Business Bridge - Issue 33 by Hong Kong Baptist University - School of Business

HONG KONG BAPTIST UNIVERSITY Issue No.33, Feb 2016 第33期,2016年2月

Successful business leaders shed light on entrepreneurship Angel investors and venture capitalists advise on capital raising in Asia

Vision, Mission and Core Values Our Vision We aspire to be a leader in whole-person business education and a centre of excellence in business research in selected strategic areas, with a view to inspiring business practice, creating values for stakeholders, and enhancing social and economic growth and development.

Our Mission Through internationally recognised business education programmes and research achievements, our School seeks to nurture visionary and ethical business leaders who make a difference to their organisations and industry, and to the evolving needs of Hong Kong, mainland China and the global community.

Our Core Values • • • • • • •

Quality Integrity Professionalism Innovation Global Perspectives Teamwork Social Responsibility

Student Reporters School of Business Blair Au Yeung A BBA student majoring in Economics, Blair embraces the world with an open heart and grit. Reading and travelling are two of her greatest passions in life, for she believes: either body or soul, there must be one on the road. Sincere Kwan An explorer by nature, Sincere has an innate sense of curiosity such that only the life of a journalist can keep her happy, excited and inspired. Sincere has internship experiences with Sing Tao News Group and China National Radio (Beijing) prior to joining the team. Chloe Lee An optimist who loves to try new things and explore. Seizing every opportunity to broaden her horizons, Chloe never feels tired of smiling. Anny Liu Literary, musical and athletic. Anny has an eclectic range of interests and never ceases to challenge herself. Being a BBA student majoring in Finance, she has an insider’s knowledge about life at the School of Business and brings us more news bits from beyond.

Business Bridge is published by the School of Business of Hong Kong Baptist University. All rights reserved. For subscription or reproduction of any parts, articles and/or photographs in this publication, please contact the School at 3411 5558. To change your personal information, please e-mail to bus@hkbu.edu.hk or fax to 3411 5588. The information provided will be restricted for permitted use as defined by the University.

Contents Issue No. 33

2-9

Feb 2016

| Features New Honorary Professor Shih Wing-ching on Entrepreneurship The quality of a successful entrepreneur The entrepreneur with a big heart - Mr. L.T. Lam Winner of Industrialist of the Year shares his core values in life Will private capital raising be mature in Asia in the near future? Interview with Mr. Simon Wong, Mr. Desmond Marshall and the HKBU student team

10-12 | Research Excellence CEO characteristics and corporate entrepreneurship in transition economies: Evidence from China Self-loveâ&#x20AC;&#x2122;s lost labor: A self-enhancement model of workplace incivility Hurting or helping? The effect of service agentsâ&#x20AC;&#x2122; workplace ostracism on customer service perceptions

13-14 | Global Engagement 15-18 | School News 19-20 | Alumni Corner

Features New Honorary Professor Shih Wing Ching on Entrepreneurship The quality of a successful entrepreneur

The School of Business conferred an honorary professorship to the founder of Centaline Group and am730, Mr. Shih Wing Ching, JP, as recognition for his outstanding achievement in entrepreneurship and management on 15 September 2015. The ceremony also marked the beginning of the academic year for our new postgraduate students.

Mr. Shih Wing Ching speaks at the conferment ceremony

Business Bridge Issue No.33 Feb 2016

In the acceptance speech, Mr. Shih shared the topic of “Property Rights and Its First Time Distribution”, detailing how the economy can be better balanced with the proper distribution of newly created wealth. He used his own company as an active example, demonstrating his idea of “developing through self-organising” and “cooperative development based on the fair distribution of newly created wealth”, advocating students and alumni to bring it into their work place and together, build a better world.

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Interview with Mr. Shih Wing Ching Popular and outspoken, Mr. Shih Wing Ching has always been associated with the property market in Hong Kong. While his words of wisdom always appear in his paper am730, the School had the chance to hold a short interview with our new honorary professor on the topic of Entrepreneurship. What, in your opinion, is the quality of a successful entrepreneur? “I believe that one does not have to be very smart to start a business. You just have to have the right passion and determination,” Mr. Shih divulged. “When I was an employee before I started Centaline, I strongly felt that my contribution to my company was not proportional to my pay. And that feeling of inequality prompted me to start my own business.” “With my own business, I can dictate my own agenda and tempo, and not be restricted by someone else. That was also a major motivation for me,” Mr. Shih further explained. “A person with nothing to lose and fall back on is also more likely to be a successful entrepreneur.” The current state of the global economy may not be the best time for entrepreneurship. What are your views? “Anytime is the best time to start a business,” said Mr. Shih. “There are great entrepreneurs in all generations. Take Wang Wei of S.F. Express as an example. He was a delivery guy in Shum Shui Po on a motorbike in the early 90s, but he made it all the way to the top, owning a few aircraft now. History has shown that, in every era, there will be many great entrepreneurs.” “One who wishes to start a business has to understand that China is undergoing big changes now. The speedy economic growth in the past few centuries has hit a bottle-neck. The once flourishing manufacturing businesses have been hitting rock bottom in recent years. And corporations turned their heads from export-oriented businesses to satisfying local needs. Entrepreneurs have to recognise that, and find the niche that suits the current situation. I found my niche at my time when property agents were not doing their job of serving clients but relied on speculative investments. Centaline bridged that difference, offering customer-oriented services, and hence came the success. Young people nowadays have to find the niche in today’s world.” Are start-up funds and land prices stumbling blocks for Hong Kong young entrepreneurs? “I started Centaline with HK$5,000 in 1978, and that was around two to three months of pay back then,” Mr. Shih explained. “I don’t see anyone who is determined to start business have difficulty saving up that amount. If you talked about property rental, the current Hong Kong rental prices are not at its highest, we saw higher prices in the 80s and 1997.” “For start-up funds, hot money has been floating around in the past years since the start of QE (Quantitative Easing). It is not hard to find angel funding now, as long as you have the story to tell - a story that sells. It’s not too difficult actually.” Any last sharing with our Business Bridge readers? “Last week, while I was on a train from Guangzhou to Hong Kong, I met an old guy sitting next to me. He was an early entrepreneur of Hong Kong, starting plastic businesses in Hong Kong and then China. He shared with me how he switched from plastic to the electronics industry, and later on to manufacturing of mobile phone circuit boards. He didn’t have much education and funds when he started, but as times goes by, his experiences, his knowledge and his wealth all added up. That put him through many ups and downs, and he is still trying something new today. The road for our young entrepreneurs is always there, for the one with passion and perseverance, as it has never been an easy path.”

