Contracting-agency analysis of the association between firm risk, investment opportunity set, corporate governance and firm performance

Tests the efficiency of corporate controls (board monitoring and incentive contracts) for growth or risk firms. By exploring the implications of controls and studying their interactive effects on firm performance, this study demonstrates how and why different firms use corporate governance controls to align managers' and shareholders' interests.

Overseas Chinese as expatriate managers in China : is their recruitment a solution to cross-cultural management problems for multinationals operating in China?

The rapid economic development has gravitated businesses into the Chinese market. It’s entry into the World Trade Organization in 2001 made her an even more formidable player in the global economy and direct foreign investment surged. Yet it is acknowledged that for the foreign investor in China, cross-cultural issues create difficulty at every level, from the intercultural level relating to communication and negotiation, to the organizational level relating to decision making, human resource management practices, corporate legal institutions and dealing with governments. Western multinationals have considered the advantages of posting overseas Chinese, from Southeast Asian countries, Taiwan Hong Kong and etc. But has this policy been successful? In terms of language expertise and cultural literacy this would seem to be a good strategy, yet organizational case material contradicts this in reality. Overseas Chinese, while sharing some elements of Chinese culture with mainland Chinese, the Confucian heritage and other aspects such as language, diet, etc, nevertheless have different world views and values and behave differently from mainland Chinese in areas critical to business management. As a survival strategy, overseas Chinese often developed dual identities operating simultaneously. For many of them, for political and historical reasons, they have had to adapt to the local culture or even hide their own ethnicity in order to survive. On the other hand, the mainland Chinese are different in the sense that their behaviour has only had to be Chinese, but overlaid with this has been the experience of participating in a communist political environment for decades, which has left its mark on mainland Chinese culture. On the basis of this, in the current business environment in China confusion, difficulties and conflict may occur for the overseas Chinese. This paper aims to provide insights of the cultural differences between the overseas Chinese and mainland Chinese. It provides evidence that overseas Chinese are not often favoured by the local Chinese. This problem has yet to be researched in depth within international business and international management studies. It draws the attention to issues on how to manage the local Chinese.

The alignment of market research with business strategy and CRM

This study investigated the alignment between market research, business strategy and customer relationship management (CRM). With the introduction of advanced IT systems which collect and model internal customer data (CRM), marketing managers face new choices when seeking information to facilitate their particular business strategy. A survey of market research (MR) and CRMusage was conducted among 207 marketing managers. The findings showed the Miles and Snow Prospector strategists placed greater reliance on both MR and internal CRM data systems than did Defenders. This applied in their tasks of developing new strategies and in enlisting senior management support for their actions. As Prospectors were the most reliant on both traditional market research and CRM systems, they need to be skilled in using CRM in conjunction with traditional research methods. Marketing managers who use CRM will need to foster functional relationships with the technical specialists who run CRM systems.

Government involvement in entrepreneurship and new business creation in Australia : a quantitative analysis of public perceptions and opinions

In order to determine the range of Australian perceptions on new venture creation at the end of the decade of the 1980s, and in particular attitudes towards government involvement in fostering entrepreneurship, a major quantitative study was conducted. The survey involved more than 1500 Australians in face-to-face interviews (300 in each mainland capital city) chosen on a random basis.

An analysis of the data provides an assessment of the Australian general public&s perceptions in three key areas: their understanding of the word 'entrepreneur' their rating of importance of new venture creation; their belief in government involvement in fostering new venture creation.

It is believed to be the first study attempting to quantify an entire nation&s perceptions in three areas vital to creators of national economic and industry policies.

An empirical and logical exploration of the strategic compatibility of best practice and product innovation : preliminary insights from Australian and New Zealand manufacturing industry

In an attempt to enhance debate focused on an established academic controversy, this study re-investigated selected data from the 1994 AMC survey of Australian and New Zealand manufacturing practices to test the hypothesis that best practice and product innovation may be incompatible generic business strategies. A modification of Robert G. Cooper’s Stage-Gate product development model was used as a theoretical framework to create a measurable construct of ‘product innovation’ as a strategy and compare two groups: firms committed to a best practice strategy (BPs) and firms not utilising best practice (Non-BPs). Eight variables were scrutinised. After logical critique was added to statistical data analysis, four major insights emerged.

