ISSN: 1813-0534






Volume 9 No 3 December edition 2013


Volume 9*Number 3* DECEMBER 2013

ISSN 1813-0534

1. Trade between Australia And South Asia: Prospects for A Bilateral Free Trade Agreement

Mahinda Siriwardana,UNE Business School, University of New England, Armidale, Australia

Disna Sajeewani,School of Economics, University of Wollongong, Wollongong, Australia


South Asia consists of seven economies (India, Sri Lanka, Pakistan, Bangladesh, the Maldives,Nepal and Bhutan) that have been recognised as the South Asian Association for Regional Cooperation(SAARC) in terms of their attempt to enhance trade and investment. Australia has been given the observer status in SAARC. Australia has experienced a significant growth in trade with South Asia in recent years. For example, India has become the 4th largest export destination for Australia in 2009. An FTA between Australia and SAARC countries would enable both Australia and South Asia to strengthen further this trade and to benefit by taking full advantage of each other’s relative competitive strength. This can be achieved by removing barriers to trade and investment on a bilateral basis whichimpose additional costs to producers and consumers. In this paper we analyse the prospects for forming an FTA between Australia and SAARC countries. We use the Global Trade Analysis Project (GTAP) model to evaluate benefits and costs for both parties of an FTA. While the analysis mainly focuses on macroeconomic and sectoral performance under an FTA, it also highlights the potential welfare gains,trade creation and trade diversion issues that are important to policy makers.

Keywords:South Asia; SAARC countries; GTAP Model; Free trade Agreement; Australia

2. The Carbon Tax in Australia: Impacts on Income Distribution,

Employment and Competitiveness

Dr Mohammad Mafizur Rahman, School of Accounting, Economics and Finance,Faculty of Business and Law University of Southern Queensland,Australia



The carbon tax in Australia, which is implemented from 1 July 2012, has become a controversial issue to the policy makers and people regarding its potential effects on the economy and society.

Therefore, this paper analyses the various effects of the carbon tax with particular attention to Australian income distribution, employment and international competitiveness.

The carbon tax will increase the inequality between the poor and the rich, as the poor will be adversely affected because of increased price of almost all essential items even in the presence of the government support program; regional disparity is also likely to increase. Employment will be reduced especially in coal, mining, steel, automotive and other manufacturing industries which will

cause the shrinkage of GDP. The international competitiveness of Australian industries will also be reduced, as these industries will suffer because of higher production cost compared to foreign

competitors. Some policy options such as reduction of goods and services tax (GST), a tax free allowance for essential use of energy, a lower carbon tax rate, border tax adjustments, permanent financial support to the poor may be considered to reduce the regressive effects.


3. An Institution Based Insight into India’s Tea Industry

Dr. Achinto Roy, Deakin University, Australia


India is the world’s largest consumer and producer of black tea and has been at the forefront of the global tea industry since the nineteenth century. This could not have happened without institutions playing a pioneering role in the creation, nurturing and growth of India’s tea industry. This paper analyses India’s 4 billion dollar tea industry and the institutional factors that helped shape it. The work is based on existing literature and field work undertaken by the author in the Eastern and Southern regions of India.


4. Compassion in Organizations: Cause for Concern or Distress

Katherine Train,Kurt April

Graduate School of Business, University of Cape Town,South Africa


Compassion in organizations is researched as a three-stage interrelated process of noticing another’s pain, empathic concern or feeling another’s pain, and taking action to relieve all, or some, of their suffering. Current organizational compassion theory identifies agent capacities of emotional flexibility and agent diversity in the form of cognitive, affective and resource diversity as essential to compassionate acts in organizations. However, the sustained need to remain empathic for others in caring organizations, such as healthcare and social services, and in socio-economic contexts where suffering is endemic, may lead to empathic distress, and a need to express self-oriented actions. These experiences have an effect on both cognitive and affective processing.This paper advances a model of empathy according to Enaction, a dynamical systems approach to embodied cognition. It aims to illustrate the unpredictable and non-linear, dynamical nature of the empathic process. It highlights the contribution of self-awareness, based on embodiment and active sensing, in enhancing the recursive,intrapersonal processing of somatic, cognitive and affective factors. This is deemed to be essential to perspective-taking, thus encouraging empathic concern rather than empathic distress.