Profile of Mr. Shih Wing Ching Mr. Shih Wing Ching, entrepreneur and an activist in charity and philanthropy, was born in Shanghai and brought up in Hong Kong. In 1978, at the age of 29, Shih jointly started Centaline Property Agency Limited (“中原地產”) with his classmate on a capital of $5,000 each. The group has grown to become one of the largest property agencies in China, achieving multi-billions of commission income and service fees from businesses in the mainland. In 2005, when few were optimistic about media businesses in Hong Kong, Shih took $100 million from his personal savings and launched the now-leading free newspaper, am730. Till now, Shih continues to be an active columnist in his own paper, sharing his unique worldviews, giving insights as an entrepreneur and detailing life experiences. While highly successful on the business frontier, Shih donated all his shares in the Centaline Group in 2008 to his charitable Shih Wing Ching Foundation (“施永青基金”), in support of the farming population in mainland China. Later in 2010, Shih also injected 76% of his shares in am730 into his foundation. In support of entrepreneurship in Hong Kong, Shih started the am730 Startup Fund in 2011 to fund local start-ups, and to continue his management philosophy of developing through self organising and cooperative development based on the fair distribution of newly created wealth.

To know more about Mr. Shih, visit http://www.shihwingchingfoundation.org/ http://www.am730.com.hk/startupfund/

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The entrepreneur with a big heart, Mr. L.T. Lam Winner of Industrialist of theYear shares his core values in life In 2015 at the age of 91, Mr. Lam Leung-tim (commonly known as L.T. Lam among the first generation of industrialists in Hong Kong) received the Industrialist of the Year Award for his contribution to the local toy industry. He was honored with this award not only because he is a pioneer in the history of Hong Kong’s toy industry, but also because of his courage and vigor to start a new company at the age of 90. His new venture, Funderful Creations Limited, was founded with a mission to revitalise his own creation, the iconic rubber duck. The yellow duck that he invented in 1948 was Hong Kong’s first plastic toy coming before Peter Ganine’s floating duck, which was patented in the United States a year later. At his age, one might question whether he is that hands-on in this new venture. During the short interview, there were two observations. First, Mr. Lam was still very much young at heart, going around the room showing his priceless antique toy collection with hyper energy. Second, his phone kept ringing with most calls related to his new adventure. He even travelled in the early morning after returning from the mainland, officiating a ceremony at which he sponsored a primary school. It was not hard to see that he has a big heart overflowing with energy.

Why toys? Born in war-ridden times, Mr. Lam’s childhood was almost ruined by the Japanese occupation, when his late father was killed during a bomb attack by the Japanese. When he asked his mother why a small country like Japan had the ability to invade China, he was told that the funds to buy bullets came from the selling of toys. Baffled, the seven-year-old Lam was determined to manufacture toys in his home land out of a surge of patriotism. While Mr. Lam lives his childhood dream today, patriotism was the key driver for his unwavering passion in the toy industry. Many of the peers in his generation eventually moved on to other business fields like property development, but he stayed loyal to the toy industry. His passion and focus are no doubt ingredients to his success. Mr. Lam, the first from right, knew the power of sales and marketing at HK Brands and Products Expo Fair as early as the 1950s

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One of the pioneers of toy manufacturers in China, Mr. Lam has been described as full of childish innocence

Catching the winds One might have heard of a famous quote by Xiaomi’s CEO Lei Jun -“If you ride on the strong wind, even pigs can fly” (站在風口上，連豬都會飛). While everyone is busy hunting for their “wind” of the 21st century, Mr. Lam did so 70 years ago. Upon his graduation, Mr. Lam turned down a well-paid job as a HSBC teller to be a newspaper salesman in Central, for the reason of “meeting new people every day”. He chose to work at a humble newspaper kiosk located at the heart of the central business district. With the daily habit of reading trade magazines, the entrepreneur found his direction - the then revolutionary plastic technology. In those days, toys were mostly made of cellulose, metal, clothes or wood. He was inspired by the idea of using plastics in toys. You may wonder why we’re yellow. The reason goes back nearly seven decades. After long, dark years of war, our creator, the ninety-year old Mr. L. T. Lam, dreamed of a world filled with colour. He launched countless yellow ducks like us to serve as ambassadors of happiness and peace for children everywhere. Today, we yellow ducks still have important work to do. Mother Earth strains to meet not just the desires of people, whether for smart phones or fast fashion, but your most basic needs. Our hope is that all children will learn to share, play and live together harmoniously, so that future generations will continue to enjoy peace, friendship and prosperity. Join us in making this happy dream a colourful reality.

