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Singapore Management University

2009

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Full-Text Articles in Business

Banking On Markets To Save The Post-Nopenhagen World, Knowledge@Smu Dec 2009

Banking On Markets To Save The Post-Nopenhagen World, Knowledge@Smu

Knowledge@SMU

At the Copenhagen harbour, a statue of the little mermaid sits, as if to remind us all of the tragic fate that awaits the hopeful. And just like in the fairytale, ideals vanished into thin air at the COP 15 last month, as world leaders failed to establish any binding consensus on climate change. All is not lost. Some politicians, analysts and activists are still holding out for the alternative happy ending to the tale, where politicians will ratify an international agreement at the next COP convention… and if not, the one after that. But for those who have no …


Corporate Governance In China: No Quick Fix, No Fixed Solution, Knowledge@Smu Dec 2009

Corporate Governance In China: No Quick Fix, No Fixed Solution, Knowledge@Smu

Knowledge@SMU

China offers a multitude of business opportunities, but international investors often find themselves stumped with a range of issues, many of which boil down to the country's distinct system of corporate governance. Here, the lines between interests and relationships are less clear-cut, and links to the government seem to serve as a proxy to accountability. This is a system that exists for a reason, said TJ Wong at SMU's Ho Bee Professorship in Chinese Economy and Business lecture series. However, foreign investors, used to international norms of transparency, are calling this into question.


Asian Maths Whizz And Talkative Females: How Stereotypes Can Actually Boost Performance, Knowledge@Smu Dec 2009

Asian Maths Whizz And Talkative Females: How Stereotypes Can Actually Boost Performance, Knowledge@Smu

Knowledge@SMU

Nobody likes to be pigeonholed or reduced to a single stereotype. One reason could be because we believe ourselves to be products of multiple stereotypes: a combination of identities, such as "Asian", "female", "lawyer", "Gen X", "Christian", "Chinese", etc. While these labels connect us to like-individuals, they can also carry all sorts of connotations and expectations – positive, neutral and negative. For example, an Asian might be expected to outperform a non-Asian at mathematics because of stereotypes that Asians are mathematically inclined. Will such undue expectations affect the Asian's performance outcome? Research studies point to a 'Yes'.


To Groom And Retain Talents, Asian Organisations Look To The West, Knowledge@Smu Dec 2009

To Groom And Retain Talents, Asian Organisations Look To The West, Knowledge@Smu

Knowledge@SMU

Is there a scarcity of talents in Asia? While opportunities are abound for businesses in the region, many organisations struggle to find the "right" people to seize those opportunities. Those that do a good job of grooming and retaining their future leaders will find themselves to be in an advantageous position. But why should organisations invest in nurturing their flock when seats to the corner offices are already "reserved" for an in-group of family members, friends, scholars, social elites, etc? This is especially problematic in Asia, where many large organisations are either family-owned or state-owned.


Mediating The Media: A Journalist-Centric Model In Managing The Media By Corporate Communication Practitioners, Augustine Pang Dec 2009

Mediating The Media: A Journalist-Centric Model In Managing The Media By Corporate Communication Practitioners, Augustine Pang

Research Collection Lee Kong Chian School Of Business

Purpose: The prevailing challenge faced by practitioners is to conduct effective media relations, especially with the proliferation of diverse media platforms both online and offline. For such a predominant and critical function, a systematic approach needs to be offered. This paper aims to address these issues. Design/methodology/approach: A new model is developed, drawing on insights from corporate communications and journalism literature. Findings: This model identifies two sets of influences that practitioners should seek to understand. The internal influences include journalist mindsets, journalist routines, and newsroom routines. The external influences include extra-media forces and media ideology. Research limitations/implications: At this juncture, …


Don't Be Undersold!, Jan-Benedict E.M. Steenkamp, Nirmalya Kumar Dec 2009

Don't Be Undersold!, Jan-Benedict E.M. Steenkamp, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

"Aldi" is a word that strikes fear in the hearts of brand managers across Europe. A chain of low-budget retail stores with sales of $73.5 billion in 2008, Aldi invented what is commonly referred to as the hard-discount store, a format that is destroying between a quarter and a half trillion dollars in brand sales annually.Brand executives at major consumer packaged goods companies have mostly been caught off guard by this success, The authors' research identified four key misconceptions that explain why: (1) Hard discounters can succeed only in Europe; (2) they attract only the poor; (3) they offer inferior …


