Indexed in Ulrich’s Periodicals Directory andCabell’s Directory of Publishing Opportunities in ManagementCONTENTS31.Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries.........Teresa Hernandez, Florida International University, USA Robert W. McGee, School of Business and Economics, Fayetteville State University, USA 2.The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic29Paradigm and Institutional Economics...........................................................................Celal Bayari, Graduate School of Economics, Nagoya City University, Japan 493. Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore........................Jessica Smart, Department of Management, University of Otago, New Zealand Graham Elkin, Department of Management, University of Otago, New ZealandVirginia Cathro, Department of Management, University of Otago, New Zealand4. Key Success Factors for Promoting Wireless Interoperability for Microwave Access(WiMAX) Technology in Sri Lankan Small Industry, a Case Study Based on Colombo67Divisional Secretariat Area............................................................................................Sarath Wimala Surendra Bandara Dasanayaka, Department of Management of Technology, Faculty of Engineering, University of Moratuwa, Moratuwa, Sri LankaGovini Thanthirige Don Methsiri Kumara, Dialog Axiata PLC, Sri LankaGuru Datt Sardana, BIMTECH Institute of Management Technology, Greater Noida, India1015. Exploring an Integral Framework on Continuing Professional Education...................................ZenonArthurSiloran Udani, Department of Management & Marketing, Faculty of Business Administration,University of Macau, Macau SAR, ChinaDelia Siloran Udani, PAREF Woodrose School, the Philippines

AIM AND SCOPEEuro Asia Journal of Management (EAJM) is devoted to provide a forum for discussion over a wide range ofmanagement issues defined in the broad sense. However , particular emphases are placed on the advancement ofmanagement theory and practice in Asia, especially China, and the European continent. Published twice yearlyby the Macau Foundation , EAJM welcomes submissions in the following areas:Accounting and finance, information technology management, strategic management, cross-cultural andinternational management, organizational behavior and learning, human resources management, public sectormanagement, corporate governance, quality management, and tourism management.EAJM will include scholarly peer-reviewed papers in the form of empirical studies, qualitative inquiries,case studies, as well as critical literature reviews. From time to time, special sections are opened for debates,interviews, and commentaries.EDITORIAL BOARDNelson António, Instituto Superior das Ciências do Trabalho e da Empresa, PortugalVirgínia Trigo, Instituto Superior das Ciências do Trabalho e da Empresa, PortugalCarlos Noronha, University of Macau, MacauTiffany Lam, University of Macau, MacauEDITORIAL ADVISORY BOARDTetsuo Abo, Teikyo University, JapanDouglas Allen, University of Denver, USANick Bowen, European Business School London (Regent’s College), UKRobert Boyer, Centre D 'etudes Prospectives D'economie Mathematique, FranceEduardo Gomes Cardoso, Instituto para o Desenvolvimento da Gestão Empresarial, PortugalSu Mi Park Dahlgaard, Linköpings University, SwedenHarukiyo Hasegawa, University of Sheffield, UKHideo Inohara, Sophia University, JapanJorge Correia Jesuino, Instituto Superior das Ciências do Trabalho e da Empresa, PortugalEkkehard Kappler, University of Innsbruck, AustriaMartin Kenney, University of California at Davis, USAMário Murteira, Instituto Superior das Ciências do Trabalho e da Empresa, PortugalTerutomo Ozawa, Colorado State University, USASung Jo Park, Free University of Berlin, GermanyTanya Phonanan, ASEAN Human Resource Management Federation & Thompson Television ThailandWan Ahmad Shaffie, Malaysian Association of Human Resources Management & Menara Maybank MalaysiaHannes Streim, Bochum University, GermanyKay-Chuan Tan, National University of Singapore, SingaporeRobert Terpstra, Monash University, Sunway Campus, MalaysiaIngemar Torbiörn, University of Stockholm, SwedenTadashi Umezawa, Toyko Keizai University, JapanYoumin Xi, Xian Jiaotong University, ChinaOliver Yau, City University of Hong Kong, Hong KongShumingZhao, Nanjing University, ChinaNote: The views of articles may not be those of the Journal

Euro Asia Journal of Management Issue 41, Vol.22, No. 1/2, December 2012. pp.3-28 ETHICAL ATTITUDES TOWARD TAKING A BRIBE:A STUDY OF FOUR EUROPEAN COUNTRIES TERESA HERNANDEZ1and ROBERT W. MCGEE2 ABSTRACT This study examined attitudes on the ethics of bribe taking in four Europeancountries – France, Great Britain, Italy and Germany. Nineteen demographicvariables (gender, age, marital status, etc.) were also examined, and most meanscores were found to be significantly different. Although most people thought takinga bribe was unethical, there was some divergence of opinion.Keywords: bribery, ethics, England, France, Germany, Great Britain, Italy INTRODUCTION One might think that bribery is always unethical. Studies by the Organisation for EconomicCooperation and Development (OECD, 2011) discourage the practice and a number of otherstudies have viewed bribery in negative terms (Bonucci & Moulette, 2007; Cuervo-Cazurra,2006, 2008; Darrough, 2010; Moran, 1999; Pacini, Swingen & Rogers, 2002; Scharf, 2008).1Florida International University, USA2School of Business and Economics, Fayetteville State University, 12000 Murchison Road, Fayetteville, NC 28301,USA. Email: bob414@hotmail.com

Teresa Hernandez and Robert W. McGee However, a closer examination of the issue reveals that the question of whether briberyis ethical or unethical is not so clear-cut in some cases. For example, bribing a prison guard torelease a political prisoner who is being held by a corrupt or evil regime might constitute anethical act (Roy & Singer, 2006). From a utilitarian ethical perspective, bribery would beacceptable in cases where there are more winners than losers.This paper reviews the ethical literature on bribery and reports the findings of a surveyof opinion in four European countries – France, Great Britain, Italy and Germany.REVIEW OF THE LITERATUREMany articles and several books have been written about various aspects of bribery. This paperfocuses on the ethical literature on the topic. When trying to determine whether bribery is ethicalor unethical, a threshold question to ask is which set of ethical principles to apply. Ethicists haveseveral options in their toolkit, and not all ethical systems arrive at the same result in any givensituation.Baron, Pettit and Slote (1997) identify and discuss three of the main ethical systems.Graham (2004) discusses eight ethical systems. Most ethical systems, when analyzed and closelycompared, usually fall within the general categories of utilitarianism, rights theory, or virtueethics, broadly defined.Virtue ethics goes back to the time of Aristotle (2002), if not before. The main thrust ofvirtue ethics is that an act or policy is good if the result is human flourishing. Utilitarian ethicsholds that an act or policy is ethical if the result is the greatest good for the greatest number, or ifthe winners exceed the losers, or if the result is what economists call a positive-sum game(Brandt, 1992; Frey, 1984; Goodin, 1995; McGee, 2012a; Wong & Beckman, 1992). Thesevarious utilitarian views are not quite the same, but they are similar. If a policy or act results inhuman flourishing, it could met both the virtue ethics test and the utilitarian ethics test.Within utilitarian ethics is a branch that holds that something that increases efficiency isethical. Richard Posner (1983, 1998), the American jurist and co-founder of the Law &Economics movement, takes this position. This view has been criticized (McGee, 2012a), but itremains a mainstream utilitarian position.Rights theory holds that an act is unethical if someone’s rights are violated, regardlessof whether the winners exceed the losers (Baron, Pettit & Slote, 1997; Brandt, 1992; McGee,2012a, b & c). One of the main criticisms of utilitarian ethics is that rights are disregarded.Taking a rights approach overcomes this deficiency in utilitarian ethics.Kantian ethics, named after Immanuel Kant (1952, 1983), focuses on duty. If someonehas a duty and breaches that duty, any such act is considered to be unethical. The Kantian viewmay be applied to bribery in cases where the receiver of the bribe is an agent who has a duty tothe principal to do what is in the best interest of the principal. An agent who acts against the bestinterest of the principal is acting unethically. 4

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries Most of the literature on ethical aspects of bribery does not cite philosophers orparticular ethical theories, at least not directly. However, much of the literature has anunderlying premise that either utilitarian ethics or principles of duty should be applied. Virtueethics and rights theory also appear in some analyses, although most studies on bribery are doneby economists or lawyers, who tend to be utilitarians, at least most of the time.Logue (2005) believes that bribery is always unethical because it violates absolutemoral principles that cannot be compromised. He goes on to say that bribery is basically unfairand results in an inefficient allocation of resources, and frustrates the constructive role ofgovernment. Carson (1987) believes that accepting a bribe is always prima facie wrong becauseit violates duties, but makes some exceptions, such as in cases of conscripted soldiers, someprostitutes and others who are held as virtual slaves.Johnsen (2009, 2010) applies cost-benefit analysis to determine whether paying a briberesults in a positive-sum game. Shaw (1988) points out that benefits and costs may not be easyto determine.Some scholars assert that bribery may serve a useful function if a bribe acts to greasethe wheels of commerce, which makes commerce work more efficiently. Such would be the casewhere a corrupt government or inefficient bureaucracy can be circumvented by paying someoneto cut red tape or otherwise go around the rules. Some scholars take the position that, in general,bribery may be ethical in cases where it is a helping hand, but unethical when it is paid to agrabbing hand who offers nothing in return for the payment (Colombatto, 2003; Egger &Winner, 2005; Houston, 2007; Johnsen, 2009, 2010). Wong and Beckman (1992) developed apoint system to determine whether the helping hand or grabbing hand predominates.Several studies have examined bribery in connection with other forms of corruption,with a focus it has on foreign direct investment (FDI). Cuervo-Cazurra (2006, 2008) and Mauro(1995) found that bribery decreased FDI, whereas Egger and Winner (2005) found that briberyacts to stimulate FDI in cases where it acts as a helping hand. Weitzel and Berns (2006) foundthat host country corruption is negatively associated with premiums paid in cross-countrymergers. Sanyal and Samanta (2010) found that bribery has a negative effect on economicgrowth.THE PRESENT STUDYThe present study analyzes the opinions on bribe taking of sample populations in France, GreatBritain, Italy and Germany. Some demographic variables are also examined. 5

Teresa Hernandez and Robert W. McGee METHODOLOGYThe data used in this study were taken from the Human Beliefs and Values (HBV) surveys. Datafor these surveys were collected by social scientists all over the world and cover a wide range ofissues relating to perceptions of life, environment, work, family, politics and society, religionand morale and national identity. The present study analyzes the data reflecting attitudes onbribery. The question asked whether the respondent believed that accepting a bribe in the courseof one’s duties was justifiable. Responses were measured on a 10-point Likert scale where 1 isnever justifiable and 10 is always justifiable.Results were compiled overall and some demographic variables were also examined todetermine whether differences in belief were significant. The next section reports on thefindings.FINDINGSThe findings are reported in the next few pages.Overall ResultsTable 1 shows the overall results for the four countries. An analysis of the mean scores finds thatItalians were most opposed to bribery, followed by the British and Germans. The French wereleast opposed to bribery.The percentage of the samples that thought bribery was never justifiable ranged from63.3 percent in France to 86.2 percent in Italy. 6

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 1:Overall Results Never justifiable 1 2 3 4 5 6 7 8 9 Always justifiable 10 TotalFranceGreat BritainItalyGermanyn%n%n%n%63263.3%73471.8%86286.2%141069.6%12612.6%13112.8%656.5%26012.8%606.0%636.2%282.8%1386.8%242.4%373.6%151.5%683.4%797.9%272.6%141.4%874.3%161.6%90.9%40.4%291.4%191.9%90.9%90.9%140.7%141.4%50.5%20.2%80.4%101.0%30.3%00.0%70.3%181.8%40.4%10.1%60.3%998100.0%1022100.0%1000100.0%2027100.0%Mean Standard Deviation2.21.61.31.72.101.381.021.45Comparison of p-valuesTable 2 compares the p values. Most differences in mean score are significant at the 1 percentlevel. The mean score comparison between Great Britain and Germany is significant only at the10 percent level. In other words, the Italians are significantly more opposed to bribery than arethe people of any of the other three countries; the French are significantly less opposed tobribery than are the residents of any other country; the British are somewhat more opposed tobribery than are the Germans.TABLE 2:Comparison of p ValuesGreat BritainItalyGermanyFrance < 0.001 < 0.001 < 0.001 Great Britain < 0.001 0.0679Italy < 0.001 GenderA number of studies have examined gender in conjunction with ethical attitudes. Some studieshave found that women were more ethical than men (Brown & Choong, 2005; Franke et al., 7

Teresa Hernandez and Robert W. McGee 1997; Swaidan et al., 2006), while others found that men were more ethical than women (Barnett& Karson, 1987; Weeks et al., 1999). A third group of studies found that men and women wereequally ethical (Babakus et al., 2004; Harris, 1989; Su, 2006).Some tax evasion studies have also examined views by gender. Some of those studiesfound that women were more opposed to tax evasion than men (McGee, 2006 – internationalbusiness professors teaching in the USA; McGee, Alver & Alver, 2012 – Estonian accountingand business students; McGee, López & Yepes, 2009 – Colombian business students), whileother studies found that men were more opposed to tax evasion than women (McGee, 2006 –Romanian business students; McGee, Benk, Yildirim & Kayikçi, 2011 – Turkish taxpractitioners). A third group of studies found that male and female opinions on tax evasion weresimilar (McGee & Ardakani, 2009 – Iranian master’s degree accounting students; McGee &M’Zali, 2009 – French executive MBA students; Nasadyuk & McGee, 2007 – Ukrainian lawstudents).Some studies on the ethics of bribe taking found that women were more opposed totaking a bribe than were men (Hernandez & McGee, 2012a – a comparative study of the USA,Brazil, Germany and China; Hernandez & McGee, 2012b – a comparative study of Argentina,Brazil and Colombia). However, at least one study found that men were more opposed to bribetaking than women (Hernandez & McGee, 2012c – Egypt).Table 3a shows the overall ranking by gender. Females were significantly moreopposed to bribery than were the males.Table 3b ranks the sample by gender and country. Italian females were most opposed tobribery, followed by Italian males and British females. German males and females were equallyopposed to bribery. French males were least opposed. An ANOVA found that the differencesbetween groups were highly significant (p<0.001).TABLE 3a:Ranking by Gender(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankGenderMeanStd. Dev.n1Female1.61.4226012Male1.81.672446SIGNIFICANT DIFFERENCES IN MEAN SCORESp valueMale v. Female < 0.001 8

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 3b:RANKING BY COUNTRY & GENDER(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankMean1Italy – Female1.22Italy – Male1.43Great Britain – Female1.54Germany – Male1.74Germany – Female1.76Great Britain – Male1.87France – Female1.98France – Male2.5AgeThe relationship between age and ethical attitudes has also been examined in the literature.Although most studies have found that older people are more ethical and have more respect forthe law than do young people, there have been some exceptions (Babakus et al., 2004; McGee,2012d; Ruegger & King, 1992; Sims et al., 1996). Some tax evasion studies found that olderpeople were more averse to tax evasion than younger people (Gupta & McGee, 2010 – NewZealand; McGee & Benk, 2011 – Turkey; McGee, 2012d – several countries).Some studies on the ethics of bribe taking found that older people were more stronglyagainst the practice than were younger people (Hernandez & McGee, 2012a – a comparativestudy of the USA, Brazil, Germany and China; Hernandez & McGee, 2012b – a comparativestudy of Argentina, Brazil and Colombia; Hernandez & McGee, 2012c – Egypt).Table 4a ranks attitude toward bribery by age. The relationship is linear, with the oldestgroup being most opposed and the youngest group being least opposed. An ANOVA found thedifferences to be highly significant (p<0.001).TABLE 4a:Ranking by Age(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankAgeMeanStd. Dev.n150+1.61.332151230-491.81.581950315-292.01.84945 9

Teresa Hernandez and Robert W. McGee Table 4b ranks the mean scores by age group and country. Italians over 50 were mostopposed to bribery. The youngest French group was least opposed. The fact that all three Italiangroups were ranked in the top four indicates that country was a more important variable thanage. One interesting feature of the ranking sequence is that, for all four countries, the oldestgroup was most opposed to bribery and the youngest group was least opposed.TABLE 4b:Ranking by Country & Age(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankMean1Italy – 50+1.22Italy – 30-491.33Great Britain – 50+1.44Italy – 15-291.64Germany – 50+1.66Great Britain – 30-491.77Germany – 30-491.88Germany – 15-291.99France – 50+2.09Great Britain – 15-292.011France – 30-492.112France – 15-292.8EthnicityA comparative study on the ethics of bribe taking in the USA, Brazil, Germany and China foundthat whites were most strongly opposed to bribe taking, followed by East Asians, Hispanics,half-breed black/whites and blacks (Hernandez & McGee, 2012a). A comparative study ofArgentina, Brazil and Colombia found that Caucasians were most opposed, followed by half-breed black/whites, and blacks (Hernandez & McGee, 2012b).Table 5 ranks views on the basis of ethnicity. Caucasians were most opposed to bribery,whereas Central Asian Arabic speakers were least opposed. The vast majority of the sample wasCaucasian, although the sample sizes for the other groups listed were sufficiently large to makevalid comparisons. Data were also reported for other and mixed races, but their sample sizeswere not sufficiently large to rank. The ANOVA p value was highly significant (p<0.004). 10

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 5:Ranking by Ethnicity(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankEthnicityMeanStd. Dev.n1White / Caucasian White1.71.5828242Asian -South(Indian, Hindu, Pakistani, Bangladeshi)1.81.38653Black -Other / Black2.11.81494Asian -East(Chinese, Japanese)2.32.35165Asian -Central(Arabic)2.52.5441Importance of Religion in LifeA comparative study of the USA, Brazil, Germany and China found that those at both ends ofthe spectrum had the strongest opposition to bribe taking, while those in the middle groups hadless opposition (Hernandez & McGee, 2012a). A comparative study involving Argentina, Braziland Colombia found that those who did not hold religion very important in life weresignificantly more opposed to bribe taking than were those who held religion to be important.However, the difference was significant only at the 10 percent level (Hernandez & McGee,2012b). This variable was found not to be significant in a study of Egyptian opinion (Hernandez& McGee, 2012c).Table 6 ranks overall mean scores based on the importance of religion in therespondent’s life. The relationship is linear. The more important religion is, the stronger theopposition to bribery. The differences in mean score were highly significant (p < 0.001). 11

Teresa Hernandez and Robert W. McGee TABLE 6:Ranking by Importance Of Religion(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankImportanceMeanStd. Dev.n1Very important1.41.288992Rather Important1.71.5513383Not very important1.81.5413954Not at all important1.91.661338ReligionA comparative study of bribe taking in the USA, Brazil, Germany and China found thatProtestants and Spiritistas were most opposed to bribe taking, followed by Evangelicals,Muslims, Roman Catholics and Buddhists (Hernandez & McGee, 2012a). Religion was foundnot to be a significant variable in a comparative study of Argentina, Brazil and Colombia(Hernandez & McGee, 2012b) and a study of Egypt (Hernandez & McGee, 2012c).Table 7 ranks mean scores by religion. Those in the Other category were most stronglyopposed to bribery, while Christians were least opposed. Anglicans and Orthodox were equallyopposed, as were Roman Catholics and Evangelicals. The reason several Christian groups arelisted in addition to the generic Christians is because the surveys in some countries were morespecifics than were the surveys in other countries. An ANOVA found that the differencebetween groups was highly significant (p＜0.002). 12

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 7:Ranking by Religion(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankReligionMeanStd. Dev.n1Other1.20.71572Anglican1.41.20312Orthodox1.40.74174Protestant1.51.322775Roman Catholic1.71.5618285Evangelical1.71.506607Muslim2.11.891168Christian2.22.2922ReligiosityA comparative study of the USA, Brazil, Germany and China found that religiosity was not asignificant variable (Hernandez & McGee, 2012a). A comparative study of Argentina, Braziland Colombia found that the less religious a person is, the less resistance there was to bribetaking. However, the results were significant only at the 10 percent level (Hernandez & McGee,2012b). A study of opinion in Egypt found that religious people were significantly moreopposed to bribe taking than were those who were not religious (Hernandez & McGee, 2012c).Table 8 ranks mean scores on the basis of religious belief. Those who categorizedthemselves as religious were most opposed to bribery, whereas those who were not religiouswere least opposed. Atheists fell in the middle. The difference between groups was highlysignificant (p<0.001). 13

Teresa Hernandez and Robert W. McGee TABLE 8:Ranking by Religious Person(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankReligionMeanStd. Dev.n1A religious person1.61.5026242A convinced atheist1.81.666622Not a religious person1.91.571591Marital StatusMarital status was examined in a number of tax evasion studies. However, the extent ofopposition to tax evasion varied by country (McGee, 2012d). A comparative study of the USA,Brazil, Germany and China found that married and widowed people were the groups mostopposed to bribe taking, followed by the separated, divorced, living together as married andsingle/never married groups (Hernandez &: McGee, 2012a). A comparative study of Argentina,Brazil and Colombia found that widows were most opposed to bribe taking, followed bymarried, separated, living together as married and single/never married (Hernandez &: McGee,2012b). Marital status was not a significant variable in an Egyptian study (Hernandez &: McGee,2012c).Table 9 ranks mean scores on the basis of marital status. Widows were most opposed tobribery, whereas those who were living together as married were least opposed. The mean scoresfor married and separated were identical. An ANOVA found that the difference between groupswas highly significant (p<0.001). 14

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 9:Ranking by Marital Status(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankStatusMeanStd. Dev.n1Widowed1.51.413252Married1.61.3728182Separated1.61.611264Divorced1.81.552535Single/Never married1.91.7110496Living together as married2.11.95463Education LevelSeveral studies on the ethics of tax evasion have found that there is a relationship between thelevel of education and attitude toward tax evasion, but the results are mixed. In some studies,those who have the most education were most opposed to tax evasion, while in other cases thosewho were least education are most opposed to tax evasion. In a third group of studies, those inthe middle group were most opposed to tax evasion. In a fourth group of studies, there was nocorrelation between education level and extent of opposition to tax evasion (McGee, 2012d).A comparative study of the USA, Brazil, Germany and China found that the two groupsmost opposed to bribe taking were the most educated and the least educated (Hernandez & McGee, 2012a). A comparative study of Argentina, Brazil and Colombia found that differencesbetween categories were significant but that there was no discernible trend (Hernandez & McGee, 2012b). Education level was not a significant variable in an Egyptian study (Hernandez& McGee, 2012c).Table 10 ranks the mean scores by highest level of education attained. Those withuniversity degrees were most opposed to bribery, while those with incomplete secondary schooleducations were least opposed. However, if one looks at the rankings between the two polarpositions, it can be seen that the relationship is not strictly linear. An ANOVA found thedifference between groups to be highly significant (p < 0.001). 15

