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.     

Research on asian cultures and management: Some epistemological issues

This paper highlights the major issues raised in the conference Culture and Management Styles in Southeast Asian countries and discusses the espistomological and methodological problems of doing comparative management research in general as well as in the region.The paper identifies the themes which emerged from the conference discussions as (1) the fundamental rationale for research and the apparent weakness in making it explicit, (2) the questions of epistomology as regards causation, and the (3) more mundane issues faced in conforming to standard research paradigms. These issues are discussed under the following headings: What is to be included, subjects' espoused theory or theory in use, idiographic versus nomothetic approaches, more universal variables, problems of defining culture. The implications and significance of different approaches and disciplines concerning these issues are considered, and guidelines for future research in the area are suggested.Professor Gordon S. Redding is with the Department of Management Studies, University of Hong Kong.     

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.     

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.     

Interconnection in Network Industries

Recent deregulation of telecommunications in the U.S. and elsewhere has highlighted the importance of interconnection in network industries. In this paper, we analyse interconnection in a deregulated network where the participants compete in the final retail market. We consider both the case of a mature industry as well as one where a new entrant challenges the incumbent. In the later case, network externalities allow the incumbent to use the terms of interconnection to maintain its dominant position. Moreover, in either case, competition in the retail market can be undermined by collusion over access prices. We discuss the implications for some of the provisions of the new U.S. Telecommunications Act, specifically mandatory interconnection and reciprocity of tariffs, comparing these to the simple bill and keep rule.     

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.     

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.     

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.     

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.     

Constructing design and technology an early years perspective

This paper argues that a pedagogic model grounded in both constructivist and Vygotskyian theory can be consistently applied throughout Design and Technology education. The constructivist model outlined, is borrowed from the work of Rosalind Driver in Science education and applies a perspective grounded in Piaget and moderated by Ausubel. This perspective involves a clear recognition that: The most important single factor influencing learning is what the learner already knows. This argument is extended further to cover the acquisition of scientific, design and technological capabilities. The paper focuses on how effective learning is achieved when new understandings are related to appropriate existing concepts and cognitive structures. Vygotsky's conception of the zone of proximal development is utilised to show how cognitive functions that have not yet matured and which the child is unable to apply independently, can be productively applied, with the assistance of an educator. Child development is, from this perspective, dependent upon existing competencies, knowledge and understandings being challenged and extended with support, it is argued however, that it is essential that the challenges are not so great or irrelevant that the child experiences failure. The consequences of allowing individuals to experience educational failure are widely apparent in the context of science and technology throughout our society. The role of play in the early years is seen as particularly valuable in this context. From this perspective the essential task for the teacher must be to clearly identify the limits of proximal development and to restrict as far as possible their teaching to this zone. The identification of such limits demands an appreciation of progression within the learning context. The paper argues that the structure of the attainment targets within the UK Design and Technology National Curriculum provides teachers with a framework of constructive scaffolding within which children may be given the maximum freedom and autonomy while developing their practical capability in designing and making. This heuristic framework may be lost in the application of the new proposals for Design and Technology.     

China's Labour-Management System Reforms: Breaking the ‘Three Old Irons’ (1978–1999)

This article systematically examines the fundamental changes that have taken place in China's labour-management system since China embarked on its economic reforms in 1978. The system was, from the 1950s onwards, characterized by what were called the three old irons, i.e. life-time employment (the iron rice bowl), centrally administered wages (the iron wage), and state-controlled appointment and promotion of managerial staff (the iron chair). This study reviews the degree to which the reform process is breaking these three old irons and is arguably replacing them with a hybrid human resource management model, albeit with Chinese characteristics, that reflects the influence of foreign multinational corporations (MNCs) that have invested in China.     

The Meaning of Size: Output? Scope? Capacity? The Case of Airline Hubs

The size of a production facility has different specific meanings depending on the nature of the business decision at issue. We present a general theoretical model illustrating the profit-maximizing firm's interrelated choice of plant size in long-run, medium-run and short-run contexts. The model is then estimated for U.S. airline hubs. The results suggest that competition operates primarily via the capacity (long-run) size decision. A game-theoretic simulation based upon the results is consistent with the argument that the smaller of two hubs sharing an airport is at a significant competitive disadvantage.     

How do Participants in Research Joint Ventures Diversify?

This paper investigates the incentives to participate in research joint ventures from the perspective of overall business diversification behavior. It presents evidence that: (a) RJVs tend to put together industrial activities differently than single firms; and, (b) the diversification decisions of RJV participants are triggered partly differently than the analogous decisions of firms that have not participated in the examined large set of RJVs. The results indicate that RJVs facilitate experimentation. They also indicate that the policy debate on inter-firm cooperation in R & D must consider the likely differences in strategic behavior between frequent RJV participants and other firms.     

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.     

Heterogeneities within Industries and Structure-Performance Models

This paper tests whether the results from standard structure-conduct-performance [SCP] models estimated at the industry level are sensitive to the degree of heterogeneity of the firms in the industries. Industries are separated into homogeneous and heterogeneous categories depending on whether the profit rates of firms within an industry converge on a common value or not. In homogeneous industries we find that both the long-run projected returns on assets for the industries and Bureau of Census price-cost-margins are well explained by variables usually included in SCP models, as in particular industry concentration. In contrast, few if any of the usual SCP-model variables are statistically significant in the regressions for heterogeneous industries.     

The Egalitarian Leader: A Comparison of Leadership in Australia and New Zealand

This article compares leadership in Australia and New Zealand based on data collected as a part of the GLOBE (Global Leadership and Organizational Behavior Effectiveness) 62-nation culture and leadership project. Exploratory and confirmatory factor analyses were used to demonstrate that etic (universal) dimensions of Charismatic and Self-Protective leadership are evident in both cultures, but that the dimensions have emic (local) culturally determined manifestations. These emic manifestations were stronger in New Zealand than in Australia. Leadership effectiveness incorporated the negative emic dimension of Bureaucratic leadership (both countries), and the positive emic dimension of Egalitarian leadership in Australia and Team leadership in New Zealand. Both models of leadership nonetheless represent styles of leadership based on egalitarian principles.     

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.     

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.     

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.)