Opportunity Cost Neglect, Shane Frederick, Nathan Novemsky, Jing (Jane) Wang, Ravi Dhar, Stephen Nowlis Dec 2009

Opportunity Cost Neglect, Shane Frederick, Nathan Novemsky, Jing (Jane) Wang, Ravi Dhar, Stephen Nowlis

Research Collection Lee Kong Chian School Of Business

To properly consider the opportunity costs of a purchase, consumers must actively generate the alternatives that it would displace. The current research suggests that consumers often fail to do so. Even under conditions promoting cognitive effort, various cues to consider opportunity costs reduce purchase rates and increase the choice share of more affordable options. Sensitivity to such cues varies with chronic dispositional differences in spending attitudes. We discuss the implications of these results for the marketing strategies of economy and premium brands.


The Role Of Is Project Critical Success Factors: A Revelatory Case, Cecil Eng Huang Chua, Wee Kiat Lim Dec 2009

The Role Of Is Project Critical Success Factors: A Revelatory Case, Cecil Eng Huang Chua, Wee Kiat Lim

CMP Research

Research in Critical Success Factors (CSFs) of Enterprise Systems (ES) projects has identified numerous practitioner governance mechanisms for ensuring project success. However, such research has not developed a theory of why certain critical success factors encourage project success. Our research develops such theory on a case study where even though the levels of several critical success factors were weak, the project nevertheless succeeded. Specifically, the logistics ES project succeeded even though there was (1) only marginal top management support, (2) low key user commitment, and (3) change management, training and other critical aspects of user management and communication were not …


Does Patent Strategy Shape The Long-Run Supply Of Public Knowledge? Evidence From Human Genetics, Kenneth Guang-Lih Huang, Fiona Murray Dec 2009

Does Patent Strategy Shape The Long-Run Supply Of Public Knowledge? Evidence From Human Genetics, Kenneth Guang-Lih Huang, Fiona Murray

Research Collection Lee Kong Chian School Of Business

Knowledge-based firms seeking competitive advantage often draw on the public knowledge stream (ideas embedded in public commons institutions) as the foundation for private knowledge (ideas firms protect through private intellectual property [IP] institutions). However, understanding of the converse relationship—the impact of private knowledge strategies on public knowledge production—is limited. We examine this question in human genetics, where policy makers debate expanding IP ownership over the human genome. Our difference-in-differences estimates show that gene patents decrease public genetic knowledge, with broader patent scope, private sector ownership, patent thickets, fragmented patent ownership, and a gene's commercial relevance exacerbating their effect.


An Organizational Impression Management Perspective On The Formation Of Corporate Reputations, Scott Highhouse, Margaret E. Brooks, Gary J. Gregarus Dec 2009

An Organizational Impression Management Perspective On The Formation Of Corporate Reputations, Scott Highhouse, Margaret E. Brooks, Gary J. Gregarus

Research Collection Lee Kong Chian School Of Business

Researchers have only recently turned their attention to the study of corporate reputation.As is characteristic of many early areas of management inquiry, the field is decidedly multidisciplinary and disconnected. This article selectively reviews reputation research conducted mainly during the past decade. A framework is proposed that views reputation from the perspective of organizational impression management. Corporations are viewed as social actors, intent on enhancing their respectability and impressiveness in the eyes of constituents.


Feedback On Proposals By The Committee To Develop The Accountancy Sector, Tan, Pearl Hock-Neo Dec 2009

Feedback On Proposals By The Committee To Develop The Accountancy Sector, Tan, Pearl Hock-Neo

Research Collection School Of Accountancy

No abstract provided.