Keywords: Organizational compassion, empathy, empathic concern, empathic distress, enaction, embodiment


5. Business Excellence and Business Innovation: Are The Two Competing or Overlapping Cultures?

Fawzy Soliman,UTS Business School,University of Technology, Sydney,Australia


The current legitimate debate about business excellence and innovation is that both share similar objectives. For example, business excellence aims are to ultimately improve the financial standing and performance of the firm. This is usually being achieved by implementation of quality improvement programs that would ultimately result in increase in sales volumes and of course revenue.

On the other hand innovation overall objective is also to improve the performance of the innovative firm and improve its financial position by creating new products or services or even new innovative strategies and or policies and procedures that will ultimately result in increasing sale and of course revenues.

Although there are many overlapping issues between the two cultures, business excellence and innovation differ significantly in many aspects. This paper will examine the business excellence and innovation cultures and will present a model for differentiation between the various aspects of the two cultures.

The paper will also examine the key issues forinnovation that could lead to growth opportunities in shrinking markets. The relationship between the four key strategy perspectives namely, industry based, resources based, institution based and innovation based perspectives will also be examined.

The paper will present a set of overlapping cultural factors between business excellence and innovation that could play key role in value creation in turbulent globalized environments.

Keywords: Innovation management, Business excellence, overlapping cultural factors.


6. Key Determinants for Successful Inter-Firm Collaboration in China

Yu Zhang and Charles Harvie, School of Economics, University of Wollongong, Australia


Inter-firm collaboration has become increasingly important in the global economy. Firms increasingly rely on collaborations to access new resources, new technology, skills, the latest market information, new markets and knowledge, and also to increase innovation, reduce costs and remain competitive in domestic and international markets. The motivation of this paper is to analyze the importance of collaboration as a business competitiveness strategy and to identify key factors enhancing its likelihood of success in the Chinese market for both domestic and foreign owned firms operating in China. This study will shed light on how collaboration can be used by foreign firms or Chinese firms to increase their likelihood of success and the factors most likely to lead to success. Firms operating in the telecommunications and related industries are the focus of this study, as this sector is a good microcosm of the overall Chinese economy, due to the rapidly changing and dynamic nature of this sector. Our results show that firm size, trust and quality of communication play a significant role in the success of Chinese business collaborations. Bigger firms in China tend to have more successful collaborations in China, but this result does not hold for foreign firms in China. To collaborate successfully with Chinese firms, foreign firms also need to learn and adopt the different communication platforms in China and understand the different needs from different sized partners in China.


7. An Assessment of Human Resource Development (HRD) Initiatives in

An Emerging Economy

Mohammad Mohiuddin Ahmed, Standard Chartered Bank, Bangladesh

Zahir Uddin Ahmed, Auckland University of Technology, New Zealand

Tanzina Haque, University of Dhaka, Bangladesh


The study first examines current status of Human Resource Development (HRD) in an emerging economy, Bangladesh, and then identifies the barriers to develop the human resources. Both the primary and secondary data have been taken into consideration to analyze the development position of human resources. It is argued that if appropriate action is taken to develop the human resources, it will improve the productivity and profit of the organization as well as the economic condition of

Bangladesh. The study concludes with some suggested actions which should be implemented by governments, Non-governmental organizations (NGOs) and the private sectors as an integrated effort.


8. The Mediating Effect of Internal Service Quality on Employee

Turnover – Empirical Evidence from Taiwanese Nurses

Jia-Yi Hung, Tzu Chi College of Technology, Taiwan

Ho Yin Wong, Deakin University, Australia

Yu-Li Lan*, Tzu Chi College of Technology, Taiwan

*Corresponding author, email:


The purpose of this paper is to empirically test the mediating effect of internal service quality (ISQ) on employee turnover of nurses in Taiwan. The main purpose of ISQ is to treat employees as internal customers to satisfy their needs. Consequently, they will deliver the expected products and services to external customers such as patients. While various studies have examined ISQ, research gaps exist in understanding its antecedents and consequence, especially in the nursing industry. A questionnaire survey with 241 samples was gathered from five hospitals in eastern Taiwan. Structural equation modeling SEM) analysis was performed to test the theoretical model that consists of ISQ, leader-member

exchange (LMX), Co-worker interaction, work atmosphere, and employee turnover. All major fit indices from SEM analysis indicate satisfactory results for both the measurement and structural models. The major contribution is the establishment of the mediating effect of ISQ on employee turnover. ISQ and LMX have direct impacts on employee turnover, while co-worker interaction and work atmosphere have only indirect impacts. To reduce employee turnover, management needs to put in effort on LMX. With greater level LMX, they can expect better co-worker interaction, work atmosphere and ISQ.


