asia-pacific economies: challenges along the road from self reliance to global engagement

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This article was downloaded by: [Universitat Politècnica de València] On: 15 October 2014, At: 04:04 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Journal of Asia-Pacific Business Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/wapb20 Asia-Pacific Economies: Challenges Along the Road from Self Reliance to Global Engagement Riad A. Ajami PhD Published online: 11 Oct 2008. To cite this article: Riad A. Ajami PhD (2008) Asia-Pacific Economies: Challenges Along the Road from Self Reliance to Global Engagement, Journal of Asia-Pacific Business, 9:1, 1-5, DOI: 10.1080/10599230801971234 To link to this article: http://dx.doi.org/10.1080/10599230801971234 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or

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This article was downloaded by: [Universitat Politècnica de València]On: 15 October 2014, At: 04:04Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH,UK

Journal of Asia-Pacific BusinessPublication details, including instructions forauthors and subscription information:http://www.tandfonline.com/loi/wapb20

Asia-Pacific Economies:Challenges Along the Roadfrom Self Reliance to GlobalEngagementRiad A. Ajami PhDPublished online: 11 Oct 2008.

To cite this article: Riad A. Ajami PhD (2008) Asia-Pacific Economies: ChallengesAlong the Road from Self Reliance to Global Engagement, Journal of Asia-PacificBusiness, 9:1, 1-5, DOI: 10.1080/10599230801971234

To link to this article: http://dx.doi.org/10.1080/10599230801971234

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of all theinformation (the “Content”) contained in the publications on our platform.However, Taylor & Francis, our agents, and our licensors make norepresentations or warranties whatsoever as to the accuracy, completeness,or suitability for any purpose of the Content. Any opinions and viewsexpressed in this publication are the opinions and views of the authors, andare not the views of or endorsed by Taylor & Francis. The accuracy of theContent should not be relied upon and should be independently verified withprimary sources of information. Taylor and Francis shall not be liable for anylosses, actions, claims, proceedings, demands, costs, expenses, damages,and other liabilities whatsoever or howsoever caused arising directly or

indirectly in connection with, in relation to or arising out of the use of theContent.

This article may be used for research, teaching, and private study purposes.Any substantial or systematic reproduction, redistribution, reselling, loan,sub-licensing, systematic supply, or distribution in any form to anyone isexpressly forbidden. Terms & Conditions of access and use can be found athttp://www.tandfonline.com/page/terms-and-conditions

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Journal of Asia-Pacific Business, Vol. 9(1) 2008Available online at http://japb.haworthpress.com

© 2008 by The Haworth Press. All rights reserved.doi:10.1080/10599230801971234 1

WAPB1059-92311528-6940Journal of Asia-Pacific Business, Vol. 9, No. 1, March 2007: pp. 1–5Journal of Asia-Pacific BusinessEditorialJournal of Asia-Pacific Business

EDITORIAL

Asia-Pacific Economies: Challenges Along the Road from Self Reliance to Global

Engagement

Sixty years ago India became a state. Its leaders and state builders,particularly Gandhi and Nehru embraced economic socialism and selfreliance. They envisioned a public sector as the engine for economicgrowth, development and transformation. Today, there is a growingrealization within India’s governing and economic circles that a state-centric economic model is no longer adequate within a competitive globalmarket place. India's corporate leaders and decision makers suggest thatby the year 2015 India could be an economic power house and could bythen rival the US economically. More and more Indians in the corporatesector are optimistic about India’s prospect for growth and economicdevelopment. They are confident that a balance between globalization andlocalization will allow India to become such an economic power house,matching the American GDP.

