Global Business System Research Articles

Examining financial distress of the Vietnamese listed firms using accounting-based models.

Financial distress is generally considered the most severe consequence for firms with poor financial performance. The emergence of the Covid-19 pandemic has adversely impacted the global business system and exacerbated the number of financially distressed firms in many countries. Only firms with strong financial fundamentals can survive extreme events such as the Covid-19 pandemic and the ongoing Russia-Ukraine conflict. Vietnam is no exception. However, studies examining financial distress using accounting-based indicators, particularly at the industry level, have largely been ignored in the Vietnamese context, particularly with the emergence of the Covid-19 pandemic. This study, therefore, comprehensively examines financial distress for 500 Vietnamese listed firms during the 2012-2021 period. Our study uses interest coverage and times-interest-earned ratios to proxy a firm's financial distress. First, our findings confirm the validity of Altman's Z"- score model in Vietnam only when the interest coverage ratio is used as a proxy for financial distress. Second, our empirical findings indicate that only four financial ratios, including EBIT/Total Assets, Net Income/Total Assets, Total Liabilities/Total Assets, and Total Equity/Total Liabilities, can be used in predicting financial distress in Vietnam. Third, our analysis at the industry level indicates that the "Construction & Real Estates" industry, a significant contributor to the national economy, exhibits the most significant risk exposure, particularly during the Covid-19 pandemic. Policy implications have emerged based on the findings from this study.

The Role of the Total-Quality-Management (TQM) Drivers in Overcoming the Challenges of Implementing TQM in Industrialized-Building-System (IBS) Projects in Malaysia: Experts’ Perspectives

Total quality management (TQM) is a systematic management technique for developing a process-driven culture inside an organization to achieve quality and customer and employee satisfaction. TQM has started to impact global business systems, and is extensively regarded as a management “revolution”. The implementation of TQM in the industrialized building system (IBS) in Malaysian projects has not been treated in much detail, although it is essential. This research intended to assess TQM adoption in IBS projects and identify how TQM drivers will help to overcome TQM-implementation challenges. This study utilized the mixed method by developing a semi-structured interview and survey, while the respondents were experts from TQM and IBS consulting firms. The content-validity approach was used, depending on 14 interviews and 28 responses to a distributed questionnaire. The findings indicate that TQM adoption of IBS projects is extremely poor. According to experts, local firms are still unable to execute TQM because they are reluctant to implement the TQM system as a strategy implementation across the construction process. Furthermore, according to the content validity ratio (CVR), there was an agreement that TQM would provide substantial benefits to IBS projects, such as offering cooperative associations, excellent communication, enhanced customer gratification, cost reductions, and productivity improvements. This study provided practical evidence of the fact that if the organizations adopted these 23 drivers of TQM they could overwhelm the challenges of TQM implementation in IBS projects. Thus, the stated factors were trustworthy, as indicated in the transcripts of interviews, and relying on the plurality of expert assessments. This study offers a valuable list of challenges and drivers for managers of the projects as guidelines to help them adopt TQM in IBS projects.

COVID-19 Pandemic and It's Impact on Global Food Systems and Business Systems

COVID-19 Pandemic and It's Impact on Global Food Systems and Business Systems

Disrupting International Trade: Covid-19 Pandemic and It's Impact on Global Food Systems and Business System

Disrupting International Trade: Covid-19 Pandemic and It's Impact on Global Food Systems and Business System

Building a new resilience

Purpose The purpose of the viewpoint is to examine the various ways in which the pandemic has exposed structural vulnerabilities in global business infrastructures that have long existed and been long ignored. It urges business leaders not to return to a “new normal” but make fundamental changes to ensure that their businesses are truly resilient and can withstand future threats more effectively. Design/methodology/approach The viewpoint looks at the various kinds of vulnerability to which businesses are exposed – such as supply chain, human capital, cyber security and climate change – and proposes ways to ensure that businesses, as well as shareholders and government entities work together to build true resilience. Findings At its core, the viewpoint exposes the various ways in which businesses have turned a blind eye to vulnerabilities that have always lurked just below the surface and suggests. The argument is that to secure the long-term future of our global business system, we can no longer remain oblivious to fundamental weaknesses in our infrastructures. Research limitations/implications The viewpoint looks selectively at the available data and is, therefore, by definition, subjective and non-comprehensive. Practical implications If businesses and shareholders truly take the recommendations of this viewpoint to heart, we can build a more resilient future through long-term investments in risk management infrastructures of all kinds that will secure a more prosperous and stable future. Social implications Developing a more resilient and stable global business infrastructure will help reduce the business volatility deriving from last minute responses to predictable threats. This will, in turn, help provide more stable, fulfilling employment, especially in developing countries that will act as a fly wheel for the secure development of human potential around the world. Originality/value While there has been much speculation of what the “new business normal” will look like once the pandemic has been conquered, this is, the author believes, the first piece to look concretely on how we can not only “build back better” but build back more soundly for the long term.

