organisational transformation of securities brokerage firms

THE ORGANIZATIONAL TRANSFORMATIONOF SECURITIES BROKERAGE FIRMS

UNDER ELECTRONIC COMMERCE ENVIRONMENT

MING-HSIEN YANG, JI-TSUNG BEN WU, SUNG-SHUN WENG, and MING-CHUNG CHENFu Jen Catholic University, Taipei 242, Taiwan

ABSTRACT

Facing formidable pressure from on-line brokerage compe-tition, traditional brokerage firms were forced to transform tomaintain their competitive advantages in the securities market.This study investigates the organizational transformation of se-curities brokerage firms under the EC environment in Taiwan.The findings are: 1. Technology strategy is the most importantstrategy for brokerage firms to implement online trading; 2. Thetransformation strategies among the brokerage firms that havedifferent environmental factors are significantly different; 3. Theadded value product and organizational change strategies havesignificant impacts on some perfonnance indices; 4.The lengthof the implementation time for online trading has a significantimpact on the transformation perfonnance. Five cases were thenstudied to understand the brokerage firms' organizational behav-iors under the EC environment. The results also validated the re-lationship obtained from the statistical analysis.

Keywords: electronic commerce (EC), organizational trans-formation, securities brokerage, online trading.

INTRODUCTION

The securities brokerage industry in Taiwan is quite mature,and the competition among the nearly two hundred brokeragefirms is extremely fierce. It is thus very important for the firmsto take the opportunity to transform themselves for sustainablecompetitive advantages under the EC environment. The or-ganizational transformation, which is a huge change to a firm,occurs when there are bottlenecks in the firm's operations thatmust be reconsidered [13]. Securities brokerage firms musttransform their organizations to deal with the challenges fromonline traders and build competitive advantages in the new ECenvironment [12]. Brokerage must also consider the changesin environmental factors, from outside and inside the organi-zation when designing their new business models. They mustadopt transformation strategies that better fit their corporatecultures and lead to higher business performance. Our researchquestions are: "what transformation strategies will lead securitiesbrokerage firms to higher EC transformation perfonnance?" and"what environmental factors will influence the securities broker-age firms' EC transformation strategies?" The answers to thesetwo questions are crucial to successful security brokerage trans-formation.

The purpose of this paper is to investigate these issues throughan empirical study. We reviewed environmental factors that mightinfluence securities brokerage EC transformation, strategies thatbrokerage firms can take, and the performance indices that maybe infiuenced by these strategies. We also proposed a transfor-

mation model composed of the environmental factors, strategies,and performances. We tested the possible relationships betweenthe constructs in this model by analyzing the data collected froma questionnaire survey and validated the results using the casestudy method.

LITERATURE REVIEW

The Environmental Factors For Brokerage Firms

Cheng [2] suggested that the popularity of Internet applica-tions is the most important general environmental factor thatpushes brokerage firms to transform. The rapid developmentof Internet applications and the continuing growing populationof Internet users have made revolutionary impacts on businessactivities, bringing new opportunities for speeding up businessoperations [7,15]. According to industry statistics, the cost for abrokerage firm to offer online trading is only one fifth the cost of asingle brick and mortar branch [11]. Online trading can effective-ly save brokerage firms the increasing costs required by branchexpansion in providing widely accessible services to customersin this fiercely competitive market [3].

However, there are some limitations for small companies inadopting IT, such as the lack of resources, financial constraints,lack of specialists, and high sensibility to outside pressures [23].Large companies possess more resources and adopt the new tech-nologies more aggressively. Besides, the leader of the organiza-tion plays a key role in the organizational transformation. Theenvironmental factors will affect the leader's recognition, andconsequently influence the content and transformation processand determine the transformation performance [19]. The organi-zation can coordinate its internal strengths and weaknesses withthe extemal opportunities and threats effectively; however, thiscoordination depends on top management's values [8]. It is there-fore argued that the support and participation of management isone of the major factors in brokerage firms offering online trading[2]. In addition, the organizational characteristics have significantimpacts on the quality and effectiveness of the information systemplanning process. The infonnation system planning method mustmatch the organizational characteristics [18]. The product char-acteristics also affect organizational IT adoption. For example,information based products are sold easier on the Internet thanphysical products [16]. Moreover, most highly formalized organi-zations will establish formal procedures for respective functionalactivities, decisions, and control. These procedures are very use-ful in implementing organizational computerization projects. It isthen argued that the degree of formalization of the organizationis highly correlated to the degree of IT usage in the organization[26].

