ISSN 0872-8496EURO ASIA JOURNAL OF MANAGEMENT 43 Vol. 24 No. 1/2DECEMBER 201443Vol. 24 No. 1/2The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military OrganizationsToward an Understanding of Marketing Strategies in Higher Education InstitutionsCustomer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM)At t i tudes toward Br ibery in Austra l ia : A Demographic Study

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 de Ciências do Trabalho e da Empresa, PortugalVirgínia Trigo, Instituto Superior de 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, Regent's University London, 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 de Ciências do Trabalho e da Empresa, PortugalEkkehard Kappler, University of Innsbruck, AustriaMartin Kenney, University of California at Davis, USAMário Murteira, Instituto Superior de 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 KongShuming Zhao, Nanjing University, ChinaNote: The views of articles may not be those of the Journal.

Vol. 24 No. 1/2, December 2014http://eajm.webnode.comCONTENTSIndexed in Ulrich’s Periodicals Directory andCabell’s Directory of Publishing Opportunities in Management1. The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regardingthe Impact on the Performance of Military Organizations ....................................................................... 3-22José Castro Pinto, ISCTE-Lisbon Institute University, Lisboa, PortugalNuh Altinsoy, ISCTE-Lisbon Institute University, Lisboa, PortugalNelson Santos António, ISCTE-Lisbon Institute University, Lisboa, Portugal2. Toward an Understanding of Marketing Strategies in Higher Education Institutions ......................... 23-35Wail Alhakimi, Marketing Department, Faculty of Administrative Sciences, Taiz University, YemenAayed Qasem, Marketing Department, Faculty of Administrative Sciences, Taiz University, Yemen3. Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note onCompanhia De Telecomunicações De Macau S.A.R.L. (CTM) ................................................................ 37-55Matthew Tingchi Liu, University of Macau, MacauZhu Zhenghao, Colin, International Business, Zhejiang Business Technology Institute, ChinaChang Kit Keng, University of Macau, Macau4. Attitudes toward Bribery inAustralia:ADemographic Study ....................................................... 57-91Teresa Hernandez, Florida International UniversityRobert W. McGee, Fayetteville State University



Euro Asia Journal of Management Issue 43, Vol. 24, No.1/2, December 2014, pp.3-22THE ORGANIZATIONAL ALIGNMENT-STRATEGY, STRUCTURE AND PROCESS: AN EMPIRICAL STUDY REGARDING THE IMPACT ON THE PERFORMANCE OF MILITARY ORGANIZATIONS JOSÉ CASTRO PINTO1NUH ALTINSOY2andNELSON SANTOS ANTÓNIO3ABSTRACT This study focuses on the organizational alignment in terms of strategy, structure, process and their impacts on organizational performance through the utilization of Miles and Snow typology. It attempts to prove that attaining a fit between the organization and its target strategy contributes toward a better performance. Additionally, it tests the equifinality concept which expresses the idea that an organization can perform well with a variety of strategies. Based on the contribution of previous works, concerning the Miles and Snow typology and performance, this study should be seen as a replication regarding that issue, but here applied to the military industry. The study provides empirical support to the configurationally equifinality approach and fits the concept to the military environment. It also provides an alternative way to explain performance in this 1 ISCTE-Lisbon Institute University . BRU-UNIDE, Av. Das Forças Armadas, 1649-026 Lisboa, Portugal.Email: castro.pinto@iscte.pt2 ISCTE-Lisbon Institute University.3 ISCTE-Lisbon Institute University. BRU-UNIDE, Av. Das Forças Armadas, 1649-026 Lisboa, Portugal.Email: nelson.antonio@iscte.pt

José Castro Pinto, Nuh Altinsoy and Nelson Santos António 4environment. To the best of our knowledge, no empirical studies exist where all these aspects were applied to military organizations. Keywords: Miles and Snow Typology (1978), Equifinality, Fit, Performance. INTRODUCTIONNowadays, given the strong competitive environment, the main assignment for top managers is to create a solid competitive advantage (Aggarwal et al., 2011). Thus, the role of strategy is crucial to keeping a sustainable competitive advantage, that allows a high performance to be achieved in the long run. Multiple theoretical and empirical works highlighted the importance of strategy formulation as a normal top management activity (Huy, 2012; Kunc & Morecroft, 2010). Based on these studies, many conceptual guidelines to implement a strategy were proposed. Two important issues, regarding these frameworks, acquire particular relevance: the environmental and internal analysis. The way to deal with the external and internal diagnostic, frames the strategy selection, where the development of the firm competencies is decided (Fiss, 2011). Based on strategy selection, some authors try to qualify those strategies, creating some organizational configurations. Organizational configurations are used for two primary purposes; the first one is to define and distinguish a group of organizations from another group and the other one is to use these classifications to predict other variables (Payne, 2001). Configurations are also considered by many an important tool to understanding the organizations (Sanchez & Marin, 2005). Thus, organizational configurations are sets of organizations that share a common profile along important characteristics such as strategy, structure, and decision processes. Some configurational studies only deal with the identification of sets of firms, but most of the research examines if there is a configurational effect on dependent variables (Ferguson & Ketchen, 1999). Organizational performance is often the dependent variable in strategy research, due to this fact, the relationship between configurations and performance has always been a research topic (Ferguson & Ketchen, 1999). There are four fundamental premises for the organizational configuration’s theory (Inamdar, 2007; Miller and Friesen, 1984). First, organizations can be seen as complex entities whose elements of strategy, structure and processes have a natural tendency towards combining into similar groups or configurations (Inamdar, 2007). Secondly, a relatively small number of these configurations include a large fraction of organizations (Inamdar, 2007). Thirdly, the small number of configurations exhibit some adaptment among structural, strategic and process variables from which can be developed typologies or taxonomies (Inamdar, 2007). Fourth, these configurations tend to be stable and there is a strong interaction and dependency between the strategy, structure and process variables. For that reason, moving from one type of configuration to another requires a lot of synchronization (Inamdar, 2007). In short, there is a small number of stable configurations for organizations and with the help of them, organizations achieve to fit

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 5with their internal characteristics, processes and their environmental situations (Miller & Friesen, 1986). Miles and Snow (1978) Typology In 1978, the American academics Miles and Snow developed their strategic choice typology and launched the configurational branch of business strategy. Their study brought together the Situationalist and the Universalist scholars (Hambrick, 2003). Miles and Snow (1978) claimed that four fundamental strategy types exist in any given business environment so that companies could do well in an industry in more than one way, but not in a multitude of ways (Hambrick, 2003). Thirty years since its initial publication, Miles and Snow’s Organizational Strategy, Structure, and Process has had an important effect on the fields of strategic management and organization theory (Hambrick, 2003). Scholars and consultants have relied heavily on Miles and Snow’s insights in their research and works (Hambrick, 2003). The main characteristics of the four archetypes (Prospector, Defender, Analyzer and Reactor) are as follows. The Prospector tries to explore, continuously, the opportunities of the global market, frequently testing new solutions as alternatives to emergent trends (Slater, Hult, and Olson, 2010). This pioneer behavior sometimes leads to dealing with efficiency problems. The Defender operates only in a few domains, in general characterized by stability. This behavior results in a stressful specialization and a permanent quest to increase the effectiveness of the operations (Slater et al., 2010). The Analyzer adopts a dual attitude (Slater et al., 2010). In turbulent domains, it pays close attention to the innovations developed by the prospectors, trying to imitate those they think have the most potential. In the domains characterized by stability, the main goal is to optimize the efficiency through several formulized procedures. The Reactor is characterized by the absence of consistency between the organizational and external variables, promoting a mediocre performance (Slater et al., 2006). The undertaken actions can fundamentally be understood as answers to market pressures. Adaptive Cycle Miles and Snow (1978: 21) argue that “the effectiveness of organizational adaptation hinges on the perception of environment and the decision of how to cope with it”. So they believe that this complex and dynamic process can be broken into three major problems which management must continually solve: entrepreneurial, engineering, and administrative. The entrepreneurial problem refers to the selection of a product or service and a target market or market segment. The engineering problem consists on developing an operational solution to deliver the services of the organization. This includes selection of a service delivery

José Castro Pinto, Nuh Altinsoy and Nelson Santos António 6method (i.e., technology) and alignment of information and communication linkages necessary for an effective operation. The administrative problem considers structures and processes to direct and monitor operations. The primary objective is to reduce uncertainty about organizational operations. However, the ideal organization has systems that ensure efficiency and reduce uncertainty while simultaneously allowing appropriate innovation (Brown & Iverson, 2004). Fit Concept and Equifinality Concept The central argument for this concept is that organizational elements (strategy, structure, processes and environment) that closely align will perform better than those that do not. So, the concept of fit is highly related with organizational performance in the strategic management literature (Venkatraman, 1989). Jauch, Osborn, Martin and Gluek (1981) argue that “the probability of organizational survival increases as the fit of environmental, contextual, and structural complexity increases” (1981, p.492). Equifinality is the state of achieving high performance through multiple different types of organizations (Gresov & Drazin, 1997). Equifinality thus implies that strategic choice is available to organization designers when creating organizations to achieve high performance. Shortfalls in the Literature In general, the empirical research provided support for Miles and Snow Typology (e.g., Doty, Glick & Huber,1993). It means that companies resembling the three viable types appear to be more effective than those more similar to reactor type. However, some empirical studies for the configurations–performance relationship have been mixed. Some researchers (e.g. Pleshko & Nickerson, 2008; Payne, 2006; Andrews et al., 2006) have found support for this concept. But others report no connection (e.g. Akingbola, 2006). This ambiguity has created concern about the appropriateness of future researches. As Ferguson and Ketchen (1999) explained in their research, it might have happened due to the lack of sufficient statistical power. For example, when setting at 0.05, only 8% of extant research was powerful enough to detect small effects, which is considered an essential level for social sciences. As an important sub component of statistical power, sample size is also problematic. This issue will be analyzed and the result will provide support to a configuration-performance relationship. Miles and Snow (1978) suggested that the three strategic types should all perform well, and should also all outperform Reactors. Hambrick (1983) points out that the original Miles and Snow (1978) model does not seek to predict which of the strategic types would be the highest in performance, or under what circumstances. In fact, “performance” had not been clearly defined (Desarbo et al., 2005). Nevertheless, it is clear that more research is needed on the topic of

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 7strategic type and performance. Following that need, this paper is focusing on strategic type - performance relationship. There is a discrepancy about the status of analyzers in past research. Some scholars considered it a temporary situation; where others considered it to be a permanent strategic typology. Due to this ambiguity in the literature, some researchers focused mostly on Defender and Prospector and disregard Analyzer types. But Miles and Snow (1978: 29) say that Analyzeris also a robust strategy like the other two and due to this fact the Analyzer is treated that way in this study. As Gimenez (2000) stated; Zahra and Pearce (1990) carried out a comprehensive study aiming to evaluate the research evidence for the Miles and Snow (1978) typology based on an analysis of 17 empirical studies. Most of the studies analyzed by Zahra and Pearce (1990) have concentrated on the entrepreneurial problem. They paid little attention to the other two dimensions, i.e., the administrative and the engineering. However, according to Miles and Snow (1978), the performance depends on alignment of each type of problem. As (Hambrick, 1983) stated that the reliance on a partial measure may be lead to an incorrect interpretation. In order to overcome this gap, this work has focused on entrepreneurial, engineering and administrative problems. As Desarbo et al. (2005) stated, despite the well-established nature of Miles and Snow’s (1978) framework, a number of researchers have commented on the need for further empirical validation and testing of its underlying assumptions (Conant et al., 1990; Shortell & Zajac, 1990). Such authors have stated that the original Miles and Snow research was limited in the number of industries. They did not attempt to prove the validity of their typology across other industry types. In order to overcome this shortfall, this paper is focused on a new organization type; the military. METHODOLOGYAs it was mentioned, several research studies have been made about the effects of organizational alignment, organizational configurations and performance since the publication of Miles and Snow typology (1978). The potential contribution of this study is to extend prior research by developing and testing “A Comprehensive Approach for Performance (CAP)” model in the military environment. In other words, based on the contribution of some above-mentioned authors concerning the Miles and Snow typology and performance, this study should be understood as a replication regarding that issue, but applied to military industry.

José Castro Pinto, Nuh Altinsoy and Nelson Santos António 8Population and Sampling Military organizations are divided into three levels; strategic, operational and tactical level. Tactical level military organizations have strict guidelines, procedures and processes to perform their tasks. Actually, most of their tasks are routine and common like training and exercises and they execute them in the strict chain of command. These organizations are units like divisions, brigades and battalions. In other words, they are in the force structure of the military hierarchy. That is why their environment is less dynamic. But the operational and especially the strategic military organizations deal more with plans, policy, doctrine, or concept development, experimentation and analysis in their areas like logistics, personnel, communication, command and control. For that reason, their environment is more dynamic and they are in the command structure of the military hierarchy. Actually, it is true to a certain degree that tactical military organizations are identical to each other and have a limited autonomy in choosing their strategy and budget. But when it comes to the operational and strategic level, they have high initiative level in choosing their strategy, their planning their budget, choosing their technology and using their resources. These military organizations do vary in their individual attributes as many firms within any industry. Maybe not as fast as civilians due to the hierarchy in the chain of command but they can create their own appropriate structure for their organizations, and also high degree of autonomy. Thus, in this research, strategic and operational military organizations which are considered separate entities and located in different countries have been chosen as the target population. Totally 62 relevant organizations were identified to represent the whole population for the research. Do these organizations compete with each other? Yes, they do compete, because there is always a performance/readiness evaluation mechanism in all military environments. Both individual and organizational performances are captured via this system. How does this system work? It varies from one country to another, but mainly, their performance in resource usage (as the total amount of money spent for defense is nine times more than that of spent for education or health). The manpower management or operational readiness are also assessed and evaluated. And evaluation ratings affect both individual and corporate status, popularity, prestige, promotions, rewards and even getting more money from the common fund or getting more investment in their compounds/campus. Choosing this target population is always a difficult task for two reasons: Firstly, the access to data is inherently very challenging. Even though a draft questionnaire is made and sent to people, it is really very difficult to convince people to fill it in due to the privacy issues. Secondly, a large number of organizations with similar attributes are needed for analytical purposes, otherwise it is impossible to make conclusions from this analysis. Sample size is an important factor to overcome the sample bias. Ferguson and Ketchen (1999) advised that the sample sizes should have an 80 percent chance of detecting small,

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 9medium, and large effects. Given the difficulties in obtaining the information, our goal for this study is to achieve, at least, a medium effect with four strategic groups at a level of p 0.05, and then sample size is expected to be at least 45. So in order to reach this number, the following steps were taken: The questionnaire was first pretested. Based on the feedback, some corrections were made to the questionnaire and later it was sent to all of 62 organizations electronically. In order to increase the response rate and to encourage them to fill out the questionnaire, each and every organization was contacted via telephone. Unfortunately, at the first attempt, there were only 26 respondents which is far below than the ideal number, 45. So, a second attempt was made and this time 20 more were obtained. The total number reached 46, which is good enough for the goal that had been set. All the results presented in this paper are based on this sample. In order to validate the obtained results from these two attempts, 10 organizations were selected randomly from the target sample and re-tested with the same questionnaire. The results obtained from the re-test showed a strong correlation with the initial results. Data Collection The data was obtained through a questionnaire, which was applied directly to the organizations’ top management team, comprising twelve questions. This questionnaire was adapted from Conant et al. (1990) and Pinto and Curto (2007). In the questionnaire, three kinds of dimensions were taken into account: dimensions associated with the adaptive cycle, dimension related to the specific environment and overall performance. The first six questions in the questionnaire are related to the adaptive cycle. Each question consists of four paragraphs. Each paragraph reflects the typical description of Miles and Snow’s (1978) archetypes. The proximity of organization fit for each archetype would be obtained through a different score given by the respondent for each paragraph, based on scale from 0 to 10. The respondent is aware that the sum of the points would be necessarily equal to ten. For example, if a respondent gives ten points to the first paragraph (means a perfect fit with that archetype) then he must give zero to the other three paragraphs. Other possible situations can occur (hybrid situation): if a respondent gives eight points to one paragraph (associated to an archetype), then he should distribute the other 2 points by the remaining gestalts. Thus, it is possible to identify what configurations better reflect the behavior of each organization and, simultaneously, to measure the distance between the nearest ideal type and the correspondent behavior. In addition to the six dimensions adapted from Conant et al. (1990), four structure- related variables and an environmental type variable which were adapted from Pinto and Curto (2007) are operationalized in the questionnaire. Structure-related variables are formalization, standardization, expertise and centralization. The performance measure has been a great challenge for this research, as this concept is still very immature in the military headquarters. For that reason, subjective data has been used. The performance indicator was assessed using a subjective self-reporting instrument used by

0José Castro Pinto, Nuh Altinsoy and Nelson Santos António 10Dess and Robinson (1984). These authors found that managers can provide evaluations of their organizations’ performance to others in their industry and these data can be highly correlated with objective data. In their study, they asked top managers to evaluate their organization, relative to the other organizations in their field with a five-point scale (Smith et al., 1989). Actually the same technique in this research was used with an eleven point scale with the following question: “Rate the extent to which your business unit has achieved the following outcomes during the last year (eleven-point scale, where 0 = low and 10 = high)”. Some authors like Shortell and Zajac (1990) argued that researchers should use self-typing data with archival data to obtain a reasonably complete description of organizations. In this study, however, only self-typing was used, because almost all the military archival information was classified. Hypotheses Development According to several research studies that have been carried out about the effects of organizational configurations and performance, four questions appear to be quite relevant. Hypotheses developed under the light of Miles and Snow (1978) linkage with performance is listed below: According to Miles and Snow (1978: 11), “… the alternative forms of adaptive behavior, which exist in the industries we have studied and which are probably in most other industries”. So the first hypothesis was formulated as follows: H1 = There is a resemblance between the organizations in the military environment and the selected organizational configuration pattern. Miles and Snow Miles and Snow (1978: 14), claimed that Prospector, Defender and Analyzerare considered viable configurations where the performance is optimized given the consistency among the adaptive cycle. However, the reactor type is characterized by persistent inconsistencies, which led to lower performance levels. Thus, the second hypothesis was formulated as follows: H2 = There is a performance difference among/between the viable configurations and the reactor type. However the viable configurations may be an effective competitor in its industry. According to Delery and Doty (1996: 808) “configurational theories incorporate the assumptions of equifinality by positing that multiple unique configurations of the relevant factors can result in maximal performance”. In this study, the three viable types are conceived as pure forms as proclaimed by Miles and Snow (1978: 14). Therefore, organizations that marginally resemble the respective ideal types are predicted to be less effective than organizations that closely resemble to them. Based on that approach, the third hypothesis was formulated: H3 = There is a positive correlation between overall organizational performance and total level of adjustment. This means that organizational performance is as high as its closeness to the respective ideal type.

