Transformational Leadership, Organizational Commitment, and Mediating Effect of Trust

Lim, Yong-Taeg,Lee, Ji-Moon KNU The Institute of ManagementEconomy Research 2016 Asia-Pacific Journal of Business Vol.7 No.2

This study has analyzed the interrelation between transformational leadership (TL) and organizational commitment (OC) so as to verify the mediating effect of their trust on OC, finding that charisma and intellectual stimulus have a significant effect on affective and continuous commitment. This finding is different from any existing arguments where the charisma of TL and the individual consideration are said to have a significant and positive effect on affective and continuous commitment. Furthermore, the mediating effect, which was expected to be highly relevant on the grounds of the findings of previous researches that any high trust of a leader would lead to a high level of OC of members, has been revealed as a complete mediation in the relationship of emotional trust between individual consideration and OC, which shows that the correlation between TL and OC may vary depending on the characteristics of an organization and its members both of which are sample objects. This study, unlike most previous researches with their research samples in industrial fields, has estimated the growing interrelation of NGOs. Therefore, while this study itself may have its research-limit of specificity, it is expected to make a useful contribution to any future researches of the same category.

Quantitative Tests for Income Level Convergence in Asian Countries

Tejero, Wilma Milo,Hwang, Jinyoung KNU The Institute of ManagementEconomy Research 2019 Asia-Pacific Journal of Business Vol.10 No.1

Asian countries have been striving for economic integration for decades. This effort may lead to the convergence of income level through externalities across countries. This paper investigates whether the convergence phenomenon holds for income levels in Asian countries for the periods between 1975-2015 applying the traditional methodology of ${\sigma}-$ and ${\beta}-convergence$. Although the absolute ${\beta}-convergence$ of income levels in Asian and ASEAN+3 countries do hold, ${\sigma}-convergence$ and conditional ${\beta}-convergence$ of income level generally do not exist. This suggests that the benefits of economic integration in Asian countries were not yet realized to be significant. A plausible explanation is that the economies of Asian countries are largely based on low trade openness and a high level of informal economy.

Antecedents and Consequences of Multinational Service Ventures' Social Responsibility Engagement with Local Allies: A Focus on Propositional Development

Oh, Han-Mo,An, Sang-Bong KNU The Institute of ManagementEconomy Research 2019 Asia-Pacific Journal of Business Vol.10 No.1

Despite the importance of multinational service ventures' alliances with local firms for CSR engagement, research is little interested in this issue. Because many multinational service ventures have increasingly allied with local firms for their CSR performance, it is important to explain the role of the alliance between a multinational service venture and a local firm. Our study addressed an issue of multinational service ventures' CSR performance through alliances with local firms. Based prominently on the resource-based theory of the firm, the competence-based theory of the firm, and the resource-adavantage theory of competition, we attempted to predict how a multinational service venture can be successful in CSR engagement based on an alliance with a local firm. Our study posited that local firms' CSR knowledge and CSR orientation positively influence multinational service ventures's CSR capabilities. In addition, we posited the positive moderating roles of alliance competence in the relationships between local firms' CSR resources and multinational service ventures' CSR capability. Moreover, our study posited that multinational service ventures' CSR capability is a source of competitive advantage. Finally, we concluded this manuscript with a discussion of scholarly and managerial implications, limitations of the study, and directions for a further study.

Performance Evaluation of SME Banking in Bangladesh using Stochastic Frontier Analysis

Hossain, M.K.,Hossain, M.A.,Baten, M.A. KNU The Institute of ManagementEconomy Research 2016 Asia-Pacific Journal of Business Vol.7 No.1

Small and Medium Enterprises (SMEs) are suitable to provide employment with lower investment in densely populated countries like Bangladesh. A stochastic frontier model is used to evaluate performance of SME Banking of the commercial banks in Bangladesh. Input (Total Deposit, Cost of Fund and Salary Expenditure) and output (Finance to SME) data are collected on 45 banks which are dealt with SME for 13 quarters from $1^{st}$quarter of 2010 to $2^{nd}$quarter of 2013. Average performance of the SME banking is 0.716 in Bangladesh. That is, banks have opportunity to increase 30% performance in SME banking from the same inputs. Bangladesh Development Bank has lowest performance (0.540) while Eastern bank has the highest performance (0.753). Highest (0.743) and lowest (0.662) performance is observed during the second quarter of 2013 and fourth quarter of 2010 respectively. Inefficient Bank might be benefited by following the rules of efficient banks.

A Cross Cultural Study Regarding Motivations for Visiting Ethnic Restaurants

Jang, Seo-Yeon,Chernbumroong, Sainatee,Kim, Yeong-Gug KNU The Institute of ManagementEconomy Research 2019 Asia-Pacific Journal of Business Vol.10 No.1

Asian food and the Asian restaurant market have grown rapidly in the international market. It has become one of the major trends in the restaurant industry in the world. However, there has been little attempt to develop a scale for measuring customer's motivation to experience Asian restaurants, and cross-cultural approaches are very rare. From this point of view, this study examined an instrument to measure motivation to visit Asian restaurants developed by Jang and Kim (2015), which was originally developed based on UK customers, by applying the population from another cultural background, Thailand. A total of 308 valid responses were obtained in Thailand. CFA was performed with a Thai sample to test internal and external consistency of the scale with another population, and a comparison was made between UK and Thai customers.