While the metrics of economic growth measured in terms of GDP andexport competitiveness are indeed significant and impressive, there areskeptics who are concerned about the depth of India’s economic transfor-mation and the power of these economic benefits to reach larger segmentsof India’s population. India’s Prime Minister Manmohan Singh, amongothers, believes the country needs to achieve social justice and economicimprovement among the lower strata of the Indian population along withthe newly found economic growth. The optimists and advocates of priva-tization argue that unleashing the power of entrepreneurs and private

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2 JOURNAL OF ASIA-PACIFIC BUSINESS

enterprise will enhance the productivity of Indian firms and result in aspill over effect that will benefit the disenfranchised and disadvantagedsegments of the Indian population. The pessimists on the other hand,while acknowledging this new vibrancy within the economics sphere, stilldoubt that the spill over effect will materialize. Moreover, a recentTransparency International report suggests that corruption is endemic andthat there is high level of inefficiency within the Indian public sectorwhich often carries over into the private domain.

China’s economic growth is equal to and often surpassing that of India,often exceeding an annual increase of 10% during the last two decades.As in India, however, the benefit of economic growth and transformationhas yet to reach the rural population. The urban-rural divide within Chinais growing and the effect of the country’s export-led growth has yieldedscant benefit to the majority of the population. While the urban beneficia-ries of China’s opening to export markets are reaping the benefits of glo-balization, the rural and disadvantaged communities are beginning tovoice their concerns about globalization and multinational corporatelinkages and now are demanding a larger share of China’s economicgains. The Chinese authorities and private sector will have to worktogether to spread the benefits of this impressive export growth to broadersegments of Chinese society.

On the global stage, Chinese enterprises are facing consumer warinessdue to the exports of tainted Chinese products, ranging from toothpaste topharmaceuticals and lead-tainted toys. There is a feeling among buyersthat the “Made in China” label can not be fully trusted. It is important forChinese enterprises and exporters to reassure buyers worldwide that theirproducts are safe and environmentally friendly. The response of theChinese authorities and Chinese enterprise has been described by criticsas inadequate. This perception in the marketplace could impact thecontinued growth of Chinese exports.

Moreover, other negative factors loom over the horizon. Like the US,China has a dubious distinction as a major global polluter. Pollution issuessuch as climate change and global environmental deterioration were at thetop of the agenda at the recent meeting of the leaders of 21 Asia PacificEconomic Community (APEC) members in Sydney, Australia. WhileAPEC countries including the U.S. and others in Asia account for an esti-mated 60% of worldwide economic activities and value added, economicactivities, and creation, they are also among the major contributors to envi-ronmental degradation and global pollution. Arguments over the approachto balancing economic growth and environmental concerns have been

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Editorial 3

advanced by China, India on one side, and the U.S, and Australia on theother. China and India have pointed out that the neither the US norAustralia have signed the Kyoto Protocol, and that their own emergingeconomies should not be singled out as the major contributors to environ-mental degradation and pollution.

Environmental concerns of the Asia Pacific economy are likely to havean impact on corporate strategies within these countries during thecoming decades. The macro economic, political, and corporate challengesand opportunities facing Asia pacific economies and society are immense.So are the opportunities and benefits.

The Journal of Asia Pacific Business (JABP) is well positioned tocontinue as a unique forum and an outlet for informed political, economicand corporate discourse, and analysis on global business issues andconcerns facing the region. First, I am pleased to announce that JAPB hasrecently joined the list of stellar publications offered by Taylor & Francis,a leading publisher of academic journals, as a result of a merger withHaworth Press Inc.

The journal scene is extremely challenging and is rapidly changing:“one-by-one” library subscriptions are being increasingly impacted bylicensing programs, consortia access, and impressive journal groups.These changing times require that the creative content of a publishinghouse be matched by investment in a competitive, easy-to-use, and archa-ically permanent electronic platform. Furthermore, international teams ofsales representatives are necessary to reach out and negotiate licenseswith major libraries and groups of libraries called consortia. Therefore,partnering with a “global player” in academic, scholarly, and professionalpublishing, such as Taylor & Francis, is not only extremely desirable, butinevitable. I am truly excited by this development.

What does this mean for you as a reader and contributor? The Journalof Asia-Pacific Business will now be hosted on Taylor & Francis’sinformaworld, a world-class platform for e-journals, e-Books, abstractdatabases, and reference works. This transition to a new format willincrease not only our readership but the speed of electronic submissions,and therefore be a great boost in achieving our desired goal of fostering aworldwide network of corporate, academic, and industry personnel withinternational global business interests.