Once he had made up his mind, he relentlessly acquired trade information about the toy manufacturing industry. He joined an industrial materials trading company, and promptly advised his boss to specialize in the trading of plastic materials, which were only used in the manufacture of home appliances at that time. Years later, he started his own company, Forward Products, which was merged with his former boss’ Winsome Plastics Works, to become Forward Winsome Industries Ltd. The rest is history.

On his core values History shows that Mr. Lam’s integrity in business dealings is astute. “On my success factors, it’s simple. Honesty, trustworthiness and diligence,” said Mr. Lam. “I treat all of my employees like a family, and they are very loyal. In fact, some of my old pals are still working with the company.” It is this group of employees that not only raise productivity, but also bring a life-long friendship, and sometimes, unconditional help. In his most difficult times, his industrial peers even lent him start-up funds without collateral. “My willingness to help others often comes around and pulls me out of many difficult situations. But sometimes my bluntness and code of ethics backfire,” Mr. Lam divulged. “I always say no to unnecessary entertainment, under-table dealings and kick-backs. I may have turned down a lot of business because of that and earned far less than I should have, but those who liked my style, stayed around until today. My sincerity and integrity was my biggest asset, be it with my customers, my suppliers and my staff alike.” With that coming from a man who has attained so much in his life so far, it is surely a solid motivation for our students to respect business ethics. To know more about Mr. Lam’s original creation - Lamontea, please visit www.funderful.com.hk

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Will private capital raising be mature in Asia in the near future? Interview with Mr. Simon Wong, Mr. Desmond Marshall and the HKBU student team According to a report issued by the National Venture Capital Association (NVCA) of the U.S. and PricewaterhouseCoopers LLP (PwC), venture capitalists invested US$48.3 billion in 2014. It was a ten-year high, representing an increase of 61 percent in money terms. Among the 4,356 deals completed in the year, two deals amounted to over one billion U.S. dollars. There is no doubt that the fundraising environment in the U.S. has entered a mature stage. We all witness a high concentration there and to some degree in Europe. But Asia has yet to pick up, and local funds have been capped at US$3 billion only. There is a big gap to fill. In order to better understand the mechanics behind available venture capital for our students and alumni in Hong Kong, and also the requirement of such investors, we will look into the story of a veteran angel investor, Mr. Simon Wong, and one of the biggest platforms of such, Pitch Perfect.

An entrepreneur’s angel, Mr. Simon Wong No matter what the future holds, how could an entrepreneur convince potential investors to dip into their pockets? During the “Entrepreneurship Seminar Series: An Entrepreneur’s Angel” held in October 2015, Mr. Simon Wong, Founding Partner of Whiz Partners Asia, shared his encounter with the headline maker Jack Ma as an example of how he chooses his investments. Simon was one of the early angel investors of Alibaba nearly twenty years ago. He even wrote the business plan for Ma when Ma was lacking funds to pay the business registration fee for its debut in the U.S. While fund raising for Alibaba was never easy, Simon injected US$500,000 into Ma’s embryo startup, after listening to him for just 30 minutes. During the growth of the company, they had been put under tremendous pressure by conditional clauses of investment banks commonly set out to generate return on investment, and it was a roller-coaster ride before Alibaba became what it is today. As an angel investor, Simon normally hand-picks his CEOs carefully, and follows up their development throughout. “To decide whether the business is worthwhile to invest in relies on keen observation and long-term investment”, he said. Simon believes that without a proven track record, the ability to clearly communicate visions and dreams is a critically important asset of a CEO, and that was one of the major determinants in his selection.

Mr. Simon Wong speaks at the Entrepreneurship Seminar Series

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Over 50 teams take part in the pitching

Innovative platform for connecting entrepreneurs and angel investors – Pitch Perfect Times change and new forms of fundraising are emerging in Hong Kong. Pitch Perfect instant investor matching competition is a new fundraising platform for budding entrepreneurs. The competition has been held consecutively for three years since 2013. Every year, over 200 teams apply and pitch, with only five winning teams going into the final stages of due diligence, review and funding processes. For teams that go all the way, they will be coached by industry experts including professional accountants, motivators and industry advisors.

