ISSN: 1813-0534






Volume 11 No 1 april edition 2015


Volume 11*Number 1* APRIL 2015

ISSN 1813-0534


1.The Impact of Domestic Constraints on Export Behaviour of Small And Medium-Sized Firms in Indonesia

 Rita R. Pidani

Newcastle Business School, Faculty of Business and Law

The University of Newcastle, Singapore

 Amir Mahmood

Newcastle Business School, Faculty of Business and Law

The University of Newcastle, Singapore 

Frank W. Agbola

Newcastle Business School, Faculty of Business and Law

The University of Newcastle, Australia


This paper empirically investigates a domestic business environment and tests its impact on the export behaviour of small and medium-sized enterprises (SMEs) engaged in manufacturing in Indonesia. It is based on a SME survey conducted by the World Bank in 2009 which identified critical domestic business environmental aspects perceived by entrepreneurs such as labour, infrastructure, regulations, economic and market variables. A conceptual framework linking these domestic environment variables to export intensity is developed and tested for statistical magnitude. Results indicate that international shipping, business licensing and permits, access to a pool of skilled labour, access to land use, and access to alternative sources of external finance significantly affect SMEs’ export intensity. Negative relationships between these domestic environment variables and export behaviour demonstrate the need for the government to support efforts to increase the global competitiveness of Indonesian business and create a conducive economic and political environment by improving the supply chain system and infrastructure, transforming the training and education sector to conform with market demand, trimming down licensing procedures and disseminating export procedures and their alterations in order to increase performance of manufacturing SMEs in Indonesia.

Field of Research: export obstacles; domestic business environment; export intensity; small and medium-sized enterprises.


2   Big Data And Business Analytics

    Dr. S. Maheswaran

    Institute of Management Technology

    Nagpur, India


Although data is not new to the organizations, but over the last few years, the volume of data has exploded.  So, there is a strong conviction that over the years, Big Data    will become corporate asset and will be a key differentiator to compete with the competitors.   An attempt is made in this paper to discuss the various aspects of Big Data along with its dimensions volume, variety, velocity and veracity. As Business Analytics focuses more on analyzing the Big Data and making business decisions, several aspects of business analytics which includes Descriptive, Predictive and Prescriptive analytics and the complete Business analytics process are discussed along with stating few applications of the same.

Key Words: Big Data, Structured/Unstructured data, Business Analytics Process & Descriptive/Predictive/Prescriptive Analytics.


3.          CIA Occur During Financial Turbulence?


Ariful Hoque, Murdoch University, Australia

Kamrul Hassan, Murdoch University, Australia

Chandrasekhar Krishnamurti, University of Southern Queensland, Australia


This study exploits the covered interest arbitrage (CIA) possibility when the European market experienced the financial crisis. The deviation of covered interest parity (CIP) test is conducted for the major currencies against Euro. We find the CIA opportunity appear for Australian dollar (AUD), Canadian dollar (CAD) and Japanese yen (JPY) in the volatile European financial crisis market. However, the CIA possibility does not exist for the British pound (GBP) and U.S. dollar (USD) during the European financial turbulence. The findings of this study show that the currency market participants, particularly, the arbitragers can make profit using in the major currency market other than GBP and USD when the financial turbulence is occurred in the Euro zone. It indicates that the GBP and USD behave as stable currency in the context of CIA possibility during the financial market disaster.


4. Financial Determinants of Organizational Culture

Susan. Flaherty, Associate. Prof. of Finance, Towson University

Daniel Singer, Prof. of Finance, Towson University


 While organizational culture may be seen as a response to both external forces and internal organizational attributes, this paper examines the impact of the organization’s financial characteristics on the values, norms and behaviors within the organization.  It is found that organizational culture, at least partially, represents an adaptation to the financial structure of the organization.  In particular, the cultural characteristics of an organization that encourage or inhibit organizational learning are found to be sensitive to the level of debt and operational cash flows within the organization.  Debt and a paucity of cash flow are seen to encourage authoritarian cultures which allow for little individual discretion on the part of employees, the effect of which is to inhibit organizational learning.  In contrast, a strong balance sheet and a relatively ample cash flow are found to encourage positive organizational behaviors that encourage organizational learning.