Teresa Hernandez and Robert W. McGee TABLE 10:Ranking by Highest Level Of Education(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankLevelMeanStd. Dev.n1University with degree/Higher education - upper- level tertiary certificate1.41.118542Complete secondary: university-preparatory type/Full secondary, maturity level certificate1.61.356893Completed (compulsory) elementary education1.71.446823Incomplete secondary: university-preparatory type/Secondary, intermediate general qualification1.71.471405Inadequately completed elementary education1.81.614105Complete secondary school: technical/vocational type/Secondary, intermediate vocational qualification1.81.6312685Some university without degree/Higher education - lower-level tertiary certificate1.81.693068Incomplete secondary school: technical/vocational type/(Compulsory) elementary education and basic vocational qualification2.01.97593Employment StatusA comparative study of the USA, Brazil, Germany and China found that retired people weremost opposed to bribe taking, followed by the self-employed, full-time and part-time workers,housewives, students and the unemployed (Hernandez & McGee, 2012a). A comparative studyof Argentina, Brazil and Colombia found that housewives were most opposed to bribe taking;students and the unemployed were least opposed (Hernandez & McGee, 2012b). A study ofEgyptian opinion found that retired and fully-employed people were most opposed to bribetaking, and that the unemployed and students were least opposed (Hernandez & McGee, 2012c).Table 11 ranks mean scores on the basis of employment status. Retired individualswere most opposed to bribery, while students and the unemployed were least opposed. Part-timers and housewives were equally opposed. An ANOVA found the difference between groupsto be highly significant (p&0.001). 16

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 11:Ranking by Employment Status(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankStatusMeanStd. Dev.n1Retired1.51.3111862Part Time1.61.385362Housewife1.61.283464Self employed1.71.624325Full time1.81.6618135Other1.81.671067Students2.01.722407Unemployed2.01.79345Institution of OccupationA comparative study of the USA, Brazil, Germany and China found that people who worked inthe government sector were most opposed to bribe taking, followed by the self-employed,people who worked at private non-profit organization and those who worked for private firms(Hernandez & McGee, 2012a). A comparative study of Argentina, Brazil and Colombia(Hernandez & McGee, 2012b) and a study of Egypt (Hernandez & McGee, 2012c) found thatinstitution of occupation was not a significant variable. Table 12 ranks the mean scores on the basis of institution of employment. Those whowork at public institutions were more opposed to bribery than were those who worked in theprivate sector. Those who worked in private business were least opposed to bribery. AnANOVA found the difference between groups to be highly significant (p<0.001). 17

Teresa Hernandez and Robert W. McGee TABLE 12:Ranking Institution of Occupation(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankInstitutionMeanStd. Dev.n1Public institution1.50.3210412Private non-profit organization1.71.544583Private business1.81.642706Social ClassSocial class was found not to be a significant variable in a study of Egyptian views on bribetaking (Hernandez & McGee, 2012c). However, a comparative study of bribe taking in the USA,Brazil, Germany and China found that the upper middle class was most opposed to bribe taking,followed by the lower middle class, working class, lower class and upper class (Hernandez & McGee, 2012a). A comparative study of Argentina, Brazil and Colombia found the results to becurvilinear, where those in the middle class had mean scores that were between those of theworking and lower class (Hernandez & McGee, 2012b).Table 13 ranks mean scores by social class. Those in the lower class were most stronglyopposed to bribery, whereas those in the upper class were least opposed. However, the ANOVAp value shown in Table 13b leads one to conclude that the difference between groups is notsignificant. In other words, the various classes had basically the same opinion regarding theethics of bribery. Class was not a significant variable. (p=0.242).TABLE 13:Ranking by Social Class(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankClassMeanStd. Dev.n1Lower class1.41.051072Upper middle class1.51.237203Lower middle class1.61.2610403Working class1.61.479275Upper class1.81.4822 18

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries Income LevelIncome level was found not to be a significant variable in a comparative study of the USA,Brazil, Germany and China (Hernandez & McGee, 2012a) and a comparative study ofArgentina, Brazil and Colombia (Hernandez & McGee, 2012b). However, a study of opinion inEgypt found that those in the lower income category were more opposed to bribe taking thanwere those in the middle and upper income groups. However, the results were significant only atthe 10 percent level (Hernandez & McGee, 2012c).Table 14 ranks mean scores based on income. Those with high income were mostopposed to bribery, while those with low income were least opposed. The relationship waslinear. The difference between groups was significant (p=0.026).TABLE 14:Ranking by Scale Of Income(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankScaleMeanStd. Dev.n1High income1.61.295822Middle income1.71.5821803Low income1.81.681396Size of TownA comparative study of the USA, Brazil, Germany and China found that those who lived in thethree smallest size towns were most strongly opposed to bribe taking, although the relationshipbetween size of town and extent of opposition to bribe taking was not linear (Hernandez & McGee, 2012a). A similar result was found in a comparative study of Argentina, Brazil andColombia (Hernandez & McGee, 2012b). A study of Egypt found that those who lived in largecities were more opposed to bribe taking than were those who lived in small towns (Hernandez& McGee, 2012c).Table 15 ranks mean scores based on the size of town in which the respondent lives.There seems to be no clear pattern. The second smallest and second largest size towns hadidentical mean scores (1.6), as did the smallest and largest towns (1.9). An ANOVA found thedifference between groups to be significant (p<0.001). 19

Teresa Hernandez and Robert W. McGee TABLE 15:Ranking by Size Of Town(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankSizeMeanStd. Dev.n15,000-10,0001.51.3940022,000-5,0001.61.475342100,000-500,0001.61.40870410,000-20,0001.71.52507420,000-50,0001.71.44752450,000-100,0001.71.524897 < 2,000 1.91.695517 > 500,000 1.91.77943HappinessA comparative study of the USA, Brazil, Germany and China found that those who were veryhappy and happy showed the most opposition to bribe taking, while those who were not at allhappy showed the least opposition (Hernandez & McGee, 2012a). Happiness was not asignificant variable in a comparative study of Argentina, Brazil and Colombia (Hernandez & McGee, 2012b) and in a study of Egypt (Hernandez & McGee, 2012c).Table 16 ranks mean scores on the basis of happiness. There was not much differenceamong the mean scores, but the ranking seems to be mostly linear. Those who were either veryhappy or quite happy were most opposed to bribery, while those in the two least happy groupswere least opposed to bribery. An ANOVA found the difference between groups to besignificant at the 10 percent level (p<0.054). 20

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 16:Ranking by Happiness(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankHappinessMeanStd. Dev.n1Very happy1.71.6014571Quite happy1.71.4429553Not at all happy1.81.80774Not very happy1.91.80486HealthHealth was not a significant variable in a comparative study of the USA, Brazil, Germany andChina (Hernandez & McGee, 2012a) or in a study of Egypt (Hernandez & McGee, 2012c).However, a comparative study of Argentina, Brazil and Colombia found that healthier peoplewere less averse to bribe taking than were unhealthy people (Hernandez & McGee, 2012b).Table 17 ranks the mean scores by health category. Those in poor health were mostopposed to bribery, while those in very good health were least opposed. Those in good or fairhealth were in between, and had identical mean scores. The difference between groups wassignificant at the 5 percent level (p = 0.022).TABLE 17:Ranking by Health(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankHealthMeanStd. Dev.n1Poor1.51.392632Good1.71.5423082Fair1.71.4311014Very good1.81.641360 21

Teresa Hernandez and Robert W. McGee Confidence in the PoliceA comparative study of the USA, Brazil, Germany and China found that the two groups that hadthe most confidence in the police also had the strongest opposition to bribe taking (Hernandez & McGee, 2012a). A comparative study of Argentina, Brazil and Colombia found that those whoplaced no confidence in the police were most opposed to bribe taking, while those who placedquite a bit of confidence or a great deal of confidence in the police were least opposed to bribetaking (Hernandez & McGee, 2012b).Table 18 ranks mean scores on the basis of the degree of confidence in the police. Therelationship is linear. Those who place a great deal of confidence in the police are most opposedto bribery, whereas those who place no confidence at all in the police are least opposed. AnANOVA found the difference between groups to be highly significant (p<0.001).TABLE 18:Ranking by Confidence in the Police(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankConfidenceMeanStd. Dev.n1A great deal1.61.327492Quite a lot1.71.5029313Not very much1.81.7010054None at all2.01.93298Confidence in the Justice SystemA comparative study of the USA, Brazil, Germany and China found that those with the mostconfidence in the justice system were more opposed to bribe taking, while those who had noconfidence in the justice system were least opposed (Hernandez & McGee, 2012a). Acomparative study of Argentina, Brazil and Colombia found that opposition to bribe taking washigher for the groups who placed little or no confidence in the justice system, and lower forthose who placed confidence in the system (Hernandez & McGee, 2012b).Table 19 ranks the mean scores based on the extent of confidence in the justice system.The relationship is linear. Those who place the most confidence in the justice system were mostopposed to bribery, whereas those with no confidence at all in the justice system were leastopposed. An ANOVA found the difference between groups to be highly significant (p<0.001). 22

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries TABLE 19:Ranking by Confidence in the Justice System(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankConfidenceMeanStd. Dev.n1A great deal1.61.444422Quite a lot1.71.4521782Not very much1.71.5516944None at all2.01.86592Confidence in the GovernmentConfidence in the government was found not to be a significant variable in a comparative studyof the USA, Brazil, Germany and China (Hernandez & McGee, 2012a) and in a comparativestudy of Argentina, Brazil and Colombia (Hernandez & McGee, 2012b).Table 20 ranks mean scores on the basis of extent of confidence in the government. Therelationship is basically linear, with those who place a lot or a great deal of confidence in thegovernment being more opposed to bribery than those who place little or no confidence in thegovernment. An ANOVA found the difference between groups to be significant (p=0.018).TABLE 20:Ranking by Confidence in the Government(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankConfidenceMeanStd. Dev.n1Quite a lot1.61.3612192A great deal1.71.621242Not very much1.71.5423914None at all1.81.711187 23

Teresa Hernandez and Robert W. McGee Left-right political spectrumPosition on the left-right political spectrum was found not to be a significant variable in acomparative study of the USA, Brazil, Germany and China (Hernandez & McGee, 2012a) and ina study of Egypt (Hernandez & McGee, 2012c). However, a comparative study of Argentina,Brazil and Colombia found that centrists were most opposed to bribe taking, while leftists wereleast opposed (Hernandez & McGee, 2012b).Table 21 ranks the mean scores based on position in the left-right political spectrum.Those on the left and those in the center had identical mean scores. Those on the right had amean score that was only slightly higher than the mean scores for the other two groups. AnANOVA found the difference between groups not to be significant (p=0.439).TABLE 21:Ranking by Left-Right Political Spectrum(Accepting a bribe is: 1 = never justifiable; 10 = always justifiable)RankSpectrumMeanStd. Dev.n1Left1.71.539821Center1.71.5329103Right1.81.74442Summary of FindingsTable 22 summarizes the findings.TABLE 22:Summary of FindingsOverall – Although the people in all four countries were opposed to bribery, those in somecountries were more opposed than others. Italians were most opposed to bribery, followed by theBritish and Germans. The French were least opposed to bribery.Gender – Overall, females were significantly more opposed to bribery than were males.Age – The relationship was linear, with the oldest group being most opposed and the youngestgroup being least opposed. 24

Ethical Attitudes toward Taking a Bribe: A Study of Four European Countries Ethnicity – Caucasians were most opposed to bribery, followed by South Asians (Indian, Hindu, Pakistani, Bangladeshi), blacks, East Asians (Chinese, Japanese) and Central Asians (Arabic).Importance of religion - The relationship is linear. The more important religion is, the stronger the opposition to bribery.Religion - Those in the Other category were most strongly opposed to bribery, while Christians were least opposed. Anglicans and Orthodox were equally opposed, in second place, while Roman Catholics and Evangelicals tied for fifth place, followed by Muslims. The reason several Christian groups are listed in addition to the generic Christians is because the surveys in some countries were more specifics than were the surveys in other countries.Religiosity - Those who categorized themselves as religious were most opposed to bribery, whereas those who were not religious were least opposed. Atheists fell in the middle.Marital Status – Widows were most strongly opposed to tax evasion. Married and separated tied for second place, followed by divorced, single/never married and living together as married.Education Level - Those with university degrees were most opposed to bribery, while those with incomplete secondary school educations were least opposed. However, if one looks at the rankings between the two polar positions, it can be seen that the relationship is not strictly linear.Employment Status – Retired people were most opposed to bribe taking, followed by part-time employees and housewives, which tied for second place. Self-employed people ranked fourth. Full-time and other tied for fifth place. Students and the unemployed tied for seventh place, and were least opposed to bribe taking.Institution of Occupation - Those who work at public institutions were more opposed to bribery than were those who worked in the private sector. Those who worked in private business were least opposed to bribery.Social Class - the various classes had basically the same opinion regarding the ethics of bribery. Class was not a significant variable.Income Level - Those with high income were most opposed to bribery, while those with low income were least opposed. The relationship was linear.Size of Town - There seemed to be no clear pattern. The second smallest and second largest size towns had identical mean scores (1.6), as did the smallest and largest towns (1.9).Happiness - There was not much difference among the mean scores, but the ranking seems to be 25

Teresa Hernandez and Robert W. McGee mostly linear. Those who were either very happy or quite happy were most opposed to bribery, while those in the two least happy groups were least opposed to bribery. Differences were significant at the 10 percent level.Health – Those in poor health were most opposed to bribery, while those in very good health were least opposed. Those in good or fair health were in between, and had identical mean scores.Confidence in the Police - The relationship is linear. Those who place a great deal of confidence in the police are most opposed to bribery, whereas those who place no confidence at all in the police are least opposed.Confidence in the Justice System - The relationship is linear. Those who place the most confidence in the justice system were most opposed to bribery, whereas those with no confidence at all in the justice system were least opposed.Confidence in the Government - The relationship is basically linear, with those who place a lot or a great deal of confidence in the government being more opposed to bribery than those who place little or no confidence in the government.Left-right Political Spectrum – This variable was not significant.CONCLUDING COMMENTSAlthough all four countries were opposed to bribe taking, some countries were more opposedthan others. Most of the demographic variables examined showed significant differences inmean scores.A number of additional studies could be made on this topic. Attitudes in additionalcountries could be made and a closer examination of some of the demographic variables couldyield interesting results. More needs to be known about why differences in some demographicvariables are significant. Cultural, historical, sociological, psychological and religious factors allplay a role. These avenues could benefit from further examination.REFERENCESAristotle (2002). Nichomachean Ethics. Oxford: Oxford University Press.Babakus, E., Cornwell, T.B., Mitchell, V. & Schlegelmilch, B. (2004). Reactions to unethical consumer behavior acrosssix countries. The Journal of Consumer Marketing, 21, (4/5), 254-263. 26

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Euro Asia Journal of Management Issue 41, Vol. 22, No.1/2, December 2012, pp. 29-47 THE PATTERNS OF JAPANESE FDI IN AUSTRALIA AFTER THE LEHMAN SHOCK: PERSPECTIVES OF THE ECLECTIC PARADIGM AND INSTITUTIONAL ECONOMICS CELAL BAYARI1 ABSTRACT This paper discusses the post-‘Lehman Brothers shock’ period of the Japaneseforeign direct investment in Australia, and provides an analysis of the types ofinvestment. The analysis begins with the theoretical frameworks that definemultinational enterprise (MNE) activity, and foreign direct investment. The way inwhich ‘institutional economics’ theory is utilised within the ‘eclectic paradigm’ isalso analysed herein. The ‘Lehman Brothers shock’, the ensuing market decline,and the subsequent investor indecisiveness have had effects on foreign directinvestment in Asia, the EU, and North America (Devos & Giovanoli, 2011). Whilethis situation continued, one particular economic bilateralism, that of Japan andAustralia, has remained largely unaffected. The bilateral trade volumes andstructure between the two remain unaltered in the aftermath of the ‘shock’. Thispaper details the Japanese foreign direct investment patterns in Australia that werepresent before the ‘Lehman Brothers shock’, and continued afterwards (i.e. several-stage type of acquisitions). From the time of the ‘shock’ until April 2010, therewere numerous Japanese acquisitions in Australia (Wallace, 2010). This processhas been continuing, as of December 2011, with Japanese MNE Inpex’s A$30billion foreign direct investment in LNG extraction and export project (AAP, 2011;AFP, 2011). Nippon Paper Group’s 2009 foreign direct investment in Australiawas the ninth biggest Japanese global acquisition in that year (JETRO, 2010), andMitsubishi Corporation’s September 2008 foreign direct investment was the tenthlargest (JETRO, 2009). The post-crisis business environment has been beset by1Graduate School of Economics, Nagoya City University, Japan. Email: gakumonkengyu@wind.ocn.ne.jp

Celal Bayari uncertainties, and the global mergers and acquisitions had recovered to merely onethird of the 2007 levels by the end of 2010 (UNCTAD, 2011). This has been theglobal trend, the context of the discussion herein. As this paper discusses, theglobal trend, which UNCTAD describes, does not readily apply to the Japaneseforeign direct investment in Australia.Keywords: Australia, Lehman Brothers Shock, institutional economics, Japaneseforeign direct investmentMNE FRAMEWORK AND INSTITUTIONAL ECONOMICSSeveral frameworks of analysis explain the trade and foreign direct investment activities ofMNEs. As international trade and international production simultaneously form the MNEdomain, they are explainable within the same framework of analysis, which is what John H.Dunning’s ‘eclectic paradigm’ of ‘OLI (‘ownership’, ‘locational’ and ‘internalisation’)advantages’ does (Ietto-Gillies, 1992; Tolentino, 2001). The ‘eclectic paradigm’ offers acomprehensive framework for MNE-specific, and host nation-specific trade and foreign directinvestment activities (Maitland & Nicholas, 2003; Markusen, 2001). Japanese foreign directinvestment in Australia has been discussed within the ‘eclectic’ paradigm framework (Bayari,2010; 2004; 2001; Nicholas et al., 1996; Purcell et al., 1999). The theoretical construction ofinternational business that describe the connection between the location of foreign directinvestment and the activities of MNEs have been modified in this decade to account for theincrease in the mobility of firm-specific assets (Dunning, 2009). The main qualification thatdifferentiates an MNE from companies which operate solely in home market (i.e. the market ofits own nation) remains the fact an MNE operates in foreign markets but relies on its ‘homeadvantages’ (Dunning & Lundan, 2008). The ‘eclectic paradigm’ has evolved over time, whichenables it to account for changes in the international foreign direct investment environment andthe investment rationale (Dunning et al., 2007a). The contemporary structure of foreign directinvestment has been displaying a ‘regionalisation’ pattern (Dunning, 2005). This is affected bythe respective gross domestic products and bilateral trade volumes of the two countries that actas the host and the investor, respectively (Dunning et al., 2007b). This means an MNE from aparticular region mainly focuses in that region for its trade and foreign direct investmentactivities. This applies to most MNEs. Yet, two factors affect an MNE’s decision to be in aparticular host market that is located in its own region, the size of economy of the host nation,and the size of the economy of the nation from which the MNE originates. Further, existingbilateralism between an MNE and a host market also positively affects future activities of theMNE in that particular market. An example of this broad framework is the bilateral economic(trade & foreign direct investment) relations between Japan and Australia. 30

The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics Douglas North and Institutional economics: Dunning (2006) extends his ‘eclectic’ paradigmto include RCMI determinants by incorporating them from ‘institutional economics’ inquiryestablished by Douglas North (1990a; 1990b; 1994; 2005). The study of institutions isfrequently collected under ‘institutionalism’ (also referred as neo-institutionalism or newinstitutionalism), which holds that institutions, in various ways, dominate all socialorganisations, and their interaction, and that institutions are themselves social products(DiMaggio & Powell, 1991; Williamson, 2000). Institutional economics, broadly, focuses oneconomic activity and economic growth under conditions defined by historical institutionaldevelopments (Acemoglu et al., 2001; Rodrik et al., 2002; Dunning, 2006; Dunning & Zhang,2008). The strand which is based on the framework offered by North (1990a; 1990b; 1994;2005) proposed that differences between nations in terms of economic growth and stable wealthgrowth can, largely, be explained by how each nation sets up and implements its own rules toguarantee the success of a defined set of advantageous market behaviour. Implicit in thisargument is the transferable nature of institutions across culturally related nations, i.e. from theUK into the US, Canada, Australia, New Zealand or from Spain into the Americas. Somenations have developed faster than the rest, and far more homogenously and steadily. Theirinstitutions are the main cause of this, as per the general outlines of this paradigm. Australia’seconomic success is argued to be related to its transfer of the UK’s institutions, as was the casewith Canada, the US and New Zealand (Acemoglu et al., 2001; Rodrik et al., 2002). One issueinexplicitly inherent with this framework is related to the neo-liberal adoption of neo-classical economics’ assumptions. The global economic activity of the last three decades presents severalfacts versus certain theoretical falsities (Quiggin 2012). Economic growth does not translateinto an equitable distribution of benefits (contrary to ‘the trickle down economics’ framework),the market is not the fairest distributive mechanism (contrary to ‘the efficient marketshypothesis’), the post-1985 global economic history is not one of macroeconomic stability(contrary to ‘the great moderation’ thesis), and finally, ‘privatization’ of government functionsand services has not been a success (Quiggin, 2012). These falsities, as outlined by Quiggin, areessential tenets of Anglo-Saxon capitalist model. This model has a leading role in theconstruction of ‘institutional’ economics, which does lead to a potential paradox over thequestion of economic growth and where the growth benefits go. In the case of Australianeconomy, the application of neo-liberal deregulation to the mining and energy sectors of theeconomy did ensure their spectacular growth, which highlights the verifiability of the North’sinstitutional economics. These sectors have developed because of legislations, regulations, andgovernance elements in Australia’s deregulatory period from the 1980s onwards. Mining andenergy sectors in Australia have grown due to the existence of neo-liberal deregulatory‘institutions’ that made these sectors highly attractive to massive amounts of foreign directinvestment. Yet, the net benefit to Australia, in terms of revenue, from these sectors, has alwaysbeen insufficient (Edwards, 2011), and the sectors’ growth had little positive effect on thewellbeing of the majority of Australians (Richardson, 2009).North (1990a; 1990b) states that written rules, and monitoring and enforcement systems[formal institutions] interact with the operations of long-established informal rules andconformist conduct [informal institutions]. The two types of institutions symmetrically co-exist. 31

Celal Bayari Contemporary organisations, such as MNEs, are ‘responses’ to the ‘institutional structures’.Dunning’s (2006) emphasis on North’s framework especially concerns North’s discussion oninstitutions that provide ‘incentive structures and enforcement mechanisms’ and ‘reduction andcounteracting of uncertainty’ in international trade and foreign direct investment. In broadterms, ‘institutions’ refer to the historical and social construction of the existing foundations inmodern market economies. These are written legal codes, unwritten conventions and rules thatdefine, underwrite, sustain and protect people, property rights, contracts, organisations, andprovide a range of liberties to MNEs, and the states (Acemoglu et al. 2001; Dunning 2006;Dunning & Zhang 2008; North 2005; 1994; Rodrik et al., 2002).RCMI determinants play a role in defining the competitiveness of national economiesand the levels of internal and external foreign direct investment, and hence their economicgrowth (Dunning & Zhang, 2008; Rodrik et al., 2002). Economic activity, such as foreign directinvestment, drives growth in sectors of a host economy, and is determined by resources,capabilities and markets (RCM), which form the ‘physical environment’ (firms and otherorganisations), and ‘institutions’ (I), which provide the incentive structures to make up the‘human environment’, and set the rules and provide motivation for MNEs (Dunning & Zhang2008). Incentive structures refer to mechanisms that are historic and/or enhanced by legalsystems, and which encourage/discourage certain types of behaviour and punish others. Theseare not ‘neo-classical’ type of ‘single dimensional’ structures that define utility and profitseeking behaviour but instead are ‘enforcement mechanisms’ for desirable behaviour (Dunning& Zhang 2008). These definitions, of course, follow the definitions by Douglas North (1990a;1990b; 1994; 2005). Dunning and Zhang (2008) are specific about what RCM are. ‘Resources’include natural resources, land, labour, and technology. ‘Capabilities’ include skills, expertise,social organisation and governance, while ‘markets’ include not only domestic and foreignmarkets but the ability to exploit and co-ordinate them.Dunning includes the ‘institutions’ determinant in his ‘eclectic paradigm’ of‘ownership-locational-internalisation’ advantages, as a form of ‘institutionally’ relatedcompetitive advantage, which motivates and influences the extent to which, and the ways inwhich, RCM are created, deployed or accessed (Dunning, 2006). In short, RCMI provide theconditions for foreign direct investment and the host interaction, according to Dunning. It ispossible to observe the foreign direct investment levels in Australia in a RCMI frame ofanalysis. ‘Market efficiency’ and ‘incentive structures’ [that are specifically for foreignownership] are part of the ‘institutions’, which are conducive to inward foreign directinvestment, according to Dunning. From the perspective of the ‘eclectic paradigm’, if thelocational advantages of the host include the competitiveness of both ‘RCM’ and ‘I’simultaneously, then the optimum conditions of inward foreign direct investment are present(Dunning & Zhang, 2008). In this instance, the location is Australia. Since the early 1980s, therelationship between the MNEs and national governments around the globe has becomeincreasingly co-operative (Dunning, 1998). MNE activity has become progressively moredependent on institutional underpinnings, reinforcing the relevance of Douglas North’s premisethat the increasingly complex forms of uncertainty in conjunction with increasing MNE activitypoint to the significance of institutions and institutional responses (Cantwell et al., 2010; 32