Mr. Desmond Marshall, one of the core organisers behind Pitch Perfect

The coming Pitch Perfect event is going to be held in Hong Kong in March 2016. If you aspire to be the next big entrepreneur appearing on Forbes magazine, visit: http://www.pitchperfectevent.com

One of the brains behind this platform is venture capitalist Mr. Desmond Marshall, Managing Director at Rouge Ventures, who spoke to us on the development of the fundraising scene. What kind of projects are investors at Rouge Ventures looking for? “We normally seek proprietary technology that cannot be replicated easily. Many of our contestants had some businesses in hand, and were looking for funds to expand. While the pitching competition is open to anyone who wants to give it a try, the investors do look for certain traits in the presenter, but most importantly we are very focused on the proposed business model. The skill set and operational knowledge can be taught, we have the expertise to do that, I myself have been advising luxury brands operating in Greater China for years. The business model can’t be taught.” “In terms of industries, our group of investors have the experience to groom a wide spectrum of industrial sectors, ranging from medical, robotics, new materials and retail industries.” Why does Pitch Perfect choose to hold the platform here in Hong Kong? Desmond acknowledges the unique geopolitical position of Hong Kong, and the ethical mindset of Hong Kong entrepreneurs: “while mainland Chinese investors are eyeing overseas markets, European and American investors still wish to enter the vast hinterland of China, and Hong Kong sits right in the middle”. “Foreign investors like the ideas proposed by Hongkongers,” he said. “Entrepreneurs here are more down to earth compared to the entrepreneurs in China, and most of them set their sight and attention on execution. Frankly, no projects can be pushed to a national level overnight. Small scale implementation at first, and replicate that model to other cities, is usually what investors expect.” Business Bridge Issue No.33 Feb 2016

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Business toddlers trying out at Pitch Perfect Encouraged by our Associate Director of the BBA (Hons) Programme Mr. Simon So Kwan-kow, a team of HKBU students, comprising students from various faculties in HKBU including the School of Business, participated in the Pitch Perfect event in November 2015, and competed against the best.

their sight on gaining an eye-opening experience, through a real life fundraising competition. With advice from Simon, the team picked the product line specialized in curing eczema to target at the general public for the pitch. It took them less than 60 days to prepare the pitching materials, right before their mid-term exam.

Five months prior to meeting the team in a General Education class, Chinese Medicine student Judy Tam Pui-sum started her Instagram shop “#cmed” and “#cmedsoap” selling hand-made beauty and health care soaps with her own savings.

Although the team didn’t win any actual funds in the end, they earned the applause of the audience for being the only student team. In the process, the team understood what they were lacking, with missing data and financial calculations as the main culprits. Thanks to our School of Business Alumni Association that lined up this wonderful opportunity for our students, we are expecting more student teams to shine on the stage of this pitching event in the near future.

Judy developed her product lines with different medical benefits out of her decade-long belief in the effectiveness of Chinese medicine. Her aspiration of becoming a Chinese medical doctor came from the time when she picked herself up from a long struggle in chronic illness, with the help of Chinese medical treatment. With that business in mind, Judy met her team members, namely Jack Yip Wing-hang, Kelly Wong Chung-ting and Chan Ngai-sze. Together they decided to use her case in the competition. While the potential investment was attractive, Judy and her team accepted the fact that they might not be up to professional standards. Moreover, they set

The brave business toddlers (from left), Jack Yip Wing-hang, Judy Tam Pui-sum, Kelly Wong Chung-ting and Chan Ngai-sze

The School of Business Alumni Association Since its inception in 2011, the School of Business Alumni Association aims to bring together our alumni in the business world; establish a concrete network among our alumni; and offer our alumni a channel to contribute to the School. In the aftermath of the Pitch Perfect student team participation, they lined up fellow School alumni to potentially help Judy place her products at their clinics. To become part of this network, check out the SBAA home page here: http://alumasso.hkbu.edu.hk/hkbusbaa/ about.php

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(From left) Miss Ivy Ku, Mr. Franklin Fong of HKBU SBAA and Mr. Desmond Marshall

School of Business launches new Concentration in Entrepreneurship The prevailing trend of globalization leads to a new horizon to business enterprises in Hong Kong and China. Entrepreneurs in Hong Kong are required to re-orientate their business and develop a global perspective for their companies in order to survive and excel in the world economy. In response to the changes, the School of Business plans to take the lead by offering an Entrepreneurship Concentration to train entrepreneurs with a global mind as a distinct academic discipline and systematic training programme which is essential to the development of Hong Kong’s business community.

The first of its kind in Hong Kong The HKBU School of Business, well known for its holistic approach to management education, is well positioned to offer its BBA students the first Entrepreneurship Concentration in Hong Kong for those interested in the area of startup ventures or being an innovative executive in large and established corporations. Through an intensive practical education, the School offers this Concentration to provide students with the skills and mindset needed in entrepreneurial startup situations and as change agents in corporations. Distinctive Features • Mentoring / coaching from experienced entrepreneurs • Networking with leading entrepreneurs • Exchange opportunities with top entrepreneurship programmes in universities overseas • Internship opportunities in startups or companies with seasoned entrepreneurs • Sponsorship for business competitions • Implement your own venture • Field trips • Seasoned entrepreneurs seminars • Industry expert panel support The “manager” is thought of as controlling a single department or a division of an organization which may or may not have a direct impact on that organization’s bottom line. The “entrepreneur” casts a much wider net – from sales, operations, compliance, quality, service and certainly financial results. When a manager spots a problem, he files a report; when an entrepreneur spots a problem, he takes ownership and resolves to correct it.

