This section contains information about articles under review and waiting for publication in next issues of the journal.

Stock options under non- expected utility theory
Peter-J. Jost, WHU, Germany
Florian С Wolff, McKinsey, Germany

Abstract. This paper modifies the modeling approach of Lambert et al. (1991) and Hall and Murphy (2000, 2002) to assess the value of executive stock options in the presence of deviations from expected utility maximization. In particular, we specify a valuation model which incorporates elements of cumulative prospect theory. We conclude that this could potentially close the value gap identified by Lambert et al. (2002) and Hall and Murphy (2000, 2002) that results from risk aversion of executives who get part of their compensation in the form of stock options and are not able to hold sufficiently diversified portfolios. Moreover, introducing probability weighting also affects executives' willingness to take on risky investment projects. These findings are confirmed in an experiment.

Intellectual capital in organizations
Funda Bahar Kaya, Mimar Sinan University, Turkey
Gonca Guzel Sahın, Atılım University, Turkey
Poyraz Gurson, Atılım University, Turkey

Abstract. Information and knowledge can be defined as today's thermonuclear weapons. Knowledge is stronger and more valuable than the natural sources, huge factories or swollen bank accounts. Organizations perform by using three types of capital: Physical Capital, Financial Capital and Intellectual Capital. When we examine the successful firms, we see that they tend to use a stronger way of Intellectual Capital that is formed by Human Capital, Organizational Capital, and Customer Capital. Intellectual Capital is an organization's registered knowledge value and it functions as a composition of knowledge, skill, experience, and information, that influence the present and future success of the business and establish its rank in comparison with the other firmsA complementary research study has been added to this study to examine the importance of the Intellectual Capital at the implementation level. This case study has been designed and fulfilled to measure the level of Intellectual Capital performance of the personnel of Turkish Airlines Ground Handling Unit. According to the findings of the study, senior executive personnel have perceived a lower degree of Intellectual Capital performance.
To achieve a more efficient and effective organizational structure and management, personnel of the organizations should be trained and supported to increase their use of Intellectual Capital.

Transparency & disclosure on corporate governance as a key factor of companies' success: a simultaneous equations analysis for Germany
Markus Stiglbauer, University of Regensburg, Germany

Abstract. This paper develops and tests a simultaneous equations model on the relationship between corporate governance disclosure and firm performance on a sample of over 100 German firms listed in the Prime Standard segment of the Frankfurt Stock Exchange. Integrating leading indicators for corporate governance - such as firm size, risk, ownership structure, leverage, takeover activities or board size - and capturing endogeneity and reverse causation, we provide evidence that there's a significantly positive relationship between transparency & disclosure on corporate governance and firm performance as measured by market-to-book value of equity and total shareholder return. Surprisingly, and contrary to theoretical assumptions we couldn't find evidence on a significantly positive relationship between declared compliance with the German Corporate Governance Code and firm performance. We arrive at the conclusion that our state of the art approach to measure the impact of good corporate governance on firm performance may handle both problems endogeneity and reverse causation better than existing approaches do. Based on our findings we propose a change of mind on good corporate governance in Germany on its way to a more market-oriented system and a paradigm shift towards more openness and transparency and thus increasing trust in German corporations.

An Analytic Study of Mexico in Economics, Social, Political, Environmental and Sustainable Development Trends by the Year 2030
Josè G. Vargas-Hernàndez, Universitario de Ciencias Económico Administrativas U de G, Mexico
Mohammad Reza Noruzi, Islamic Azad University, Iran

Abstract. The United States and Mexico share common interests not directly with each other and because the two countries share a 2,000 mile border and extensive interconnections through the Gulf of Mexico then this interaction raises some issues in economical, political and other areas. Also there are some links through migration and tourism, environment, health concerns, and family and cultural relationships. This paper aims to analyze the three foreseeable trends in economic, social, and political in the next two decades in Mexico.
At the end of the paper the most important factors in shaping the economic, social and political landscape of Mexico in 2030 and beyond are identified. It is also examined how the Mexican society will cope with the broad range of challenges furthermore it is assessed what conditions may be key to transforming economic, social and political trends into security and social welfare issues.

Estimating profit efficiency in the South African mining sector using stochastic frontier approach
Oludele Akinloye Аkinboade, University of South Afriса, South Аfrica
Emilie Chanceline Kinfack, University of South Africa, South Africa
Mandisa Putuma Мokwena, South African Revenue Service, South Africa
Wolassa L. Kumo, South African Revenue Service, South Africa

Abstract. This paper analyses profit efficiency of selected mining firms in South Africa over the 2003-2006 period. A stochastic frontier analysis method was used. The estimated model shows the presence of stochastic frontier profit possibilities. All variables that affect profitability of the firm are highly significant. The fourteen firms covered are ranked in terms of their efficiency performance over this period At 37 %, the average profit efficiency of 50% of firms or 7 firms is above the overall average.