The UK Supreme Court’s Approach to Standard Essential Patent Protection in Unwired Planet v Huawei — Balancing tensions between patents and standards as well as between global business and national patent systems – an international conundrum

The UK Supreme Court’s Approach to Standard Essential Patent Protection in Unwired Planet v Huawei — Balancing tensions between patents and standards as well as between global business and national patent systems – an international conundrum

CONFLICT OF LIGHT SOCIETY AND RELIGION: FROM 11 SEPTEMBER OF NEW YORK TO THE BLACK FRIDAY OF PARIS

The proposed article highlights the secular and religious conflict in the context of modern Western society in the concept of Jurgen Habermas and Daniele Hervieu-Leger. An assessment is given of the problem of the integration of Muslim communities in the French society of the late 20th century, and examples are given. Particular attention is paid to the crisis of secular regulation of religion in modern society. The German sociologist and philosopher Jurgen Habermas notes the complex intertwining of the secular and religious in the events and reactions of September 11, 2001. If the religious motivations of the actions and beliefs of terrorists that have made a lethal weapon civilian airliners with passengers, sending them to the symbol of the international global business system – the twin towers of the World Trade Center, leaves no doubt. All the more surprising was the reaction to this extraordinary event, which contained a significant religious component in the official events and reactions of the civil society. In this context, the opinion of the French sociologist Daniele Hervieu-Leger is close, which analyzes the problem of the regulation of religious organizations by secular French society and sees the reason for its dysfunction in the disparity between the model of “religious organization” adopted by the secular state. Islam is the first religion in France 1990–2000, which does not fit in with the traditional for French domestic politics, and the problems of interaction of believers in a secular society (administration, school, etc.) are only growing. In the fifteen years that have elapsed since the time when Jurgen Habermas delivered his speech, the situation, on the one hand, has changed and worsened, on the other, fully confirms the conclusions made by the philosopher. In light of the problem of “invasion” of refugees, the predicted, but occurred with the complete unpreparedness of the French authorities and law enforcement agencies to react to it promptly, the terrorist act of “Black Friday November 13, 2015” – once again demonstrated the clash of religious and secular discourses. The European symbolism of the “bad name” of Friday the thirteenth, which does not have direct symbolism in the Muslim and Jewish world, used by the developers of the terrorist act, was designed to fuel panic in the European thinking ordinary citizen – a potential victim of the terrorist attack. The material is provided useful for comparative studies of the religious situation in Russia and Western Europe.

Electronic Currency: The Potential Risks to National Security and Methods to Minimize Them

