ISSN: 1813-0534






Volume 8 No 3 December edition 2012


Volume 8*Number 3* DECEMBER 2012

ISSN 1813-0534

1. Relationship of Osmosis: Rise of Emirates, The Airline and Dubai, The City

Dr. Achinto Roy, Deakin University, Australia



  A relationship of economic osmosis is noticed between an airline and the country whose flag it flies. Economic impact studies prepared by government organisations and airline managements usually point out the economic benefits of setting up a new airline or flying a new route. These benefits arise for the airline’s home base by way of greater connectivity with the world and include a number of tangibles such as growth in tourism, increase in retail revenue from transit passengers, access to cargo transport for importers and exporters, employment opportunities and a host of indirect benefits that the local populace can gain from exposure to other countries and cultures. One also notices two very important intangibles associated with an airline and the nation of origin- national pride and national security. This paper analyses the remarkable success story of mutual growth shared by Emirates, the airline and Dubai, the city, over the past twenty-five years and the opportunities that the success of this duo signifies for others in the region.


2. Do Managerial Characteristics Promote Export Development? A Case of Manufacturing Small and Medium Enterprises in Indonesia

Rita R. Pidani, Amir Mahmood and Frank Agbola

Newcastle Business School, Faculty of Business and Law

         The University of Newcastle, Australia



This paper examines the extent to which the managerial characteristics of small and medium-sized enterprises (SMEs) in the manufacturing sector impact on export development in Indonesia. Utilising descriptive and inferential statistics techniques, we find that differences exist between exporting and non-exporting firms in relation to the managerial characteristics of education level, foreign language ability and international business experience. The findings indicate that a manager’s educational attainment, foreign language skills, and international business experience have a significant impact on the export development of the firm. The implication of the findings is that the Indonesian government should pursue policies aimed at encouraging training and improving language skills of managers, as well as promoting international business experience of managers, as these policies are capable of enhancing the export competitiveness of manufacturing small and medium enterprises in Indonesia



3. Importance of Total Quality Management and Leadership Communication to Enhance Islamic Quality at Malaysian Civil         Service


Assoc. Prof. Dr. Raja Roslan Raja Abd. Rahman ,Dr. Kalthom Husain,Hassan Adnan,Mohamad Zahir Zainudin,Juan Rizal Sa’ari,Norazlina Mohd.                       Darus,Norwatee Abd. Rahman

Universiti Teknikal Maaysia Melaka,Malaysia



In the leadership communication styles, most of the middle management positions such as managers, assistant managers and those at executives’ level are practicing good leadership communication via enhancing the Islamic quality at Malaysian Public Service. A two-way communication does exist among the staff especially in meetings, discussions and working in team. A good leadership communication among the staff and their involvement are important in Malaysian Civil Service in order to achieve the total quality management objective. Reason being is that the leadership communication is the most important tool and vital part in all organisational operations. Leadership communication could be the basis for understanding, cooperation, teamwork and positive action, which without it such goals would be undermined at Malaysian Civil Service. Two-way communication gives more opportunities to the staff to be involved in discussions and meetings which create the spirit of togetherness in the organisation. The Total Quality Management (TQM) has positively affected job satisfaction, the employees' ability to work together, improve the staff work and builds leadership communication at Malaysian Public Service. Obviously, provide a significance relationship between leadership communication and quality management in Islamic perspectives on job satisfaction among the staff at Malaysian Public Service.

Keywords : Total Quality Management, Leadership, Leadership Communication, Job Satisfaction, Malaysian Public Service.


4. How  Good  Is  Your  Organisational  Knowledge?

Fawzy Soliman,UTS Business School,University of Technology



Knowledge management has been widely recognised as an essential tool in managing organisations. Good knowledge management programs or tools impact positively on the performance of the organisation and therefore, the goodness and usefulness of knowledge management is a competitive advantage. This means organisations must carefully evaluate the knowledge management programs and/or tools. This requires assessment of knowledge itself. In other words good strategies must be based on good knowledge and the inverse is true, i.e. poor or incomplete knowledge could results in poor or defective strategies.