Spring 2007 Journal of Computer Information Systems 111

The Brokerage Firms' TransformationStrategies and Performances

The match between information strategy and business strat-egy is helpful in achieving better business perfonnance [22].There are many strategies that companies can take for organiza-tional transformation. The transformation strategies for brokeragefirms can be summarized in six dimensions: added product val-ue, technology, organizational structure transformation, diversi-fication, management system change, and marketing [2,27].The critical success factors of online stock trading include lowtransaction fee, innovative marketing strategy, diversified prod-ucts and services, stable trade system, complete database, highquality research reports and investment suggestions [2]. Henceit is very important for the brokerage to adopt the strategy ofadded product value. However, in order that the strategy of addedproduct value can be effectively implemented for online stocktrading, the technology plays an important role. Brokerage firmscan use two technology strategies for online trading systems:one is to adopt the system provided by the integrated solutionfirms and the other is to develop the system in house. The for-mer is much preferred by brokerage firms in Taiwan because itcan reduce the implementation time and obtain up-to-date tech-nologies [5].

Online trading removes the need for customers to interact withsalespeople and can reduce the number of employees in the salesdepartment. Hence, the original organization structure must beadjusted. The brokerage firm's organization structure transforma-tion is an important strategy to increase the firm's competitiveadvantages [12]. In addition to this, online brokerage firms shouldalso develop some strategies toward diversification. They couldcooperate with mobile communication firms to develop mobilesecurities services, or transform themselves into a networkedbanking center and with the long term objective of becoming aninvestment bank through strategic partnership, merger, or acqui-sition [27].

Change of management system is crucial for brokerage firmsto do online trading business. Online trading requires the sales-people to change their traditional roles. The salespeople mustimprove their professional knowledge to promote themselvesas investment consultants that can provide banking related in-formation and services to their customers [3]. The reeducationand training of employees is very important to management sys-tem change. It must be executed to meet both the corporate andindividual goals [4]. At last, a marketing strategy is critical tothe success of the online trading business [10]. To effectivelycompete with rivals, online brokerage firms need to designmarketing strategies for their customers based on the customer'sdemands [2].

The securities brokerage's business type is significantly cor-related to its business performance, as measured by five indices:profitability, liquidity, security, business efficiency, and growth[14]. These perfonnance indices are good for financial perfor-mances; however, they are not appropriate to measure EC bro-kerage applications. Taiwan Stock Exchange Corp. (TSEC) pro-vides several performance data items on online trading for everybrokerage, including the monthly amount of new open accounts,commissioned deals, commissioned dollars, concluded deals,concluded dollars, average dollar amount per concluded deal, theratio of concluded deals traded on line, the dollar ratio of conclud-ed deals traded on line, and the monthly market share of onlinetrade concluded dollar amount [20].

METHODOLOGY

Research Model And Hypotheses

Generally, an organization will design and select its opera-tional processes based on its present status and the organization'sperformances will be dependent on the selected processes. Theso-called "present-process-performances" (3P) concept can beused to understand the organization's operations more clearly be-cause it considers organizational operations in three stages andis also an appropriate framework to analyze the organizationaltransformation. This study used the 3P framework to analyzethe transformation strategies that traditional securities brokeragefirms use under the EC environment. The present stage includesthe internal and external environmental factors that the brokeragefirms need to take into consideration for their EC transformation.These environmental factors may affect the second stage, that is,the EC transformation process which deals mainly with the strat-egies that brokerage firms use to transform themselves to adaptto the new competitive environment. The EC transformationstrategies that brokerage firms may use are dependent upon theenvironmental factors the firms face, and they may in tum affectthe third stage, that is, the performance of the EC transformation.In addition, the transformation implementation time will alsobe included in our research model (Figure 1) as an interferencevariable because the EC transformation performance may bedependent upon how long the transformation actions have beenimplemented.

Based on the proposed model, the following three hypotheseswill be tested in this study:

HI: Brokerage firms with different environmental fac-tors may have different EC transformation strate-gies.

H2: Brokerage firms' EC transformation strategiesmay aflect their transformation performances.

