Kok-Boon. Oh

Measuring production and marketing efficiency using grey relation analysis and data envelopment analysis

The aim of this paper is to measure production and marketing efficiencies in the printed circuit board (PCB) industry using grey relation analysis (GRA) and data envelopment analysis (DEA) techniques. A total of 32 efficiency indicators are initially considered and seven are selected. They represent five indicators for production efficiency and two for marketing efficiency. Fifteen of the 23 companies evaluated need improvement in both production and marketing efficiencies, while four companies had their priority production efficiency improvement and the remaining four companies with priority in marketing efficiency improvement.

An empirical study of the use of e‐security seals in e‐commerce

Purpose – The purpose of this paper is to examine the use of e‐security seals on web sites and their relative impact on e‐commerce firm reputation in influencing customers perceptions of trust in a service provider.Design/methodology/approach – Two interrelated empirical studies are conducted to evaluate the use and impacts of e‐security seals in e‐commerce. An exploratory study methodology investigates the use of e‐security seals and a questionnaire survey is used to gauge consumer knowledge of seals.Findings – Using survey data from 211 web users, the results show that 106 respondents are cognitive and affective of e‐security seals. The results also provide further clarification of the relationship between e‐security seals and sales effectiveness. The findings point towards a positive belief by consumers in e‐security seals.Research implications – Third‐party e‐security seals organisations should undertake more promotional activities and advertising to educate comsumers about the use and benefits of e‐...

An empirical evaluation of option pricing in intellectual capital

The investments in intellectual capital by firms in the knowledge economy are a critical driver for growth, profitability and competitiveness. This paper reviews the basic option‐pricing models for pricing financial instruments and evaluates their characteristics in relation to their applicability to intellectual property, focusing on two distinct characteristics, i.e. past decisions that influence future technological options, and the inherent uncertainty over future innovation opportunities. The findings in this study include the discovery and confirmation of certain financial characteristics that are important for the successful implementation of the option‐pricing methodology in high technology financial planning and management. This paper attempts to summarise the current strand of literature pertaining to the use of option pricing in the intellectual capital‐intensive sector by evaluating their strengths and weaknesses, and make recommendations as to how they can be effectively addressed to produce better results in the valuation process.

Selecting Internet company stocks using a combined DEA and AHP approach

The development of an efficient and scientific decision rule for selecting Internet stocks is a necessary and valuable investment tool. As a result, this article adopts two mathematical approaches: data envelopment analysis (DEA) and analytical hierarchical process (AHP) to construct a stock selection framework using 31 listed US Internet companies. The empirical results from this study form the basis for discussion of the combined DEA and AHP approach for selecting Internet stocks. The findings confirm the usefulness of the combined approach that incorporates efficiency analysis and structural decision making. Implications of these findings are also discussed.

Knowledge sharing: game and reasoned action perspectives

Purpose – The purpose of this paper is to investigate knowledge sharing (KS) to characterize its behavior in companies based on the concepts of theory of reasoned action and game theory (GT).Design/methodology/approach – The paper proposes two models: Model A: KS process is constructed by capturing personal psychological feelings; and Model B: KS process is not only constructed by personal psychological feelings but also takes into consideration other peoples decisions. By comparing the two knowledge‐sharing models predictability performance, the authors are able to characterize the process of KS.Findings – The results show that different companies require different models. On average, Model B with game concept has lower predictive accuracy than the Model A without game concept.Research limitations/implications – The paper provides practical implications for manager to frame effective KS policies and also suggests future studies to improve measurement.Originality/value – The values of this paper are: pr...

Measuring online stockbroking performance.

Purpose – This paper aims to present a study which uses an innovative two‐stage data envelopment analysis (DEA) model that separates efficiency and effectiveness to evaluate the performance of 28 online stockbrokers in Taiwan from 2003 to 2005.Design/methodology/approach – The approach is based on two‐stage DEA.Findings – The results show that seven companies are CCR‐efficient in their operating efficiency; five companies are CCR‐efficient operating effectiveness and only two companies are CCR‐efficient both in operating efficiency and effectiveness. There is no apparent correlation between efficiency and effectiveness.Research limitations/implications – This paper presents a two‐stage DEA study to investigate the efficiency and effectiveness in the online stockbroking sector. The online stockbroking business is a development from the integration of the internet and the stock trading. As the stock brokerage industry is undergoing a rapid change due to the proliferation of the internet, analyzing the relat...

Intellectual capital management in transition economies

The impact of the intellectual capital in transition economies differs from that of industrialised economies from a socio-economic political context. The failure to adequately recognise and manage intellectual capital in transition economies has more profound implications due to greater allocative and informational inefficiencies. The existant literature predominantly discusses intellectual capital in a Western context and the concept has yet to receive much attention in Asian transition economies. This research investigates the role of intellectual capital in a rapidly evolving transition market that is transforming from agricultural to industrial development and a closed to open economy. The findings confirm the strong links between the intellectual capital and performance in a transition market in the context of socio-economic political systems. Many Asian transition economies share many similar characteristics and the findings are applicable to these economies.

Natural disaster and financial risk management

This paper explores and discusses the financial issues faced by firms in a natural disaster. It introduces the disaster risk environment and the factors that affect the operations of a firm. The implications of a natural disaster in terms of unsystematic and systematic risks, investment evaluation, strategic investment, and risk and compliance are addressed. It provides a framework to analyse the disaster risk exposure of a firm and how it might be used in risk management. The discussions in this paper are relevant to the Wenchuan earthquake in China in May 2008.

Measuring Value in New Biotech Firms: An Empirical Modelling Approach

This study links two key disciplines in finance and science in a way which is representative of the many challenges in the development of the knowledge economy. The biotechnology sector is regarded as one of the major growth engine in the development of the knowledge economy and in order to sustain this, it is imperative that biotech firms continue to attract capital needed to finance business activity. An important aspect of raising capital is the ability to impute a fair value on the asset. Biotech firms are typically intellectual property intensive and derive its value from this source. However, the valuation of intangibles remains a contentious issue in finance as to the most suitable approach. In this study, the financial and economic issues pertaining to the valuation of new biotech firms are evaluated and addressed vis-à-vis the value drivers of these firms. The value drivers are tested for significance and hypotheses are formed on their financial, economic and management implications. The investigative process involves using quantitative methods, such as descriptive statistics, logit modelling and multivariate regression, to evaluate the valuation issues in the context of the challenges faced in valuing these potentially high-growth and intellectual-capital intensive firms.