Jur of Bornes Reearh (201) nse Contents ete available ot SclaneeDieaet = Journal of Business Research | | | Innovation, organizational learning, and performance Daniel Jiménez-Jiménez*, Raquel Sanz-Valle . Lnversdd de strc, Mure, Sle ARTICLE INFO ABSTRACT ‘ee ioe Beceve 1 November 2007 Reseed eis for Angst 2008 ‘ecepee 17 september 2018 ‘Reale olin ase iiterature examines the relaionshipbetween innovation and performance and asserts a postive retionship between organizational learing and both performance and innovation. However, few empirical studies analyze these relatlonships together. This article explores those relationships using SEM with dta from 451 Spanish firs. The fnangs show that both varables ~ organizational learning ad ovation ~contibute praltvely to business peformance, and that orgonzatonelleraing affects innovation. Anether Rading of this study is thet sae and age ofthe fn, Industry and environmental turbulence moderate thes relations. Orgel sein Festrmanes sen “The literature on management emphasizes the key role that both innovation faker and Sinkula, 2002; Balkin etal, 2000; Darroch and ‘MeSlaugton, 20025 Lyan and Ferrier, 2002: Utterback, 1994; Vrain. 1990; Wolfe, 1994), and organizational learning (Brockmend and Morgan, 2003; Dorigson, 1995: Fil and Iyles, 1985; Garvin, 199%; Gayaveali et aly 1997: ‘Hevis et al, 1995: Stata, 1989) play in enhancing 4 fas’ competitive advantage Some studies suegest that organizational learning and its output, organizational imowledge, are antecedents of innavation (Baker and Sinkula, 1999; Colten and Levinthal, 1990; Coombs and Hull, 1998: Darroch and MeNaugton, 2002; Hage, 1999; Kogut and Zander, 19925, ‘Leonard-Barton, 1999; Nonala and Takeuchi, 1995: Nooteboom, 1999; Sorensen and Stuaet, 2000; Stata, 1989), The basic assumption Is that leamiag plays a key cole in enabling companies to achieve speed and flexibility within the innovation process (Brown and Eisenhard, 1995; Miles and Snow, 1978; Weerd-Nederhof et al. 2002), Organizational learning, innovation and performance relate positively to each other. However, research that studies the interrelationships between the three concepts simultaneously is still scarce. Previous studies usually focus on the innovativeness of the firm, which i to say, on the degree co which the organizational culture ‘promotes and supports innovation (Keskin, 2005; Lee and Tsal, 2005) ‘or analyees only ane type of innovation, mainly product innovation (Salavou and Loukas, 2003), Thus, previous research provides a partal explanation only of the phenomenon of innovation. + comesponting aba. Departamento de Oxpatacionée Empress y Fnaaas, ecalal de Economia Empies, Universidad. de urd, Campos de Espinado, pi, cn P9810 Spin. Tels 124885 85 7900; fe: 34858887537, aes: dane jsum et (0. iez inoer), aqvelSum es (Sone. 18.296 se ont mater 2010 seer. AI hts seve yoaeess01008010, “© 2010 Elsevier Inc. al igs seserved Similarly, most stndies of organizational learning adopt a cultural perspective for measuring this concept. Very few studies (Darroch and MeHzugton, 2003; Tippins and Sohi, 2003) analyzes the process of ‘organizational learning. Since culeure values are move dificult to change than specif actions, focusing on the orocess may be more helpful for practitioners. This scudy attempts to address the weak: ‘of the preceding Hterature and anclyzes the relationships ‘between organizational learning, innovation and performance to- gether In a single model, This study focuses on the organizational Tearning process and uses a complete measure of innovation. In addition, this paper analyzes the likely moderating effec of firm size and age, industiy and environmental turbulence on the relationships ‘between organizational learning, Innovation and performance. ‘Thearticle starts with a review of the lterature on these topics and 1 description of the model proposals. Then, the article presents the ‘design ofthe study to test the medel and the findings ofthis study. in the last section, the article cscusses the managerial and academic immplieations of the study, its limitations and recommendations for Future esearch, 41. Innovation and performance LUterature conceprualizes innovation In a variety of ways in the