9. Facebook:Where Is The Dislike Button?

Ranajee, Research Scholar (Finance), ICFAI Business School, Hyderabad, India

Sudeepta Pradhan, Research Scholar (Marketing & Strategy), ICFAI Business School, Hyderabad,India

Dr. K. S. VenugopalRao , Area Coordinator (Marketing and Strategy), IFHE Hyderabad, India


When Facebook went public at a value of $104billion, which was the second-biggest IPO in history, shares were valued at $38 each. Given the high expectations and hype, the “so-called retail investors” made attempts to purchase the stock. The IPO was the second-largest for a U.S. company and the market expectations for the IPO were disastrous. Though the stock regained its initial price

after a long span of 14 months, there are still several questions that remain regarding the pricing of the social network. The company’s revenues have grown by over 53 percent over the past year. Mobile advertising also accounts for a large portion of the company’s ad revenues. Given the recent rise in stock prices, the company’s market value went up to $100 billion. The case makes an attempt to

summarize the happenings at Facebook since its IPO and discuss the validity of its pricing.

"Facebook Inc.’s IPO debacle is not responsible for global warming or not a sign of the apocalypse.It isn’t the “stock story that changes everything,” the “trigger to the final fall of the American empire” or any of the rest of the hyperbole applied to it by bloggers and pundits fawning over the story. "-BOSTON (MarketWatch)

"I think there are some things in life that if you believe that it's such a big problem, you just stick your neck out and try to do it. A lot of people think it's going to be really challenging to connect 5 billion people, too. It is, but I think it's one of the big problems of my generation1."-Zuckerberg2 in an interview with CNN


10. Software-based Solutions for Implementing Green IT

Bhavik K Pathak,Indiana University South Bend,USA


Environment management has become an integrated part of the corporate social responsibility (CSR).  Enterprises that address environmental issues in their products and services are more likely to gain a sustainable competitive advantage by becoming the benchmark in compliance, reducing energy costs, and leveraging enhanced brand equity.  The impact of various air and chemical pollutants on the   environment is well-known and effective legal and procedural frameworks as well  as technical solutions have been developed to manage such adverse implications.  With more than one billion computers in use in the world and increasing popularity of data centers, the environmental impact of the information technology (IT) has become one of the growing areas of concern. A recent report from the US department of energy (DOE) shows that a typical data center consumes up to 100 times more energy than an average office building and the consumption of energy in data centers has doubled from 2000 to 2006. More importantly, the environmental impact of the information technologies is not only limited to the usage of IT but also spread across different stages of IT product life cycle. Leading research firms like Gartner and ICT estimates that the designing, utilizing, and disposing of the IT products accounts for 2% of global CO2 emissions, a number equivalent to the aviation industry. Rising energy costs and growing environmental awareness have made companies more active managing their IT assets in an environment friendly manner and the phenomenon of green computing or green IT is becoming an integral part of the enterprise’s IT strategy.

The study and practice of designing, utilizing, and disposing of IT products effectively and efficiently with minimal or no impact on the environment is known as Green IT (Murugesan 2007). Such environmentally friendly IT practices help organizations in advancing their business-oriented goals (Mann, Grant et al. 2009). Alternatively, Gartner defines Green IT as the ‘optimal use of information and communication technology (ICT) for managing the environmental sustainability of enterprise operations and the supply chain, as well as that of its products, services, and resources, through their lifecycles.’ Prior researchers have discussed general green IT related strategies and solutions including data center reconfiguration, energy saving computers and techniques, virtualization, thin client computers, software as service (SAAS),  and effective recycling practices (Mann, Grant et al. 2009). Grid technology which provides high computing power by integrating existing IT infrastructure into a grid without requiring any additional investment in new hardware is also an effective practice to reduce the carbon footprint  of IT(Foster 2002; Vykoukal, Wolf et al. 2009). Server consolidation, green procurement policies, and flexible telecommuting have also been discussed as effective practices for facilitating Green IT practices in organizations (Sayeed and Gill 2009).

Although much prior research has focused on a wide spectrum of solutions and strategies for green IT, researchers have hardly focused on the software-based solutions for the effective implementation of green IT.  Various software solutions for green IT exist for assuring green IT operations (design and development of,  procurement, utilization, and disposal of IT products), reporting green KPIs, and providing utility services. Focused discussion on the green software development as well as various software applications for implementing green IT is essential given the increasing reliance of the majority of products ranging from books to automobiles on software. To address this gap, I conducted a study to explore and analyze the software-based solutions for implementing green IT operations, reporting, and utilities. This paper also provides guidelines for further development in this field.


