History and managerial culture in Singapore: “Pragmatism”, “openness” and “paternalism”

This paper examines the historical evolution of culture and management in Singapore, the existence of cultural fluidity in the society and the openness of Singapore to foreign management in relation to the changes in the environment resulting from modernization and development. Management in Singapore has always been multinational in origin. It has also been influenced considerably by the Chinese family system. It is in a state of flux; new and foreign practices are continually assimilated and adapted. Inspite of the wide variations in management practices, Singapore management remained characteristically pragmatic and open as well as paternalistic.Dr. Chong Li Choy is Senior Lecturer in the School of Management, National University of Singapore.     

Paths to Common Ground? A Rejoinder to Dewey's Response

While subsequent discussion in this Review has failed to reconcile the merger policies proposed by Dewey and Keyes, it has suggested that they are not as far apart as they seemed at first reading. It now appears that both writers advocate a serious critical consideration of the efficiencies claims advanced by proponents of otherwise unacceptable mergers. Moreover, there may be a possibility that Dewey's special large-firm merger control could be defended on grounds which would not conflict with Keyes' proposal but would simply complement it.     

Transcending Paradox: The Chinese “Middle Way” Perspective

Western thought is noted for its strengths in categorization and analysis; Eastern, or Chinese thought, is noted for its integrative and encompassing nature. This article seeks to bridge the two. Specifically, it aims to enrich Western thinking and the existing body of paradox literature by proposing the idea of paradoxical integration, a concept derived from the Chinese middle way philosophy. Paradoxical integration, the notion that two opposites (such as self and other) may be interdependent in nature and together constitute a totality (integration), is introduced as one means of transcending paradox and the conventional Western conceptualization of exclusive opposites. It suggests how we can apply the concept of interdependent opposites in a both/and framework to foster reconciliation of the apparent polarities of such dichotomies as competition and cooperation. The article concludes with a discussion of the broad implications of the concept of paradoxical integration upon both academic research and business practice.An erratum to this article can be found at     

Location and Implementation Issues in Support Function FDI: The Globalisation of Matsushita Electric Industrial Co., Ltd.

This research looks at foreign direct investment in support functions such as R&D and employee training facilities, through a study of the globalisation of Matsushita Electric Industrial Co., Ltd. Linkages among investments are highlighted. Centripetal forces are identified which pull later-stage FDI to the sites of initial investments, resulting in the creation of integrated, self-contained value chains overseas. Specific examples of R&D and employee training FDI suggest that while the purpose of support function FDI is to gain cost or differentiation benefits, successful implementation requires effective knowledge creation and transfer capabilities.     

Social categorisation in Philippine organisations: Values toward collective identity and management through intergroup relations

The popularity of American-style management techniques in the Philippines implies an inevitable transition from the traditional values rooted in interdependent collectivism to the modern values of independent individualism. It is argued that an indigenous style of Filipino management is viable and imperative, which recognises the salience of collective identities in organisations. Based on a theory of social categorisation, a conceptual model of management through intergroup relations is presented. The main contention is that, in place of a dysfunctional conflict between Americanised management tactics and contemporary Filipino values, organisational effectiveness could ensue from a synchronic synergy between Filipino-style management tactics and the social categorisation effects of intragroup convergence and intergroup divergence.     

The NCAA Cartel and Competitive Balance in College Football

The NCAA regulates college football player recruiting, eligibility, and compensation. The economic theory of cartels suggests that one consequence may be reduced competitive balance. The enforced restrictions inhibit weak teams from improving, and protect strong teams from competition. A stratification is implied which should be evident over time as less churning in national rankings and conference standings, and fewer schools achieving national prominence. I test this general hypothesis by comparing various competitive balance measures for about 25 years before and after NCAA enforcement began in 1952. The hypothesis is supported by all measures at both the national and conference levels.     

Testing for Competitiveness of Markets for Long Distance Telephone Services: Competition Finally?

Telecommunications regulatory policy is driven by rhetoric and myth concerning the competitiveness of long-distance service. Relying on behavioral tests for competitiveness, this review brings up to date analytical work establishing the pattern of competition or the lack of competition since the 1984 AT & T divestiture. Through mid 1997, the three large long-distance carriers in setting their price-cost margins have managed to carry through on a previously established strategy of tacit collusion in both message toll services and WATS-type business services. The remarkable results have been that price-cost margins increased while sales concentration declined. This general pattern is not contradicted by the most recent offering of 15-cent per minute one price on new discount plans since that too implies an increase in carriers' price cost margins as concentration continued to decline.     

Cultural dimensions in management and planning

The nature of management skills is such that they are culturally specific: a management technique or philosophy that is appropriate in one national culture is not necessarily appropriate in another. The paper describes the scope of (work-related) cultural differences as they were revealed by research in more than 50 countries around the world and discusses how these differences affect the validity of management techniques and philosophies in various countries within the functioning and meaning of planning.The author is with the Institute for Research on Intercultural Cooperation, the Netherlands. This paper is a shorter version of the first part of a report MAN DEV/28. Culture and Management Development, written on behalf of the UNDP/ILO Interregional Project Co-operation among Management Development Institutions and published by the International Labour Office, Management Development Branch, Training Department, Geneva 1983.     