The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics Dunning & Lundan, 2010). Australian economy experienced a spectacular resources sector(coal, gas, and minerals) growth via MNE foreign direct investment from the early 1980sonwards. Trade and tariff deregulation allowed MNEs to benefit from the deregulation to enablefree movement of capital, and gave them easier access to the Australian market (Stilwell, 2008).The domestic governance determines the social distribution of the benefits of economic growthjust as it does determine the ‘institutional’ attitudes towards foreign direct investment. Neitherelement is outside the domain or the power of governments. Cross-cultural and ideologicaldifferences influence the decisions over the transfer of ownership advantages overseas(Dunning, 2006). Nations with common economic, social, and political experiences mayrespond to the transfer of a particular advantage in similar ways, especially if they already sharea common cultural heritage, as in the Anglo-Saxon world (Canada, New Zealand, Australia, theUK, the US). Australia, New Zealand, Canada, and the US are termed ‘neo-Europes’ becausethey all modeled their institutions on the UK, during the colonial period of their economichistory (Acemoglu et al., 2001). Rodrik et al. (2002) too place Australia alongside Canada, NewZealand as ‘neo-European countries’ that developed from colonial origins that proceeded withthe replication of the UK’s ‘institutions’, and present a model of economic growth that is basedon the quality of institutions, rather than the affects of geography, climate, natural resources, orintegration with international trade links. Thus, Australia is very close to the UK and the US interms of cultural history, and economic governance model (Cahill, 2002; Dore, 2002; Harzing &Noorderhaven, 2006). This is reflected in the fact that the respective labour relationsenvironments of the three interact with the Japanese foreign direct investment in the samemanner (Bayari, 2011; 2010). In terms of ‘RCMI’ determinants, their institutions have more incommon with each other than they have with the nations that are outside the Anglo-Saxonworld.THE STATE OF FOREIGN DIRECT INVESTMENT IN THEAUSTRALIAN MARKETForeign direct investment in Australia consists of ‘portfolio investment’, ‘direct investment’ and‘financial derivatives’, and ‘other investment liabilities’, as per the official statistics (ABS5352.0, 2011). These statistics do not identify how much of foreign direct investment is actuallyreinvested earnings, or ‘greenfield’, or for the retooling of going concerns. The official statisticsdo not divide the figures into industrial sectors, such as the types of manufacturing (food,automotive, plastics etc.). One particular ABS trial publication, released in 2001, was entitledOwnership Characteristics of Business Undertaking Capital Expenditure in Australia, 1998-1999 (ABS, 2001). This publication highlighted significant differences among the Australianstates and territories in terms of the type of foreign direct investment (mining, manufacturingetc.). Foreign direct investment levels in Australia stood at approximately A$2 trillion as of 31December 2010. Australian investment overseas stood at A$1.2 trillion at the same period. It is 33

Celal Bayari possible to comprehend the size of these foreign direct investment levels if one considers thatAustralia’s GDP, at 30 June 2010, was approximately A$1.3 trillion (ABS 5204.0, 2011). Thebalance of ‘total assets’ and ‘total liabilities’ (what the economists call ‘the net worth ofAustralia’) was A$7,683 billion at June 30 2010 (ABS 5204.0, 2011).Table 1 shows that the top six investors in Australia are the US, the UK, Japan, HongKong (SAR), Germany, and Switzerland. Their levels of total foreign investment (all of theirinvestment, direct or otherwise such as portfolio investment), and the foreign direct investmentcomponents (percentage which ‘direct’ type of investment has within total foreign investment)are as shown. Foreign direct investment represented 24 per cent of the total foreign investmentin Australia while ‘portfolio investment’ made up 58 per cent, in the period under consideration(ABS 5352.0, 2011). Foreign direct investment component of the respective individualinvestors vary. Hong Kong (SAR), the US, and the UK have rather small components of foreigndirect investment in their total foreign investment levels in Australia. Chart 1 shows theJapanese global foreign direct investment for 1970-2009. There is a downturn in 2009. Thereare, by contrast, steady annual increases between 2001 and 2008. However, as Chart 2 shows,the Japanese foreign direct investment in Australia has actually increased in the same period.This appears to be reflection of a broader trend. Australia will be the eight major destination ofglobal foreign direct investment in 2011-2013, and Japanese foreign direct investment in 2011-2012 will continue to increase (UNCTAD, 2011: 18, 19).TABLE 1:Total Foreign Investment Levels (A$ million) at December 2010OriginTotal Foreign InvestmentForeign Direct Investment ComponentUSA549.88120.08UK472.6452.52Japan117.6349.41Hong Kong (SAR)40.776.69Germany40.7516.22Switzerland40.7320.73TOTAL1,967.80473.67Source: Calculated from ABS 5352.0 (2011) 34

The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics JAPANESE FOREIGN DIRECT INVESTMENT IN AUSTRALIAFrom the middle of the 1940s onwards, the IMF, World Bank and GATT emerged as the newmechanisms of global system of finance and trade (Bossche, 2005). The new global finance andtrade system has underwritten the resumption of trade and foreign direct investment in AsiaPacific, and elsewhere. The present investment and trade relations between Australia and Japandate back to the period that began with the 1957 Commerce Agreement. The 1976 Basic Treatyof Friendship and Cooperation, a later bilateral agreement, is the only one of its kind thatAustralia has concluded with any country (Woodard et al., 2007). Japanese foreign directinvestment in Australia has been historically at far higher levels than Australian foreign directinvestment in Japan (Bayari, 2008; 2004; 2001; Beeson, 1999; Drysdale, 2010; Edgington, 1990;Sheridan, 1992). Australian foreign direct investment in Japan has been low historically(Australia at Aichi World Expo, 2005, Senate Foreign Affairs et al., 2000). The post-warbilateral agreements are the ‘institutional’ context of trade and foreign direct investmentrelations between Australia and Japan. These agreements are the imperceptible background tothe ‘locational advantages’ of Australia. From RCMI perspective, Australia possesses resources,market, and institutions that interact with resources in the form of foreign direct investment andcapabilities in form of transfer of technology and related elements. In the immediate post-warperiod, the structures that were set in place, via these bilateral agreements, between Japan andAustralia, have provided a set of trade and foreign direct investment conditions.Chart 1 describes the changes in the total Japanese foreign direct investment per annum.A negative figure (decrease) represents the percentage of decrease from the previous year (basefigure). Chart 2 shows that the Japanese foreign direct investment in Australia, in dollar terms,has increased in 2004-2010 continuously. As shown on Chart 3, Japanese foreign directinvestment in Australia has increased its share of the total in 2004-2010. While since 1991, thelong-term trend has been one of decline; it is remarkable that in the ‘post-Lehman Brothersshock’ period, the share of the Japanese investors has increased, which indicates that the ‘shock’did not negatively affect the bilateral relations. Japanese overseas production is a wide field.The past research on Japanese overseas production has included the six continents in the lastfour decades (Abo, 2011; 2007; 2004). In Australia, Bayari (2011; 2010), Beeson (1999), andEdgington (1990) have focused on the nature and the extent of Japanese foreign directinvestment. Japanese manufacturing multinationals, which currently manufacture in Australia,include Toyota Denso, Aisin, Daikin, Shinagawa, Nissan Casting, and YKK. In the 2008-2011period, numerous high value Japanese acquisitions of Australian firms were completed in abroad range of industries, some if which involve production in Australia. This trend is acontinuation of the earlier period. In the 2000s, foreign direct investment by MarubeniCorporation and Tohoku Power Company made an impact with the Milmerran ‘clean coal’power station project, which was the first privately owned power station in Australia (Wilson,2003). In 2001, Japanese foreign direct investment in Australia’s energy and resources market 35

Celal Bayari was worth half a billion dollars (AJEI, 2003). In the same year, Australia had new foreign directinvestment from Fujitsu and NEC in telecommunications and the IT sectors of the Australianmarket (AJEI, 2003). Toyota Australia and [now defunct] Mitsubishi Motors Australia Limitedcarried out major new foreign direct investment in the early 2000s (Bayari, 2008).JETRO’s annual White Paper provides some information on the major destinations ofJapanese foreign direct investment. In 2002, the main acquisition type of Japanese foreign directinvestment in Australia consisted of Paloma Industries’ purchase of a manufacturing unit ofSouthcorp Ltd for US$278 million and Mitsui & Co Ltd’s purchase of Moura coal mine forUS$166 million (JETRO, 2003). Mitsui is a major player in Australia’s coal exports. It hasinterests in BMA Coal, the world’s largest coal exporter (Bloomberg, 2003), which displays theextent of its involvement in the global coal trade. In the last decade, the demand from China hasset off a resources boom in Australia that brings to mind the time of the demand in the post-wargrowth period. A new A$11 billion BHP Billiton iron ore deal had four Chinese steel mills asthe majority foreign partners (40 per cent), with Japan’s CI Minerals Australia and Mitsui IronOre keeping a 4.8 per cent and a 4.2 per cent share respectively (McDonald, 2004). Thishighlights Japan’s continual interest in strategic foreign direct investments. In 2004, a Japaneseinvestment fund in an Australian-listed property funds for A$120 million was created (Cum-mins, 2004). In 2007, there was A$206 million Japanese foreign direct investment in theSydney property market, which had been of little interest to Japanese investors since the end ofJapan’s bubble economy in 1992 (Cummins, 2007). In addition, again in 2007, Japanese tradinghouse Sojitz acquired 30 per cent of Grange Resources Ltd (AAP, 2007b). In 2008, Dai-ichiLife Insurance, Japan’s second-largest life-insurer, entered Australian finance sector by in-vesting A$376 in Sydney-based Tower Australia Group Limited, the life insurance, andsuperannuation company (John, 2008). In 2011, Dai-ichi acquired the rest of the company forA$1.6 billion (White, 2010). This made Dai-ichi the fourth largest insurance player in theAustralian market, after National Australia Bank, Commonwealth Bank and ANZ BankingGroup, which are three of the four biggest Australian banks. 36

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The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics From the late 1980s onward, a wave of new Japanese foreign direct investment inAustralia’s food and beverage manufacturing industry started (AJEI, 1989; 1994; Beeson, 1997).In 2007, there were several major Japanese acquisitions in this industry. Japan’s Kirin Holdingsacquired Australia’s dairy and fruit juice producer National Foods from San Miguel Corp forA$2.8 billion (AAP, 2007a; ABC Rural, 2007). San Miguel Corp of the Philippines is the parentcompany of San Miguel Brewery Inc. of which Kirin Holdings began taking over in 2009 (Fuji-mura & Ozasa, 2010). In 2007, Kirin Holdings also acquired Tasmanian brewer James Boagand Son, for A$325 million, through Lion Nathan (the second largest Australian brewer), whichis a firm that is majority-owned by Kirin Holdings (Reuters, 2007). In 2008, Kirin Holdingsacquired Australian milk producer Dairy Farmers for A$675 billion (Bloomberg, 2009a). In2009, Kirin Holdings paid A$3.5 billion for the remaining 54 per cent of Lion Nathan Ltd(Bloomberg, 2009a), and Asahi Breweries Ltd acquired Schweppes Beverages from Cadbury forA$1.2 billion (Cadbury, 2009).In other sectors of the Australian market too the ‘post-Lehman Brothers Shock’acquisitions continued. In the communications sector, Fujitsu purchased Kaz Group Pty Ltd, asubsidiary of the national telecommunications carrier Telstra Corporation, for A$200 million,making the Japanese company the owner of the third largest IT firm in Australia (Bloomberg,2009b). On the manufacturing front, Nippon Paper Group Inc. acquired Paper Australia fromPaperlinX for A$700 million (Asia Pulse Comtex, 2009). On the housing construction front,Sekisui House invested A$190 million in a joint venture housing construction in Homebush Bay(NSW) and Ripley Valley (QLD) in 2009 (Callick, 2009). Again, in 2009, Marubeni and OsakaGas acquired 80.1 per cent of APA Group (Australian Pipeline Trust and APT Investment Trust)for A$800 million (APA Group, 2010). Further, in Western Australia, the A$3.5 billion OakajeeDeep Water Port and Rail Project has substantial investment from Mitsubishi Development PtyLtd of Mitsubishi Corporation, which is Japan’s biggest general trading company (Oakajee Port& Rail, 2011). Moreover, Mitsubishi Heavy Industries and Mitsubishi Corporation are planningto build and operate a coal gasification power plant in Queensland, to be operational by 2015.The firm, in partnership with Queensland government-affiliated entity ZeroGen Pty Ltd, isinvesting A$340 million (with further investment from the Japanese government to follow) inthe world’s first such large-scale plant with its carbon-capture and sequestration techniques(Kachi, 2009; ZeroGen Project, 2009). Thus far, the biggest single Japanese foreign directinvestment (A$30 billion) in Australia has been Japanese MNE Inpex’s ‘Ichthys project’ ofLNG extraction (and export) in the Timor Sea off the coast of Western Australia (AAP, 2011;AFP, 2011). As discussed above, the Japanese foreign direct investment in the ‘post-LehmanBrother shock’ period is quite extensive and spread out across several sectors of the Australianeconomy. Tables 2 and 3 provide a summary of the present structure of the industry and labourmarket in Australia. 39

The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics 40

The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics As shown on Tables 2 and 3, Australia’s ‘mining’ sector (location of foreign directinvestment from Inpex, Sojitz, Mitsubishi Development Pty Ltd, Mitsubishi Heavy Industriesand Mitsubishi Corporation) has been increasing its share of GDP and the labour market in thelast two decades. ‘Finance and Insurance Sector’, in which Dai-ichi invested, has doubled itsshare of the GDP, as shown on Table 2. The ‘ownership’, ‘locational’ and ‘internalisationadvantages’ of Japanese MNEs include technology, regional and global distribution networks.Financial holdings (cash and credit) of a MNE are a resource, and an advantage based on‘ownership’. UNCTAD singles out Japanese MNEs in its latest report for the record levels ofcash holdings that they currently possess (UNCTAD, 2011). Currency holdings as a ‘resource’are also a part of ‘RCMI’ paradigm. ‘Locational advantages’ in Australia, are implicit in the factthat the firms in food, and resources production are open to foreign acquisition, and that there isa supply of agricultural and dairy produce, minerals, gas and coal as resources in respectiveindustries that are hosting foreign direct investment. TABLE 2:The Change in the Composition of Australian GDP (%)Industry19902010Agriculture, forestry and fishing5.12.3Mining4.88.4Manufacturing14.59.3Electricity, gas and water supply3.52.1Construction7.17.9Wholesale trade5.94.8Retail trade5.84.4Accommodation, cafes and restaurants1.92.3Transport and storage5.95.2Communication services2.63.3Finance and insurance5.510.6Property and business services9.912.5Government administration and defence4.35.2Education and training4.64.4Health and community services5.76.2Cultural and recreational services1.70.8Personal and other services2.01.8Ownership of dwellings9.38.4TOTAL100100Source: Calculated from ABS 5204.0 (2011) 41

Celal Bayari TABLE 3:Labour Market Share of Australian Industries (%)Industry19902010Agriculture, Forestry and Fishing5.52.9Mining1.11.9Manufacturing14.48.5Electricity, Gas and Water Supply1.31.3Construction6.99.2Wholesale Trade6.43.5Retail Trade14.110.8Accommodation, Cafes and Restaurants4.66.9Transport and Storage4.95.1Communication Services1.81.9Finance and Insurance4.43.8Property and Business Services8.012.8Government Administration and Defence4.46.3Education6.87.8Health and Community Services9.211.3Cultural and Recreational Services2.21.9Personal and Other Services3.74.0TOTAL100100Source: Calculated from ABS 6202.0 (1986-2003) & 6291.0 (2011)OTHER MNE PERSPECTIVESThe ‘firm specific advantages’ and ‘country specific advantages’ framework of MNE behaviourauthored by Alan Rugman is somewhat relevant to this aspect of Japanese foreign directinvestment in Australia. MNEs expand abroad via an interaction of their ‘firm specificadvantages’ and ‘country specific advantages’ of the host (Rugman and Li, 2007). MNEs dobusiness primarily in their own regions (Hirst and Thompson, 1999; Hirst et al., 2009). Rugmanalso shows that the world’s trade and foreign direct investment take place predominately withinthe triad of the EU, North America, and Asia Pacific. The bulk of the business interests (73.2per cent) of Asia Pacific MNEs (i.e. Japan, South Korea, China, Australia) are in the sameregion (Rugman and Li, 2007). In seeking to outline a theory of Asian MNEs, Collinson andRugman (2007) emphasise that most Japanese MNEs, and other Asian MNEs see Asia as theirprimary domain, except a few large Japanese MNEs that de-coupled from ‘home region’ oradapted and customized to compete in other regions. Overall, Asia is the primary region ofJapanese MNEs ( Collinson and Rugman, 2008). The two authors also count Australia as part of 42

The Patterns of Japanese FDI in Australia after the Lehman Shock: Perspectives of the Eclectic Paradigm and Institutional Economics Asia, just as they count Australian MNEs as Asian. In Asia, merger and acquisition-type offoreign direct investments have been more popular in the last two decades (Athreye and Kapur,2009). A MNE seeks economies of scale and scope by integrating its interests across its homeregion countries by applying ‘firm specific advantages’, according to Rugman and Oh (2008) intheir study of the international competitiveness of Asian MNEs. This is the case with JapaneseMNEs, many of which have a strong intra-regional dimension to their foreign direct investmentactivities (Collinson and Rugman, 2008). Japan and Australia have had a continuous bilateraltrade and foreign direct investment relationship since the 1950s, which is governed by the GDPstructures of the both, in terms of resource exports from Australia and the industrial exports fromJapan (Bayari, 2008). Rugman and Verbeke provide a strong case that Asian MNEs, includingthe Japanese MNEs, follow a regional strategy in Asia (Rugman & Verbeke, 2004; 2005; 2007;2008). Dunning et al. (2007) and Dunning (2009) emphasise that the size and the nature of GDPof countries involved in bilateralism and the nature of their trade as being more relevant thanMNE strategy of regionalisation. A long-term study can shed more light on this two differingpremises. This paper has provided a case that is relevant to the framework in Dunning et al.(2007a; 2007b), especially with the emphasis that Dunning (2006) places on North’sinstitutional economics analysis. That is, Australia’s institutions, especially since the 1980sderegulation, that govern MNE and foreign direct investment activity, have allowed themaintenance of the specific bilateralism with Japan. In other words, in studies of bilateralrelationships, institutional responses are highly relevant, while the regional patterns of MNEactivity (i.e. how MNEs behave in their own regions, as in how Japanese MNEs invest and tradein Asia-Pacific) is arguably pertinent.CONCLUSIONThe paper has discussed the new Japanese foreign direct investment in Australia in the aftermathof the ‘Lehman Brothers shock’, when the global foreign direct investment activity suffered adecline. It has covered the role of institutional economics in analysis of international trade andforeign direct investment. The Australian market has remained relevant for new foreign directinvestment, and Japanese MNEs have continued their international investment activities. In2011-2012, Japan’s global foreign direct investment has been projected to be unaffected by theslowdown in its domestic market. The paper has discussed the theoretical frameworks of the‘eclectic paradigm’, and the ‘RCMI’ paradigm derived from North’s ‘institutional economics’.These are two related analytical methods, which focus on foreign direct investment, andinternational trade (Dunning, 2006; Dunning & Zhang, 2008; Cantwell et al., 2010, Dunning & Lundan, 2010). The ‘institutional economics’ paradigm’s elements are vigorous. They are notdiscernible in every instance, as in, for example, long lasting bilateral relations grounded onsettlement type of agreements, that influence subsequent foreign direct investment behaviour,and the host response. The paper has provided current statistics on Australia and Japan 43

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Euro Asia Journal of Management Issue 41, Vol. 22, No.1/2, December 2012, pp. 49-66 REFLECTIONS FROM THE FIELD: NEW ZEALAND EXPATRIATES’ EXPERIENCES IN SINGAPORE JESSICA SMART1 GRAHAM ELKIN2 and VIRGINIA CATHRO3 ABSTRACT There is often a suggestion that preparation before and on arrival is connected tothe failure or success of expatriate assignments (Enderwick & Hodgson, 1993,Ritchie, 2010; Selvarajah, 2009). The sparse, empirical research concerning NewZealand tends to be very general and lack context. We explore the currentexpatriation practices of New Zealand companies in the context of Singapore. Afteran initial literature review, face-to-face interviews and a survey we reflect theexperience of expatriates. We confirm that the quality and quantity of priorpreparation and on site training has a significant impact on expatriate success inSingapore.Keywords: Expatriates in Singapore, reflection on experience, preparation andsuccess1Department of Management, University of Otago, Box 56, Dunedin, New Zealand.2Department of Management, University of Otago, Box 56, Dunedin, New Zealand. Email: graham.elkin@otago.ac.nz3Department of Management, University of Otago, Box 56, Dunedin, New Zealand. Email: Virginia.cathro@otago.ac.nz