literatore, as a process, and outcome of both (Damanpour and Gopalakzishnan, 1958: Damanpour etal, 1989; Keight, 1967; North ct al, 2001: Rogers, 1995: Thompson, 1965; Wolfe, 1984). However, ‘most of the definitlons of innovation share the idea that innovation implies the adoption ofa new idea oF behavior. Uterature also distinguishes different types of innovation. The classification most extended and accepted 's the one Damanpour (1991) proposes, He distinguishes between technical and adminis- lrative innovations. Whereas technical innovations include 2 new Please cite this article as: Jiménez-Jiménez 0, SanaValle R, Innovation, organizational learning, and performance, | Bus Res (2010), doi: 10.1016/)jbusres2010.09.010.jménemdne, Sara ours of Bases Bsr sa (2010) mo a, 1M, Nein They T Wha Your eratgy fr managing kntsedg? Hare on Bev 1095732) 108-15. stodund GA mode of nayedige managtient and the fom eopartion, Sates, Manage) 1954 1875-9 fsucuer Special tue rw tk Hoss, ineontina dletaton: effets ineoaton ad rn pertornance in pode versie ms ead Manage | 1997 0(@):767-28 one Ri hance a Wing abst soto eqinden modeling. te Hoyle fer. ‘Sued equation modeling These Cas: age 1095, pp. 15876, ober Cenige Oran ering he ontalingproceses anf the eatres ‘agua Se 1ST. ue amas Hey RE igh GA. 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A Mahdad,' SH Atashpuort Abstract ‘stn cad Background: Meny countries make many of thelr governmental sectors private. This transi- TECASUT tion, however, may affect their empoyees In numerous Nays Wiha an Objective: To determine the level of occupational stress and mental health of employees of che {ional Medien, NOC 3 petrochemical company In Tsfahan, Central Ian, before and 3 months after privatization. Hath wos, Methods: Out of the 700 employees of the studied company, using a stratified random sampling technique, 140 persons were selected. We used Steinmetz occupational stress and GHQ-28 questionnaires to determine the level of stress and mental health status of partici- pants. Results: The reliability of the questionnalres used was acceptable (Chronbach alpha coef- ficients: 0.85 and 0.86, respectively). Job stress level was significantly increased 3 months after privatization; the meanSD job stress score before and after privatization were 22,910.43 and 28,312.25, respectively (p<0.001). The meansSD mental health score after privatization (17.57211.63) was also significantly (p<0,001) higher than that before the privatization (13.8:46,0). There was a significant (p<0,001) positive correlation between, the mental health status score and job score (r=0.476). Conclusion: After privatization, the job stress of employees Increased significantly. This Increase vas associated with a decrease In mental health, To lessen the side effects of priva- tization, the process should be performed cautiously, Keywords: Psychological health; occupational stress; mental health; privatization Introduction tem. Rather, the real problem arises when deciding how to help employees adapt to ‘owadays, stress is an inseparable \ part of daily life in industrialized communities. Many authors have pointed out that organizational changes can be viewed as the greatest source of stress on the job and perhaps, on employ- ces’ life, Kotter mentioned that while each change is important, the core problem of organizational changes is neither the strategy, structure, culture, nov the sys- wuw.theijoem.com Volt Number 2; April, 2010 the changes. Schabracq and Cooper be- lieve that employees’ stress rises because their positions and technical skills may be changed. When employees cannot make the necessary technical adjustments, a sense of uncertainty arises about the fu- ture, which in turn, ereates stress. This, uncertainty can affect both the employees’ Job commitment and job satisfaction, ‘Correspondence to Razin Hasanzade, MA, Dision of ‘upational Metcne. ibe Heath Organiza Hon sfahan, an Email eal hagen. zateh@yshos com 7e to other employees and trigger a chain reaction that ultimately leads to the wide- spread fear in employees of losing their Jobs which causes inereased job stress. We found that the studied employees enjoyed a better mental health before privatization. These findings