Buyer-Carts for B2B EC: The b-Cart Approach

To support the purchasing process in the B2B EC platform, we analyzed various architectures of buyer-carts. The desired features in buyer-carts are collection, recording, trashing, tracking, identification, ordering, payment, purchasing decision support, and transmission of records to e-procurement systems. A buyer-cart can be categorized as s-cart, i-cart, and b-cart depending upon its residing sites: seller, intermediary, and buyer. To design the architectures of B2B e-marketplaces considering the role of buyer-carts, we analyzed the feasible combinations of marketplace operators, pricing mechanisms, and types of buyer-carts. Seventeen elementary types of B2B EC architectures turned out meaningful in this regard, thus their pros and cons are evaluated. Based on this framework, we designed a composite architecture MyCart, which allows the buyer to use b-cart along with s-cart and i-cart. By using the b-cart, a buyer can visit multiple sites collecting information in his or her own cart. This will allow the tight integration of b-cart with the e-procurement system. We demonstrate that the b-cart approach can be an effective framework of integrating the e-marketplaces with e-procurement systems and ERP systems. The b-cart can be very effectively applied to the desktop purchasing environment which uses external e-marketplaces.     

Option hedging theory under transaction costs

The problem of option hedging in the presence of proportional transaction costs can be formulated as a singular stochastic control problem. Hodges and Neuberger [1989. Optimal replication of contingent claims under transactions costs. Review of Futures Markets 8, 222–239] introduced an approach that is based on maximization of the expected utility of terminal wealth. We develop a new algorithm to solve the corresponding singular stochastic control problem and introduce a new approach to option hedging which is closer in spirit to the pathwise replication of Black and Scholes [1973. The pricing of options and corporate liabilities. Journal of Political Economy 81, 637–654]. This new approach is based on minimization of a Black–Scholes-type measure of pathwise risk, defined in terms of a market delta, subject to an upper bound on the hedging cost. We provide an efficient backward induction algorithm for the problem of cost-constrained risk minimization, whose associated singular stochastic control problem is shown to be equivalent to an optimal stopping problem. This algorithm is then modified to solve the singular stochastic control problem associated with utility maximization, which cannot be reduced to an optimal stopping problem. We propose to choose an optimal parameter (risk-aversion coefficient or Lagrange multiplier) in either approach by minimizing the mean squared hedging error and demonstrate that with this “best” choice of the parameter, both approaches have similar performance. We also discuss the different notions of risk in both approaches and propose a volatility adjustment for the risk-minimization approach, which is analogous to that introduced by Zakamouline [2006. European option pricing and hedging with both fixed and proportional transaction costs. Journal of Economic Dynamics and Control 30, 1–25] for the utility maximization approach, thereby providing a unified treatment of both approaches.     

Team creativity: the effects of perceived learning culture,developmental feedback and team cohesion

This study investigates the influence of perceived learning culture, developmental feedback and team cohesion on team creativity. The results showed that the demographic variables, the three antecedents and their interactions explained 41 per cent of variance in team creativity. Team creativity was positively correlated with a higher level of learning culture, developmental feedback and team cohesion. In addition to the main effects, two interaction effects (developmental feedback and team cohesion; learning culture and team cohesion) were significant. In view of these results, organizations seeking to increase team creativity need an integrated strategy incorporating elements of culture management, effective coaching and team development. Implications, limitations and recommendations for future research are discussed.     

Econometric study on the technology gap between Korea and Japan: The case of the general machinery and electrical and electronic industries

This article presents an econometric model relating to the technological development problem of a technologically less developed country when there is a technology transfer from the leader (Japan) to the follower (Korea) nation. By developing a sensitivity analysis of the follower's development speed, the article seeks to determine the most effective means of improving the technological level of the follower nation. The alternatives of independent technological development and the importation of advanced technology from the leader nation are considered. The results of the study indicate that it is more effective for the follower to assimilate, modify, and localize the leader's technologies. The general machinery industry and the electrical and electronic industry are examined.     

Distributional Effects of Freedom and Income on Life Satisfaction: Evidence from East Asian Chinese Societies

We estimate the distributional effects of freedom and income on life satisfaction (LS) for East Asian Chinese societies through an ordinal parametric quantile regression approach. The results show that freedom and income exhibit positive and mostly significant effects across societies and LS levels. The freedom effects generally become larger for those at higher LS quantiles. However, the income effects decline as the LS quantile level increases. Thus, one may have a trade-off between freedom and income without compromising individual LS. The trade-off of freedom (income) for income (freedom) is more pronounced for people at a lower (higher) LS level.     

Forecasting h(m)otel guest nights in New Zealand

The purpose of this paper is to highlight some time series models which hotel and motel industry practitioners could use to forecast guest nights. Given their considerable practicality, the lodging industry can easily benefit from using these models as forecasts can be obtained at low cost for effective management and planning. Monthly observations are used for estimating the model from 1997(1) to 2006(12). The Holt–Winters and Box–Jenkins ARMA models are able to forecast guest night demand accurately as 99% of the variations in the guest night forecast are associated with variations in actual guest nights in 2007.     

Untangling the relationships between consumer characteristics,shopping values,and behavioral intention in online group buying

This study examines the link among consumer characteristics (price-sensitive behavior, variety-seeking behavior, and compulsive buying behavior), shopping values (utilitarian and hedonic shopping values), and behavioral intention in online group buying (OGB). This study tests usable responses collected by means of mall-intercept systematic sampling from consumers who previously participated in OGB. Structural equation modeling was used to analyze data and test the hypothesized relationships. Findings suggest that price-sensitive and variety-seeking behaviors are significantly related to utilitarian shopping value, whereas price-sensitive, variety-seeking, and compulsive buying behaviors are significantly related to hedonic shopping value. Both utilitarian and hedonic shopping values significantly influence consumers’ OGB intentions. For a successful OGB strategy, Internet marketers and site operators should emphasize the utilitarian shopping value of price saving and selection and introduce the hedonic shopping values of promotions and sensory experiences. This study provides a link between two streams of prior research – that is, consumer characteristics and shopping values. Furthermore, it validates an empirical model whose results can help business practitioners make better-informed marketing management decisions for OGB and help academics and consumers better understand OGB behavior.     

Time series test of nonlinear convergence and transitional dynamics

This paper revisits the income convergence hypothesis by using the nonlinear unit root test of Kapetanios et al. [Kapetanios, G., Shin, Y. and A. Snell, 2003. Testing for a unit root in the nonlinear STAR framework. Journal of Econometrics 112, 359–379.]. Out of the 12 OECD income gaps in which nonlinearity has been detected, two cases of long-run converging and four cases of catching up are found.     

An exploratory study of factors affecting the failure of local small and medium enterprises

There is increasing recognition of the potential contribution of local small and medium enterprises (SMEs) towards employment and economic growth in Singapore. Unfortunately, SMEs tend to have a high mortality rate. A survey was conducted among owners or managers of local SMEs to identify factors perceived as important in affecting business failures. The research results indicate that endogenous factors were viewed by respondents as more critical in causing SME failures than exogenous factors. Important exogenous and endogenous factors in specific areas were identified.Lau Geok Theng is Senior Lecturer, Department of Marketing, National University of Singapore, 10 Kent Ridge Crescent, Singapore 0511, tel: (65) 772-3179, fax: (65) 779-5941. Jasmine Lim Wang Boon is with the United Overseas Bank, Singapore.