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Biases in the calculation and use of cohort life tables

Emilio Venezian

Professor Emeritus
Rutgers, The State University of New Jersey

Keywords: bias, cohort, life table, longevity, mortality

Mortality tables, whether period or cohort, are the basic starting point for forecasting mortality and longevity. This paper explores the way in which standard methods of computing cohort life tables might distort reality by presenting some simple models of the relationship between age and cohort mortality. The results show that substantial distortions occur even in infinite populations with no migration because some of the assumptions are valid only in the limit of zero mortality. In some cases, a simple correction can be applied to the usual result to obtain a much better approximation to the underlying mortality schedule. The analysis also suggests that the habit of using the mid-point of the age range as representative of the age of a group will distort the relations at high ages and mortalities, therefore leading to a confounding of cohort effects and secular time effects in studies that attempt to explain or predict changes in mortality based on these factors.

Exploring the Antecedents of Business Performance: the Role of Innovation Capability and Entrepreneurship at Small and Medium Enterprises

Edlyn Khurotul Aini

Master Student Double Degree, Department of Business Administration, Brawijaya University and National Pingtung University of Science and Technology

David Ching Lung Shen

Association Professor, Department of Business Administration, National Pingtung University of Science and Technology, Taiwan

Mochamad Al Musadieq

Association Professor, Department of Business Administration, Brawijaya University, Indonesia

Siti Ragil Handayani

Association Professor, Department of Business Administration, Brawijaya University, Indonesia

Keywords: Learning Orientation, Information Technology Resources, Entrepreneurship, Innovation Capability, Business Performance.

Small medium enterprises require strong innovation capability to achieve competitive advantage. Based on previous empirical researches, this study emphasizes the importance of innovation capability as the role on business performance. Data were collected from 228 of small medium enterprises in Kediri, East Java, Indonesia and analyzed using structural equation model. The major findings include first, innovation capability and entrepreneurship has significantly positive impact on business performance respectively. Second, learning orientation has a significant and positive effect on innovation capability. Third, IT resource has significantly positive impact on learning orientation and innovation capability respectively.

A Study of International Business Theory Development

Ya-Ping Chou

Cheng-Hsuan Huang

Liang-Hua Chien

Jia-Ying Zhang

Ying-Ying Zhuo

Chia-Shan Tsai

Yi-Chou Wang*

Lecturer and students of Department of International Business Management
Tainan University of Technology, Taiwan, R.O.C
TEL: +886-922520523
E-Mail: yichou@hotmail.com

The authors are deeply indebted to Professor McLee Yender, PhD, of Chang Jung Christian University, who inspired the conceptual framework of this paper.

Keywords: International Business, Knowledge Network, Citation Analysis, Mapping

This study is focus on IBR (International Business Review) and JIBSs (Journal of International Business Studies) for recent decades. Using the high cite references to find out the most influential articles and scholars, which presents a solid foundation for a knowledge network in international business area. It also can explore the process to relevant knowledge network. To map the intellectual structure of international business in the past 30 years, which can identify traces the evolution of international business research. It is not only finding the current popular topic, but also provides a valuable tool for researchers to point out e future direction and Contributors.

Can Corporate Governance Activate R&D?

Li-Hsun Wang

Assistant Professor of Department of International Business Administration
Wenzao Ursuline College of Languages, Taiwan, R.O.C
TEL: +886-7-3426031
E-Mail: 97027@mail.wtuc.edu.tw

Chu-Hsiung Lin

Assistant Professor of Department of Finance
National Kaohsiung First University of Science and Technology, Taiwan, R.O.C
TEL: +886-7-6011000
E-Mail: chusiung@mail.nkfust.edu.tw

Chia-Hui Lin

Ph.D. candidate of College of Finance and Banking, Corresponding Author
National Kaohsiung First University of Science and Technology, Taiwan, R.O.C
Tel: + 886-7-6011000
E-mail: u9747902@ccms.nkfust.edu.tw

Keywords: corporate governance, R&D, stock performance.

Extant literature suggests that not all the R&D activities incur pleasing outcome. This study tries to examine whether the corporate governance activates R&D, consequently leading to positive market reaction by using the unbalanced panel Taiwan data from January 1998 to December 2010. We find that market reacts conservatively to electronic firms and positively to non-electronic firms. While the quality of corporate governance is taken into consideration, the interaction between corporate governance and R&D is found to associate positively with stock return in electronic industry. Whereas, no significant relation is found for those non-electronic firms. We suggest that investors might regard R&D as a substitution of corporate governance mechanism in non-electronic industries based on the agency cost hypothesis and the corporate governance enhancing the confidence of investors on R&D activity in electronic industry.

Market Value in the Context of the Residual Income Valuation Model

Chao-Hui Yeh

Department of Business Administration; I-Shou University, Taiwan, ROC;
TEL: +886-7-6577711#5914
E-Mail: chy@isu.edu.tw

Keywords: Valuation Model, Residual Income, and Growth

We generalize Yeh’s (2001) model to growth rates. Our analysis of the case when earnings suffice for valuation yields two models. Both (I) and (II) models can explain the price-to-forward-earning (P/E) ratio, but they do so with different dependent variables. In case of (I) formula, the return on equity (ROE) explains the P/E ratio. In case of (II) formula, the growth in expected net income explains the P/E ratio. Therefore one obtains two distinct ways of explaining the P/E ratio with transforming the mathematics. With growth being expected, it follows that the firm’s price equates book values add growth or equates capitalized forward net income add growth. The contribution of this paper is to add a new model to the valuation theory.