Impact Of Culture On ‘Partner Selection Criteria’ In East Asian International Joint Ventures, Ravinder K. Zutshi, Wee Liang Tan Dec 2009

Impact Of Culture On ‘Partner Selection Criteria’ In East Asian International Joint Ventures, Ravinder K. Zutshi, Wee Liang Tan

Research Collection Lee Kong Chian School Of Business

Selecting the right partner is important for the success of alliances and joint ventures. For international joint ventures (IJVs) from diverse cultures the partner selection process can become complicated. Prior studies have investigated the alliances and joint ventures to develop a set of objective criteria for evaluating potential partners. This paper reports the study of IJVs formed by Singapore firms in Peoples Republic of China and India. The intent was to develop a methodology for identifying partner selection criteria in a cross-cultural setting. The findings reveal that the partner selection process follows a different logic in Confucian societies. Trust has …


Firm-Specific Knowledge Resources And Competitive Advantage: The Roles Of Economic- And Relationship-Based Employee Governance Mechanisms, Heli Wang, Jinyu He, Joseph T. Mahoney Dec 2009

Firm-Specific Knowledge Resources And Competitive Advantage: The Roles Of Economic- And Relationship-Based Employee Governance Mechanisms, Heli Wang, Jinyu He, Joseph T. Mahoney

Research Collection Lee Kong Chian School Of Business

The resource-based view of the firm emphasizes the role of firm-specific resources, especially firm-specific knowledge resources, in helping a firm to achieve sustainable competitive advantage. However, the deployment of firm-specific knowledge often requires key employees to make specialized human capital investments that are not easily redeployable to other settings. Thus, in the absence of effective safeguards and trust building devices, employees with foresight may be reluctant to make such specialized investments. This study explores both economic- and relationship-based governance mechanisms that might mitigate this underinvestment problem. Effective use of these governance mechanisms enables a firm to obtain greater performance from …


Managing Supply Uncertainty With An Information Market, Zhiling Guo, Fang Fang, Andrew B. Whinston Dec 2009

Managing Supply Uncertainty With An Information Market, Zhiling Guo, Fang Fang, Andrew B. Whinston

Research Collection School Of Computing and Information Systems

We propose a market-based information aggregation mechanism to manage the supply side uncertainty in the supply chain. In our analytical model, a simple supply chain consists of a group of retailers who order a homogeneous product from two suppliers. The two suppliers differ in their ability to fulfill orders – one always delivers orders and the other fulfills orders probabilistically. We model the supply chain decisions as a Stackelberg game where the supplier who has uncertain reliability decides a wholesale price before the retailers who independently receive signals about the supplier’s reliability determine their sourcing strategies. We then propose an …


Predicting Hedge Fund Performance With Style, Melvyn Teo Dec 2009

Predicting Hedge Fund Performance With Style, Melvyn Teo

Research Collection BNP Paribas Hedge Fund Centre

I apply the endogenous benchmark approach to the study of hedge funds. I find that including an investment style benchmark significantly reduces within style correlations in hedge fund residuals. Also, the performance spread between high past alpha t-statistic (a risk-adjusted information ratio) funds and low past alpha t-statistic funds increases dramatically when performance is measured relative to fund investment style. There appears to be valuable information in investment style performance that can aid in fund selection.


Law And Capitalism: What Corporate Crises Reveal About Legal Systems And Economic Development Around The World By C. J. Milhaupt And K. Pistor, Ruth V. Aguilera, Abhijeet K. Vadera Dec 2009

Law And Capitalism: What Corporate Crises Reveal About Legal Systems And Economic Development Around The World By C. J. Milhaupt And K. Pistor, Ruth V. Aguilera, Abhijeet K. Vadera

Research Collection Lee Kong Chian School Of Business

The article reviews the book "Law & Capitalism: What Corporate Crises Reveal About Legal Systems & Economic Development Around the World," by Curtis J. Milhaupt and Katharina Pistor.


Spirituality At Work In A Changing World: Managerial And Research Implications, Eugene Geh, Gilbert Tan Dec 2009

Spirituality At Work In A Changing World: Managerial And Research Implications, Eugene Geh, Gilbert Tan

Research Collection Lee Kong Chian School Of Business

This paper identifies the seminal works of key theorists in the field of spirituality and traces the development of the key ideas of spirituality at the workplace in relation to their relevance in today's organizational context. We examine how having a healthy orientation towards spirituality at work can lead to desirable individual and organizational outcomes. Particular emphasis is placed on understanding the rapidly changing workplace and its future directions by first uncovering the rationale behind the evolution of management thought since the introduction of Taylor's scientific management and then, by examining the various stages of economic development and as well …


Tunneling Through Intercorporate Loans: The China Experience, Guohua Jiang, Charles M. C. Lee, Heng Yue Nov 2009

Tunneling Through Intercorporate Loans: The China Experience, Guohua Jiang, Charles M. C. Lee, Heng Yue

Research Collection School of Accountancy

This study investigates a particularly brazen form of corporate abuse, in which controlling shareholders use intercorporate loans to siphon billions of RMB from hundreds of Chinese listed companies during the 1996 to 2006 period. We document the nature and extent of these transactions, evaluate their economic consequences, examine factors that affect their cross-sectional severity, and report on the mitigating roles of auditors, institutional investors, and regulators. Collectively, our findings shed light on the severity of the minority shareholder expropriation problem in China, as well as the relative efficacy of various legal and extra-legal governance mechanisms in that country.