Antecedents of entrepreneurship, with a focus on culture in an emerging country context
Boris Urban, South Africa

Abstract. The purpose of the paper is to highlight antecedents of entrepreneurship by focusing on business regulations, culture, self, and entrepreneurial outcomes; this article provides a broad overview of the potential patterns of interactions between cultural values, personal and contextual factors, and entrepreneurial outcomes. The approach includes building on previous conceptualisations and empirical findings so that salient antecedents of venture creation from established literature are identified. A framework is then proposed, building on previous research findings to approach the interaction between the multiple interacting influences on entrepreneurship more systematically. In the proposed model, cultural values affect the perception of an individual resulting in key entrepreneurial outcomes; cultural values are depicted as a prime factor leading to entrepreneurial outcomes, which are largely dependant on the prevailing conditions in the broader environment.
Implications for entrepreneurs, educators, and policy makers are that the complexity of factors involved in enhancing or constraining entrepreneurship should all be given due consideration, without any one set of variables overshadowing the other factors. The value in the paper is that since no unified theme exists regarding the relationship between culture/self/context and entrepreneurship, the synthesis of the variables proposed in this framework offer an introductory roadmap to guide future research.

Retail black economic empowerment compliant companies: cultural renewal in South Africa
Louise van Scheers, University of South Afriса, South Аfrica

Abstract. Broad-bases Black economic empowerment (BBBEE) represents one of the largest voluntary shifts of assets in modern history. The South African process is extraordinary because of the government's proven skill at striking a balance between promoting social engineering and heeding the legitimate concerns of business. A decade after the first democratic elections, South Africa is still characterized by high levels of racial and class inequality, and increasing unemployment that places pressure on economic development. BBBEE is a way to stimulate economic development by releasing the economic potential of the black population. Secondary sources reveal that the process of BBBEE, has up till now largely created emergent black business elite, but has failed to generate far-reaching economic empowerment at the grassroots level and equitable economic development in South Africa. The aim of the research was to analyse whether BBBEE compliant companies enhance economic development in South Africa. Economic development and BBBEE compliance are complementary and related processes if applied effectively. The research established that BBBEE compliant companies do not enhance economic development in South Africa. If the principle of BBBEE is effectively applied economic development will be increased. Companies need to bring about significant increases in the number of black citizens that manage, own, and control the country's economy; it is only then that equitable economic development may be sustained.

Does LMX enhance the job involvement of financial service personnel by the mediating roles?
Yenhui Ouyang, Kun Shan University, Taiwan
Chun Hao Cheng, National Kaohsiung Hospitality College, Taiwan
Chi Jung Hsieh, Kun Shan University, Taiwan

Abstract. This research seeks to investigate the critical mediating effects between leader - member exchange and the job involvement of financial service personnel. The empirical results showed that leader-member exchange (LMX), job satisfaction and corporate social responsibility had significant direct effects on the organizational commitment of employees, and that the organizational commitment of employees had a direct significant effect on job involvement. In addition, forming a good organization climate is helpful to enhance the job involvement of employees. For example, the establishment of a good reputation and behavior with regard to corporate social responsibility result in employees' feeling proud of the organization and contributing to the long-term benefit of the firm. In addition, employee organizational commitment is a quite important mediator with regard to job involvement. LMX, job satisfaction and corporate social responsibility also had indirect effects on job involvement through the organizational commitment of employees. The implications of the findings are discussed, and directions for future research are suggested.

On the causality between stock prices and exchange rates: evidence from Turkish financial market
Yaşar Köse, Turkish Military Academy, Turkey
Murat Doğanay, Ankara University, Turkey
Hakan Karabacak, Turkish Military Academy, Turkey

Abstract. The aim of this paper is to investigate the existence and direction of relationship between stock prices and exchange rates for Turkish financial market. Granger (1969) causality testing methodology was employed to reveal the nature of relationship between two variables. This work contributes to the existing body of literature in the way that in Turkish financial market, there is a uni-directional causality running from stock prices to exchange rates using the daily observations for the sample period, which runs from February 23, 2001 to November 4, 2009. Also, the model used in this study extents the scope of exchange rate variables including a total of five currencies - US dollar, Euro, Japanese Yen, Pound Sterling, Swiss Franc and two baskets of currencies of Undersecretariat of Foreign Trade of Turkey. This evidence has implications for the policy makers and economic actors to perceive the movements in stock prices as a dynamic determinant, which may affect the success of their exchange rate policies.