are consis- tent with many studies,97# ‘One study showed that both insecure re-employment and unemployment after privatization result in increases in psyehi- atric disorders and consultations with a general practitioner and that constant un- employment is inked to chronic diseases. In this respect, International Labor Or- ganization (2002) discussing safety and job health, reported that privatization, organizational restructuring and increas- ing the number of small business units in- erease unemployment, stress, alcoholism, job insecurity and prolongation of work hours, all of which lead to psychie trauama at work and private life. Moreover, it has been shown that stress and its related di eases lead to an inerease in the incidence rate of indigestion, heart disease and men- tal disorders, We showed that there is a close corre- lation between job stress and employees’ mental health after privatization. These servations have been also reported eai lier. In a study on mental health of Chi- nese nurses in Hong Kong,’ the authors concluded that the degree of stress which nurses experienced at work was positive- ly and significantly comelated with their mental health and that the level of anxi- ety and depression were significantly cor related with the degree of stress at worl Another study showed that there was a causal interrelationship between work characteristics and mental health.’ We believe that to lessen the side-ef- fects of privatization, organizationsshould support their employees sufficiently to enable them to adapt themselves to the changes, through allowing their. employ- ees to participate in making decisions con- cerning the functional changes in the sys- tem to prevent or reduce the subsequent Job stress, Participation of employees helps them aecept the changes and allows them to present their opinions and point of views about the changes in the system which ultimately enables them to adapt themselves to the new system. More comprehensive comparative studies on privatization {particularly the psychic effects on employees) in countries where privatization of governmental sec- agenda, should be conducted nize the adverse effects of this pro- cess on employees, in partieular, and on the system, at large. Conflict of Interest: None declared. Reference 4, Mlng-Chu ¥. Employees’ perception of organi tational change: the mediating effects of stress ‘Management strategies. (statistical data) Publ Persennel Monagement 2008; March 22, Avalable from hetp:/fanwwnaccessmylibrary.com/article- 1G1-198412914/employaes-perception-orgeniza tlonal-change html (Accessed February 28, 2010} 2. Ussahawantchakie®,Sumnritsakun CEffeetof =, ‘organization change on psyehogicl stress and job Performance ofa accountants ia Thailand. urna! 9f internotional Business Economies 2008; March 20, avaiable from http /wwracbritannica com bps/adltionalcontent/18/35637514/EFFECTS-OF- ORGANIZATIONAL-CHANGE-ON-PSYCHOLOGICAL. STRESS-AND-J08.-PERFORMANCE-OF-ACCOUN- TANTS-IN-THAILAND (Aceossed February 21, 2010) 3. Schall R Freese . The impact of organizational ‘changes on the psychalogleal contact and at titudes towards werk la Four health eare oxge- nizations. In aksson Ky HogstedtC Eriksson C, ‘Theorel eds. Health etfects ofthe New Labour Market. New York: Springer US, 2000: 129-43 4. Probst TM, Exploring employee outcomes of organizational restructuring: soloman four group study. Group ond Organization Management 7003;28(3):416-39, 5. Ho Chen The study of survver’s employee job www.theljoem.com Vol 1 Number 2; April, 2010‘Afoan Journal of Business Management Vol. 4(6), pp. 869-881, June 2010 ‘yalabio online at httovhaw-academicjournats.org/AJBM, ISSN 1993-6288 @2010 Academic Journals Full Length Research Paper Impact of role ambiguity and role conflict on employee creativity : Yung-Tai Tang* and Chen-Hua Chang Department of Intemational Business, Providence University, No. 200 Chung-Chi Road, Shay, Taichung Hsien, 43301 Taiwan, R.0.C. ‘Accepted 26 February, 2010 Exactly how role stress and various performances of individuals are related has received considerable attention, In which stress has been found to affect individual creativity. However, exactly how rola stress ‘and employee creativity are related has