The success of innovative organizations today is often a result of good knowledge and skills applied by their professional and technical employees. Effective management of such a work force has become one of the most critical problems faced by organizations in both the private and public sectors. This should be translated into good assessment and examination of knowledge so that its management can focus on achieving the organizational objectives.

The paper shows that a method for assessing the attributes of knowledge encompasses nine important characteristics of knowledge. The nine characteristics of knowledge are shown to be:

1.Timeliness of knowledge;

2.Currency of knowledge;

3. Relevance of knowledge;

4. Authority for obtaining knowledge;

5. Purpose of knowledge;

6. Importance of knowledge;

7. Accessibility of staff to knowledge;

8. Applicability of knowledge, and

9. Suitability of knowledge to the application.

Keywords: Knowledge Management, Knowledge Characteristics, Assessment of Knowledge.


5. Transferability of Chinese Human Resource Management Practices in Bangladesh: A Case Study


Dr. Md. Khasro Miah, Associate Professor, School of Business, North South University, Dhaka, Bangladesh.

Md. Faisal Ibne Wali, Lecturer, School of Business, North South University, Dhaka, Bangladesh



In this study, we have addressed the key issue of how Chinese multinational corporations (MNCs) operating and dominating Chinese human resource management (HRM) practices in the same cultural setting of Bangladesh. The core finding of this study revealed that in order to encourage and retain talented employees, Chinese MNCs applied home country HRM practices especially “Confucius values,” “Guanxi” through ethnocentric approach to operate business in Bangladesh. In addition, significant differences in HRM practices across studied firms between two countries have been discovered. One of the extensive findings in this case study shows that Chinese MNCs applied conservative HRM practices for Bangladeshis subsidiaries. Finally, this study will assist to understand how Chinese HRM practices can be useful in the Bangladeshi business environment and how Chinese MNCs can help Bangladeshi corporate culture to further develop competitive advantages through effective HRM practices. 


Key Words:  Chinese and Bangladesh HRM practices, Cross-cultural and Convergence-Divergence Issue, Chinese MNCs, Bangladeshi Local firms, Confucius values and Guanxi.


6. The Effects of Atmospherics on Buying Intentions through Retail Benefaction:An Application of Utilitarian Dimensions and the Theory of Planned Behavior to  Patronage Intentions


          Dr.Makarand Upadhyaya, Dr.Ali Medabesh 

Jazan University

Saudi Arabia.



As in physical environments, one of the most important research topics is related to the effects of the characteristics of these new interactive virtual environments on different dimensions of human behaviour. This is particularly relevant in the case of consumer shopping environment in which a service process takes place, has a paramount influence in re-assuring the customer and eventually enabling him or her in comprehending the experiential outcomes of purchase and consumption. The paper investigates the impact of retailscape (retail servicescape) on behavioral intentions of customers in the retail industry. The servicescape framework in this paper is based on selected aspects of Bitner’s (1992) servicescape framework and Wakefield and Blodgett’s (1994) model. Five servicescape dimensions have been identified, viz. ambient conditions, spatial layout, functionality, spatial signs, symbols and artifacts and cleanliness. The paper studies the impact of these dimensions on the perceived quality of the servicescape and on the shoppers’ desire to stay in the retail store. Factor Analysis is performed using SPSS 16. Multiple regression is employed to study the relationship between service dimensions and perceived service quality and perceived service quality and satisfaction and satisfaction and desire to stay. The study strongly supports that spatial layout and ambient conditions bear the strongest relationship with the perceived quality of the servicescape. These two dimensions make statistically unique contribution to the prediction of perceived servicescape quality.

Keywords: servicescape, environmental dimensions, perceived quality, behavioral intentions


7. Measuring and Recognizing the Value of Purchased Goodwill: A Note on Market Value Measurement Method

Indra Abeysekera

University of Wollongong, Australia



Through a review of literature and with conceptual underpinnings, this paper demonstrates that relying on the market value measurement method to ascertain value of purchased goodwill does not contribute to more accurate value of the financial worth of the firm.It argues that the use of market value for the measurement of purchased goodwill for recognition in financial statements is a mere artifact and a response to the contemporary paradigm rather than a measure of the accurate financial worth of purchased goodwill. It demonstrates the need to seek a measurement method that does not impose a transaction as a necessary precondition for ascertaining the financial value of goodwill.

