International Journal of Commerce and Management

Pak, Olga ; Mahmood, Monowar

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-01-2013-0002

Purpose – The purpose of this paper is to investigate the relationship between personality traits, risk-taking attitude and investment decisions among potential private investors in a post-Soviet transition country, i.e. Kazakhstan. The study provides valuable insights to investment experts and policymakers to understand investors’ behavior in post-Soviet transition countries. Design/methodology/approach – A quantitative research method is used to measure personality traits, risk-taking behavior and investment decisions of the respondents. A survey was conducted among the students and teachers of a business school in Kazakhstan. Based on literature review, two multiple regression models were development and tested in this study. Software packages SPSS and EViews were used to analyze the data. Findings – The findings revealed that personality traits have some impact on an individual’s risk-tolerance behavior, which, in turn, influences investment decisions about stock, securities and bonds. The results of this study imply that investment advisors should consider personal characteristics and individual risk tolerance, among other factors, when giving investment advice to private investors. Originality/value – At present, there is no study or research available about investors’ behavior and risk-taking attitudes on post-Soviet transition economies. Therefore, this study will contribute significantly toward the understanding of investors’ behavior in these countries and will help policymakers and investment bankers make appropriate suggestions on financial advising.

Alam, Syed Shah ; Mohd, Rohani ; Kamaruddin, Badrul Hisham ; Nor, Noor Gani Mohd

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-01-2013-0001

Purpose – The purpose of this paper is to discuss how personal values and internal motivation interact to influence entrepreneurial orientations. Personal values and internal motivation are among personal characteristics that have an impact on entrepreneurial orientation. However, these two personal variables are studied in isolation; therefore, how these two interact to influence entrepreneurial orientation is not yet fully understood. Design/methodology/approach – This study comprised a sample of Malay-owned small and medium enterprises (SMEs) located in the Klang Valley in Malaysia. A cross-sectional research design was used to examine the relationships between personal values, self-efficacy motivation and entrepreneurial orientation among small-scale Malay SMEs. To focus on SMEs, lists were sought from the Majlis Amanah Rakyat (MARA). Malay was chosen for this study because Malaysia has a majority of the Malay population compared to other races. Data were gathered based on mailed and personally administered questionnaires. Findings – The findings indicate that self-efficacy of Malay SMEs in the Shah Alam area acted as a mediator in the relationship between personal values and entrepreneurial orientation. Malay SMEs were found to have high self-efficacy and entrepreneurial orientation. Practical implications – An important implication of this research is that the interesting findings provide some insight to management consultants for focusing on improving the self-efficacy of Malay SMEs, in their training, as this would improve their entrepreneurial orientations. Originality/value – The findings are original and unique and are based on established theories from the literature on Malay-based SMEs in Malaysia. The results are based on a sample of Malay-owned SMEs in the Klang Valley in Malaysia. The research findings are useful to academics and policymakers interested in fostering SMEs in Malaysia.

Rani, Neelam ; Yadav, Surendra S ; Jain, P K

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-11-2012-0075

Purpose – The purpose of this paper is to investigate the impact of mergers and acquisitions (M & A) on corporate performance. It addresses the major question related to the long-term performance of the acquiring firm. Design/methodology/approach – The paper uses the long-term pre- and post-merger financial data to investigate the long-term performance. It compares performance of the acquiring firms before and after M & A. The present work conducts a comprehensive ratio analysis of 14 major ratios related to profitability, efficiency, leverage and liquidity. To ascertain the sources of the better long-term post-M & A returns, the present work decomposes the measure of operating performance into its constituents in terms of Du Pont analysis. Findings – Taking a sample of 305 M & As during the period of January 2003 to December 2008, it has been observed that there is significant improvement in the profitability of the acquiring companies involved in M & A. The results pertaining to profitability, efficiency (in terms of utilization of fixed assets), expense and liquidity ratios show that there is an improvement in performance of the acquiring firms in the post-M & A period. The analysis in terms of Du Pont shows improvement in the long-term operating profit margin of the acquiring firms. This means higher profit is generated per unit net sales by the acquiring firms after the M & A. The higher profits (profit before interest and taxes and non-operating income) are generated primarily due to the better operating margins. The improved operating cash flows are on account of the improvement in the post-M & A operating margins of the acquirers, not due to the efficient utilization of the assets turnover to generate higher sales. Originality/value – The paper contributes to the existing literature by comparing operating performance and profitability of acquirers before and after M & A using a comprehensive set of 14 ratios for a substantially large sample.

