Volume 5 Number 2 (October 2005 - March 2006)

  Structured Impediments for Smaller Ventures in Creating New Emerging Industries in a service-Oriented Economy
Natoshi Osada, Chihiro Watanabe

In contrast to the notable achievements recorded up to the end of the 1980s, Japan’s economy is now facing a structurally heterogeneous stage of development. This can largely be attributed to a paradigm shift from an industrial economy to a service-oriented economy that emerged in the 1990s. There is a need for a change in the business model used by industry. First, there needs to be a shift to creation of a functionality development focus. Second, such a shift can be expected to be initiated by smaller ventures since they are relatively free from the impediments of organizational inertia. Third, the removal of institutional impediments that are indigenous to traditional institutions is indispensable. This paper attempts to identify impediments that will hinder efforts of Japanese industry to shift in the direction described above. An empirical analysis is conducted using data for 3,108 smaller ventures in Japan active in twelve emerging new business fields in the manufacturing, service, commercial and construction sectors during 2001. On the basis of a questionnaire survey, structural impediments in creating new emerging industries in a service-oriented economy are identified depending on business activities, vintage of ventures and identities of CEOs. Noteworthy findings obtained include the following: There is a significant relationship between new start-up ventures and economic growth in Japan, The low level of recent entrepreneurial activity in Japan is chiefly due to institutional circumstances, business activities of smaller ventures in Japan biased toward certain fields, significant impediments are diverse and differ depending on venture nature, while existing public support is somewhat stereotyped, more sophisticated support corresponding to the diversity of impediments is necessary.

  Information Technology, Corporate Business Firms and Sustainable Development: Lessons from Cases of Success from India   Vinnie Jauhari

This paper critically analyses some cases of success of interventions initiated either by corporate firms or supported by the corporate firms which lead to community development. These cases highlight practices which could be adapted in any part of the world. These interventions are a win – win situation both for the firms and the communities involved. A multiple case study approach has been adopted. The range of interventions range from being very specific to being very wide in their approach and help the grass root level communities to emerge out of the poverty trap. The analysis culminates in development of a framework which attempts to link the nature of the intervention with the stage of development. The study concludes that the interventions have to be linked with the stage of development and resource strength in a particular geographical location. The resource could be a raw material or manpower which could lead to the turnaround of that region. Where the stage of development is low , wherein people do not even have access to basic amenities, the nature of interventions have to be wide so as to simultaneously have positive impacts on food, shelter, water, education, employment, women empowerment (as in SWRC Barefoot College initiative). Sophisticated technologies in such cases may not generate the desired effect. For areas which have some basic resources, IT and other related technologies can be channelised as in case of HP and Tarahaat for evolving new commercial products and services. The ITC’s case study is an outstanding example of self sustaining intervention which leads to identification of a new business channel which also empowers rural communities and brings in efficiency in the business processes. The policy implications are suggested and pointers towards aspects that need to be taken care of to make these interventions successful have also been delved upon.

  A Situational Model Development in Hospitality Retailing: The Case of Irish Pubs
G. Barry O’Mahony, John Hall, Wayne Binney

Although importance of situational influences on consumer behaviour has been recognised for some time, little research has been conducted into their effects on hospitality retailing. Over the past decade the Irish theme pub sector has enjoyed extensive growth, which recent studies attribute to the situational components inherent within the environment. This study identities and evaluates the situational components that influence consumers within Irish theme pubs and gauges impact of each of the dimensions of an established situational model on customer behaviour using gender and age cohorts. A three phase, mixed method research design was used and respondents were selected from six Irish theme pubs in Melbourne. The study found that both physical and social situational components have a significant influence in attracting, serving and satisfying the needs of consumers.

  The NOnfinancial performance Measurements of financial service industry:- A Study of taiwan mutual fund market
Chiung-Ju Liang, Ming-Li Yao

In this study, we take the Taiwan mutual fund market as example and establish the models to explore the correlation between the nonfinancial measurements and performance. In this study Path Analysis is used to present the effect of nonfinancial measurements on fund performance. Issues such as the correlation between variables, difference between direct and indirect effect, and cause-and-effect relation models, are analyzed through multivariate models. Deconstructed sub-models are also set to test the stability of models. We find there is a time-lag effect between nonfinancial measurements and fund performance. There exists a relation between incentive contracts and fund managers’ satisfaction with their rewards which it also affects future fund performance. There is no significant relation between a fund’s past performance and its future performance – which can even be reversed in the future. The current rend of financial internationalisation and liberalisation has underlined the importance of effective performance evaluation in financial service industry.

H. Gayathri, Vinaya M.C., Lakshmisha K.

Consequent to the implementation of government policies on globalisation and liberalisation, the consumers have become more critical of the quality of service. Consumers are now aware of the alternatives available in relation to services and the provider organisations. Consumer expectations are rising and the provider organisations should be aware of these expectations. An attempt has been made in this paper to quantitatively study the levels of the dimensions of service quality and its relation to the level of customer satisfaction. This pilot study is confined to only insurance companies to illustrate the methodology.