H3: Brokerage firms' EC transformation implementa-tion time may affect their transformation perfor-mances.

We selected the research variables in this study according tothe related literatures. The environmental factors included 27variables. There are two kinds of environmental factors neededbefore a transformation proceeds: external environmental fac-tors and internal environmental factors [6]. The external environ-mental factors include general environmental factors (A1-A5),technological environmental factors (A6-A8), competitive envi-ronmental factors (A9-A11), and demand environmental factors(A12-A18) [6,9]. The internal environmental factors include theorganizational scale and structure (A19-A21), the value of topmanagement (A22-A24), and the corporate culture and charac-teristics (A25-A27) [6,17,23]. The transformation strategies con-sist of 26 variables: added product value (B1-B5), the technologystrategy (B6-B15), the strategy of organizational structure change(B16-B17), the diversification strategy (B18-B20), the strategyof management system change (B21-B22), and the marketingstiategy (B23-B26) [2,27]. We used a five-point Likert scale tomeasure all of the variables in this study.

The transformation implementation time is a variable includ-ed in our model to determine the effect of the brokerage online

112 Journal of Computer Information Systems Spring 2007

The environmentalfactors

The extemalenvironmental factors

• General environmental factors

9 Technology environmentalfactors

• Competitive environmentalfactors

• Demand environmental factors

The intemal environmentalfactors

• The organizational scale andstructure

• The value of top management

• The corporate culture andcharacteristics

The transformationstrategies

• The strategy of addedvalue of product

• Technology strategy

• The strategy oforganizational structurechange

• Diversification strategy

• The strategy ofmanagement systemchange

• Marketing strategy

/

The transformationperformances

• The number of new openonline accounts

• The number of onlinecommissioned deals

• The amount of onlinecommissioned dollars

• The ratio of onlineconcluded deals

• The dollar ratio of onlineconcluded deals

• The online market share ofconcluded dollars

Figure 1: The research model. The implementation time

trading duration on the relationship between the strategy and per-formance. The implementation time was measured as the broker-age's online trading start to Oct. 2000. The transformation perfor-mance has six variables, which are the performance indices listedin Figure 1. These performance variables are denoted as Cl to C6.Each performance variable is a monthly average value, which isthe quotient of the total monthly performance value counted untilOct. 2000 divided by the implementation time of transformation.However, the earliest beginning time of the implementation oftransformation in the study will be set as the July of 1997 whenthe performance data were initially reported by TSEC,

Data Collection

The study used a questionnaire survey to collect data tovalidate the proposed EC transformation model using statisticalanalysis. The survey targets are 81 traditional brokerage firmsin Taiwan that offer online trades [20]. Among thesefirms, there was one virtual brokerage firm, severalfirms already merged, and four firms whose onlinetrade performance data were not publicly reported. Weobtained 68 independent traditional brokerage firmswith monthly online trade performance reports as theresearch subjects. The questionnaires were mailed tothe general managers of the online trade division ofthe firms. We received 36 returned questionnaires afterone month and 34 (50%) valid questionnaires can beused for data analysis. Table 1 shows the profile of therespondent companies. Only thirty percent of the re-spondent brokerage firms offered online trading overtwo years,

A similar procedure was applied to conduct thefactor analysis for the twenty-six transformation

strategy variables. The first factor analysis result produced sixfactors whose

This study selected five largest brokerage firms in Taiwan forfurther case study after the initial report based on the question-naire survey has been completed in the summer of 2003, Seniormanagers taking charge of the firms' EC transformation projectswere interviewed. Though their titles differed from CIO to di-rectors and vice president, all of them held the highest rankingpositions in their firms. The in-depth interview was administeredin a semi-structured way by asking the respondents three kindsof open questions: I, What were the major environmental factorsthat the firm considered when formulating its EC transformationstrategy? 2, What kinds of transformation strategies contributedthe most to the firm's EC performance? 3, What were the mainimpacts of the firm's EC transformation project on the organiza-tion? Each interview took about two hours and was conducted inthe respondent's office.

Table 1: The profile ofthe respondent companies

Capital (Billion NTD)

No (%)

Eaming per share (NTD)

No (%)

Duration of online trade (year)

No (%)

Importance of online trade

No (%)

Below 2

17 (50%)

Below 0.3

13(38%)

Below 1

7 (20%)

Low

8 (23%)

P.S. One USD equals to 35 NTD approximately.