seldom been examined ompitically, By extending the results of erature, this study proposes five hypotheses on how role ambiguity and role conflict (via self-efficacy and job satisfaction) affect employee creativity directly and indirectly. Survey data from 202 employees of Taiwanese companies reveal not only a direct and negative link between role embiguity and creativity, but also a direct and positive link between role conflict and creativity. The survey results further demonstrated that both self-efficacy and job satisfaction serve as partial mediators between role conflict and creativity. However, only job satisfaction (end not self-efficacy) is a partial mediator between role ambiguity and creativity. Implications of the findings of this study and possibie directions for future research are also discussed. Key words: Role ambiguity, ole conflict, creativity INTRODUCTION As is widely recognized, enhancing employee creallvity is essoniial for a competitive edge and organizational survival (Amabile, 1988; Burnside, 1990; Shalley, 1995). Exactly how social environment impacts employea creativity has thus received considerable attention in recent decades (Amabile ef al, 1996; Perry-Smith and Shalloy, 2003). Amabile at al. (1996) identified several ‘work environment factors that either enhance or reduce the Intrinsic motivation of employees, thus increasing or decreasing their creativily. For instance, time pressure may either benefit or harm employee creativity (Andrews and Farris, 1972; Ekvall and Ryhammer, 1999; Baor and Cidham, 2006; Amabile ot al., 1996). As time pressure belongs’ to work stress, the latter has been extensively stuciod given its pravatence In contemporary society and its potential impact on employes productivity (Jex, 1998; Beehr, 1995; Tubre and Collins, 2000). The European Foundation and European Commission cited work stress “Corresponding author. E-mail yilang@puedu.tw. Tal: +B86-4-2532-8001 ent, 13114. Fax: +866-4-2692-4044, 2s the primary complaint among workers (Paoli and Costa, 1994). The American Institute of Stress (2004) estimated that organizational costs of workplace stress for U.S. employers are,mmore than $US 300 bilion annually. Role stress is a commonly studied wor stress at the individual level (Beehr, 1985), largely owing to that roles are Integral to work-related functtons of employees. Role siress may occur if expected and perceived roles difer. In recent decades, many organizations have switched their focus to organizational changa, tlexiblty, and employee empoworment (Smith, 1997; Kalleberg, 2001). However, the growing emphasis an organizational change, flexible work arrangements, employee empowerment, and autonomous working conditions has ted to constantly changing job specifications and role uncertainty. 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Designimethedology/approach - The paper proposes a motaranaiyess of the feralne, The Csbntes for the ebservtions proposed are made up of he main stucies pubshod in veratonal Jeera ene lax 20 yon'sdoaing win hospital management, owrsm and serice managers sovrte having s¥togie management cr special business functions a® het focus, and using fe hla! ‘eintly os het empirical bess. Bblographical esearch mace it poscbie fo erty 180 artis. Findings ~ Tho findings corfim the rebvance of context inorder to understand te research sears Be oertont of the papers uso evidence daw lm Eurapean (37 percent, Asian (82 patcon”, ond sacar ancl Contra Americen (79 perean}) countries; fwnatias wore akan es the besis or 67 percent of tramnicles examined. Te present paper shows tho ‘trong lnk existng between the 'vpe of evidence ie earch aacign (comple, Kind of dein number of years), ihe chalce of Gependent and weigpencten variables, hroby idenijing twee diferent research siyos: Eucpesn, American and asiat tiginaly/velue ~ The conclusions show he song infuence which the sous of evidence nines Reena sarch design ad perce on the factors characterzing the choice of dependent and independent vaiabos, The conclsions alco dbscribo some evotuionary snes in he researc wAVe® ‘ight reveal new Berepocives inthe studies of performance determinants. Keywords Perlormence measiremont fquety), Performance criteria, Hotel end