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Review of
BUSINESS
Volume 26, Number 1 Special Issue: International Business
Winter 2005
MiCTA Service Corporation: Growing a Technology-
Assistance Firm for Non-Profit Organizations
An Interview with John Rathje, CEO
Homogeneity of Economic Performance of the
Euro-Land: A Statistical Analysis
The Use of Entry Methods in Identifying
Multinational Companies’ AdaptStand Behavior in
Foreign Markets
A Study of Differences in Business Ethical Values in
Mainland China, the U.S. and Jamaica
Corporate Social Responsiveness Orientation:
Are There Differences Between U.S.
and French Managers?
Leading Environmental Change: The Case of the
Global Mining Industry
St . John’s University
Queens, NY 11439
(718) 990-6768
[email protected]
review of business
The Peter J. Tobin Board of Advisors Richard E. Meyer
Global Excess Partners LLC
College of Nina Aversano
William L. Munson
Business Aversano Consulting, LLC
The Toa Reinsurance
Richard Carbone Company of America
Richard A. Highfield
Prudential Financial
Dean Joseph O’Connor
Robert J. Chrenc Gartmore Separate
Nejdet Delener
A.C. Neilsen, Retired Accounts LLC
Associate Dean
Jill M. Considine Thea Graves Pellman
Review of The Depository Trust Professional Design Systems
Company
John F. Robinson
Business Joseph F. D’Angelo National Minority Business
Larry W. Boone Hearst Corporation Council, Inc.
Editor John Donachie Lawrence J. Ruisi
Maxine Brady Fleet Specialists, Inc. Loews Cineplex
Contributing Editor James F. Dowd Entertainment
Gloria Brana Fairfax Inc. Joseph M. Saggese
Secretary Jack Foley Borden, Inc., Retired
Aer Lingus Joseph Scharfenberger
Frank Fusaro J.P. Morgan Chase Corp.
Forum Personnel Inc. Ronald T. Schroeder
Joseph Garcia J. & W. Seligman & Co., Inc.
Spanish Broadcasting Edward Smith
System KPMG
Ken Gorman Peter J. Tobin
Apollo Partners, LLC The Peter J. Tobin
Richard Kalenka College of Business
Automatic Data Processing, Inc. St. John’s University
Jerome Karter John P. Tutunjian
SCOR U.S. Corporation Gourmet Events, Inc.
William K. Lavin Charles Walsh
Consultant Chase Manhattan Bank,
Retired
George Maggiore
Keyspan
Charles P. Menges, Jr.
Bernstein Investment Research
and Management
Review of Business is published three times per year and distributed to alumni and friends of The Peter J. Tobin College of
Business. Articles published are refereed by members of the Editorial Review Board. The views presented in the articles are
those of the authors and do not represent an official statement of policy by St. John’s University.
©2005, St. John’s University. Reproduction of material without the express permission of the publisher is prohibited.
Member, Association for University
ISSN: 0034-6454 Business and Economic Research
Volume 26, Number 1
Winter 2005
table of contents
1
Winter 2005
Volume 26, Number 1
From the Editors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Nejdet Delener and John Angelidis
MiCTA Service Corporation: Growing a Technology-Assistance Firm for Non-Profit Organizations . . . . . . 4
An Interview with John Rathje, CEO
Interviewed by Gerald R. Ledlow and Mark A. Cwiek
Homogeneity of Economic Performance of the Euro-Land: A Statistical Analysis. . . . . . . . . . . . . . . . . . . . . 8
Tyler Tieliu Yu and Miranda Mei Zhang
The Use of Entry Methods in Identifying Multinational Companies’
AdaptStand Behavior in Foreign Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Demetris Vrontis and Ioanna Papasolomou
A Study of Differences in Business Ethical Values in Mainland China, the U.S. and Jamaica . . . . . . . . . . . 21
Lillian Y. Fok, Sandra J. Hartman and Kern Kwong
Corporate Social Responsiveness Orientation:
Are There Differences Between U.S. and French Managers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Nabil A. Ibrahim and Faramarz Parsa
Leading Environmental Change: The Case of the Global Mining Industry . . . . . . . . . . . . . . . . . . . . . . . . . 34
Scott T. Young
From the Editors
from the editors
2 3
Nejdet Delener, The Peter J. Tobin College of Business, St. John’s University
John Angelidis, The Peter J. Tobin College of Business, St. John’s University
Two major trends will dominate the world trading order: the with pertinent information and purchasing assistance among U.S. and French managers. Their study measures References
push toward globalization and the simultaneous pull of relating to the purchase of technological products. An corporate social responsibility orientation along four
regionalization. The unprecedented technological interview with its CEO, John Rathje, reveals how the dimensions: ethical, legal, economic and discretionary. 1. Eden, L. and S. Lenway. “Introduction to the Symposium
developments during the past decade of the twentieth company competes in its industry and its involvement in Multinational: The Janus Face of Globalization,”
Another major issue that affects international business is Journal of International Business Studies, Vol. 32,
century, the dramatic increase of the number of countries international projects.