Jessica Smart, Graham Elkin and Virginia Cathro INTRODUCTIONAn ability to succeed as an expatriate is ‘forged through a veritable roller coaster of experiencesof intercultural adjustment’ (Chaban et al., 2011). The role of training, preparation and supportare believed to be linked to the success of expatriates (Black et al., 1991; Bhaskar-Shrinivas etal., 2005; Shaffer et al., 1999; Takeuchi, 2010). We present empirical data, collected face to faceand by questionnaire, in Singapore concerning prior preparation for expatriation and how itrelates to the level of success of expatriates. We explore the experiences of New Zealandexpatriates and suggest that context specific understandings of practice offer insight to botheveryday initiatives and the further development of theoretical frameworks and practice.CONCEPTUAL BACKGROUNDAn expatriate is an individual who is transferred to a country other than their home one for aninternational assignment (Harvey, 1985). Traditionally funding for the move, in terms of salaryand expenses, will come from the employing organisation (Inkson et al., 1997). Internationalassignments are unsettling and emotional experiences for both family and work (Kupka & Cathro, 2007; Kupka et al., 2008; Shaffer et al., 1999). Significant research examines expatriateassignments as an experience (Adler, 1983; Black & Mendenhall, 1989; Mendenhall & Oddou,1988; Tung, 1987). Past research (Ashamalla, 1998; Aycan, 1997; Black, 1988; Katz & Seifer,1996) has centred on four areas: selection of an expatriate, preparing the employee for theinternational assignment, support during the assignment and repatriation of the employee. Theinadequate management of any of these four phases contributes to expatriate failure (Hung-Wen,2007; Kupka et al., 2008; Mendenhall & Oddou, 1985). ‘Expatriate failure – usually measuredas premature return from an international assignment – has taken up a very prominent position inthe literature on expatriate management’ (Harzing & Christensen, 2004). Despite theorganisation providing support, typically by pre-departure preparation and on placement help,research suggests that organisations often send expatriates overseas with little or no priorpreparation, or acculturation training on arrival (Aycan, 1997; Black, Gregersen & Mendenhall,1992; Feldman & Thomas, 1992; Mendenhall & Oddou, 1985). Inadequate pre-departuretraining of expatriate employees remains a major reason for expatriate failure (Selvarajah, 2009).Expatriates and their families experience culture shock when they first enter a new country(Selmer, 1999). This can be very stressful (Kaye & Taylor, 1997), adjustment is vital (Chang,2005), and spousal and family support forms an integral part of expatriate adjustment andperformance (Caliguiri et al., 1998; Harvey, 1985; Shaffer & Harrison 1998; Shaffer et al., 1999;Takeuchi, 2010). 50

Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore Most organisations use expatriate staff as an interface between headquarters and thelocal subsidiary (Tung, 1987). They exert control in overseas subsidiaries, bridge the gap wherehost nationals may have difficulty relating to organisation members and are unfamiliar withheadquarters culture, solve staffing shortages, transfer specific expertise, increase globalisationof business activities and industries, offer opportunities for employees to gain careerdevelopment and experience in strategic markets, and develop management talent (Bhuian et al.,1996; Feldman & Thomas, 1992; Harris & Brewster, 1999; Tung, 1987).Black et al. (1999) found that although 62% of US firms offered some type of cross-cultural preparation, only 32% of training programmes were offered to the whole family, andtraining lasted on average for less than a day. Forster (1997) found that 77% of staff receivedcultural adjustment training, while only 43% of partners did; that 49% of expatriates hadlanguage training, and 60% went through orientation programmes. None of these studiesincluded New Zealand expatriates. New Zealand research, Enderwick and Hodgson’s (1993),found only 15% of respondent companies conducted formal training programs for expatriates.Expatriates experiencing training from Selvarajah’s (2009) study received brief environmentalbriefing and/or basic language training on arrival.Expatriates who received training performed better, with less adjustment difficulty(Earley, 1987). Support has been related to success, with greater support typically needed forexpatriates that have an accompanying spouse and families (Kraimer et al., 2001; Shaffer &Harrison, 1998). Social support is positively related to the adjustment, satisfaction and retentionof expatriate employees (Black et al., 1992; Mendenhall & Oddou, 1985). Organisations have acrucial role in the support of an expatriate and their family (Grant-Vallone & Ensher, 2001).Local community support increases expatriate success as building relationships with hostcountry nationals and adapting to local customs can ease the transition of an expatriate and theirfamily (Brewster & Pickard, 1994; Harrison & Shaffer, 2001). Organisational support is thedegree to which employees believe that their organisation is concerned with their health and wellbeing as well as assisting the reduction of conflict between employees’ personal andprofessional work life (Grant-Vallone & Ensher, 2001). Organisational support is also positivelyrelated to reduced absenteeism, commitment, production and retention (Fasolo et al., 1990).The most effective support practices for expatriates from the organisation included:regular contact with expatriates (exchange of information, avenue for discussion, potentialproblems and future plans), company newsletters and information about policy changes, liberallong distance calling privileges for expatriates, continued effort to organise social activities,finding methods to include expatriates, language instruction and assigning a mentor (Oddou,1991). The use of mentoring was noted by Selvarajah (2009) as a crucial component forexpatriates to assist the adjustment into a new work environment. E-mentoring assists in thereduction of expatriate failure (Elkin et al., 2012). Electronic methods, including that offered viasocial media, allow the capability, flexibility and accessibility to a mentor anywhere (Elkin et al.2012; Haggard et al., 2011; Headlam-Wells, et al., 2005).Singapore offers a hybrid westernised society and lifestyle, where English is theprimary business language (Selvarajah, 2009). Whilst New Zealand organisations report lowlevels of expatriation failure (Enderwick & Hodgson, 1993), New Zealand expatriates’ top three 51

Jessica Smart, Graham Elkin and Virginia Cathro reasons for failure, were related to failure to integrate, inability of family to settle and inability tochange. Inadequate training was also recorded. Selvarajah (2009) studied New Zealandexpatriates’ perception of organisations’ support during expatriation, concluding that greaterpre-departure training and support systems should be utilised in reducing the failure rates ofexpatriates. ‘Most’ participants received little training and their primary support systems werementors or senior managers who were fellow employees on assignment.AIMS AND METHODSingapore is a gateway to Southeast Asian nations (ASEAN) (NZTE, 2012). Since 2001 NewZealand and Singapore have had some form of trade agreement in place (MFAT 2005). In 2011and 2012, the World Bank ranked Singapore as number one of 183 economies for the ease ofdoing business (The World Bank, 2012). The New Zealand Chamber of Commerce Singapore,has membership of at least 18 organisations (www.nzchamber.org.sg). Taken together thissuggests that Singapore is a strategic key to business in Southeast Asia and the likely home toNew Zealand expatriates. It is already established by Richie (2010) and Selvarajah (2009) thatresearch examining the New Zealand experience of expatriation is very limited. This papercomes from a research project which set out to explore the experience of New Zealandexpatriates in Singapore. It contributes to understanding expatriate performance management inSingapore and which pre-departure preparation and continued support methods were beingoffered to New Zealanders (and accompanying spouse and families), and the preferences ofthese expatriates for prior preparation and on-site support which would contribute to theirsuccess.The study included two methods in sequential phases: a series of qualitative face-toface-interviews undertaken in mid-2011, and an online survey. The participants were NewZealanders currently engaged in full time employment for private enterprise organisations inSingapore. The aim at the outset was to use a qualitative approach with a representative sampleof members from the New Zealand expatriate community in Singapore. This was achieved usinga snowball technique which started with approaching a small group of New Zealand expatriatesidentified by Trade and Enterprise New Zealand. Each participant approached was asked tosuggest additional candidates to be approached until sufficient participants were included.Interviews were recorded with permissions and transcribed. Steps were taken to assurerespondents anonymity. Notes in the style of an ethnographic diary were taken during theinterview. Each interview was immediately written up to ensure the accuracy of what had beenrecorded and to develop themes. These themes helped structure future interviews. Once twentyinterviews had been completed, results and data were collated and analysed. At this stage it wasfelt that a point of saturation had been met with each new interview being substantially similarrather than adding new information for the range of experiences described. 52

Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore The inherent risk with this type of sampling is that the sample will lack diversity. Wetook the themes from the content analysis and compared them to the extant literature (withparticular emphasis on New Zealand research) and we constructed an online survey. The onlinesurvey was invited to interview participants and to individuals identified by the samplingprocess but not interviewed. This second step achieved two things. First it provided opportunityfor the researcher to qualify the emergent themes derived from the content analysis. Second itallowed for the point of saturation to be verified. It also might be considered a pilot of aninstrument that might be further developed as a component of future research. Twentyindividuals were interviewed, with a further 46 participants invited to participate by survey, ofwhich 32 New Zealand expatriates responded (response rate 70%) providing data via onlinesurvey. However it needs to be noted that there is a degree of participant overlap within the twodata sets, specifically 16 individuals of the 20 interviewed also participated in the online surveyof the 32 online respondents, 16 individuals (50%) are represented in both datasets. Thisapproach provides researcher confidence for the number and representativeness of the interviewsample. We also acknowledge Sixsmith et al’s (2003) citation of Jossellson (1996) that researchcan only ever offer partial insight into the lives and experiences of others and follow their lead intaking additional measure to gain confidence that the group offering insight is representative.This paper now reports the qualitative findings drawn from the interview data.Interview profile: Six females and fourteen males participated in our study viainterview. Broadly, participant’s ages ranged from 29 -58 years old, with a mean age of 43 years.Most (75%) participants were married, 20% had a partner and 5% were single. All marriedparticipants had children, with 80% of the children living with the parents in Singapore. Theywere employed by organisations in nine different industries. Interviewees ranged in the length oftime on assignment from three months to eleven years. The average period expatriates had beenon assignment was three and a half years.RESULTSSelection of an IndividualThe selection of expatriates was considered to be crucial as personal characteristics andattributes related to the success of an assignment.It is all about the person, you are employing them to be the face of the company orbecause of their ‘job specific knowledge’ (interviewee 09).Nine of the individuals interviewed used the phrase ‘open minded’ to describe an essentialattribute an expatriate needed to possess to be successful in their role.Don’t bring pre-existing conceptions. Take people as you find them. Be open to others.What may be seen as rude in New Zealand may be normal in Singapore and learn toaccept this (interviewee 10). 53

Jessica Smart, Graham Elkin and Virginia Cathro Come with a very open mind and respect for other cultures … be willing to do thingsand try stuff. Basics from eating out, to interesting things you may be served up … beadaptable. Question things you believed were absolutes back in New Zealand(interviewee 19).Level of Support prior to International Assignment in SingaporeSupport for participants is found to be high with 91% of participants, 60% of spouses and 15%of children having had at least one method of pre-departure preparation. Cultural training wasoffered to 22% of expatriates and 12% of spouses. Expatriates relocating from New Zealand feltgreater cross-cultural training, especially for the workplace would be beneficial. Culturaltraining was also seen to be most effective on arrival with the realisation that Singapore isdifferent, rather than as pre-departure preparation.Participants were asked to rank the most beneficial preparation methods provided. Theyranked the top methods as:1)Orientation visits,2)Informal discussions with other company employees who have worked in Singapore,3)Formal induction course on living in Singapore, with factual background informationand accommodation support.Overall, of the 66% of expatriates who received an orientation visit which lastedbetween two and seven days, 60% ranked this orientation visit as most beneficial or crucial toboth beginning the assignment and with the adjustment process:(A) Look-see trip is critical at the beginning of an expatriate assignment … needs to bestructured, to make the most of the time and see the things that are important duringthis time ... schooling, accommodation, site seeing etc. (interviewee 02)Had a look see trip; met agent, found an apartment, was shown food, CBD (CentralBusiness District) … made it easy, on arrival moved straight in, everything was preshipped and hit the ground running (interviewee 08).Most expatriates (71%) thought the level of difficulty adjusting to life and work inSingapore would be easier if more pre-departure training was provided.Undoubtedly (it would have been more easy) if (we’d) been given support, but was notunder any illusions to what it would be like (interviewee 13) … [Didn’t receive any pre-departure preparation and found it very] challenging, didn’t know where to start[researching living costs, schools and accommodation] (interviewee 13).The majority believed their pre-departure preparation was generic (73%), while onlythree said it had individualised components and one expatriate thought the methods providedand process was uniquely individualised. When asked how likely greater pre-departurepreparation would increase the success of their assignment, the results produced a relativelynormal distribution between very likely to very unlikely. 54

Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore Preliminary work should be providing information packs, a buddy system and helppeople assimilate into new society … need the basics of how to do this, associations,whom to talk to about information, expatriate websites (interviewee 10).Huge amount of information pre-departure about schooling and the life for thechildren … very reassuring to know the children would be okay … information onSingapore prior to departure, historical and comparative costs … Wasn’t extensive justthe logistics … no struggle relocating, everything ran smoothly (interviewee 12).On-Arrival SupportThe key objective of on-arrival support was to adjust as quickly as possible to the newenvironment. It was felt to be an essential phase in the success of an assignment.Transition phase is important to success (interviewee 12).Success is how smoothly the transition went (interviewee 15).Effective and fast adaption to the new environment in Singapore assisted in both familyhappiness and the expatriates’ effectiveness at work.Settle as fast as you can to be productive, get organised and gain stability (interviewee01).Need to be comfortable on arrival so you can work effectively and ‘hit the groundrunning’ (interviewee 11).Time between Arrival and Job CommencementAn appropriate time allowance between arriving and commencing employment was consideredimportant to the adjustment into Singapore. Expatriates with an accompanying spouse andfamilies believed a time period of less than one week was inadequate. Single expatriates andthose without accompanying spouse and families did not require the same time between arrivaland commencing employment.No struggle, everything ran smoothly. On-arrival met at airport and started with a two-week orientation that got everything sorted personally and professionally … bankaccounts, real estate, supermarket, laundry, travel, job specifics, because of this I feelwe have been very successful and effective (interviewee 12).Started orientation two days later and work started the following week. More timewould have been better … could have had a week or two to organise accommodation ...(interviewee 20).Need to be comfortable on arrival so you can work effectively and ‘hit the groundrunning’ on arrival … leaving [my] children behind was largest concern … Iacclimatised almost immediately … heavy work, distracted me, didn’t have time to missmy kids (interviewee 10). 55

Jessica Smart, Graham Elkin and Virginia Cathro Types of On-Arrival Support ReceivedThe adequacy of support was distributed between very inadequate to very adequate, offering noconclusive results.Relocation companies significantly helped the relocation and adjustment phase ofexpatriates. They often offered far greater support than just the relocation of possessions,providing information booklets and agents to help find suitable accommodation and the top levelof support assisting with the connection of utilities and setting up expatriates with basicamenities. Of the expatriates receiving support, 72% were provided with relocation via aspecialist company to assist in their relocation and adjustment to Singapore, 91% were shownhousing, 52% were shown shopping centres, 52% were exposed to information on schooling,35% for supermarkets and 22% were showcased Singapore and her attractions as a city. Agreater number of spouses than expatriates were shown content pertaining to householdmanagement and schooling.It was a very much value added system (interviewee 02).Would have liked support and preparation on a higher level and a factsheet or list ofphone numbers to help set up and arrange things in Singapore … (stuff like) schools,accommodation, agents to contact, phones, utilities (interviewee 07).There is a lot of help out there if you want …therefore give information and let themutilise it (interviewee 09).The majority (65%) found the degree of difficulty in adjusting to work and life inSingapore given the on-arrival support received easy, with only (6%) of expatriates finding it tobe difficult. All respondents either thought that the level of difficulty in adjusting to theirassignment in Singapore would be less or neutral if they had been provided ‘more’ support.The infrastructure at … was highly mature and sophisticated, the benefit was that youhit the ground running on day one (interviewee 08).Transition not smooth … (I was) envious of others relocation support … would havebeen more effective if I’d had greater support … had to take time out of work toarrange relocation … it doesn’t get any easier with experience (interviewee 15).Participants reported that the provision of on-arrival support was extremely importantfor spouses and family. This had a large impact on the success of an assignment, throughfacilitating adjustment of those accompanying.Organisations need to provide more support on arrival, for wife and children(interviewee 06).Adjustment preparation and support, not just about the employee but also about thefamily, if kids are not happy, parents will not be happy (interviewee 12). 56

Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore Continued SupportContinued support was provided to half of the survey respondents (53%), with even less forspouse and children. Respondents were asked to indicate what methods of on-going support theyreceived, management support (75%), followed by peer support (70%), were the most common.Other methods included social support and mentoring. For example, expatriates also citedfurther support not typically characterised in the literature financial support, allowances andmemberships to expatriate clubs, churches, communities, home leave, local staff and businessmanagement introductions.Greater peer support, mentoring, language training and social support were allmentioned as methods that would increase the success of expatriate assignments, along withannual flights home to remain connected and eliminate isolation from family and friends in NewZealand.Allow time to adjust … would be great to receive general words of advice on what toexpect … [At] 6-8 weeks, wow I have really moved. And cut yourself some slack …don’t expect to be 100% effective both professionally and personally (interviewee 06).Social NetworksSocial networks were viewed as crucial for the success of an expatriate assignment.[Social support is] very important (interviewee 07).Networks are vital! (interviewee 12)Continued social support was provided to 18.5% of expatriates and 26% spouses byorganisations.…Don’t want the company to interfere in your personal life [but would appreciate helpconnecting people and acknowledging networks and groups available. NZCC etc.] ...(I’d) value guidance in some of those areas (interviewee 11).Received no assistance or advice on social networks, clubs and societies. Would havebeen useful with relocation skills (interviewee 02).To create a healthy environment for yourself, [you] need networks … social networkswere created through various different activities including participation in sports,community centres and churches (interviewee 13).Many expatriates were members of Australia and New Zealand Association (ANZA)and New Zealand Chamber of Commerce (NZCC), New Zealand expatriate networks inSingapore. Expatriates with accompanying children, found schools and children’sextracurricular activities to create opportunities for expatriates to create a social network. Socialnetworks provide enjoyment of Singapore, activities, support, and friendships and reduceisolation.I think the most important thing is to have a network of friends or likeminded people toengage with to make adjustment to life in Singapore easy (interviewee 08). 57

Jessica Smart, Graham Elkin and Virginia Cathro Essential to have social support, networks, can’t survive without … [benefits receivedis the] opportunity to share experiences and talk about things not in a textbook(interviewee 05).Social support was more important for accompanying spouses, as they do not have thesocial connection, activity and routine of work each day like an expatriate has.It is important that the spouse and children feel comfortable in new surroundingsthrough opportunities to meet new people and having social networks. Not so importantfor employee and they are travelling a lot … organisations should help find or suggestnetworks, communities and groups for expatriates to connect with (interviewee 02).Reasons for LeavingAround two thirds (65%) of expatriates had seriously considered returning home prematurely.Reasons for returning back to New Zealand (or onto another place of residence) included family,lifestyle and nature of the expatriate job, children’s schooling and money.If it wasn’t for her husband’s love of his job, ….believes they already would havereturned home, as found setting up and settling difficult due to young family, long hoursand lack of support from organisation. … they were given no preparation or support byorganisation other than a list of relocation companies (interviewee 07) .[On assignment] … we have a different balance in life, to where at home we are veryfamily focused … Family’s so far away, which is hard and makes your friends veryimportant. I don’t think we would have stayed as long if we didn’t have flights homeeach year (interviewee 20).LifestyleThe Singaporean lifestyle impacted on both the enjoyment and success of living in Singapore.Positive aspects of Singapore included perception of it being an orderly country, easy tonavigate with an efficient public transport system, safe on both personal and property levels,English speaking, enjoyable and simple to adjust.…at the edge of the park …. drop shoes, bags and scooters they disappear inside for anhour or so and come back with no worries that everything would be as they left it. Thisshows the safety in Singapore and how it assures comfort and peaceful living(interviewee 19).The Singaporean dream, [where] the three C’s that count; cash, condo and car let youhave a good life (interviewee 05).However, some New Zealand expatriates felt claustrophobic with a lack of space andenvironmental surroundings.[If I didn’t have] so much travel, I would go stir crazy, just a big city (interviewee 11). 58

Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore Activities are great, except outdoor pursuits such as surfing and bush running. Thegreenery is all false, can’t replicate natural ‘flow’ (interviewee 09).Have to dig for less mainstream things; talks, quirky cafes … Cool pockets, (just) needto be in the know (interviewee 11).Many expatriates found the change in working hours to be difficult, impacting on theirpersonal lives. Expatriates particularly experienced this with families and young children.Hours are a lot later than expected starting the job working 10.00am-8.00pm, which isdifficult as I have young children and struggle to see them on a work night. I miss thebalance of kiwi organisations (interviewee 07).Hours are much longer than in New Zealand, minimum ten hour days. This would havebeen difficult if [I] came from work life balance in New Zealand, but [I] was alreadyworking extended hours (interviewee 10).Some describe the Singapore as an opportunity to other rich experiences:Get to know the local people and community … get a much richer experience(interviewee 20),Opportunities to travel internationally are very cheap … travel heaps living inSingapore … or the opportunity that you have living in New Zealand. The move hasopened avenues to travel (interviewee 10).Good for now … enables a lot of things I enjoy on a personal level. I love travelling …but won’t be here when I am 90 (interviewee 11).SuccessSuccess themes emerging from the interviews mirrored the survey findings. The top threereasons related to success were happiness, money and career development:Success has three levels. At a professional level it is meeting goals, communicated byboth parties. On a personal level, that the experience is rewarding and the leaststressful for the family and on a financial level having a variable income, makingsavings and investments (interviewee 13).On a personal level, success comes from being open to culture and customs … don’tjust get focused on the expatriate life but take interest in local culture and customs …measured on happiness ratio (interviewee 01).Professional success is tied to with-career development, meeting job objectives andtargets, job satisfaction, monetary rewards and staying the full term of the assignment.Success is the quick adjustment into new job and job satisfaction on a professional leveland adjustment of family into new lifestyle on a personal level. Happiness is a measureof this success (interviewee 07). 59

Jessica Smart, Graham Elkin and Virginia Cathro Success is hitting 80-100% effectiveness at work relatively quickly, 2-3 months, whichis achieved through support from the office and on a personal level. You also need tobe adjusted in your personal life, so you are comfortable (interviewee 11).Success is measured by money in Singapore. Singapore is driven by money and well-educated individuals … money doesn’t rule as much in New Zealand and less pressureis on education (interviewee 02).Financial reasons are a huge reason for success. Saving an amount of money thatwould not be possible in New Zealand (interviewee 04).However here some expatriates also commented that greater research and acknowledgement of living costs would aid success…things that are ‘bad’ for you are heavily taxed … even a chocolate bar is slightlymore … rent is very expensive … beer and wine are heavily taxed … transport, taxifares and food are much cheaper than in New Zealand (interviewee 04).DISCUSSIONOur data suggests the adjustment period was the underlying factor in the success on assignmentin Singapore. The inability to adjust was directly related to the failure of an expatriateassignment. Pre-departure, on-arrival and continued support practices were all contributingfactors to the adjustment period. The expatriates believed that preparation and support increasedsuccess by facilitating a smooth and fast adjustment into Singapore. Preparation reducedambiguity in the expatriation process and life in Singapore, while support facilitated adjustmentand decreased the burden and struggles associated with expatriation. Success is not purelyrelated to job factors and outcomes but on multiple factors dependent on the individual’sexperiences.Expatriates commonly cited strategies of acknowledging that Singapore was their newhome, keeping regular contact with friends and family and friends at home, and visiting familyand friends at home to minimise negative experiences associated with international assignments.Support and being valued was found significant for family members accompanying expatriateson assignment needing to be recognised, effectively prepared and supported through theexpatriate process (Oddou, 1991). Singapore is an Asian country and expatriates need to beadaptable and flexible (Tung, 1982) and possess an open mind to all differences. Expatriatesneed to be hard working with the desire and drive to get things done with key distinctionsbetween Singapore and New Zealand in terms of lifestyle, meaning of work and working hoursand cultural distinctions necessitates adaptation and realise the potential impact of both culturalshock and even expatriate failure. Previous expatriate experience speeded up the adjustmentperiod, expatriates in Singapore were still however, vulnerable to culture shock (Black & Mendenhall, 1990). 60

Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore To shorten the adjustment process and increase an expatriate’s ability to ‘hit the groundrunning’, organisations should start the process before departure with preparation and training.The most beneficial pre-departure method perceived by our expatriates in Singapore was theorientation visit and informal discussions with employees who had previously worked inSingapore. Expatriates indicated better information provided by organisations would assist themin their preparation. We believe this feedback suggests value being placed on informationassessed as valuable by others with deeper knowledge and that this affords confidence.Existing literature suggests cultural training be provided in the pre-departure stage(Brewster & Pickard, 1994; Mendenhall & Oddou, 1985; Oddou, 1991), however, ourexpatriates shared the view that it was likely more beneficial on arrival, when immersed in theculture. Training almost always addresses cross-cultural differences (Black et al., 1999) and isadvocated as an important means for adjustment (Brewster & Pickard, 1994). Only 22% of theresearch participants received brief cultural training. This is somewhat surprising given thatwhilst business tends to be conducted in English, New Zealand expatriates in Singapore face arange of needs for culture training as Singapore is a cluster of three different cultures: Chinese,Malay and Indian.Overall pre-departure preparation was recognised as effectively assisting in theadjustment of an expatriate into their new role and lifestyle in Singapore, increasing theirperceived success of their assignment. Knowing things in advance about relocating to Singaporereduced ambiguity and the adjustment period and increased expatriates’ effectiveness at work.Preparation training needs to be organised, well planned and tailored to the goals and needs ofthe organisation and expatriate to get the most from it. Country, company and culture briefingswere all highly valued methods along with an orientation visit and discussions with previousexpatriates who had been in Singapore.The research sample included those that received a full relocation and support packageand those who received nothing at all. A successful and quick adjustment to Singapore isassociated with perception of the success of their assignment. Individuals and families that haddifficulty or struggled to adjust seriously considered prematurely leaving Singapore.Determining where to live, selecting accommodation, arranging utilities and day-to-dayactivities all required a lot of time and effort. A desire for a reasonable adaptation period ofseven to fourteen days was seen as adequate for expatriates with accompanying family, whilethe time period was shorter for expatriates without accompanying family. Once an expatriate andtheir accompanying spouse and family were adjusted into their new life and environment,expatriates acknowledged they were efficient and more successful in their role. Adjusting towork quickly was attributed to supportive and informative colleagues and understanding of therole and company processes. Settlement and adjustment in personal life was thought to becrucial to adjustment at work, reflecting the spill over effect (Black & Stephens, 1989).Support was a reoccurring theme relating to the success of an assignment; those whohad expected more or did not receive adequate support and preparation tended to have an overalldissatisfaction with work and quality of life. There was also evidence of resentment towardscompanies that they had not been sufficiently supported and prepared. Logistic supportfacilitates the relocation, establishing an expatriate in their new environment and includes 61

Jessica Smart, Graham Elkin and Virginia Cathro assistance with requirements such as housing, schooling, grocery shopping and significantlyaiding adjustment (Shaffer et al., 1999).Our research participants attributed greater logistic support to a quick adjustment intolife in Singapore. Related to this a relocation company was advocated by some as the mostbeneficial logistical support method for expatriates, providing up to date knowledge about thecountry and living areas, and distinguishing between organisation and personal affairs. Otherssuggested equipping expatriates with resources to adequately establish themselves in Singaporesufficed. Ideal resources to assist in relocating comprised two essential components, areasonable time between arrival and job commencement and a list of contacts foraccommodation, schooling, utilities, and phone related set up. This type of support oftenprovided at both pre and post departure phases, was suggested by our sample to be mosteffective when integrated into an orientation visit to Singapore. During this time, expatriatesunderstand the environment, create contacts and begin the research process.Social support, often through social networks, is crucial to the success of aninternational assignment, due to the loss of social contacts because of distance from family andfriends (Harvey, 1985; Haworth & Lewis, 2005). Social networks are considered most importantfor accompanying spouses, who have been removed from all networks and familiarities, with nodaily job or routine (Adler & Gundersen, 2008). Brewster and Pickard (1994) found localcommunity support increases expatriate success. Social networks are essential to the success ofan expatriate and therefore organisations need to acknowledge this, offering support eitherthrough contacts, information, memberships, or hosting their own events for expatriates (Oddou,1991). Our expatriates echo this literature and although this connection was important for boththemselves and when applicable their spouse and family. Interestingly the role of social mediaand the spectre of virtual community affiliations were not raised. Hence, an implicit sense ofcommunity engagement and support being experienced in person on assignment in Singapore isoffered.Once assimilated into Singapore, expatriates were comfortable to be left on their own.Discussions of continued support then shifted to focus on forms of organisational support, forthe expatriate and their role within the organisation. Here, large variance in the level of supportprovided was revealed and recognised by those on international assignment. Continued supporthowever was advocated by expatriates, but those receiving it felt it aided the success of theirassignment.PRACTICAL IMPLICATIONS, LIMITATIONS AND FURTHERRESEARCHInitially, our research approach was to collect data only from New Zealand expatriates workingfor New Zealand owned companies. However, due to the size and internationalisation models ofNew Zealand companies, the participant pool for the research was too small. As a result, 62

Reflections from the Field: New Zealand Expatriates’ Experiences in Singapore participant criteria were extended to incorporate all New Zealand expatriates working inSingapore for any business. Related to this, in an ideal world, our online survey would involvemore participants, would match to a greater extent the profile of the sample of expatriatesinterviewed and would merit inclusion in the paper outright. This weakness is perhaps somewhatoffset with acknowledgement of the small number of New Zealand expatriates on assignment inSingapore, and the rich qualitative data from the study. While nearly 25 percent of NewZealanders live and work outside of their birth country (Chaban et al., 2011; OECD, 2007;O’Sullivan, 2012), they do not all base themselves in Singapore, nor do they all work withinNew Zealand companies. The number of New Zealand expatriates in Singapore appearssomewhat unknown. A recent newspaper article reporting an Asia New Zealand Foundationstudy conducted in 2009 suggested ‘there was no data source on New Zealanders working inSoutheast Asia, but that 236 expat New Zealanders in Singapore responded to a surveyconducted by the Kiwi Expat Association New Zealand’ (Tan, 2010).These results are difficult to generalise to other countries and cultures outside ofSingapore. Further research could be conducted to replicate the study in other countries andcompare the findings to understand if the results are context dependant to the county expatriatedto, or to New Zealanders as a whole. Our results echo the need suggested by Chaban et al.(2011), that understanding expatriation performance management, which includes repatriation,and the sequential experiences of multiple international assignments needs to includeperspectives bound to country-specific contexts. This research complements Ritchie’s (2010)expatriate success research on public sector organisations and provides both a recent perspectiveand the experiences of those engaged in the private sector to understand the success of NewZealand expatriates in Singapore.These findings may prompt a review of company expatriate practices, such as the on-arrival and adjustment support process; offering an adequate adjustment period for all the familyand acknowledging the need for developing social networks. We suggest that the distinctiondrawn by companies between traditional expatriates going on assignment as part of their rolewithin an organisation, and those described as self-initiating expatriates (SIE), be the subject offurther inquiry. Whilst obligations for those putting themselves on assignment (SIEs) aredifferent to traditional expatriates, perhaps they would perform with greater efficacy if supportedin similar ways by the employer.REFERENCESAdler, N.J. (1983). Cross-cultural management research: The ostrich and the trend. Academy of Management Review, 8,(2), 226-232.Adler, N.J. & Gundersen, A. (2008). International Dimensions of Organizational Behaviour. Mason, OH: ThomsonSouth-Western.Ashamalla, M. (1998). International human resource management practices: The challenge of expatriation.Competitiveness Review, 8, (2), 54-65. 63

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Euro Asia Journal of Management Issue 41, Vol. 22, No.1/2, December 2012, pp. 67-99 KEY SUCCESS FACTORS FOR PROMOTING WIRELESS INTEROPERABILITY FOR MICROWAVE ACCESS (WiMAX) TECHNOLOGY IN SRI LANKAN SMALL INDUSTRY, A CASE STUDY BASED ON COLOMBO DIVISIONAL SECRETARIAT AREA SARATH WIMALA SURENDRA BANDARA DASANAYAKA1 GOVINI THANTHIRIGE DON METHSIRI KUMARA2 and GURU DATT SARDANA3 ABSTRACT The main purpose of this study is to identify the factors, which affect theapplications of WiMAX telecom technology by small scale industries in Sri Lanka.The key factors that influence the intentions of small industry to use thetelecommunication services delivered via Wireless interoperability for MicrowaveAccess (WiMAX) technology have been identified through structured questionnairesurveys and interviews with telecom operators, regulator and small industries. Thestudy shows that the need for voice service, high initial cost, quality of the1Department of Management of Technology, Faculty of Engineering, University of Moratuwa, Moratuwa, Sri Lanka.Email: sarath.iba07@gmail.com2Dialog Axiata PLC, No. 334, T B Jayah Mawatha, Colombo 10, Sri Lanka3BIMTECH Institute of Management Technology, Greater Noida, India

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana installation and service delivered, the maintenance and ease of use significantlyaffect the small industries intention to adopt WiMAX technology.Keywords: Wireless Interoperability for Microwave Access; WiMAX, CustomerPremises Equipment, Small Industries; SMEs, Telecommunication services,Technology Management, Key Success Factors, Sri Lanka.INTRODUCTIONLack of infrastructure especially in areas of Information and Communication Technology (ICT)poses major obstacles for the development of Sri Lankan small industries (Dasanayaka, 2008;2009; Dasanayaka et al., 2011; Dasanayaka, 2011). Sri Lanka has four fixed line telephoneoperators: Sri Lanka Telecom (SLT), Lanka Bell, Suntel Ltd and Dialog Broadband, and fivemobile operators, Dialog, Mobitel, Tigo (Etisalat), Hutch and Airtel. WiMAX is the nextgeneration wireless technology certified and promoted by the WiMAX Forum (2004a; 2004b;2010) to enable pervasive high speed internet access and multimedia communications. There aretwo flavors of the technology: fixed WiMAX and mobile WiMAX. The fixed one is based onIEEE 802.16 standard. The IP based last-mile connectivity provided by WiMAX technology tocustomer premises does not mean anything to the customer unless service provider creates sometangible services over this delivery platform. The telecom operators, particularly the fixedwireless operators are looking for new revenue sources to compensate their ever decreasingvoice revenue. The Sri Lankan fixed wireless operators commenced deploying product andservices based on WiMAX technology, in later part of 2006. Dialog Broadband Networks(DBN) was the first to launch an island wide service based on this technology; Suntel and LankaBell followed.WiMAX is predominantly a last mile access technology which can be used to deliver a hostof ICT services for the end customer. Maintaining stability of the network, delivering consistentservice to its customers, integrating various service platforms, mitigating security threats,allocating right resources and carrying out product pricing are significant challengesencountered by the service providers in their initial WiMAX deployments (WiMAX Forum2004a; 2004b; 2010) . It is imperative to identify factors that influence SME’s intention to usethe ICT services delivered via WiMAX technology, and the role of technology, the operatorsand the telecom regulator can play for the successful deployment of the technology.This paper aims to identify key success factors for promoting WiMAX technology for SriLankan small industries (SMEs). The study has been restricted to small industry sub sector. Thefollowing objectives have been devised for this study:1. To identify Key Success Factors (KSF) for promoting WiMAX technology for SriLankan small industries.2. To identify the prominent ICT services acceptable to Sri Lankan small industries viaWiMAX. 68

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area 3. To develop policy guidelines for the operators and regulator when designing WiMAXbased product and services aiming at Sri Lankan small industries.THE STATUS OF TELECOMMUNICATION INDUSTRY IN SRILANKAFixed telecom service was started in Sri Lanka by establishing a telegraph circuit betweenColombo and Galle in 1858 by Oriental Telephone Company. The telecom sector is one of thefastest growing leading sectors in Sri Lanka. The Sri Lankan operators were the first to introducelatest technologies as 3rd Generation (3G) mobile and WiMAX technologies before all others inSouth Asia. In 2010, Sri Lankan telephone density for fixed line per 100 people stood at 17.3.The density, including cellular was recorded 100.3 per 100 persons. Internet and email densityper 1000 person stood at 20.8 (Central Bank of Sri Lanka, 2010).Fixed-line services could not be deployed quickly enough to keep up with globaldemand for the ever-increasing features that the internet generates at an exponential pace.WiMAX technology, IEEE 802.16 family of standards, presents wireless broadband solutions toquickly establish network connections over a Metropolitan Area Network (MAN). The WiMAXtechnology allows telecom operator to deliver multiple services such as voice, video and internettogether over a single physical device installed at customer premises, considerably reducing theresources required. Primarily used in Point-to-Multipoint (PMP) mode, WiMAX allows Non-Line-Of-Sight (NLOS) wireless connectivity among various WiMAX-enabled CustomerPremises Equipment (CPE) e.g., laptop computers, personal digital assistants. As a result,WiMAX can support numerous communications applications (e.g., voice, video, text, and dataservices), thereby offering mobility and greater flexibility in communications capabilities(Ginley, 2009). The IEEE have to date released two significant versions of the standard,IEEE802.16d in 2004 which targets fixed wireless access deployments and IEEE802.16e in2008 which targets mobile deployments. The standard provides for operation across a largefrequency range, 2-66GHz and channel sizes up to 40MHz. However, the WiMAX Forum hasdefined profiles to operate at frequencies including 2.5GHz, 3.5GHz and 5.8GHz. These profilesalign with those bands allowed by various national regulatory authorities around the world.The WiMAX Forum (2004a, 2004b, 2010) is formed to help promote and certify theinteroperability of broadband wireless products compliant with the IEEE 802.16 and ETSIHipper MAN standards. The Forum’s goal is to accelerate global deployments and grow themarket for standards-based, interoperable, Broadband Wireless Access (BWA) solutions. Thegrowth of the market will lead to reduction of costs associated with economies of scale.Reductions in equipment costs and consistent approaches to network design also vastly improvethe business model for service providers (WiMAX Forum, 2004b). Telecommunicationstandardized frameworks for overall network operation, telephone services, service operationand human factors are well explained in International Telecommunication Union (ITU, 2012). 69

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana Small Industries and ICTNew ICT techniques are giving rise to new types of business services and changing the ways inwhich firms access and use existing services (Miehlbradt, 1999). The growth and the availabilityof telecommunications infrastructure contributes significantly to GDP growth. Flexibility isconsidered to be a major source of competitiveness for small industries compared to largerenterprises (Dasanayaka & Sardana, 2010). With the use of ICT, transaction costs can belowered and therefore the benefits related to economies of scale can be increased. This willenable small industries to explore markets regionally and internationally (Wolf, 2001). A largenumber of potential commercial functions can be performed using ICT services. ICT deliverscompetitive gains, speeds up business transactions, increases customer satisfaction, deliverssuperior quality, reduces bad governance related issues and leads to improved profitability. ICThas the ability to reduce co-ordination costs, communications and information processing. It is inoperational areas that ICT finds maximum application. Small industries use ICT mainly foroperational and administrative support rather than for strategic decision-making (Dixon et al.,2002).Telecom operators around the world are offering hosts of ICT services such as Internet,email, telephony, facsimile, hosted World Wide Web, hosted Interactive Voice Response,multiparty conferencing, video, hosted security and hosted applications to its small customers.However internet and email are the most common ICT services among small industries, inaddition to basic telephony and facsimile facilities.RESEARCH METHODOLOGYThe research methodology as adopted in this study uses both the qualitative and quantitativeapproaches. The starting point is to prepare a conceptual framework of broad influencing factorsand to administer a structured questionnaire.Identification of Key Success FactorsPorter (1985) refers that Key Success Factors are the factors that determine the relativecompetitive positions of companies within an industry. Lynch (2000) points out that ananalytical process is needed that will examine the many factors that can potentially impact onstrategy. Ohame (1983) suggests that identification lies in discovering factors for success thatare likely to deliver the company’s objectives. Lynch (2000) defines, ‘Key factors for success inan industry are those resources, skills and attributes of the organizations in an industry that areessential to deliver success in the market place.’ It is thus not only the resources of organizationsin the industry but also the competitive environment in which the enterprise operates. Ohame(1983) refers to three ‘C’s: 70

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Customers: What do customers really want? What are the segments in the market place?Competition: How can the organizations beat or at least survives against competition? How doesthe organization compare on price, quality etc.?Corporation: What special resources does the company itself possess and how do they comparewith those of competitors? How does the company compare on costs, technologies, skills,organizational ability, marketing with its rivals?Since 1983, the competitive environment has undergone a major change in two areas.Therefore, the three C’s can be supplemented by addition of:Regulatory mechanism: Although the last two decades have come to be regarded as decades ofglobalization and free trade opening up the economy the way an entrepreneur always dreamt offree access to resources, markets and ‘fittest of the survival’. There is an increasing concern toregulate and set rules for business based on values, ethics, and standards and creating space forsmall industry, which generates highest employment. These regulations come from thegovernments; however these can also arise from professional societies, business federations.Societal pressures: There are also increasing pressures from society which expects the industryto consider societal interests supreme over the financial returns. Social responsibility is taking anew meaning principally directed towards use of resources with care and precaution, creation ofsocial business enterprises to eradicate poverty, not through donations, but through a supportsystem of generating sustainability.Lynch (2000) points out that the criticism centers on identification of success factors,causality of relationships, dangers of generalizing factors applicable for all types of industry, anddisregard of emergent perspectives in the dynamic market. Therefore, there is a need of cautionwhile exploring factors for success. There can be a wide variation from one segment of industryto another. The methodology followed in this study is framed in-line with classification ofinfluencing factors as devised by many telecommunication studies. Some of the major studiesinclude: (Sekaran & Bougie, 2010; WiMAX FORUM, 2004a; Ginley, 2009; Gimpel, 2009;Puskar & Aanstoos, 2008; Fellah & Blin, 2006; OECD, 2006; Rysavy Research, 2010; Alam & Noor, 2009; Gemino et al., 2006; Harker & Akkeren, 2002; Jeanette et al., 1999; Lawson et al.,2003; Ginley, 2009; Gimpel, 2009; Puskar & Aanstoos, 2008; Mathiyalakan, 2006; Muthaiyah,2004, Bouwman et al., 2008; Haaker & Vos, 2007; Henten & Godoe, 2010). The factors thatemerge from these studies can be classified in three major areas. This is depicted in Figure 1below under three factors.1)Technological factors: These are the factors that are responsible to generate benefits oflow cost, better quality, and ease of use to the consumers. These are the factors thatinfluence performance parameters against competition. The results arise from the 71

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana inputs and resources of an organization. In another dimension recourse to technologicalfactors is called for in case the performance has to be enhanced.2) Political and Economic factors: This classification groups such influencing factors thatare related to the characteristics of the organization. The ownership and the managerialstyle impact the characteristics. The factors include economic pressure which comefrom the market. As such these factors carry an affinity to market perspectives. .3) Regulatory factors: Sri Lanka is an emerging economy. The rate of growth and thegeneral direction to the economy is largely determined and evolved by the government.The organization has to discover factors to regulatory environment factors that telecomoperator can influence.Sri Lankan business is overwhelmingly an economy of small business. Thecharacteristics of small business are largely influenced by the owners-cum operational managers.These owners influence and develop the characteristics of the organization. They shape theculture and determine the positioning in the market. The degree of flexibility and ability towithstand the economic pressures of the market comes from the direction as provided by theowners-cum managers of small scale industry (Dasanayaka & Sardana, 2010). It would betherefore desirable to identify such factors which have origins in small industry setting of SriLanka.Performance of the telecom operator is largely influenced by availability of theresources. The support from the regulatory practices, rules and direction from the nationalplanning policies as adopted by the government of Sri Lanka can also be placed in this category.The three classifications as discussed can thus be divided in two groups in the contextof Sri Lankan environment.a) Factors that a telecom operator can influence,b) Factors that exist in the small industry setting.The broad problem areas identified through observations and discussions with the ICTservices experts was narrowed down by carrying out unstructured interviews and literaturesurveys to arrive at the problem definition. Subsequently the theoretical framework was refinedthrough extensive literature surveys. Interviews with the industry experts, telecom operatorsconstituted an important input to arrive at the final framework. The Key Success Factors,affecting the problem area are highlighted and defined in Table 1. These factors include suchfactors which telecom operators under the influence of technology and regulatory practices caninfluence as also factors that exist in a small industry setting. As this study carries focuses onSri Lankan small industry, it would be necessary to exclude such factors from this frameworkwhich are not effective in the small industry business context. These selected factors are shownpictorially in Figure 2. Further technological and regulatory concepts were studied as anexploratory study separately. Studies have shown that greater the benefits perceived by smallindustries, the higher is possibility of ICT adoption. These benefits are available in threedimensions: strategic, informational and operational (Alam, 2009; Alam & Noor, 2009; Davis,1989; Dixon et al., 2002; Dwivedi et al., 2007; Gemino et al., 2006; Harker & Akkeren, 2002;Kazi, 2007; Vrechopoulos et al., 2002). We have covered only the technological factors of thismodel which will be useful to the SME sector and telecom service providers. Therefore 72

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area owner/manager and firm characteristics can be done by other researchers and are willing to keepit as an agenda for further research.FIGURE 1:Conceptual Framework of the Study 73

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana FIGURE 2:The factors affecting the successful deployment of ICT services over WiMAX 74

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Operationalization of VariablesReduction of abstract concept to render it measurable in a tangible way is called operationalizingthe concepts (Sekaran & Bougie, 2010). The ICT services identified as important or useful forsmall industries are: voice service, facsimile service, email service and the Broadband Internetservice. Hence, adoption and utilization of WiMAX technology is equivalent to adoption andutilization of said ICT services delivered to customers. It is not necessary that all the servicesmentioned are probable for utilization by the small industry customer to evaluate theadoptability of the WiMAX technology. Instead, if at least one of the services is required by thecustomer and it is delivered using WiMAX technology that situation then will be considered as apossibility of adopting WiMAX technology. The variables used in this study are defined as inTable 1.TABLE 1:Operational definition of variablesNoFactorDefinition1F11Service bundling Bundling can be defined as ‘selling two or more products or services in a single package for a special price’. Providing any combination of voice, facsimile, Internet mail and Broadband Internet services together via WiMAX technology will be considered as service bundling. 2F21Needs for basic voice serviceThis is the same as the needs for basic telephony service.3F22Needs for facsimile service Facsimile machine is a device which sends and receives printed pages or images over telephone lines by converting them to and from electronic signals. So this represents the need for sending and receiving a copy of a document using facsimile machine. 4F23Needs for Internet mail serviceNeeds for sending and receiving messages electronically using computers and related software.5F24Needs　for　Broadband Internet service Needs for Broadband Internet mean the need for access to the Internet using a broader communication channel than 128 kbps of speed? 6F31Strategic benefits Benefits which are essential for enhancing competitiveness or creating strategic advantage, and in other words, the benefits which enable the organization to catch up with the competitors or beat the competition. 7F32Informational benefitsThis enables easier and faster access to internal or external information for better customer service or better 75