Key words: goodwill, market value, measurement, recognition


8. Political Influence in Management of and Regulation the Financial Sector in Kenya Perspectives from Financial Institution in Kisii County


Dr. Charles Kombo Okioga, Kisii University College,Kenya



The financial system is a nerve centre of economic development of any country. It provides the important service of financial intermediation that largely entails enabling surplus spending units to save and deficit spending units to raise fund for investment and consumption. The financial system comprises of four segments that provide distinct service including banking, insurance, pensions and equity and long term bonds. Each segment is regulated by a statutory body with a mandate to promote orderly growth and development of financial markets. The oversight function of each of the regulator is also focused on identifying and taking measures to mitigate potential weaknesses and downside risks in the relevant financial market segment. Each financial sector regulators collects data and other relevant information to monitor and evaluate performance, soundness and stability of their respective licensees and market segments as well as the overall stability of the system. Politics has an influence on the financial sector legislation on the rules that govern the sector. The study undertook to study the perception of people of Kisii County on the influence of political activities on the financial sector in Kenya

Key words: Finance sector, Executive, Regulation


9. Effect of European Debt Crisis Spillover on Currency Options Pricing

Ariful Hoque, Murdoch University, Australia



Two major currencies, the Australian dollar (AUD) and Japanese yen (JPY), have recently appreciated as concerns around European debt have pushed investors into safe-haven currencies. Speculators have taken advantage of this upward price movement by holding AUD and JPY options contracts. However, such a heavy demand for AUD and JPY options increases the possibility of them being mispriced. Of particular concern are the active foreign exchange (FX) participants who hedge their funds to avoid risks against price changes, for they suffer financial losses when options are mispriced. This study examines the shock of large budget deficits in Europe on AUD and JPY options market efficiency that leads to options price accuracy. In the literature, the no-arbitrage strategy-based put-call parity (PCP) relationship is employed for options pricing analysis. The transaction cost (TC) plays a significant role in the determination of the arbitrage profit amount due to violations of PCP. Since transaction cost estimation is a challenging issue, bid-ask spread is used for the proxy of TC. We develop a new approach to analyse options pricing accuracy based on options moneyness. This approach overcomes the critical TC estimation issue for arbitrage profit opportunity under the PCP test in order to confirm whether options are priced correctly. AUD and JPY options with three of their different strike prices are included as a sample in this study. The regression analysis and Wald test results indicate that, on average, both sample currency options have been priced efficiently during the European debt crisis spillover. The findings of this study are useful for various FX market participants who manage foreseeable financial risks by holding AUD and JPY options contracts.

Keywords: European Budget Deficit, Currency Options, Put-Call Parity, Serial Correlation, ARCH, GARCH, Wald Test


10. Outsourcing Relationships in not–for–Profit Superannuation Funds in Australia: Survey Evidence

Sarath Delpachitra, Flinders University, Australia

Deborah Ralston,Monash University, Melbourne, Australia

Guneratne Wickremasinghe*,Victoria University, Australia



This paper reports the results of a survey on the nature of investment management outsourcing relationships in not-for-profit superannuation funds in Australia. The survey dealt with provider relationships with asset consultants, investment managers and custodians of twenty-six not-for-profit superannuation funds. The results indicate that superannuation funds enjoy strong relationships with their investment outsourcing partners, asset consultants, investment managers and custodians. This is evidenced by relatively high levels of trust, business understanding and the level of commitment between funds and investment outsourcing providers. Further, the survey identified three key attributes that have a major bearing on the success of the relationships between funds and investment outsourcing providers: the length of the relationship, whether the relationship is largely a partnership or it is a transactional relationship and monitoring costs. In terms of overall satisfaction with the relationship, asset consultants are rated most highly followed by custodians and then investment managers.