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 11Miles and Snow (1978: 21) identified three major problems that are related with the effectiveness of an organization. Therefore, the last hypothesis was formulated: H4 = All the fit factors related with Miles and Snow (1978) adaptive cycle dimensions (entrepreneurial, engineering and administrative) and environment dimension have a significant impact on the organizational performance.RESULTS Based on the obtained sample (46 organizations), a cluster analysis was performed in order to capture the different organization profiles in accordance with the above-mentioned requirements.Clusters Various clustering techniques are available in SPSS like K-Means (quick cluster), Complete Linkage and Ward Method. All the techniques were used and they almost led to the same result. According with Hair et al. (1998) the correspondence and stability of the cluster solution between the nonhierarchical procedure (K-means) and hierarchical methods (Ward and Complete) confirms the result subject theoretical and practice acceptance. In addition, Punj and Steward (1983) and Payne (2001) defend that the nonhierarchical (K-Means), as an interactive procedure, is most robust than hierarchical methods. As it can be seen in the Table 1, four different groups were obtained via K-Means cluster analysis. The groups that are called 1, 2, 3 and 4 comprise respectively 12, 24, 6 and 4 members. TABLE 1: Number of cases in each cluster Cluster 1 12 Cluster 2 24 Cluster 3 6 Cluster 4 4 Valid 46 Missing 0 However, in order to evaluate the groups’ homogeneity, a discriminant analysis was performed based on the four groups found previously. The homogeneity of the groups was further cross-validated and strengthened based on the four groups found previously.

José Castro Pinto, Nuh Altinsoy and Nelson Santos António 12It was observed that the top management scores related to the last group indicates to the Reactor profile. Thus, as this profile does not configure any viable type, these four organizations were withdrawn from analysis after testing hypothesis 2. Another cluster analysis was performed excluding the Cluster-4 and, there was no change in the group’s membership. On the other hand, to demonstrate these findings, Table 2 presents the means of data indicators to show their similarities with the archetypes defined in the Miles and Snow (1978) typology. TABLE 2: Clusters membership Paragraph Questions Groups Mean Membership Question-1, 2 and 3: Entrepreneurial Dimensions-Product Market Domain, Success Posture and Monitoring the EnvironmentCluster-1 6.5 Analyzer Cluster-2 5.9 Defender Cluster-3 8.2 Prospector Question-4 and 6: Administrative Dimensions-Structure and PlanningCluster-1 5.8 Analyzer Cluster-2 7.6 Defender Cluster-3 7.6 Prospector Question-5: Engineering Dimension- Technological BreadthCluster-1 5.0 Analyzer Cluster-2 7.2 Defender Cluster-3 7.2 Prospector Question-7, 8, 9 and 10: Structural Dimensions: Formalization, Standardization, Specialization, CentralizationCluster-1 4.9 Analyzer Cluster-2 7.9 Defender Cluster-3 2 Prospector Questions-11: Environment that the organization operates: Environmental UncertaintyCluster-1 3.7 Analyzer Cluster-2 2 Defender Cluster-3 8.3 Prospector

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 13The Association between Miles and Snow Archetypes and their Performance Level Initially, the test whether there is a statistically significant performance difference among all types should be tested. For the testing purposes, Kruskall-Wallis test was used. As shown in Table 3, the significance value of the test is 0.004 which is smaller than p=0.05, we can reject the null hypothesis, which means that there is significant overall performance difference among groups. Notice that nonparametric tests were used to prevent any possible violations of parametric test assumptions. TABLE 3: Overall performance difference among groups Overall performance Chi-square 13.557 d.f. 3 Asymp. Sig 0.004 Kruskal-Wallis Test In order to strengthen the results obtained in the previous paragraph, we compare the types in pairs to check the performance difference. According to the results in Table 4, 5 and 6, the significance values are respectively 0.009, 0.002 and 0.004. So, they are smaller than p= 0.05, which means that “there is a significant performance difference between Reactor-Prospector, Reactor-Analyzer and Reactor-Defender archetypes. TABLE 4: Overall performance difference Reactor vs. Prospector Overall performance Mann-Whitney 0.000 Wilcoxon W 10.000 Z -2.623 Asymp. Sig (2-tailed) 0.009

José Castro Pinto, Nuh Altinsoy and Nelson Santos António 14TABLE 5: Overall performance difference Reactor vs. Analyzer Overall performance Mann-Whitney 0.000 Wilcoxon W 10.000 Z -3.024 Asymp. Sig (2-tailed) 0.002 TABLE 6: Overall performance difference Reactor vs. Defender Overall performance Mann-Whitney 6.000 Wilcoxon W 16.000 Z -2.843 Asymp. Sig (2-tailed) 0.004 The next step would be to check whether there is a performance difference among three viable types; Prospector, Analyzer and Defender. As shown in Table 7, the significance value of the test is 0.115 which is greater than p= 0.05, we cannot reject the null hypothesis, which means that there is no significant overall performance difference among the Prospector, Analyzer and Defender groups. TABLE 7: Overall performance difference among the viable types Overall performance Chi-square 4.322 d.f. 2 Asymp. Sig 0.115 Kruskal-Wallis Test So, the conclusion drawn from the above-mentioned statistics supports the pre-assumptions of this study. Of course, it has to be noted that each of the three groups are only approximation to its ideal type, not the pure form in itself. For that reason the organizations have

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 15to be divided into two groups, which show a high or low level of fit to their ideal type. As the mean value for “Average Fit Level” is 6.6, the groups are split accordingly. The first group has the fit level of 3, 4, 5 and 6. This group has a low level of fit. The second has the fit level of 7, 8, 9 and 10. This group has a high level of fit. Later, the Mann-Whitney test was applied. The first group has 24 member organizations whereas the second has 18 organizations. According to results in Table 8, the significance value is 0.000 and they are smaller than p = 0.05, which means that we can reject the null hypothesis. We can conclude that "there is a significant performance difference between these two groups.” This situation supports the Hypothesis 2 which claims that there is aperformance difference between organizations with a high level and low level of fit. TABLE 8: Overall performance difference between fit levels Overall performance Mann-Whitney 23.000 Wilcoxon W 618.000 Z -4.034 Asymp. Sig (2-tailed) 0.000 Also, Hypothesis 2 claims the homogeneity within the archetypes in the same group in terms of high performance level. As the significance value in Table 9 equals 0.474, there is no significant overall performance difference among Defender, Analyzer and Prospector groups with a high level of fit. This situation also supports Hypothesis-2. So, based on these findings, it can be said that there is empirical basis to support the principle of equifinality. TABLE 9: Overall performance difference among high fit level archetypes Overall performance Chi-square 0.513 d.f. 1 Asymp. Sig 0.474

José Castro Pinto, Nuh Altinsoy and Nelson Santos António 16The Positive Relationship between the Fit Level to Ideal Types and the Organizational Performance According to the theory of organizational configurations, the pure form has higher performance levels, due to the maximum consistency achieved among internal and external factors, which means that the deviation, in one way or another, from the pure form decreases the organizational performance. Actually, this premise was tested before by other researchers like Pinto and Curto (2007). But in this research, instead of deviation, closeness to the pure form was accepted as a baseline. This argument was tested based on a data sample of 42 organizations, each associated to one of the three viable types of the Miles and Snow (1978) typology. So, based on the validity of organizational configurations theory and the system approach of fit, a positive and significant correlation between the overall performance measurement and fit level is expected. As an analytical technique, the Spearman test is used. According to Table 10, the Spearman’s correlation coefficient between the overall performance measurement and total fit level is 0.620 which is statistically significant at the 0.01 level. This result confirms Hypothesis-3.TABLE 10: Spearman’s correlations between total fit level and overall performance Total fit Overall performance Spearman’s Rho Total fit 1.000 0.620 Sig. (2 tailed) 0.000 N 42 42 Overall Performance 0.620 1.000 Sig. (2 tailed) 0.000 N 42 42 The Linkage between Fit Factors linked with Adaptive Cycle Dimensions and the Organizational Performance Specifically, related to the Miles and Snow (1978) typology, do fit factors linked with adaptive cycle dimensions have a significant impact on the organizational performance? In other words, do entrepreneurial, engineering, administrative and environment fit factors have a statistically significant effect on organizational performance? Theoretically, each one is expected to have it. In order to answer this question, ordinal regression technique was applied as the dependent variable is ordinal. As independent variables, the similarities to the respective ideal were used, comprising all the aggregate similarities associated to each dimension of the adaptive cycle and the environmental factor. These similarities were calculated through the squared

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 17Euclidean distance between the scores conferred by the respondents in each paragraph questions presented in Table 2 and the respective ideal type detected by the cluster analysis. The values of all of the pseudo R-square statistics (0.718, 0.759 and 0.432) are relatively high and satisfactory (table 11). As the significance values of the Model Fitting Information and Goodness-of Fit are respectively 0.000 and 1.000, we can conclude that this model is significant through these two tests and it is a well-fitting model (tables 12 and 13). TABLE 11: Pseudo R-Square Cox and Snell 0.718 Nagelkerke 0.759 McFadden 0.432 TABLE 12: Model Fitting Information Model -2 log Likelihood Chi-square d.f. Sig. Intercetp Only 121.678 Final 68.509 55.169 4 0.000 TABLE 13: Goodness-of-Fit Chi-square d.f. Sig. Pearson 77.320 156 1.000 Deviance 67.123 156 1.000 Table 14 contains the estimated coefficients for the model. The estimates labeled “Threshold” are the intercept equivalent terms. The estimates labeled “Location” are the ones we are interested in. They are the coefficients for the predictor variables. From the observed significance levels in Table 14 we see that entrepreneurial, engineering, administrative and environment are all related to the ratings. They all have positive coefficients, which is in line with our expectations. The second step would be the investigation of the significance of the coefficients. The “Sig.” column in Parameter Estimates in the table shows us the each coefficient’s significance level. The entrepreneurial, engineering, administrative coefficients are statistically significant at p=0.05 significance level. Although the environment coefficient is out of the boundary, still it is

José Castro Pinto, Nuh Altinsoy and Nelson Santos António 18at the acceptable level (0.10 level). The insignificancy of the environment variable might stem from the high correlation between environment and administrative coefficients as it is 0.517. The second reason can be the relatively low importance level of the environment variable in the military environment compared to the private sectors. TABLE 14: Parameter Estimates Estimate Std. Error Wald d.f. Sig. Threshold Overall Performance = 5.00 19.218 4.282 20.151 1 0.000 Overall Performance = 6.00 22.51 4.842 21.613 1 0.000 Overall Performance = 7.00 24.291 5.019 23.424 1 0.000 Overall Performance = 8.00 26.692 5.489 23.646 1 0.000 Location Entrepreneurial FIT 0.364 0.081 19.911 1 0.000 Engineering FIT 0.424 0.168 6.345 1 0.012 Administrative FIT 0.953 0.34 7.864 1 0.005 Environment FIT 528 0.316 2.795 1 0.095The result of the test of parallelism is in Table 15. The assumption is not violated if the test returns to a finding of non-significance. For this example, the finding in Table 15 is non-significant (p = 0.963), indicating that the model is valid. If the test of parallel lines fails, the researcher may combine categories until parallelism is achieved, or may switch to multinomial logistic regression, thereby losing power but meeting less stringent assumptions. TABLE 15: Test of Parallel Lines -2 log Likelihood Chi-square d.f. Sig. Null Hypothesis 68.509 General 63.664 4.845 12 0.963 The null hypothesis states that the location parametres (slope coefficients) are the same across response categories. These conclusions support Hypothesis 4, which states that all the fit factors related with Miles and Snow (1978) adaptive cycle dimensions (entrepreneurial, engineering, administrative and environmental) have a significant impact on the organizational performance.

The Organizational Alignment-Strategy, Structure and Process: An Empirical Study Regarding the Impact on the Performance of Military Organizations 19CONCLUSION AND DISCUSSION As one of the major challenges in public organizations is to find suitable metrics to measure the organizational performance, this study offers a unique approach to the organizational performance explanation due to the usage of one of the most famous strategic management theory and offering an alternative way to conventional performance models. As it was covered in the previous section, based on this model, four hypotheses were developed and tested. As a result, all of them are fully supported and some major findings are acquired from them. These findings can be utilized in the explanation, improvement and finding metrics for the organizational performance. In the following section, these findings will be discussed systematically. It is empirically demonstrated that the organizations in the military environment resemble Miles and Snow (1978) typology pattern as 24 Defender, 12 Analyzer, 6 Prospector and 4 Reactor types and were identified in the target sample. The empirical results obtained through the data analysis consolidated the position of Analyzerarchetypes. Also, as the original Miles and Snow (1978) research was limited in the number of industries, our research proved its validity in a new industry type, military (tables 1 and 2). The second important finding of this research is about the concept of equifinality (table 7). The research provided empirical support to configurational equifinality approach ofMiles and Snow Theory (1978). The third important finding of this research is the configurational fit concept relating to performance in individual organizations. Our research made an empirical evaluation of what configurational theories say: higher organizational performance is associated with a resemblance to one of the ideal types described in the typology. The results were quite satisfactory for the viable strategic types (Tables 8, 9 and 10). The fourth important finding of this research is related with adaptive cycle dimensions and their impacts on the organizational performance. As already stated, most of the previous research concentrated on the entrepreneurial problem with little attention to the other two dimensions, the administrative and engineering problems. Our researches took these four components into consideration, measured their coherence and empirically prove that entrepreneurial, engineering and administrative components are statistically significant at the 0.05 level and the environment component is significant at the 0.10 level (table 14). As mentioned in section 1, in general, the empirical research provided support for Milesand Snow Typology (e.g. Doty et al., 1993). However, several authors have stated that the original Miles and Snow’s research was limited in the number of industries. It was

0José Castro Pinto, Nuh Altinsoy and Nelson Santos António 20not an attempt to prove the validity of their typology across other industry types. To the best of our knowledge, despite the large number of Miles and Snow’s (1978) applications, no empirical studies exist where all these aspects were applied in an empirical study for military organizations. Moreover, according to several research studies that have been made about the effects of organizational configurations and performance, the obtained results concerning all the relevant four hypotheses considered in this work point to the validation of the Miles and Snow typology regarding the performance explanation. This research project was designed to eliminate or minimize as many weaknesses as possible. A few limitations still must be noted: Measurement of Performance Performance, in general and particularly within the military environment is difficult to define. Organizational performance within this research was measured via questionnaire sent to organizations. Even though it was proven that there is statically significant correlation between objective and subjective data, the dependency on the subjective data can be considered the most important limitation of this research. The Population and Generalizability of Results This study was limited to the military organizations that operate in the multinational environment. This situation highly reduced the number of the target organizations. Of course, there is an important population to be studied. They are geographically dispersed, more or less homogenous in purpose and vary in size. So, some caution should be used when generalizing these results in other to dissimilar environments like national or more heterogeneous ones. Finally, just a few words related to the applications of the model. The organizational configuration concept can be seen as a predictive model relating the internal and external fits and the performance. Consequently, a regular analysis of the relevant fits to the respective ideal form carried out by top management can provide the basis for introducing corrective measures in order to optimize organizational effectiveness/efficiency. REFERENCESAggarwal, V. A., Siggelkow N. & Singh, H. (2011). Governing collaborative activity: interdependence and impact of coordination and exploration. Strategic Management Journal 32, (7), 705-730. Akingbola, K. (2006). Strategy and HRM in nonprofit organizations: evidence from Canada. International Journal of Human Resources Management, 17, 1707-1725. Andrews, R., Boyne, G.A. & Walker, R.M. (2006). Strategy content and organizational performance: an empirical analysis. Public Administration Review, 1, 52-65. Brown, W. A. & Inverson, J.O. (2004). Exploring strategy and board structure in nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 33, 377-400. Conant, J.S., Mokwa, M.P. & Varadarajan, P.R. (1990). Strategic types, distinctive marketing competencies and organizational performance: A multiple measures-based study. Strategic Management Journal, 11, 365-383.

