international journal of management

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International Journal of Management

Contents 28/4 dec 11 part 2

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The Effect of Firm Characteristics on Choice of Debt Financing Halil D. Kaya	199
The Effect of Firm Characteristics on Choice of Debt Financing Halil D. Kaya Eastern Kentucky University This study examines the effects of a firm’s credit rating, size, market-to-book ratio, profitability, degree of leverage, and tangible assets on its choice of debt financing. Using a comprehensive U.S. sample of 3077 public debt offerings, 2164 private placements/144a issues, and 6903 syndicated bank loan agreements downloaded from the Security Data Company’s New Issues Database, I find several interesting results for the period 1984 to 2004. I find that, while larger and highly rated firms with a lot of tangible assets tend to prefer public debt to private placements/144a issues, non-rated firms with relatively high M/B ratios tend to do the opposite. When choosing between public debt financing and syndicated bank loan financing, while large, highly rated, but at the same time, highly levered firms with a lot of tangible assets tend to prefer public debt financing, non-rated firms with relatively high M/B ratios tend to prefer syndicated bank loan financing. Finally, when choosing between private placement/144a financing and syndicated bank loan financing, while large, highly levered firms with a lot of tangible assets tend to prefer private placement/144a financing, non-rated firms with relatively high M/B ratios tend to prefer syndicated bank loan financing.
The Legitimacy and Efficacy of Current Organizational Theory: An Analysis Mildred Golden Pryor, John H. Humphreys, Jennifer Oyler, Sonia Taneja, Leslie A. Toombs	209
The Legitimacy and Efficacy of Current Organizational Theory: An Analysis Mildred Golden Pryor Texas A&M University-Commerce John H. Humphreys Texas A&M University-Commerce Jennifer Oyler Texas A&M University-Commerce Sonia Taneja Texas A&M University-Commerce Leslie A. Toombs University of Texas of the Permian Basin This article examines organization, management, and leadership theory development and evolution from the perspectives of legitimacy and efficacy. Based on this examination, we support rigorous testing and grounded theory approaches, advocate the use of evidence-based theory development, and offer the 5P’s Model of Strategic Leadership as an example of a model that originated from evidence-based theory development.  We suggest that researchers, faculty members, and business practitioners should be able to contemplate and debate the usefulness of various theories and models with the understanding that application is essential for substantiation of their worth. In this article, we analyze existing organizational theory, but we also advocate the introduction of new organization theories.  This can occur if researchers in the various educational institutions, business organizations, professional organizations, and media outlets are more open to the creation of a variety of models and theories, the legitimacy and usefulness of which can later be substantiated through application.
Effects of Changes in the Precision of Public versus Private Information on Market Liquidity at the Time of Earnings Announcements Kiridaran Kanagaretnam, Gerald J Lobo, Dennis J Whalen	229
Effects of Changes in the Precision of Public versus Private Information on Market Liquidity at the Time of Earnings Announcements Kiridaran Kanagaretnam McMaster University, Canada Gerald J Lobo University of Houston Dennis J Whalen Otterbein University We investigate the relationship between public and private information precision and market liquidity around earnings announcements. Increases in the precision of public information should reduce information asymmetry between informed and uninformed traders and thereby improve market liquidity, whereas increases in the precision of private information should increase information asymmetry between informed and uninformed traders and thereby reduce market liquidity. We employ changes in percentage spreads and quoted depths to measure market liquidity (using the Transactions and Quotes (TAQ) database) and the measures proposed by Barron, Kim, Lim and Stevens (1998) to measure public and private information precision (using the Institutional Brokers Estimate System (I/B/E/S) database). Consistent with our predictions, we find that higher public information precision increases market liquidity (i.e., decreases bid-ask spreads) whereas higher private information precision reduces market liquidity (i.e., increases bid-ask spreads and reduces depths).