The second news event relates to a change in our institutional affilia-tion to Wright State University–the new home for the Journal as well asfor me–from The University of North Carolina at Greensboro. TheJournal will be hosted by the Center for Global Business Education and

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4 JOURNAL OF ASIA-PACIFIC BUSINESS

Research (CGBER) at The Raj Soin College of Business at Wright StateUniversity. As the executive and the academic director of the newly-formed Center and, Editor-in Chief of the Journal, I want to thank The RajSoin College Business for hosting the Journal. Wright State University isgeographically centered in the heartland of America. Within a 100 mileradius of the university lies a significant share of America’s industrial,technological capabilities that figure into an estimated $13 trillion USGDP, which is in turn linked to America’s other Asia Pacific economiesand trading partners. Today’s global challenges and opportunities are bestaddressed within a multidisciplinary analytical context. The Journal isnow poised to take advantage of the synergies of such a frame work. TheRaj Soin College of Business has established joint research and educa-tional program activities with other professional schools at Wright StateUniversity, particularly, the Boonshoft School of Medicine, the Collegeof Engineering and Computer Sciences, the School of Nursing, the Schoolof Education, and the Department of Political Science. These collateralresearch and educational programs will allow the Journal to nurture andfurther develop an interdisciplinary approach.

I want to thank Dr. Berkwood Framer, Dean Raj Soin College ofBusiness for hosting the journal, within the newly established Center forGlobal Business Education and Research, and for his insights and supportfor the further development of a scholarly and intellectual milieu throughthe academic work of the Center and the Journal.

I am also pleased to announce that the Associate Editor, Mary LynnDavis, recently joined the faculty of Wright State University. She bringsan excellent interdisciplinary academic orientation and perspective to thejournal. The Editorial team has also expanded with the addition of otherleading academicians from major universities throughout the world.

Finally, I also want to thank my colleague Suzanne Kelly-Garrison andmy research team from the Department of Management at Wright StateUniversity including Ms. Jeanne Cornor and Ms. Cheryl Bramini and ourcapable team of graduate and research assistants including Ghazale Hadd-adian and Ndeye Fatou Ndiaye.

The articles in this issue span a board range of issues relating to busi-ness success in the Asia-Pacific region. The purpose of the study reportedin the first article by Dr. Craig C. Julian (Curtin University of Technology,Pert), titled “Joint-Venture Conflict: The Case of Thai International JointVentures”, is to examine the conflict between the International JointVenture (IJV) partners in Thailand. The results show that IJV inter-partyconflict is significantly influenced by three variables, namely, partners’

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Editorial 5

needs, commitment, and control. The second article titled “FinancialPerformance of Foreign and Domestic Owned Companies in India” is byDr. Sudershan Kuntluru (NMIMS University, Mumbai), Venkata ReddyMuppani (Indian Institute of Technology, Bombay), and Dr. Mohd.Akbar Ali Khan (Osmania University). Based on the study of 102 Indianpharmaceutical firms for the period 1998–2005, the authors conclude thatforeign ownership has a positive and statistically significant impact on thefinancial performance of pharmaceutical companies in India. The objec-tive of the study in the third article titled “The InternationalizationProcess of Online SMEs in the U.K., U.S. and Australia,” by Dr. CalinGuru and Dr. Mohamed Merdji (both of GSCM Montpellier BusinessSchool), is to investigate the influence of a series of internal and externalfactors on the internationalization of online Small and Medium Enter-prises (SMEs). The study expands previous empirical frameworks andattempts to explain the internationalization of online SMEs by integratingboth organizational and market factors. In the final article, titled “Lessonsfrom the EMU for Asian Regional Integration: An Economic Perspective,”Dr. Sarkis Khoury (University of California, Riverside) and Dr. ClasWihlborg (the Copenhagen Business School) identify critical costs andbenefits of creating an EMU-like structure in Asia. The authors concludethat politics may be the biggest obstacle to a monetary union in Asia.

Riad A. Ajami, PhDEditor-in-Chief

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