Volume 10 Number 02
Leadership And Its Impact On Organisational Culture
James Sarros, Judy Gray and Iain Densten
Our study of 1,918 members of the Australian Institute of Management revealed strong and positive relationships among leadership and organizational culture. Individualized consideration was the prominent leadership style of executives, and performance orientation the prominent organizational culture. Mean scores for all leadership factors were higher than the established norms for these factors. Culture was shown to be more responsive to leadership dimensions than leadership was to culture. Cultures with the emphasis on rewards were best predicted by a mixture of transactional (contingent reward) and transformational (inspirational motivation) leadership approaches. Cultures with a transformational focus (supportiveness, social responsibility) were best predicted by transformational (inspirational motivation) leadership styles. In many cases, more than double the variance in organizational culture was accounted for by leadership style, than was the reverse case.
Keywords: leadership,organizational culture, regression analysis, executives, organizational culture profile, full range leadership
A Simulation Analysis Of The Performance Of Foreign Exchange Exposure Management Strategies
This paper uses numerical simulations to examine the effectiveness of a number of alternatives used for managing foreign exchange transaction exposure. The simulations consider the Australian dollar vis vis the United States Dollar for the period January 1986 to December 1999. The alternatives tested include the polar extremes of always hedging using forward contracts and remaining unhedged. In addition, a number of rules-based alternatives are tested that drift between these two extremes. The always hedge alternative is found to be the best performing in terms of return per unit of risk.
Keywords: foreign exchange; transaction exposure; hedging; simulation
CEO Compensation And Firm Performance: A New Zealand Investigation
Abeyratna Gunasekarage and Michael Wilkinson
In this study we examined the influence of firm performance in the determination of CEO compensation for New Zealand companies. The results indicated that firm performance was not an influential variable in the determination of CEO cash compensation for these firms; instead, company size exerted a statistically significant positive influence on cash compensation while the ownership concentration had a significant negative impact on this measure. However, when the change in the value of CEO share holdings was added to cash compensation, it was found that the short-term, long-term and future firm performances were significant determinants of the total compensation package for CEOs.
Keywords: CEO compensation, firm performance, cash compensation, CEO shareholdings
Equity Market Price Interdependence Between Australia And The Asian Tigers
Eduardo Roca and Daniel Buncic
The study investigates the extent and structure of long-term and short-term price interaction between the equity markets of Australia and the Asian Tigers - Hong Kong, Korea, Singapore and Taiwan, taking into account the Asian financial crisis. It applies cointegration and generalised variance decomposition and impulse response analyses using MSCI price index data. No significant long-term relationship between Australia and the Asian Tigers is found both before and after the Asian crisis. No significant short-term relationship is also found during the period before the crisis. However, after the crisis, the study finds Australia to be significantly interdependent with Hong Kong and Singapore.
Keywords: equity market interdependence; Asian Tigers; cointegration; variance decomposition; impulse response; innovation accounting.
The Effect Of Politics On Budgetary Control" A Stud Of Fertilizer Industry In Indonesia
A number of studies examined the effect of politics on budget allocation decisions. Others have examined the relationship between budget process and managerial roles. This study empirically investigates the moderating effect of politics and power on the relationship between budgetary control and managerial roles. The study is conducted in the context of public sector fertilizer manufacturing companies in Indonesia. The results indicate that politics plays a significant moderating role on the relationship between budgetary control and managerial roles.
Keywords: budgetary control, individual power, structural power, managerial roles.
Nature Of Determinants Of Global Platforms
This paper builds on the work of Porter to identify, expand on and explain the factors that determine a country's global platform potential. Building from the proposition that a global firm's Core Competencies can only be nurtured in a global platform, the paper identifies and classifies the factors that determine a country's platform status, elucidates the dynamic interactions among these, and shows how platforms contribute to a global corporation's core competence. Using the case of the banking industry in Canada, the paper makes the case that when a country or a significant region of it loses its capability to nurture the critical factors that determine its global platform potential for a particular industry, it will inexorably lose its attractiveness for global corporations and, concomitantly, its platform status in that industry. This substantiates the position that the fundamental contribution of a global platform to a firm's competitive advantage lies in its capability to feed the Core Intelligence of the Corporation. We extend the concept of a global platform to include what we refer to as Quasi global platforms, which provide good substitutes for true platforms. We argue that the array of potential platforms available to global companies is more vast than what is currently recognised in the literature, and this suggest these corporations have greater opportunity to optimise platform choice for competitive advantage.Keywords: global platforms; global strategies; quasi global platforms; core intelligence; multi-domestic strategies; global industries; determinants of global platforms; platform enhancement factors; global strategy and social cultural universality