Robotics: Challenges for the human resources manager

Robots present industry with the exciting possibility of improving productivity and cutting costs. But there are other kinds of costs involved—the human costs—and it is these that the human resources manager must keep to a minimum through careful planning and implementation of the new technology.     

Pricing and Hedging of Discrete Dynamic Guaranteed Funds

We derive a risk‐neutral pricing model for discrete dynamic guaranteed funds with geometric Gaussian underlying security price process. We propose a dynamic hedging strategy by adding a gamma factor to the conventional delta. Simulation results demonstrate that, when hedging discretely, the risk‐neutral gamma‐adjusted‐delta strategy outperforms the dynamic delta hedging strategy by reducing the expected hedging error, lowering the hedging error variability, and improving the self‐financing possibility. The discrete dynamic delta‐only hedging not only causes potential overcharge to clients but also could be costly to the issuers. We show that a naive application of continuous‐time hedging formula to a discrete‐time hedging setting tends to worsen these possibilities.     

Corporate implementation of socially controversial CSR initiatives: Implications for human resource management

An organization's success in recruiting, selecting, and retaining employees can be attributed, in part, to reactions to a firm's CSR activities. Today, organizations appear to be more frequently pursuing CSR initiatives that are related to social issues. Unlike CSR initiatives which are unrelated to social issues, those that are attached to social causes are more likely to be perceived as controversial. Consequently, how individuals view such actions can impact their perceptions of the firm and may lead to changes in individual behavior. Grounding this work in social identity theory, we explore the effect controversial CSR actions can have on HRM functions. The goal of this effort is to explore and delineate how this shift in CSR may alter the nature of the CSR-HRM relationship and to examine the potential implications for HRM practice. Future directions for research and HRM practice are discussed.     

Factors influencing strategic alliance outcomes in a manufacturing supply chain: Role of alliance motives,interdependence, asset specificity and relational capital

Integration of various theories is essential to completely understand and explain strategic alliances in a supply chain. The purpose of this paper is to develop a framework by integrating the features of transaction cost theory, resource-based theory, contingency theory, social exchange theory, and Kelley's personal relationship theory and test the framework through empirical research. The present study addresses the impact of strategic alliance motives, environment, asset specificity, perception of opportunistic behavior, interdependence between supply chain partners, and relational capital on strategic alliance outcomes. Besides, the study has also tested the role of relational capital as a central mediating construct. A sample of 2156 companies representing different industries in manufacturing in Malaysia was selected for the distribution of questionnaire. We tested the structural model using structural equation modeling (SEM). Based on the results, we conclude the following significant relationships: (1) strategic alliance motives and perception of opportunistic behavior on interdependence and relational capital, (2) interdependence on relational capital, (3) environment on strategic alliance motives, (4) relational capital on strategic alliance outcomes, and (4) the mediating role of relational capital. The current study adds significantly to the body of knowledge on strategic alliances and can help managers identify factors that influence the success of strategic alliances and provide a proper direction to develop robust and effective collaborative relationships between supply chain partners.     

‘Created’ enclaves for enterprise: an empirical study of Singapore's industrial parks in Indonesia,Vietnam and China

The dynamics of globalization have prompted governments to re-examine accustomed policies, and search for alternative strategies, in order to re-position their economies for the future. This paper explores the spatial context of state involvement in the new economics of competition, with the focus on Singapore's much publicized, and controversial, orchestration of its state enterprise network to encapsulate economic space for Singapore-based firms to expand into the Asian region. This strategic initiative is promulgated on the exportability of Singapore's ‘state credibility’, systemic and operational efficiencies, and technological competencies, to locations where these attributes are less certain. A logit model is applied to questionnaire surveys culled from Singapore's industrial-township projects in Indonesia, Vietnam and China and the findings are presented. The authors conclude that the strategic advantage created for the firms within these privileged investment enclaves, although remarkable, is often at risk from the administrative complexities, and socio-political milieux, of the host environments.     

Canonical valuation and hedging of index options

Canonical valuation is a nonparametric method for valuing derivatives proposed by M. Stutzer (1996). Although the properties of canonical estimates of option price and hedge ratio have been studied in simulation settings, applications of the methodology to traded derivative data are rare. This study explores the practical usefulness of canonical valuation using a large sample of index options. The basic unconstrained canonical estimator fails to outperform the traditional Black–Scholes model; however, a constrained canonical estimator that incorporates a small amount of conditioning information produces dramatic reductions in mean pricing errors. Similarly, the canonical approach generates hedge ratios that result in superior hedging effectiveness compared to Black–Scholes‐based deltas. The results encourage further exploration and application of the canonical approach to pricing and hedging derivatives. © 2007 Wiley Periodicals, Inc. Jnl Fut Mark 27: 771–790, 2007     

2018 WTO Trade Policy Review of Malaysia

This paper presents an academic analysis and review of the recently completed WTO Trade Policy Review (TPR) of Malaysia, 2018. This includes suggesting policies that can help to promote Malaysia's international competitiveness. We show that the sharp decline in commodity prices that started in 2014 contributed in narrowing Malaysia's trade balance and current account balance as a share of GDP. The faster decline of exports as a share of GDP compared to imports accounted for most of the substantial reduction. Further, the collapse of commodity prices was accompanied by a sharp depreciation of Ringgit Malaysia. We also show that Malaysia is losing international attractiveness in terms of FDI inflows relative to its economic size. This is evidenced by the downward trend in Malaysia's FDI performance index since 1992. Further, international tourism has fallen on average since 2014, due largely to a drop in tourist arrivals from Singapore. Policymakers should introduce policies to enhance international competitiveness, such as reforming the education system to produce skilled workers and reducing reliance on low‐skilled foreign workers.