Auditing in the Presence of Outside Sources of Information

We examine how an auditor's ability to terminate a multi-period client relationship provides the auditor with a real option whose value depends on the nature of informational asymmetry between the incumbent and other potential auditors. In particular, we isolate conditions under which the auditor's private and public sources of information behave as complements rather than substitutes. In such circumstances, increasing the likelihood of publicly provided information induces the auditor to expend more (rather than less)resources in private information gathering activities.     

Supply chain management for small business--how to avoid being part of the food chain

A supply chain is a series of customer and supplier relationships that extend throughout and beyond the company. It is an interwoven set of links that together form a chain supplying our customers in a seamless and integrated fashion delivering a high level of customer satisfaction. Supply chain management (SCM) integrates all activities so they are focused on customer satisfaction (both internally and externally). One of the things this article will attempt to accomplish is to provide a clear understanding of SCM's positive impact on customer service as well as on improving profitability, cash flow, product cycle times, and communication. Whether we go forward in the supply chain to the final end-user or backward in the supply chain to our supplier's suppliers, SCM will significantly improve our ability to serve our customers.     

Does santa have a great job? Gift shopping value and satisfaction

For good or bad, shopping and gifting are intertwined. This research looks at sources of gratification associated with shopping for gifts. More particularly, the roles played by general and specific shopping orientations in shaping gift shopping value and satisfaction are examined. Results from testing a theoretical model suggest that gift shopping orientations, such as agape, may dominate general shopping orientations, such as price consciousness. Also, the important role played by utilitarian shopping value is consistent with gift shopping more as a job than as a source of leisure. However, the results fall short of suggesting a negative relationship between gift shopping and hedonic shopping value. So gift shopping may be a job, but a job that is not so horrible after all. © 2007 Wiley Periodicals, Inc.     

Local community reaction to the ‘no-take’ policy on fishing in the Tsitsikamma National Park, South Africa

Fishing in the Tsitsikamma National Park has officially been halted since 2001. However, the desire to fish in the Marine Protected Area remains high among the local communities in Tsitsikamma. This has led to illegal fishing practices in the park. Consequently, the reaction of the local communities was measured using semi-structured questionnaires, informal interactions, personal observations, and through a key informant workshop that was organized in the Tsitsikamma National Park. It was found that responses from local communities to fishing within the park were defined by their residence status, ethnicity, gender, income, and educational level. There is a general understanding by local communities that the purpose of the Tsitsikamma National Park is to conserve nature within its boundaries. However, there is a mismatch in the understanding of the term ‘conservation’ between the local communities and conservation officials of the South African National Parks (SANParks). Local communities consider conservation to include sustainable utilization while conservation officials from the practice pursue absolute protection of the marine fisheries resources. The majority of local communities in Tsitsikamma resent this SANParks ‘no-take’ policy on fishing. They would like access to the fisheries resources in the Tsitsikamma National Park for both subsistence and recreational purposes.     

Maximizing customer value via mass customized e-consumer services

While the Internet provides an ideal marketplace for customized services, its strategic potential has yet to be fully realized. In particular, multi-seller (or “cross retail”) partnerships are the key to a largely unexploited Internet strategy for mass customizing bundles of goods or services as value-added solutions to individual customer needs. This article uses mass customization successes to advance cross retailing as a comprehensive strategy that frames current Web initiatives specifically in terms of customer value. Exploiting the strategy will necessitate an understanding of the enablers and dimensions of mass customized “e-consumer services” (i.e., e-tail services, as well as service-related consumer products, that are defined and sold via the Internet). The overall success of the broader Internet marketplace will be determined not just by industry-wide cooperation, but also by the development of rich standards that allow for the highly customized bundling of products. More importantly, service providers will be differentiated by their ability to employ powerful Web interfaces within a strategy that comprehensively supports and extends a customer-controlled customization process.     

Transaction Costs and Cattle Marketing: The Information Content of Seller-Provided Presale Data at Bull Auctions

At sales of breeding bulls, prospective buyers have strong incentives to undertake presale measurement activities. To reduce these transaction costs, sellers often provide information on sale bulls. We examine the information content of two measures of the expected performance of the bulls and find that within a given herd, older, simpler measures of performance contain more information about prices (from buyers' perspectives) than newer, more sophisticated measures known as expected progeny differences, or EPDs. We also find, however, that buyers appear to pay considerable attention to annual changes in herd-average EPD values when comparing animals from different sellers.     

Virtual Reality and Innovation Potential

This article examines how companies can harness virtual reality (VR) technology to help make themselves more innovative. VR has some unique characteristics which, taken together, can help companies to develop three features common to many innovative organisations: a capacity to experiment in depth; involvement of all in the innovation process; and an ability to capture ideas generated in the innovation process. However, some obstacles need to be overcome before VR fulfils this potential.     

Alleged instability of the Okun's law relationship in Australia: an empirical analysis

The determinants of the long run equilibrium unemployment rate are modelled through a cointegrating regression. The residual term, which represents the error correction mechanism, is used in the testing of a general dynamic model to obtain a simplified representation of the data generation process over the period 1968(2)–1989(2). The long period equilibrium unemployment rate, which is I(1), is shown to be related to the rate of capacity utilization, a structural change variable and the rate of capacity growth. Steady state rates of unemployment are calculated which are based on different assumptions about the magnitudes of the independent variables. In contrast to the other two variables, changes in the rate of capacity utilization are shown to have only modest effects on the steady state unemployment rate. The Okun coefficient is inversely related to the steady state unemployment rate, which accords with intuition. The statistically significant decline in the trend growth rate of non-farm GDP in the 1970s explains, in part, the apparent instability of the Okun's law relationship which is revealed in recent studies. These studies can be criticised for their conometric methodologies.