  Towards Relational Exchange in Services Marketing:Insights from Hospitality Industry
Rajnish Jain, Sangeeta Jain

Relationships are forming new bases for achieving competitive advantage in the changing business scenario. Service organizations of all types and sizes are shifting their focus from transactional exchange to relational exchange. With the growing realization about the benefits of being a “relationship oriented organization”, marketing strategies are designed to incorporate technical and behavioural features of service solution, which are essential to create a satisfying, pleasurable and memorable customer experience. Adopting a customer centric approach allows the service firm to effectively utilize all its resources to create a desired customer experience. Trust, commitment, ethical practices, fulfillment of promises, mutual exchange, emotional bonding, personalization and customer orientation have been reported to be the key elements in the relationship building process. The present study analyses important dimensions of relational exchange and presents insights from an empirical study of hotels regarding practices adopted for customer relationship management. Nine factors governing CRM effectiveness in hotel industry have emerged from the factor analysis which strongly emphasizes the need for humanizing people, process and technology to build emotional bond with the customers.

Madan Lal Bhasin

For any organization to thrive in today’s business environment, it must deal effectively with global competition and the rapid pace of technological change. The Internet has played a vital role in transforming business in the new millennium. As an innovative tool, the Internet is gradually entering our lives and improving cost effectiveness, catalyzing disintegration, and increasing convenience for businesses and their consumers. Perhaps, nowhere else is the impact of the Net felt as much as in the marketing of services sector”—it has— opened new channels for service delivery, shortened turnaround times, and offered unprecedented convenience to customers. The focus of this paper is on the “marketing of financial services,” with special emphasis on ‘e-broking’. The paper discusses e-service revolution. It also summarizes distinct phases in the development of e-broking and the mechanism of e-trading. The “Six ‘S’ Model”, which provides a framework for analyzing the potential e-enablement of a service is also discussed. The benefits for users and brokers are also enumerated. Some problems caused by switching over to an e-broking system are deliberated. For any e-trading system to be successful, one should provide for foolproof security, reliability and confidentiality of data. The key success factors, various security models that are adopted by the e-broking industry are elaborated. The paper portrays the prospects for an e-broking industry around the globe.

  The Initial Trajectory of New Venture Start-Ups - LESSONS from the Milk Crown Model FOR Services Management
Miyuki Mitsuda, Chihiro Watanbe

Facing a paradigm shift from an industrial economy to a service-oriented economy, and in order to leverage such a shift, the initiatives of new ventures have been strongly expected. However, there exist some barriers impeding the successful trajectory of new venture start-ups, particularly in the initial stage of start-up. Therefore, identification of the crucial conditions governing the initial trajectory of new venture start-ups is extremely important for a service-oriented economy. Conditions governing this trajectory are similar to the formation process of the milk crown in the co-evolution of oil and water, where the affinity between internal conditions such as viscosity and liquidity and external circumstances is crucial. These conditions are similar to the start-up of new ventures, for which the affinity between the internal structure of ventures and external market conditions is crucial. Stimulated by these understandings and prompted by the Milk Crown Model formation concept, this paper attempts theoretical and empirical analyses that identify the governing factors of the initial trajectory of new venture start-ups. On the basis of a theoretical analysis of the formation process of the Milk Crown model in the co-evolutionary circumstances between water and oil, and also an empirical analysis of the successful trajectory of a leading Internet business, an attempt is made to develop a model depicting the initial trajectory of a new venture start-up. Utilizing this model and based on the empirical analysis, crucial factors decisive to the success of new ventures are identified, and policy suggestions supportive of services management for inducing start-up ventures in a service-oriented economy are extracted.

  Leveraging Information Systems Tools,Security and On-line Usage in Banking and Insurance Sector
Versha Mehta Parikshat Singh Manhas

The second generation reforms have been pioneer in opening up the world markets. Around the globe the policies of liberalization, globalisation and privatization have been widely followed by different countries. India as well as other SAARC countries have also been opening up their markets. As a result the global markets have become very competitive. In this age of competition, banks and Information Technology are playing increasingly important role in the economy of every country. Banks and Information Technology are becoming increasingly dependent upon each other and the most important thing to learn from Y2K problem that struck world wide in the year 2000 has not been its direct cost as it has been the warning about how companies software applications are becoming the central nervous system of the organization. Software tools and techniques are, as a result of this, increasingly determining the nature of the experiences the customers, the employees, the partners and the investors have with the organization, its products, services and the operations. In this context, therefore, the software-mediated experiences are critical for retaining the customers, motivating the employees, collaborating effectively with the partners and communicating with the investors. The efficiency and effectiveness of Information Systems, besides depending upon the culture of the organization, also depends upon the appropriate use of systems tools and techniques. Numerous studies have tried to relate the efficiency and effectiveness of the organization from the point of view of the information technology as a whole. However, there have been very few studies in India that have studied the relationship of the information systems tools and techniques for the data security and on-line usage with that of organizational performance. The present study aims to achieve this by examining the use of information systems tools, data security services and on-line databases by the banking and insurance companies which are at the forefront of the transformational dynamics.

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