Longevity Determinants of Embroidery Enterprises in Taal, Batangas, Philippines

Padua, Divine Krizza B.,Cabardo, Jewel Joanna S.,Madamba, Jeanette Angeline B.,Williams, Jimmy B. KNU The Institute of ManagementEconomy Research 2016 Asia-Pacific Journal of Business Vol.7 No.1

The study specifically aimed to identify factors affecting business longevity. It focused on knowing how embroidery enterprises managed to persist in the industry for many years despite the competitive business environment. After discovering the significant relationships of such factors to longevity, problems experienced by the enterprise cluster were ascertained in order to come up with recommendations that can be proposed to the enterprise owners. Embroidery entrepreneurs have been experiencing a continuous decline in sales due to lack of innovation and intense competition. In the evaluation of their personal entrepreneurial competencies, they scored low on risk-taking, persuasion and networking, and opportunity seeking; thus, implying that these are their weaknesses. On the other hand, the statistical results of this study say that longevity is a function of the entrepreneur's competencies (i.e., persistence, commitment to work contract, demand for quality and efficiency, information seeking, and systematic planning or monitoring), the generation currently managing the business, competition, and the customer's preferences. These results suggest that these independent variables are significant and are deemed critical to business longevity. Thus, entrepreneurs have to find ways on how to use these competencies as an advantage in reinventing their businesses and in reviving their industry.

Analysis on the Causes and Countermeasures of Sino-US Trade Friction

Tan, Dan,Shuai, Xiaoyu KNU The Institute of ManagementEconomy Research 2016 Asia-Pacific Journal of Business Vol.7 No.2

The study attempts to investigate the causes of Sino-U.S. trade friction in recent years and provides countermeasures accordingly. The import and export volume of two countries, the product structure of China's export, the 337th Act lawsuits related to China, the industries involved in trade friction, and the G-L Index of Sino-U.S. Products are analyzed in detail. The causes of Sino-US trade frictions are discussed from the aspect of mercantilism and trade protectionism, interest groups and governments' trade policies, Chinese product structure, intellectual property protection in China, and performance of Chinese enterprises in litigation. Based on these, countermeasures are put forward. China needs to implement industrial upgrading, increasing the added value of products, and improving intellectual property protection. A trade friction warning system also needs to be constructed. The Chinese government needs to carry out strategic dialogue and international negotiation.

A Simple Indicator of Local Government's Economic Policy: Example from Japan's New Local Revitalization Policy

Yamamoto, Masashi,Nakamura, Kazuyuki KNU The Institute of ManagementEconomy Research 2016 Asia-Pacific Journal of Business Vol.7 No.2

Japan's new local revitalization plan is unique in that the national government has asked local governments to form their own initiatives; and we can expect that there will be various ideas from the perspectives of local residents. However, it is important to note that not all local governments considered the actions of their competitors and neighboring governments. Currently, Japanese industries are so interconnected that we cannot ignore the actions of others. In this paper, we propose a simple indicator that policy makers can use to determine the focus for the local economy.

A Study on Dutch Disease: Effect of Financial Flow on Real Exchange Rate

Atama, Louis KNU The Institute of ManagementEconomy Research 2016 Asia-Pacific Journal of Business Vol.7 No.2

Using panel data for 29 developed countries, this paper studies the relationship between financial flow and trade markets on Dutch diseases for the period 2000-2010 and applying a fixed effects model. In particular, the study shows that an increase in inflows of foreign direct investment (FDI) leads to an appreciation of the real exchange rate. The result also suggests that an inflow of FDI accompanied by exports or government expenditure from tax revenue leads to real exchange rate appreciation. This paper also argued that stock market with FDI does not cause an appreciation of the real exchange rate.

Impact of Debts on Economic Growth of Bangladesh: An Application of ARDL Model

Hossain, Muhammad Amir,Shirin, Shabnam KNU The Institute of ManagementEconomy Research 2016 Asia-Pacific Journal of Business Vol.7 No.1

This study attempts to investigate the effects of different types of debts on economic growth in Bangladesh using time series data spanning from 2000 to 2015. In this study, the RDL model has been applied to determine the long run relationship among the selected variables. The result of the ARDL model shows that there exists a long term relationship between economic growth and the debt variables. It was evident from the findings that there exists bidirectional causality between public sector external debt and economic growth. Causality between private external debt and economic growth has been found to be insignificant. However, causality between domestic debt and economic growth showed a unidirectional causality from domestic debt to economic growth and not vice versa. Causality tests suggest that impact of domestic debt on economic growth is more effective compared to external debts.