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana NoFactorDefinitiondecision making.8F33Operational benefitsEnhance productivity or business efficiency while reducing cost of operation.9F41Initial costThe cost incurred by the customer, in this case small industries, for acquiring new services or upgrading an existing services or rearranging an existing service. It is a onetime cost to the customer.10F42Recurring costThe cost incurred by the customer while using the service and there are generally two components as fixed and usage parts. This is again a repetitive cost, which is usually paid monthly.11F51Quality of the installationThe installation process consists of all the activities, that the service provider carry out from the purchase to the completion of the actual installation, up to the point customer can use this service.12F52Quality of the service deliveryThis measures how the service performs throughout it is being utilized by the customer.13F53Quality of the remote supportThe remote support means the process where issues get resolved by calling a representative of the service provider over the telephone.14F54Quality of the maintenanceThe maintenance means the process where the issues cannot be resolved remotely, a team should be dispatched. So, the process runs from lodging the fault in the service provider’s system to resolving the issue at the customer premises.15F55SecuritySecurity means ensuring the integrity of the customer’s data, preventing unauthorized access and minimizing hazards situations.16F61Perceived ease of useThe degree to which a person believes that using a particular system would be free of effort.17F71External pressure (Branding)Pressure exerted via advertising.These variables were broken down to dimensions or indicators which are measurableitems as depicted in Table 2. The indicators do not represent the variables in equal proportionbecause some indicators are more important than others. It is therefore necessary to assignweights to reflect importance of each variable. There are several methodologies available toarrive at relative weights. Prem Vrat et al. (1998) refers to some approaches:Method of Direct Scaling: Bauer et al. (1977) recommends that evaluators are asked first theiropinion on the relative weight, on a scale of 0-100 of each variable in a hierarchy, the sum of allthe weights of all the variables to be 100. The different evaluations are then averaged out. 76

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Setting hierarchy and weights from top to bottom: In this methodology, the top priority isassigned 100 points. The following priority is ranked relative to the one it follows. Weight of avariable is arrived by dividing its score with the total score of all the variables.Setting hierarchy and weights from bottom to top: In this case the least important variableappearing at the bottom is assigned 10 points. The next least important is allotted points relativeto its predecessor. The points are summed up and the weight of a variable is its points divided bythe sum of all the points. These can be converted to a scale of 100.Method of paired comparison: Each variable is compared with every variable and weightsassigned on a scale of 1-3, three representing a major difference of importance, two as a mediumdifference of importance and one as a minor difference of importance.In this study, the authors have resorted to an open exercise of asking the stakeholders about theirevaluation of indicators in a class of concept on a scale of 0-100, the total of all the weights inthe class remaining as 100. Hence, weights were assigned to each indicator as given in Table 2,after averaging and approximating to multiple of 5%.TABLE 2:Measures of the variablesConceptFactorsWeightIndicatorsSource for the indicatorsMeasureService bundlingService bundling35%Price benefitsPelino et.al, 2007Likert30%Accountability from one partyPelino et.al, 2007Likert25%Convenience of dealing with one partyPelino et.al, 2007Likert10%Receiving a single billPelino et.al, 2007LikertPerceived ICT needsNeeds for basic voice serviceN/ACurrently using/ Future intention of useGemino et.al, 2006LikertNeeds for facsimile serviceN/ACurrently using/ Future intention of useGemino et.al, 2006LikertNeeds for Internet mail serviceN/ACurrently using/ Future intention of useGemino et.al, 2006LikertNeeds for Broadband Internet serviceN/ACurrently using/ Future intention of useGemino et.al, 2006LikertPerceived benefitsStrategic benefits20%Enhance competitivenessGemino et.al, 2006Likert35%Improve customer relationGemino et.al, 2006Likert 77

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana ConceptFactorsWeightIndicatorsSource for the indicatorsMeasure25%Enhance credibilityGemino et.al, 2006Likert20%Reach new customersGemino et.al, 2006LikertInformational benefits50%Easy access to informationGemino et.al, 2006Likert50%Acquire new knowledgeGemino et.al, 2006LikertOperational benefits50%Cost reductionGemino et.al, 2006Likert50%Enhance productivityGemino et.al, 2006LikertPerceived costInitial cost95%Connection chargeManamperi, 2009Likert5%Relocation chargeManamperi, 2009LikertRecurring cost50%Fixed rental chargeManamperi, 2009Likert50%Variable usage chargeManamperi, 2009LikertPerceived quality of serviceQuality of the installation30%Use new equipmentLeisen and Vance, 2001; Shaharudin et.al, 2009Likert10%Employees appear neatLeisen and Vance, 2001; Shaharudin et.al, 2009Likert40%Flawless of the installationLeisen and Vance, 2001; Shaharudin et.al, 2009Likert20%Time taken to install from the purchaseLeisen and Vance, 2001; Shaharudin et.al, 2009LikertQuality of the service delivery50%Service availabilityLeisen and Vance, 2001; Shaharudin et.al, 2009Likert10%Call completionLeisen and Vance, 2001; Shaharudin et.al, 2009Likert20%Audio qualityLeisen and Vance, 2001; Shaharudin et.al, 2009Likert20%Upload/download speed with consistencyLeisen and Vance, 2001; Shaharudin et.al, 2009LikertQuality of the remote support75%Prompt serviceLeisen and Vance, 2001; Shaharudin et.al, 2009Likert25%Consistently courteousLeisen and Vance, 2001; ShaharudinLikert 78

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area ConceptFactorsWeightIndicatorsSource for the indicatorsMeasureet.al, 2009Quality of the maintenance25%Time taken to responseLeisen and Vance, 2001; Shaharudin et.al, 2009Likert15%Employees appear neatLeisen and Vance, 2001; Shaharudin et.al, 2009Likert60%Time taken to rectifyLeisen and Vance, 2001; Shaharudin et.al, 2009LikertSecurity30%Data integrityHarker and Akkeren, 2002Likert35%Protection from unauthorized accessHarker and Akkeren, 2002Likert35%Adequate protection from lighteningManamperi, 2009LikertPerceived ease of usePerceived ease of use25%Clear and understandableAl-Omoush and Shaqrah, 2010Likert25%Easier to handleAl-Omoush and Shaqrah, 2010Likert25%Easier to become skilfulAl-Omoush and Shaqrah, 2010Likert25%MobilityFrost and Sullivan, 2009LikertPerceived pressureExternal pressure (Branding)N/AAdvertisementDwivedi et.al, 2007LikertSamples for the StudyThe technological and regulatory factors affecting the successful deployment of WiMAXtechnology in Sri Lanka were ascertained by analyzing the responses received for a set ofstructured questionnaire, separately administered for telecom operators and the regulator. Threeindividuals were selected for this survey from each operator, of which three were fixed wirelessoperators, and one fixed wire-line operator. Further, three individuals were selected from theregulator enabling a total sample of fifteen respondents altogether. The quantitative part of theresearch was carried out to get in-depth understandings about the factors affecting successfuladoption of ICT services delivered using WiMAX technology in the small industry settings. Thefield survey was restricted to small industries. 79

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana Data Collection InstrumentAll the questions in the questionnaire except two questions were open ended questions. Thesequestions were emailed to selected individuals from the industry. In developing measures for theconstructs proposed in the model, the previously validated measures were used wheneverpossible depending on their availability and researcher’s capability to find them. To constructmeasures for most of the variables, previously validated instrument were used giving due creditto the original scholars. However, the existing indicators required some modifications to suitsmall industry environment. The questionnaire was designed such a way that it could be used tocollect information from both adopters and non-adopters. All these questionnaires are attachedin the appendix. The indicators and their original sources are depicted in Table 2. Variables weremeasured on Likert scale (1-5).DATA ANALYSISThe qualitative part of the research study comprised of analysis of technological and regulatoryfactors from the responses received. Naturalistic type of observations, such as listening toconversations and taking part in the meetings with the regulator and the other operators, wereused for reinforcing the research findings.The quantitative part of the research was carried out to get in-depth understandingsabout the factors. The initial raw data gathered through field survey was used for deriving thefinal values of variables for each sample after taking the weighted average of the responses.Statistical Package for Social Sciences (SPSS 12) was used to analyze the final valuesstatistically and finally present the results. The mean and the standard deviation of the samplewere calculated for each variable for identifying their significance, and the 95% confidenceinterval of the mean difference was calculated again for each variable using one sample t-test tounderstand their consistency throughout the population. Once the success factors were identifiedanalyzing the mean values of the variables, hypothesis testing was carried out to test thestatistical significance of the success factors for the population.Qualitative Data AnalysisNine responses were received against a total of fifteen. All the respondents have agreed thatWiMAX is an alternate technology to wire- line for providing fixed broad band services. It alsosurfaces that the ability of the technology to give guaranteed speeds and quality of service makesit similar to wired technology and at the same time differentiates it from competing mobiletechnologies. 80

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area CostHigh Speed Packet Access (HSPA) enjoys an edge as the 802.16d version of WiMAXtechnology which is currently operational in Sri Lanka cannot meet price expectation and theconvenience provided by the competing mobile technologies. It is difficult to compete on priceswith wire line broadband even in the residential space. Majority response favored offer ofmultiple services called service bundling. However, mobile variant of the technology (802.16eand 802.16m) is considered as the future for WiMAX, since it reduces the cost factortremendously. It was found that the CPE price of the mobile version was roughly two to threetimes lower than the fixed version. Affordability plays a major role again to pitch thistechnology for mass market. Capital expenditure was needed to provide NGN type serviceplatforms to transport only IP based services. Cost of the CPE was another concern raised by theoperators when competing with technologies such as HSPA, the technology used by mobileoperators to provide broadband services.Range of servicesThere is no clear understanding between operators and the regulator about the services whichshould be delivered via existing WiMAX networks, and to which markets these services shouldbe served. The regulator thinks that the technology should be predominantly used to cater tounmet broadband demand and multiple services for business customers. It is also brought outthat WiMAX technology should be used for expanding the market segment towards the lowertier of the pyramid. Most believe this technology can be used to offer full range of services suchas basic voice, facsimile, enhanced voice, internet, email, web, data, video and remotesurveillance to its small business customers. This technology will have a huge success as it willnot have dependence on need of an otherwise a large cable manufacturing plant to provide wires.The WiMAX technology enables an IP based connection to customer premises from the serviceprovider network.Preconditions of supportEquipment vendors have to play a major role by sharing their prior experience and providingtechnical expertise required. Hardware and software issues also need to be addressed. The initialinvestment which is required to deploy a WiMAX network island wide is again a big concern formost of the operators. The respondents stated that not only the cost of base-station createdproblems for the operators but also the cost of upgrading their back-haul network to cater to thetraffic generated by its WiMAX customers.Current OperationsConcerns were raised about the spectrum in which the WiMAX networks currently operate. Thecoverage of a base-station is limited when it operates in higher frequencies as of 3.5GHz it 81

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana currently uses, due to the climatic conditions and terrain characteristics of Sri Lanka and thenagain due to the inherent propagation characteristics of microwaves. It may require installingmore and more base-stations. Besides, low frequencies facilitate non line-of-site operation wherea link between customer and the operator’s base-station will be established through merereflections. The operators can save considerable amount of installation and maintenance costsince a plug and play type of operation is possible by operating in low frequencies. The opinionconcludes that operators should not only move to mobile variant of the technology, but alsoshould operate on lower frequencies. Currently operators pay a large amount of recurrentcharges to the government for the spectrum usage. Obviously this cost has to be finally borne bythe customer affecting the cost factor of the technology adoption and in turn affecting thesuccess of the deployment of WiMAX technology.The operators also referred to the monthly spend for enabling international bandwidthrequired to provide internet services to its WiMAX customers. The high price is attributed tohigh charges imposed by the incumbent as its landing rights. The recurring cost to WiMAXusers can be considerably reduced by controlling this cost factor. Among alternatives, HSPA, awireless Broadband technology, and Asymmetric Digital Subscriber Line2+ (ADSL2+), are inforefront of the broadband race. The 3rd Generation (3G) mobile operators in the country arepromoting HSPA which is an improvement to Wideband Code Division Multiple Access(WCDMA) protocol to its customers for meeting their personal mobile Broadband needs. Theincumbent who owns the country’s only copper network exclusively is promoting ADSL2+ toits business and residential customers for meeting their fixed Broadband needs. Long TermEvolution (LTE), the evolution of 3G or rather HSPA, is the close contender for WiMAX andboth are heading towards the true 4th Generation (4G) technology called “LTE-Advanced” and“Wireless MAN-Advanced” respectively.Quantiative AnaIysisThe results of the field survey were analyzed using statistical tools to identify key successfactors. The number of random samples received for performing this task, from Sri Lanka’sDepartment of Census and Statistics (DCS), and amount of samples finally surveyed, aredepicted in Table 3. 82

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area TABLE 3:Random sample used for surveysDescriptionValuesNumber of random samples received from DCS109Number of small industries which has been closed down or relocated within the sample received54Number of small industries which could not be located via given addresses8Number of samples which could not be attended for surveys within stipulated time frame and abandoned subsequently11Number of samples which were finally surveyed36It could be observed that the number of employees vary from two to nine people depending onthe type and size of the business within small industries. The details about the number of peoplesengaged in small industries within Colombo Divisional Secretariat (DS) division are aspresented in Table 4.TABLE 4:Number of persons engaged in the businessDescriptionColombo Division Secrétariat Division PopulationColombo Divisional Secretariat Division SampleNo of small industry establishments1,43436No of persons engaged4,345192No of persons per establishment35Source: Census and Statistics Department, unpublished data, 2011 83

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana Small industries surveyed for this study engaged in different fields are delineated in Table 5TABLE 5:Industry sector composition within the samples surveyedIndustry DivisionsNumbersJewelry industry4Printing industry10Metal works industry3Tailoring sector3Timber industry2Paper and board industry2Other12Source: Census and Statistics Department, unpublished data, 2011Adoption of voice, facsimile, Internet mail and Internet broadband services by small industrieswere considered for further study and the results are as depicted in Table 6.TABLE 6:Usage of ICT services within the samples surveyedIndustry DivisionsNumbersVoice Service36Facsimile service11Internet mail service10Internet Broadband service10Source: Structured questionnaire survey 84

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Descriptive AnalysisThe data gathered after applying the survey instrument to the random sample of CDS divisionreceived from DCS, was analyzed through SPSS for generating the mean and the standarddeviation of the sample data as depicted in Table 7. The one sample t-test was used to derive the95% confidence interval of the mean difference as shown in Table 8. Mean standard deviationand mean differences are shown for each and every factor identified as affecting the promotionof WiMAX technology in small industry settings. There is neither strong support nor rejectionstoo for service bundling in the sample of the small industry settings.Because of the low cost and it being the basic start up necessity, the basic voice servicedominates and therefore it is a mandatory requirement for any business in small industry.However, the requirement of other services varies from business to business as standarddeviation taking a high figure and the respective confidence interval too varies considerably.TABLE 7:Mean and the standard deviation of the responsesFactorsMinimumMaximumMeanStd. DeviationF1.1Service bundling2.004.603.560.54F2.1Needs for basic voice service5.005.005.000.00F2.2Needs for facsimile service1.005.002.641.85F2.3Needs for Internet mail service1.005.002.361.85F2.4Needs for Broadband Internet service1.005.002.361.82F3.1Strategic benefits2.455.003.710.52F3.2Informational benefits2.004.503.190.67F3.3Operational benefits2.005.003.440.65F4.1Initial cost1.104.954.200.94F4.2Recurring cost1.505.003.740.89F5.1Quality of the installation2.405.004.000.55 85

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana FactorsMinimumMaximumMeanStd. DeviationF5.2Quality of the service delivery2.905.003.930.47F5.3Quality of the remote support2.005.003.680.73F5.4Quality of the maintenance3.354.854.110.48F5.5Security2.004.703.050.67F6.1Perceived ease of use3.005.003.930.47F7.1External pressure (Branding)2.005.003.030.91Source: Structured questionnaire survey‘Strategic benefit’ has the highest mean among three benefit types identified for thisstudy.TABLE 8:Confidence interval of the meansFactorsMeanStd. Deviation95% Confidence Interval of the DifferenceLowerUpperF1.1Service bundling3.560.543.383.75F2.1Needs for basic voice service5.000.00**F2.2Needs for facsimile service2.641.852.013.27F2.3Needs for Internet mail service2.361.851.732.99F2.4Needs for Broadband Internet service2.361.821.742.98F3.1Strategic benefits3.710.523.533.88F3.2Informational benefits3.190.672.973.42 86

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area FactorsMeanStd. Deviation95% Confidence Interval of the DifferenceLowerUpperF3.3Operational benefits3.440.653.223.67F4.1Initial cost4.200.943.884.52F4.2Recurring cost3.740.893.434.04F5.1Quality of the installation4.000.553.824.19F5.2Quality of the service delivery3.930.473.774.09F5.3Quality of the remote support3.680.733.433.93F5.4Quality of the maintenance4.110.483.954.27F5.5Security3.050.672.833.28F6.1Perceived ease of use3.930.473.774.08F7.1External pressure (Branding)3.030.912.723.34* As standard deviation is zero not necessary to calculate lower and upper boundry for this variable.Source: Structured questionnaire surveyThe initial cost is the biggest concern for adopting this technology. The quality ofinstallation, service delivery and maintenance are of greater concern for adopting thistechnology since these factors too hold higher mean values compared to other factors in thesample. The customer friendly use has a significant influence for technology adoption since ithas a higher mean value. On the other hand, external pressure has little influence in theirdecision making as indicated by a low mean value.Classification of FactorsThree sub categories were devised as Low, Medium and High for the purpose of identifying keysuccess factors. The value ranges were assigned to these sub categories by dividing the range forLikert scale (5-1=4) by three. According to this method (Manamperi, 2009), each sub categorywill have respective ranges as follows: Low means no considerable influence (1.0 - 2.33),Medium means there is some influence (2.34 - 3.66), and High means heavy influence (3.67 -5.0). Table 9 depicts these categories. 87

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana TABLE 9:Classification of factorsFactorsMinimumMaximumMeanCategoryF1.1Service bundling2.004.603.56MediumF2.1Needs for basic voice service5.005.005.00HighF2.2Needs for facsimile service1.005.002.64MediumF2.3Needs for Internet mail service1.005.002.36LowF2.4Needs for Broadband Internet service1.005.002.36MediumF3.1Strategic benefits2.455.003.71HighF3.2Informational benefits2.004.503.19MediumF3.3Operational benefits2.005.003.44MediumF4.1Initial cost1.104.954.20HighF4.2Recurring cost1.505.003.74HighF5.1Quality of the installation2.405.004.00HighF5.2Quality of the service delivery2.905.003.93HighF5.3Quality of the remote support2.005.003.68HighF5.4Quality of the maintenance3.354.854.11HighF5.5Security2.004.703.05MediumF6.1Perceived ease of use3.005.003.93HighF7.1External pressure (Branding)2.005.003.03MediumSource: Structured questionnaire survey 88

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area According to Table 9, there are nine and seven factors in the high and mediumcategories respectively, while only one factor has fallen in low category. Table 10 depicts factorsunder the high category.TABLE 10:Success factors for the sampleFactorsMinimumMaximumMeanCategoryF5.3Quality of the remote support2.005.003.68HighF3.1Strategic benefits2.455.003.71HighF4.2Recurring cost1.505.003.74HighF6.1Perceived ease of use3.005.003.93HighF5.2Quality of the service delivery2.905.003.93HighF5.1Quality of the installation2.405.004.00HighF5.4Quality of the maintenance3.354.854.11HighF4.1Initial cost1.104.954.20HighF2.1Needs for basic voice service5.005.005.00HighSource: Structured questionnaire surveyHypothesis Test for PopulationThe following null hypothesis was developed for testing the statistical significance of thesuccess factors for the population.H0: μ=3.66 where μ represents the mean of the population for a success factorIf H0 is rejected, the alternative hypothesis will be accepted and it is presented as follows:H1: μ>3.66 where μ represents the mean of the population for a success factorThe null hypothesis (H0) is rejected, if the ρ-value < α, where α represents the significance level.Significance level will show how likely the result will change, and 5% of significance isgenerally used for this type of research studies. This again means there is 95% of chance ofbeing true, and it is shown by 95% confidence interval in the population. One sample t-test was 89

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana carried out for value 3.66 using SPSS statistical software, and the result has been tabulated inTable 11.TABLE 11:ρ-value for null hypothesisFactorsp-value for H0:μ=3.6695% Confidence Interval of the DifferenceSignificant for Population?LowerUpperF2.1Needs for basic voice service***YesF3.1Strategic benefits0.591-0.1290.223NoF4.1Initial cost0.0020.2200.858YesF4.2Recurring cost0.611-0.2300.380NoF5.1Quality of the installation0.0010.1580.528YesF5.2Quality of the service delivery0.0010.1130.433YesF5.3Quality of the remote support0.866-0.2300.270NoF5.4Quality of the maintenance0.0000.2860.608YesF6.1Perceived ease of use0.0020.1100.420Yes* As standard deviation is zero not necessary to calculate lower and upper boundry for this variable.Source: Structured questionnaire surveyThe null hypothesis, H0 has not been rejected for factors F3.1, F4.2 and F5.3, since theirρ-value is greater than α (=0.05). In other words, it cannot be said that μ is greater than 3.66.Null hypothesis is rejected for factors F4.1, F5.1, F5.2, F5.4 and F6.1, since their ρ-value is lessthan α (=0.05), and therefore the alternative hypothesis H1 is accepted. The population means, μfor those factors are greater than 3.66 with 95% of confidence and they fall within the highcategory even for the population. F2.1 is selected without hypothesis testing, since its mean isfive and there is zero standard deviation. Thus, those factors can be considered as key successfactors accepted by the entire population in the Colombo DS division. 90

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Final Selection of Key FactorsFinally, six factors, need for basic voice service, initial cost, quality of the installation, quality ofthe service delivery, quality of the maintenance, and perceived ease of use are selected as thekey success factors. Other factors did not satisfy the statistical requirement to be key factors.These are depicted in Table 12.TABLE 12:Key success factorsFactorsp-value for H0:μ=3.6695% Confidence Interval of the DifferenceSignificant for Population?LowerUpperF2.1Needs for basic voice service***YesF4.1Initial cost0.0020.2200.858YesF5.1Quality of the installation0.0010.1580.528YesF5.2Quality of the service delivery0.0010.1130.433YesF5.4Quality of the maintenance0.0000.2860.608YesF6.1Perceived ease of use0.0020.1100.420Yes* As standard deviation is zero not necessary to calculate lower and upper boundry for this variable.Source: Structured questionnaire surveyThese key success factors are tabulated in their ranking order as shown in Table 13,together with their mean the 95% confidence interval. 91

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana TABLE 13:Key success factors in the ranking orderFactorsMean95% Confidence Interval of the DifferenceRankLowerUpperF2.1Needs for basic voice service5.000**1F4.1Initial cost4.1993.884.522F5.4Quality of the maintenance3.9333.954.273F5.1Quality of the installation4.1073.824.194F5.2Quality of the service delivery4.0033.774.095F6.1Perceived ease of use3.9263.774.086* As standard deviation is zero not necessary to calculate lower and upper boundry for this variable.Source: Structured questionnaire surveyVoice service is the dominant service among all other services surveyed for their needswithin Colombo DS division. Apart from this, initial cost plays a significant role decidingwhether to be successful or not in the small industry settings, because of their poor financingability. The quality of the service, in terms of the initial installation, subsequent service deliveryand timely fault rectification are deciding factors to the successful adoption of ICT services.CONCLUSIONAdoption of technology is low in the small industry environment. It is mainly due to the lack ofskills and awareness about the benefits it can yield. Voice service is used by almost all the smallindustries as their communication technology. Other ICT services are used less frequently. Mostof the industries are not technology driven, and in general modern technology is rarely employedby small industries for enhancing their businesses. The ability to deliver guaranteed speeds andquality of service provide an edge for WiMAX technology over the other competing wirelessbroadband technologies such as HSPA. The fixed version of the WiMAX technology (802.16d),which has been currently deployed by all the fixed wireless operators in Sri Lanka, has barriersfor reaching masses, due to the exorbitant cost incurred for the CPE and the subsequent 92