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José Castro Pinto, Nuh Altinsoy and Nelson Santos António 22Smith, G.S., Guthrie, J.P. & Chen, M.J. (1989). Strategy size and performance, Organizations Studies, 10, (1), 63-81. Venkatraman, N. (1989). The concept of fit in strategy research: Toward verbal and statistical correspondence. Academy of Management Review, 14, 423-444. Zahra, S.A. & Pearce, J. A. (1990). Research evidence on the Miles & Snow typology, Journal of Management , 16, 751-768. ENDNOTEIf an organization is in the top 20% of the distribution of organizations, it gets 5. If it is in the upper 20-40% of the distribution of organizations, then it gets 4 and so on.

Euro Asia Journal of Management Issue 43, Vol. 24, No.1/2, December 2014, pp.23-35TOWARD AN UNDERSTANDING OF MARKETING STRATEGIES IN HIGHER EDUCATION INSTITUTIONS WAIL ALHAKIMI1andAAYED QASEM2ABSTRACT Marketing has become a part of the routine activities of many higher education institutions. However, it has not yet become fully embedded within the strategic operations and vision of many higher education institutions especially in private universities of the Less Developed World. This study examined the level of utilization and effectiveness of marketing strategies in Yemen’s private universities in recruiting first year students. The results showed that marketing plan and resource analysis strategies were highly utilized and perceived to be highly effective, and market segmentation strategy was least utilized. A positive and significant relationship between usage and perceived effectiveness of all of the fifteen marketing strategies exists. Several challenges and recommendations in utilizing marketing strategies were highlighted and discussed in the study. Keywords: marketing, marketing strategies, higher education institutions, universities.1 Marketing Department, Faculty of Administrative Sciences, Taiz University, Yemen.Email: dralhakimi@gmail.com Marketing Department, Faculty of Administrative Sciences, Taiz University, Yemen.

Wail Alhakimi and Aayed Qasem  INTRODUCTIONIn the past, many institutions of higher education in Yemen have taken a passive approach to student recruitment. Little numbers of universities and a huge number of applicants have resulted in the view of ‘marketing’ the institution to attract better students or increase student enrolments as an unnecessary expense. After achieving unification in 0 and because of the social pressure, political and marked improvement in natural resources, Yemen had seen a boom in the field of higher education. Until the academic year 00/0, there were more than 0 public and private universities (Alworafi, 0). It continues the opening of universities and colleges, government and private. Higher education is a complex sector because it is a highly intangible service and a result of interactions with multiple parties (e.g. students, parents, tutors, industry, professional bodies, government, alumni) (Moogan, 0). The role of the university is that of developing and offering programs believed to be desired by the clients (Maringe, 00). Nowadays, the marketing environment in higher education is extremely competitive (Mount and Belanger, 00). Expansion, increasing variety of institutions, growing heterogeneity of higher education products and increasing competition in this growing industry have been the key drivers of higher education marketing (Maringe, 00). Changes in technology have lowered the barriers of market entry, leading to an increase in both distance-learning and internet-based courses (Naude & Ivy, ). As a result of this competition, all higher institutions are becoming increasingly aggressive in their marketing activities (Ivy, 00). Different philosophies control the universities in the world of education. Etzel et al.() have identified three critical conditions to be met in applying marketing philosophy in the education sector. First is a complete focus on students’ needs in developing qualifications and programs that satisfy those needs. This requires concerted market research as an integral aspect of the development of curriculum. Second is the need for an integrated effort through coordinated activities ensuring that different departments of university focus on the same mission: that of delivering students’ needs. Third is the related issue of developing a goal achievement orientation. In marketing terms, the success, the quality, and the entire outcome of the university experience should be determined by the extent to which the institution has satisfied its customers. Effective marketing must have an ‘outside in’ or external focus, i.e., the university providing what the community needs. Private universities adopt the competitiveness and profitability philosophy, focusing on advertising. Formal plans are developed to implement the use of marketing techniques at institutions to recruit students (Edmiston, 00). Overall, literature reveals more higher education institutions are implementing marketing strategies to recruit students. In developed countries, marketing departments are well established in universities. For example, the marketing department of Hawaii University manages the university's overall

Toward an Understanding of Marketing Strategies in Higher Education Institutions  marketing initiatives, provides marketing services to the university's departments, advocates good marketing practices, performs market research and analysis. It oversees the university’s logo, brand and identity. In addition, it collaborates with the admissions department on strategies and produces marketing collaterals needed for recruitment purposes. Furthermore, it handles all paid advertisements (TV, radio, newspapers, magazines, and web) for the university and partners with admissions personnel on selected recruitment activities. PROBLEM STATEMENT Michael et al. () noted that while marketing is perceived as the cornerstone of the business world, its relevance and applicability to education are controversial and less understood. After World War II, higher education institutions increased their use of marketing techniques to stand out from competing institutions. The essence of marketing a university is the service promise and the customer value offered to the student, whereby the student is acquiring the knowledge and developing their skills in order to gain the qualification and enhance their career (Moogan, 0). The increasing tuition fees in universities and growth in number of students have increased consumer interest in quality, standards and value for money for higher education (Shah & Nair, 0). However, most institutions did not use formal marketing plans (Goff et al., 00). Studying potential students’ environment and consumption patterns gives insight into consumer behavior. Angulo et al. (00) identified two perspectives that influence students in their selection of a higher education institution: emotional perspective (i.e. values and wants) and rational perspective (i.e. quality of faculty and scholastic excellence). This study addressed the following questions: ‘to what degree private universities have utilized marketing strategies?’ and ‘to what degree have the marketing strategies been perceived to assist private universities in recruiting first year students?’ RESEARCH OBJECTIVES The expansion in private universities is attributed to many factors including: changes to government policy related to tertiary education; unmet student demand in public universities; migration policies, which are linked to skills shortages; and huge investments in education by private consortiums (Shah et al., 0). Students are turning to private universities, which generally focus on offering courses in specialized areas. Several objectives are examined in the current study: . Identify the level of marketing utilization by private universities in Yemen.

Wail Alhakimi and Aayed Qasem  . Examine the perceived effectiveness of marketing strategies at private universities in Yemen. . Examine the nature of the relationship between utilization and effectiveness of marketing strategies. . Identify the challenges facing private universities in the adoption and implementation of marketing strategies. LITERATURE REVIEW The purpose of marketing is to provide customer satisfaction. An understanding of the changing needs of students can only help to guarantee all round greater satisfaction to the students (Maringe, 00). Universities’ offerings could be classified into three levels – the core, tangible, and augmented product. Firstly, students are buying the benefits that a degree can provide in terms of employment, status, and lifestyle. Secondly, tangible attributes might include the physical layout of the campus, the library, laboratories and sporting facilities. Finally, the augmented level is made up of intangible attributes such as library membership for graduates, student loans and finance, an employment or placement service (Levitt, 0). However, Kotler and Fox () argue that students are raw materials, graduates the product, and prospective employers the customer. In fact, in the developed world (very rarely in the less developed world, i.e. in this study Yemen) it is common these days to see a marketing office designated as such as a stand-alone department within the university system (Maringe, 00). Curran (00) has suggested five key strategies which university departments could utilize to support a growing marketing orientation. He has argued for support of senior management, the creation of structures to serve a marketing function, developing an in house marketing training program, hiring marketing trained staff and developing a system of rewarding good marketing practice. Marketing typically moves from selling the institution to a more proactive role of determining future strategies. In the current study, utilization and effectiveness of marketing strategies are examined. Utilization means the degree to which marketing activities are employed by private universities. While effectiveness means achieving the institution’s objectives through optimizing its resources to achieve good results for both the short-term and long-term. In fact, improving marketing effectiveness can be achieved by employing a superior marketing strategy. Changing demographics, declining government funding, and increasing competition are some of the factors that have recently led many universities to use aggressive marketing strategies (Berger & Wallingford, ). Marketing strategy consists of the analysis, strategy development, and implementation of activities in: developing a vision about the markets of interest to the organization, selecting target market strategies, setting objectives, and developing,

Toward an Understanding of Marketing Strategies in Higher Education Institutions  implementing, and managing the marketing program positioning strategies designed to meet the value requirements of the customers in each target market (Cravens & Piercy, 00). A marketing plan is a written document that contains the strategies and tactics the institution uses to recruit students. Effective implementation of a marketing plan depends heavily on faculty and staff support of the plan. Therefore, every faculty and staff member is essentially a sales representative for the institution (Reese, 00). The application of the marketing perspective to higher education does not involve a dramatic shift of power from educator to student, but does suggest that in order to achieve quality, the expectations of students need to be taken into account and ideally their views and those of the educators be brought into harmony (Scott, ). However, the absence in many universities of forecasting plans, product differentiation documents, customer needs surveys, customer satisfaction records suggest that the marketing function remains at the operational rather than the strategic level in the majority of universities (Maringe, 00). Two of the steps used in implementing marketing strategies are ‘perform the resource analysis’ and ‘scan the environment.’ Information from environmental scans and resource analysis can help educational institutions in making accurate decisions (Cann & George, 00). Therefore, it is important for educational institutions to adopt the market orientation philosophy, which is the organization-wide generation of market intelligence that pertains to current and future customer needs, distribution of intelligence across departments, and organization-wide responsiveness to intelligence (Kohli & Jaworski, 0). The next step in strategic marketing is to formulate goals and objectives. Administrators have the task of ensuring the objectives are met. Goals are measurable tasks that ensure the implementation of objectives (Bloom & Kotler, ). In addition, segmentation is an activity that allows the accurate identification of needs in a selected group of the customer base. Degree courses in many universities are often developed on the basis of perceived rather than real needs (Maringe, 00). The competitive environment of higher education is the main reason that positioning is a concept that higher education administrators should use. Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers (Kotler & Armstrong, 0). The higher education literature views positioning as a vital element in developing and implementing a successful marketing strategy. That is, positioning allows universities to effectively deal with the reality, that is, institutions are perceived according to their differences, not their similarities (Bingham, ). Positioning is commonly viewed by higher education marketers as the part of the strategic marketing process, where the institution finds a way to fix its product/service in the mind of the target market (Shank et al., ) Image studies are a useful method to determine how the institution is viewed through the eyes of potential students (Kotler, 00). Higher education institutions can use the survey methods to measure familiarity and favorability of the institution. Studying potential students’ environment and consumption patterns gives insight into consumer behavior. There are two perspectives that influence students in their selection of a higher education institution: emotional

Wail Alhakimi and Aayed Qasem  (i.e. students’ values, needs, wants, and anticipation of higher education) and rational (i.e. quality of faculty and scholastic excellence) (Angulo et al., 00). Owilia and Aspinwall () found that customer-orientation in higher education is a generally accepted principle by most practitioners. The ultimate role of the higher education institution as a product is to fulfill students’ educational needs. Students’ perspectives on selecting higher education institutions depends on many marketing variables, such as the institutional reputation (quality academic programs, athletic program success, and quality of faculty), location of the institution (rural versus urban), cost (tuition, fees, health insurance, accommodation, and other charges), financial aid, and other service programs. Educational service must match with the cost of tuition and fees to an institution. Both services and pricing decision are an important marketing strategy. Furthermore, higher education institutions use promotion incentives to attract students. Several universities in the United Kingdom reward students for selecting their institution with laptop computers, bicycles, sport tickets, and art supplies (Gibbs, 00). The traditional promotions element of the marketing mix is frequently standard mass media advertising and hard copy promotions like the prospectus and direct mail, but e-documents and the use of technology are becoming increasingly important sources (Moogan, 0). Universities use advertising as a main promotional tool. It can take a variety of forms such as books, websites, television, radio, and print advertisements. Nowadays, social networking has transformed the method in which people communicate. Higher education institutions maintain a good presence in several social networks such as Facebook, Twitter, and LinkedIn. Page administrators should post items that are relevant to potential students such as upcoming college entrance test dates, scholarship deadlines, and on-campus preview days (Tariq and Wahid, 0). RESEARCH DESIGN The scope of this study concentrated on marketing strategies that are implemented by private universities in Yemen. Table  shows the indicators of the universities working in Yemen for the academic year 0/0.

Toward an Understanding of Marketing Strategies in Higher Education Institutions  TABLE 1: The Indicators of Yemen’s Universities University Year of Establishment No. of Faculties UniversityYear of Establishment No. of Faculties Public Universities Sana'aUniversity 0  Private Universities Alsaeed University 00  AdenUniversity 0 0 InternationalUniversity of Holly Quran  TaizUniversity   AlandalousUniversity for Technical Sciences 00  HodeidahUniversity   Future University 00  Ibb University  University of Modern Sciences 00  Dhamar University   Lebanese InternationalUniversity00  Hadhramout University   Azal University of Sciences and Technology 00  Amran University of Technology 00  Arabian University of Sciences and Technology 00  AlbaidaUniversity 00  Yemen Jordan University 00  HajjahUniversity 00  Yemen University 00  Private Universities University of Sciences and Technology   Dar Alsalam University 00  Yemenia University   Alnaser University 00  NationalUniversity   Alhekma University 00  Queen Arwa University   Bin Khaldon University 000  SabaaUniversity   InternationalUniversity of Technology Twintech 00  AlahgafUniversity   Source: www.yemen-nic.info

0Wail Alhakimi and Aayed Qasem 0 A descriptive survey methodology was adopted. Admissions directors at  private universities in Yemen were questioned on their utilization and perceived effectiveness of the fifteen predetermined marketing strategies in their effort to recruit first year students. Respondents were asked to rate their level of usage and perceived level of effectiveness for each marketing strategy on the Likert scale. In addition, demographic data from each institution were collected and the respondents were encouraged to express their opinions in open ended questions. Several drafts of the questionnaire were evaluated by academic staff in order to increase the content validity of the research instrument. Several data analysis techniques were used, such as frequencies and correlation coefficient to determine the strength of the relationships between usage and perceived effectiveness of marketing strategies. A self-administered questionnaire was distributed to all admissions directors of the  private universities. Afterwards, internal consistency was examined; overall Cronbach’s Alpha is 0., which indicates high internal consistency among the items representing the construct. The majority of the surveyed universities were local (%) and there were only two international universities. More than half of them (0%) have less than 00 first year students who are enrolling in the class of Fall 0/0. RESULTS Only five universities have a marketing department; the rest employed a marketing specialist to conduct the marketing activities (%). Table  summarizes the main results of the frequencies and correlation coefficient to determine the level and the strength of the relationships between usage and perceived effectiveness of marketing strategies. The first objective of this study was to identify the level of marketing utilization by private universities in Yemen. The results revealed that a majority of private universities have a marketing plan with 0% of them perceiving it as an effective or very effective tool. However, only five strategies out of the fifteen marketing strategies emerged with more than % of respondents using them frequently or often (i.e. resource analysis, positioning, sales promotion, advertising, and marketing audit). On the other hand, the least used strategies were market segmentation (% respondents reported never used), product differentiation (% respondents reported never and seldom used), and product decision (% respondents reported never and seldom used). In addition, the results revealed that there are other marketing strategies used by private universities, such as SMS advertising, social networks, and positive word-of-mouth by senior students. These results are consistent with Maringe’s (00) study, which showed that, on the whole, marketing is narrowly perceived as advertising or promotion by both senior executives and marketing operatives in university institutions. He also found that the majority of universities used the communication model of marketing rather than a relationship building of the application of the marketing idea. This perception appears to be pervasive across the world

