December 2017 (Journal of Business and Policy Research)

December 2017 (Journal of Business and Policy Research)

Total Articles - 8

Pages 1 – 13

Author: Raymond Kwong and Ricky K.L. Mak

This paper proposes a two-step approach to examine the macroeconomic determinants of systematic risk. The first step takes as systematic risk the first principal component in a portfolio that explains the largest variance from a Principal Component Analysis (PCA). The second step examines the macroeconomic determinants that constitute systematic risk. Applying the approach to monthly data of 189 stocks in 11 sector portfolios in Hong Kong, the findings show that the unemployment rate and trade balance are the significant factors constituting systematic risk. Further, systematic risk is autoregressive and has a non-zero mean. The error correction force of the long-run equilibrium between the co-integrated series unemployment rate and trade balance significantly contributes to the systematic risk.

Pages 14 – 30

Author: Surajit Sarbabidya

Customer is considered as the king or queen of the market. Hence, the survival and success of an organization as well as industry in general depends on the satisfaction of such customers. This again depends on the active role and caring service of the customer oriented employees. However, the performance excellence of the latter greatly depends on the satisfaction of the target market. This is where the earlier research studies found that internal marketing can be feasible solution to hire, train, motivate and retain the resourceful employees. But very few of such studies focused on the application of internal marketing in the mobile phone telecommunication industry which has experienced tremendous growth from its inception. So, this indicates to the research problem because there is a research gap. In such context, internal marketing approach may be adopted for sustainable development of this industry by ensuring profitability, satisfaction of the internal people (i.e., employees) to satisfy the external people (i.e., customers) in such a way so that stakeholder and environment friendly telecom business can be developed. With this end in view, the present study aims to examine the relationship between internal marketing and sustainable development of the mobile phone telecommunication industry of Bangladesh. It has been found from a study conducted between October 10 to November 15, 2015 on 123 employees that internal marketing plays important role in the sustainable development of the mobile phone telecommunication industry of Bangladesh through the fruitful contribution of the motivated resourceful employees. The study also found that various motivational measures for the employees including welfare, training, performance based pay, recognition and appreciation, promotion, good workplace, work/life balance, recreation facilities, equal employment opportunity, logistic support, etc., have contributed behind such development. Finally, it can be stated that the study will enable the mobile telecommunication operators to acquire, develop and retain the resourceful employees through various incentives to utilize them to work for the sustainable development of the industry.

Pages 31 – 41

Author: Aries Heru Prasetyo, Wei Lo, Jersan Hu and Anthony Kuo

Aiming to identify antecedents for long-term orientation in co-operative organization, the study conducted two analyses. For the first part, the study conducted critical review among several academic works to find clear direction regarding the phenomenon. One pivotal finding from this phase would be the use of true-friendship as basis. Addressing dialectical theory of friendship, the study appointed three possible candidates: trust, commitment and loyalty. Moreover, dialectical process signaled to have strong relationship with true-friendship and long-term orientation. Putting all together, the study proposed one research model which consists of six hypotheses. The second part of the study was performing Structural Equation Modeling with LISREL to test the model empirically. Having achieved Goodness of Fit Index up to 0.977, the study confirmed that trust, commitment and loyalty do have positive relationship with the true-friendship on its accordance with long-term orientation. Lastly, the role of dialectical process had successfully identified but only in the creation of long-term orientation, thus leaving one concept for future agenda.

Pages 42 – 57

Author: Arawati Agus

This paper presents very interesting findings of an empirical research which examines the relationship between quality of life (QoL) and the overall life happiness of employees in Klang Valley, Malaysia. The study measures perception of full time employees from both public and private sectors regarding constructs that they feel important in influencing their overall life happiness. The associations between QoL constructs and overall life happiness are analyzed through statistical methods such as Pearson’s correlations, structural equation modelling (SEM) and cluster analysis by utilizing 204 respondents’ data. Specifically, overall life happiness has high correlations with quality of life (QoL) constructs namely work quality of life, financial quality of life, health quality of life, family quality of life, social quality of life and spiritual/religion quality of life. The SEM result also reveals that QoL constructs exhibit significant influence on the overall life happiness of employees. The result of the cluster analysis and the Friedman rank test indicate that “High overall life happiness achievers” have higher levels of QoL constructs specifically ‘spiritual/religion quality of life’, ‘family quality of life’ and ‘work quality of life’. In general, the findings of the study provide a striking demonstration of the importance of QoL constructs in achieving the overall life happiness.