cateng Indust Research methods Paper type Research paper 4. Introduction Portormance ie the time tost of any strategy (Hofer and Schendel, 1978) and performance improvement lies al the heart of fm strategy (Chakiavarthy, 1986), Researchers into tmenagemeni agree in considering performances a polyhydrc, complex Issue which, ip rdor to be suitably measured, needs the joint use of several dimensions (Venkatraman and Remanvjai, 1986; Walker and Ruekert, 1887) the integration of financiak and non financial Treasures (Eccles, 1991), and the broadening ol survey perspectives, involving the main business stakeholders (Kaplan and Norton, 1292), ‘ne aubor settle De EhGeat etap when “These observations have certainly been stimulated by the tendency an the pat of many cen Sacre eee managers and onliepreneurs 10 use financial, profit-based (Ezzemel, 1982), econ: 1 March 009 focounting-based (Reapaport, 1986), non-balanced (Kaplan and Norton, 1896) and Revioa: 25 Septoria 2009 Peete Seesaber Zoo3 excessively firm-orienied measurements (Neely ef al, 1995). aoe co rouse nevet | VOL es10 92019, 80, © Emel Cr Pair i SH HTS ov ot prsasrionaet‘ sefley, D. ard Barden, FLRD. 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RA, (1999), "Hotot porformance and competive advantage: a contingency appreach”, atonal Jeune of Contemparary Hospalty Managemen, Vol. 11 No. 7, pp. 35945,4 Payehopathot Behav Assess 2010) 32:557-564 DOT 10.1007410862-010-9185:6 Construct Validity of ADHD-IN, ADHD-HT, ODD toward Adults, Academic and Social Competence Dimensions with Teacher Ratings of Thai Adolescents: Additional Validity for the Child and Adolescent Disruptive Behavior Inventory Francesca Shipp + G, Leonard Burns - Chri Published online: 21 April 2010 “© Springer Science+Business Mei Le 2010 Abstract Confirmatory factor analysis was used (0 test the consinict validity of an attention-deficivhyperactivity disorder-inattention, attention-deficit/hyperactivity disorder-hyperactivity/impulsivity, oppositional defiant dis- order toward adults, academic and social competence factor ‘model with teacher ratings of Thai adolescents (1=872) with the Child and Adolescent Disruptive Behavior Inventory. The five-faet fit in_an absolute sense (ic, CFI RMSEA=.065; and WRMR=.883), All the items had significant and substantis! loadings on their respective factors (ie, > .18) with the five-tactors showing disesim- inant validity. The five-factor model also resulted in similar results for boys and girls separately a5 well as younger and folder adolescents. The current findings with the teacher version of the measure in conjunction with earlier research swith mothers? and fathers’ ratings of Brazilian, Thai, and American children (Buins et al., Psychologicul Assessinent, 20, 121-130, 2008) and Thai adolescents (Burns et al Psychological Assessment, 21, 635-641, 2009) provi increasing support for the construct validity of Child and Adolescent Disruptive Behavior Inventory withia multiple cultures. Procedures are also outlined to improve the content validity as well as test the construct validity of F Shipp “G. L. Bus 2) Deparment of Psychology, Washington State University, Palla, WA 9164-4820, USA email glbms@sueda C, Desmnal Gam Score, Ine Seatle, WA, USA forthcoming parent and teacher DSM-V ADHD/ODD rating. scales, Keywords Attention-deficithiyperactivity disorder Oppositional defiant disorder: Teacher ratings. Confirmatory factor analysis Thai adolescents Patent and teacher aitention-deficityperactivity disorder- inattention (ADHD-IN), AD!D-hyperactvityimpulsivity (tt) and oppositional defiant disorder (ODD) rating scales play an important role in research on ADHD and! ODD (eg identification of causes, risk factors, associated features and ‘outcomes associated with scores om the scales the evaluation of the effectiveness of treatments, and as part of the diagnostic process), Given the importance of the rating scales in understanding these disorders, it i essential that the seas have goad constrict validity (Bums and Haynes 2006). And, because content validity is a prerequisite condition for meaningful construet valcity (Haynes et al. 1995), effos should be made to maximize the conent validity ofthe scales. There ave atleast five