Toward an Understanding of Marketing Strategies in Higher Education Institutions  in developed and less developed countries (Smith et al., ; Naude & Ivy, ; Ivy, 00; Maringe, 00). TABLE 2: Level of Utilization and Perceived Effectiveness of Marketing StrategiesMarketing Strategy Level of Usage Effectiveness Rating PearsonCorrelationSig. Not at all Seldom Frequent Often Very Ineffective Ineffective Effective Very Effective Resource analysis 0% % % % 0% 0 % % . .000* Measuring current and future trends % % % 0% % 0% % % .0 .000* Consumer behavior analysis % % % % % % % % .0 .00* Market segmentation % 0% % 0% % % % % .0 .000* Positioning % % % % % % % % . .0* Product differentiation % % % % % % % % . .000* Product decisions % % % % % % % % . .000* Price decisions % % % % % % % 0 . .000* Sales promotions % 0 % % % % % % . .000* Publicity % % % 0 % 0% % % . .000* Advertising % 0% % % % % % % . .000* Online marketing % % % % % % % % . .000* Personal selling % 0% % % % % % % . .000* Market research % % % 0% % % % 0% . .000* Marketing audit 0% % % % 0% 0 % % . .000* * Correlation is significant at the 0.0 level. The second objective of this study was to examine the perceived effectiveness of marketing strategies at private universities in Yemen. The results revealed that ten strategies out of the fifteen marketing strategies emerged with more than % of respondents perceiving them as effective or very effective (i.e. resource analysis, measuring current and future trends, consumer behavior analysis, positioning, sales promotion, publicity, advertising, online

Wail Alhakimi and Aayed Qasem  marketing, market research, and marketing audit). The least effective strategy as perceived by respondents is market segmentation with % of respondents considering the strategy as very ineffective, which justifies it being the least used strategy. These results are consistent with Maringe’s (00) study, which showed that, the overall perception amongst senior executives and operatives is that marketing is highly valued and indispensable given the overarching forces and challenges universities across the world are faced with. The third objective of this study was to examine the nature of the relationship between utilization and the effectiveness of marketing strategies. Table  illustrates the significant correlations between usage and perceived effectiveness of fifteen marketing strategies. The results revealed a positive and significant relationship between usage and perceived effectiveness of all of the fifteen marketing strategies. Most of the strategies indicated a strong linear relationship between the two variables (i.e. r > 0.0, p < 0.0). That is, the more frequently admissions directors implement the strategy; the more they perceive it to be very effective in recruiting first year students. Only two strategies indicated a moderate linear relationship between the two variables (i.e. consumer behavior, and positioning). That is, when admissions directors implement the strategy, they perceive it to be least effective in recruiting first year students. The last objective of this study was to identify the challenges faced by private universities in their adoption and implementation of marketing strategies. The respondents were asked to explain the marketing challenges facing private universities in Yemen. Several insights were given such as: Shortage of financial resources, Higher education rules in Yemen did not support the private universities expansion strategies, Difficulties in satisfying public’s needs, High price sensitivity of Yemen’s students to the tuition fees, High promotional costs, and Intensive competition. CONCLUSION AND IMPLICATIONS Even though few universities have a marketing department; while most of them employed a marketing specialist to conduct the marketing activities, the results revealed that Yemen’s private universities intensively utilize and perceived effectiveness of marketing plans. It is the responsibility of the institution to implement the marketing plan after their marketing consultant has formulated it. Several challenges facing private universities in the implementation stage were highlighted by the admissions directors such as intensive competition, financial resources, and price sensitivity.

Toward an Understanding of Marketing Strategies in Higher Education Institutions  Resource analysis was given a significant attention by private universities. The results revealed that Yemen’s private universities intensively utilize and perceive effectiveness of resource analysis. The resource analysis examines opportunities and threats as external factors that affect higher education. The benefit of performing a resource analysis is that institutions can use the data to create strategic plans for the future. The results revealed that market segmentation was not utilized often nor perceived to be very effective in recruiting students. The low usage and perceived effectiveness responses could have been due to the fact that admissions directors did not have a clear understanding of market segmentation. Higher education institutions can employ market segmentation when developing recruitment plans. Market segmentation allows an institution to determine which segment(s) of potential students they desire to recruit to their institution. The results revealed that almost half of the private universities did not utilize consumer behavior analysis. In fact, admissions directors should conduct consumer behavior studies for their target markets to determine if potential students are using technology in their daily lives. Studying potential students’ environment and consumption patterns gives insight into consumer behavior. Before an institution can recruit students, it must first learn about its potential student pool. Technology has enabled online marketing to become a permanent tool in the marketing tool box that admissions directors can utilize to recruit first year students. The results revealed that there are other marketing strategies used by private universities, such as SMS advertising and social networks. Admissions directors will increase their usage of online marketing as they become more familiar with the technology. Technology allows admissions directors to track potential students’ responses to online marketing efforts. Social networking sites and search engines have options that permit an institution to track the traffic from advertisements placed by the institution. The admissions directors should continue to draw up marketing plans and ensure they implement the following marketing strategies: resource analysis, positioning, sales promotion, advertising, and marketing audit. The respondents perceived those marketing strategies to be effective when they were utilized to recruit potential students. Several recommendations are crucial to be adopted by higher education sector. It is very important for universities to establish marketing departments so that they can perform important functions such as focus on the customer, monitor the competition, create new ideas, communicate internally, and set the strategy and execute it. In addition, alumni offices in universities can play a significant role in marketing initiatives. The main role of the Alumni Office is to establish and enhance a continuing relationship between the university and its alumni. That is, maintaining a positive relationship with alumni means that the messages they share about the institution will also be positive. Alumni generate invaluable word-of-mouth marketing among their social and professional networks. Additionally, admission departments should conduct professional workshops and training programs to share the best practices in implementing marketing strategies. They should allocate sufficient resources to implementing effective marketing strategies.

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Euro Asia Journal of Management Issue 43, Vol. 24, No.1/2, December 2014, pp.37-55CUSTOMER’S PERCEIVED SERVICE QUALITY TOWARDS MONOPOLY FIXED LINE MARKET: A RESEARCH NOTE ON COMPANHIA DE TELECOMUNICAÇÕES DE MACAU S.A.R.L. (CTM) MATTHEW TINGCHI LIU1ZHU ZHENGHAO, COLIN2andCHANG KIT KENG3ABSTRACT The current research aims at examining the dimensions of customer’s perceived service quality of fixed line monopoly by taking into account the example of CTM, a telecommunications company based in Macau. Data were collected in 2012 by using (1) SERVQUAL questionnaire survey (with 95 CTM staff and 282 CTM customers) to measure their perception across five service dimensions, and (2) semi-structure in-depth interviews with seven CTM top management. Findings from the study indicated that both CTM’s customers and staff believe that there is a lot of room for improvement to enhance the overall fixed line service quality of CTM. Respondents rated ‘reliability’ as the most important service feature for a telecommunication company. CTM should put more efforts in enhancing service reliability to improve overall service quality perceptions. Further suggestions to improve the general fixed line monopolies worldwide have also been given. 1 University of Macau, Macau. Email: MatthewL@umac.mo2 International Business, Zhejiang Business Technology Institute, China. 3 University of Macau, Macau.

Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 38 Keywords: Service quality, SERVQUAL, Fixed line, Monopoly, Telecommunication, MacauINTRODUCTIONThe infrastructure in the telecommunication (telecom) sector is vital for sustainable economic growth. Many developing and developed countries, such as Thailand, the Philippines and South Africa, have long monopolized telecommunication service due to the fact that they have been perceived as a ‘public good’ by the government, which are traditional providers and suppliers of public services. Indeed, economic theories have traditionally suggested that telecommunications services should be grouped with other ‘public goods’ such as electricity (Viani, 2011). These services require a large amount of fixed investment costs, which are indivisible, and its marginal cost is zero, making it difficult and impossible to charge it based on its marginal cost as other goods and services (Roger, 2000). As a result of these factors, there are no profit-oriented private suppliers who would provide public goods as it is economically not feasible for them. Therefore, the government usually takes the role of telecommunication suppliers in order to ensure that reliable telecommunications services are available to everyone in both urban and rural areas at reasonable prices. However, since the 1980s, the worldwide telecommunications sector has been deeply hit by a set of market reforms which have included the liberalization of the telecommunications sector, in particular, the growing competition of the fixed and cellular segments coupled with the privatization of the fixed line incumbent operator (World Bank, 2010). The dynamic global environment and booming economic development in Macau has helped in bridging the gap between digital devices and the market has become even more competitive. In 2013, the deregulation policy adopted by the government in Macau fixed line market has changed telecommunication market environment and brought competitiveness into the fixed line sector. This has a direct implication on the incumbent Macau telecommunication market, which will face unprecedented challenges in the near future. Fixed line service was first introduced in Macau in 1929 by the government authority-CTT. Due to the limitation of resources and increasing demand from the public, the Macau government realized a revolutionary change would be needed in order to enhance the efficiency and effectiveness of telecom services. However, as Macau is a small city with small commercial scale, it surely limits the attractiveness for international investment in such a small market. Moreover, released authorization under monopoly license had been the most suitable policy for the development of Macau Telecommunication market at that time. A private organization, Companhia de Telecomunicações de Macau S.A.R.L. (hereafter referred to as CTM) was granted the monopoly license from CTT in 1981. Since CTM had the sole telecom service license, it had the exclusive right to operate local and international switched fixed voice, data and mobile services in Macau. According to the International Telecommunication Union (ITU), the numbers of fixed

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 39line subscribers around the world as a proportion of the total world population have declined since 2006. This decline also represents the current scenario in Macau wherein, the number of fixed line subscribers had reached an effective saturation point in 2007 and its penetration has been steadily declining ever since. During late March 2013, the fixed line telephone subscribers further decreased by 2% to 161,404 subscribers and the fixed line subscribers per 100 inhabitants declined 3.16% to 27.53 compared within the same period of 2012. In terms of fixed line data service (Internet service), CTM had launched the first broadband internet access in Macau in 2000, and it also introduced Internet Fiber Broadband Services in 2010. Macau’s internet user penetration rate is amongst the highest in the world and with figures amounting to nearly 70%. This fast growth of local mobile market segments and the extensive use of 3G mobile broadband have also supported large and developing segments of the regional internet market. According to data from Direcção dos Serviços de Estatística e Censos (DSEC), Macau’s internet market grew at a two-digit rate last year. During March 2013, the number of internet services subscribers reached 236,345, a figure which was nearly up by 11% in comparison with the same period in 2012. The number of hours spent online soared at an even faster rate, the cumulative duration of usage reached 194 million hours in the first quarter of 2013, up by 26.6% respectively year-on-year (DSEC, 2013). Similar situation of monopolistic deregulation in the telecommunication industry of other Asian cities, such as Hong Kong and South Korea, pointed out that the state-owned company had a unique market power over service provision. However, after market liberalization, competitive regulations had markedly transformed the service sector from being monopolistic into a competitive and a market driven sector. Prices of telecommunications services had started to decline substantially. The competitors also began to offer products at lower prices in order to grab their market share from the previous companies which had the monopoly in the market. On the other hand, the competitive elements which had been brought into the market would finally benefit customers through greater product selection, more attractive prices and higher quality of goods and services. Under such circumstances, stronger incentives for the dominant service provider could be provided to increase operating efficiency, be innovative by creating new revenue sources, reduce service prices and improve service quality in order to maintain market share. Nowadays, service quality is becoming more recognized as an important component for management and service industries. Several researchers and authors of books in the management domain and company managers have described service quality as a necessary weapon for management. It determines the success of companies in market places (Zeithaml etal., 1996). CTM is a general fixed line telecommunication operator. The company has an international background and a blend of both western and eastern cultures in its work force. Before transferring ownership in 2013, its major share was owned by two European telecommunication giants, namely Cable and Wireless Communications PLC (51%) and Portugal Telecom (28%). In June 2013, CITIC Telecom International Holdings Limited, Asia Pacific’s leading telecommunications service provider with a typical Chinese business background, acquired the entire shareholdings of CTM, from both Cable and Wireless

0Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 40 Communications and Portugal Telecom. CITIC Telecom became the dominant shareholder of CTM, having 99 % of the total shares. Having a blend of both western and eastern cultures within the company is a valuable business feature for CTM’s future development. While approaching full liberalization in the telecommunication sector in Macau, it is necessary for CTM to make its business practices more customer-focused, which would help in providing good service quality, thereby enhancing customer satisfaction which would ultimately lead to being fruitful for the organization in the long run. Since very few empirical investigations or studies have been done on fixed line subscribers’ perception of service quality under a monopoly market using SERVQUAL, therefore, the current study which is based on examining the service quality of fixed line as perceived by CTM’s customer in a monopoly market in Macau is a unique and novel approach to understanding the subscribers’ perception of service quality in a monopolistic market. The current study will focus on the important dimension of service quality which customers prefer and this would in turn help CTM to improve the assessment of quality based on service mechanism, develop business strategy and manage customers’ interest objectively. Besides, the findings from the study also provide some practical implications for the Macau telecommunication industry. LITERATURE REVIEW As a critical measure of organizational performance, service quality remains at the forefront of the marketing literature. Jaw et al. (2010) put forth that services are related to creating changes or transformation of form, place or time of availability involved in material, goods, people, nature environment or symbolic representations. The International Standards Organization (ISO) has taken a top down approach and its current definition of quality is the degree to which a set of inherent characteristics fulfills requirements. In today’s service-oriented economy, service quality and its perceived value have got paramount significance in setting strong business strategies. Companies invest heavily on service quality for improving customers’ perceptions of overall service quality and enhance their service experiences (He & Li, 2011). However, service characteristics, intangibility, inseparability, perishability and heterogeneity challenge the service marketers to provide services successfully across national boundaries (Kotler, 1991; Sichtmann et al., 2011). Customers do not evaluate service level solely on the outcome, but also the process of service delivery (Parasuraman et al., 1990). Moreover, service is perception-based, and the true measurement rests with the individual customer, in which mood, culture and timing, as well as the customer’s previous experience all affect the way service is perceived. Also, the same service delivery in different environmental attributes may lead to different levels of customer satisfaction. Perceived service quality and its measurement have become an essential focus for the

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 41organization in designing and implementing a customer-oriented strategy (Muhammad, 2011). Hayes (1992) pointed out that if organizations have accurate information about customer’s service quality perceptions, they can make better decisions to serve their customers. Research has also found that service quality perceptions are positively related with willingness to recommend and are negatively related with switching and complaining behavior. The term service quality has been widely used in accessing service performance of various service organizations including the telecommunication industry. Numerous studies have investigated the perspective of telecommunication service providers with regards to the quality aspects. These studies provide an insight of the quality dimensions for telecommunication operators to consider and focus on service operation (Tindal, 2013; Rahman et al., 2012). Measuring service quality enables an organization to know its position in the market and provides a strategic advantage to enhance its competitiveness. Parasuraman, Zeithaml and Berry are among the most recognized researchers in the area of measuring service quality (Kandampully et al., 2001). Through the formal survey, an empirical study of customers in different industries and focus groups, Parasuraman et al. (1988) developed and refined SERVQUAL, a multiple- item instrument to quantify customers’ global assessment of a company’s service quality. They modified and combined those characteristics that define service quality into five basic service dimensions which consists of tangibles, reliability, responsiveness, assurance and empathy (Agyapong & Kobina, 2012; Parasuraman et al., 1988). This model is based on customer’s expectations of the service and their perceptions of the company’s actual service performance. Based on Parasuraman et al.’s (1988) conceptualization of service quality, SERVQUAL is intended to measure (a) customer expectations for various aspects of service quality and (b) customer perceptions of the service they actually received from the service organization (Al-Zoubi, 2013). SERVQUAL model summarized four key internal discrepancies (gaps) related to the managerial perceptions of service and task associated with service delivery to customers. The first four gaps (Gap 1 to Gap 4) are identified as functions of the way in which service is delivered. Gap 5 pertains to the customer and is considered to be the true measure of service quality. Gap 1: Companies’ perceptions of customers’ expectations on service quality. It means the gap between what customers expect from a service and managers’ perception of customer expectation (Positioning Gap). Gap 2: The gap exists between management perceptions of customer expectation and service quality specifications. It implies what companies consider as important about service quality standards (Specification Gap). Gap 3: The difference between service quality standards and the level of service actually delivered (Delivery Gap). Gap 4: The difference between service providers’ actual service delivery and their promises through external communications (Communication Gap). Gap 5: The difference between expected service and perceived service from customer’s point of view (Expected Service – Perceived Service Gap).

Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 42 Managing gaps in service will help the company to improve its quality (Al-Zoubi, 2013). According to Yang et al. (2004), the gap model is a diagnostic tool, is externally focused, and it potentially assists the management to identify the relative service quality factors from customers perspective, thereby helping to understand the sources of problems in quality and how to improve upon them. The SERVQUAL instrument is the most widely used, valid, and generally accepted service quality measurement tool to access customer perceptions of service quality for a variety of services (Atligan et al., 2003). Numerous researchers have adapted the SERVQUAL model in the telecommunication industry with different cultural contexts. For example, Van der Wal et al. (2002) used SERVQUAL with some modifications to measure the service quality in a cellular telecommunications company. Rosemond and Gloria (2011) adapted the SERVQUAL model as the main framework for analyzing the relationship between service quality and customer loyalty in Vodafone (Ghana). Muhammad (2011) applied the SERVQUAL model to measure mobile phone users’ perception about service quality in Pakistan. Although the SERVQUAL model has proven to be an effective instrument for measuring the achieved level of service quality, the model has also been theoretically and operationally criticized. These criticisms have revolved around the validity, conceptual basis, interpretation and implementation of the instrument (Newman, 2001). Brady et al. (2002) did not support the five-factor structure of the instrument and argued that SERVQUAL should include the value of service and the uncontrollable factors associated with service encounter. Cronin and Taylor (1994) critiqued the conceptual basis of SERVQUAL and the use of an expectation disconfirmation model as the basis for SERVQUAL being not appropriate, whereas an attitudinal model of service quality should be used instead. Some researchers have criticized that the nature of expectations have potentially resulted in high means and low standard deviations. Cultural difference is also an important aspect that affects the customers’ expectations of service quality (Mattila, 1999). In addition, Babakus and Boller’s (1992) empirical analysis indicated that perception-only measure had higher correlations with an overall service quality measure than the SERVQUAL measure. Cronin and Taylor (1992, 1994) also emphasized the use of perceptions of the actual performance only index (SERVPERF). Since the weight of evidence in the literature supported the SERVPERF approach in increasing research reliability and validity (Brady et al., 2002), the current research will apply the SERVPERF model to measure customer perceptions of service quality towards the monopoly fixed line market in Macau. RESEARCH QUESTIONS Based on the literature review, the study proposes the following research questions: 1. How do customers perceive service quality under the monopolistic fixed line service market in Macau?

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 432. Is there any difference between CTM customer’s perception and its management perceptions on customer’s expectation towards its fixed line service? 3. What factors may have caused discrepancies of service quality? What can CTM do to resolve such problems and improve its service quality? METHODOLOGYThis research is made up of two parts. The first part is a survey study of the external gap (Gap 5) of the SERVQUAL model developed by Parasuraman et al. (1988), whereas the second part reports on management interviews concerning the internal gaps (Gap 1 to Gap 4) of the SERVQUAL model. Methods and samples The first part of study consists of two sample target groups, which are 300 CTM’s fixed line customers/subscribers and 100 existing full-time staff within the company. The modified SERVQUAL instrument which reflected telecommunication contexts was carried out for customers and staff from April to December 2012 with convenience sampling. As a part of the research on CTM’s customers, questionnaires were distributed to the customers by part-time staff of the company after they were briefed to explain the questions. The staff were also responsible for conducting a face-to-face survey with target respondents in four assigned CTM branches. For CTM’s staff group, some of the trained staff of CTM assisted to distribute the questionnaires in the Telecentro building which is a flagship concept store of CTM during working hours and the questionnaires were collected immediately upon completion. Finally, 282 questionnaires from CTM’s customer group and 95 questionnaires from CTM’s staff group were considered as valid responses.The second part of the study aims at carrying out one-to-one semi-structure interviews with seven top management employees of CTM between April and May 2012. These top management employees are from different functional departments and include the ranks of CEO, Vice President, Director and General Manager. The questions used in the management interview were adopted from the research carried out by Gabbie and O’ Neill (1996). The latter views service quality gaps as related to positioning, specification, delivery and communication, which are based on the SERVQUAL model. Interviewees were contacted individually in order to seek their willingness for conducting the interview. Open-ended questions were used and interviewees were required to express their ideas and explain their points of view toward different situations.

Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 44 Survey respondents’ profile Out of the 282 CTM customer samples, the proportions of male and female were 44% and 56% respectively. Around 99.3% of respondents were under the age of 45, with a significant 75.2% falling between the age range 19 and 30. 78.4% of respondents had indicated their education level as being ‘Bachelor or above’. Interestingly, 96.8% of respondents had experience in using the internet for more than five years and a majority of respondents (59%) used the internet more than four hours per day. Among CTM’s staff sample, 60% were male and the remaining 40% were female. Among them, 57.9% fell under the age group of 19 to 30, while 35.8% were between the age group of 31 to 45. With regards to CTM’s customer group, a major proportion of respondents (77.9%) had an education level of ‘Bachelor or above’. 94.7 % had internet experience of more than five years. A large proportion (40%) of the respondents used internet between two and four hours per day, followed by 23.2% of them using the internet for over six hours per day and 22.1% using the internet for two hours per day. RESULTS Results of reliability analysis of data Reliability among the five variables of service quality was tested by using Cronhach’s alpha. An alpha value of 0.7 and above is considered to be the criteria to demonstrate internal consistency of new scales and establish scales respectively (Nunnally, 1988). Since the five variables of service quality from both CTM’s customer group and CTM’s staff group of this research study were over 0.8, the reliabilities for the measurement of tangibles, reliability, responsiveness, assurance and empathy as presented in Table 1 were considered to be reliable. TABLE 1: Reliability Analysis of Service Quality Cronbach’s Alpha Tangibles Reliability Responsiveness Assurance Empathy Customer Group (N=282) 0.947 0.909 0.914 0.915 0.932 Staff Group (N=95) 0.925 0.854 0.870 0.861 0.874

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 45Perceived service level Five attributes of service quality, namely (1) tangibles, (2) reliability, (3) responsiveness, (4) assurance and (5) empathy in the SERVQUAL model were rated by both CTM’s customers and staff. In relation to each service quality dimension shown in Table 2, the mean value of ‘empathy’ was 3.26 from CTM’s customer group and 4.51 from CTM’s staff group, which was the lowest score among other four variables. On the contrary, the mean value of ‘tangibles’ was the highest score in both groups of respondents, which was rated at 4.26 points in customer group and 5.02 points in the staff group. The second highest mean value in CTM’s customer group was ‘responsiveness’, which was rated at 3.69 points. ‘Reliability’ and ‘assurance’ were the third and fourth highest mean value in customer group, which got 3.63 and 3.47 points respectively. Nonetheless, the second highest mean in CTM’s customer group was ‘assurance’, which was rated at 4.71 points, whereas ‘reliability’ and ‘responsiveness’ occupied the following positions in the staff group. Overall rating of service quality Considering the overall fixed line service quality of CTM, its service is value for money. The mean values (shown in Table 3) of customer group were both below average, having ratings of 2.99 and 3.05 respectively. This indicates that the respondents totally negate the efforts of CTM on providing fixed line services to the customer. There was strong evidence to show that customers might shift to other fixed line service suppliers if they did not agree that CTM was their ideal service provider (mean =2.84).

TABLE 2: Mean, Ranking of Service Quality Dimension Customer Group (N=282)Staff Group (N=95)Mean Std.Deviation Mean Ranking Mean Std.Deviation Mean Ranking Tangibles 1.Modern looking equipment 3.62 1.469 4.26 1 4.80 1.459 5.02 1 2.Appealing physical facilities 4.43 1.280 5.22 1.108 3.Professional appearance 4.74 1.228 5.22 0.881 4.Appealing materials 4.25 1.287 4.83 1.369 Reliability 5.Promise to do something within a certain period of time, it did so 3.64 1.467 3.63 3 4.64 1.460 4.70 3 6.Sincere interest to solve problem 3.57 1.457 4.91 1.219 7.Performs service right the first time 3.53 1.426 4.57 0.997 8.Provide service as promised 3.67 1.331 4.74 1.194 9.Insists on error-free records 3.76 1.514 4.64 1.733 Responsiveness10.Service staff tell me exactly when the service perform 3.86 1.435 3.69 2 4.63 1.418 4.58 4 11.Service staff provide prompt service 3.60 1.389 4.56 1.613 12.Service staff always willing to help 3.84 1.400 4.89 1.419 13.Service staff always available to respond3.47 1.469 4.26 1.603 Assurance 14.Instills confidence 3.41 1.395 3.47 4 4.62 1.102 4.71 2 15.Feel safe in transactions 3.07 1.491 4.67 1.404 16.Consistent courteousy 3.69 1.374 4.84 1.248 17.Knowledgeable to answer questions 3.70 1.361 4.70 1.236 Empathy 18.Gives individual attention 3.26 1.342 3.26 5 4.33 1.404 4.51 5 19.Convenient operating hours 3.76 1.451 4.98 1.681 20.CTM has employees who give me personal attention 3.23 1.314 4.42 1.337 21.CTM has my best interests at heart 2.86 1.478 4.35 1.980 22.Understands specific needs 3.19 1.431 4.48 1.662 Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 44 Survey respondents’ profile Out of the 282 CTM customer samples, the proportions of male and female were 44% and 56% respectively. Around 99.3% of respondents were under the age of 45, with a significant 75.2% falling between the age range 19 and 30. 78.4% of respondents had indicated their education level as being ‘Bachelor or above’. Interestingly, 96.8% of respondents had experience in using the internet for more than five years and a majority of respondents (59%) used the internet more than four hours per day. Among CTM’s staff sample, 60% were male and the remaining 40% were female. Among them, 57.9% fell under the age group of 19 to 30, while 35.8% were between the age group of 31 to 45. With regards to CTM’s customer group, a major proportion of respondents (77.9%) had an education level of ‘Bachelor or above’. 94.7 % had internet experience of more than five years. A large proportion (40%) of the respondents used internet between two and four hours per day, followed by 23.2% of them using the internet for over six hours per day and 22.1% using the internet for two hours per day. RESULTS Results of reliability analysis of data Reliability among the five variables of service quality was tested by using Cronhach’s alpha. An alpha value of 0.7 and above is considered to be the criteria to demonstrate internal consistency of new scales and establish scales respectiv ly (Nunnally, 1988). Since the five variables of service quality from oth CTM’s customer group and CTM’s staff group of this research s udy were ver 0.8, the reliabilities for the measurement of tangibles, reliability, responsiveness, assurance and empathy as presented in Table 1 were considered to be reliabl . TABLE 1: Reliability Analysi of Servi e Quality Cronbach’s Alpha Tangibles Reliability Responsiveness Assurance Empathy Customer Group (N=282) 0.947 0.909 0.914 0.915 0.932 Staff Group (N=95) 0.925 0.854 0.870 0.861 0.874

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 47 TABLE 3: Overall Satisfaction of CTM’s Fixed line Service ItemCustomer Group (N=282)Staff Group (N=95)Mean Std.Deviation Mean Std.Deviation1. The quality of CTM’s fixed line service 2.99 1.234 4.43 1.196 2. For the appreciation toward CTM’s fixed line service is value for money 3.05 1.255 4.42 1.156 3. CTM closes to your ideal fixed line service supplier 2.84 1.360 4.73 1.380 Importance of service feature Findings from Table 4 point out that the ‘reliability’ dimension (mean = 4.42) has the highest mean value in the survey analysis, followed by ‘assurance’ (mean = 4.23), ‘tangibles’ (mean = 4.21) and ‘responsiveness’ (mean = 4.13). Both the group of respondents perceived the feature of ‘empathy’ (mean = 3.79) as being the least important feature among the five service dimensions. TABLE 4: Importance of Service Features DimensionCustomer Group (N=282)Staff Group (N=95)Sum(N=282+95=377) Mean Ranking Mean Ranking Mean Ranking Tangibles 4.86 1 3.55 4 4.21 3 Reliability 4.82 2 4.02 1 4.42 1 Responsiveness 4.64 4 3.62 3 4.13 4 Assurance 4.70 3 3.76 2 4.23 2 Empathy 4.09 5 3.48 5 3.79 5 Management interview Gap1: Positioning Gap Findings from the current study indicated that CTM’s management has understood what customers are looking for in terms of telecommunications service category and service quality. CTM’s management took customer feedback as an important and valuable input for company

Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 48 development. They put the resources on closely monitoring customer’s satisfaction rate through conducting different surveys with their customers. CTM had also been instrumental in setting up Business Quality Assurance Department, having a dedicated team to follow up on customer feedback with relevant departments. The CEO of CTM mentioned that their management style is top-down, functions well and upward communication channels existed between employees and their supervisors. To illustrate, CTM management says: ‘We will keep on conducting several customer surveys and collecting feedback on a daily, weekly, monthly, quarterly or a yearly basis, especially after the promising activities, in order to find out if our service meets their expectations and problem dialogues on our service.’‘There is a dedicated team in the Business Quality Assurance Department to handle customer’s feedbacks or complaints. Relevant information which includes suggestions or action plan will be sent to relevant department heads for ensuring quick follow up actions.’Gap2: Specifications Gap Management believed that their products fulfilled the requirements for different types of customers effectively. They designed and offered the service products based on the standard of ‘being suitable for the customer’ in which customers could choose the service standards according to their requirements. It is not difficult to understand that companies driven by sales revenue are more focused on being of high value to customer, and are allocating their limited resources to a particular group of consumers. As a result, it meets the needs of lower-end customers who contributed less on sales revenue. As a result of dialogues with CTM’s top managerial staff, it was understood that CTM has tight control on the cost and investment. Any project or product without strong evidence on increasing revenue was not able to convince them for development. However, this created barriers for a company to have quick response on the service products for the customers’ needs and wants, and it also constrained CTM to create competitive advantage in the market before their competitors. To illustrate, CTM management puts forth: ‘The biggest hindrance in providing service quality is cost balance. We need to consider if it is worth investing and is cost effective.’ ‘We would say our service quality is not bad, and is good enough for Macau residents. Customers do not realize this since there are no competitors.’ ‘With regards to the complaints of the low internet speed, we have an investment plan for expanding the internet bandwidth. Our engineers closely monitor customers’ online preference to adjust our internet resources, and users’ satisfaction rate on using internet with speed over 15Mbs has improved.’

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 49‘Recently, we have offered different promotion plans to reduce the prices. For the internet service, we offer a series of speed plans with scale of service charges that allows the customers to choose their plan as per their requirement.’ Gap 3: Delivery Gap It was found that CTM had an enormous challenge on the appropriate allocation of human resources including heavy workload being undertaken by the staff, shortage of manpower that required multi-tasking and the pressure of cost saving on human resource expenditure. Sufficient training, mainly on job was available for employees. However, heavy workload and role ambiguity might have a big impact to foster continued learning as employees have no additional time and are afraid to ‘learn more or take up more’. Moreover, the service environment of CTM requires service staff to assess several systems for implementing the task and/or service order for customer, in which long processing time, tedious procedures and potential human error had impacts on customer satisfaction and staff’s enthusiasm towards their jobs. In addition, staff working in the organization were assumed to have the most direct and updated information for various promotional market campaigns. Moreover, there has been a lack of incentive schemes and unattractive promotion plans for staff and their relatives, service and product plans were not available in the intranet and the staff were required to obtain such information through the service counters in the shops. It was also observed that there was a general tendency that staff could not move forward to promote and recommend company services to others. To illustrate, CTM management says: ‘The rapid economic development in Macau, especially the casinos that offer high salary with promotion opportunities, cause large-scale resignations within the company.’ ‘People who work in CTM have been trained to have excellent work ability. They are required to work independently and under pressure.’ ‘There are no staff rewards and incentive schemes as of now. However, we offered some staff promotion plans for internal staff and their relatives and friends.’ Gap 4: Communication Gap Management claimed that over commitment did not exist in CTM. All the new products and services were fully tested before their launch in to the market. However, they did think that horizontal communications between departments could be enforced or improved. To illustrate, CTM management says: ‘All the new products and services are fully tested before their launch in to the market. We are the number one telecommunication operator in Macau. The problem of propensity to over commit does not exist in our company.’

0Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 50 ‘We assume some departments should work closely, however, certain departments are very self-protective and have low willingness to change.’ ‘Retail marketing did not consult wholesale department before offering the promotion packages to customers.’ CONCLUSIONS This project utilized literature review, survey methodologies from both CTM’s customers and staff by using the SERVQUAL model and one-on-one interviews with the top managerial staff within CTM to examine the customer perceived service quality towards the monopoly’s fixed line market leader – CTM. The study also investigated and evaluated service quality gaps. The recommendations below put forth advise and implications for CTM management and marketers to consider as marketing strategies for improving service quality and enhancing customer satisfaction. Specific suggestions to CTM Establishing a resource management team: The study proves that reliable instrument is the most important dimension for measurement of service quality in the telecommunication industry. CTM has to place its first priority in resource allocation in this particular area in order to improve customers’ overall quality perception towards their fixed line service. It is suggested to set up a Resources Management team for taking up the core responsibilities of reviewing the existing resources in CTM, allocating future resources, suggesting and integrating the resource plan for management’s strategic decision.Service information integration: It was also suggested that CTM should diversify the function of ERP to other core divisions. Diversified and Enlarged ERP systems have several benefits, such as 1) improves efficiency in the process of handling customers’ service order; 2) integrates the service information across an entire organization; 3) facilitates other core divisions to have better planning and arranging network capacity and service products; 4) develops policies and strategic plans efficiently and effectively. It was also put forward that communication is the key to success in any relationship within an organization. The findings from the study also suggest that CTM needs to enhance communication between different departments by holding a monthly interdepartmental meeting, periodical departmental briefings to staff and encourage face-to-face communication.Implementing ‘change’ culture: Top management team must first make it clear what a

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 51new culture looks like. In addition to depicting what the corporate culture is, the more important thing is to show staff core values of the new cultures and make it easy to comprehend, such as who are company’s clients? What are their new needs? Internal and external service quality should be equally important for company and so on. In order to achieve the objectives above, many strategies should be taken from CTM’s perspective. Firstly, it is a necessary prerequisite for staff to recognize the need and strategy to change behavior. It is necessary to organize for the CEO to share the top management’s aspirations towards the company’s strategies, business plans and resource allocations and to explain what strategy a company would adopt to overcome the challenges of upcoming fixed line market liberalization, introduce the purpose of organization restructure and a series of action plans which have to be well prepared to lead CTM to success in the telecommunication business. The core message is that ‘CTM needs changes’ and invites all the staff to join to be a part of this journey. Secondly, it is recommended to promote talented employees who hold new values to key positions, which means the selection criteria of key positions must be consistent with core values of new culture. Furthermore, new rewards and punishments criteria should also be given. What is important here is not the use of these tools themselves, but the pursuit of culture becomes a measure of the scale of each person’s behavior. Moreover, it has also been recommended that reviewing the business process and identifying inefficiencies are key business objectives in individual and departmental performance reviews, for keeping a constant log to ensure the prescribed objective and targets are fulfilled. Moreover, taking corporate restructuring as a way to improve quality is a good strategic direction. Organizational structure should be subordinated to the organizational value. When CTM has undergone major changes in core values, company structure should be adjusted accordingly, in order to support organizational change culture. The relationship between the telecommunication business and its customers is a very specific and complex tie that is formed by various departments and personnel, different events at different times, locations, and contacts between people in different departments and customers. However, each specific department or employee has its own specific tasks and objectives; therefore it is difficult for them to provide services from an overall situation. It is recommended for CTM to change the company’s CRM system, provide relevant departments and personnel to share real-time customer information in order to protect the continuity of work among departments. Meanwhile, it should finally adjust the structure to establish a cross-department, cross-business customer system to ensure providing timely and effective service for customers. Improve overall customer satisfaction: Customer satisfaction is essential in building long-term and profitable relationships, which ultimately lead to customer loyalty and repurchase behavior. From the results obtained through survey research, it is clear that there is still room for improvement for CTM to better serve its customers. It is suggested to provide free trial of telecom products or services to its targeted customers,

Matthew Tingchi Liu, Zhu Zhenghao, Colin and Chang Kit Keng 52 for example, CTM can allow customers to participate in periodic prize draw activities and provide incentives, as a way to increase the awareness of CTM’s new services and products, as well as to potentially increase sale revenue and build up positive corporate image in the community. In addition, with recent developments in the field of technology and new mobile generation, this has led to an increasing penetration rate on the internet. Therefore, keeping this in mind, CTM should develop its comprehensive communication channel though mobile applications and web internet. These channels provide another solution for customer service and improve responsiveness to customer service delivery. Besides, the staff in CTM have been regarded as the best communication channel for the company’s potential customer. The findings from the current study have also been useful in suggesting CTM to set up ‘Incentive Award Schemes for Staff Referrals’, which is a useful way to build and strengthen the market reputation, which would ultimately be beneficial for the business.Comprehensive development in human resource: With the growing competition of human resources in Macau, it is necessary for CTM to develop a strategy to attract new talented employees as well as to retain the potential staff for company’s substantial and long term development. It is suggested that CTM should introduce internship training program, establish a training center for telecommunication knowledge, set up various schemes to encourage continuous learning and develop a strategic human resource plan to overcome the challenges of local competition on talents and workforce.General suggestions to fixed line operators Around the world today, liberalization has become the dominant trend in the telecommunications industry; customers are accustomed to having a high level of service quality in response to their high educational backgrounds. The same holds true for monopoly sellers who provide few product choices with standard service quality which may not be satisfied with various customer preferences nowadays. Although there are a lot of countries which still retain monopolies in fixed line services, it is assumed that they will finally follow the trend of liberalization in the near future. Liberalization of the telecommunication sector around the world would provide policymakers with an unprecedented opportunity to restructure the whole industry. This would also help in overcoming the challenge of deregulation, which is a primary marketing objective of former monopolies. Moreover, telecommunication companies, even the ones with existing monopolies, must establish processes to ensure each department, business process, company resources and individual employee participate well in organization and function as a whole to deliver excellent service to their customer as promised. In addition to this, it is also put forward that a company also needs to have an effective corporate structure and appropriate mechanisms for enhancing working efficiency, delivering quality and reliability of telecommunication services.

Customer’s Perceived Service Quality towards Monopoly Fixed Line Market: A Research Note on Companhia De Telecomunicações De Macau S.A.R.L. (CTM) 53Actually, the government is the rule maker and the major player of the fixed line service deregulation. From the fixed line operator’s perspective, to maximize the operational profit, keeping the status quo is the best way. However, to satisfy customers’ need and to improve service quality, deregulation and the introduction of more competitors to the market is generally a good practice (Van der Wal et al., 2002). Many empirical studies have indicated that deregulation of mobile service has led to an improvement of service quality of the fixed line service (e.g. Eugenio, 2002; Muhammad, 2011); however it is still possible to improve fixed line service quality under a monopolized or quasi-monopolized circumstance with the government’s guidance (Federico, 2001). In CTM’s case, what role the Macau government, which is no longer the major shareholder of CTM, should play has become a critical issue. As mentioned, in order to ensure reliable telecommunications services are available to everyone in both urban and rural areas at reasonable prices, the government usually takes the major role of telecommunication suppliers (Federico, 2001). However, in Macau, the deregulation and reform policy was confirmed and approved by government in June, 2013, the best way to keep CTM’s competitive advantage (as first mover advantage) is to closely corporate with government while it is still the only and strongest fixed line service operator so far. LIMITATIONS AND FUTURE STUDIESDespite the contributions of the study, it has several limitations. This study utilized qualitative research methods, subjective descriptions and as a consequence several biases may occur. The study was conducted based on an entire fixed line service, including Internet Broadband, Fixed line Voice and Private Leased Line service. This may inhibit the generalizability of the findings for overall fixed line service. Future study is recommended to focus on the particular fixed line service products. Because SERVQUAL dimensions primarily deal with customer handling, additional features and items such as ‘Network Quality’, need to be included and examined for their relevance to telecommunication services and perceived customer service quality. On the other hand, the current research adopted one-on-one management interview as one of sources of information used in this case study. This approach does not yield any statistically significant data. Concerns in doing case study evaluations extend from issues of validity to issues of generalization. Results from this case study tend to be highly subjective and it is difficult to generalize results to a larger population. REFERENCEAgyapong, A. & Kobina, F.N. (2012). Service quality and customer choice of mobile telecommunication service providers in Ghana. International Research Journal of Finance & Economics, 100, 139-151. Al-Zoubi, M.R. (2013). Service quality effects on customer loyalty among the Jordanian telecom sector: Empirical

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The 4th Outstanding Achievement Awards forMacao Research in Humanities and Social SciencesTo further promote Macao research and to encourage enthusiastic dedication of scholars and researchers within thefield, the Macao Foundation, the Social Sciences in China Press and the Guangdong Social Sciences Association are jointlyorganizing the 4th Outstanding Achievement Awards for Macao Research in Humanities and Social Sciences.Entry requirementsAll publications (including monographs, papers, research reports, translated works, reference books, editions ofancient books) with topics relating to Macao in the field of humanities and social sciences, published between 1st January2012 and 31st December 2014 are eligible for application. However, members of the Review Committee are not permittedto submit any of their publications.Categories of publicationsThe Awards are presented in each of the following categories: 1) economics and management; 2) politics, law,journalism and sociology; 3) history, philosophy and literature; and 4) linguistics, education and arts.Awards1. Awards are divided into two sections: “Monographs” and “Papers”.2. For each section, there will be four “1st class” awards, four “2nd class” awards, eight “3rd class” awards andtwelve “Honorable Mention” awards.The Review Committee reserves the rights to the allocation of prizes and no prize will be awarded if the qualityof publication does not meet the standard required for an award.PrizesA certificate and corresponding prize amount will be given to the awarded publication.“Monographs” section “Papers” section1st class award MOP 50,000.00 1st class award MOP 25,000.002nd class award MOP 30,000.00 2nd class award MOP 15,000.003rd class award MOP 15,000.00 3rd class award MOP 8,000.00Honorable Mention MOP 10,000.00 Honorable Mention MOP 5,000.00Application Procedurea) An applicant may submit no more than two pieces in each section (“monographs” and “papers”) (the first authoris considered as the sole author of the publication for the purpose of the two-piece quota). Applicants are requiredto submit 5 copies of the completed application form (including the original copy) and 3 copies of the publication(including the original copy). The application form can be downloaded from the websites of the MacaoFoundation (http://www.fmac.org.mo), the Social Sciences in China Press (http://www.csstoday.net) and theGuangdong Social Sciences Association (http://www.gdskl.com.cn).b) Scholars in Macao, Hong Kong, Taiwan and abroad should submit their applications and any relevant materials tothe Macao Secretariat in person or by post (Avenida da Praia Grande N. º 619, Edifício Comercial Si Toi, 13ºAndar, Macau), while scholars in mainland China should submit their applications and any relevant materials tothe Guangdong Secretariat in person or by post (Guangdong Social Sciences Association, 7th Floor, No.4-2,Huanghua Road, Guangzhou, P.R. China, Postal code: 510050).c) For applicants who wish to submit the application by post, it is advised to indicate “The 4th OutstandingAchievement Awards for Macao Research in Humanities and Social Sciences” on the envelope.d) Application period: 1st April 2015 to 31st May 2015 (postmark date on envelopes will be regarded as the date ofsubmission)Review Committee of the 4th Outstanding Achievement Awards forMacao Research in Humanities and Social SciencesDecember, 2014

Euro Asia Journal of Management Issue 43, Vol. 24, No.1/2, December 2014, pp.57-91ATTITUDES TOWARD BRIBERY IN AUSTRALIA: A DEMOGRAPHIC STUDY TERESA HERNANDEZ1andROBERT W. MCGEE2ABSTRACT This study examined Australian attitudes toward bribe taking, using the data from the World Values survey. The sample size was more than 1300 and included a wide range of the Australian population in terms of age and other demographics. Nineteen demographic variables (gender, age, marital status, etc.) were also examined to determine whether certain responses differed by category. The findings indicate that many of the demographic variables did have a high level of significance. Women were found to be much more averse to bribery than were men. Older people were more averse to bribe taking than were younger people. The ethnic group most opposed to bribery was the English-speaking Australian group; east Asians were least opposed. The importance of religion in their lives was not an important variable, although Hindus were the most opposed to bribe taking, whereas Jews and Buddhists were least opposed. Married and widowed people were the groups most opposed to bribe taking; single people were least opposed. Retired people were most strongly opposed to bribe taking; full-time, part-time employees and the unemployed were least opposed. Those in the lower social class were significantly less opposed to bribe taking than were members of the other social classes. Middle income taxpayers were the most opposed to bribe taking; people in the low income group were least opposed. Those who were least happy were significantly less opposed to 1 Florida International University2 Fayetteville State University, Email: bob414@hotmail.com

Teresa Hernandez and Robert W. McGee  bribe taking than were those from the other happiness groups. Those who placed confidence in the police were more opposed to bribe taking than were other groups. Education, institution of employment (workers in the public vs. private sector), size of town, health, extent of confidence in the government, and position on the left-right political spectrum were not important variables. Keywords: bribery, ethics, rent seeking, demographic variables, gender, age, marital status, ethnicity, religion, religiosity, education level, employment status, occupation, social class, income level, size of town, health, happiness, confidence in the police, confidence in the justice system, confidence in government, left-right political spectrum, Australia. INTRODUCTIONOne might think that bribery is always unethical. Studies by the Organisation for Economic Cooperation and Development (OECD, 0) discourage the practice and a number of other studies have viewed bribery in negative terms (Bonucci & Moulette, 00; Cuervo-Cazurra, 00, 00; Darrough, 00; Moran, ; Pacini et al., 00; Scharf, 00). However, a closer examination of the issue reveals that the question of whether bribery is ethical or unethical is not so clear-cut in some cases. For example, bribing a prison guard to release a political prisoner who is being held by a corrupt or evil regime might constitute an ethical act (Roy & Singer, 00). From a utilitarian ethical perspective, bribery would be acceptable in cases where there are more winners than losers. Bribery might be viewed in more positive terms in cases where the money was spent to circumvent bureaucracy or to expedite commerce, and less positively in cases where the bribe-taker was merely being greedy and was using his/her position abusively without providing any corresponding service in exchange for the bribe. Where the bribe results in a positive-sum game, it would be easier to justify on moral grounds than in cases where the result is a zero-sum or negative-sum game. In cases where bribery results in the expansion of commerce and job creation, it might be viewed more positively than in cases where commerce is scared away because of the perception of corruption. One related aspect of this issue is the effect that bribery has on investment, either domestic or foreign. While many potential investors might decide not to do business in a country where bribery is rampant, others might not see the presence of bribery as an insurmountable problem to doing business. They might even view it as a practice that fosters commerce, especially in cases where government inefficiency bogs down business and makes doing business costly and burdensome. Bribery that is viewed as greasing the wheels of commerce might actually result in an increased rate of economic growth if the result is to attract foreign investors and to provide an atmosphere where domestic investors feel that their investments are protected.

Attitudes toward Bribery in Australia: A Demographic Study  This paper reviews the ethical literature on bribery and reports the findings of a survey of opinion in Australia. REVIEW OF THE LITERATUREMany articles and several books have been written about various aspects of bribery. This paper focuses on the ethical literature on the topic. When trying to determine whether bribery is ethical or unethical, a threshold question to ask is which set of ethical principles to apply. Ethicists have several options in their toolkit, and not all ethical systems arrive at the same result in any given situation. Baron et al. () identify and discuss three of the main ethical systems. Graham (00) discusses eight ethical systems. Most ethical systems, when analyzed and closely compared, usually fall within the general categories of utilitarianism, rights theory, or virtue ethics, broadly defined. Virtue ethics goes back to the time of Aristotle (00), if not before. The main thrust of virtue ethics is that an act or policy is good if the result is human flourishing. Utilitarian ethics holds that an act or policy is ethical if the result is the greatest good for the greatest number, or if the winners exceed the losers, or if the result is what economists call a positive-sum game (Brandt, ; Frey, ; Goodin, ; McGee, 0a; Wong & Beckman, ). These various utilitarian views are not quite the same, but they are similar. If a policy or act results in human 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 is ethical. Richard Posner (, ), the American jurist and co-founder of the Law and Economics movement, takes this position. This view has been criticized (McGee, 0a), but it remains a mainstream utilitarian position. Rights theory holds that an act is unethical if someone’s rights are violated, regardless of whether the winners exceed the losers (Baron et al., ; Brandt, ; McGee, 0a, 0b, 0c). 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 (, ), focuses on duty. If someone has a duty and breaches that duty, any such act is considered to be unethical. The Kantian view may be applied to bribery in cases where the receiver of the bribe is an agent who has a duty to the principal to do what is in the best interest of the principal. An agent who acts against the best interest of the principal is acting unethically. Most of the literature on ethical aspects of bribery does not cite philosophers or particular ethical theories, at least not directly. However, much of the literature has an underlying premise that either utilitarian ethics or principles of duty should be applied. Virtue ethics and rights theory also appear in some analyses, although most studies on bribery are done by economists or lawyers, who tend to be utilitarians, at least most of the time.