environmentalism. International corporations have come No. 3, 2001, 383-400.
that embrace free trade, and decreased restrictions on
While the World Trade Organization deals with lowering under great criticism because their operations create
transportation and travel ushered in an area of global 2. Molle, W. “Globalization, Regionalism, and Labor
trade barriers among major world markets, regionalization tremendous environmental deprivation. The global mining
markets. Furthermore, with innovations in Markets: Should We Recast the Foundations of
allows groups of countries to integrate further their industry in particular has created serious environmental
telecommunication technology including the Internet, the EU Regime in Matters of Regional (Rural and
economic and trade cooperation. Regionalization includes problems. Scott Young examines how this global industry
publishing syndicates, motion picture industries, television Urban) Development?” Regional Studies, Vol. 3,
free trade groups such as NAFTA. The most successful of takes the lead in correcting its environmental activities.
networks, and news wire services, people throughout the No. 2, 2002, 161-172.
these groups is the European Union. Frequently one
world are in ever-closer contact with each other. Therefore, All manuscripts went through the normal double-blind
wonders whether all the economies perform the same from 3. Thoumrungroje, A. and P. Tansuhaj. “Globalization
an increasing number of enterprises are acting on a global review process and each was revised at least twice before
such integration. Yu and Zhang study the economies of the Effects for Marketing Alliance and Performance,”
basis and doing business within foreign cultures in some final acceptance. This volume would not have been
fifteen European countries utilizing the Euro as their Journal of American Academy of Business,
manner. published if we had not had the support and collaboration
currency. Vol. 5, Issue 1/2, 2004, 495-503.
of numerous helpers. First of all, as the guest editors of this
Increased globalization is an important topic for business
The international business environment spans a spectrum of special issue, we would like to express our sincere
and the economy. However, globalization is also
two extremes, a globalized versus a multi-country appreciation to Larry W. Boone, Editor of the Review of
controversial. Increased globalization is the promise of
environment. On the one hand globalization is Business, for encouraging us to undertake this venture and
expanded economic opportunity and increased prosperity.
characterized by standardization of products, processes and providing outstanding support throughout the development
On the other hand, some individuals may fear that
resource utilization on a transnational scale, while on the process. In addition, we would like to express our profound
globalization causes inflation, unemployment, monopolies
other hand a multi-country environment requires the appreciation to the reviewers for their time, diligence,
and materialism.
adaptation of products, processes and resources to the socio- professionalism and insightful comments.
Globalization refers to the process of increasing social and cultural, political and economic conditions of each country
cultural inter-connectedness, political interdependence and with which a company is doing business. Demetris Vrontis
economic, financial, and market integrations [1,2,3]. During and Ioanna Papasolomou study major U.K. multinational
the past two decades, globalization has caused dramatic corporations to see what factors affect their decision to
changes to business around the world. Limited studies have standardize or adapt their marketing mix in international
been conducted to investigate how globalization actually markets.
affects corporations and how corporations respond to such
Among the most important factors affecting international
effects. Thus, this issue of the Review of Business deals with
business is ethics. Ethical considerations affect every aspect
the ways international business supplements the operations
of management at the national level. The issue of ethics
of a national company, it examines the economic disparities
becomes more complicated in the international arena.
that exist among advanced economies, it studies the factors
Practices that are considered unethical and unacceptable in
that influence product adaptation decisions of major
one country may be tolerated or encouraged in another
multinational corporations, it reveals ethical and social
country. Companies might decide to avoid doing business
responsibility differences among various countries and it
within certain countries because of questionable business or
describes the strides the global mining industry has made in
governmental practices. Fok, Hartman, and Kwong study
dealing with environmental challenges.