issues relevant to the construction of ADHDIODD rating scales with good content validity (Bums et al. 2003), These five issues are: (1) wording of tke syimptoms on the scale; (2) the instwetions to parents and teachers; (3) the rating anchors used to quantify the ‘occurence of the symptoms; (4) the rating time interval; nd (5) a distinction between frequency of symptom ceurrence and impairment due to symptom occurence. ‘We will now describe how consideration of these five issues guided the tevision of the Child and Adolescent Disruptive Behavior Inventory (CADBN followed by a review of recent research with the revision in order to provide the rationale for the current sty. 2 springercontent validity of the revised scale, tere is no empirical evidence that this process resulted in scale with significantly better content validity. Positive evidence for construct validity in this study and the two eazlier ones (Burns et al, 2008, 2009) does not prove that the revised scale has significantly better content validity than the original, The argument for improved content validity is mostly a logical and clinical one. Recommendations Parent and teacher ADHD/ODD rating scales ply an important role in understanding these problems, For research to havea decent chance to identify unique extemal corelates, the scales must have the best content and construct validity possible. The first step requires the maximization of an ADED/ODD rating scale’s content validity forthe home and school settings (Haynes etal, 1995). Careful attention to the ‘guidelines for content validity in conjunction with research ‘and clinical knowledge about the ADHD/ODD symptoms should result in scales with better content validity. The second step requires an evaluation of the sesle’sinvarinnce, convergent, and discriminant validity for raters who observe children in the same setting prior to attempts to establish consttuct validity between raters in different situations. Ian ADHDIODD rating scale has strong content validity and ‘construct validity for two oF more raters in the same situation ce, mothers and fathers in the home; two er more teschers in the schoo), then such provides a better foundation to evaluate the results for raters indifferent situations as well as to sench for unique exieral eorelaes of scores on the scales, We encourage other researchers to consider these suggestions in the development of the forthcoming DSM-V ADHDVODD rating seales, References Armador-Campos, J. A.,Foms-Santacana, ML, Mantorell-Balanzé, B., ‘Guivdia Olmos, J, & Pesé-Cebolleo, M. (2005). 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For ease of dissertination and to ensure proper policing of use, paperstarticlas/cases and contribulions become the legal copyright of the AIBE/IABEYpubisher unless otherwise agreed in writing upto contansinaboAcepleee ete anpeID-215 (1 of RUNDIO7.2958 7Kogut, B. Joint Ventures: Theoretical and Empirical Perspectives. Strategie Management Journel, (4), 1988, 319-332. Lt, &, Developing Countries in the Intemational Economy, Macmillan, London, 1881, ‘ecraw, DJ. Bargaining Power, Ownership, Proftabilly of Transnational Corporations in Developing Countries. Journal of International Business Studies, 15(1), 1984, 27-43, ee, C., and Beamish., PAW, The characteristics and Performance of Korean Joint Ventures in Locs. Journal of international Business Studios, 26(3), 1985, 637-654 Lyles, M.A. end Baird, |. 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Contractor and P, Lorange (eds}), Cooperative Strateaies in International Business, Lexington Books, Lexinton, Ma, 1988, 390348,19-20 AN INTRA-ORGANIZATIONAL COMMUNICATION STRATEGY, ITS ANTECEDENTS AND CONSEQUENCES: AN EMPIRICAL EXAMINATION OF COMPUTER BUSINESS IN THAILAND Nuenieong Attherengsun, Mahesarakham University, Thailand Phapruke Ussehawenitchakt, Mahasarekham University, Thailand ABSTRACT The purpose of this research Is to snalyze how the intre-orgenizetional communication strategy (clverse communication Implementation, openness communication effectiveness, floxible communication channel and medi utlization efficiency) has an effect on organizational effectiveness through success of team relationship, excellence of working coordination, and