2-4

6 (17%)

0.3-0,6

9 (26%)

1-2

17 (50%)

Middle

16 (47%)

Above 4

11 (33%)

Above 0.6

12(36%)

Above 2

10(30%)

High

10 (30%)


Table 2

Factor

Transformation capability (TFl)

Infonnation technology (TF2)

Transaction demand (TF3)

Structure and scale (TF4)

Government regulations (TF5)

Table 3:

Factor

Technology strategy (TSl)

Marketing strategy (TS2)

Added value of product (TS3)

Organizational change (TS4)

Diversification strategy (TS5)

Expansion strategy (TS6)

: The environmental factor variable factor analysis result

Variable

A09-All,A22-27

A01-A02,A06-A08

A12-A16

A19-A20

A03-A05

Accumulated variance

23.19%

40.23%

55.62%

68.61%

78.57%

Eigenvalue

5.566

4.089

3.694

3.118

2.390

The transformation strategy variable factor analysis result

Variable

B08-B15

B02, B21,B23-B26

BOl, B03

B16-B17

B18-B19

B20, B22

Accumulated variance

30.09%

45.84%

58.67%

70.31%

80.03%

86.37%

Eigenvalue

7.522

3.939

3.206

2.911

2.430

1.584

a

0.915

0.918

0.945

0.865

0.833

a

0.972

0.913

0.877

0.889

0.920

0.702

DATA ANALYSIS AND DISCUSSION

Data Analysis

We used factor analysis to reduce the amount of research vari-ables for further analysis in our study. The principal componentsanalysis method and the Varimax rotation method were applied toconduct the factor analysis. Variables with factor loading valuessmaller than 0.5 were deleted. Table 2 and Table 3 summarizethe results. The environmental factors were reduced to five fac-tors (TF1-TF5) and the transformation strategies were reduced tosix (TS1-TS6). We then calculated the factor scores for TF1-TF5and TS 1-TS6. Each factor score Xi was then transformed into anew score Yi ranged from 0 to 100 by the Logistic transformationformula: Yi = 100 / [1 + EXP(-Xi)]. These new scores were usedfor testing the proposed hypotheses.

To test HI, we grouped the firms by conducting cluster analy-sis on the environmental factor score data and used ANOVA(analysis of variance) to check if the average scores of transfor-mation strategies of different brokerage groups were significantlydifferent. The brokerage firms were dividedinto three groups, as shown in Table 4, ac-cording to their environmental awarenessscores for the factors that prompted themto initiate an online trading business. Therewere nine low awareness firms, nine medi-an awareness firms, and sixteen high aware-ness firms, respectively. The highest aware-ness group was at the stage where offeringonline trading was unavoidable to maintaina competitive advantage in the brokerageindustry. The low awareness group was un-aware of the competitive situation.

Table 5 shows the ANOVA results for the three brokeragegroup transformation strategies. HI is supported for the technol-ogy, marketing, added product value, and organizational changestrategies. We used the Sheffe test for further group comparisonin these four significantly different transformation strategies. TheSheffe test, also shown in Table 5, shows that the low awarenessgroup had less aggressive technology and marketing transforma-tion strategies than the other two groups. The median awarenessgroup had less aggressive added product value and organizationalchange transformation strategies than the other two groups.

Table 4:

Group no

Gl

G2

G3

The environmental

Group name

Low awareness

Median awareness

High awareness

factor cluster analysis result

Observations

9 (27%)

9 (27%)

16 (46%)

Mean average

3.436

3.998

4.291

Tahle 5: The ANOVA and Sheffe test results

Strategy

Technology

Marketing

Added value of product

Organizational change

Diversification

Expansion

*:p<0.1,**:P<0.05, ***

F value

4.636

3.435

6.502

4.404

0.110

0.064

p<0.01.

p value

0.017**

0.045**

0.004***

0.021**

0.896

0.938

HI

Supported

Supported

Supported

Supported

Unsupported

Unsupported

Sheffe test

G2,G3>G1**

G2,G3>G1**

G1,G3>G2**

G1,G3>G2**

—

—


Dependent variable

New open online accounts

Online commissioned deals

Online commissioned dollars

Ratio of online concluded deals

Dollar ratio of onlineconcluded deals

Online market shareof concluded dollars

*: p<O,l, **: p<0,05, ***: p<0.01

Table 6: The summarized result of the multiple regression tests

Independent variable

Implementation time (H3)