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area installation and maintenance. The mobile version of the WiMAX technology (802.16e and802.16m) allows the fixed operators to compete with equivalent mobile technologies available inthe market, since it will reduce the cost factor considerably to be far with the competition. Thevendor support is a key requirement for successful deployment of WiMAX technology. Themobile variant of the WiMAX technology (802.16e, 802.16m) allows a plug and play type ofoperation resulting a reduction in installation and maintenance cost, but benefits cannot be fullyachieved unless it operates in lower frequencies. Spectrum charges are a significant componentof the operational expenditure. Cost of international bandwidth contributes considerably tomonthly recurring cost of Broadband Internet service, and from the overall cost, landing cost is asignificant component.The following have emerged as the key success factors for promotion of WiMAX in SriLankan small industry: Need for basic voice service, Initial cost, Quality of the installation,Quality of the service delivery, Quality of the maintenance, and Perceived ease of use. This isnot surprising if one considers the basic profile of a Sri Lankan small business which lacksexposure to technology, operates on low skills and therefore would always prefer a friendlytechnology in maintenance, uses and is in need of largely voice service in communication and isever short of financial resources to opt for other options of telecommunication technologies.RECOMMENDATIONAbility to provide a wide range of support particularly in the area of service integration andsolving on-going operational issues plays an important role the regulator has in developing thistechnology fairly among the operators and making sure the benefits are adequately passed to theend customers such as small industries. Cost, quality, ease of use as the predominant key successfactors have high linkages with technology and core competencies of the organization. Onceagain the regulator has an important function and responsibility. The support is reflected inpolicies encouraging the adoption of latest technology. Operators should pay their full attentionfor the support available from the vendor when selecting the equipment for deploying WiMAXnetworks. Operators should make continuous effort to understand customer’s requirement anddesign and deliver their products and services in such a way that it is consistent with customer’srequirement, beliefs and the way customers are accustomed to work.REFERENCESAlam, S. (2009). Adoption of internet in Malaysian SMEs. Journal of Small Business and Enterprise Development, 16,(2), 240-255.Alam, S. & Noor, M. (2009). ICT adoption in small and medium enterprises: An empirical evidence of service sectorsin Malaysia. International Journal of Business and Management, 4, (2), 112-125. 93

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana Bouwman, H., Vos, H. & Haaker, T. (2008). Mobile Service Innovation and Business Models. Berlin: Springer.Bauer, V. & Wegner, M. (1977). A community information feedback system and multi-attribute utilities. In Bell, D.E.,Kenney, R.L. & Raiffa, H. (eds.) Conflicting Objectives in Decisions, New York: John Wiley & Sons.Central Bank of Sri Lanka (2010). Annual Report – 2010. Colombo, Sri Lanka.Dasanayaka, S. (2008). Small and medium scale industries in Sri Lanka. In Ndubisi, N.O. (ed.) Small and MediumEnterprises in the Pacific Rim. ARAH Publishers in Malaysia.Dasanayaka, S. (2009). Small and Medium Scale Industries: The development and Practice in Sri Lanka. Sri Lanka:TKP Publishers.Dasanayaka.S, Kankanamge, K. & Sardana, G.D. (2011). Identification of barriers for development of the Sri Lankansmall and medium scale furniture and wooden products manufacturing enterprises: A case study based onMoratuwa area. Euro Asia Journal of Management, 21, (1/2), 69-101.Dasanayaka,S. & Sardana,G. (2010). Development of small and medium enterprises through clusters and networking: Acomparative study of India, Pakistan and Sri Lanka. World Review of Entrepreneurship, Management andSustainable Development, 6, (1/2), 50 – 72.Dasanayaka, S. (2011). Enhancing competitiveness of small and medium scale industries through clusters: A case studybased on Sri Lanka. Asia–Pacific Tech Monitor. Asian and Pacific Centre for Transfer of Technology (APCTT) ofthe United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).Davis, D. (1989). Perceived usefulness, perceived ease of use, end user acceptance of information technology.Management Information System, 13, (2), 318-341.Dixon, T., Thompson, R. & McAllister, P. (2002). The Value of ICT for SMEs in the UK: A Critical Literature Review.Reading: College of Estate Management.Dwivedi, K., Khoumbati, K., Williams, D. & Lal, B. (2007). Factors affecting consumers' behavioral intention to adoptbroadband in Pakistan. Transforming Government: People, Process and Policy, 1, (3), 285-297.Frost & Sullivan (2009). Mobile WiMAX: Transforming Wireless Broadband Hype into Reality. Asia Pacific MarketInsight, available at: http://www.frost.com/prod/servlet/cio/181394563Fellah, A. & Blind, J. (2006). Spectrum Analysis: The Critical Factor in BWA/WiMAX versus 3G. Quebec: MaravedisInc.Gemino, A., Mackay, N. & Reich, H. (2006). Executive decisions about website adoption in small and medium sizeenterprise. Journal of Information Technology Management, 17, (1), 34-49.Ginley, M. (2009). Current Factors Impacting Irish Fixed Wireless Access Broadband Operators: How will they Shapethe Segment over the coming Five Years? MSc Dissertation. National University of Ireland Galway, Departmentof Information Technology.Gimpel, G. (2009). Decision models and the adoption of wireless technology. 17th European Conference on InformationSystems, available at: http://www.ecis2009.it/papers/ecis2009-0167.pdfHaaker, T. & Vos, D. (2007). Customer preferences for bundled content services. Conference proceedings ofTelecommunication Techno-Economics, available at: http://research.asb.dk /ws/fbspretrieve/115/wp04.pdfHarker, D. & Akkeren, V. (2002). Mobile data technology for small business: needs, uses, and adoption. AustralasianJournal of Information Systems, 9, (2), 17-30.Henten, A. & Godoe, H. (2010). Demand side economies of scope in bundled communication services. Journal ofPolicy, Regulation and Strategy for Telecommunications, 12, (1), 26-38.International Telecommunication Union (ITU) (2012). E Series, for overall network operation, telephone services,service operation and human factors, available at: http://www.itu.int/itu-t/recommendations/index.aspx?ser=EJeanette, K., Akkeren, V. & Cavaye, M. (1999). Factors affecting entry-level internet technology adoption by smallbusiness in Australia: An empirical study. Journal of Systems and Information Technology, 3, (2), 33-48.Kazi, U. (2007). Small and medium business enterprises and the use and adoption of information and. communicationtechnology: A study of legal issues and legal perspectives. International Journal of Organizational Behavior, 12,(1), 144-160.Leisen, B. & Vance, C. (2001). Cross national assessment of service quality in the telecommunication industry:Evidence from the USA and Germany. Managing Service Quality, 11, (1), 307-317.Lynch, R. (2000). Corporate Strategy. New Delhi: Pearson 94

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Lawson, R., Alcock, C., Cooper, J. & Burgess, L. (2003). Factors affecting adoption of electronic commercetechnologies by SMEs: An Australian study. Journal of Small Business and Enterprise Development, 10, (3), 265-276.Miehlbradt, O. (1999). Information and communications services for micro and small enterprises in the Philippines: Asynthesis paper. Microenterprise Best Practices Project, available: http://www.usaid.gov/Manamperi, P. (2009). Critical Success Factors for the Growth of CDMA Market in Sri Lanka Small Industries: A CaseStudy based on Colombo District. MBA dissertation, Department of Management of Technology, University ofMoratuwa, Sri Lanka.Mathiyalakan, S. (2006). VoIP adoption: Issues and concerns. Communications of the IIMA, 6, (2), 19-24.Muthaiyah, S. (2004). Key success factors of 3rd generation mobile network services for M-commerce in Malaysia.American Journal of Applied Sciences, 1, (4), 261-265.Ohmae, K. (1983). The Mind of the Strategist. Harmondsworth: Penguin.Organization for Economic Co-operation and Development (OCED) (2006). The implications of WiMAX forcompetition and regulation, available at: http://www.oecd.org/dataoecd /32/7/36218739.pdfPelino, M., Brown, G. & Muhlhausen, R. (2007). Telecom bundles are required, but they are not enough to address theSMB market. Forester Research.Porter, M. (1985). Competitive Advantage. NewYork: The Free Press.Prem Vrat, G., Sardana, D. & Sahay, B. (1998). Productivity Management: A Systems Approach. New Delhi: NarosaPublishing House.Puskar, E. & Aanstoos, A. (2008). Process, promise, problems: Developing WiMAX as an international standard,available at: http://ts.nist.gov/Standards/upload/Process-Promise-Problems-Developing-WiMAX-as-an-International-Standard.pdfRysavy Research (2010). Transition to 4G: 3GPP broadband evolution to IMT advanced, available at:http://www.4gamericas.org/documents/3G_Americas_RysavyResearch_HSPA-LTE_Advanced_FINALv1.pdf,accessed on 29th Sep 2010.Shaharudin, R., Yusof, M., Elias, S. & Mansor, W. (2009). Factors affecting customer satisfaction in after-sales serviceof Malaysian electronic business market. Canadian Academy of Oriental and Occidental Culture, 5, (6), 10-18.Sekaran, U. & Bougie, R. (2010). Research Methods for Business: A Skill Building Approach. New Delhi: John Wiley & Sons Inc.Vrechopoulos, P., Constantiou, D., Mylonopoulos, N. & Sideris, I. (2002). Critical success factors for acceleratingmobile commerce diffusion in Europe. Proceedings of the 15th Bled Electronic Commerce Conference, Bled,Slovenia.WiMAX FORUM (2004a). The business case for fixed broadband wireless access based on WiMAX technology and theIEEE 802.16 standard, available at: http://www.wimaxforum.org /technology/downloads/WiMAX-The_Business_Case-Rev3.pdf. accessed on 25th Nov 2010.WiMAX FORUM (2004b). Regulatory position and goals of the WiMAX FORUM, available at:http://www.wimaxforum.org/technology/downloads/WiMAX_Forum_Regulatory_Whitepaper_v08092004.pdf.accessed on 25th Nov 2010.WiMAX FORUM (2010). Industry research report, available at: http://www.wimaxforum.org/ accessed on 25th Nov2010.Wolf, S. (2001). Determinants and impact of ICT use for African SMEs: Implications for rural South Africa. ConferenceProceedings of Trade and Industrial Police Strategies (TIPS), Misty Hills, Muldersdrift. 95

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana Appendix. QuestionnairesQuestionnaire for Small Industries1. Name of the Enterprise:2. No of employees:3. Type of business you are in:a) Manufacturing b) Mining & Quarrying c) Services.4. Respondent: a) Owner b) Manager5. Are you currently using WiMAX technology?a) Yes b) No How long ……………Please tick appropriate answer according to following tableQuestions1.1.1I am expecting a reduction in telecom spending by subscribing all my needs from a single service provider.□□□□□1.1.2I like to purchase all my telecom service from a single provider because it makes one party accountable.□□□□□1.1.3It is convenient for me to purchase all my telecom services from a single service provider.1.1.4I prefer receiving a single bill for all my telecom services.2.1.1Are you currently using voice service? If Yes, tick as “Strongly Agree”. If No, ask whether they will purchase voice service (i) within next 6 months (ii) within next 6 to 12 months (iii) within next 12 to 18 months and map as follows. Within next 6 months ←→ “Agree”, Within next 6 to 12 months ←→ “Not Sure”, Within next 12 to 18 months ←→ “Disagree”, More than 18 months or never going to purchase ←→ “Strongly Disagree”2.2.1Are you using facsimile service currently? If Yes, tick as “Strongly Agree”. If No, ask whether they intend to use this service in the future and follow the similar procedure as question number “2.1.1”. 96

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Questions2.3.1Are you using Internet mail service currently? If Yes, tick as “Strongly Agree”. If No, ask whether they intend to purchase this service in the future and follow the similar procedure as question number “2.1.1”.2.4.1Are you using Internet Broadband service currently? If Yes, tick as “Strongly Agree”. If No, ask whether they intend to purchase this service in the future and follow the similar procedure as question number “2.1.1”.3.1.1By having these types of telecom services will enhance competitiveness of my organization.3.1.2By having these types of telecom services will improve the relationship with our customers.3.1.3By having these types of telecom services will enhance the credibility of my organization.3.1.4These types of telecom services will help my organization to reach new customers.3.2.1These types of telecom services will enable us to access new information.3.2.2These types of telecom services will enable us to access new knowledge required for improving my business.3.3.1These types of telecom services will reduce our operating cost such as transport cost.3.3.2These types of telecom services will enhance my organization’s productivity.4.1.1Initial connection charge is a big concern for adopting this service.4.1.2I intend to relocate this service frequently and then relocation charge will be a concern for me.4.2.1Monthly fixed rental too is a big concern for adopting this service.4.2.2Monthly usage charges too are a big concern for adopting this service.5.1.1I prefer operator is using new equipment for the installation of the service at my premises.5.1.2The physical appearance of the people coming for the installation is a concern for me. 97

Sarath Wimala Surendra Bandara Dasanayaka, Govini Thanthirige Don Methsiri Kumara and Guru Datt Sardana Questions5.1.3I want my service to work first time without any error, after the installation.5.1.4I want my service to be up and running within few days of purchase and any delay will not be tolerable.5.2.1I expect my telecom services to be available whenever I intend to use it.5.2.2Ability to getting through to the other person is very important when a call is made even in the busy hours.5.2.3Voice clarity is very important and even a small degradation is not tolerated.5.2.4The consistent download/upload speed is a big concern for me when Broadband is used.5.3.1I expect a prompt service whenever I call operator’s call center.5.3.2I expect the people who answer my calls to be courteous throughout the conversion.5.4.1I expect a prompt response whenever I complain about a service outage.5.4.2The physical appearance of the people coming for the service maintenance is a concern for me.5.4.3I cannot tolerate lengthy service outages and therefore my service breakdowns should be rectifies within few hours.5.5.1Data integrity is a major concern when transferring data through the Internet.5.5.2I expect operator to prevent unauthorized access to my telecom service.5.5.3Adequate lightning protection should be installed when commissioning the services.6.1.1The ICT solution provided should be clear and understandable.6.1.2The ICT solution and its features should be easier to be operated.6.1.3Even a person with less technical skills should be able to master the operation of ICT solution without much effort.6.1.4I need to use this service at different places and if the solution can be carried with me it will give me added convenience. 98

Key Success Factors for Promoting Wireless Interoperability for Microwave Access (Wimax) Technology in Sri Lankan Small Industry, a Case Study Based Oncolombo Divisional Secretariat Area Questions7.1.1The advertisements and perception in the market will motivate my business to adopt this service.Questionnaire for Operators1). What is your opinion about the WiMAX (both fixed and mobile) technology?2). What are the services as you think can be deployed for small business customers overWiMAX?3). What would be the success factors for positioning WiMAX technology for smallbusinesses?4). What are the competing technologies for WiMAX and what would be their respective effecton WiMAX?5). What would be the bottlenecks or hurdles for deploying successful WiMAX services?6). Do you have a clear mandate from TRC to bundle services such as Voice over IP?7). How critical will be the vendor support for successful deployment of these services?8). What is the support you expect form regulator and the government for successfullydeploying WiMAX technology? Questionnaire for the Regulator1). What is your opinion about the WiMAX (both fixed and mobile) technology?2). What is the position of TRC regarding the WiMAX technology?3). Do you promote fixed or mobile WiMAX technology?4). Do you think Sri Lanka has sufficient spectrum to deploy WiMAX technology across theoperators?5). What is your position on delivering multiple services over single WiMAX connection?6). What would be the bottlenecks or hurdles for deploying successful WiMAX services in SriLanka? 99

Euro Asia Journal of Management Issue 41, Vol. 22, No.1/2, December 2012, pp. 101-116 EXPLORING AN INTEGRAL FRAMEWORK ON CONTINUING PROFESSIONAL EDUCATION ZENON ARTHUR SILORAN UDANI1 and DELIA SILORAN UDANI2 ABSTRACT Continuing professional education (CPE) focuses on both professional andpersonal development. Employees need technical expertise and ethical excellenceto progress. In this regard, professional associations serve as a channel forrealizing CPE. These associations have the potential role of adding value toprofessionals through skill building activities and enhancing personal virtuesthrough the ethical values they habitually transmit through various programs. Thisstudy proposes an integral framework on CPE for professional associations.Through this framework, the study identifies association initiatives that contributeto value-adding and virtue-enhancing human resource development.Keywords: Ethics, expertise, character, continuing professional education, integralframework, professional associations1Department of Management & Marketing, Faculty of Business Administration, University of Macau, Macau SAR,China. Email: zudani@umac.mo2Executive Director, PAREF Woodrose School, the Philippines

Zenon Arthur Siloran Udani and Delia Siloran Udani INTRODUCTIONContinuing professional education is an enduring process. It is actively pursued as a personalgoal and initiative, and a common good shared by members of an organization or professionalassociation. Professional associations exist ‘to advance and protect the interests of a professionand to offer services to its members’ (Werner & DeSimone, 2009). These associations promotecontinuing professional education ‘by sponsoring conferences, meetings, and workshops fortheir members…. One of the primary benefits of these events is the opportunity to meet andshare experiences with other professionals’ (Werner & DeSimone, 2009). By advocating aholistic continuing education, professional associations contribute to forming well-roundedindividuals and effective employees.Continuing professional education or continuing professional development is ‘thesystematic maintenance and improvement of knowledge, skills and competence, andenhancement of learning, undertaken by a person throughout his or her working life’ (Guest,2007). In addition, ‘planned and structured continuing professional development is vital forsurvival and prosperity in an increasingly litigious society, where professional ethics and codesof conduct are firmly, and rightly, in the spotlight and where the professions themselves mustnever lose sight of the fact that their prime purpose is to act for the public good’ (Guest, 2007).In order to foster the public good, continuing professional education programs and activities ofprofessional associations must exhort their members to act ethically and acquire good moralcharacter.Continuing professional education must be oriented towards genuine peopledevelopment – understood as ‘getting the right values into their hearts, getting the right skillsinto their hands, and placing the right ideas into their minds’ (Estanislao, 1995). Carballo (1991)refers to genuine people development as instilling both the ‘right work habits’ and a ‘unified setof moral principles’ among people. He asserts ‘that good work habits or competence alone donot distinguish a true professional. These must, above all, be accompanied and perfected bygenuine moral values and virtues, among them: respect for the dignity and rights of every person,sincere and selfless spirit of service to others, responsible dominion over material things, respectfor legitimate authority and for the dignity of human sexuality, love for the truth, love of God’(Carballo, 1991). Guided by these principles, continuing professional education assumes a moreintegral approach that advances both technical and ethical competence among professionals. 102

Exploring an Integral Framework on Continuing Professional Education AN INTEGRAL FRAMEWORK FOR PEOPLE DEVELOPMENTEducation etymologically suggests more than just transmitting information from thetrainer/teacher to the students (Bellah et al., 1992). Besides instruction, education also connotesdrawing out the best in people. Forbes (1999) asserts: ‘Education enables us not only to gainknowledge but also to develop sound character, to discover our God-given talents, to leadhonorable lives, to become truly good parents, neighbors and citizens’.While business and the workplace highly regard technical competence as a requisite toeffective performance, authors also assert the importance of integrity or character excellence(Estanislao 1995; Paine 1994; Kouzes & Posner 1993; Covey 1992). Recent cases of businessfiascos also highlight the need for expertise to be anchored on a solid ethical foundation. Thetechnical thrust of continuing professional education needs to be balanced by its ethical andwhole-person dimension. Professional development must be pursued with ethical and characterdevelopment in mind.Competence in the context of this paper is understood as the technical knowledge, skillsand expertise pertinent to a given profession which translates into effective work performance.Character, on the other hand, refers to the ‘human’ side of the professional – his moral values,attitudes and virtues which are externalized in virtuous behavior.Updating, Competence-building, and Performance-enhancementOn the competence dimension of our continuing professional education framework (see Figure1), updating concerns the technical aspect of a profession. Professionals update their knowledgeon developments, current trends, and best practices in their field. Updating ‘provides practicingprofessionals with a level of knowledge comparable to those professionals graduating fromprofessional schools. In other words, it closes the gap created by changes in technology, science,and skills between these two generations of professionals’ (Nasseh 1996). Professionalassociations update their members through various channels including publications, institutionalwebsites, workshops, conferences and annual meetings. 103

Zenon Arthur Siloran Udani and Delia Siloran Udani FIGURE 1:Continuing Professional Education FrameworkETHICS & CHARACTER DEVELOPMENT ➯INFORMATION (Awareness of Ethical values)➯FORMATION (Internalization & Commitment to virtue)➯TRANSFORMATION (Externalization of core values and virtues through personal behavior )COMPETENCE * EXPERTISEPERFORMANCE- ENHANCEMENTThe IDEAL spot: Continuing professional education that enhances performance & develops ethical characters ⇧COMPETENCE- BUILDING⇧UPDATINGThe MINIMUMspot: Continuing professional education that updates technical knowledge & informs people of core ethical valuesUpdates prepare professionals for competence-building. Swanson and Holton (2009)define competence as ‘displayed behavior within a specialized domain in the form ofconsistently demonstrated actions of an individual which are both minimally efficient in theirexecution and effective in their results.’ Competence-building enables employees to do theminimum requirements of their job and achieve the expected results. And as job requirementschange given the dynamics of the market, professionals need to identify and refine continuallytheir key areas of improvement in order to be more productive and effective in their jobs. Athorough training needs analysis of members of a professional association would be expedient indesigning and developing effective professional education programs. 104

Exploring an Integral Framework on Continuing Professional Education Continuing professional education programs that successfully transfer learning helpassociation members to enhance their work performance. Thus, genuinely effective competence-building professional education programs result into actual enhancement of job performance.The performance-enhancement stage is anchored on ‘the act of performing a job efficiently,skillfully, and completely’ (Nasseh 1996). In this regard, best job practices have to be sustainedand become habitual in order to generate desired performance levels and outputs. Regularperformance appraisals can capture employee improvements due to continuing professionaleducation.While most organizations afford due importance to the knowledge and skills of theiremployees, these organizations have yet to harness effectively the values and attitudes of theirpeople. More attention could be given to ethical and character development in order to maketheir core values functional. Crucial to the employees’ ethical and character development is thesupport and exemplary behavior of top management. Employees spend at least one-third of theirdaily work life in the company. And the quality of executive thought, word and action has asignificant bearing on their behavior.COMPETENCE & CHARACTER, ETHICS & EXPERTISECore ValuesIn harnessing ethical and character dimension of continuing professional education, the corevalues adopted by professional associations can be the starting point. These values serve as thekey result areas of personal and professional development of association members. Posner et al.(1985) define values as ‘deep seated, pervasive standards that influence almost every aspect ofour lives: our moral judgements, our responses to others, our commitments to personal andorganizational goals.’ Core values indicate the behaviors and actions that are propitious toachieving the organizational vision and mission. They define the type of culture an organizationaspires to nurture. Likewise, they suggest the excellent habits which people should internalizeand eventually externalize in their personal behavior. In this regard, Leung et al. (2006) cite thequalities of excellent professionals, as follow:●Courage to do what is right●Maintaining one’s own credibility and that of the profession●Maintaining confidentiality●Autonomy●Ability to consider broader social and sustainability issues●Exercising due professional care●Maintaining adequate professional standards and competence●Objectivity●Integrity 105

