The Transfer of Knowledge from the Headquarters to the Subsidiaries: A Case Study of MNEs Operating in Overseas    
José Duarte Moleiro Martins, Instituto Superior de Contabilidade e Administração de Lisboa (ISCAL), Management Division, Portugal
Nelson Santos António, Instituto Superior de Ciências do Trabalho e da Empresa (ISCTE), ISCTE Business School, Portugal
Issue 38 (Vol. 20, No. 1), June 2010, pp. 3-30.

The transfer of knowledge to the subsidiaries located in overseas is a necessity that results from the local individuals’ feeble capability of specialized knowledge as regard to the reproduction of the operational model used in the headquarters of the MNEs. The investigation of this phenomenon was based on four cases with activities in the Mozambican industrial sector. The results obtained from the interviews with top managers point to the importance of the existence of a relationship of trust between the transmitter and the receiver in the on-the-job training actions, tolerating errors in the learning of the transferred practices by way of their adaptation to the local context so that they can be well understood and incorporated in the productive process and thus improve the subsidiaries’ performance. 

 An Exploratory Study on Consumer Decision-Making Styles of Young Macau Consumers

Zhao Hang, Faculty of Business Administration, University of Macau, Taipa, Macau, China
Tong Xin, Faculty of Business Administration, University of Macau, Taipa, Macau, China
Issue 38 (Vol. 20, No. 1), June 2010, pp. 31-49.

To verify the universality of consumer decision-making styles under different cultural backgrounds as well as to fill the gap in Macau consumer behavior studies, an exploratory research was conducted among young Macau consumers through the Consumer Styles Inventory (CSI) approach initiated by Sproles and Kendall (1986). As a result, an eight-factor model of decision-making styles of young Macau consumers was proposed. Five factors were originated from the US eight-factor model. Time-Energy Conserving and Price Consciousness, which were proposed by previous replication researches, were also found in Macau. Additionally, a new factor, Rational Shopper, was uncovered in the current study. Comparing findings with those of previous researches in different countries, similarities and differences in consumer decision-making styles were generated and discussed. Further discussion on this research had suggested several business implications towards marketing.

An Empirical Study of Price Differences of Chinese Cross-Listed Stocks: A-Shares and H-Shares
Steve C.C. Fong, Division of Commerce, Community College of City University, Hong Kong
Agatha K.M. Wong, Business School, Edinburgh Napier University, Britain

Issue 38 (Vol. 20, No. 1), June 2010, pp. 51-70.

Companies may choose to cross-list shares on overseas stock exchanges for raising finance. In China, A-shares are for domestic investors and tradable in the Shanghai Stock Exchange and Shenzhen Stock Exchange; and H-shares are for international investors and tradable in the Hong Kong Stock Exchange. This study investigates the causes of price difference between A-shares and H-shares. Twenty-two companies are selected for studies which issue both A- and H-shares. Two study models are proposed. The first model assumes the speculative component is positively related to turnover. The second model assumes the speculative component is negatively related to asset float. Results indicate that the differential risk hypothesis can explain the existence of A-H share price premium. Evidences suggest that the prices of different types of shares issued by same company can differ if the shares are traded in a perfectly segmented market.

Training and Development Needs in Macau’s Hotel Industry
Vanessa Josefina das Dores, Faculty of Business Administration, University of Macau, Taipa, Macau
Zenon Arthur Siloran Udani, Faculty of Business Administration, University of Macau, Taipa, Macau

Issue 38 (Vol. 20, No. 1), June 2010, pp. 71-84.

Macau’s hotel industry is a backbone of the enclave’s burgeoning tourism business. The robust growth of the industry over the past six years has increased the need for better hotel services. Consequently, the training and development of hotel staff has played a more strategic role in achieving the mission of hotels in Macau. This study looked into the status of training and development in the hotel industry, the training needs of employees and modes of addressing training gaps. Research findings showed that training and development in the industry was determined principally by job-related demands. And needs were popularly addressed by on-the-job training and formal seminars. In most cases, line managers played an active role in training their staff. Both staff and managers considered work-related training essential to their jobs. Nonetheless, they also aspire for developmental programs focusing on personal needs, such as enhancing their interpersonal relationship skills, and leadership and management skills. Satisfying both job-related and personal training needs are crucial to managing talent, especially in retaining valuable staff in the hotel business.

Business Research/Practice Notes 

Small and Medium Scale Enterprises in the Informal Sector in Pakistan and Sri Lanka: A Research Agenda
S.W.S.B. Dasanayaka, Department of Management of Technology, University of Moratuwa, Moratuwa, Sri Lanka

Guru D. Sardan, Institute of Management Technology, Raj Nagar, India

Issue 38 (Vol. 20, No. 1), June 2010, pp. 85-102.