5. Revisit Intentions of Malaysian Consumers to Heritage Sites

 Dr Sujana Adapa, University of New England, Australia

Professor Tommi Laukkanen, University of Eastern Finland, Finland


 This research paper sets out to explore the revisit intentions of consumers to identified heritage sites in Malaysia. Destination, visitation and revisitation research has attracted considerable attention over the past two decades. However, existing research seems to be limited in respect of consumers’ intentions to visit heritage sites as a preferred destination choice. The present research sets out to fill this significant gap in relevant literature by testing the relationship between the two most important constructs of customer satisfaction and customer revisitation intentions manifest in the frequency of visits made by Malaysian consumers to heritage sites. A survey was conducted at prominent tourist and heritage sites in Kuala Lumpur, Malaysia. Data obtained from 214 self-administered questionnaires (cross-sectional surveys) was used for further analysis. Confirmatory factor analysis was used to validate customer satisfaction and consumers’ revisit intentions. A structural model was built with the overall sample and, finally, the moderation effect of gender was tested using multigroup moderation analysis with pairwise tests of path coefficients. The results suggest that gender seems to have an impact upon the respondents’ revisit intentions to heritage sites in Malaysia. For example, the frequency of visits has a highly significant positive effect on revisitation intention for men and the same constructs showed a reverse trend in case of women.


6. Impact of Critical Factors Related to Consumers’ Attitude Towards Mobile Advertising And Its Impact on Purchase Intention

Mohd Nazri Mohd Noor

Faculty of Business Management, Universiti Teknologi MARA Pahang Campus, 26400, Pahang, Malaysia

Sreenivasan Jayashree

Faculty of Management, Multimedia University Cyberjaya Campus, 63100, Selangor, Malaysia


This study examined the determinants of consumers’ attitude with respect to mobile advertising and its influence on purchase intention in Malaysia. The authors proposed the conceptual model based on the Theory of Planned Behavior, The Advertising Value Model and The Integrated Marketing Communication. The conceptual model was tested using data collected among mobile phone users throughout Malaysia. The results showed significant relationships between the proposed predictors and the attitude towards mobile advertising. The findings illustrate the importance of recognizing the determinants and the obstacle to the consumers’ attitude. They included the dimension of entertainment, informativeness, credibility, irritation and integrativeness. Also, there was a positive relationship between attitude towards mobile advertising and consumers’ intention to purchase products and services. This paper adds to the growing literature on the mobile advertising research in Malaysia by specifically looking at the consumers’ attitude. The study reveals several implications for theory and practice relating to the future development of the mobile advertising industry in this country.

Keywords: consumers’ attitude towards mobile advertising; entertainment; informativeness; credibility; irritation; integrativeness and purchase intention


7. Goal Progress, Goal Commitment and Goal Inconsistent Behaviour: Effect Revisited

Anirban Som, Indian Institute of Management, Trichy, India


The current study aims to revisit the findings of Fishbach & Dhar (2005) (Study 3) with an improved method in an Indian context. The findings of Fishbach & Dhar (2005) indicate that individuals primed with goal progress tend to deviate from their goals whereas individuals primed with goal commitment tend to remain focused on their goal. The findings of the current study, done with a much larger sample as compared to the original study, demonstrate that the effects shown in Fishbach & Dhar (2005) are not replicable. A meta-analytic review comparing the effect sizes of the original paper with that of the current paper based on the procedure suggested in Charke & Muthukrishnan (2013) shows that the difference in findings between the original paper and that of the current paper cannot be attributed to differences in the nature of the samples or to differences in methods of data collection.


8. Building Product Awareness And Distribution Channels in Crowded Markets: An Analysis of Craft Breweries in The USA.

Dr Alison Dunn and Dr Mark Wickham, University of Tasmania



Exploratory research was conducted on craft breweries in California to explore how small businesses build product awareness and distribution channels for their niche products in a highly crowded market context. This research focused on the supply-side perspective of craft brewers, which was explored through in-depth interviews. It was found that to overcome the market control exercised by ‘mega-brewers’ in the industry, craft breweries adopted a strategy of fostering a ‘craft beer culture’ that connected directly to consumers (via brewery visits, beer events and social media). The paper adds to our understanding of the synergistic relationship that can exist between small business operations and tourism practices. It finds that it is advantageous for certain small businesses to adopt tourism practices in order for them to differentiate themselves positively against their competition.