Introduction Due to the rapid developments in spheres of financial innovation and information technologies, world space is being transformed into a global business system (Akopova and Przhedetskaya, 2016; Boldeanu and Tache, 2015; Dmitrishina and Uskov, 2015; Epifanova et al., 2015; Fatai, 2015; Rusanov et al., 2015; Rupeika-Apoga and Nedovis 2015; Thalassinos et al., 2013; Thalassinos and Stamatopoulos, 2015; Thalassinos, 2007). The volume of electronic payments in recent years has grown significantly with the introduction of computers and information technology into virtually all spheres of daily activity. The volume of e-commerce in Russia in 2013 reached $ 13 bin, an increase of 35% as compared to 2012. At the end of 2013 about 7.2 million people in Russia have used e-wallets for payments and mutual settlements. The market volume of electronic purses is estimated at $9 billion in 2015, with an outlook to its exponential growth. Dynamic changes in the world processes, particularly in the virtual economy sphere pose challenges to the national security system. Rationale According to the Decree of the President of the Russian Federation as of 31.12.2015, No 683 "On the Russian Federation National Security Strategy" national security--is a state of security for the individual, society and state from internal and external threats, which provides a realization of the constitutional rights and freedoms, decent quality of life, sovereignty, independence, statehood and territorial integrity, as well as sustainable economic and social development of the Russian Federation. National security also includes information security. The National Security Strategy it is stated that amongst the main strategic risks for the economic sphere of Russian Federation in long term are: high dependence on the external economic environment, the lag in the development and implementation of advanced technologies, the vulnerability of the national financial system from actions of non-residents, as well as speculative foreign capital. In this regard, the system is required to provide protection mechanisms, including the regulatory, legal and organizational support of the development of economic processes that meet modern international realities and minimize the risks of illegal activities. Main issue is the balance between the state measures, which can potentially harm the virtual economy, and legislation enabling participants to carry out operations with virtual currency for criminal purposes. The economic system is dynamic, committed to the development and includes the use of new technological opportunities. This aspect has led to the need for continuous improvements in the national security measures. In particular, the emergence of virtual currencies (cryptocurrency) is actively discussed globally, the most famous of these is the Bitcoin. The Bitcoin is widely spread in many countries, competing with the national currencies, such the euro and the dollar. This Bitcoin is not secured by any assets, and is not tied to any world currency--its rate is determined by supply and demand, making Bitcoin exchange rate volatile, yet objective at the same time. All Bitcoin transactions records are kept in the public domain, but without information disclosure of the actual participants, turning this innovative payment instrument into one of the mediums facilitating criminal activity. Currently, every 10 minutes 25 new Bitcoins are added to the network. In other words, if the user runs a special program his/her computer solves a mathematical problem. Correct solution will earn some amount of Bitcoin to the user. The exchange rate of Bitcoin is unstable, last year it ranged from $100 to $1100, with recent months level about $600. According to official statistics, the total volume of issued Bitcoin is estimated at $8 billion. Legal status of cryptocurrency, despite the widespread dissemination and use of the Internet, is not legally secured and requires detailed consideration not only by lawyers and economists, but first and foremost by software engineers. …

An Analysis of Historical Transformation of an IT Giant Based on Sound Strategic Vision

INTRODUCTION Company Background and IT Industry IBM is short for International Business Machines. It is also known as Big Blue. IBM is considered one of the world's biggest Information Technology Company. In the 2009 Fortune 500 list, the company is ranked 14th best company in the world. It also ranks as the 28th best of global companies on the 2009 Forbes Global 400 list. IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. It is difficult to find a company that deals in so many areas. IBM faces intense competition from other major players in the industry such as Microsoft for desktop productivity application, Oracle for database products, and Cisco for cloud computing (IBM at 100, 2010). Even though being the second most profitable company in the world in 1990, IBM began posting considerable losses between 1991 and 1993. IBM lost a staggering $16 billion. Mainframe computers were the cornerstone of IBM till the '90s, which was the source of almost half of IBM's revenues. But at the time other companies such as Compaq and Dell gave priorities to interconnect mainframe, midrange and increasingly mobile personal computers with distributed data sources and applications that led to fewer sales of IBM's mainframe computers. The company was originally founded as the Tabulating Machine Company by Herman Hollerith; it was renamed and incorporated by Thomas J. Watson as IBM when Tabulating Machine Company was merged with International Time Recording Company and the Computing Scale Corporation in 1911. Presently, it is known as International Business Machine Corporation. IBM has operations in more than 170 countries; it has customer /client relationships with more than 219 companies such as 3Com, VMware, NVidia, and the like. IBM develops and manufactures information technology related products and services that help its clients to deliver business values and be more innovative. The company maintains its operations through its five key segments: Global Technology Services (GTS) unit, Global Business Services (GBS) unit, Systems and Technology unit, Software unit and Global Financing unit. Through the Global Technology Services unit, IBM provides critical information technology infrastructure services and business process services that help clients to integrate resources for continuous innovation. The Global Business Services unit provides professional consulting services and application outsourcing services which is intended to deliver business value for its clients. The System and Technology unit provides solutions for business clients that need advanced computing power and storage management. The Software unit provides middleware such as Web Sphere, Tivoli and operating systems that can be used to enhance the capabilities of a business's IT infrastructure. Additionally, the company assists its internal and external clients with financing through its Global Financing unit. IBM encourages people from diverse background to work for the company. It has employed 399,409 employees worldwide and five of its researchers have received Nobel Prizes. IBM reported revenue of $95.757 billion and total asset of $109.0 billion for full-year 2009. Samuel J. Palmisano now serves as the current President and Chief Executive Officer of IBM. The company is trading in New York Stock Exchange under the name of IBM (Bryan, 1990). Motivating Factors Under the leadership of Thomas Watson Jr., IBM became the leading player in the growing field of Information technology. IBM products such as its mainframe computers were universally considered as the best solutions to a variety of problems. The Company became so successful that it became the target of US Government's antitrust suits by the mid 1960s. IBM's domination started to dwindle from the early 1990s. …

