Asia-Pacific Journal of Business Administration

Wong, Koi Nyen; Tan, Bee Wah; Goh, Soo Khoon

2023 Asia-Pacific Journal of Business Administration

doi: 10.1108/apjba-05-2021-0218

The Association of Southeast Asian Nations (ASEAN) has evolved into ASEAN Economic Community (AEC), which aims to pursue a single market and production base to transform ASEAN into a dynamic, competitive and global region. ASEAN is inherently heterogeneous that potentially could promote further economic integration, fundamentally, through the interactions between intra-regional outward foreign direct investment (OFDI), export trade and economic growth. Hence, this paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries.Design/methodology/approachThis paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries, using regional panel data based on Dumitrescu and Hurlin (2012) non-causality analysis, which allows us to take into account of the heterogeneity in terms of causal relationships.FindingsThe empirical study shows bidirectional causality between intra-ASEAN export and intra-ASEAN OFDI, a bidirectional causality between intra-ASEAN export trade and intra-ASEAN economic growth and a unidirectional causality running from the real GDP of ASEAN-10 countries to intra-ASEAN OFDI.Research limitations/implicationsThe findings have implications for the extent of intra-ASEAN production fragmentation, policy formulations for furthering intra-regional OFDI, and trade to achieve the ASEAN integration agenda.Originality/valueThe main contribution of the current study is to use the panel causality analysis for an emerging dynamic region, specifically, the AEC. As far as we know, this is the first study ascertaining whether there is a causality relationship between intra-ASEAN OFDI, intra-ASEAN export trade and economic growth of ASEAN-10, which is a longstanding objective of ASEAN integration agenda.

Githaiga, Peter Nderitu

2023 Asia-Pacific Journal of Business Administration

doi: 10.1108/apjba-06-2021-0259

This study examines whether income diversification moderates the relationship between intellectual capital and bank performance among East African banks.Design/methodology/approachThe study uses a sample of 53 East African banks and a panel dataset for the period 2010–2018. The hypotheses are tested through a hierarchical regression model.FindingsThe regression results indicate that intellectual capital (IC) significantly affects bank performance. Further, the study finds that income diversification has a negative and significant effect on bank performance. The results indicate that income diversification reduced the overall impact of IC (Value Added Intellectual Capital (VAIC)) efficiency on bank performance for the moderating influence. However, the moderating role of income diversification on the relationship between individual components of VAIC (HCE, SCE and CEE) varies. While income diversification enhanced the impact of structural capital efficiency (SCE) on bank performance, it also reduced the effect of human capital efficiency (HCE). Additionally, income diversification did not moderate the impact of capital employed efficiency (CEE) on bank performance.Originality/valueThis study contributes to the literature by demonstrating that non-traditional banking activities influence the IC and bank performance relationship, which is scanty in the existing literature.

Abuhussein, Tala; Magatef, Sima

2023 Asia-Pacific Journal of Business Administration

doi: 10.1108/apjba-08-2021-0393

This research considers the role of social media platforms and their impact on individuals' eudaimonic well-being, and aims to help develop a social marketing programme in the future that would enable students in Jordanian universities to flourish, by focussing on their social media drivers and overcoming their challenges in an attempt to improve their psychological well-being (PWB).Design/methodology/approachThe authors used qualitative research examining lived experiences and behaviours around social media use. The authors conducted 39 semi-structured interviews with students at various universities across Jordan, alongside an online survey with open-ended questions, which were based on six PWB dimensions: environmental mastery, personal growth, purpose in life, self-acceptance, autonomy and positive relationships with others.FindingsSocial media use and advertising were found to positively impact students' self-acceptance and relationships with others but to negatively impact their autonomy. They were found to have different impacts on students' sense of purpose in life and personal growth, depending on the content shared on their platforms.Originality/valueThe ethical debate surrounding social media amongst students indicates that such social marketing programmes might stimulate individuals' sense of control over their environment, encourage openness to new experiences, and give their lives a beneficial direction. The study makes recommendations for the creation of an evidence-based social marketing programme that is extrinsically focussed on increasing resilience, creating an audience persona and building awareness of PWB.