0Teresa Hernandez and Robert W. McGee 0 Logue (00) believes that bribery is always unethical because it violates absolute moral principles that cannot be compromised. He goes on to say that bribery is basically unfair and results in an inefficient allocation of resources, and frustrates the constructive role of government. Carson () believes that accepting a bribe is always prima facie wrong because it violates duties, but makes some exceptions, such as in cases of conscripted soldiers, some prostitutes and others who are held as virtual slaves. Johnsen (00, 00) applies cost-benefit analysis to determine whether paying a bribe results in a positive-sum game. Shaw () points out that benefits and costs may not be easy to determine. Some scholars assert that bribery may serve a useful function if a bribe acts to grease the wheels of commerce, which makes commerce work more efficiently. Such would be the case where a corrupt government or inefficient bureaucracy can be circumvented by paying someone to 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 a grabbing hand who offers nothing in return for the payment (Colombatto, 00; Egger & Winner, 00; Houston, 00; Johnsen, 00, 00). Wong and Beckman () developed a point 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 (00, 00) and Mauro () found that bribery decreased FDI, whereas Egger and Winner (00) found that bribery acts to stimulate FDI in cases where it acts as a helping hand. Weitzel and Berns (00) found that host country corruption is negatively associated with premiums paid in cross-country mergers. Sanyal and Samanta (00) found that bribery has a negative effect on economic growth. THE PRESENT STUDYThe present study analyzes the opinions on bribe taking of sample populations in Australia. Some demographic variables are also examined. METHODOLOGYThe data used in this study were taken from the Human Beliefs and Values (HBV) surveys. Data for these surveys were collected by social scientists all over the world and cover a wide range of issues relating to perceptions of life, environment, work, family, politics and society, religion and morale and national identity. The present study analyzes the data reflecting attitudes on bribery. The question asked whether the respondent believed that accepting a bribe in the course

Attitudes toward Bribery in Australia: A Demographic Study  of one’s duties was justifiable. Responses were measured on a 0-point Likert scale where  is never justifiable and 0 is always justifiable. Results were compiled overall and some demographic variables were also examined to determine whether differences in belief were significant. The next section reports on the findings. FINDINGSThe next few pages present the findings of the study. GenderA number of ethics studies have examined gender differences. Some studies found that women are more ethical than men (Akaah, ; Beu et al., 00; Brown & Choong, 00; Swaidan et al., 00), while other studies found no significant differences between male and female ethical views (Babakus et al., 00; Luthar et al., ; McDonald & Kan, ; Roxas & Stoneback, 00). A third group of studies found that men were more ethical than women (Barnett & Karson, ; Weeks et al., ). Studies on the ethics of tax evasion have also reached differing results. Some studies found that women were more opposed to tax evasion than men (Gupta & McGee, 00 – New Zealand; McGee & Bose, 00 – Australia; McGee & Guo, 00 – China), while other studies found that men were more opposed to tax evasion than women (McGee & Benk, 0 – Turkey; McGee & Tusan, 00 – Slovakia; McGee, 0d – various). A third group of studies found that men and women were equally opposed to tax evasion (McGee & An, 00 – China; McGee & George, 00 – India; McGee, Petrides & Ross, 0 – Mexico). A few studies have examined ethical aspects of bribery. Mocan (00) found that men were more likely to be asked for a bribe. Torgler and Valev (00) found that women were less likely to justify accepting a bribe. Women were found to be significantly more opposed to bribe taking in comparative studies of the USA, Brazil, Germany and China (Hernandez & McGee, 0a) and Argentina, Brazil and Colombia (Hernandez & McGee, 0b). A study of Egypt found that men were more strongly opposed to bribery than were women (Hernandez & McGee, 0c). Table  shows the statistics for the present study. Females were significantly more opposed to bribe taking than men.

Teresa Hernandez and Robert W. McGee  TABLE 1: Ranking by Gender (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Gender Mean Std. Dev. n  Female . .   Male . .  SIGNIFICANT DIFFERENCES IN MEAN SCORES p value Male v. Female 0.00 AgeAge has been another demographic variable that has been studied in the literature. Most studies have found that older people are more ethical or have more respect for the law than do younger people (McGee, 0d; Ruegger & King, ), although there have been some exceptions (Babakus et al., 00; McGee, 0d; Sims et al., ). Some tax evasion studies have found that older people were more opposed to tax evasion (Gupta & McGee, 00; McGee & Benk, 0; McGee, 0d). Torgler and Valev (00) found that older people were less likely to justify bribery. Studies of the USA, Brazil, Germany and China (Hernandez & McGee, 0a), Argentina, Brazil and Colombia (Hernandez & McGee, 0b) and Egypt (Hernandez & McGee, 0c) found that older people were for strongly opposed to bribery than were younger groups, although in the case of the Egyptian study, the difference was significant only at the 0 percent level. Table a ranks the mean scores by age. The relationship between age and attitude toward bribe taking was linear. The older the age group, the more opposition there was to bribe taking.

Attitudes toward Bribery in Australia: A Demographic Study  TABLE 2a Ranking by Age (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Age Mean Std. Dev. n  0+ . .   0- . .   - .0 .  The ANOVA p value in Table b shows that the difference between groups was significant. TABLE 2: Age and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  . . <0.00 Within Groups ,0. , .0 Total ,. ,0 EthnicityA comparative study of the USA, Brazil, Germany and China found that whites were most strongly opposed to bribe taking, followed by East Asians, Hispanics, half-breed back/white and blacks (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that Caucasians were most opposed to bribe taking, followed by half-breed black/white and black (Hernandez & McGee, 0b).

Teresa Hernandez and Robert W. McGee  Table a ranks mean scores by ethnicity. The group most opposed to bribe taking was the English-speaking Australian group, followed by Europeans, Aboriginal Australians, South Asians (Indian, Hindu, Pakistani, Bangladeshi), Central Asians (Arabic) and East Asians (Chinese, Japanese). TABLE 3a Ranking by Ehnicity (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Ethnicity Mean Std. Dev. n  Australian - English speaking . . ,  European . .   Australian –Aboriginal . .  Asian –South (Indian, Hindu, Pakistani, Bangladeshi) . .   Asian –Central (Arabic) . .   Asian –East (Chinese, Japanese) . .  Table b shows the ANOVA p value to be highly significant. TABLE 3b Ethnicity and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue Between Groups 0.  .0 . <0.00 Within Groups ,. , .0 Total ,. ,

Attitudes toward Bribery in Australia: A Demographic Study  Importance of Religion in LifeA comparative study of the USA, Brazil, Germany and China found that those at both ends of the spectrum had the most opposition to bribe taking, while those in the middle groups had less opposition (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that those who did not hold religion very important in life were slightly more opposed to bribe taking than were those who held religion to be important. However, the difference was significant only at the 0 percent level (Hernandez & McGee, 0b). This variable was found not to be significant in a study of Egypt (Hernandez & McGee, 0c). Table a ranks the mean scores on the basis of religion. Although those who thought religion was very important or rather important in life were more opposed to bribe taking than those who thought religion was not important, the differences in mean scores were not significant. TABLE 4a: Ranking by Importance of Religion (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Importance Mean Std. Dev. n  Very important . .   Rather Important . .   Not at all important . . 0  Not very important . .  The ANOVA p value shown in Table b indicates that the difference between groups is not significant.

Teresa Hernandez and Robert W. McGee  TABLE 4b: Importance of Religion in Life and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  . . 0.0 Within Groups ,.0 , .0 Total ,.0 , ReligionA comparative study of the USA, Brazil, Germany and China found Protestants and Spiritistas to be more strongly opposed to bribe taking, followed by Evangelicals, Muslims, Roman Catholics and Buddhists (Hernandez & McGee, 0a). Religion was not a significant variable in studies of Argentina, Brazil and Colombia (Hernandez & McGee, 0b) or Egypt (Hernandez & McGee, 0c). Table a ranks mean scores on the basis of religion. Hindus were most opposed to bribe taking, followed by Protestants, Christians, Roman Catholics, Orthodox, Jews and Buddhists. TABLE 5a: Ranking by Religion (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Religion Mean Std. Dev. n  Hindu . 0.   Protestant . 0. 0  Christian . 0.0   Roman Catholic . . 

Attitudes toward Bribery in Australia: A Demographic Study  TABLE 5a: (Continued) Ranking by Religion (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Table b shows that the ANOVA p value is significant. TABLE 5b: Religion and Attitudes toward Accepting a Bribe ANOVA Analysis ReligiosityReligiosity was found to not be a significant variable in a comparative study of the USA, Brazil, Germany and China (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that the less religious a person was, the less resistance there was to bribe taking. However, this result was significant only at the 0 percent level (Hernandez & McGee, 0b). An Egyptian study found that religious people were significantly more opposed to bribe taking than were those who were not religious (Hernandez & McGee, 0c). Rank Religion Mean Std. Dev. n  Orthodox . .   Jew . . 0  Buddhist . .  Squares Df Mean Squares FisherF-value pvalue BetweenGroups 0.0  . .0 <0.00 Within Groups ,.0 0 . Total ,.0 0

Teresa Hernandez and Robert W. McGee  Table a ranks mean scores on the basis of religiosity. Those who considered themselves to be religious were most strongly opposed to bribe taking, followed by nonreligious people and atheists. TABLE 6a:Ranking by Religious Person (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Religious Mean Std. Dev. n  A religious person . .   Not a religious person . .   A convinced atheist . .  Table b shows the ANOVA p value to be significant. TABLE 6b: Religious Person and Attitudes toward Accepting a Bribe ANOVA AnalysisSquares Df Mean Squares FisherF-value pvalue BetweenGroups .0  . .0 0.00 Within Groups ,. , .0 Total ,0. ,0

Attitudes toward Bribery in Australia: A Demographic Study  Marital StatusMarital status has been examined in a number of ethics studies. A series of tax evasion studies had mixed results regarding the importance of marital status on the question of tax evasion (McGee, 0d). Torgler and Valev (00) found that married people were less likely to justify accepting a bribe. A comparative study of the USA, Brazil, Germany and China found that married and widowed people were most strongly opposed to bribe taking, followed by separated, divorced, living together as married and single/never married (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that widows were the most opposed to bribe taking, followed by married, separated, living together as married, divorced and single/never married (Hernandez & McGee, 0b). Marital status was not a significant variable in a study of Egyptian attitudes on bribe taking (Hernandez & McGee, 0c). Table a ranks the mean scores on the basis of marital status. Married and widowed people were most opposed to bribe taking, followed by divorced, separated, living together as married and single/never married people. TABLE 7a: Ranking by Marital Status (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Status Mean Std. Dev. n  Married . .   Widowed . .   Divorced . .0   Separated . .   Living together as married .0 . 0  Single/Never married . .0 

0Teresa Hernandez and Robert W. McGee 0 Table b shows that the ANOVA p value is significant. TABLE 7b: Marital Status and Attitudes toward Accepting a Bride ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .00  .0 . <0.00 Within Groups ,. , . Total ,.0 , Education LevelSome tax evasion studies examined the relationship between education level and ethical attitudes toward tax evasion. Different studies arrived at different results. In some cases, the more education a person had, the stronger the opposition to tax evasion. In other cases the exact opposite was true. In a third group of studies, those with a middle level of education were either more opposed or less opposed to tax evasion than were those with either more or less education. A fourth group of studies found no correlation between education and opposition to tax evasion (McGee, 0d). In the case of bribery, Torgler and Valev (00) found that the more education a person had, the less likely they were to justify bribery. A comparative study of the USA, Brazil, Germany and China found that the two groups most opposed to bribe taking were the most educated and the least educated groups (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that the differences in educational level were significant, but there was no discernible trend (Hernandez & McGee, 0b). Education level was not a significant variable in an Egyptian study (Hernandez & McGee, 0c). Table a ranks mean scores on the basis of education level. No clear pattern emerged.

Attitudes toward Bribery in Australia: A Demographic Study  TABLE 8a: Ranking by Highest Level of Eduction (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Level Mean Std. Dev. n Incomplete secondary: university-preparatory type/Secondary, intermediate general qualification . 0.   No formal education . .   Completed (compulsory) elementary education . .  University with degree/Higher education - upper-level tertiary certificate. .0 0 Incomplete secondary school: technical/vocational type/(Compulsory) elementary education and basic vocational qualification . .  Complete secondary school: technical/vocational type/Secondary, intermediate vocational qualification . .  Some university without degree/Higher education - lower-level tertiary certificate . .  Complete secondary: university-preparatory type/Full secondary, maturity level certificate . . 

Teresa Hernandez and Robert W. McGee  Table b shows the ANOVA p value was not significant. TABLE 8b: Level of Education and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  .0 0.0 0.0 Within Groups ,. , .0 Total ,.0 , Employment StatusTorgler and Valev (00) found that self-employed individuals had more opportunities to bribe government officials. A comparative study of the USA, Brazil, Germany and China found that retired people were most opposed to bribe taking, followed by the self-employed, full-time and part-time workers, housewives, students and the unemployed (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that housewives were most opposed to bribe taking, and that students and the unemployed were the least opposed (Hernandez & McGee, 0b). A study of Egyptian attitudes found that retired and fully-employed people were most opposed to bribe taking, and that the unemployed and students were least opposed (Hernandez & McGee, 0c). Table a ranks mean scores based on employment status. Retired people were most strongly opposed to bribe taking, followed by housewives, the self-employed, students, full-time and part-time employees and unemployed.

Attitudes toward Bribery in Australia: A Demographic Study  TABLE 9a: Ranking by Employment Status (Accepting a bribe is: 1 = never justifiable; 10 = always justifiable) Rank Status Mean Std. Dev. n  Retired . .0   Housewife . 0.   Self employed . .   Students . .0   Full time . .   Part Time . .   Unemployed . .  Table b show the ANOVA p value to be significant. TABLE 9b: Employment Status and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  .0 . <0.00 Within Groups ,. , . Total ,. ,

Teresa Hernandez and Robert W. McGee  Institution of OccupationA comparative study of the USA, Brazil, Germany and China found that people who worked in the government sector were most opposed to bribe taking, followed by the self-employed, people who worked in private, nonprofit organizations and those who worked for private firms (Hernandez & McGee, 0a). This variable was not significant in a comparative study of Argentina, Brazil and Colombia (Hernandez & McGee, 0b) and an Egyptian study (Hernandez & McGee, 0c). Table 0a ranks mean scores by institution of occupation. Those who work for public institutions were slightly more opposed to bribe taking than were employees who worked in the private sector. However, as the ANOVA p value in Table 0b shows, the difference between groups was not significant. TABLE 10a: Ranking Insitution of Occupation (Accepting a bribe is: 1 = never justifiable; 10 = always justifiable) Rank Institution Mean Std. Dev. n  Public institution . .   Private business . . 0  Private non-profit organization . .  TABLE 10b: Institution of Occupation and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  . 0. 0. Within Groups ,. ,0 .0 Total ,. ,

Attitudes toward Bribery in Australia: A Demographic Study  Social ClassTorgler and Valev (00) found that the higher a person’s economic class, the less justifiable it was to accept a bribe. A comparative study of the USA, Brazil, Germany and China found that the upper middle class was most opposed to bribe taking, followed by the lower middle class, the working class, the lower class and the upper class (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that those in the middle class had mean scores that were between those of the working and lower class (Hernandez & McGee, 0b). Social class was not a significant variable in an Egyptian study (Hernandez & McGee, 0c). Table a ranks the mean scores by social class. Those in the lower class were significantly less opposed to bribe taking than were the other groups. TABLE 11a: Ranky by Social Class (Accepting a bribe is: 1 = never justifiable; 10 = always justifiable) Rank Class Mean Std. Dev. n  Upper class . 0. 0  Upper middle class . .   Lower middle class . .   Working class . .   Lower class . . 

Teresa Hernandez and Robert W. McGee  Table b shows that the ANOVA p value between groups was significant. TABLE 11b: Social Class and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  .0 . <0.00 Within Groups ,. , . Total ,. , IncomeTorgler and Valev (00) found that individuals with higher incomes were more likely to be asked for a bribe. Income level was not a significant variable in a comparative study of the USA, Brazil, Germany and China (Hernandez & McGee, 0a) and in a comparative study of Argentina, Brazil and Colombia (Hernandez & McGee, 0b). An Egyptian study found that those in the lower income category were more opposed to bribe taking than were individuals in the middle and upper income groups. However, the difference was significant only at the 0 percent level (Hernandez & McGee, 0c). Table a ranks mean scores on the basis of income level. Those in the middle income range were most opposed to bribe taking, followed by those in the high income group. The group least opposed to bribe taking was the low income group. However, the results were significant only at the % level, as is seen in Table b.

Attitudes toward Bribery in Australia: A Demographic Study  TABLE 12a: Ranking by Scale of Income (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Scale Mean Std. Dev. n  Middle income . .   High income . .   Low income . .  TABLE 12b: Scale of income and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .0  . . 0.0 Within Groups ,.0 , .0 Total ,. , Size of TownFor comparative studies of the USA, Brazil, Germany and China (Hernandez & McGee, 0a) and Argentina, Brazil and Colombia (Hernandez & McGee, 0b), people who lived in small towns tended to be more opposed to bribe taking than were people who lived in larger towns. However, the relationship was not quite linear. An Egyptian study found that people who lived in large cities were more strongly opposed to bribe taking than were people in smaller towns (Hernandez & McGee, 0c). Table a ranks mean scores on the basis of size of town where the respondent lives. The ANOVA p value shown in Table b indicates that this variable is not significant.