Zenon Arthur Siloran Udani and Delia Siloran Udani  ●Respecting the rights of stakeholders with informed consent  ●Respect for the professions  ●Being an advocate of professional ethics  ●Advancing the profession’s interest e.g. quality of the ‘brand’  Argandoña (2003) recommends a six-step procedure in promoting values inorganizations, namely:  ●Identify the currently existing values  ●Identify the values that are needed  ●Communication, institutionalization and commitment to the values  ●Aligning values and practices  ●Redesigning the human resources policy  ●Reviewing the process  Espousing the right values for a professional association and effectively managing theprocess of values formation and inculcation are crucial in setting ethics as second-nature and away of life among members. Moreover, Posner et al. (1985) affirm that ‘strong shared valuesprovide individuals with a sense of success and fulfillment, a healthy (less cynical) assessmentof the values and ethics of their colleagues, subordinates, and bosses, and a greater regard fororganizational objectives and significant organizational constituents.’Information, Formation and TransformationCore values serve as the foundation for the information stage of our continuing professionaleducation framework (see Figure 1). Information involves expounding on the core values of theassociation, ensuring that they are understood and shared by everyone. This also entailsintegrating the values into the human resource development programs of professionalassociations. Thus, members realize the relevance and prominence of the core values in theirprofessional field. Likewise, their personal value system is affirmed, enabling them to behavemore ethically. Argandoña (2003) affirms: ‘The process of fostering values within peoplerequires, from the rational viewpoint, an exercise in information (knowledge about the values)and an exercise in education (convincing of the need to exercise and strengthen certainvalues…).’  Values or ethical formation programs begin with the intent of making people awareabout the core values an organization espouses. Goodpaster (1989) refers to this essential task asorienting wherein a certain moral assessment of the corporate environment is made.  On the merits of shared values, Deal and Kennedy (1988) assert: ‘If employees knowwhat their company stands for, if they know what standards they are to uphold, then they aremuch more likely to make decisions that will support those standards. They are also more likelyto feel as if they are an important part of the organization. They are motivated because life inthe company has meaning for them.’ 106

Exploring an Integral Framework on Continuing Professional Education The next stage, formation, implies the personal assimilation and ownership of the corevalues. The more palpable a professional association’s commitment is to its espoused values andcode of ethics, the greater interest it would have in molding the attitudes and behaviors of itsmembers. The main thrust of continuing professional education initiatives at this stage is to helppeople internalize and commit themselves to the personal demands of the core values.Berkowitz (1995) highlights four broad guidelines in the internalization of ethicalvalues: ‘They must be made explicit, must be endorsed by the authorities …, must be modeledby the adults …, and must be enforced.’ These guidelines ensure the tension needed insustaining values awareness.Eliciting commitment to ethical values is what Goodpaster (1989) refers to asinstitutionalization. ‘How can these values be made part of the operating consciousness of thecompany? How can they gain the attention and the allegiance of middle management and otheremployees?’ Institutionalization can be effectively carried out through the following: ‘decisiveactions, a statement of standards with regular audits, and appropriate incentives.’When core values and attitudes are imbibed by people in a habitual and stable manner,the stage of transformation sets in. Aided by the right values, positive attitudes and virtues,professionals are better disposed to making judicious moral decisions which affect their personaland professional life (Alzola, 2008). A firmer commitment and a more positive attitude towardvirtuous behavior enable people to live more ethically. Transformation is about making personalbehavior consistent with cherished beliefs. Professional associations that recognize and rewardthe exemplary behavior of people in their field encourage such transformation. ‘Recognizingpeople for their consistency with organizational values is one way to tap the well-spring ofintrinsic motivation’ (Posner et al., 1985).FRAMEWORK DYNAMICSStage I: Information—UpdatingInformation refers broadly to the transmission of corporate values and ethical codes of aprofessional association. Updating, on the other hand, refers to the dissemination of profession-related know-how, emerging trends and developments in a given field. The general tendency ofcontinuing professional education providers is a fragmented kind of education, one that leansheavily on the technical side and has little regard for the moral development of the people. Theyveer away from the integrative goal of education (Bellah et al, 1992). They treat technicalknowledge and character enhancement or development as two separate domains that havenothing to do with each other. Hence, professional associations have relegated themselves toconcerns of transmitting knowledge and skills.Certainly the prevailing phenomenon observed in professional schools is at variancewith the contention that ‘all educational and formative work’ of the schools aims at no less than 107

Zenon Arthur Siloran Udani and Delia Siloran Udani influencing ‘the student's whole personality’ (Brezinka, 1994). Information and updating inprofessional associations usually happen during monthly, quarterly or yearly meetings. On suchoccasions, associations can strengthen their bid for character and ethical development amongmembers by featuring best practices or critical incidents that demonstrate the exemplary practiceof core values. Association websites can also host video blogs featuring the core value of themonth or quarter.On a related note, Posner et al. (1985) explains: ‘The development of the rightemployee skills can be the difference between excellence and mediocrity. Corporate values canprovide the needed guidance in selecting curricula and faculty and designing training events.’Stage II: Formation--Competence-BuildingThe formation and competence-building stage, which follows information and updating, refersto values and attitude formation and skill building programs for members of a professionalassociation. In this regard, the continuing professional education provider focuses on enhancingthe ethical values and attitudes of people and improving their work competencies as well. Thismay be evident in training programs which focus on both skills relevant to the profession andcore values articulated in the code of ethics of the association. At this level, the trainer helps andempowers people to make educated choices in professional life. To be effective, however, thecontinuing professional education provider should teach the criteria or standards within thecontext of the professional experience. Otherwise, they become decontextualized or irrelevant.Continuing professional education providers can transmit ethical values andprofessional competence by being role models. Character and competence are both taught andcaught. Intellectual honesty and professionalism are values which people can learn through theexample of their mentors. Moreover, by training people to be responsible in their profession,continuing professional education providers are sharing in the task of helping them to becomeproductive and respectable citizens in civil society.Stage III: Transformation--Performance-EnhancementThe last phase involves transformation and performance-enhancement. At this level, continuingprofessional education programs and initiatives are intended to effect positive change in thepersonal behavior and work performance of people. According to Harned (1999),transformation consists of enabling people to pursue ‘higher causes.’ Both continuingprofessional education providers and students must learn how to look beyond themselves andpursue their work in service of others. Doing so, they multiply the possibilities of learning andgrowing professionally and personally. Professional associations and continuing professionaleducation providers must also look into how they can positively influence the decision-makingpatterns and lifelong goals of the people they are committed to train and form well.To move from one stage to the next, the key factor is commitment to the ideals ofhuman resource development espoused by the professional associations. Their commitment tothe values of their code of ethics would be useful in this regard (Stevens, 2008). While the 108

Exploring an Integral Framework on Continuing Professional Education framework lays out a sequential match in the process of both character and competencedevelopment, this by no means excludes the possibility of ethical behavior being demonstratedat the updating or competence building stage. The framework is dynamic and attuned to theunique personal and professional development of individuals.Our framework underscores the importance of commitment to ethical values anddeveloping exemplary character. While skills and knowledge are needed for upgrading expertiseand professionalism, values – especially the ethical or moral values – have to be fostered byprofessional associations for the integral development of members. No genuine professionaldevelopment can take place without the corresponding personal development. In effect, goodpersons have better chances of becoming better professionals.Ethical formation empowers people to be more productive in the enterprise. Driscoll etal. affirm: ‘Ethics provides employees at all levels with the leadership skills they need asorganizations require autonomous decision making from them….’ The authors add: ‘Training inethics provides employees with a deeper sense of moral awareness and gives them tools to makeintelligent ethical business decisions. This training is needed more than ever before when moraleducation at home, in school, or in religious institutions is lacking’ (Driscoll et al., 1995).PRACTICES OF PROFESSIONAL ASSOCIATIONSWe examined a few professional associations to see how elements of our continuingprofessional education framework are practiced through their human resource developmentprograms. These associations are Professions Australia, the Management Association of thePhilippines, the Association of Chartered Certified Accountants and the Society for HumanResource Management.Ethics and Professions AustraliaProfessions Australia (PA) is an association of professional associations in Australia. Itconsiders itself as ‘a champion for the professions in promoting professionalism and ethics forthe benefit of the community’ (Leung et al., 2006). A study of Leung et al. (2006) explored theethical threats faced by members of various professional associations under ProfessionsAustralia. Table 1 gives a summary of that study. 109

Zenon Arthur Siloran Udani and Delia Siloran Udani TABLE 1:Categories of Ethical Threats and Examples Via Professional AssociationsTHREATSEXAMPLESPROFESSIONSSelf-interestInadequate fees charged Influence of commercial parties Promoting discount buying Accounting Engineering Radiography, Pharmacy Pharmacy, AudiologySelf-reviewReviewing application where there is direct interest Self-review of professional education standards or programs attendedTown Planning Pharmacy, AccountingAdvocacyAdvocate for peers within company Protecting the wrong advice when given to patients Influence of media and advertising Advocate of price rather than quality Advocate to bias research findingsLegal Practice, Computing Health Pharmacy Engineering DentalFamiliarityPrivacy concerns where one has the knowledge of conditions which might compromise quality of service Tenders involving related people Pharmacy Town Planning, AccountingIntimidationPersonality of senior executives who bully others Physical intimidation Employee confidentiality contracts to prevent from speaking outAccounting Pharmacy, other health professions Engineering Source: Leung et al. 2006Leung et al. (2006) cited among the causes of the ethical threats as ‘failure to recognisethe ethical dimensions of situations’ and ‘lack of professional education and knowledge’. Thefocus group discussions they conducted to produce the study also suggested safeguards againstthe threats. Among these are the following:●Continuing Professional Development programs●Ethics education and development initiatives●Promotion of an understanding between ethics and standards amongst professionals●Enforcement of the code of conduct●Mentoring support, especially for young professionalsThese proposed measures substantiate the case for continuing professional educationinitiatives that generate greater ethical awareness and commitment among members ofprofessional associations. They also advocate the development of an ethical character among 110

Exploring an Integral Framework on Continuing Professional Education professionals through the support of competent mentors and the guidance derived from codes ofprofessional conduct. In broad terms, these measures support the ethical and characterdevelopment dimension of our integral framework for continuing professional education,especially at the information stage. Moreover, if mentoring support is consistently given toprofessionals who, in turn, diligently practice what they learn, formation and personaltransformation may also be achieved.Werner and DeSimone (2009) state that ‘another way professional associations try tokeep their members current is by publishing journals, magazines, and newsletters thatcommunicate ideas and practices in the field.’ The work of Leung et al. (2006) done forProfessions Australia is a good example of an initiative wherein updating, ethical informationand formation are conducted. Leung et al. (2006) also recommend the development of an ethicseducation framework to ensure:●Professional members understand the nature and expectations of a profession,including the public interest and other professional qualities●Appropriate knowledge and skills are learned to equip professional members inmanaging ethical threats●A system of continuing education and training be set in place to foster ethical judgmentand behavior●Member associations be provided with practical recommendations of institutionalstrategies and structural issues●A joint effort to enhance the promoting and maintaining ethical behaviour beundertakenIn fulfilling the objectives above, our continuing professional education frameworkserves as a conceptual map for identifying specific initiatives that uphold competence/expertiseand ethical/character development among professionals. The case of Professions Australiaaffirms need to integrate ethical and character development into continuing professionaldevelopment initiatives.The Management Association of the Philippines (MAP)Outstanding organizations rely on a competent and trustworthy top management. Over the past60 years, the MAP has served as a professional association for top executives, public officialsand management educators. MAP plays as a support group and sounding board for topexecutives from both local and multinational companies in the Philippines. MAP has currently749 members.Evident in MAP’s mission is its drive toward professional development. MAP’smission is to promote management excellence through:• sharing of best management practices• benchmarking with our counterpart organization in other countries• networking with stakeholders related to business 111

Zenon Arthur Siloran Udani and Delia Siloran Udani • educational activities that enhance the knowledge, skills and values of managementpractitioners and educators nationwide• training and development programs that produce professional managers and• advocacy for reforms that help shape a brighter future for the Philippines. (MAP, 2011)Sharing of best practices in the management profession contribute to both the updatingand information dimensions (Stage I) of the CPE framework. MAP’s 6th International CEOConference in 2007 is good example for Stage I. The Conference featured top executives ofselected multinational companies in Asia such as Western Union, HSBC, Lenovo, and FujiXerox who talked about various business issues and management topics. The Conference‘continues to be a premier venue for bringing people from various fields together to share theirinsights and experiences in exploring innovative strategies for value maximization in theincreasingly complex and uncertain global arena’ (MAP 2007 Annual Report). Updating alsotakes place in MAP’s General Membership Meetings and some of its committee meetings suchas the Management Development Committee where guests are invited to share theirmanagement insights.MAP’s educational activities that improve knowledge, skills and values potentiallycontribute to competence-building and formation (Stage II). These activities were carried outthrough the MAP CEO Academy which ‘serves as the umbrella brand for all learning sessionsfor members’ (MAP 2007 Annual Report). In 2007, the Academy had 10 forums covering topicssuch as ‘Leader as Coach and Mentor’, ‘Leader by Choice’, and ‘Creating Excellence inStrategic Management’.Conducting training and development programs that result to better professionalmanagers support transformation and performance-enhancement (Stage III). Ethical leadershipand management is a field where MAP should invest more resources. Thus, its thrust for 2011 isnurturing a culture of integrity among its members (MAP, 2011). ‘MAP calls on its members tosteadfastly adhere to the highest ethical standards, good governance principles and managementexcellence, while courageously confronting the growing complexity of managing businesses inan ever challenging environment’ (MAP, 2011).MAP’s activities and programs are heavy on the technical competence or expertise side.Clearly it values management excellence. While its core values and the correspondingprofessional attitudes may be explicitly promoted in its activities, more transformationalinitiatives can be included in their management development programs.The Association of Chartered Certified Accountants (ACCA)The ACCA is the worldwide association of professional accountants with more than 145,000members and over 420,000 students. It offers ‘business-relevant, first-choice qualifications topeople of application, ability and ambition around the world who seek a rewarding career inaccountancy, finance and management’ (ACCA, 2011). The Association’s mission is:●to provide opportunity and access to people of ability around the world and to supportour members throughout their careers in accounting, business and finance 112

Exploring an Integral Framework on Continuing Professional Education ●to achieve and promote the highest professional, ethical and governance standards●to advance the public interest●to be a global leader in the profession. (ACCA, 2011)Its core values are opportunity, diversity, innovation accountability and integrity.ACCA’s vision for professional accountants is captured best in the words of one of itsmembers, Ms. Patty Hu, Financial Controller of CitiInsurance Life Insurance Co. Limited(China): ‘A modern finance professional must have two main qualities: integrity andprofessionalism. We must work towards rebuilding the profession's reputation and instill freshconfidence in the public with respect to the integrity of accountants’.ACCA’s annual conferences serve as both updating and information venues formembers (Stage I). While its technical seminars and workshops potentially contribute tocompetence-building and formation (Stage II). Examples of workshops initiated by the ACCAare the Hong Kong Financial Reporting Standards and Hong Kong Accounting StandardsWorkshops. Such workshops focus more heavily and explicitly on the expertise side than theethics. It is presumed that adhering to professional standards necessarily include the ethicalnorms of the field.ACCA also accredits learning providers that have a reputable track record ofconducting classroom-based training.Society for Human Resource Management (SHRM)The Society for Human Resource Management (SHRM) is the global association of HRMprofessionals with more than 250,000 members in over 140 countries. Its mission is to:●Build and sustain partnerships with human resource professionals, media, governments,non-governmental organizations, businesses and academic institutions to addresspeople management challenges that influence the effectiveness and sustainability oftheir organizations and communities.●Provide a community for human resource professionals, media, governments, non-governmental organizations, businesses and academic institutions to share expertiseand create innovative solutions on people management issues.●Proactively provide thought leadership, education and research to human resourceprofessionals, media, governments, non-governmental organizations, businesses andacademic institutions.●Serve as an advocate to ensure that policy makers, law makers and regulators areaware of key people concerns facing organizations and the human resource profession.(SHRM, 2011)Core principles, like sound corporate ethical codes, can be instrumental in producingdesired ethical behavior (Stevens, 2008). SHRM’s Code of Ethical and Professional Standardsincludes the core principle of professional responsibility which states: ‘As HR professionals, weare responsible for adding value to the organizations we serve and contributing to the ethical 113

Zenon Arthur Siloran Udani and Delia Siloran Udani success of those organizations. We accept professional responsibility for our individualdecisions and actions. We are also advocates for the profession by engaging in activities thatenhance its credibility and value’ (SHRM, 2011a). This asserts the value of both ethics andexpertise in the professions. Professional responsibility is further reinforced by another coreprinciple, ethical leadership, which states: ‘HR professionals are expected to exhibit individualleadership as a role model for maintaining the highest standards of ethical conduct’ (SHRM,2011a). Concrete guidelines orient association members in practicing this core principle: (1) Beethical; act ethically in every professional interaction. (2) Question pending individual andgroup actions when necessary to ensure that decisions are ethical and are implemented in anethical manner. (3) Seek expert guidance if ever in doubt about the ethical propriety of asituation. (4) Through teaching and mentoring, champion the development of others as ethicalleaders in the profession and in organizations (SHRM, 2011a). SHRM’s Code of Ethics, ifdiligently followed and implemented, can render a holistic continuing professional developmentto its members along the lines of our framework.SHRM’s conferences such as its Global Forum Conference, Annual SHRM Conference,and Strategy Conference are potential Stage I activities. Former SHRM’s CEO and presidentSue Meisinger’s farewell speech before hundreds of participants at the 2008 SHRM Conferencewent beyond informing people as she appealed to their professional and ethical attitudes. Shechallenged HR professionals to ‘add value and become essential to the organization’, to‘leverage their abilities’, and to ‘help shape the strategies of the business’.SHRM’s certification preparation programs, such as the SHRM Learning System,empower participants in knowledge, skills and attitudes towards professional growth. Theseprograms lead to Stage II’s formation-competence building.SHRM’s wide and deep range of Business Education courses, taught by world-classprofessionals, train students to be strategic HR leaders. These courses potentially contribute tothe performance-enhancement and transformation of people. Also included in SHRM’scommitment to excellence in CPE are its educational seminars. SHRM seminars‘are developed using the highest quality standards. A team of qualified experts, HRprofessionals and legal counsel review course content to ensure its accuracy and real-life application.’ (SHRM 2011b). These seminars potentially contribute to Stage III of the CPEframework.CONCLUSIONThe thrust to enhance members’ professional expertise and competence is evident in the CPEprograms and activities of the professional associations surveyed in this study. While ethics is atop priority in the statement of core values and codes of ethics of the associations, activities thatpromote ethical information, formation, and transformation seem more implicit than explicit in 114

Exploring an Integral Framework on Continuing Professional Education most of the programs. Professional associations should consider adopting ethical training as apermanent and prominent feature in their roster of CPE programs.Professional associations should communicate and articulate the core values andprecepts of their code of conduct through their CPE programs (Stevens, 2008). Their pursuit ofcompetence and performance enhancement among members must be steered by sound ethicalnorms. Studies cited by Stevens (2008) on the proactive use and discussion of corporate codesof ethics reveal a positive impact on the ethical behavior of employees. ‘Managers who lead bysetting clear standards and expecting the best from everyone including themselves are able tocreate ethical cultures…. Most employees are motivated to commit to higher principles and unitein a common cause’ (Stevens, 2008).The proposed CPE framework spurs professional associations to pursue both expertiseand ethics in their programs. Human resource development in these associations has to addressboth technical and ethical dimensions. Ethics must be integrated and embedded in technicalpursuits, eventually laying the ground for a stronger ethical culture in the associations. Anethical culture helps people to develop and acquire virtues, enabling them to work and liveethically as professionals.REFERENCESAlzola, M. (2008). Character and environment: The status of virtues in organizations. Journal of Business Ethics, 78,343-357.Argandoña, A. (2003). Fostering values in organizations. Journal of Business Ethics, 45, 15-28.Association of Chartered and Certified Accountants [ACCA] (2011). Our mission, values and ethics, available athttp://www.accaglobal.com/en/discover/about/mission.htmlBellah, R., Madsen, R., Tipton, S., Sullivan, W. & Swidler, A. (1992). The Good Society. New York: Vintage Books.Berkowitz, M. (1995). The Education of the Complete Moral Person. Aberdeen: Gordon Cook Foundation.Brezinka, W. (1994). Belief, Morals, Education. Aldershot: Ashgate Publishing Ltd.Carballo, R. (1991). Good ethics is good business. Economics & Society, Center for Research and Communication,Philippines, 2-6.Covey, S. (1992). Principle-Centered Leadership. New York: Fireside.Deal, T. & Kennedy, A. (1988). Corporate Cultures: The Rites and Rituals of Corporate Life. New York: PenguinBooks.Driscoll, D., Hoffman, W. & Petry, E. (1995). The Ethical Edge: Tales of Organizations that Have Faced Moral Crises.New York: MasterMedia Limited.Estanislao, J.P. (1995). Foundations for People Development. Metro Manila: Southeast Asian Science Foundation, Inc.Forbes, S. (1999). Training minds and heart: Principle-centered education reform. Imprimis, 28, (10), 1-5.Goodpaster, K. (1989). Ethical imperatives and corporate leadership. In Andrews, K.R. (ed.) Ethics in Practice:Managing the Moral Corporation. Cambridge, MA: Harvard Business School Press.Guest, G. (2007). CPD: What exactly is it? Why should I bother? And am I actually doing it already? available at:http://www.cpdinstitute.org/articles/2007/Reed_Article.pdfHarned, P.J. (1999). Leading the effort to teach character in schools. NASSP Bulletin, 83, (609), 25-32.Kouzes, J. & Posner, B. (1996). Seven lessons for leading the voyage to the future. In Hesselbein, F., Goldsmith, M. & Beckhard, R. (eds.) The Leader of the Future: New Visions, Strategies, and Practices for the Next Era. SanFrancisco, CA: Jossey-Bass. 115

Zenon Arthur Siloran Udani and Delia Siloran Udani Kouzes, J. & Posner, B. (1993). Credibility: How Leaders Gain and Lose It: Why People Demand It. San Francisco, CA:Jossey-Bass.Leung, P., Cooper, B., Dellaportas, S., Jackling, B. & Leslie, H. (2006). Ethics Education and Development for MemberAssociations of Professions Australia, Professions Australia/ Deakin University.Management Association of the Philippines (MAP) (2011). Management Association of the Philippines profile, availableat: http://www.map.com.ph/Nasseh, B. (1996). Continuing professional education models, available at:http://www.bsu.ed/classes/nasseh/bn100/profess.html.Paine, L. (1994). Managing for organizational integrity. Harvard Business Review, 72, (2), 106-117.Posner, B., Kouzes, J. & Schmidt, W. (1985). Shared values make a difference: An empirical test of corporate culture.Human Resource Management, 24, 293-309.Society for Human Resource Management (SHRM) (2011). SHRM's mission and history, available a:thttp://www.shrm.org/about/history/Pages/default.aspxSociety for Human Resource Management (SHRM) (2011a). SHRM code of ethics, available at:http://www.shrm.org/about/Pages/code-of-ethics.aspxSociety for Human Resource Management (SHRM) (2011b). About SHRM seminars, available at:http://www.shrm.org/Education/SEMINAR/Pages/default.aspxStevens, B. (2008). Corporate ethical codes: Effective instruments for influencing behavior. Journal of Business Ethics,78, 601-609.Swanson, R. & Holton, E. (2009). Foundations of Human Resource Development, 2nd edition. San Francisco, CA:Berrett-Koehler.Werner, J. & DeSimone, R. (2009). Human Resource Development, 5th edition. Mason, OH: Cengage Learning. 116

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