Key words: Craft breweries, crowded markets, beer culture, product awareness, distribution.


9. Sustainability Reporting Framework for Indian Chemical Industry- A Simplified Approach Surveyed through Industry Participants

Pradip Kumar Mitra, Assistant Professor, V.E.S. Institute of Management and Research, Mumbai, India.

Dr.Vijay Agrawal, Associate Professor, Birla Institute of Technology, Mesra, India.

Dr. Aurobindo Ghosh, Professor, ICFAI University, Vadodara, India. 


This research is an attempt to articulate the relationship of different aspects of sustainability reporting for Indian chemical industry. This conceptual framework tries to establish the relationships between four major areas of sustainability reporting. First it tries to find the general factors and the sub factors on which sustainability performance needs to be reported followed by three major issues of reporting viz. the process of creating assurance among stakeholders through good and effective sustainability reporting, finding the different problems of reporting and  identifying the steps for effective implementation. The survey was carried out in two major chemical producing states Gujarat and Maharashtra in India. This survey through questionnaire was conducted among the industry participants in some major chemical clusters of these states. Confirmatory factor analysis is carried out to validate the relationship of the variables using structural equation modelling which strongly validates the construct.


10. Exploring The Impact of Human Resource Management Practices on Innovation Capability in Algerian SMEs

Zouied zohra

economic & management faculty, Badji Mokhtar University
University of Badji Mokhtar Bp 12, Annaba,23000, Algeria.


 This paper was aimed to investigate the impact of HRM practices on innovation capability and this study uses regression analysis to test the hypotheses in a sample of 357 Algerian SMEs in 12 sectors.  According to the existing literature, innovation capability is an important strategy that will help firms having more competitive advantages. In this paper, four dimensions of HRM practices (recruitment, training, career development, performance appraisal) were chosen as best practices in Algerian SMEs. The results confirm the theoretical prediction that HRM practices can indeed be a valuable resource for firms that wish to innovate.

 Keywords: Innovation capability, HRM practices, training, career development, performance appraisal, Algerian SMEs.


11. Measuring e-CRM Implementation and Readiness among Employees in The Jordanian Bank Industry

Dr. Salem A .S. AL-Rahimy, Dean of Administrative and Financial Sciences faculty /Irbid National University-Jordan

 Dr. Mohammad I. S. Al-Zoubi, Head of MIS Department/ Irbid National University-Jordan.


In the developing countries, researching about banking industry implantation reflected to organization and individual are needed due to obtaining better and bridge the gap. In addition, previous empirical studies that conducted on e-CRM have shown low adoption rate in Jordanian banking industry. This Research has attempted to identify the technological factors and organizational culture readiness that drive employees in the Jordanian Banks Industry. A number of 113 employees currently working at Jordanian Bank were selected to be the sample for this study. Questionnaire was employed as the data collection approach for the present study. The findings indicate that technology and organizational culture readiness were the most significant factor influencing e-CRM implementation. The relationships between factors were also analyzed and some recommendations were proposed to address the current situation.


12. CEO Pay, Governance And Performance: An Empirical Study of Australian Firms

Subba Reddy Yarram, UNE Business School, University of New England, Australia


The present study analyses the relationships between corporate governance, CEO pay and the performance of corporate firms in Australia. Following J. E. Core, Holthausen, and Larcker (1999), this study analyses the role of corporate governance in executive pay design and the alignment of incentives of top management with that of shareholders. The sample consists of 1945 non-financial firm-years for the period 2005 to 2011. The average total compensation of CEOs of the sample firms stood at $1.44 million and in the wake of the Global Financial Crisis (GFC), the growth rate in average compensation declined in 2008 and 2009 before recovering in 2010. Findings show that CEOs earn greater compensation in firms with governance structures characterized by large boards, with relatively higher degree of interlocking and longer tenures of directors and the CEO. Analysis of the influence of governance related compensation on performance using OLS and Fixed Effects regressions show that governance related additional compensation has a significant negative influence on the market-based performance measure while it has no significant influence on accounting profitability. Thus the results do not find support for the view that governance factors matter in executive pay.