Added value of product (H2)

Organizational change (H2)







Regression coefficient P value

1,14x10^

4,57x10^

4,81x10^

1,97x10'

5,74x10'

2,25x10'

5,11x10'

1,67x10'

2,73x10'

0,017**

0,030**

0,034**

0,002***

0,005***

0,055*

0,092*

0,084*

0.003***

R2 (Adjusted R2)

0,265 (0,067)

0,456(0,310)

0,348(0,172)

0,252(0,051)

0,208 (0,005)

0,383(0,217)

We used multiple regression analysis to test H2 and H3, Table6 shows that H2 is supported for only three performance indices.The online commissioned deal performance may be affected bythe added product value and organizational change strategies. Theratio of online concluded deals and dollar ratio of online con-cluded deals were affected by the organizational change strategy,H3 was supported for five performance indices except the perfor-mance dollar ratio of online concluded deals. That is, the broker-age firms' EC implementation time may affect the new open on-line accounts, online commissioned deals, online commissioneddollars, online concluded deals ratio, and online market conclud-ed dollar share performance. Because the EC implementationtime has a significant impact on performance, the transformationstrategy effect on the firms' transformation performances is notvery significant, possibly due to the implementation time: Table 1shows that seventy percent of the firms have offered online trad-ing for less than two years.

Discussion

According to the statistical testing results, all respondentbrokerage firms exhibited no significant difference in adoptingdiversification and expansion strategies. However, the medianawareness firms with low corporate culture and characteristicsawareness had less aggressive strategies for added product valueand organizational change. The brokerage firms with low aware-ness on general and technical environment had less aggressivetechnology and marketing strategies. The added product valueand organizational change strategies were the only two amongthe six transformation strategies that had significant impact on ECtransformation performance. The median awareness firms mighthave disadvantages, worse than the lower awareness firms in ECtransformation because they did not value these two strategiesas much as the others. Why the median awareness firms did notvalue the organizational change strategy can be attributed to theirlow awareness of the importance of corporate and characteristics,EC transformation is basically an organizational change process[25], A brokerage's EC transformation project needs to considerthe firm's corporate culture and characteristics and design appro-priate strategies for strong support from all employees and otherstakeholders so that the project can be smoothly executed. For

instance, a brokerage may require a longer time to communicatewith its employees about the transformation project if it has beenin a rather stable competitive environment in the past few years.The brokerage employees may not think that the transformation isnecessary and may not easily accept a quick change. If the firm'sorganizational IT capability is poor, most of its employees mightbe afraid of the EC transformation due to the lack of requiredexpertise and experience. In such case a well-designed trainingprogram may be needed for the organizational change strategy tohelp the transformation be successfully implemented.

Generally, it can be asserted that the organizational changestrategy is the most important strategy for the brokerage firmswhen implementing EC transformation. The regular operationsof traditional brokerage firms depend heavily on human agents.However, when firms start to offer online trading, some of theseagents will be replaced by computerized processes. The agents'fear of being replaced or losing personal infiuence in the tradingprocess might cause poor cooperation or even drastic resistanceduring the transformation. The firm can deal with this problem byusing a proper organizational change strategy that is able to con-vince the agents that they will receive good care from the organi-zation if they cooperate well with the transformation project. Thesignificance of the EC transformation to the firm should be high-lighted and clearly illustrated to the agents so they realize that theorganizational transformation is necessary for the firm to sustaincompetitive advantage. This communication is very crucial to es-tablishing intemal consensus regarding the huge engineering oftransformation and should be executed extensively through for-mal channels with the full support of top management.

The implementation time is a significant factor that affectsthe brokerage EC transformation performance. Seventy percentof the respondent firms in the questionnaire survey offered on-line trading for less than two years. This could be the reasonwhy transformation strategies other than organizational changeand added product value did not show a significant impact onthe transformation performance. To remove the possible interven-tion effect of a short implementation time, we conducted a casestudy to further validate the transformation strategy impact on theperformance two and half years after the questionnaire survey.We found that added product value and organizational changewere still the two most important transformation strategies that


influenced EC transformation performance. All five firms in thecase study had significant performance improvement after theyadopted these two strategies for one year. Technology, expansion,and marketing strategies also showed impacts on performance.All firms experienced a significant performance improvement af-ter they adopted technology and expansion strategies within twoto four years. However, the diversification strategy's impact onthe transformation performance did not receive sufficient supportfrom the case study. Only one firm experienced significant perfor-mance improvement after adopting the diversification strategy forabout four years. The case study result confirms the interventioneffect of implementation time upon the transformation strategyimpact on performance. This allows us to conclude that brokeragefirms' EC transformation strategies affect their performance aftera period of implementation time.