Teresa Hernandez and Robert W. McGee  TABLE 13a: Ranking by Size of Town (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Size Mean Std. Dev. n  <,000 . . 0  ,000-0,000 . 0.0   0,000-00,000 . . 0  >00,000 . .   0,000-0,000 . .   00,000-00,000 . .   ,000-,000 . . 0  0,000-0,000 . .  TABLE 13b: Size of Town and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  . . 0. Within Groups ,.00 , .0 Total ,. ,

Attitudes toward Bribery in Australia: A Demographic Study  HappinessA comparative study of the USA, Brazil, Germany and China found that those who were very happy and quite happy showed the strongest opposition to bribe taking, while those who were not at all happy showed the least opposition (Hernandez & McGee, 0a). Happiness was not a significant variable for studies of Argentina, Brazil and Colombia (Hernandez & McGee, 0b) and Egypt (Hernandez & McGee, 0c). Table a ranks mean scores on the basis of happiness. Those who were not at all happy were significantly less opposed to bribe taking than were those in the other three groups. TABLE 14a: Ranking by Happiness (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Happiness Mean Std. Dev. n  Very happy . .   Quite happy . .   Not very happy . .   Not at all happy . . 0 Table  b shows the ANOVA p value, which was highly significant. TABLE 14b: Happiness and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  . . 0.00 Within Groups ,.0 , .0 Total ,0.0 ,

0Teresa Hernandez and Robert W. McGee 0 HealthHealth was not a significant factor in a comparative study on the USA, Brazil, Germany and China (Hernandez & McGee, 0a) and in a study of Egypt (Hernandez & McGee, 0c). A comparative study of Argentina, Brazil and Colombia found that healthier people were more averse to bribe taking than were unhealthy people (Hernandez & McGee, 0b). Table a ranks the mean scores on the basis of health. Table b shows that health was not a significant variable. TABLE 15a: Ranking by Health (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Health Mean Std. Dev. n  Poor . .   Good . .   Fair . .   Very good . .  TABLE 15b: Health and Attitudes toward Accepting a Bribe ANOVA AnalysisSquares Df Mean Squares FisherF-value pvalue BetweenGroups .  .0 0. 0. Within Groups ,. , .0 Total ,. ,

Attitudes toward Bribery in Australia: A Demographic Study  Confidence in the PoliceA comparative study of the USA, Brazil, Germany and China found that the two groups that had the most confidence in the police also had the strongest opposition to bribe taking (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that those who placed no confidence in the police were most opposed to bribe taking, while those who placed quite a lot or a great deal of confidence in the police were least opposed to bribe taking (Hernandez & McGee, 0b). Table a ranks mean scores based on the extent of confidence in the police. Those who placed confidence in the police were more opposed to bribe taking than were those who did not place confidence in the police. The difference was significant at the 0% level, as is shown in Table b. TABLE 16a: Ranking by Confidence in th Police (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Confidence Mean Std. Dev. n  Quite a lot . . 0  A great deal . .   None at all . .   Not very much . .  TABLE 16b: Confidence in the Police and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue Between Groups .  .00 .0 0.0 Within Groups ,. ,0 .0 Total ,.0 ,

Teresa Hernandez and Robert W. McGee  Confidence in the Justice SystemA comparative study of the USA, Brazil, Germany and China found that those with the most confidence in the justice system were more opposed to bribe taking than were those with no confidence at all (Hernandez & McGee, 0a). A comparative study of Argentina, Brazil and Colombia found that opposition to bribe taking was higher for the groups who placed little or no confidence in the justice system, and lower for those who placed confidence in the system (Hernandez & McGee, 0b). Table a ranks the mean scores based on the extent of confidence in the justice system. The results were mixed. Those who placed no confidence at all in the justice system were most opposed to bribe taking. Those who placed quite a lot and not very much confidence in the justice system tied for second place in the ranking. Those who placed a great deal of confidence in the justice system were least opposed to bribe taking. TABLE 17a: Ranking by Confidence in the Justice System (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Confidence Mean Std. Dev. n  None at all . .0   Quite a lot . .   Not very much . . 0  A great deal . . 

Attitudes toward Bribery in Australia: A Demographic Study  Table b shows the ANOVA p value to be significant at the  percent level. TABLE 17b: Confidence in the Justice System and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  . .0 0.0 Within Groups ,.0 , .00 Total ,.00 , Confidence in the governmentConfidence in the government was not a significant variable for comparative studies of the USA, Brazil, Germany and China (Hernandez & McGee, 0a) and Argentina, Brazil and Colombia (0b). Table a ranks the mean scores on the basis of confidence in the government. This variable is not significant, as shown in Table b. TABLE 18a: Ranking by Confidence in the Government (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Confidence Mean Std. Dev. n  A great deal . .   Quite a lot . .   Not very much . .   None at all . . 

Teresa Hernandez and Robert W. McGee  TABLE 18b: Confidence in the Government and Attitudes toward Accepting a Bribe ANOVA Analysis Squares Df Mean Squares FisherF-value pvalue BetweenGroups .  0. 0. 0. Within Groups ,. , . Total ,.0 , Left-right Political SpectrumPosition on the left-right political spectrum was not a significant variable in a comparative study of the USA, Brazil, Germany and China (Hernandez & McGee, 0a) and a study of Egypt (Hernandez & McGee, 0c). A comparative study of Argentina, Brazil and Colombia found that centrists were most opposed to bribe taking and leftists were least opposed (Hernandez & McGee, 0b). Table a ranks mean scores on the basis of position on the left-right political spectrum. The ANOVA p value in Table b shows that this variable is not significant. TABLE 19a: Ranking by Lift-Right Political Spectrum (Accepting a bribe is:  = never justifiable; 0 = always justifiable) Rank Spectrum Mean Std. Dev. n  Right . .   Center . . 0  Left . . 

Attitudes toward Bribery in Australia: A Demographic Study  TABLE 19b: Left-right Political Spectrum and Attitudes toward Accepting a Bribe ANOVA AnalysisSquares Df Mean Squares FisherF-value pvalue BetweenGroups .0  . 0. 0. Within Groups ,0. ,0 . Total ,. , Summary of FindingsTable 0 summarizes the findings.TABLE 20: Summary of Findings Overall – Opposition to bribe taking was strong. Gender – Females were significantly more opposed to bribe taking than men. Age – The relationship between age and attitude toward bribe taking was linear. The older the age group, the more opposition there was to bribe taking. Ethnicity – The group most opposed to bribe taking was the English-speaking Australian group, followed by Europeans, Aboriginal Australians, South Asians (Indian, Hindu, Pakistani, Bangladeshi), Central Asians (Arabic) and East Asians (Chinese, Japanese). Importance of religion – The differences of opinion between groups were not significant. Religion - Hindus were most opposed to bribe taking, followed by Protestants, Christians, Roman Catholics, Orthodox, Jews and Buddhists.

Teresa Hernandez and Robert W. McGee  Religiosity – Those who considered themselves to be religious were most strongly opposed to bribe taking, followed by nonreligious people and atheists. Marital Status – Married and widowed people were most opposed to bribe taking, followed by divorced, separated, living together as married and single/never married people. Education Level – Education was not a significant variable. Employment Status – Retired people were most strongly opposed to bribe taking, followed by housewives, the self-employed, students, full-time and part-time employees and unemployed. Institution of Occupation – was not a significant variable. Social Class – Those in the lower class were significantly less opposed to bribe taking than were the other groups. Income Level – Those in the middle income range were most opposed to bribe taking, followed by those in the high income group. The group least opposed to bribe taking was the low income group. However, the results were significant only at the  percent level. Size of Town – was not a significant variable. Happiness – Those who were not at all happy were significantly less opposed to bribe taking than were those in the other three groups. Health – was not a significant variable. Confidence in the Police - Those who placed confidence in the police were more opposed to bribe taking than were those who did not place confidence in the police. The difference was significant at the 0 percent level. Confidence in the Justice System – The results were mixed. Those who placed no confidence at all in the justice system were most opposed to bribe taking. Those who placed quite a lot and not very much confidence in the justice system tied for second place in the ranking. Those who placed a great deal of confidence in the justice system were least opposed to bribe taking. Confidence in the Government – was not a significant variable. Left-right Political Spectrum – was not a significant variable.

Attitudes toward Bribery in Australia: A Demographic Study  CONCLUDING COMMENTSThe present study shows that, although most Australians are firmly opposed to bribe taking, some are more opposed than others. These differences are likely caused by a variety of cultural, historical, psychological, political and religious factors. Some studies could be done to determine what effects these and other demographic variables have on attitude toward bribe taking. Another study that could be done would be a longitudinal study to determine whether attitudes have changed over time. Similar studies could be made of attitudes in other countries and other regions of the world to determine whether different countries or different regions have different views of bribe taking. Not all forms of bribery should be lumped into the same category and automatically labeled as unethical. Studies should be made of the reasons for bribery and the effects it has on the local and national economy. Paying higher salaries to government officials would reduce the urge to seek out bribes, although it would not eliminate the urge completely. Bribery is seen as a salary supplement in some countries. Where that is the case, allowing government officials to supplement their income by taking bribes reduces the need for taxpayers to fund their salaries. It is a form of privatizing the provision of government services. One way to reduce the opportunity for, and incidence of, bribery would be to privatize the provision of some government services, especially those services where bribery is rampant. Opportunities for bribery often result when someone needs government permission to do something. Reducing the occasions where individuals need government permission to do something would reduce the extent of bribery. One such example that comes to mind is the issuance of driver’s licenses in Mexico. While visiting Mexico, one of the authors heard the story about the former Mexican practice of issuing driver’s licenses. In order to receive a driver’s license, individuals had to pass a driver’s test, yet no one seemed to be able to pass until they paid a bribe to the person who was conducting the test. The practice became so bad that the Mexican government abolished the need to take a driver’s test. In present-day Mexico, all one has to do to obtain a driver’s license is pay a small fee. Other cases for reducing the opportunity to solicit bribes must exist. Reform-minded individuals and groups need only look at the services a particular government presently provides, and ask themselves the question, “Can this function be provided by the private sector, and can privatizing the function reduce or eliminate opportunities to solicit bribes?” Of course, there are built-in interest groups that would resist such reforms, and perhaps some government functions cannot be privatized for some reason, but using this approach would result in

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EDITORIAL CORRESPONDENCEAll correspondence including submission should be sent to the following:In Europe, Prof. Nelson António, Escola de Gestão, Instituto Superior de Ciências do Trabalho e daEmpresa (ISCTE), Av. das Forças Armadas, Lisboa, Portugal. Email: nelson.antonio@iscte.ptIn Asia, Dr Carlos Noronha, Faculty of Business Administration, University of Macau, Taipa, Macau,China. Email: fbacn@umac.moBUSINESS CORRESPONDENCEAll correspondence including orders and subscriptions, advertisements, back numbers, and offprintsshould be addressed to Dr Tiffany Lam, University of Macau, Taipa, Macau, China. Email:fbakpl@umac.moSUBSCRIPTION RATESUnited States, Europe, and South America, US$19.50 per year including postageAsia, US$13.50 per year including postageChina and Hong Kong, HK$67 per year including postageMacau, MOP$61 per year including postageORDERING INFORMATIONTogether with the Order Form, send a draft or international money order of the appropriate amountmade payable to ‘Macau Foundation’.PUBLISHER’S INFORMATIONMacau FoundationAv. de Almeida Ribeiro No. 61-75, Circle Square, 7º - 9º andar, MacauTel: (853) 28966777Fax: (853) 28968658Email: ieinfo@fm.org.moHomepage: http://www.fmac.org.moHOMEPAGEhttp://eajm.webnode.com

EDITORIAL CORRESPONDENCEAll correspondence including submission should be sent to the following:In Europe, Prof. Nelson António, Escola de Gestão, Instituto Superior de Ciências do Trabalho e daEmpresa (ISCTE), Av. das Forças Armadas, Lisboa, Portugal. Email: nelson.antonio@iscte.ptIn Asia, Dr Carlos Noronha, Faculty of Business Administration, University of Macau, Taipa, Macau,China. Email: fbacn@umac.moBUSINESS CORRESPONDENCEAll correspondence including orders and subscriptions, advertisements, back numbers, and offprintsshould be addressed to Dr Tiffany Lam, University of Macau, Taipa, Macau, China. Email:fbakpl@umac.moSUBSCRIPTION RATESUnited States, Europe, and South America, US$19.50 per year including postageAsia, US$13.50 per year including postageChina and Hong Kong, HK$67 per year including postageMacau, MOP$61 per year including postageORDERING INFORMATIONTogether with the Order Form, send a draft or international money order of the appropriate amountmade payable to ‘Macau Foundation’.PUBLISHER’S INFORMATIONMacau FoundationAv. de Almeida Ribeiro No. 61-75, Circle Square, 7º - 9º andar, MacauTel: (853) 28966777Fax: (853) 28968658Email: ieinfo@fm.org.moHomepage: http://www.fmac.org.moHOMEPAGEhttp://eajm.webnode.comTHANK YOU TO REVIEWERSThe Editors of EAJM gratefully acknowledge and thank the scholars listed below who havecontributed their time and effort to review manuscripts for the 2013 and 2014 issues, in ensuringthe high quality of the journal. We regret any inadvertent omissions.Sow Hup ChanTeresa ChuJavier CuervoJenny GuanJacky HongPornkasem KantamaraSiew Huat KongKim KuokPhilip LawAdrian LeiMurray LynnLancy MacSusan RenTony SamSimon SoPriscilla TamAntónio Teixeira

ORDER FORMName: ____________________________________________Position: ____________________________________________Company: ____________________________________________Address: ________________________________________________________________________________________Telephone: ____________________________________________Fax: ____________________________________________E-mail: ____________________________________________Signed: ____________________________________________Date: ____________________________________________Please enter my subscription to Euro Asia Journal of Managementfor:1 year (2 issues)2 years (4 issues)3 years (6 issues)starting issue: _______________Please send a draft or international money order of the appropriateamount made payable to MACAU FOUNDATION to thefollowing person and address:Dr Tiffany LamFaculty of Business AdministrationUniversity of MacauAv. Padre Tomás PereiraTaipa, MacauTel: (853) 8822-4174 (Direct line)E-mail: fbakpl@umac.mo

SUBMISSION GUIDELINESAuthors are requested to submit their work in accordance with the following guidelines so as tofacilitate the review process.1. Manuscripts submitted, written in English, should be original and not published or under consideration elsewhere unlessauthorized by the editorial board.2. Each manuscript submitted will be reviewed by the editorial board for its general suitability. If judged to be suitable, adouble blind review process by two reviewers will take place. The editorial board, based on the suggestions given by thereviewers, will decide whether the manuscript should be rejected, revised, or accepted.3. The scholarly peer-reviewed article should normally be between 4,500 to 7,500 words including references, footnotes,tables, figures, and their captions. Include an abstract of approximately 100 words and information about the name of theauthor(s), affiliation, address, contact details, and email. The name of the author(s) should not appear within the articletext.4. An electronic version of the manuscript in a format compatible with the Windows environment should be submitted viaemail to Prof. Nelson Antonio ( in Europe: nelson.antonio@iscte.pt) or Dr Carlos Noronha (in Asia: fbacn@umac.mo).5. Sections and sub-sections should be clearly differentiated in a logical way. Sections should be typed in bold capitalswhile sub-sections are typed in bold lower case letters. Avoid the use of more than two levels of sections.6. Tables, charts, and figures should fit the journal’s page size and clearly labeled and captioned with headings andnumbers (e.g. Table 1, Figure 1, etc.). Instructions should be given on putting them in the text (e.g. insert table 1 abouthere).7. All mathematical notations, numbers, and symbols must be typewritten.8. The manuscript should be typed double-spaced, font size 12.9. Referencing is similar to the Harvard system. Include bibliographic information in the ‘References’ only materials citedin the text. Avoid the use of footnotes and endnotes whenever possible.10. Citation and reference guidelines:Single author: Roth (1995) / (Roth, 1995)Two authors: Snow and Herbiniak (1980) / (Snow & Herbiniak, 1980)More than two authors: Taylor et al. (1996) / (Taylor et al., 1996)With page numbers: Roth (1995: 201-202) / (Roth, 1995: 201-202)Same year’s papers: Harvey (1997a, 1997b) / (Harvey, 1997a, 1997b)Multiple papers: (Pfeffer, 1994; Poole & Jenkins, 1996; Taylor et al., 1996)Book: Chandler, A.P. (1990). Scale and Scope. Cambridge, MA: Belknap.Multiple authors: Spencer, A.M. & Hazard, H.A. (1988). International Competitiveness.Cambridge, MA: Ballinger.Article in edited volume: Murphy, L.R. (1988). Workplace interventions for stress reduction andprevention. In Cooper, C.L. & Payne, R. (eds.) Causes, Coping andConsequences of Stress at Work. Chichester: John Wiley.Non-English language: Maekawa, K. (1993). Gendai Kigyo Kenkyu no Kiso (Basic Research on ModernBusiness Enterprises). Tokyo: Tokyo Keizai Shinposha.Journal article: Tushman, M & Anderson, M. (1986). Technological discontinuities andorganizational environments. Administrative Science Quarterly, 31, (3), 83-92.Conference presentation: Gill, J. & Butler, R. (1997). Trust in the dynamics of joint venture partnerselection and operation. Paper presented to the 12th LVMH Conference:Partnerships and Joint Ventures in Asia, February 7-8, Fontainebleau: INSEAD.Thesis: Conrad, L. (1999). Control issues in the regulation of privatized industries: Acase study of the gas industry. Unpublished PhD thesis, University of Essex.Magazine article: Asiaweek (1999). Designs on the future. April 23, 56-58.Newspaper: Joong-Ang Ilbo (Central Daily News) (1997). July 14.11. A pdf offprint file and a complete copy of the relevant journal will be sent to the author about four weeks afterpublication.12. Once accepted and published by EAJM, it is assumed that the author(s) agree to transfer copyright of the work to theMacau Foundation including full and exclusive rights to publication in all media. However, the author(s) retain the rightto reprint their article, after publication in EAJM, in any work without the need of further permission in writing from theMacau Foundation.13. Photocopies of articles published in EAJM are allowed for personal academic and classroom use.