Good or Bad, Unified CIT Law Arrived

On 16 March 2007 China's top legislature, the National People's Congress (NPC), passed the long-awaited Unified Corporate Income Tax Law (CIT Law) by a dominant majority vote. Chinese companies currently pay income tax at a nominal rate of 33%, while their foreign counterparts, which benefit from tax waivers and incentives, pay an average of 15%. The Unified CIT Law, aiming to impose a flat 25 % tax on both and provide them with a level playing field, will come into effect on 1 January 2008. No doubt, this CIT reform will bring significant and long-term impact on both domestic companies and foreign-invested enterprises (FIEs). In particular, a number of auto brands in China's auto industry are from joint ventures and FIEs. Whether the auto price to go up or down under this new law? The following article gives a rational analysis on this issue that most people concerned about.     

Why Do Consumers Stay When Things Are Bad and Leave When Things Are Good?

The study seeks to identify and classify motives for customers leaving when things are good and motives for staying when things are bad. Thus, this study identifies reasons for remaining in a business relationship when not satisfied. These motives are termed Capture Assistants. The study also identifies reasons for leaving a provider when satisfied. These motives are termed Escape Assistants. The critical incident technique was used to gain insights. A total of 219 incidents were classified. The results reveal that Capture Assistants hinder customers from leaving because they manifest themselves as fears of loss. Conversely, Escape Assistants motivate satisfied customers to leave because they promise gains. Managerial implications are outlined.     

For the Good or the Bad? Interactive Effects of Transformational Leadership with Moral and Authoritarian Leadership Behaviors

Although the ethical aspects of transformational leadership have attracted considerable attention, very little is known about followers’ reactions to the moral and immoral conduct of transformational leaders. Against this background, this study examined whether and how transformational leadership interacts with moral and authoritarian leadership behaviors in predicting followers’ in-role and extra-role efforts. Building on attribution theory, we hypothesized that the positive and negative effects of these leadership behaviors would be particularly pronounced for highly transformational leaders given that this leadership style elicits strong attention and sense-making efforts among followers. We tested our model in a sample of 228 individuals comprising 114 leader–follower dyads from a wide range of organizations and industries. In line with our hypotheses, results revealed that for highly transformational leaders, moral leadership behaviors related positively to employees’ in-role and extra-role efforts whereas authoritarian leadership behaviors related negatively to employees’ in-role and extra-role efforts. In contrast, moral and authoritarian leadership behaviors did not significantly affect followers’ reactions to leaders low in transformational leadership. Taken together, these findings suggest that transformational leadership, contrary to its largely positive perception in the literature, can be a rather mixed blessing. Implications for theory, future research, and managerial practice are discussed.     

Currency and Financial Crises in Turkey 2000 –2001: Bad Fundamentals or Bad Luck?

This paper attempts to explore the underlying causes of twin crises experienced by Turkey in November 2000 and February 2001. We study an extensive set of leading indicators of crises that are drawn from the existing literature. Our results identify three sets of vulnerabilities in the Turkish economy in triggering the financial crisis and bringing about the collapse of the Turkish lira. These are: first, the weak external position caused by excessive debt burden combined with the loss of competitiveness; second, the weak fiscal position resulting from the record levels of interest payments on domestic borrowing; and most importantly, third, weaknesses in the financial and banking sector. Given these observations, we argue that the success of financial sector reform is instrumental not only for putting the economy on a sustainable recovery path but also for reducing the likelihood of similar crises in the future. The general lesson to be drawn from this experience is that a sound financial system is a pre‐condition for the successful operation of a fixed exchange rate regime.     

SMEs’ Financing and Banks’ Profitability: A “Good Date” for Banks in Ghana?

Small and medium enterprises (SMEs) are the core of most economies and are a major source of economic growth. In recent times, banks have been actively involved in the financing of SMEs through the provision of loans to this sector. This paper investigates the impact of SMEs financing on banks’ profitability in Ghana. The study employed the fixed effect model as the main regression tool. The study result reveals that SMEs significantly contribute to banks’ profitability in Ghana. Interestingly, transaction cost in administering SME loans was insignificant in all the models. Higher inflation reduces the real value of the loan and erodes the interest returns on the total credit to the SMEs. Conversely, growth of GDP enhances the growth of the bank profit.     

“Apple: Good Business,Poor Citizen”: A Practitioner’s Response

This paper was written in response to Etzioni’s “Apple: Good Business Poor Citizen” (J Bus Ethics, 2016, doi: 10.1007/s10551-016-3233-4). It argues that Etzioni is correct in seeing the recent conflict between Apple and the FBI over cracking the San Bernardino shooter’s iPhone as requiring that considerations of national security be balanced against the rights of those it might impact. There are nonetheless critical questions about one must still ask: whose rights are curbed, to what degree, and how does a society decide which side to favor? More attention needs to be paid to the privacy of other iPhone users and, importantly, the burden that hacking the phone might impose on Apple, either impairing its brand value or compromising its business potential. Finally, by asking ‘who judges the balance?’, it questions whether labeling Apple a poor citizen is premature, as they had only begun challenging the FBI’s judgment through the judicial process.     