11. Weighted Penalty Cost Approach to Solving Priority Structure Goal Programming


  Viswanathan.P.K., Great Lakes Institute of Management, Chennai, India

Balasubramanian.G, Institute for Financial Management and Research,Chennai, India


Multi-Criteria Decision Aid [MCDA] framework is increasingly applied in a number of applications that include supply chain optimization, product-mix decisions involving multiple goals, construction of optimum mutual fund portfolios, and product design. Multiple-objective Linear Programming [MOLP], known by the term “Goal Programming” [GP], a model to implement MCDA, is used to obtain a solution that satisfies management’s multiple and conflicting goals, which are prioritized through ordinal ranking and assignment of differential weights for sub-goals. There are different ways of solving priority structure goal-programming models. The conventional way is to solve a sequence of Linear Programming [LP] problems that tends to get tedious in getting the solution as well as performing sensitivity analysis. This paper focuses on a weighted penalty cost approach [WPCA] that is much simpler to use in solving priority goal programming problems. In addition, WPCA gives an opportunity to perform sensitivity analysis with ease for management decision support in the context of priority goals.  

Keywords: Multi-Criteria Decision Aid, Multiple-Objective Linear Programming, Goal Programming, Optimization, Priority Structure Goal Programming, Shadow Prices, Trade-Off Curves, Decision Support Systems


12. Management Competencies in Exporting Organisations:

An Analysis of The Manufacturing Sector

Jayanty Kuppusamy,Faculty of Business,, Multimedia University (Malacca Campus), Malacca, Malaysia,

R.N. Anantharaman,Faculty of Business,, Multimedia University (Malacca Campus), Malacca, Malaysia, r.n.


Organisations face a lot of challenges in managing their business. This is partly due to intense competition and operating in a dynamic business environment. In order to survive in such a business landscape, competencies are necessary to achieve successful performance. With more organisations moving towards exporting, this research is aimed to study management competencies in terms of their relationship with export performance and export development. The respondents in the present study included 212 executives working in various exporting organisations in Malaysia. It was found that competencies like commitment and planning, information management and employees’ skills management have significant positive relationship with export performance and export development.

Key words: Management competencies, export performance, export development, exporting organisations.


13. Consumer Preference and Effectiveness of OOH (Out of Home) Media In India

Swaminathan .T.N. , Great Lakes Institute of Management, Chennai, India

Viswanathan.P.K., Great Lakes Institute of Management, Chennai, India

Niyati Mehta , Great Lakes Institute of Management, Chennai, India


Marketing communication is the channel through which organizations inform, persuade, and remind consumers about their products and services. Marketing communication makes a substantial   contribution towards brand equity. It achieves this goal by creating a brand image and establishing a memory in consumer’s mind. The positive consequence of this is increase in sales and shareholders value.  There are several modes of marketing communication that the  legendary marketing Guru Philip Kotler discusses in his classic book on Marketing Management.  The Purpose of this paper is to understand consumer preference for outdoor advertising and alongside to capture OOH media format and factors that impact the effectiveness of OOH.

Through a comprehensive empirical research, this study proves th following hypotheses with regard to OOH media.

1.That Location of a billboard impacts its effectiveness.

2.That stationary billboards are more attractive than  mobile ones.

3.Consumers need not necessarily give more attention to outdoor media when they are at leisure.



14. Indicators That Influenced Marketing Ethics among The Academicians

Assoc. Prof. Dr. Raja Roslan Raja Abd. Rahman,

Technical University of Melaka Malaysia (UTeM)

Mohd Amin Ahmad, Norazlina Mohd Darus (PhD. Student)

MARA University of Technology Malaysia(



The main purpose of this research is to determine the indicators that influenced the academicians marketing ethics. Marketing ethics is about moral evaluations of decisions and actions as right or wrong on the basis of commonly accepted principles of behavior in marketing. A survey of academicians was conducted to determine the Indicators that are related to the academicians’ marketing ethics using these dimensions: Collectivism, Uncertainty Avoidance, Power Distance and Professional Values. From 150 questionnaires distributed to the academicians in Public University in Malaysia, 124 respondents were collected. Data were analyzed using several methods such as descriptive statistics, t-test, correlation, regression and one way Anova. The findings showed that Power Distance and Professional Values were the Indicators that influence academicians’ marketing ethics. Further analysis showed that demographic Indicators such as age, gender, years of working experience, academic qualification do not have any influence on academicians’ marketing ethics. Since the result of the study showed that Power Distance and Professional Values are the main Indicators that influence the marketing ethics of academicians, the management of the college would perhaps look into methods and ways of cultivating the professionalism among academicians in order for them to possess a good marketing ethics.

