-owned foreign tourism conglomerates and multi-national consortia must be a high priority as the United States struggles to maintain and expand its share of a rapidly changing global market.”

Risk -taking propensity of faculty, administrators, and academic department heads at a large, urban, multi -campus community college

This research was undertaken to explore dimensions of the risk construct, identify factors related to risk-taking in education, and study risk propensity among employees at a community college. Risk-taking propensity (RTP) was measured by the 12-item BCDQ, which consisted of personal and professional risk-related situations balanced for the money, reputation, and satisfaction dimensions of the risk construct. Scoring ranged from 1.00 (most cautious) to 6.00 (most risky).^ Surveys including the BCDQ and seven demographic questions relating to age, gender, professional status, length of service, academic discipline, highest degree, and campus location were sent to faculty, administrators, and academic department heads. A total of 325 surveys were returned, resulting in a 66.7% response rate. Subjects were relatively homogeneous for age, length of service, and highest degree.^ Subjects were also homogeneous for risk-taking propensity: no substantive differences in RTP scores were noted within and among demographic groups, with the possible exception of academic discipline. The mean RTP score for all subjects was 3.77, for faculty was 3.76, for administrators was 3.83, and for department heads was 3.64.^ The relationship between propensity to take personal risks and propensity to take professional risks was tested by computing Pearson r correlation coefficients. The relationships for the total sample, faculty, and administrator groups were statistically significant, but of limited practical significance. Subjects were placed into risk categories by dividing the response scale into thirds. A 3 x 3 factorial ANOVA revealed no interaction effects between professional status and risk category with regard to RTP score. A discriminant analysis showed that a seven-factor model was not effective in predicting risk category.^ The homogeneity of the study sample and the effect of a risk-encouraging environment were discussed in the context of the community college. Since very little data on risk-taking in education is available, risk propensity data from this study could serve as a basis for comparison to future research. Results could be used by institutions to plan professional development activities, designed to increase risk-taking and encourage active acceptance of change. ^

Strategic positioning of Taiwan in the outsourcing market: Evidence from information technology services and electronic manufacturing outsourcing to China

In outsourcing relationships with China, the Electronic Manufacturing (EM) and Information Technology Services (ITS) industry in Taiwan may possess such advantages as the continuing growth of its production value, complete manufacturing supply chain, low production cost and a large-scale Chinese market, and language and culture similarity compared to outsourcing to other countries. Nevertheless, the Council for Economic Planning and Development of Executive Yuan (CEPD) found that Taiwan's IT services outsourcing to China is subject to certain constraints and might not be as successful as the EM outsourcing (Aggarwal, 2003; CEPD, 2004a; CIER, 2003; Einhorn and Kriplani, 2003; Kumar and Zhu, 2006; Li and Gao, 2003; MIC, 2006). Some studies examined this issue, but failed to (1) provide statistical evidence about lower prevalence rates of IT services outsourcing, and (2) clearly explain the lower prevalence rates of IT services outsourcing by identifying similarities and differences between both types of outsourcing contexts. This research seeks to fill that gap and possibly provide potential strategic guidelines to ITS firms in Taiwan. This study adopts Transaction Cost Economics (TCE) as the theoretical basis. The basic premise is that different types of outsourcing activities may incur differing transaction costs and realize varying degrees of outsourcing success due to differential attributes of the transactions in the outsourcing process. Using primary data gathered from questionnaire surveys of ninety two firms, the results from exploratory analysis and binary logistic regression indicated that (1) when outsourcing to China, Taiwanese firms' ITS outsourcing tends to have higher level of asset specificity, uncertainty and technical skills relative to EM outsourcing, and these features indirectly reduce firms' outsourcing prevalence rates via their direct positive impacts on transaction costs; (2) Taiwanese firms' ITS outsourcing tends to have lower level of transaction structurability relative to EM outsourcing, and this feature indirectly increases firms' outsourcing prevalence rates via its direct negative impacts on transaction costs; (3) frequency does influence firms' transaction costs in ITS outsourcing positively, but does not bring impacts into their outsourcing prevalence rates, (4) relatedness does influence firms' transaction costs positively and prevalence rates negatively in ITS outsourcing, but its impacts on the prevalence rates are not caused by the mediation effects of transaction costs, and (5) firm size of outsourcing provider does not affect firms' transaction costs, but does affect their outsourcing prevalence rates in ITS outsourcing directly and positively. Using primary data gathered from face-to-face interviews of executives from seven firms, the results from inductive analysis indicated that (1) IT services outsourcing has lower prevalence rates than EM outsourcing, and (2) this result is mainly attributed to Taiwan's core competence in manufacturing and management and higher overall transaction costs of IT services outsourcing. Specifically, there is not much difference between both types of outsourcing context in the transaction characteristics of reputation and most aspects of overall comparison. Although there are some differences in the feature of firm size of the outsourcing provider, the difference doesn't cause apparent impacts on firms' overall transaction costs. The medium or above medium difference in the transaction characteristics of asset specificity, uncertainty, frequency, technical skills, transaction structurability, and relatedness has caused higher overall transaction costs for IT services outsourcing. This higher cost might cause lower prevalence rates for ITS outsourcing relative to EM outsourcing. Overall, the interview results are consistent with the statistical analyses and provide support to my expectation that in outsourcing to China, Taiwan's electronic manufacturing firms do have lower prevalence rates of IT services outsourcing relative to EM outsourcing due to higher transaction costs caused by certain attributes. To solve this problem, firms' management should aim at identifying alternative strategies and strive to reduce their overall transaction costs of IT services outsourcing by initiating appropriate strategies which fit their environment and needs.