The Influence of Ownership Structure on the Implementation of National Codes of Corporate Governance: Development of Research Propositions A Chizema	238
The Influence of Ownership Structure on the Implementation of National Codes of Corporate Governance: Development of Research Propositions A Chizema Loughborough University, United Kingdom From a theoretical perspective, this paper examines the implementation of codes of corporate governance that have been adopted by many countries. The main argument presented in this paper is that while codes could have been adopted at country-level the effectiveness of these codes lies in their implementation at firm-level. As such the paper identifies ownership structure as a strong determinant in either the adoption or rejection of governance elements by firms. Specifically, the extent of power and interest structures manifest in family, institutional, state and bank ownership possibly determines the choice to implement or decouple recommended corporate governance practices. Decoupling here refers to the broad separation between the adopted governance practices and their actual use, suggesting levels of adaptation, delayed use or complete rejection. In the specific context of Germany, the paper proposes that family, state and bank ownership may be associated with lower levels of implementation, while the opposite is expected for institutional ownership. Arguments leading to these propositions are provided. For example, changes in the way a firm is governed may not be welcome in a family business, as changes to the status quo may imply subsequent loss of control. Using the arguments drawn from the literatures on power, politics, actors’ interests and capabilities, this paper develops four propositions, indeed, its defining feature. Further research could be in the form of empirical work, testing these propositions in both a national and an international context.
Effects of Current Nursing Management Styles on the Retention and Recruitment of Nurses: A Review of the Literature Misty Forest, Brian Kleiner	254
Effects of Current Nursing Management Styles on the Retention and Recruitment of Nurses: A Review of the Literature Misty Forest California State University, Fullerton Brian Kleiner California State University, Fullerton The current nursing management style that tends to be most favored in practice is a task-oriented transactional style, leaving little decision making autonomy  on significant issues to the nurse being managed. This style, unfortunately, has the unintended consequences of reducing morale and increasing turnover among those being managed in this manner. More recent developments in the leadership literature emphasize a more transformational style, the importance of the leader developing an inspiring vision for the nurses to follow, mentoring, and playing more of a servant role so that the nursing staff can feel empowered with regard to issues of significance. This major contrasting pattern in management style appears to contribute to improving morale, reducing turnover, and facilitating recruitment.
Risk-Taking as a Moderator of the Effect of Team Reflexivity on Product Innovation: An Empirical Study Les Tien-Shang Lee, Badri Munir Sukoco	263
Risk-Taking as a Moderator of the Effect of Team Reflexivity on Product Innovation: An Empirical Study Les Tien-Shang Lee Kun Shan University, Taiwan Badri Munir Sukoco Airlangga University, Indonesia In this paper, we argue that the degree to which products are truly innovative can help to determine their success or failure in the market place. The innovative products that offer uniqueness and superiority can be developed when the team can transform their members’ knowledge and skills through reflection process. We further argue that team’s propensity to engage in risky decision accelerate the positive effects of team reflexivity on product innovation. This study tested the hypotheses through survey distributed to NPD team leaders in Taiwan. The results indicate that members’ knowledge and skills should mediated by team reflexivity to develop innovative product. Moreover, the positive effect of team reflexivity on product innovation is moderated by risk-taking level that NPD team has.
Effects of Demographic and Personal Factors on Job Burnout: An Empirical Study in Iran Ali Attafar, Nastaran Simar Asl, Arash Shahin	275
Effects of Demographic and Personal Factors on Job Burnout: An Empirical Study in Iran Ali Attafar University of Isfahan, Iran Nastaran Simar Asl University of Isfahan, Iran Arash Shahin University of Isfahan, Iran While burnout is a type of job stress which might be affected by a variety of factors, it can have negative implications for both employees and employers.  This study aims to examine the level of job burnout among Iranian librarians. Also, it focuses on the differences of three constituents of burnout as emotional exhaustion (EE), depersonalization (DP) and perceived sense of personal accomplishment (PA) among different genders, age groups, tenure levels, organizational positions and librarians’ educational backgrounds.  A 22 items questionnaire has been designed and submitted to a sample of 150 librarians, who are members of the Iranian Library and Information Science Association.  122 filled questionnaires have been returned and the data including the level of EE, PA and DP has been statistically analyzed.  Results indicate that Iranian librarians suffer from moderate levels of job burnout. Compared to female librarians, males suffer from higher degrees of EE and DP, while there is no significant difference among librarians in EE based on other factors. Also, higher levels of DP are found among librarians who are not library science graduates and those with less than five years experience. In addition, librarians with over five years experience and those with relevant educational background to librarianship have higher levels of PA. The results of the impact of age analysis imply that the highest level of PA is experienced by librarians with 50 years old and over.  The findings contribute to understanding of the job burnout in Iran’s libraries as a developing country as well as the effects of demographic factors; provide critical implications for managers of libraries; and highlight directions for future research.