differences in business ethics between Mainland China, the
A lot of companies have utilized an incremental approach to United States and Jamaica and the way they have changed
international business–as is the case with MiCTA. MiCTA over the last ten years. Ibrahim and Parsa focus their study
clients are not-for-profit organizations. It provides them on differences of corporate social responsibility orientation
MiCTA Service
Corporation:
Growing a Technology-
Assistance Firm for
Non-Profit Organizations
MiCTA service corporation:
4 5
MiCTA Service Corporation: Growing a Technology-Assistance
Firm for Non-Profit Organizations
An Interview with John Rathje, CEO
Interviewed by Gerald R. Ledlow and Mark A. Cwiek, Central Michigan University
supply phone service on campus. The problem was that efforts of our organizations, we have streamlined input
many lacked the know-how and expertise to install to our process, which enables us to deliver solutions
MiCTA, a national organization based in (CMU). He was responsible for overseeing asset phone switches and systems. A few people in the more effectively and to build more dynamic, diverse and
Mount Pleasant, Michigan, provides its management, Client/Server systems administration, higher education market had prior experience, and they valuable programs.
members, all non-profit organizations, application development including Intranet and Internet were willing to share their insights with others. For the
development, security administration and multimedia The government has also been a major influence on our
with information and purchasing first few years, MiCTA was a loose gathering of
development. direction. Through various mandates and government
assistance concerning technology products telecommunications directors who met a few times a
funded programs, we have shifted some attention to
and vendors. It acts as a clearinghouse of Prior to his position at CMU, Mr. Rathje was the co-founder year to share strategies. After time, these directors
ensure that kindergarten through high school (K–12)
information concerning voice, data and and president of Diversified Computer Group, Inc., a firm recognized an opportunity to work together to
and library organizations realize maximum cost
video issues and problems and works to that specialized in computer-related technology and services. influence the price they paid to the major long distance
reductions through participation in the eRate program.
develop and sustain quality, cost saving In this capacity, he managed numerous application carriers. By aggregating their demand for these
The eRate program is a federally run program, used to
technology programs. development and technology implementation projects for services, they were able to show the long distance
offset the cost of telecommunications services and
corporate customers. carriers that they could bring significant business to a
There are currently more than 15,000 members of MiCTA products for K-12 schools, libraries and rural health
carrier, thus reducing the carrier’s need to manage
representing local, state and federal governments; John Rathje received his BS (1988) in Physics and MS (1997) organizations.
multiple contracts and respond to diverse needs. After
education and health care institutions; libraries; and other in Computer Science from Central Michigan University. He MiCTA offered its first formal request for long distance Compliance concerns attributed to the Health Insurance
non-profit groups. Each of the 50 states has at least one began working with MiCTA on a volunteer basis before services, member costs were greatly reduced, in some Portability and Accountability Act (HIPAA) have also had
organization that is a member of MiCTA. taking a full time position as President of Operations in cases by more than 50 percent. The focus on educating an impact on our reach to help health care organizations.
2000. In early 2004, the board of directors promoted him to members and building programs continues today.
MiCTA gathers information on new products and services, All totaled, we have more than 19,000 organizations
his current position.
appraises them and evaluates vendors. Through included in our membership list, either through direct
Q: Who are the members of the MiCTA Association and
conferences, training and professional development, it Q: MiCTA – That is an unusual name, and it represents an membership or through association affiliations. We will
why do they join your group?
provides this information to its member administrators. It unusual line of business, does it not? continue to grow in members, and as we do, our
offers technical briefings, legal findings and industry trends A: Membership in MiCTA is open to any non-profit or commitment to help each member save money and
A: This is a question that I have answered enthusiastically governmental organization, nationwide. Today, we better understand technology also deepens.
and direction. MiCTA will analyze a member institution’s
many times before. MiCTA is unique in several ways. We have primary and secondary educational groups, health
telecommunications bills to determine the program that
started as a small association of Michigan Colleges and Q: Do organizations join MiCTA primarily to participate in
best fits its specific needs, based on the member’s usage care, municipalities, states, charities, church groups and
Universities and dealt purely with telecommunication your cost effective buying rates?