Key words: Not-for-profit superannuation funds, outsourcing relationships, investment managers, industry funds, asset consultant


11. Impact of Accruals Quality on the Equity Risk Premium in Iran

Mahdi Salehi ,Ferdowsi University of Mashhad, Iran

Mohammad Reza Shoorvarzy and Fatemeh Sepehri, Islamic Azad University, Nyshabour, Iran



Investors believe accrual quality is defined as close of earning to the cash. Therefore, poor quality of accruals causes increased uncertainty of information and it will lead to rise of investment’s risk. Thus, this study investigated relation between accruals quality and equity risk premium according to three potential factors of Fama and French (1993): 1- equity risk premium 2- size 3- rate of book value to market value. Following, 73 companies listed in Tehran Stock Exchange during 2005-2010 for hypothesis testing used time series data and two-stage cross-sectional regressions (2SCAR). The result of the study indicates that there is not significant relationship between accrual quality and equity risk premium.


Keywords: Earning Management, Investment, Accrual Quality, Equity Risk Premium, Discretionary Accrual




12. Emerging Market Mutual Funds: Recent Trends in Performance, Expenses, Composition and Growth


William J. Bertin, Laurie Prather and Li-Anne Woo

Bond University, Gold Coast




  Emerging market mutual funds are a rapidly growing mutual fund category.   This growth is most likely due to their impressive realized returns, although their returns may be quite volatile.  This study reports on emerging market mutual funds’ characteristics and performance relative to domestic and international equity mutual funds and also details the significant growth in these funds.  We further consider the investment allocations of the three categories of funds among developing versus mature markets.  Our results suggest that the superior performance of emerging market mutual funds more than adequately compensates for their higher risk, and thus provides a sound justification for their rapid growth in recent years.

Keywords: mutual fund, emerging markets


13. Current State and Future Prospects of Mobile Money in Somalia: A Structural Equation Modeling Approach


Osman Sayid and Abdelghani Echchabi, International Islamic University Malaysia, Malaysia



The main purpose of this paper is to study the perception and willingness of Somali customers to adopt mobile money, based on an upgraded version of technology acceptance model. The questionnaire used in this study was distributed to 100 Somali customers, and the data gathered were then analysed using multiple regression and one sample t-test. The results indicate that perceived ease of use has a significant positive influence on the perceived usefulness of mobile money. Moreover, perceived usefulness and security were found to have a significant positive influence on attitude. Finally, social influence together with perceived usefulness both have significant positive influence on the Somali customers’ intention to adopt mobile money. This is one of the first studies to be conducted on mobile money in Somalia, the study uses an upgraded version of technology acceptance model and it reports significant findings based on this approach.


14. An Empirical Analysis of Stock Price Synchronicity in Emerging and Developed Economies


Dr Sarod Khandaker, Swinburne University of Technology,Australia



The paper examine the stock markets of 41 countries over a 10 year period from January 1996 to December 2005 using the classical stock synchronicity measure developed by Morck et al. (2000). The study finds evidence that stock markets in emerging economies are more synchronous than in developed financial market. In separate panel data analysis there is evidence that countries with higher stock synchronicity have higher levels of inflation and lower levels of government accountability and corporate transparency. It is also apparent that in civil law countries stock synchronicity is more closely associated with the level of corporate governance than is apparent in common law countries.


15. The Adoption of Discrete Payback of Dividend Reinvestment

 to Shareholders Wealth.


Devinaga Rasiah

Multimedia University (Melaka Campus)




Normally dividend reinvestment plans help shareholders to reinvest variable amounts in a company over the life of a long-term investment. In a reinvestment plan, generally all shareholders can purchase shares or even fractions of shares.  Instead of giving their shareholder quarterly dividends check. This method provides a cost effective way to save our money and to put it to good use rather than spending the money it. Many of these programs allow dividends to be reinvested for no transaction fee and share can be bought at a lower price. The advantages from being offered or enrolled into DRIP (Get more stock than cash) may outweigh its drawbacks. However, it is always best for amateur individual investors to think twice.

Keywords: Dividend Reinvestment, Corporations, investors, risk, dividends.