Pages 58 – 74

Author: Wenling Lu

This cross-country analysis examines whether specific regulatory and supervisory practices and intervention policies are associated with the possibility of the recent banking crisis in countries. In general, countries significantly increase restrictions on bank regulatory capital requirement after global financial crisis but banking crisis countries do not significantly change their regulatory and supervisory structure to better prevent the next crisis. The empirical results show that (a) greater restrictiveness on bank activities and supervisory practices that strengthen the rights of private sector monitors of banks regulations decrease the likelihood of banking crisis, (b) capital regulatory stringency is positively correlated with higher likelihood of banking crisis; and (c) capital regulatory stringency is positively correlated with lower likelihood of systemic banking crisis; and both private monitoring and official supervisor power are positively associated with higher likelihood of systemic banking crisis when the authors only consider systemic banking crisis countries.

Pages 75 – 90

Author: Thaniya Khanthahutthee

Over the last 20 years, Thailand department stores have progressed quickly and have beaten local stores and dominated the Thai retail market. In 2016, Thailand’s retail sector had a combined value of THB2.2 trillion (Modern Trade 40% and Traditional Trade 60%) which accounts for 27.4% of GDP. The country has developed a positive reputation with pro-investment policies, well-developed infrastructure and has become commercial hub in Asia. Both multinational corporations and local retailers are integrating into market due to the government opening the domestic market to foreign investors and operators (Ninkitsaranont and Sathapongpakdee 2016). On the contrary, thousands of major chain stores in the United States such as Sears, J.C. Penney, and Macy’s have closed down as the businesses have been hit by plunging sales and loss of profitability to Amazon (Wahba 2016). The loss of market share to Amazon signified the clear trends of consumers search and buy products is influenced by social media and e-tailing platforms. The emergence of disruptive technologies are transforming business model by having a disruptive impact on the configuration of consumer buying a product from the seller. This article aims to 1) explore the current situation and the growth prospects of Thailand’s department store, 2) state the changing needs of customers through their spending on new channel, 3) recognize the major trends that will shape the future of the department store industry, and 4) draw the challenges faced by the modern market growth. Firms that know where the ‘disruption’ has taken place and understand their customers desires will search for the underlying customer’s motivation and start to leverage technology which involves the customer’s experience, and focus on their differentiators in order to engage the customers’ mind, thus expanding the store sales.

Pages 91 – 100

Author: Masaki Yamaguchi

This study investigates the market position of Japanese banks in the UK project finance market. To this end, this study employs social network analysis, which enables us to understand the types of communities existing in the market and the characteristics of the networks constructed by Japanese banks. This study uses the data of the UK project finance transactions conducted in 2014. The main results indicate the existence of three groups in the market. All the Japanese banks belong to the largest group and play a central role in this group. The relationship strength of this group is stronger than those of the other two groups for several indices. The above-mentioned features of the network formed by the Japanese banks strengthen their competitiveness in the market.

Pages 101 – 119

Author: Tung-Shan Liao

Measuring dynamic capabilities and estimating their consequences on performance are challenging as they are naturally complex and multi-dimensional. This study aims to investigate the effect of a firm’s market engagement on performance, and its role in linking firm internal processes and performance. This study focuses on the mediating role of market fitness in order to empirically clarify how a firm’s organizational procedural capabilities drive its performance. For empirical analysis, this study conducts path analysis on a ten-year-long panel dataset with 413 listed companies across Taiwan’s electronics industries. The major contribution of this study to strategic management literature is that this study operationalizes the microfoundations of dynamic capabilities for both organizational processes and market fitness based on return on invested capital. The measures developed for the present analysis can be viewed as a set of yardsticks for empirically drawing the performance of dynamic capabilities.

Total Articles- 8

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