astablishment of task creativity. Also, this research examines the moderating role of all of information technalogy competency and share vision climate. Likewise, this research investigates the antecedents of Intra-organizetional communication strategy. Computer business In Thailand is sample and questionnaire is used as a tool, Results reves! that diverse communication Implementation and media utilzetion efficiency have a positive Influence ‘on success of team relationship and excellence of working coordination. Media utiizalion efficiency only affects establishment of task creativity. Share vision climate is partial moderating reletionship between media utlization elficleney-success of team relationship and media uliization efficency- excellence of working coordinetion. In addition, establishment of task creativity has @ posilive effect on organizational effectiveness. Competitive orientation has a positive associetion with dverse ) communication implementation, while, horizontal organizational charecterstics and execullve supportiveness have a positive relationship with openness communication effectiveness and flexible ‘communieation channel. Furthermore, executive supportiveness only affects media ulilzation efficiency. Information technology competency moderates the relationship between horizontal i ‘organizational characteristics-diverse communication implementation, horizontal organizational cherscteristics-fiexible communication channel, horizontal organizational - cheracteristics-media Utilization efficiency and executive supportiveness-diverse communication Implementation. Theoretical and managerial contributions era explicily elaborated. Conclusion and suggestions and drections for the future research are highlighted accordingly. ° Keywords: Intre-orgenizational communication strategy, “Diverse communication implementation, i ‘Openness communicetion effectiveness, Flexible communication channel, Media utllzation efficlency j ‘Success of lean relationship, Excellence of working coordinetion, Establishment of task creativity, ‘Organizational effectiveness, Horizontal organizational characteristics, Competitive orientation, Executive supportiveness, Share vision climate, and Information technology competency 4, INTRODUCTION L ‘The world economy crisis during 2008-2009 affected all businesses worldwide such as financial i institution, service business, and industry business causing many companies to go out of business, to layoff employees so as to reduce expenses and responsibilly in operation, or lay plans to reconstruct ' the strategy so that the organization can survive. Like other countries, Thailand suffers the impact tremendously especially In economy. Many compenies faced with the problem of employee stkes are ‘out of business because companies lack communication with employees to understand the current situation, So the executive have to negotiate and reconcile within their own organization to improve the recession. Byme and Lemay (2006) explained that high quality organizational communication reduced number of employee strikes, lowered absenteeism which increased the overall qually of services. Organizations! communications is @ key element that affects the abilty of organizations to achieve the goals, organizational success end effectiveness (Byme and LeMay, 2008). Communication is the core process of organizing which individual activity is coordinated to devise, disseminate, and pursue ; ‘organizational goals (Gardner et al., 2001), At the same time, Byme and Lemay (2006) explained thet t organizetions-have @ need to communicate with employees, both positively end negatively, about \ major changes in business that affect the organization and/or the employees directly. Consequently, i communication provides a basis for understanding In the organizations; it also provides a basis for Viewing the aciivlies of the individuals who are employed by these organizations. Furthermore, } previous study found that a maneger spends nearly three-querters of hisiher time engeging In ‘communication. Carlson end Davis (1888) explained that communication activities account for a { INTERNATIONAL JOURNAL OF BUSINESS STRATEGY, Volume 10, Number 1, 2010 0 | I i f | i fRuss, G. S., Daft, R. L. and Lengel, R. 