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.     

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.)     

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.     

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.     

On Hofstede's treatment of Chinese and Japanese values

Hofstede has identified four important work-related values, but he imposes his mental programming on the interpretation of other cultures, which are qualitatively different from those on which he relies to develop his constructs. This criticism is evidenced by Hofstede's treatment of Chinese and Japanese values. This paper discusses the treatment along the four value dimensions: power distance, uncertainty avoidance, individualism and masculinity, and their integration. The paper concludes that Hofstede's analysis of Chinese and Japanese values is inadequate because Japanese and Chinese (including people in Taiwan, Hong Kong and Singapore) may either have different interpretations of the same value scale, or have other value dimensions not tapped by Hofstede's value framework.     

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     

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.     

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.     

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.     

Differentiation Among US Colleges and Universities

Colleges and universities in the US differ markedly in their access to economic resources. National data are used here to describe the resulting hierarchy that's reflected in schools' spending on their students, the prices those students pay, and the subsidies they get in consequence. Both historical data and projections based on recent institutional saving suggest that economic disparities among institutions and their students are increasing. In a final section, the paper asks what to make of this: what we can say about the right degree of institutional disparity – whether we have too much, too little, or about the right amount of differentiation.     

The needs of Japanese industry and engineering education

Japan experienced a miraculous reconstruction after the second world war partly due to the far-sighted support of the victors, especially the United States, and China, who did not divide the country or demand reparations, and partly due to the unique inherent qualities of the Japanese people.The Japanese race has developed its national identity from a combination of the country's location, climate and the circumstances of its some 1000 year history. As a result the people of Japan are truly a single race, for the most part uniform in experience, culture and language with a strong domestic orientation. From an educational viewpoint, the Japanese are historically good learners. However, they are traditionally bad when it comes to generating new ideas by applying theory for creative purposes.A simple process of (1) follow, (2) catch up and (3) equal or surpass describes the development of the high-tech industry in Japan. This process has made the most of the Japanese people's ability to absorb information as well as their single-minded determination to achieve goals and their propensity for concentrated effort. As the automobile and semi-conductor industries illustrate, the Japanese have unequalled expertise when it comes to adopting technology from advanced industrial nations overseas, perfecting it and making it their own.The challenge for the Japanese people, now that the catch-up process is all but completed, is to continue their progress by generating their own innovative ideas. In addition, the Japanese must develop a more global orientation and consider the needs of foreign markets in new product development. This evolution must take place in an atmosphere of international sharing, co-operation and partnership.In terms of education, the traditional good learner with a domestic orientation must be taught how to be a good original thinker with an international viewpoint.The engineering system in Japan has been placed against this background and is examined from both an historic and a futuristic perspective.     

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.     

Pricing the default option of international sovereign borrowers

When a country in debt encounters serious difficulties servicing that debt, the option to default begins to look attractive. Yet, barring major political upheavals, default has rarely occurred in the post-war era. The reason is that countries in trouble are able to capture (through renegotiations) some of the value of their option to default. We model this process in a manner which allows us to estimate the value of the default option which lenders issue to sovereign borrowers.We wish to thank our discussant, Malick Ousmane Sy, and the chair of our session, Lester W. Johnson, for their helpful comments.     

Perception of ‘economic reality’ with Design and Technology

Conclusion It has been argued that Design and Technology teachers would be helped by clear distinction between the terms, industry, business and economic. This would help to avoid the confusion between particular ways of viewing business (eg. through an economic concept such as profit maximisation;) and the multi-faceted character of the activity under observation. By this reasoning, the economic dimension of Design and Technology resides in the analysis of needs and the evaluation of products according to the value of the resources used up, and the value and distribution of the resources and products created. The link with discussion of value judgements in the subject (eg. Riggs and Conway, 1991) is very clear. So also is the dependence of this analysis on the definition of needs and evaluation and, crucially, the perceived relationship between the two, in learning and classroom practice.     

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.     

What form of modelling?

Conclusion The National Criteria and GCSE CDT: Technology have not kept pace with the progress of language, whereas the APU and the Design and Technology Working Group have an understanding, with the implications, of modelling 2, albeit fifteen years after the Open University's Technology Foundation Course for teachers. The Consultation Report Group has had the benefit of the insight given by the APU and the Design and Technology Working Group, but, it has not seen the probity and necessity of modelling 2. A summary of these documents in this five year period is presented in Table 2. It shows succinctly how the words model and modelling, from Table 1, have been used or implied.In conclusion, it would appear that through the Consultation Report no gain has been made from the advances achieved by the APU and the Design and Technology Working Group. The Consultation Report has restored a quasi status quo that does not challenge Design and Technology as would have the Final Report regarding modelling 2. If its perception of modelling 2 had been adopted by the National Curriculum Council the Final Report's modelling 2 philosophy would have challenged the GCSE Technology examinations and any Technology faculty who work on an understanding of modelling as an end-in-itself product.As a consequence of this weakening by the National Curriculum Council, there is the need to return to the philosophy of the APU and the Design and Technology Working Group in order to interpret the imminent Technology Statutory Orders. The non-statutory examples should be ignored, as an understanding of modelling 2 philosophy will give valid examples and contexts. Finally, an understanding of modelling 2 philosophy will help cross-curricular developments through the interaction of different aspects of modelling 2 within the curriculum.     

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.     

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.     

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.     

Networks, Interlocking Directors and Strategy: Toward a Theoretical Framework

Research on inter-organisational networks reflects their acknowledged and growing importance. Strategy research, however, is only beginning to investigate the nature of networks and how network participation can affect organisational performance. Networks embody a relational view of the organisation and their study draws attention to the mechanisms by which relationships are secured and managed. Board of directors interlocks are a principal traditional indicator of network ties, yet little has been written on the role of interlocks in different types of networks and their potential effects on performance. We develop a typology of inter-organisational networks based on the key dimensions of organisational interdependence and network durability; a micro-typology of embedded networks in East Asia based on formalisation of ties and networking scope; suggest that key aspects of directors' roles differ based on the type of network in which they are engaged; and develop specific propositions for further investigation.