Khomba, James Kamwachale

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-12-2012-0077

Purpose – This paper aims to review and analyze the validity and relevance of the conceptualization of the Balanced Scorecard (BSC) model, especially within an African context. The BSC model was developed to address the problems and limitations of relying solely on traditional financial measures. This paper carries out a critical review and detailed analysis on perspectives surrounding the BSC model. Design/methodology/approach – The paper critically reviews relevant literature on the BSC model by focusing on the pertinent issues surrounding the applicability of the BSC model in modern business environment. A critical review of conceptualization issues regarding the BSC model especially with a focus toward its application within an African framework was also done. Findings – It is established that the BSC model plays a pivotal role in assisting business executives in making holistic long-term management decisions. However, the model puts undue emphasis on shareholders’ wealth maximization at the sacrifice of other equally important stakeholders. The model puts less emphasis or completely ignores such stakeholders as competitors, suppliers, lenders, government, the local community and the natural environment. The model is fraught with many conceptualization assumptions that are not realistic in the modern environment. Practical implications – It is envisaged that the study should add to the literature on corporate performance measures and the BSC model. The revelations gained through this paper will enable researchers to have an open mind on the way the BSC model is supposed to be modified and applied for various business environments. Originality/value – The revelations of the paper point out application limitations of the BSC model, there is an imperative need to upgrade and redesign the BSC model to reflect realities of modern business activities, especially within an African context.

Sunil, .

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-02-2013-0012

Purpose – The purpose of this paper is to assess the trends and practices of consumers buying their products online and offline. Further, it also analyses the factors which influence consumers to go online and offline for their purchases. Design/methodology/approach – To analyse the factors influencing consumer’s buying behaviour, 18 variables have been identified and questionnaire using a seven-point scale (where 1 indicating very unimportant and 7 very important) was designed. It was circulated among 875 consumers residing in Delhi and National Capital Region between February 2012 and April 2012, who buy offline or online or from both sources. The responses so collected have been tabulated and analysed with the help of a factor analysis method. The principal component method has been used to determine the minimum number of factors that would account for the maximum variance in the data collected. The data have been analysed by using SPSS version 19. Findings – The study identifies Factor 1 (F1) as a Pre-sales Offer which includes the following variables that influence consumers mostly: less price, special sales, rebates and coupons, easy to get product information, physical examination of product, immediate possession of a product, uncertainty about getting the right item, accept all forms of payment and helpfulness of sales people. Thereafter, the study identifies Factor 2 (F2) as Better Assortment and After Sales Policy which includes the following variables: brand selection and variety, post-purchase service, exchange refund policy, quality of merchandise, availability of products in stock and ability to compare products. Finally, it identifies Factor 3 (F3) as Product and Its Importance which includes the following variables: speed of selection and purchase, social and family experience, shipping and handling charges and easy browsing of the products which influence consumer behaviour. Research limitations/implications – The findings of this study are purely based on the information provided by the respondents. The sample forms little part of the total population. Originality/value – Though online retailing in India is in nascent stage, yet it has shown its presence. To sustain and grow in a competition, the retailers need to understand the purchasing behaviour and factors influencing purchase behaviour of consumers. The behaviour of consumers is unpredictable and dynamic. The study suggests offline and online retailers to adopt policies or strategies after considering three factors extracted from the study to attract and retain consumers to their stores. Further, it also provides ideas to consumers to choose their retailers on comparative advantages basis.

Al Serhan, Yahya N. ; Julian, Craig C. ; Ahmed, Zafar U.

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-05-2013-0043

Purpose – The purpose of this paper is to develop and justify a theoretical framework for analyzing the relationship between manufacturing strategy, business strategy, time-based manufacturing competence, capability and competitiveness and their impact on firm performance for firms operating in the manufacturing sector. Many executives and scholars have argued that time is an important component for developing a brilliant strategy to achieve a sustainable competitive advantage for the firm. Design/methodology/approach – This paper provides a theoretical framework primarily concerned with the relationship between time-based manufacturing competence, competitive priorities and firm performance. The framework suggests that firms focusing on time as a strategic factor at both strategic levels – business strategy and manufacturing strategy – can achieve a multi-competitive advantage, and, in turn, high performance. Findings – To realize the level of performance associated with time-based manufacturing competence, it is essential for firms to identify the areas in which time can be reduced. These include reduction in design lead time, product concept to production; time-based competition for product-to-market firms; time-based manufacturing competence; product development activities; fast-to-product; and customer service. Originality/value – This article provides a theoretical framework for linking manufacturing strategy to business strategy and performance to help expand the body of knowledge for other researchers to follow.

Cline, Anthony ; LeMay, Steve ; Helms, Marilyn M

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-02-2013-0013

Purpose – The purpose of this paper is to apply the goals and processes of reverse logistics related to disposal and renewal to an industry example, in this case, the tufted carpet manufacturing industry. With an industry-wide coalition, the Carpet America Recovery Effort (CARE), the carpet industry offers lessons for other industries on how to create new products from waste, how to develop systems to process this waste, how to encourage the development of infrastructure for reprocessing and how to remove barriers to recovery. A major part of the US floor covering cluster is headquartered around Dalton, Georgia. The industry has formed a coalition to divert manufactured carpet from landfills and find other uses for used carpet. This industry-wide coalition, known as the Carpet America Recovery Effort, offers many lessons for other industries on creating new products from waste, developing systems to process this waste, encouraging the development of infrastructure for reprocessing and removing barriers to recovery. Design/methodology/approach – Academics have proposed several frameworks for examining reverse logistics. In this study, the framework developed by de Brito and Dekker (2004) is utilized because it focuses on essential forces in reverse logistics, asking four simple questions: Why? What? How? and Who? To this list, is added a question: Where? This modified framework is applied to the carpet manufacturing industry, focusing on post-consumer carpet. Findings – The carpet industry is becoming a model for developing renewal supply chains that take waste products and create new ones. Although disposal remains the largest part of the end-of-use supply chain for carpet, this is changing, though not rapidly enough to suit the industry. Originality/value – This case focuses on what the industry is currently doing and on the impediments it has encountered in developing these chains. Renewal chains may well dominate the future of reverse logistics in the industry, but much work remains. The paper concludes with a discussion and areas for future research.