Keywords :  Indicators, Influenced, Marketing Ethics, Training, Continuing Education Academicians.


15. Temporal Causality in Purchasing Power Parity Relationship: Evidence from Australia

Kamrul Hassan and Ariful Hoque, Murdoch University, Australia


Studies to date have not yet been able to resolve the issue of the purchasing power parity (PPP) relationship in Australia. There have been mixed results regarding the validity of the PPP relationship. Moreover, the causality issue between exchange rate and relative prices has not been investigated in previous studies in the context of Australia. Using quarterly data from 1984:Q1 to 2012:Q4, this paper examines three issues: (i) the co-integration between the exchange rate and relative prices, (ii) causality between the exchange rate and relative prices, and (iii) the time-varying property of the co-integrating vector. A log of the nominal exchange rate between Australia and the United States (AUD/USD) and a log of the ratio of the consumer price indices (CPIs) of the two countries were found to be co-integrated in the long run, which supports long-run PPP. Causality tests indicate that there is a causal effect of relative prices on the exchange rate in the long run. A time-varying co-integration analysis indicates that the co-integrating vector is not time-invariant and that the source of this invariant nature of the co-integrating vector seems to come from the coefficients of relative prices. The policy implication of these findings is that no policy intervention is needed to maintain the sustainability of external balance.


16. Cross Section Pooling As against Time Series Pooling In Market Analysis

Dr. Nagasimha Balakrishna Kanagal, Indian Institute of Management Bangalore, India


Market analysis essential for strategising market activity involves determination of optimal market response coefficients to marketing mix variables. Market response understanding is usually obtained from market research through surveys and panels.  Pooling is a method of combining the advantages of surveys and panels, by combining several cross sections of time series variables (PCSTS). In the event of homogeneity hypothesis to be rejected and PCSTS not being  considered appropriate, it is useful to check if the data of pooled time sections of cross sectional variables (or PTSCS) would permit pooling to be conducted and if so the procedures for pooling of data. Longitudinal data set of cigarette market in 46 U.S. states over the period 1980-1992, has been taken from the panel data source and subjected to the procedures for cross-section pooling. The pooling can be done by natural dummy variables such as the consumer price index (CPI). In this case the natural dummies act as fixed intercepts and output the sensitivities of the market to this natural dummy. It is inferred that PTSCS or cross-section pooling could be a valuable method to uncover market response estimates when PCSTS data estimation get invalidated due to failure of the homogeneity assumption.

Keywords: pooled time series cross section (PTSCS), pooled cross section time series (PCSTS), cross section pooling, natural dummy.

17. Educators, Students and Regulators Perception of Shariah Governance Education – Empirical Evidence from Malaysia

Jayalakshmy Ramachandran, Asst. Professor, Nottingham University Business School, Seminyih, Malaysia

Ramaiyer Subramanian ,Lecturer, Faculty of Business and Law, Multimedia University, Malaysia


In this century, the petro dollar plays a vital role which enriches some countries, most of which follow the Islamic principles. Shariah accounting and Shariah governance are thus given prime importance in all Islamic countries. ‘Shariah’ is a word that describes the activities within the bounds of Islam. Islamic finance industries and other industries which follow Shariah compliance are coming to the mainstream instead of niche sectors. Proponents of Shariah compliance are urging corporates to provide appropriate information to stakeholders on the extent of Shariah compliance. Malaysia being one of the proponents of Shariah, one of their goals of ‘Vision 2020’ is to become the hub for Islamic finance. Along the way the vigor instilled can be witnessed as 85% of the companies listed in Malaysian stock Exchange (Bursa Malaysia) are Shariah compliant. While efforts are being made to achieve this goal, it is felt that education could play a value added role. Most Universities are beginning to offer courses on Islamic finance. This research attempts to identify the extent to which inclusion of Shariah governance along- side other Islamic and other non-Islamic studies would nurture the future generation and thus benefit the economy. Perceptions of the instructors, students and shariah regulators, selected randomly, reveal some interesting facts about education on Shariah governance.

Key words: Shariah Governance perception


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ISSN: 1813-0534