(1) Tests yielded several statistically significant but substantively inconclusive results because both studied groups had nearly identical profiles in rating innovation as the factor of lowest importance to commercial success and because the definitional framework which guided construction of the survey instrument treated innovation as a second-order issue. (2) Currently, best practice and product innovation are logically incompatible by definition. (3) Even if the definition of best practice were changed, it is likely that the additional key process of innovation would remain incompatible with the existing key process of benchmarking. (4) However, until the definition of best practice does make an attempt to include innovation as a key process rather than an outcome, testing any hypothesis of strategic compatibility between a best practice focus and an innovation focus will be both empirically difficult and logically unnecessary.

An exploratory survey of Australia's informal venture capitalists : a predicate to theory building in the context of international angel research

In Australia, as it is all over the world, finding and acquiring equity capital is one of the major problems facing entrepreneurs who are starting or growing entrepreneurial ventures. The informal venture capital market, made up of high net worth non-institutional private equity investors (or ‘business Angels’) provides risk capital directly to new and growing businesses and has been shown to be considerably more significant than institutional providers as a source of finance for entrepreneurial businesses. Building upon and comporting with Angel research undertaken overseas, this study generated and evaluated data resulting from an investigation of Australian business Angels which focused upon three primary research questions: (i) Who are Australia's Informal Venture Capitalists (Business Angels)? (ii) How do they behave? (iii) What are their investment criteria? Analysis of answers resulting from a survey of 36 carefully screened respondents produced a descriptive profile, depicted in twelve key graphs, of Australian Angels' identifying characteristics, patterns of investment behaviour and investment criteria. The study initiates Australian Angel research into the developing international continuum of formal Angel research and can serve as the generator of empirically sensible hypotheses for future research and theory development.

An exploratory investigation of informal venture capitalists in Singapore

The paper presents a tentative profile of Singapore’s informal venture capitalists (business angels) resulting from case analysis of 29 investee businesses. The inquiry closely referenced the research designs of previous international studies of business angels, but with due regard to the cultural distinctions of Western and Singapore societies, developed its own methodology and survey instrument. While application of inferential statistical techniques is not possible, results of the investigation find their value in their ability to underpin structured hypotheses for future research and the challenge they deliver to traditional ways of thinking about capital provision to new ventures in the Singapore environment.

Toward the standardization of venture capital investment evaluation : decision criteria for rating investee business plans

This study examined the criteria used by venture capitalists to evaluate business plans in order to make investment decisions. A literature survey revealed two competing theories: “espoused criteria” where evaluation decisions are based on what venture capitalists say are the decisive factors; versus the use of “known attributes” that successful ventures actually possess. Brunswik’s Lens Model from Social Judgment Theory guided an empirical investigation of several different evaluation methods based on information contained in 129 business plans submitted for venture capital over a 3 year period. Data evaluation culminated in the comparison of the percentage of correct decisions (“hit-rate”) for each method. We found that decisions based on the known attributes of successful ventures have significantly better hit-rates than decisions made using espoused criteria. Discussion centred on the goal of achieving consistency in the conduct of venture analysis. Process standardization can aid in the achievement of consistency. Future research will both deepen and broaden insights.

Market fit and business performance : an empirical investigation

This paper argues that an organisation needs to be managed for its fit to its intended target market. Market fit is defined as the capability configuration of a firm moderated by the relevant factors in the external environment. It is conceptualised within the integrated dynamic resource-based view of the firm. The study is based on survey data collected from 216 larger Australian businesses. Drawing on the existing literature on the resource-based view of the firm (RBV), a model of market fit has been developed and tested empirically. The results of the study suggest that the intangible internal assets of marketing planning, decision-making process, and marketing strategy form the core capability configuration of an organisation and that the market fit measure associates positively with business performance indicators. The assertion is that while the internal intangible assets form the core capability of an organisation, this capability is influenced by the market dynamics that may alter its character, intensity, and effectiveness in relation to its intended business performance objectives.

Minimising total survey error when measuring entrepreneurship in Tonga

This study illustrates how the Total Survey Error (TSE) paradigm can identify and help reduce multiple sources of error inherent in survey work in the developing world. Of particular concern are mode errors and coverage errors caused by the 'theoretical teledensity threshold' of doing phone surveys in developing countries. The study outlines ways to improve response rate and to avoid interviewer and measurement error. It narrates the sampling design and its limitations as well as some of the qualitative aspects of total survey quality such as, translation, ethics and budgeting. The final section discusses implications for further research in statistical auto-correlation and data gathering using PDAs.