The Research of Influential Factors of High Vacancies in Taiwanese Residential Industry: A Dynamic Perspective

Henry H. Y. Hsieh

Assistant professor
Department of Business Administration
National Ping Tung University of Science and Technology
Tel: +886-8-7703202 Ext 7694
Email: henry@npust.edu.tw

Keywords: Residential construction industry, Vacancies, Developer behavior, Regional development, Group irrationality, Rational window

Vacancy is influenced by developer behavior and exacerbated by regional development. Little research involves this issue. Yet it is growing important due to high vacancies of 1.56 million revealed by the 2010 residence and population survey (DGBAS 2010). The influential factors of vacancies are examined by constructing a developer behavior model and a dynamic vacancy model to examine the crucial factors of vacancies. A multiple regression model of developer behavior is built by a pooled cross-sectional time-series of 23 cities and counties in Taiwan during 1999-2010. A sample of 276 observations is tested. Further a dynamic vacancy model is constructed by two stage least square method (2SLS). The empirical results indicate that high level of group irrationality in developers and consumers. Region develops separately shaping different residential industrial life cycle. Structural vacancies contribute to high vacancies. However inequality of house ownership and group irrationality exacerbate the already existed vacancies. We suggest that government should frequently release more measurable indicators and updated information and make them available and accessible to improve individual cognition and rationality. Individual developer should adopt differentiation in design, services, quality, or value activity to reduce group conformity. By differentiation developer can increase group rationality widening rational window in order to reduce ineffective vacancy.

A Study of Applying FMEA in Preventive Maintenance Program Developing

Chee-Cheng Chen, Wen-Ying Cheng

Associate Professor
Department of Business Administration, National Pingtung University of Science and Technology, Taiwan, R.O.C
TEL: +886-8-7703202, Ext. 7679
E-Mail: carl2004@mail.npust.edu.tw

Keywords: FMEA, FTA, TPM, APM

Since 1971 Total Productive Maintenance (TPM) has been developed and phased into many manufacturing firms in Japan to promote productivity and competitiveness. Autonomous preventive maintenance (APM) systems are very special. The fundamental pillar of TPM includes a series of important systematical first line direct labors activities. The technical cost, human resources, and management issues are all considered. Failure Modes and Effects Analysis (FMEA) and Fault Tree Analysis (FTA) are the most popular failure analytical methods widely adopted over different industries. They are often used to examine the potential problems in the design and manufacturing phase; discovering possible failure causes before product design and manufacturing finalization. This study integrates the FTA and FMEA of techniques to establish an APM system that meets the company’s goal of reducing manufacturing costs, and promoting employee and equipment productivity. The major contribution of this study is constructing potential equipment failure modes and their Risk Priority Number (RPN) through FTA and FMEA integration transformed into a selection of items and their APM maintenance frequencies. A strategy for deploying employee technical capability upgrade through effective training is developed. This study uses the S company – a key manufacturer of Semiconductor material – as a case study to verify the model’s applicability and suitability.

A Measure of Service Quality for Taxi Company in Hanoi,
Vietnam: Some Empirical Findings for Future Marketing Strategy

Tsung-Hao Chen*
Hui-Chin Chu

Assistant Professor, Department of Business Administration, Shu-Te University, Taiwan, R.O.C.
* Corresponding author E-Mail: thchen@stu.edu.tw

Ngo Ngoc Vi

Graduate student, Graduate School of Business and Administration, Shu-Te University, Taiwan, R.O.C. and graduate student, Vietnam Education University, Hanoi, Vietnam.
TEL: +886-7-6158000-3100

Keywords: Customer satisfaction, SERVQUAL model, taxi transportation service

Businesses must themselves seek for different ways to compete with their rivals. Since service quality appears, the stage for the assessment by the clients begins. Many researchers and experts have tried to identify measure and manage the quality of the services. Specifically, the quality is significantly more important in taxi services. Higher development of social life results in higher need for the taxi service. A large number of taxi companies have been established, thus the competitive pressure in the industry is considerably huge. As a result, in order to survive, compete and develop, the taxi companies must improve the quality of their services.
The aims of the study are to test the SERVQUAL scale in measuring the quality of taxi transportation service, to discover the components of quality of taxi transportation service, and to find out the effects of service quality on the customer satisfaction and the differences in service quality evaluation. The research results point out that satisfaction is affected by assurance and empathy of staff, tangibles and responsiveness. In particular, the assurance and empathy of staff is the largest affecting factor, followed by responsiveness and tangibles. That is, people in Hanoi city, Vietnam ignored the taxi company reliable in providing service. They care about better and newer taxi, they hope taxi driver helpful and capable of providing service towards customers and has to experience client’s feelings in very heavy traffic of Hanoi city.