Consumers’ Opinions and Use of Food Labels,Nutrition, and Health Claims: Results from Turkey

This study was conducted to reveal Turkish consumers’ (18–65 years residing 10 cities, n = 1200) opinions and use of food labels, nutrition, and health claims. The majority of both females and males (64.7%, 68.2%) seldom read food labels. Risk for not paying attention to food labels was increased 1.287-fold when the gender was male. The percentage of reading food labels increases as education and income levels of individuals increase (p < 0.05). Expiry dates of foods were the most frequent read item on labels (58.0%). Males mostly read information on label to learn the price of the food (71.0%) while females read it to learn the energy value of food (79.0%). Females had more knowledge on nutrition claims compared to males (p < 0.05). The nutrition claims, which were most frequently read by females and males, were trans fat free (23.5%, 21.0%) and low fat/fat free (23.3%, 20.5%). The claim organic was paid most attention on fruit and vegetables (52.0%). The claim “low cholesterol contributes to maintenance of cardiovascular-health” was the most common health claim read. In summary, Turkish consumer’s behaviour of reading labels and nutrition-health claims could change according to some sociodemographic factors and food products.     

Delivering Bad News: How Procedural Unfairness Affects Messengers’ Distancing and Refusals

Drawing from a social predicament and identity management framework, we argue that procedural unfairness on the part of decision makers places messengers in a dilemma where they attempt to protect their professional image or legitimacy by engaging in refusals (e.g., curbing explanations) and exhibiting distancing behaviors (e.g., minimizing contact with victims) when delivering bad news. Such behaviors however, violate key tenets of fair interpersonal treatment. The results of two experiments supported our hypotheses in samples of experienced managers. Specifically, we found that levels of messengers’ distancing and refusals were greater when the procedures used by decision makers were unfair rather than fair. Additionally, messengers’ perceptions of a predicament (honesty versus disclosure) mediated these relationships. Implications and future research directions regarding the ethical delivery of bad news in the workplace are discussed.     

Cooperation versus competition: do buyers and suppliers really see eye-to-eye?

Purchasers have used a variety of tools to help improve the performance of their suppliers’ processes and products. Results of two large-scale surveys that compare buyer and supplier perceptions of a common customer firm's supplier development and its supply base's adoption of total quality management are reported here. One customer, known for its cooperative (partnership-like) approach to supplier relations, is contrasted with another firm that uses supplier switching to meet its procurement needs. Analysis of the survey data indicates that buyers and suppliers have a better “shared understanding” (smaller satisfaction gap) within the “competitive” relationship than within the “cooperative” relationship.     

Doing Good,Feeling Good? Entrepreneurs’ Social Value Creation Beliefs and Work-Related Well-Being

Journal of Business Ethics - Entrepreneurs with social goals face various challenges; insights into how these entrepreneurs experience and appreciate their work remain a black box though. Drawing...     

“The Unbearable Lightness of Cleaning”: Representations of Domestic Practice and Products in Good Housekeeping Magazine (UK): 1951–2001

In this paper we begin to open the black box that constitutes the organisation of domestic cleaning and consumption in the latter half of the twentieth century. We focus specifically on change and continuity in the manner in which cleaning practices and cleaning products are represented in the UK woman's magazine Good Housekeeping, in the late modern period. After a discussion of the modern history of cleanliness, we proceed with a rationale for why this magazine was chosen for our analysis, followed by a summary of our methodology. We then argue that three phases of representation may be delineated in the time period we investigated. The first phase, which is apparent in the 1951 and 1961 issues, we have named “pride in domestic practice” and it covers a period when, what we call “the women's lobby”, speaks in a uniform voice about the tasks of the housewife and the purpose of domestic cleaning. The second phase, manifest in the 1971 and 1981 issues, is termed “domestic dreaming”, and it heralds a period when Good Housekeeping calls its readership to dream about the potentials of a transformed consumer culture. The third phase, which is evident in some respects in 1981, but which is more clearly present in 1991 and 2001, we have called “modern advising in a late modern world”. During this period, Good Housekeeping settles into a new role as a modern advisor of cleaning products and practices within the context of a world that poses significant complexities. Our discussion also focuses on how three values of cleanliness; that associated with germs, aesthetics and efficiency/ease are present in the magazine. Our analysis is contextualised in relation to the cultural silencing of cleanliness in this period and related to social and cultural changes associated with feminism and consumer culture.     

Understanding Café Culture: Toward a Dynamic and Holistic Research Framework

Based on a critical interpretive literature review, this article introduces a holistic and dynamic research framework for café culture analysis. Drawing on the constructivist view of culture and glocalization theories, we proposed a framework that highlights the impact of different cultural resources (i.e., values, norms, schemas, artifacts, and practices) on café culture development and the role of three dyads (brand-consumer, global-local, and historical-present) in the formation process. The framework underscores the dynamic and holistic nature of consumer culture research and emphasizes the cultural practices of different entities that collectively transfer the symbolic meanings embedded in the global cultural artifacts to the localized cultural reproductions. We hope to extend the discussions of café culture and, more generally, global products to a broader context.     

Book review for “The High Cost of Good Intentions”

Business Economics -     

The Research Field “Modeling Business Information Systems”

The research field “Modeling business information systems” has a long tradition in the scientific discipline of Business and Information Systems Engineering (BISE). The present paper highlights research shaping the research field, discusses challenges impairing the development of the research field in the coming years, and outlines elements of a future research agenda.