Mr. William Leung

Chief Executive Officer, Sun Hung Kai Financial Limited Chairman of the School of Business Advisory Committee, HKBU The entrepreneurial mindset is very useful whether you are in business yourself, helping in your family business or an employee at someone’s business. Being an entrepreneur often means taking risks. In today’s highly competitive world, possessing the entrepreneurial spirit will enable you to think and act in fast-paced, rapidly changing and uncertain environments. The Concentration will provide the tools to energizing the organization and to find tomorrow’s opportunities.

Mr. David Lee

Chairman, Lee Kum Kee Family Foundation Member of the School of Business Advisory Committee, HKBU

The School is planning to set up an “Entrepreneur Center” as a supporting arm to the Concentration with leading and renowned entrepreneurs as founding members. The Center will offer financial support, mentoring and coaching to students taking the Concentration and be a platform for local entrepreneurs to share their ideas and experience.

To know more about enrolment requirements, please visit: https://bba.hkbu.edu.hk

Research Excellence CEO characteristics and corporate entrepreneurship in transition economies: Evidence from China Li-Qun Wei and Yan Ling. Journal of Business Research, 68(6), 1157-1165. (2015)

Schmooze or Lose Steve Jobs. Bill Gates. Jack Ma. In contemporary management lore - and on MSNBC - the CEO is often presented as a business visionary, his personality alone imbuing his company with the qualities needed to succeed in a competitive world. But is it always true? Professor Li-Qun Wei and Yan Ling, in a paper titled: “CEO characteristics and corporate entrepreneurship in transition economies: Evidence from China”, dispel the myth of CEO omnipotence in transition economies. Identifying the ability to pursue corporate entrepreneurship, (“CE”, the sum of a firm’s innovation, venturing and strategic renewal activities) as a key competitive advantage, Professors Wei and Ling interviewed the CEOs and CFOs of 198 Chinese firms. The research focused on three CEO characteristics: appointment background (was there a competitive selection process?), foreign work experience and network ties (political or not; within or outside the industry). The data demonstrate that 1) CEOs recruited using competencebased competition, as well as CEOs with foreign working experience, are more motivated to allocate resources and restructure businesses to capture entrepreneurial opportunities. 2) Compared to CEOs in large firms, small firms’ CEOs that focused on developing relationships with government bodies were also more involved in CE. 3) Compared to CEOs in large firms, small firms’ CEOs with fewer outside-industry ties were less capable in promoting CE. 4) The influence of CEO’s political ties on CE was especially obvious amongst firms facing rapid changes in market demand, competitors and technology. Profs. Wei and Ling conclude that a CEO’s impact on firms operating in transitional economies is limited, and that the influence of their particular characteristics on CE is subject to the managerial discretion that firm-level and environmental conditions confer to them. To foster CE in China, they insist that open recruitment based on competence is critical, while foreign experience can often be advantageous. In addition, they contend that a prospective CEO’s relations with government authorities and entities outside the industry should be considered. So next time you see a CEO bragging a bit too much on TV, take it with a grain of salt!

To access the full content, reach http://www.sciencedirect.com/science/journal/01482963/68/6

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Research Excellence

Self-love’s lost labor: A self-enhancement model of workplace incivility Chen, Y., Ferris,D. L., Kwan, H. K., Yan, M., Zhou, M., & Hong, Y. Academy of Management Journal, 56(4):1199-1219 (2013)

Internalise or externalise your grievance? Inappropriate emails. Rude behavior. An abrasive comment. A coworker who does not thank you for a favor. Workplace incivility is as common as it is damaging to any organisation. In “Self-love’s Lost Labor: A Self-enhancement Model of Workplace Incivility”, Dr. Amy Chen and her research team develop a selfenhancement model of workplace incivility to account for the effects exposure of incivility has on task performance. Self-enhancement, when we seek, consciously or not, to accentuate the positive while ignoring the negative (think internet dating), is a type of motivation particularly useful at work. By successfully performing our work, we enhance our self-esteem, especially when facing difficult challenges. The paper demonstrates that workplace incivility effectively impedes the ability of employees to derive satisfaction from performing their work at high level, as affected employees progressively disengage from work. To mitigate the impact of incivility on performance, the research team suggests that management provide additional opportunities to selfenhance at work, for example by conducting self-affirmation exercises, such as having individuals write to management about values they personally endorse. By increasing individuals’ sense of self-worth, selfaffirmation exercises satiate the desire for self enhancement, helping individuals to better handle threats to their self-worth. The research team also advises employers to consider mindfulness training. By teaching individuals to observe situations openly and rationally without excessively focusing on emotional and self-relevant consequences, mindfulness may help individuals experience incivility without overreacting to what may well be just minor slights. So next time a colleague does something unpleasant, take a deep breath and let it go! To find out more from the Academy of Management Journal, visit http://amj.aom.org/

Business Bridge Issue No.33 Feb 2016

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Hurting or helping? The effect of service agents’ workplace ostracism on customer service perceptions Echo Wen Wan, Kimmy Wa Chan and Rocky Peng Chen Journal of the Academy of Marketing Science, 1-24, (November 2015)