Perceived Effectiveness of Business Internships: Student Expectations, Experiences, and Personality Traits J. M. Moghaddam	287
Perceived Effectiveness of Business Internships: Student Expectations, Experiences, and Personality Traits J. M. Moghaddam California State University, Fresno Student internships are an integral part of most higher education programmes. Using student ratings, this study empirically examines perceived effectiveness of business internships, students’ academic preparation, and internship placement and support for two groups of college students in the United States: Those who have not yet taken an internship and those have taken or are currently taking an internship. The study also explores the effects of personality traits on students’ perceptions. A total of 646 students constituted the survey group, of whom 561 completed the survey questionnaires. The findings of this study suggest that students overall find themselves academically prepared for business internships, the internships to be an effective means of providing them with business education and preparing them for their future careers, and the school’s internship office and internship sponsoring companies/agencies to be effective in student placement and support. Such perceptions/expectations are, however, stronger for those students who have not yet taken an internship than those who have taken or are currently taking one. Likewise, personality traits have more impact on perceptions/expectations of those students who have not yet taken an internship.
Effects of Dynamic Strategies on Capital Market Performance: A Test among Automobile Companies in Japan, North America and Europe Heike Proff, Thomas M. Fojcik	304
Effects of Dynamic Strategies on Capital Market Performance: A Test among Automobile Companies in Japan, North America and Europe Heike Proff University of Duisburg-Essen, Germany Thomas M. Fojcik University of Duisburg-Essen, Germany A comprehensive explanation of dynamic strategies in the event of changes in a firm’s environment, competitive reactions, or a deterioration in a firm’s competences and it’s resulting economic impact is presented. The paper identifies three explanatory approaches (resource based explanations, market based explanations, competence based explanations) that make different assumptions on the rationality of decision-makers and the dynamics of the competitive environment. From the three explanatory approaches different options for obtaining a desired competitive position are derived and transformed into single- and combined-implemented dynamic strategies, which unlike other strategies - in the majority of cases static strategies, help in dealing with change and lead to superior performance over time. The concept of dynamic strategies is referred to capital market performance and is empirically tested through a structural equation model among 30 automobile companies headquartered in Japan, North America and Europe. Data collection is carried out by a preliminary content analysis of annual and quarterly reports as well as ad hoc information (2,550 documents) for five years (2004-2008). Our results support a positive correlation between capital market performance and use of some single- and combined-implemented dynamic strategies, but not for all strategy combinations as a whole.
Urban or Rural Living as a Moderator of the Effects of Consumer Emotions and Habits on Acceptance of Food Product Innovation Ramo Barrena, Mercedes Sánchez	321
Urban or Rural Living as a Moderator of the Effects of Consumer Emotions and Habits on Acceptance of Food Product Innovation Ramo Barrena Universidad Pública de Navarra, Spain Mercedes Sánchez Universidad Pública de Navarra, Spain This paper aims to extend the existing literature by determining to what consumer characteristics influence the structure of the choice process using the means-end chain (MEC) theory and the analysis of consumers’ emotions when purchasing an ethnic food product (couscous). The data were collected by face-to-face interviews with a convenience sample of 167 purchasers, which the completed a four part questionnaire. The results indicate urban/rural variation in the cognitive structure and emotions of consumers. Thus, in terms of emotions, fear and worry are more prevalent in urban consumers, while guilt is more common in rural consumers. Interesting differences in cognitive structure are also observed, with urban consumers associating this ethnic food with a sense of cultural identification and country dwellers associating it with feelings of success. The choice processes of the urban group also show a higher level of abstraction, suggesting a more complex choice process so that a more participation in the election of the terminal personal values and psychological benefits.
Frederick Winslow Taylor: One Hundred Years of Managerial Insight Anne M. Blake, James L. Moseley	346
Frederick Winslow Taylor: One Hundred Years of Managerial Insight Anne M. Blake Wayne State University James L. Moseley Wayne State University One hundred years ago, the publication of a small book set off an international firestorm. The book’s author, Frederick Winslow Taylor, is widely recognized as a founder of the modern management movement. His fiery personality and radical approach to business made him a popular yet controversial figure in the United States.  However, it was the publication of The Principles of Scientific Management in 1911 (Harper and Brothers: New York) that catapulted Frederick Taylor to international fame. Almost overnight, business leaders around the world became obsessed with discovering the “one best way” to do every job. One hundred years later, the influence of the very first business best-seller has trickled into every type of industry in every corner of the world. To celebrate the centennial of the book’s publication it is worthwhile to take a look back at this remarkable man, his little book that changed the world, and his dubious distinction of founding Taylorism.