Karajeh, Ahmad Ibrahim

2023 Asia-Pacific Journal of Business Administration

doi: 10.1108/apjba-06-2021-0260

This study covers all banks listed on the Amman Stock Exchange. It used (1) dividend-paying status, dividend changes and dividend persistence to measure dividend quality, (2) a checklist instrument consisting of 40 items to measure financial disclosure quality, (3) nationality and (4) the percentage of females and males on the board of directors to measure board diversity. Hierarchical regression analysis was employed to investigate the influence of the board diversity on the relationship between financial disclosure quality and dividend quality.Design/methodology/approachThis study investigates the relationship between financial disclosure quality and dividend quality among Jordanian-listed banks. Moreover, it examines the moderating effect of board diversity on the relationship between financial disclosure quality and dividend quality.FindingsThe results in this work imply that banks with high financial disclosure quality have high-quality dividends. Furthermore, nationality and females on the board of directors play a main role as moderators that influence managers' motivations toward the quality of financial disclosure practices and bank dividends. This paper shows that the boards in Jordanian banks have not changed dividend policies and tend to follow a long-term fixed strategy for paying earnings.Originality/valueBecause of the limited number of practical research on the nexus between financial disclosure quality and dividends quality, this study fills a gap in the literature by examining the relationship between them. In addition, a lack of research exists on the effects of board diversity on the nexus of financial disclosure quality and dividends quality. Therefore, this study makes an original contribution to the literature by using nationality and females and males on the board of directors as moderating variables to investigate the effects of board diversity on the relationship between financial disclosure quality and dividend quality among Jordanian banks.

Xiaomei, Liu; Yao, Yao; AlHares, Aws; Shahab, Yasir; Yue, Sun

2023 Asia-Pacific Journal of Business Administration

doi: 10.1108/apjba-07-2021-0316

To investigate the impact of tax enforcement on (a) debt aggressiveness (DEA) and (b) dynamic adjustment of capital structure in Chinese listed firms.Design/methodology/approachThe authors estimate the target capital structure by employing the different models. This study uses data of Chinese A-share listed firms from year 1998 to 2015.FindingsThe study suggests that the greater the intensity of tax enforcement, the more radical the listed companies' debt policy. The macroeconomic status and nature of property rights have significant moderating effect on the positive relationship between tax enforcement and DEA of listed companies. Further, tax enforcement has a significant impact on the dynamic adjustment of capital structure.Practical implicationsResearch conclusions are conducive to tax administration departments to understand the economic consequences of tax enforcement and further promote tax administration efficiency. Additionally, listed companies can rationally adjust their capital structure to strengthen tax enforcement.Originality/valueThis research helps extend the influencing factors of corporate debt decision-making and capital structure dynamic adjustment to the level of tax enforcement and provide new evidence on the effects of tax enforcement on corporate capital structure.

Yildiz Çankaya, Sibel; Can Saglam, Yesim; Sezen, Bülent

2023 Asia-Pacific Journal of Business Administration

doi: 10.1108/apjba-07-2021-0345

The aim of this conceptual study is to analyze the effects of state-of-the-art research streams on supply chain risk management (SCRM) based on organizational theoretical background and direct future research toward the use of other related organizational theories. This paper seeks to provide a framework for understanding various organizational theories that can impact the understanding of SCRM.Design/methodology/approachA systematic literature review on articles published from 1998 to 2020 was conducted manually in the following databases: Emerald, Science Direct, Taylor & Francis Online, and Wiley online library. Among these articles, the paper by Smeltzer and Siferd (1998) is the first article published on the topic. Therefore, that serves as a starting point for the papers' analysis. A total of 109 articles have been selected and reviewed in detail.FindingsThe results of the study indicate that the articles which utilize theories in SCRM research have been mostly published in the last three years. The quantitative and case studies have been prevalently applied methods in the articles. In total, 34 theories are listed from the investigated articles. The four commonly studied theories among these are the information processing theory, transaction cost theory, contingency theory, and resource-based view.Originality/valueThis paper is the pioneer in the sense that the paper specifically and directly reviews the SCRM literature in terms of organizational theory usage. For future research, this study offers a diffusion of innovation (DOI) theory that explains the factors which can affect the adoption or diffusion of SCRM practices.

Rundh, Bo

2023 Asia-Pacific Journal of Business Administration

doi: 10.1108/apjba-11-2021-0560

The purpose of this paper is to explore international market development for mature products and practices used in a novel business context.Design/methodology/approachTaking a qualitative approach, the case study method was chosen to investigate how firms develop markets in relation to a new international business context. Critical international decisions are analysed using a managerial perspective.FindingsThe success of international ventures depends on managerial learning and effectiveness. In this paper, the authors argue that decisions about international market development can add significantly to the understanding of how business firms enter and develop markets in novel business contexts. Two case studies show different approaches for meeting challenges in distant markets. Four propositions are developed.Originality/valueA theoretical contribution of this study is the importance of factors that explain international market development decisions in novel business contexts. The balance between incomplete knowledge and making resource commitments is of central concern to international managers. Some of this is tacit knowledge that a firm achieves and learns during the process of market development and other knowledge can only become available after an actual market entry. A second theoretical contribution of this study is the significance of contextual market knowledge in a novel business context.