Family friendly concepts and tools in different-sized Hungarian organizations based on empirical study
Habil Andrea Bencsik, Széchenyi István University, Hungary
Tímea Juhász, Széchenyi István University, Hungary

Abstract. In today's world, more and more people have been thinking whether to put their family or their career to the foreground as there does not seem to exist any balance between the two aspects today. The reconciliation of work and family life can be seen today not only as an individual, but rather, as an organizational problem. After all, an employee who is tense, exhausted or tired because of their responsibilities at home will not be effective at work and vice versa.
It is no wonder, then, that several Hungarian organizations are putting more and more emphasis on solving these occasional problems. In this article, an empirical survey is used to present the different tools used by different-sized Hungarian companies to help employees reconcile their work and their private lives.

The popularity of project work - A contemporary paradox?
Svein Arne Jessen, Norwegian School of Management, Norway

Abstract. The Nordic countries early took on the project approach as a convenient problem solving vehicle for hugh technical installments. Particularly in Norway, when the discovery of the rich oil and gas resources in the North See was decided developed as "projects". Today it hardly needs stating that project work has become the most popular tool in contemporary society for planning and executing large-scale, complex investments. Projects in the public and private sector are synonymous with goal-directed activity, effective resource utilisation and personal dedication. The modern project concept encourages originality, flexibility, interpersonal collaboration and development.
But at the same time, project work is now known to generate a number of problems. So while project management guides proliferate in the form of books and articles showing how success can be achieved through project work, the actual results are mixed. History can point to at least as many fiascos as successes. What explains the popularity of project work in the face of the problems that affect so many projects?
The article explores two of the main conclusions from a study of perceptions of project work in society, especially possible differences between the way private compared to public enteties are affected. First, respondents clearly believe project work has changed several areas of society, though the degree or magnitude of the impact varies. In some areas, project work has clearly generated new ways of behaving and thinking benefiting both public and private organisations. In other areas, though, the impact is apparently marginal. Some of these are particularly concerning as they are frequently drawn on to justify this form of work in practice. Second, project work raises several paradoxes. While projects are beneficial, these selfsame implications often create problems for the business, institution or individual in modern societies. The article discusses some of these consequences and paradoxes and concludes by suggesting what could and should be done to mitigate the problems, and improve current project management research and training.

The link between diffusion of the concept of sustainable development and the composition of governing bodies: companies listed on the stock exchange
Dominique Wolff, Ecole Supérieure de Commerce et Management, France

Abstract. Incorporating principles of sustainable development into management practices involves fundamental change which requires the support of a company's senior management as well as its governing bodies, particularly the board of directors and its affiliated committees. The aim of this paper is to analyse the rate of increase in awareness of sustainable development issues as well as incorporation of new regulations advocating ‘best practice' in the area of corporate governance and explore links with the operation and composition of the board and its affiliated committees. This research has been conducted on the basis of case studies carried out over the period 2002 to 2007 in relation to French companies listed on the stock exchange.

Taxes, public spendings and economic growth in OECD countries
Keshab Bhattarai, Business School, University of Hull, UK

Abstract. Impacts of taxes and spending on accumulation and growth are assessed theoretically using neoclassical, optimal growth and overlapping generation models. Empirical supports based on rank correlation and panel regression analysis suggest that countries with higher tax GDP ratio generally had lower growth rates compared to others with lower ratio in OEDC when examined from 1991 to 2006. The country and time specific factors seem to play more prominent role than by the taxes. Country specific differences have their historical roots as collective preferences, constraints on sizes and modalities of public goods and services and willingness to pay for them and the optimal size of private sectors and the desire for economic freedom are influenced by those factors. Time specific factors owe to international business cycles. Real factors including the rate of capital formation, human capital and technology are more important for growth than the tax rates as higher tax rates are associated with higher rate of public services. Negative effects of taxes are often compensated by positive effects of public goods, thus leaving a very small net negative impact on growth.

Strategizing humanitarian logistics: the challenge of collective action
Jérôme Chandes, CRET-LOG, Peru
Gilles Paché, Reims University, France

Abstract. The management of logistical operations was for numerous years the weak link in the relief chain. In a situation of humanitarian crisis, the utmost urgency was to raise funds, which included resorting to the power of show business. Knowing whether the collected funds would be efficiently spent, particularly in the distribution of help, was not really a priority. Since then, things have changed, as the part now played by logisticians within NGOs shows. Unfortunately, research on humanitarian logistics often tends to favor a technical approach in matters of operational management. Although this outlook remains interesting for improving the use of scarce logistical resources, it must be associated with more organizational approaches looking for the best way of coordinating humanitarian supply chains. Using the case study of Pisco earthquake in Peru (August 2007), the article chooses this angle of examination in reference to the concept of collective strategy.