Kanso, Ali ; Nelson, Richard Alan ; Kitchen, Philip James

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-10-2013-0108

Purpose – This study aims to explore advertising strategies by US corporations selling consumer services overseas. Attention is extended to determining the type of standardized advertising (pattern vs prototype) that US headquarters tend to use in international campaigns, identifying major obstacles that impede advertising standardization and examining linkages between the use of creative approaches (standardized vs localized) and firms ' length of business and sales volume. Design/methodology/approach – Using a descriptive approach and rigorous sample, the authors surveyed international advertising managers of US firms selling consumer services. A 57 per cent response rate provided the basis for testing two research questions and two hypotheses. Findings – US firm headquarters tend to lean more toward the use of prototype standardization than pattern standardization. The major impediments of standardized campaigns are perceived to be cultural differences, alternatives in consumer lifestyles, language diversity, variations in worldwide market infrastructure and government regulations. Research limitations/implications – While demonstrating correlations in some areas, the authors offer some suggestions for future investigation of this important topic. By focusing on services marketing, the study does contribute to the extant discussion concerning advertising standardization/localization from the context of US-based services businesses marketing internationally. Practical implications – The outcomes indicate that established business firms and firms with large sales volumes, compared to younger business firms and firms with small sales volumes, are more likely to use the standardized advertising approach than the localized approach. Originality/value – The paper offers new insights into the standardized/localized debate where advertising researchers have tended to overlook the significance of service businesses in the international context.

Alsmadi, Sami ; Khizindar, Tariq

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-02-2013-0011

Purpose – This paper aims to examine consumers’ attitudes toward marketing practices and consumer rights in Jordan, based on an empirical investigation of university students. The study refers to John Kennedy’s bill of four consumer rights: the Right to Safety, the Right to be Informed, the Right to Choose and the Right to be Heard. Design/methodology/approach – This paper depends on a convenience sample of 381 students, using a drop-off method, with a structured, self-administered questionnaire to measure consumer attitudes regarding the four basic consumer rights, as listed above, utilizing a five-point Likert scale measure. Findings – The overall findings show that the current consumers’ attitudes toward marketing practices related to protection of consumer rights is not highly favorable, indicating that more work will be needed for improvement, with more attention to consumers’ Right to be Heard. The study urged marketers and public policymakers in Jordan to reconsider the way consumer rights were being approached by marketing practitioners. Originality/value – The study is unique by virtue of its nature, scope and way of empirical investigation, as it explores the status of perceived consumer rights for the first time in Jordan, drawing on John Kennedy’ model. The study calls upon marketers and public policymakers to pay more attention to the current status of consumer rights, with implications for better business strategies and more useful legislations pertaining to consumer protection.

Bepari, Md Khokan

2015 International Journal of Commerce and Management

doi: 10.1108/IJCoMA-11-2012-0072

Purpose – The purpose of this study is to examine the relative and the incremental value relevance of book value and earnings in the Australian market in the context of the 2008-2009 global financial crisis (GFC) and the non-crisis period (NCP). Design/methodology/approach – Least square regressions are used to examine the research questions. Changes in the coefficient estimates and the relative explanatory power (adjusted R 2) of book value (BV) and earnings between the GFC and the NCP are examined. Findings – The findings suggest that both BV and earnings are value relevant in the Australian market surrounding the GFC. There were structural breaks in the association of BV and earnings with firms’ market value. The value relevance of earnings has increased and that of BV has decreased during the GFC compared to the NCP. During the study period, the explanatory power of earnings was greater than that of the BV. Research limitations/implications – The single country context examined limits the generalisability of the findings. Practical implications – The importance of this study lies in its showing the sustained importance of earnings in security valuation even during a period of macroeconomic uncertainty. Australian accounting standards have been shaped by a balance sheet focus. The recent move towards the fair value-based International Financial Reporting Standards (IFRS) has further enhanced the focus on the balance sheet. Nevertheless, the evidence in the present study demonstrates that even for a country with a balance sheet focus, the value relevance of earnings increases during a GFC. Hence, it is the earnings number, rather than the balance sheet, which should receive greater attention from accounting regulators and auditors. Originality/value – This is the first known study to examine the value relevance of fundamental accounting information, such as BV and earnings, in the context of the 2008-2009 GFC. It extends prior research in the context of the 1997 Asian financial crisis and provides evidence on the impact of a worldwide exogenous shock on the value relevance of BV and earnings from a relatively mature and developed country with different legal, institutional and enforcement backgrounds.