You are tired, late for work and need a coffee. Things are bad enough already so why is this coffee barista so grumpy? What have you done? Perhaps nothing. Maybe it’s just that the barista does not get along with his boss. Effective customer coproduction, the process through which the interaction between service agents and customers results in products and services enhancements or creation, can contribute positively to customer satisfaction, enhance a firm’s productivity, and help build its competitive advantages. While it is widely known that ostracism, or the deliberate choice to exclude someone, in the workplace produces a range of negative consequences for service agents within the organization, little has been done to establish whether workplace exclusion has the same detrimental effects on the relationship between service agents and customers. As demonstrated by Professors Wan, Chan and Chen in a new research paper titled “Hurting or helping? The effect of service agents’ workplace ostracism on customer service perceptions”, the root cause of worker exclusion largely determines its effect on customer services perception. Excluded by supervisors, service agents will try to fulfill their efficacy needs by dominating the customer coproduction relationship, negatively affecting both customers’ perceived control value and perceived service performance. Coworker exclusion has a different effect, as it threatens the relational needs of service agents. In such instance, service agents will likely seek to restore relational needs by behaving cooperatively in customer coproduction, with beneficial effects on customers’ perceived relational value and perceived service performance. The authors conclude that organisations should better manage employees’ perception of exclusion in the workplace, while strategically improving the experience of those customers involved in coproduction with excluded service agents. Firms can train supervisors to recognize and avoid excluding behavior, and to understand the adverse effects this type of exclusion has on customer coproduction. Managers should also set up programmes to increase the sense of control and meaning of service agents. Helping employees to identify with the quality of the firm’s products or its core excellence can help remedy excluded people’s efficacy needs, while giving service agents more autonomy in the performance of their functions may lessen their desire to obtain control over customers. 12

Business Bridge Issue No.33 Feb 2016

Finally, as the positive effect of coworker exclusion on customer value attainment depends on the service agents’ perceptions of an enduring relationship with customers, firms should remind employees that any customer potentially represents such a long-term relationship, in the process nudging them to behave in a friendlier manner. So next time you order from a grumpy barista, think about what might have happened behind the counter. Or just go somewhere else. Maybe it’s just that kind of place. The final publication is available at link.springer.com

Global Engagement IIBD International Case Competition 2015 The 10th IIBD International Case Competition final was successfully held on 20 November 2015 at Hong Kong Baptist University. Students from all over the world competed on cases with the theme “e-Business: Leveraging the Digital Edge”.

worldwide. On receiving the Best Presenter Prize, Mr. Kevin Wibowo of the Indonesian team was taken by surprise, saying “we tried our best even with the extreme time constraint. But we learned a lot and were very delighted to meet all the global partners in HKBU”.

Student contestants from 15 universities representing eight countries submitted their written case analyses in the first round of the competition, with five teams proceeding to the final stage in Hong Kong. The teams were:

Equipped with better knowledge of the Mainland market, the HKBU team proposed effective marketing strategies under the coaching by Mr. Lam Sui-wah, Teaching Consultant, and Dr. Wong Yik-man, Associate Director, and won the Silver Prize. The Bronze Prize went to contestants from Ateneo de Manila University of the Philippines.

• Assumption University of Thailand • Ateneo de Manila University of the Philippines • Petra Christian University of Indonesia • Windesheim University of Applied Sciences of the Netherlands • Hong Kong Baptist University The finalist teams were given six hours to do their research and to analyse a real case on JD.com, an e-commerce company in China. They were then given 20 minutes to present their findings and recommend market development and logistics strategies for the online giant. The analysis prepared by the contestants from Petra Christian University won the championship. They outlined the challenges faced by JD.com, its eroding market share and lowering profitability. The team gave practical suggestions about opening up markets

Professor Edward Snape, Dean of HKBU School of Business, said in the welcoming speech that the competition expedited internationalisation through enhanced student and faculty network. It provided a good opportunity for students to boost team spirit, which has become increasingly important in today’s business world. The panel of judges were veterans and academics in e-commerce, including Mr. Alvin Lam, Group Business Director of Asia Pacific, PacificLink Group, Mr. Bradford Lee, Senior Manager of Publications and E-commerce, Hong Kong Trade Development Council and Dr. Ramakrishna Devarkonda, Assistant Professor of Department of Management, The Chinese University of Hong Kong. To learn more, visit http://iibd.hkbu.edu.hk/

