2005

CEPA AND PAN-PEARL RIVER DELTA ECONOMIC INTEGRATION: A COMPARATIVE BUSINESS DEVELOPMENT PERSPECTIVE
David Pollard
Issue 29 (Vol. 15, No. 1), June 2005, pp. 3-15.
The introduction of the Closer Economic Partnership Arrangement (CEPA) at the beginning of 2004 and, more recently, CEPA-2 has provided a framework for increased business development in the Pearl River Delta area of China and the Special Administrative Regions of Macau and Hong Kong.  In particular, the introduction of CEPA may lead to a significant increase in trade between Hong Kong and the neighbouring Guangdong Province. This paper examines the economic context into which the CEPA provisions have been implemented from an international perspective and it contains an assessment of relevant business development issues, particularly the case of small and medium-sized businesses (SMEs) in mainland China and Hong Kong.  Wider issues for direct investment and the role of Hong Kong are also assessed.  Experience with the implementation of free trade and associated market developments in other parts of the world is included but it is suggested that such models are of limited use in assessing economic development in the Pan-Pearl River Delta Area.  It seems that models derived from local practice will be more effective.

VACATION MOTIVATIONS OF SENIOR TOURISTS
Maria Helena de Aguiar Pereira e Pestana & Joao Manuel Nunes Gageiro
Issue 29 (Vol. 15, No. 1), June 2005, pp. 17-34.
A high income per inhabitant and the increase in lifespan of populations in developed countries are generally admitted to be the main pillars of senior tourism. Admitting that the increase in lifespan is partly conditioned by social and environmental factors that are beneficial to human longevity, than if tourism is one such factor, it will contribute to a virtuous cycle of interaction between the self maintenance of this longevity and the development of senior tourism. Three clusters can be identified: convivialists, spiritualists and innovators, which differ significantly in social demography, holiday habits and in their reasons to come to Lisbon.

THE EFFECTS OF TIME AVAILABILITY ON IMPULSE BUYING
Irene Cheong & Jacky F.L. Hong
Issue 29 (Vol. 15, No. 1), June 2005, pp. 35-47.
A lot of researchers have highlighted the significance of impulse buying.  However, the effects of time availability on impulse buying are controversial and inconsistent.  Therefore, this study aims to further validate the effects of time availability on impulse buying. A conceptual model is developed to measure the factors affecting impulse buying from previous research.  Three factors are included in the model, namely time availability, in-store browsing and normative evaluations. A questionnaire is developed based on the model and a survey is carried out with the supermarket shoppers in Macau. The research findings were satisfactory, suggesting that on the whole, time availability, in-store browsing and normative evaluations have significant influence on the dependent variable.  A discussion on the findings and limitations in this study is also presented.  Finally, some implications and future research are addressed.

SATP: STRATEGIC ADMINISTRATION BY TOTAL PRODUCTIVITY
Michitoshi Oishi, Eduardo P.G. Vasconcellos, & Kuniko Mochiaru
Issue 29 (Vol. 15, No. 1), June 2005, pp. 49-66.
The objective of this study is to present a strategic managerial process, emphasizing the dynamic and flexible integration of two administrative approaches: 'from the top down' (breakdown of objectives) and 'from the bottom up' (assemblage upwards). The integration presented by SATP (Strategic Administration for Total Productivity) shows the general effectiveness, and not only isolated areas of business, independent of scale or type of activities. It also demonstrates how to structure the organizational process in view of a company's objectives. SATP was applied to observe and analyze the efficiency of different types of organizations in Brazil, to further prove its effectiveness, which had already been shown in Japanese businesses.

Interviews with the Gurus
By Jorge Nascimento Ferreira
Jorge Nascimento Ferreira, editor of the renowned on-line management resource web page gurusonline.tv, brings to EAJM the latest from the management gurus
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THE CROWN JEWEL BUYS THE CROWN: RISING INDIA IN THE GEO-ECONOMY OF THE 21ST CENTURY
Issue 29 (Vol. 15, No. 1), pp. 67-74.
Interview with Ashutosh Sheshabalaya
Ashutosh Sheshabalaya, a regular writer and commentator about India and Asian issues, who heads now Allilon, an IT services firm based in Brussels, Europe, argues about the emergence of the Indian multinationals and the new face of India in science, technology and the knowledge economy. As an 'insider', he debates the Western myths about India, and refers that the traditional image of Bangalore specialization in call centres with a fake English accent and low-value programming do not apply anymore. In his book 'Rising Elephant', just published by Common Courage Press and Macmillan India, Tosh (for the friends) tells a few stories about the emergence of the new science and tech world power. The book targets an American audience - those white-collar guys frightened by BPO -, but has useful insights for people around the world, especially for Europeans. Tosh talks about an 'alliance' between the two old civilizations - Europe and India - in geo-economy affairs. He explains also, with solid arguments, why there is a difference between the knowledge take-off of the 'elephant' and the strategies from the Asian 'tigers' and 'dragons'.  A 'detail' that few Westerners understand.