Urmas Arumäe, Estonian Business School, Estonia
Arno Almann, Estonian Business School, Estonia

Abstract. The purpose of this article is to present the reader with the authors' interim summary on the particularities of the organization of public territorial corporate bodies and their management compared to other organizations and their management. The authors take the position that territorial communities as membership of public territorial corporate bodies are not organizations but processes that cannot be managed. On the other hand, one can speak of management at the institutional level of public territorial corporate bodies, such as the management of the processes that take place in the council elected by the members of the community and in the government formed by said council.
The article is based on the case of the Republic of Estonia and on Estonian law. It should be stressed that modern Estonian law is based on the law of Continental Europe, and more specifically on the German legal model.

Cultural preferences in the choice of coordination mechanisms - a comparison of Sweden and China
Håkan Pihl, Kristianstad University College, Sweden
Marcus Bornholt, Kristianstad University College, Sweden
Marianne Elfversson, Kristianstad University College, Sweden
Andreas Johnsson, Kristianstad University College, Sweden

Abstract. The purpose of this paper is to analyse cultural influences on the choice of coordination mechanisms. Based on the Globe report, propositions are developed on how different cultural dimensions affect the choice of coordination mechanisms. Market mechanisms are proposed to be preferred in cultures characterized by a high level of performance orientation, assertiveness, in-group collectivism and low levels of institutional collectivism, power distance and uncertainty avoidance. Societies with the opposite profile are expected to have a bias in favour of hierarchical mechanisms. Based on the propositions, the cultural clusters identified in the Globe report are analysed and categorized according to their relative preferences for market or hierarchical mechanisms. Finally, an experimental study was performed to study cultural biases in choice of coordination mechanisms. In the experiment, two groups of students of Swedish and Chinese origin performed roles as principals and agents in a multi-task situation. According to the previous analysis Swedish students were expected to show a strong preference for hierarchal mechanisms whereas Chinese students were expected to have preference for market mechanisms. The result supported these predictions.

Leadership in Estonia

Krista Tuulik, Mainor Business School, Estonia
Ruth Alas, Estonian Business School, Estonia

Abstract. Current paper concentrates on the subject of leadership during the years of transformation of Estonian economy i.e. the first fifteen years of re-established independence. The research question was - what are the characteristics of the Estonian manager/leader during the transformational period. The hypotheses of current research -The leadership style practiced in Estonia during the period from re-establishing the independence till joining the EU can be named transformational - found support as the global leadership style visionary/value based is different form Estonian visionary-value/team oriented leadership style. Extra characteristics (e.g. administratively effective, being information source, team orientation and communicator) which belong in this style support the conclusion that it can be called transformational.

Electricity consumption, labour force participation rate and economic growth in Kenya: an empirical investigation
Nicholas M. Odhiambo, University of South Africa, South Africa

Abstract. This study examines the dynamic causal relationship between electricity consumption and economic growth in Kenya during the period of 1972-2006.Unlike the majority of the previous studies, the current study incorporates the labour force participation rate as an intermittent variable in the bivariate causality setting between electricity consumption and economic growth - thereby creating a simple trivariate causality model. Using cointegration and error-correction models, the study finds a distinct unidirectional causal flow from electricity consumption to economic growth in Kenya. In addition, the study finds that both economic growth and electricity consumption Granger-cause labour force participation in Kenya. The results apply irrespective of whether the causality is estimated in the short run or in the long run. The study, therefore, concludes that electricity consumption is a panacea for economic growth in Kenya and any energy conservation policies should be treated with extreme caution.

The ex post use of formal contracts in high-tech alliances. A contingency perspective
Gjalt de Jong, University of Groningen, The Netherlands
Rosalinde Klein Woolthuis, Vrije Universiteit Amsterdam, The Netherlands

Abstract. In this study we investigate key contingencies that determine the active use of a formal contract after the strategic alliance has started. The antecedents for this ex post contract use address the contracting process, the need to safeguard spill-over risks and the existence of trust. The model is tested with unique and comprehensive data that were collected directly from a field study of 391 Dutch business managers. The results provide convincing evidence to support our perspective of contractual governance in durable business relationships that strive for the development of new technological knowledge.