Champion of IIBD International Case Competition 2015, Petra Christian University

Silver Prize goes to HKBU team

Bronze Award goes to the Ateneo de Manila University

The Best Presenter, Mr. Kevin Wibowo

Business Bridge Issue No.33 Feb 2016

Global Engagement

Business Bridge

When the East and West business cultures converge MBA students tour MNCs in Atlanta, U.S. Thirty MBA Guangzhou class students set foot in Atlanta from 7 to 11 December 2015, with the aim not only to learn, but to find the commonalities among Chinese and American business culture. The visit was deemed opportune and insightful as students visited the headquarters of The Coca-Cola Company, United Parcel Service (UPS) and Home Depot – three Fortune 500 companies, as well as CNN, one of the world’s most significant media players. Besides industry leaders, students also had a chance to explore and exchange ideas with companies having distinct American culture, such as Trader Joe’s, a supermarket chain with innovative decoration and products, and Chick-Fil-A, the largest fried chicken fast-food chain in the U.S. Through dialogue with senior managers, our students not only gained valuable insights, but also shared their Chinese approach to business management. The American business culture focuses on independence, freedom, competition and individuality, while the Chinese business culture stresses relationship, etiquette and hierarchy. Equipped with management experience in mainland China, our students engaged in active debates with their American counterparts, providing ground for synergies and deeper understanding in both directions. The Chinese businessmen usually have an eye on operational efficiency and profit margins, while industry leaders in the U.S. are more devoted to innovation and customer experience. For instance, “Chick-Fil-A’s “Hatch” Innovation Centre demonstrates the company’s dedication to providing quality customer service. They explore different ways to shorten the distance between the cashier and customers by filling the very last 36-inch gap at the food ordering counter. The Hatch Innovation Centre also has a simulated branch outlet, where they can test customer experience before putting forward new business ideas. “The visit to the logistics centre of UPS was particularly rewarding,” the students commented. The centre is dedicated to provide logistics solutions to a pharmaceutical company. As medicines are highly temperature and time sensitive, special care is required during its transportation. “The rigorous and meticulous packing and storage processes clearly demonstrated their professionalism. From the slogan “It’s a Patient, Not a Package!” displayed in the logistics centre, you could feel their strong dedication,” many participants claimed. With kind help and arrangement from Georgia State University, the visit was staged in the vibrant Atlanta, which houses the third largest concentration of Fortune 500 companies in the world. An important cluster in the southeastern part of United States, the city has a diverse economic composition with a few dominant industrial sectors, including logistics, information technology, media operators, professional and business services.

To find out more, walk through mba.hkbu.edu.hk or # education based mobility

Business Bridge Issue No.33 Feb 2016

School News School of Business Carnival fills the campus with laughter and color On 24 October 2015, almost a hundred HKBU alumni families returned home to enjoy a beautiful Saturday afternoon, and our next generation filled Li Promenade with smiling faces. As part of the activities under Alumni Homecoming 2015, the School of Business Carnival was a reunion day for young families amongst the university’s alumni, with the aim of conveying our whole-person education and the HKBU spirit to our next generation.

Older boys and girls enjoyed the speedy “Roller slide”, while infant children chose to bond with their imagined animal friends, created together with their parents in the “DIY animal kingdom”. Tied in with the Alumni Homecoming theme of “dreams of flying colours”, kids were not only obsessed by balloon twisting, but also ran through the “Colour pipe” and “Tunnel” full of energy. Yet, the high spirit never bothered our little book worms who enjoyed listening to stories at iCafe.

Warmly greeted by Hong Kong’s first World Champion Clown (Kenneth), over 160 attendants, old and young, dived into our funfilled activities. Some flexed their muscle in “Sumo” and “Pillow world”.

These colourful events were co-organised by the Alumni Affairs Office and the School of Business, with cooperation from social enterprises including Playright and Hans Andersen Club.

Over 1,200 graduates of School of Business conferred degrees at HKBU’s 56th Commencement The HKBU 56 th Commencement Ceremony was held on 12 November 2015 at the Academic Community Hall, where over 1,200 graduates of the School of Business were conferred degrees. Incoming President and Vice-Chancellor, Professor Roland Chin Tai-hong, was inaugurated on 16 November, in the same event. In Professor Chin’s acceptance speech, he encouraged graduates to take every opportunity to experience the world to gain diverse views, solve problems creatively, speak out against injustice, embrace people from all walks of life, and serve the less fortunate and the needy. To celebrate with our graduates, the School of Business organised a photo-taking session at Li Promenade to capture the precious moments.

Amid rounds and rounds of mortarboard throws in the air, our student reporter Chloe interviewed four graduates on-the-spot to share their excitement. BBA graduate Mr. Vincent Qin was pleased and excited to come back to campus. Originally from mainland China and looking back at his years in HKBU, Mr. Qin found it extremely rewarding and meaningful to proactively integrate with the local schoolmates. Miss Charlotte Hang, also a BBA graduate, encouraged fellow schoolmates to explore the world through exchange and internship. A graduate of MSc in Global Marketing Management, Miss Zoe Xu was much pleased with what she learned in the one-year programme that included experiences both in the UK and Hong Kong. Mr. Matthew Cheng, MSc Corporate Governance and Directorship, was eager to apply academic theories learned to his work environment.

Mr. Matthew Cheng

Miss Charlotte Hang

Business Bridge Issue No.33 Feb 2016

School News

chool News

Business Bridge

Steven Lam shares the success story of GoGoVan Mr. Steven Lam, co-founder of local start-up GoGoVan, spoke to over 150 students on 14 October 2015. Steven started his first business young. He was an eBay high-performance seller selling first-generation iPhone when he was studying in the University of California, Berkeley. On his graduation in 2011, he could not find a job in the United States and ended up starting his own business, Boxad, a lunch box advertising company in Hong Kong. During the operation of his first start-up, his biggest problem of the difficulty in locating timely delivery vans inspired him to build an internal platform to connect drivers and users. The overwhelming success of his internal platform led to the birth of the now multi-million start-up, GoGoVan. The event was jointly organised by the School of Business and the Business Entrepreneurship Support & Training (BEST) programme under HKBU Knowledge Transfer Office. To know more about GoGoVan, visit http://gogovan.com.hk/en/

Professor Prendergast receives editor award Professor Gerard Prendergast, Associate Dean of the School of Business, was recognised with the “Outstanding Associate Editor Award” by the International Journal of Advertising, published by Routledge/Taylor and Francis. The award was announced at the annual International Conference of Research in Advertising (ICORIA) held by the European Academy of Advertising. The award was presented by Charles R. Taylor, Ph.D., Editor-in-Chief of the International Journal of Advertising, and Past-President of the American Academy of Advertising. According to Taylor, this award “recognizes Professor Prendergast’s truly outstanding service to the journal in serving as an Associate Editor for the past 6 years. He has held papers to a high standard of excellence and has worked extremely effectively with the Editorial Review Board and ad hoc reviewers and his work has been a major factor in the success of the journal.” The International Journal of Advertising is SSCI listed and currently has a 5-year impact factor of 1.772.