Two particular issues are noted from the case study. First,most firms emphasized the importance of customer relationshipmanagement (CRM) systems in implementing EC transforma-tion. Establishing a CRM system can effectively administer theenterprise's relationship with customers so the enterprise can un-derstand customer desires quickly and correctly [21,24,28], Thisis especially important for brokerage firms because they usuallyhave much more involved interactions with customers than otherfirms. Brokerage firms will therefore consider using the CRMsystem as a key factor in EC transformation. Second, the domi-nant managerial logic of the brokerage firm plays an interestingrole in successful EC transformation. Depending on a firm's strat-egies, systems, technology, organizational structure, culture, andthe success record, a dominant managerial logic emerges. Thisis a common way of viewing how best to do business in the firm[1], Some brokerage firms have more dominant and pervasivemanagerial logic because their management teams have beenat the firms and in the industry longer. They usually have alsorun the traditional business more successfully. However, whileimplementing the EC transformation, two firms suffered becausethe dominant managerial logic prevented their managers fromunderstanding the rationale behind the new EC technology andinfluenced their managers to think and act as if it were business asusual. To avoid this dangerous consequence, in which the firm'sdominant managerial logic impedes the EC transformation, an-other firm appointed a very talented manager that had worked inthe firm for only several months as the EC transformation teamleader Although the firm still faced some difficulties, its ECtransformation was much more successful than the other two,

CONCLUSIONS

This study investigated traditional securities brokerage firmtransformation strategies in the EC environment. We conducteda mailed questionnaire survey of traditional securities brokeragefirms in Taiwan and the responded data of 34 firms were analyzed.We found that the technology strategy is the most important strat-egy for brokerage firms when implementing EC transformation.Brokerage firms were divided into three groups by their degreeof awareness of the environmental factors. Twenty percent ofthe firms were low awareness brokerages, twenty-seven percentwere median awareness brokerages, and the remaining were highawareness brokerages. The three types of firms exhibited no sig-nificant differences in using diversification and expansion as theirEC transformation strategies. However, they were significantlydifferent in using the technology, marketing, added product valueand organizational change strategies. There were a few signifi-

cant performance index differences among brokerage firms usingdifferent transformation strategies. Only two strategies, addedproduct value and organizational change showed significant im-pacts on some performance indices. The reason that most of thebrokerage transformation strategies had no significant impact onperformance is because seventy percent of the brokerage firmshave offered online trading for less than two years. We conducteda case study two and half years after the questionnaire survey andthe result allowed us to conclude that the brokerage firms' ECtransformation strategies may affect their transformation perfor-mances after a period of implementation time.

The result from this study provides some managerial implica-tions for brokerage firms implementing EC transformation. First,EC transformation is basically an organizational change process.Therefore a brokerage should consider the firm's corporate cul-ture and characteristics and formulate appropriate strategies forstronger support from the related employees and other stakehold-ers. The significance of EC transformation to the firm needs to beclearly illustrated to the firm's agents so that they realize that it is anecessary action, making them willing participants. Second, goodcooperation between IS specialists and marketing professionalson the EC transformation team is crucial to successful projectimplementation, Confiicts could occur between the IS specialistsand marketing professionals during the transformation process.Effective conflict management mechanisms are needed to avoidthe disastrous consequences of drastic confiicts. Third, the domi-nant brokerage managerial logic used in running a successful tra-ditional business could prevent managers from understanding therationale behind the new technology and infiuence them to thinkand act as if it were "business as usual". Avoiding the negativeimpact of the dominant managerial logic on EC transformation isa very important issue in project implementation. This and otherrelated issues could be investigated in future research,

ACKNOWLEDGEMENT

This research was supported by the National Science Founda-tion of Taiwan under grant no, NSC892416H030024SSS,

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