pattern. others who are eligible for our services. Since our origin
needs. Over time, our mission changed to help came from the higher education market, we have a very A: Many join for cost savings. Even very large
MiCTA participates in governmental and regulatory organizations in all of the non-profit sectors–across the strong following in the community college and organizations can realize savings through our
proceedings affecting technology issues and influences the nation and beyond. Our two main areas of emphasis are university setting. In the mid-1990s, we began working agreements. We also hear from our members that the
development of voice, data and video-services to members helping our members become more proficient with closely with the Midwestern Higher Education Compact peer information sharing, technical briefings and
at reduced costs and improved quality. It also enables its available technologies and then building cost savings (MHEC). They had a charge to develop educational training sessions are also an invaluable part
members to purchase technology equipment at significantly programs for them to use. Our organization has telecommunications programs and determined to model of their membership. As we grow, we intend to provide
lower prices by aggregating the purchases of services and developed programs in the areas of voice, data, video, their program with ours. The guidance and input additional services for our members. The services that
products. Members can save up to 50 percent over educational technology, wireless, computing, network resulting from this cooperation led us to the other we provide are primarily free, although we do host
individual purchase price. By negotiating for contracts equipment and other related services. regional educational compacts: the Southern Regional conferences that require an attendance fee.
yielding most favored pricing for its members, MiCTA Education Board (SREB), the New England Board for
Q: How did MiCTA get started?
reduces the cost of technology and improves the quality of Higher Education (NEBHE) and the Western Interstate For an annual membership fee of $75, organizations
service, which enables member institutions the option of A: In the early 1980’s, many colleges considered starting Commission for Higher Education (WICHE). After some receive values that can exceed tens and hundreds of
forgoing their own costly research and purchasing processes. their own telecommunications departments. Up until very productive discussions, the four compacts and dollars in reduced costs. These savings are achieved
John Rathje is President and CEO of MiCTA Service that time, colleges were primarily using service MiCTA founded the American TelEdCommunications through aggregating the volume of services and/or
Corporation (MSC). Before joining MSC, he was the Director providers. However, with the breakup of the Bell Alliance (ATAlliance). The ATAlliance is a growing and products that our programs provide. With this
of Advanced Technology at Central Michigan University system, many organizations saw an opportunity to very dynamic organization. Through the combined aggregation of volume, MiCTA negotiates service and/or
MiCTA Service MiCTA Service
Corporation: Corporation:
Growing a Technology- Growing a Technology-
Assistance Firm for Assistance Firm for
Non-Profit Organizations Non-Profit Organizations
6 7
products at the lowest possible rates for our members. an impressive lot – MCI, WebCT, Blackboard and Office Many of the Black Forest members were reviewing ways The challenges are the same as they were 20 years ago,
This negotiation is conducted after an extensive Request Depot/Tech Depot, to name a few. to establish commerce with multiple providers in a but you can look around and see that the number of
for Proposal process that many of our members secure environment. Our involvement was one that proposed solutions have increased significantly. We have
participate in, along with our experts, to find the best Our agreements with these vendors are dynamic. This
identified ways to leverage our membership and vendor the challenge to stay on top of the curve.
vendors that meet what our members need. means that as changes in the industry occur, such as
partners to build an affordable model. Due to recent
development of new services and adjustments to Q: What do you see are the three greatest opportunities
As our membership makes us aware of services or economic conditions, we have not been as engaged in
pricing, the agreements can continuously evolve to the for MiCTA in the future?
products that have a common and wide impact, we will this effort.
benefit of the member. We insist on favorable pricing
do what we can to assist members to be served by A: Opportunity exists in understanding our member needs.
and use the volume of our membership as the key Our video integration provider, Innovative
vendors of those services and products. We have helped We are hearing more and more displeasure with the lack
instrument in leveraging these prices. With involvement Communications, has done a great deal of work in
members with legal and regulatory concerns and have of access to decent bandwidth. Additionally, members
from the founding members of the ATAlliance, we have China, Taiwan and Japan. As education and commerce
done extensive testing on new technology solutions. want to be able to interact with systems, applications
a very strong case and great opportunity to impact on a become more global, we believe our reach will also
We feel fortunate to help in so


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