Max weber revisited: Some lessons from East Asian capitalistic development

Weber's thesis of the incompatibility of the Confucian ethos and rational entrepreneurial capitalism has been challenged by the economic miracles of many East Asian countries. One thesis presented here is that Confucianism is compatible with and has facilitated Asian capitalism by its influence on managerial values and practices. According to Weber, the release of tensions created by Calvinism was an important motivating force in the development of capitalism in the Occident. Confucianism offers a parallel mechanism to the profit-seeking drive in Western capitalism. We show that, in Confucian societies, there also exists tensions — in this case, between ideals and reality. These tensions are released through the Confucian concept of a ceaseless pursuit of renovation, a motivational mechanism for the development of capitalism in East Asian societies that parallels the West. Weber held that the classic model of bureaucracy, with impersonality at its core, is essential to the development and continuation of capitalism. Our second thesis is that humanism is an important element in Confucian bureaucracy and that humanistic bureaucracy can be both effective and efficient for the development of capitalism.     

Lysine and Price Fixing: How Long? How Severe?

In October 1996 the Archer Daniels Midland Company(ADM) pleaded guilty to criminal price fixing withrespect to sales of lysine and agreed to pay a $70million fine. Earlier, in August 1996 two Japaneseproducers and a Korean producer of lysine had agreedto plead guilty to criminal price fixing charges. Andearlier still, in July 1996 ADM and the two Japanesecompanies settled the civil suits filed by some harmedbuyers by agreeing to pay a sum of $45 million.It is this last event that serves as the focus forthis paper. The adequacy of the settlement amount wasa major area of dispute. Connor (1996, 1997, 1998)has claimed that the trebled damages to lysinepurchasers were an order of magnitude larger. Crucialto Connor's conclusions are his assumptions as to thetime period during which the conspiracy had an effecton prices and the but for price that otherwise wouldhave prevailed in the absence of the conspiracy. Thispaper will argue that Connor substantiallyover-estimated the period of the conspiracy andunder-estimated the but-for price.     

Qualified audit reports and costly contracting

This paper investigates the financial characteristics of the population of listed Singaporean companies receiving first-time qualified audit reports. It develops and tests hypotheses which take into account the costly contracting implications of a qualification for both the auditor and client. A matched pair design is used as a control. Results show that firms receiving qualified reports are significantly less profitable and liquid and have significantly more debt than the control in the year of qualification. Profitability and liquidity are shown to have declined in the four-year period up to the qualification, while debt levels have increased. These results may partially explain why the general (overseas) no-effect result from share market announcement date studies exists; the qualification per se is a dated signal of financial deterioration that has existed for at least the previous four years. Qualification is also significantly associated with auditor type and ownership of the firm, and is also dependent upon whether or not the firm has revalued its assets or changed accounting methods. It is more likely that a qualified report will be issued by a non Big 8 auditor in Singapore to a firm which has a higher proportion of the equity owned by the management. Qualified firms are more likely to have revalued assets and changed accounting methods to increase income than the control group. The strength of the results is also shown to depend on the nature of the qualification. Companies receiving severe qualifications (ie going concern, not true and fair, and unable to form an opinion) have far more significant differences than their pairs compared with those firms receiving moderate or other qualifications.The authors are Senior Lecturer, School of Accountancy and Business, Nanyang Technological University and Professor, Department of Accounting, University of Sydney, respectively. All correspondence should be addressed to Yoke-Kai Chan, School of Accountancy and Business, Nayang Technological University, Nanyang Avenue, Singapore 639798.This paper has benefited from the comments of an anonymous referee, participants at the Australasian Banking and Finance Conference, the 15th Annual Congress of the European Accounting Association, and at workshops at the Australian Graduate School of Management, the Royal Melbourne Institute of Technology, the Nanyang Technological University and the University of Southern Queensland, and in particular those of Greg Whittred, Steve Taylor, Roger Simnett, Kim Sawyer and Don Stokes. Financial support from the National University of Singapore is gratefully acknowledge. The usual caveats apply.     

Information sources used to select different types of management consultancy services

Understanding how professional services are purchased is vital to the success of the firms that provide such services. Although recent research has provided some insights into how consumers purchase professional services, little is known about how organisations buy these services. Our study, using data collected from 253 Australian organisations, describes an important part of the organisational buying process, namely pre-purchase information search. More specifically, we examine the influence of a range of information sources on the choice of a management consultant in the following areas: strategic and economic planning; marketing; human resource management; information technology; production planning and logistics. The results show that information sources related to an organisation's internal network (ie, discussions inside the company, and past dealings with a consulting firm) were by far the most influential information sources in choosing a consultant. Further, the least influential sources were impersonal advertising (ie, advertising in the business press, corporate brochures and professional directories). Only minor differences in the influence of the information sources were found across the various types of consulting assignment.(The authors' names are in alphabetical order.)     