AN EMPIRICAL STUDY OF THE SERVICE QUALITY-CUSTOMER LOYALTY RELATIONSHIP IN THE MACAU PUBLIC TRANSPORTATION SECTOR
Mandy Lei and Lancy Mac
Issue 30 (Vol. 15, No. 2), December 2005, pp. 99-111.
Quality service has long been attributed as one of the major determinants of long-term customer loyalty. This study seeks to investigate the relationship between service quality and customer loyalty in the context of Macau, a small city in South China. Based on an empirical study of 387 valid responses, it is found that tangibles, assurance, empathy and responsiveness are important determinants of customer loyalty in the transport service sector. Besides improving service quality, the public bus service providers should also consider offering differentiated service as it is found that frequency of usage of bus services does moderate the relationship between service quality and customer loyalty. A differentiated offer which meets high and low frequency users¡¦ preferences will improve the overall customer loyalty and thus ensure long term profitability.

CREDIT RISK ASSESSMENT IN THE MACAU BANKING SECTOR
Antonio Pires Patricio and Anna P.I. Vong
Issue 30 (Vol. 15, No. 2), December 2005, pp. 113-124.
Sound credit assessment policies and practices improve the measurement and management of credit risk by differentiating between good and bad loans as well as among the pass loans.  For business and institutional loans, the accuracy of default metrics can be improved by using the credit rating, while for personal loans, credit scoring has been employed both to shorten the approval time and to increase efficiency.  This paper will explore the credit analysis techniques, including credit scoring and credit rating, used in the Macau banking sector.

COMMENTARIES AND BOOK REVIEWS
MULTIPLE COEXISTING BOTTOM LINES: INSIGHTS FROM ARVIND SINGHAL'S 'DISTINGUISHED INTERNATIONAL SCHOLAR LECTURE' AT THE UNIVERSITY OF MACAU
Sow Hup Chan and Timothy Simpson
Issue 30 (Vol. 15, No. 2), December 2005, pp. 125-131.
On February 23, 2005, Professor Arvind Singhal, Presidential Research Scholar and Professor in the School of Communication Studies, College of Communication,  Ohio University gave a public lecture at the University of Macau. Dr Singhal is communication advisor to numerous governments and development agencies including the World Bank, UNICEF, UNAIDS, US State Department, and corporations such as Proctor and Gamble, Telenor Corporation, Norsk Tipping, and others. Dr Singhal has published eight books, including Organizing for Social Change; Combating Aids: Communication Strategies in Action; Entertainment Education: A Communication Strategy for Social Change; Entertainment-Education and Social Change: History, Research, and Practice; The Children of Africa Confront AIDS: From Vulnerability to Possibility. His research has been funded by many foundations including the Rockefeller, Ford, and Packard Foundations.
We found the public lecture a source of cultural revelation. The lecture clearly shows that organizations can be ¡¥doing well¡¦ and ¡¥doing good¡¦ while pursuing multiple bottom lines. The enlightening talk revealed, however, that such a vision is still missing in most organizations. Some examples and lessons which are practical and relevant to various organizations, especially the gaming industry in Macau, are presented.

CHINA BUSINESS PRACTITIONERS' CORNER
AN EXPLORATORY STUDY OF CRISIS MANAGEMENT IN THE CARE-FREE CITY OF MACAU
Shuk Fan Chung and Siew Huat Kong
Issue 30 (Vol. 15, No. 2), December 2005, pp. 133-148.
It is certainly a challenge to emphasize crisis-preparedness in a supposedly care- and crisis-free city. In Macau, people are more likely to invoke divine assistance in order to secure the peace for the ¡¥Blessed land of the lotus¡¦ rather than working on a practical plan to prepare for the unexpected. It is again this backdrop that a gaming company is trying to establish its crisis management practices, which it realizes it must undertake as crises, in one form or another, will ultimately strike. The future belongs to those who are prepared, so it believes. Our study uncovered that this company is already making efforts to develop its crisis management plan, with part of it being implemented already. In this process, this organization perceived that human-related factors as well as an organizational structure were the two most challenging areas that it has to overcome, if it is to attain a higher level of ¡¥crisis-preparedness¡¦. What is being done in this company could well become the benchmark for not only the gaming sector but other sectors in the Macau economy as well. As it goes about achieving this, its lessons will undoubtedly be good reference material for other organizations in this city.

Interviews with the Gurus
By Jorge Nascimento Ferreira
Jorge Nascimento Ferreira, editor of the renowned on-line management resource web page gurusonline.tv, brings to EAJM the latest from the management gurus
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THE FINAL ASSAULT: THE NEW WAVE OF MULTINATIONALS
Issue 30 (Vol. 15, No. 2), pp. 149-157.
Interview with Frank-Jurgen Richter
'Go global¡¦ is the new motto in Asia. After two waves since the 1970s with the pioneers (Samsung or Sony) and the builders (Taiwanese, Singaporean), now come the newcomers from all the emergent countries - with China and India leading. The Lenovo/IBM affair or the Bangalore new multinationals are signals of a new world competitiveness environment. More and more Asian companies are embarking on a profound transformation propelling them from the national boundaries to global players. This shift is both a challenge and an opportunity for companies in Europe and around the world.
Gurusonline listened to Frank-Jurgen Richter, editor of ¡¥Global Future: The Next Challenge for Asian Business¡¦ (Wiley 2005), a book you must read. Frank was the director in charge of Asian affairs of the World Economic Forum and founded Horasis, a consulting company based in Geneva, Switzerland.