Singapore’S Leadership, Circa 2004 - Softer, Gentler, Consultative?, Knowledge@Smu Nov 2009

Singapore’S Leadership, Circa 2004 - Softer, Gentler, Consultative?, Knowledge@Smu

Knowledge@SMU

Long before the ‘locals versus foreigners’ debate captured the imaginations of the nation, Singaporeans might faintly remember the ‘stayers versus quitters’ contention, as well as talk of ‘heartlanders versus cosmopolitans’ – milestones that are now neatly documented into a collection of essays, bundled in the book, Impressions of the Goh Chok Tong Years in Singapore. Stories ranging from Singapore’s population decline, bilateral relations and SARS crisis, to interethnic tensions, censorship and civil activism are captured, providing a remarkably wide, stereoscopic (if not nostalgic) peek into a recent past.


Buy Now, Regret Later: Rationalising The Irrational For Shopaholics, Knowledge@Smu Nov 2009

Buy Now, Regret Later: Rationalising The Irrational For Shopaholics, Knowledge@Smu

Knowledge@SMU

Why do we buy things that we don't need? One explanation is that it nourishes our consumerist cravings; that inexplicable sense of satisfaction that comes with the ownership of familiar items, but in a different colour, design, brand, smell, taste – things we tell ourselves to celebrate each euphoric ring on the cash register. What follows, however, are questions of doubt that plague even the most seasoned of shopaholics: Can I afford this? Can I really find good uses for this? Can this new car really fix my hair loss? According to a new study by SMU marketing professor Jane …


Housekeeping For Regulators Of Volatile Housing Markets, Knowledge@Smu Nov 2009

Housekeeping For Regulators Of Volatile Housing Markets, Knowledge@Smu

Knowledge@SMU

World housing markets have gone through a volatile period of boom and bust, triggering the financial crisis and subsequent economic downturn. While it might be tempting for governments to contemplate on housing bubbles by means of monetary policy or direct controls over housing prices, such moves are far more complicated than it seems. Housing prices are influenced by various factors and governments have a limited handle on them at best. Raising interest affects other sectors of the economy - not just housing. So what can governments do? What should be the ultimate goal of housing policy?


Big Blue’S Next Big Act: Smarter Technology For A Smarter Planet, Knowledge@Smu Nov 2009

Big Blue’S Next Big Act: Smarter Technology For A Smarter Planet, Knowledge@Smu

Knowledge@SMU

Everything seems to be going digital – our television sets, phones, the ways in which we communicate with each other, perform transactions or apply for permits – all in the name of pristine pictures, crystal clear sounds, paperless administration and fast, unencumbered access to data – all important features of the good life, for sure. But are we necessarily better off? We could be, given that "digitalisation" allows us to see and do things differently; to be more intelligent than we have ever been before, says IT giant IBM. And it is this belief that underscores the company's worldwide "Smarter …


Businesses Re-Imagined: Social Value Above Shareholder Value?, Knowledge@Smu Nov 2009

Businesses Re-Imagined: Social Value Above Shareholder Value?, Knowledge@Smu

Knowledge@SMU

Corporate Social Responsibility (CSR) initiatives are often viewed upon as publicity stunts; that corporations only do “good” only if it makes them look good - a cynical view, perhaps, but not completely groundless. Though it may seem as if more organisations are stepping up to serve social causes, such initiatives, as seen from inside the heads of corporate honchos, are secondary to profit maximisation. This is problematic, as more and more people seek to align their lives and careers with the social interests that matter.