The Acceptance of Senge’s Learning Organisation Model among Managers in China: An Interview Study Graham Elkin, Haina Zhang, Malcolm Cone	354
The Acceptance of Senge’s Learning Organisation Model among Managers in China: An Interview Study Graham Elkin University of Otago, New Zealand Haina Zhang University of Otago, New Zealand Malcolm Cone University of Otago, New Zealand Senge’s model has been widely accepted as a theoretical scheme for developing learning organisations but there is little evidence for fully developed learning organisations in the West. This paper explored the extent to which managers’ in China behave in a way consistent with the five dimensions of Senge’s model (shared vision, whole team learning, changed mental models, continuous individual learning and systems thinking). Case studies with interviews with 37 middle and senior managers were conducted within 5 private owned enterprises (POEs) in China. The extremely high recognition by managers of all five disciplines suggested that, even though the term learning organisation is unknown, learning organisations were widespread in China. Explanations were offered in terms of Chinese leadership behaviours and Chinese pragmatic world view. This research contributes to learning organisation literature by extending Senge’s well-known model and theory to a Chinese context, through qualitative empirical study.
Use of Rfid Technology to Overcome Inefficiencies in the Supply Chain: An Analysis of Renault’s Operations in Iran Andrew Kach, Alireza Fereydouni Borzabad	365
Use of Rfid Technology to Overcome Inefficiencies in the Supply Chain: An Analysis of Renault’s Operations in Iran Andrew Kach New Mexico State University Alireza Fereydouni Borzabad Sharif University – Khatam Branch, Iran The adoption of radio frequency identification (RFID) technology has been utilized by a vast number of firms throughout the world. However, there are implications that can limit the universal application of RFID. When and how RFID technology can provide benefits to organizations is a topic of interest to researchers and practitioners alike. We explore the process taken to adopt RFID technology at Renault’s Iranian operations. Our work here takes an in-depth approach in analyzing the adoption process of RFID technology within an emergent economy, focusing mainly on the processes behind integrating RFID technology and its impact on organizational inefficiencies. Using a longitudinal approach, data surrounding supply chain inefficiencies within the operating environment was collected before and after the implementation of RFID technology within Renault. The information was gathered from MRP and inventory data interface control systems, allowing for observation of where operating inefficiencies or “waste zones” exist, their impact on the logistical and warehouse operations at Renault, and how the implementation of RFID impacted each particular zone. Our results indicate that RFID technology can increase efficiency within internal warehouse operations and throughout multiple supplier tiers; however, environmental uncertainties can still pose a threat towards inventory management and logistics regardless of the existence of RFID technology. Through this approach, understanding the potential benefits and drawbacks surrounding RFID implementation is made increasingly visible; assisting managers in future RFID adoption practices.
The Effects of Agency Costs among Interfirm Alliances: A Study of Singapore Small- and Medium-Sized Enterprises (Smes) in China Sheh Seow Wah, Michael Teo Chee Meng	379
The Effects of Agency Costs among Interfirm Alliances: A Study of Singapore Small- and Medium-Sized Enterprises (Smes) in China Sheh Seow Wah University of South Australia, Australia Michael Teo Chee Meng Strategic Property Network, Singapore The objective of this paper is to conduct empirical research on the influence of agency costs on alliance performance in China. From the literature reviews, five hypotheses incorporating opportunism, goal congruence, information exchange, inter-organizational trust, partner reputation, and alliance performance were developed to test the correlations between agency costs and alliance performance.  For data collection, 649 questionnaires were mailed to a selected list of Singaporean firms with business transactions in China. 118 usable questionnaires were received representing a response rate of 18.18%. In this study, we found Singaporean firms were generally satisfied with the alliance performance with their Chinese partners. Though the Chinese partners were opportunistic in their business dealings, it tends to affect smaller Singaporean SMEs with shorter alliance relationship.