Key Words: CEO compensation, Corporate governance, Financial performance

JEL Classification: G30, G32


13. Entrepreneurship, Small, And Medium Enterprises, And Business Productivity

 (Theoritical Background and Discussion)

Irham Zaki

Faculty of Economic and Business, Airlangga University

Surabaya, Indonesia

Prof. Dr. Anis Eliyana, SE, M.Si.

Faculty of Economic and Business, Airlangga University

 Surabaya, Indonesia


Entrepreneurship is closely related to the SMEs (Small and Medium Enterprises). Both hold a central  role for the progress and welfare of the world, and even they become the mother of economic development. This can be seen, for example, from the US  economy during the year of 1970’s  when undergoing the stagflation, then able to stand-up again with the emerging of so many new small enterprises capable of solving the unemployment problems. The emerge of these new enterprises was initiated by those having the entrepreneurship spirit.

David McClelland (1978) stated that a country was called prosperous if it had entrepreneurs at least 2% of the number of its population. In reality, however, the number of entrepreneurs in Indonesia  is still very small. Out of 248 million of its people, only 3.97 million or 1.56% operate in entrepreneurship. Therefore, Indonesia still needs to have the growth of new entrepreneurs. ( /30/189323/).

It can be stated that  there is a very close relation between SMEs and entrepreneurship, and even  sometimes it is not distinguished between both of them. This paper tries to explore existence of entrepreneurship, SMEs and their roles in improving the business productivity.


14. Ethics Challenges to Business: A Case of Tobacco Industry

So-Ling Chau, Hang Seng Management College, Hong Kong



The business world becomes more sophisticated and there are a growing number of complex business issues that may impose constraints or limitations on company operations. Along with these complexities, societies are getting more affluent and therefore companies are offering a wider variety of products in the global market. Particular challenges are imposed on pleasing products, which provide short-term and high immediate customer satisfaction and likely cause harm in the long-term. Such harm has been drawing people’s attention to control or restrict the business activities of this kind of products. Companies selling products such as alcohol, ultra-processed food and drink, unhealthy commodities and tobacco are therefore the targets. Using tobacco companies as an illustration on socially controversial products and ethical business decisions, this paper begin with the challenges faced by tobacco companies, which is followed by a discussion on their stakeholders’ interests, key ethics issues concerned, marketing strategies adopted and finally, a conclusion is drawn.   -----------------------------------------------------------------------------------------------------------------------

15.       Information Systems Security Practices in South African Small And Medium Enterprises (SME’s)


Kishore Singh, Griffith University, Australia


Information systems security is rapidly becoming a growing concern for businesses of all sizes. As security threats and incidents become more pervasive and the legal and business stakes for information security increases, understanding an organization's information security practices becomes essential in the security planning and development process. The purpose of this article is to describe the effectiveness of information systems security practices in small and medium enterprises. To date there is no quantitative or qualitative data within the extant literature describing the state of information systems security practices in small businesses. The data that exists has been produced by commercial organizations with business interests in information systems security consulting or services, such as Deloitte & Touche and Ernst & Young, and by organisations with charter responsibilities in the information security and technology arena, such as the Computer Security Institute. The aim of this study is to contribute to the theoretical understanding of how information systems security should be pursued in small businesses and to provide evidence to assist in the development of policies, programs, and technology in support of information systems security goals in small businesses.


Information systems security, small businesses, security investment, security management


16. Measuring The Impact of Formal Education on Organizational Citizenship Behavior

Dr. Jagannath Mohanty

Institute of Management Technology, Nagpur, India


Literature developed over the last few decades on Organizational Citizenship Behavior (OCB) has primarily focused individual impact on OCBs. Most studies have indicated a definite relationship between OCBs and some individual factors like commitment, loyalty, mood, personality amongst others leading to a ‘good soldier syndrome’.  A question that remains little explored is the impact of education on discretionary behaviors. Since formal education and training consumes a bulk of human life span, assumingly it ought to influence the individual and firm behaviors. Though most studies indicate positive impact of voluntary workplace behavior on organization but there is very little evidence of ways in which education impacts voluntary behaviors. This study aims at correlating and measuring the impact of formal education on OCBs with a broad assumption that higher the education higher will be the discretionary workplace behaviors.


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ISSN: 1813-0534