Strategic Analysis of Inter-Organizational Systems Informatization Development in Croatia in Terms of Electronic Business

The internal and external key factors of increased performance in business activities and processes within micro, meta, macro, global and mega business systems are represented through investments in information technologies across intelligent interorganizational systems that enforce a more informational “intellectual” business system within the corporate environment. The key factor of added value and optimal business resource management as well as the development of infrastructure and superstructure is the recognition of strategic development of inter-organizational information in terms of connection with inter-organizational systems. Accordingly, we’ll approach this scientific discussion that analyzes the mentioned factors, and above all information technology, assuming a new paradigm standing point regarding the informatization of business systems, highlighted by an intensive evolution of strategic approaches to the development of informatization in interorganizational systems and their link to the development of electronic business. Under these conditions, business activities and process management are now depending, more than ever, on an appropriate computer supported business network that improves the performance of information technologies using intelligent solutions that encourage new levels of informatization. The first step, upon defining the best development strategies of business systems informatization in Croatia in terms of a more efficient and high-quality connection within the inter-organizational system, is to analyze the business system informatization conditions and advantages in order to ensure modern information technologies like those used in developed countries. Croatia’s position regarding business systems informatization and their actuation within inter-generational systems is assessed according to the research conducted on the level of information technology and electronic business applications. A strategic matrix is used to analyze the strategic approaches and development phases of business system informatization strategies. In regards to the development phase and application, the latter assigns strategies of information technologies practice to the four quadrants of the matrix. Appropriate levels of development of electronic business are allocated to every informatization strategy, whereas different levels can correspond to the same style of informatization strategy, and business systems informatization can be associated with different levels of development of electronic businesses. Croatian organizations are positioned in the appropriate quadrant of the informatization development strategic matrix, along with the corresponding level of electronic businesses. When analyzing the level of development and application of information technologies and electronic businesses of Croatian organizations, the features of every single level are being considered and compared. The key paradigm features of a transition to a higher level within the inter-organizational system, in terms of informatization opportunities and methods, are being evaluated. The synergic influence of informatization technologies development factors towards processes, goals and performances of inter-organizational systems are being modeled according to the analyses and fusion of different levels of informatization strategies and electronic business development.

Interview with Peter Smith & Tom Cockburn of the Leadership Alliance Incorporated

As global business systems expand and become more complex, challenges of effective direction and leadership in global business grow in the same way. IGI Global recently announced the January 2013 release of Dynamic Leadership Models for Global Business: Enhancing Digitally Connected Environments written by Peter A.C. Smith and Tom Cockburn. This book highlights the leadership abilities needed to become an effective professional in business environments. Peter A.C. Smith is President and CEO of the Leadership Alliance Incorporated, a skilled consortium of international authorities who service the needs of public and private sector organizations worldwide. His co-author Tom Cockburn is a Senior Associate at the Leadership Alliance. IGI Global recently conducted an interview with these gentlemen in regards to their forthcoming publication and their unique views of global business leadership.

Analysis of Sustainability, Growth, and Development of a Leading Microfinance Institution in Bangladesh-Case Study on TMSS

Analysis of Sustainability, Growth, and Development of a Leading Microfinance Institution in Bangladesh-Case Study on TMSS

The next generation Grid: an infrastructure for global business systems

This paper traces the evolution of the Grid and discusses the potential of the Grid as a future infrastructure adapted to the dynamics of global business systems – the global supply chain. Technology challenges facing global business systems are framed in volume (scale), real-time distribution, and real-time universal access to the visual state of the global business process and its associated physical and financial workflow. The future vision of the next generation grid as a an infrastructure for service oriented knowledge utilities makes the Grid a candidate infrastructure to address the challenge associated with the dynamics of global business systems – the global supply chain.