Local ontologies and epistemologies of leadership in the Rosebank business precinct of Auckland, New Zealand

The Rosebank Business Precinct is one of Auckland s most highly developed Business Improvement Districts. This descriptive study, undertaken for Auckland City Council, examines the gaps between what Rosebank businesses actually want and what the workforce presently provides. A further aim was to investigate the potential for employee training, education and development in Rosebank. We conducted face-to-face interviews with about one-fifth of Rosebank companies using a 36-question questionnaire and employing random stratified cluster sampling. Fifteen of these firms also had in-depth interviews. From the present analysis, it is apparent that many firms lack leadership, leadership styles, managerial, computing and technology skills, which in turn leads to lower survival rates. Local authorities have a role to play in ontologies and epistemologies of leadership in the local organisations surveyed in Rosebank. Many owner/managers, regarded as leaders, held unsupportive attitudes toward training and education. The paper makes recommendations in the fields of labour force training, education and development; recruitment; and where leaders can recruit the right people.

Recruitment and retention of ICT skills among MNCs in Taiwan

Purpose – The existing research on multinational companies (MNCs) tends to emphasise the diffusion of knowledge and skills in information, communication and technology (ICT) from the more advanced industrialised nations to less-developed or latecomer countries. Few studies have examined the ICT work force supply and development of local ICT skills among MNCs' overseas subsidiaries. This paper aims to fill the gap by evaluating the issues relating to the host country's ICT work force planning and supply and the recruitment and retention of ICT skills among MNCs at their local subsidiary.

Design/methodology/approach – A survey of 100 MNCs in Taiwan, Republic of China was used for analysis. The self-administered questionnaire was designed to examine the extent of difficulty experienced by MNCs in recruiting high, medium and low levels of ICT skills in the manufacturing and service sector. Attrition rate of the ICT skilled workers in Taiwan was also examined.

Findings – The results suggest some degree of ICT skill deficiency at the firm level, despite many efforts attempted by the Taiwanese government to develop and supply ICT skills at the national level. A gap between national advancement in technology and firm level of skills deficiency exists. These findings lead to consideration of a better alignment in providing local government support programs to meet MNCs specific skill requirements.

Originality/value – The study provides some insights especially for the emerging economy of China, which tends to heavily impose government intervention in developing strategic industries.

Keeping talents for advancing service firms in Asia

Purpose – Skill shortages worldwide have intensified the need for talent management. Few papers examine the pattern of human resource (HR) and talent management practices that help retain competent employees among service multinational companies (MNCs) in Asia. The purpose of this paper is to map out a number of HR practices used by service companies and to examine the effect of talent retention as perceived by MNC managers on service delivery capacity and business growth.

Design/methodology/approach – A survey data of 281 service MNCs in six Asian countries (namely Indonesia, Malaysia, Philippines, Singapore, Taiwan, and Thailand) are used to compare country and sectoral differences. Standard multiple regression analysis is conducted to test the link between HR practices, employee retention, and service firm performance.

Findings – The results confirm that there are statistically significant linkages between HR practices, talent retention and firm performance. In particular, various skill training and development programs are seen to be significantly associated with capacity to deliver quality service and on firm growth as perceived by managers surveyed. Informal recruitment methods that are used more by Asian-bred firms have contributed to better retention rates. Not all formalised HR practices lead to talent retention; and the degree to which HR is perceived to have impacted on firm performance varies.

Research limitations/implications – The paper focuses on examining the perceptual impacts of human resource management (HRM) practices on firm performance, rather than actual HRM impacts. The interpretation of results should be taken with caution.

Originality/value – Talent management is influenced by country specific variables. This paper shows how important it is for service firms to focus on strategic selection of both formal and informal HR practices in order to deliver high quality service and to drive service firm growth.

Post Asian financial crisis : a survey of Thai hedging practices

This thesis examines how companies in Thailand coped with exchange rate volatility post Asian Financial Crisis. Findings indicate businesses quickly adjusted to the transition from a fixed to floating regime. However, Thai businesses appear to be less rigorous in their internal control of currency hedging activities. The thesis recommends strategies to overcome this risk.