16. Importance of Internet Financial Reporting Disclosures – Perception of lenders in Malaysia

Ramaiyer Subramanian1, Jayalakshmy Ramachandran2,  David Tong Yoon Kin3

1 Corresponding author, Lecturer, Faculty of Business and Law, Multimedia University, Malaysia

2 Asst. Professor, Nottingham University Business School, Seminyih, Malaysia,

3 Sr.Lecturer, Faculty of Business & Law, Multimedia University, Melaka Campus, Melaka, Malaysia.


Rapid use of technology has prompted companies to disclose financial and non-financial information about companies using internet. While most developed countries have resorted to internet financial reporting, Malaysia is seen to be lagging behind. In its endeavour to be technologically savvy, we contribute by stating that internet financial reporting will be embraced by the stakeholders, especially the lenders. However the acceptability of the information depends upon the quality of information disseminated through the net. While it is accepted that more information could be shared at less costs, lenders seem to be interested in non-conventional value added information. Incidentally, the most important contribution to this research is that lenders are not keen on audit assurance reports as they do not perceive audit assurance reports to be value added in decision making process. This sends an important message to the auditors that lenders are probably losing confidence in audit assurance reports possibly due to the past business failures, where the professional auditors were seen to be complementing the failure process. We strongly recommend that use of professionalism, professional knowledge and diligence in the audit process while bearing in mind that auditors report to the shareholders must be on the top agenda of the auditors to build back the cracking image.



17. An Examination Of Randomness Properties of 3-Digit Fibonacci Numbers Utilizing Traditional Randomness Tests


Fatollah Salimian, Associate Professor,Jerome J. DeRidder, Professor

Franklin P. Perdue School of Business

Salisbury University




A myriad of scientific inquiries use random numbers as the basis or groundwork of their  investigation for seeking information about different subject matters. The results of these studies are expected to be unbiased discoveries or revision of theories or facts. Computer algorithms usually are not capable of generating random numbers. These algorithms generally produce “pseudo random numbers” that almost have all properties of real random numbers. This paper will examine the notion that random numbers used in some research studies may not be truly random. 

We have demonstrated that although Fibonacci numbers are generally regarded as pseudo random numbers, they do not  pass the classical tests of randomness.  It is worthy of note that passing these tests per se, may not be sufficient to ascertain that the generated numbers are in fact random.  To achieve this objective, a set of 1500 three digit numbers of the Fibonacci series were chosen.  These numbers were tested for randomness using One Digit Frequency Test, newly proposed two and Three Digit Frequency Tests, Serial Test, Runs Test, Poker Test, and Significant Serial Correlation Test.

Despite favorable results gained by utilizing these conventional methods, it was found that the generated numbers grossly lack randomness.


18. A Study on the Development of Cloud Database for the Aged People’s Leisure Activities in Taipei City – The Verification of Lifestyles, Demands and Impediments to Leisure Activities


San-Chuan Cheng, Office of Physical Education, Ming Chuan University,Taiwan

     Meng-Yuau Sung, Office of Physical Education, National Chin-Yi University of Technology,Taiwan




Facing the structure of ageing population, it has become a worth-concerning and discussing issue to promote the quality of life and the life quality of metropolitan aged people in Taiwan. Furthermore, Cloud Computing is considered an important development in Information Technology in Taiwan that the verification of the correlations with leisure and the development of relevant leisure indicators also require active exploration. Based on the theoretical structure of Lifestyles, Demands for Leisure Activities, and Impediments to Leisure Activities, statistic analyses are utilized for verifying the correlations among them and for establishing the preliminary model of Cloud Database for middle-aged and aged people’ Leisure Activities. Total 980 senior citizens aged 60 and above in Da-an Park, National Taiwan University track and field, Tien-mu Park, Chiang Kai-Shek Memorial hall, National Dr. Sun Yat-sen memorial Hall, Youth Park, and 228 Peace Memorial Park in Taipei City are selected as the research subjects for questionnaire survey. Having deducted invalid ones, total 637 copies were retrieved, with the retrieval rate 75.2%. The research findings show that Lifestyles would affect Demands for Leisure Activities of the aged people in metropolis Taipei, but negatively affect Impediments to Leisure Activities. In this case, Lifestyles need to be promoted for establishing and developing Cloud Database for senior citizens’ Leisure Activities and the indicators.

Key words: Cloud Database, Internet, Technological Management, Information Technology, Ageing


Taiwan Institute of Business Administration  @ 2008.All Rights Reserved


Journal Cover

ISSN: 1813-0534