Managing in a Changing World: From Multiculturalism to Hybridization—The Production of Hybrid Management Cultures in Israel, Thailand, and Mexico

Executive Overview Stories of local managers working for global corporations reveal that the standard multicultural approach no longer suffices to describe what is occurring at the borders of the global business system. Local managers retain local managerial culture even as they are indoctrinated into the culture of the corporations. The resulting hybrid forms of management should be studied by corporations. Interviews with Thai, Mexican and Israeli managers of two global corporations headquartered in Sweden and the US exemplify this hybridization.

Dragon multinationals: New players in 21st century globalization

This review article starts from the question: how does the global business system appear to a challenger firm, and how have challenger Multinational Enterprises (MNEs) from formerly peripheral areas such as the Asia Pacific established themselves successfully, against the sometimes fierce resistance of incumbents? To answer this question, the review develops an argument concerning the pluralistic character of the process of globalization, as contrasted with the conventional account that sees global processes creating uniformity and convergence. This alternative account is based on a review of the experiences of latecomer and newcomer MNEs, particularly those from the Asia Pacific—such as Acer, Ispat International, Li & Fung and the Hong Leong Group—that are dubbed “Dragon Multinationals.” I argue that the innovative features that these MNEs share, such as their accelerated internationalization, strategic innovation and organizational innovation, fit particularly well with the characteristics of the emergent global economy as one of complex inter-firm linkages. The core proposition of the review is that this complementarity between the characteristics of the emergent global economy and latecomer and newcomer strategic and organizational innovations is what drives the remarkable success of these Asia Pacific firms in establishing themselves as serious international players. Such a proposition carries implications for the process of globalization as well as for the dominant frameworks utilized in International Business. The review argues that Dragon Multinationals adopt a different perspective to the resources accessed through internationalization, and that this requires a rethink of the criteria normally utilized in resource-based accounts of strategy. The challenger firm internationalizing in order to access resources also poses a challenge to the dominant OLI (ownership, locational, internalization) account of multinational advantage. Thus it is argued that the question posed at the outset goes to the core of the IB frameworks, and thereby counts as one of the ‘big questions’ that should guide research in IB in the 21st century.

ВИЗНАЧЕННЯ МЕЖ ГОСПОДАРСЬКОГО КОНТРОЛЮ В УМОВАХ ГЛОБАЛІЗАЦІЇ ЕКОНОМІКИ

Boundaries of business control have been outlined as well as the state control functions under conditions of global business system establishment have been determined

The Chinese century: the rising Chinese economy and its impact on the global economy, the balance of power, and your job

By 2015, China may well have the world's largest economy. In Chinese Century, Oded Shenkar shows how China is restoring its imperial glory by infusing modern technology and market economics into a non-democratic system controlled by the Communist party and bureaucracy. Shenkar shows why China's quest for global success differs radically from predecessors such as Japan, India, and Mexico... why it represents a fundamental restructuring of the global business system... and why it will transform the roles of participants in the global economy. He previews tomorrow's new competitive ground rules, terms of employment, and consumption patterns, and shows how Chinese ascendancy is redrawing political, economic, and social battle lines. Learn why the U.S. is most vulnerable to China's ascent... how China's disregard for intellectual property creates sustainable competitive advantage... how China's growth impacts global businesses and individual purchasing decisions. Above all, Shenkar shows what you must do to survive and prosper in The Chinese Century.

Creating and sharing knowledge within a transnational team—the development of a global business system

By mean of transnational teams, local knowledge of business units can be leveraged to a global level for the development of common global business solutions in the multinational corporation. We investigate this increasingly valuable means of supporting the creation and sharing of knowledge. Empirical evidence from a case study of a transnational team identifies socialization of team members as perhaps primary for efficient creation and sharing of knowledge, and information technology as secondary.

The art of peer review

(2002). The art of peer review. Building Research & Information: Vol. 30, Global construction business systems, pp. 475-477.

False dichotomies: do current theorists understand interdisciplinarity and science?

(2002). False dichotomies: do current theorists understand interdisciplinarity and science? Building Research & Information: Vol. 30, Global construction business systems, pp. 470-474.