Industry Update: Airlines

Recent developments in the airline industry are notable in three respects. A rising tide of concentration, which is accelerating and expanding through a proliferation of alliances among major carriers at home and abroad; a recurring resort to predatory pricing by the majors which continues to subvert competition by low-cost independents; and an intensification of the tacitly collusive, noncompetitive pricing behavior expected to emerge in such a highly concentrated structural milieu.     

The motivation and need satisfaction of Papua New Guinea managers

Maslow theorised that people share a concern for five levels of needs. These are arranged in a hierarchy in which higher level needs become more dominant as lower level ones are satisfied. In order of prepotency the needs are: security, social, esteem, autonomy and self actualisation. Haire et al (1966) and Clark and McCabe (1971) found a different but consistent ranking of need importance and satisfaction from that proposed by Maslow. They surmised that despite cultural differences and different stages of economic development, managers from different countries attached similar importance to the five need categories.The applicability of the Haire et al conclusion was tested by comparing the feelings Australian and Papua New Guinea (PNG) managers attached to the five need categories. Australia and PNG are neighbours. Australia is a developed country where individualism is a feature of life. PNG, however, is a developing country where wantokism permeates almost every facet of people interaction. It was found that the PNG results on need importance and satisfaction was dissimilar to that of Australia. The PNG results showed a remarkable similarity with those of the developing countries. Cultural differences and differing stages of economic development, it appears, affect the degree of importance attached to the five need categories and these factors should be taken into account when designing organisation structures and setting up reward systems.     

Great School Milk Conspiracies Revisited

This paper revisits a particular case involvingtwo dairy processing companies accused ofrigging bids in northern Kentucky schooldistricts during the 1980s. Evidence andarguments presented to support a conclusion ofovert collusion are reassessed. Analyses ofincumbency rates, market shares, bid levels, biddispersions, bid distance relationships, exactbidding differentials, and bids from hellindicate that the two dairies may have beenengaged in tacit collusion instead of overt collusion.     

The Spillover Effects of Industrial Action on Firm Profitability

While it is generally accepted that strikes can have a negative impact on a firm's performance, the direct effects of a strike on the affected firm may be only one component of the total impact resulting from the action. The existence of indirect or spillover effects can also have important implications for the economic performance of competing firms. This paper uses a panel of firm-level financial and strikes data for a large sample of firms in Australian manufacturing to determine the extent of direct and spillover effects of industrial action.     

The state of East Asian banking structure and activities in the United States

This paper examines the structure and activities of East Asian banks in the USA in terms of their institutional components, legal environment, asset size and market structure, loan activities, geographical distribution and area of specialization. The discussion includes 10 Asia Pacific countries. The final section presents prognoses on the domination of Japanese banks as well as those of the two Chinas.Faramarz Damanpour is a Professor of Finance and International Business at James Madison University, U.S.A.     

The management of Chinese small-business enterprises in Malaysia

This paper traces the development of Chinese business enterprises in Malaysia, a multiracial country where the Chinese comprise 30 per cent of the population. Most of the Chinese enterprises are very small. Reference is made to the sixteen Principles of Good Business Practices which originated from ancient China. It is argued that the strengths of the small Chinese organization such as strong family ties, sharing and pooling of resources, efficient use of manpower, practice of thrift, use of low gearing, flexibility of operations, etc., may become weaknesses if the business expands. ThePok Chow or labour contracting system, and the role of the Chinese business associations and guilds are also discussed. Since the promulgation of the new economic policy in 1970, there is greater urgency for Chinese enterprises to modernise, so as to adapt to changes in Malaysia.This paper has been submitted as a chapter of a forthcoming book entitled Managing in an Asian Plural Society. As one of the authors of this book, the writer of this paper is indebted to Tan Sri Datuk Hamzah Sendut and Mr. John Madsen, the other two authors, for permitting him to present this material at this conference.Professor Gregory Thong Tin Sin is chairman of the Division of Business Administration, Faculty of Economics and Administration, University of Malaya.     

Science,technology and engineering: Building lifelong bridges

In response to what is envisaged as a crisis in scientific and technological literacy, various organizations and governmental agencies have put forward recommendations for enriching students' science and technology experiences in formal and informal learning environments. This paper examines one such organization — the Professional Engineers Ontario — and their Innovators in the School initiative. Through this student outreach programme, engineers, scientists and technologists volunteer their time to visit elementary and secondary level students, encouraging them to pursue science, technology and engineering careers. In particular, this research identifies issues that the Innovators (interestingly, over half are women) consider to be important for promoting a positive image of science to young people. First, the paper considers what an image of science might potentially be. Second, it addresses the question of how Innovators and other educators (teachers, policy-makers, curriculum planning teams) might promote this positive image in the classroom and school.     

The role of the ideal organization in comparative management: A cross cultural perspective of Japan & Korea

It is popular to talk of the Confucian Work Ethic when explaining the successes of Japan, Korea, Taiwan, Hong Kong and Singapore. This is not an accurate impression. The authors of this article found significant differences in management practices — both actual and ideal — between Japan and South Korea.Professors Lane Kelley, Reginald Worthley and Harry Lie are from the College of Business Administration, University of Hawaii while Professor Arthur Whatley is from the College of Business Administration & Economics, New Mexico State University.