In Support Of A Cashless Future, Researchers Recreate A Cash-Like Experience, Knowledge@Smu Nov 2009

In Support Of A Cashless Future, Researchers Recreate A Cash-Like Experience, Knowledge@Smu

Knowledge@SMU

The mobile phone is piece of technology so loved, that some have referred to it as a “phantom limb”. To personalise and get the most out of this “limb”, people have been known to spend lots of time and money, decorating their precious phones with screen protectors, fancy ringtones, wallpapers, themes and ‘apps’. Many have even been caught fiddling with this device while driving! With a national mobile penetration rate of close to 140 percent (which suggests some people may have more “limbs” than others), it seems only natural to fantasise about incorporating the mobile phone into other favourite pastimes, …


Dating The Timeline Of Financial Bubbles During The Subprime Crisis, Peter C. B. Phillips, Jun Yu Nov 2009

Dating The Timeline Of Financial Bubbles During The Subprime Crisis, Peter C. B. Phillips, Jun Yu

Research Collection School Of Economics

A new recursive regression methodology is introduced to analyze the bubble characteristics of various financial time series during the subprime crisis. The methods modify a technique proposed in Phillips, Wu, and Yu (2011) and provide a technology for identifying bubble behavior with consistent dating of their origination and collapse. The tests serve as an early warning diagnostic of bubble activity and a new procedure is introduced for testing bubble migration across markets. Three relevant financial series are investigated, including a financial asset price (a house price index), a commodity price (the crude oil price), and one bond price (the spread …


Apec Business Fellowship Program: Peru, Hwee Hoon Tan, Michael A. Netzley Nov 2009

Apec Business Fellowship Program: Peru, Hwee Hoon Tan, Michael A. Netzley

Research Collection Lee Kong Chian School Of Business

A commissioned research report dedicated to one of the project's key sponsors, Peru. The report looks at SME internationalization within Peru and recommends several ways the the APEC business fellowship program can be adapted to audiences in Peru.


A Bayesian Inventory Model Using Real-Time Condition Monitoring Information, Rong Li, Jennifer Ryan Nov 2009

A Bayesian Inventory Model Using Real-Time Condition Monitoring Information, Rong Li, Jennifer Ryan

Research Collection Lee Kong Chian School Of Business

No abstract provided.


Inventory Management And Financial Hedging Of Storable Commodities, Panos Kouvelis, Rong Li, Qing Ding Nov 2009

Inventory Management And Financial Hedging Of Storable Commodities, Panos Kouvelis, Rong Li, Qing Ding

Research Collection Lee Kong Chian School Of Business

No abstract provided.


Brokerage Industry Self-Regulation: The Case Of Analysts’ Background Disclosures, Lawrence Brown, Artur Hugon, Hai Lu Nov 2009

Brokerage Industry Self-Regulation: The Case Of Analysts’ Background Disclosures, Lawrence Brown, Artur Hugon, Hai Lu

Research Collection School Of Accountancy

We evaluate an industry disclosure initiative designed to inform investors, the practice of providing information regarding investment professionals’ backgrounds. Implicit in the motivation for this initiative is the presumed relevance of background information to investors seeking investment professionals’ guidance. We find that analysts with disclosure incidents forecast less accurately than a matched sample of analysts without such disclosures, and that the market views disclosed analysts’ earnings forecasts as less credible than those of the matched sample. Our evidence is consistent with disclosures signaling a persistent analyst characteristic. We conclude that analyst backgrounds are informative regarding both the accuracy and credibility …


Social Networks, Personal Values, And Creativity: Evidence For Curvilinear And Interaction Effects, Jing Zhou, Shung Jae Shin, Daniel J. Brass, Jaepil Choi, Zhi-Xue Zhang Nov 2009

Social Networks, Personal Values, And Creativity: Evidence For Curvilinear And Interaction Effects, Jing Zhou, Shung Jae Shin, Daniel J. Brass, Jaepil Choi, Zhi-Xue Zhang

Research Collection Lee Kong Chian School Of Business

Taking an interactional perspective on creativity, the authors examined the influence of social networks and conformity value on employees' creativity. They theorized and found a curvilinear relationship between number of weak ties and creativity such that employees exhibited greater creativity when their number of weak ties was at intermediate levels rather than at lower or higher levels. In addition, employees' conformity value moderated the curvilinear relationship between number of weak ties and creativity such that employees exhibited greater creativity at intermediate levels of number of weak ties when conformity was low than when it was high. A proper match between …