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N. 2008, Linking organizational culture, structure, sirategy, and organizational effectiveness: Meciating role of knowledge management. Journal of Business Research, In Press, Corrected Proat. AUTHOR PROFILES: ‘Nuanlaong Atthatrangsun eemed M.A. at Khonkaen University, Thalland in 2000, Currently she is a Ph.D. (Candidate) In Management at the Faculty of Accountancy and Management, Mahaserakham University, Thailand, Dr, Phapruke Ussahawanltchakit earned Is Ph.D. at Washington Stete University in 2002. Currently he is an associate professer of accounting and a dean of the Faculty of Accounting and Management, Mahasarakharn University, Thelland. INTERNATIONAL JOURNAL OF BUSINESS STRATEGY, Volume 10, Number 4, 2010 55 voCl 2\ International Jounal of Beonomie Perspectives, 2009, Volume 3, Issue 4, 297-308, — Cost Efficiency and Management Performance on Sericulture in Roi-Et and Mahasarakham Provinces Nitipbong SONGSRIROTE, Ph.D Business “Economics Discipline, Faculty of Accountancy ‘Mahsarakham University, 44150, THAILAND. ‘Tel: 043-754333 Fax: 043-754422, Mobile Phone: 084-3 105050 E-mail: econS$$@amailcom, kase151 @hotmail.com . Website: tp /Jwww kacesS) com Sutsna THANYAKHUN, Ph.D Department of International Business, Faculty of Accountancy and Management, Mahasarekham University, 44150, Mabasarakham, THAILAND. ABSTRACT ‘and Management, ‘The research sims to measure cost efficiency and identify the factors affecting cost efficiency on sericulture in Roi-Et and Mahasarakham Provinces as well as comparing farmer's management performance between high-efficiency and low-efficiency group. The findings of the research can provide the guides to inevease {the cost efficiency. Data are randomly collected from the farmers who operate scticulture in Roi-et and Moahasarakham in the year 2007. The samples are 210, Data analyses are composed of Stochastic Frontior Analysis (Cost Frontier), Tobit Regression, and mean comparison with t-statistic, The result appears that ost efficiency (CE) equals to 98.88% and major causes of cost eflicieney are management performance and credit from Bank for Agrivulture and Agricultural Cooperatives (BAAC), ‘The manegement Performance on the high-efficiency group being greater than the low-efficiency group are. planning, organizing, leading, ond controlling. To improve cost efficfenoy, she low-efficiency group eould learn how {manage their production and management performance fiom the high-efficiency group. JEL Classifica ion: C21; 002; D24; M10; Md. Keywords: Cost Frontier; Management Performance; Sericultur, 1. INTRODUCTION they have to stop producing, so the workers will bbe unemployed, ifeance of international trade ireasingly high and unavoidable, The tiempt for having interstienal trade especially - figs trode area (FPA) is widespread and it also FTA is considered to be an important ‘economic tool to expand trading opportunities, £9 fetly effects the Thai farmers; 0 having FTA As the way to reduce the taiffbariers and non {acft barriers among the trading parness. By the theory, FTA constitutes trade creation, tha is, ‘Wading volume increases, in addition, domestic Sonsumption also increases because of the low ~Pilce of commodities. Consumers will get the Denefit ffom the FTA but the producess vill be led Reeavely because’ they have to 6 the price to compete with the imported {§e0dk which sre cheaper. The profit beromes Hower, “and then farmers have to adjust « themselves to reduce production, If they eaunot SOmpele; such as they cannot reduce ihe cos, Infemationa Journal of teononie Pers ves ISSN 130: hitpulwws econ-soviety.cre create economic alliances, and at the same time, fo enhance the competitiveness of domestic goods and services, Under tho WTO Agreement ‘on Agriculture in 1994, Thailand specified the protection of agriculture production for 23 items uring 1998-2005. During that time, Thailand hastened to adjust the structure of agricultural Production under the agreement of WTO by Feducing the government subsidies, which was the cause of production and market distortion; in these items, the raw silk thread was also included. 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