Small and Medium Scale Enterprises/Industries (SMEs) are functioning as a lifeline in the informal sector in Sri Lanka and Pakistan due to their significant contribution to the overall economy in terms of employment, exports, tax income, innovation, equitable income distribution, social stability, domestic resources usage and regional development, etc. However in both countries, the lack of first hand information is the main obstacle to understanding various issues related to the growth and development of SMEs. The main data sources for this study are the latest national level Industry Censuses in both countries. The main objective of this paper is to identify issues related to SMEs with special emphasis on definitional aspects and a future research direction. The final outcome of this paper is to show the issues emerging from national level SME data bases in Pakistan and Sri Lanka in order to formulate coherent policies and strategies so as to develop SMEs to their full potential to accelerate economic growth and development in both countries. The issues raised and research directions set by this paper can be used by the South Asian countries to develop their informal sector SMEs to their full potentials.

Japanese Hybrid Factories in Australia: Analyzing Labor Relations and Reflecting on the Work of Tetsuo Abo

Celal Bayari, Graduate School of Economics, Nagoya City University, Japan

Issue 39 (Vol. 20, No. 2), December 2010, pp. 111-134.

This paper provides an analysis of Japanese hybrid factories in Australia in a context of labor relations aspect of the Japanese management and production system. The paper argues that the labor relations aspect of the Japanese system is the most successful transfer to Australia. In its second part the paper compares the data from Australia with Tetsuo Abo’s research in the UK and the US where ‘labor relations’ is the most successful transfer detected by Abo. This paper is not a reconstruction of Abo’s hybrid framework but instead seeks to draw a qualified comparative analysis using Abo’s results. The paper argues that there is a parallel between research findings from the UK, the US and Australia in terms of the success of labor relations that is inherent to the Japanese management and production system. It is suggested that future research can investigate this point with larger comparative data sets.

 HRM-Strategy Integration and Organizational Performance: Empirical Evidence from India

Feza Tabassum Azmi, Department of Business Administration, Faculty of Management Studies and Research, Aligarh Muslim University, India

Issue 39 (Vol. 20, No. 2), December 2010, pp. 135-157.

Debates in the 1980s and early 1990s suggested the need to explore the relationship between HRM and corporate strategy more extensively. Despite the importance of HRM-strategy integration or ‘vertical fit’, there is still a paucity of empirical researches on the subject in the Indian context. Indian research has focused more on traditional HRM practices rather than on the interaction between HRM and strategy. The volatile and changing business environment of India offers a good testing field for a study on HRM-strategy integration. On the basis of an extensive literature review, two constructs of HRM-strategy integration were identified. The scales based on the two constructs were empirically tested for unidimensionality, reliability and validity using Structural Equation Modeling (SEM) capabilities of LISREL 8.50. Thereafter, the two dimensions were linked with effectiveness of HRM function and organizational performance. Mixed support was found for the hypothesized relationships. The findings of earlier researchers were partially corroborated by the present study. The study provides a reliable and valid instrument for measuring HRM-strategy integration that has been empirically tested in the Indian context.

 Third Generation Family Businesses: A Comparison of Succession Issues in Two Brazilian Companies 

Virginia Trigo, ISCTE Business School, Lisbon, Portugal

Nelson António, ISCTE Business School, Lisbon, Portugal

Issue 39 (Vol. 20, No. 2), December 2010, pp. 159-174.

In Brazil there are approximately 4.1 million formally established enterprises. About 98% of them are micro and small firms mostly family businesses of which 75% are being operated by the first generation, 20% are in the hands of the founder's offspring (second generation) and only 5% are controlled by the third or subsequent generations. These percentages show that the chances of companies remaining in the control of the family are drastically reduced from generation to generation and thus the two main questions that guided our research: (1) what are the reasons for such high mortality? and (2) how is succession prepared in family enterprises? This paper is part of a broader research that explores management issues in family businesses in Portuguese speaking countries and examines the cases of two Brazilian firms both founded by German immigrants in two different and prosperous industries that experienced successful transfers from the first to the second generation but had different fates in the next handover. The in-depth interviews we have conducted with the main actors in the two companies unveil some of the factors that dictated these disparate outcomes. 

An Investigation of Determinants of Job Satisfaction for Macau Civil Servants 

Carry K.Y. Mak, Faculty of Business Administration, University of Macau, Taipa, Macau

Jacky F.L. Hong, Faculty of Business Administration, University of Macau, Taipa, Macau

Issue 39 (Vol. 20, No. 2), December 2010, pp. 175-191. 

This quantitative study aims to examine the determinants of job satisfaction for Macau civil servants. A survey was conducted with a sample of 189 government employees in Macau for testing three categories of antecedents, namely extrinsic, intrinsic and personal factors, and the related impact on overall job satisfaction. Our study results indicated that departmental pride was the most significant determinant of job satisfaction, while pay satisfaction, training opportunities, autonomy, skill variety, job security and satisfaction with clients were found to be non-significant. Compared with earlier studies in private sectors and other countries, differences in results imply that job satisfaction is a dynamic concept, and different political, cultural and economic conditions create different impacts onto civil servants’ job satisfaction.