The path to a prosperous future for Hong Kong On 7 October 2015, the School of Business invited Mr. Franklin Lam, the founder of HKGolden50, an independent non-profit public policy think tank, to share his vision on the topic “Hong Kong: Rising City in a Sinking World – Why we must build capacity for HK to realize the ‘outsized’ future”. Mrs. Doreen Chan, Treasurer of HKBU Council and Court, introduced Mr. Lam to an audience of over a hundred. In the talk, Mr. Lam studied the development of Hong Kong throughout the past decades and our future prospects. He forecasted that the next 50 years will be the heyday of Hong Kong. With the growth of employment rate, the decrease of Comprehensive Social Security Assistance (CSSA) recipients and huge government surplus, the period from 2010 to 2014 was Hong Kong’s “golden five years”. At the same time, the global situation is gloomy. Problems such as an ageing population and heavy debts loomed over the more developed countries - the “sinking world” as described by Mr. Lam. Mr. Lam trusted in Hong Kong for its strong fundamentals, which supported the economic growth and social development despite countless challenges. However, he pointed out that there were three stumbling blocks of the promising “Golden 50 years”: land shortage problem, ageing population, and the emerging indigenisation trend among youngsters. All these have hindered the development of the city. He emphasized that Hong Kong should formulate the overall development framework and strengthen infrastructure to attract foreign investment and job opportunities. With Q&A session moderated by Dr. Cheng Yuk-shing of Department of Economics, the seminar ignited the socio-economic sense of the audience and brought fruitful exchange of ideas and insights. 16

Business Bridge Issue No.33 Feb 2016

Business Bridge

School News

MBA and MScBM graduates commence a new journey School of Business celebrated the graduation of over 210 Master of Business Administration (MBA) and Master of Science in Business Management (MScBM) students at a graduation dinner held on 12 November 2015. During the dinner, representatives from the MScBM class and MBA classes from Shenzhen, Zhuhai and Huadong, took this opportunity to express their gratitude to the school and faculty members for their teaching and valuable insights over the years. Laughter and joy bid farewell to their learning journey in HKBU, but another journey has just begun.

FDS faculty and PhD student capture distinguished paper award Dr. Christy Cheung, Associate Professor of the Department of Finance and Decision Sciences, received Distinguished Paper Award at the “International Conference on e-Commerce, e-Administration, e-Society, e-Education, and e-Technology”. The Conference was held in Kyoto, Japan, from 8-10 September 2015. The award winning paper titled “Fighting Online Abuse: Understanding User Acceptance of Online Reporting Functions of Social Networking Sites” investigated the factors sharpening individuals’ acceptance of online reporting functions for reporting abusive incidents under the technology acceptance framework. The research model was tested with 117 Facebook users. The paper is co-authored by Ms. Randy Wong, Dr. Christy Cheung and Dr. Bo Xiao of the University of Hawaii at Manoa.

Marketing faculty wins outstanding paper award Dr. Noel Siu (Associate Professor), Dr. Tracy Zhang Jun-Feng (Associate Professor) and Dr. Ho Yan-Kwan from the Department of Marketing won the “Outstanding Paper Award” at the 6th International Research Symposium in Service Management, held in Malaysia during 11-15 August 2015. The symposium attracted over 300 academics from all over the world contributing more than 90 papers. The major goal of the research symposium was to provide a platform for local and international scholars to present and share their research in service management to promote service excellence. The awarded conference paper titled “Service recovery and identification: The role of corporate social responsibility and service co-creation” enriches the existing literature on service co-creation and corporate social responsibility in the service recovery context.

Business Bridge Issue No.33 Feb 2016

School News

chool News

Business Bridge

Department of Marketing company-based honors project series

Mr. King Lai of Leo Paper Group

Mr. Raymond Chan of LAANAA (Asia)

Mr. Kevin She from SC Logistics and Mr. Chris Chan of e-Banner (first from right)

Miss Sharon Kwok from AquaMeridian

Department of Marketing started a company-based project series for BBA students from their concentration this year, and invited a number of prominent senior management and CEOs to share their experience and business models on 28 October. First in the series was presented by executive director and CEO Mr. King Lai of Leo Paper Group. With over 30 years experience in the printing and packaging business, Leo Paper is the market leader in its field across Asia. Next, Mr. Kevin She, CEO & Co. Founder, SC Logistics Co. Ltd. and Mr. Chris Chan, Director of e-Banner Ltd., shared their startup experience and projects available to our students. Another interesting sharing involved Mr. Raymond Chan, CEO of LAANAA (Asia) Holdings Ltd. LAANAA is an up and coming Hong Kong brand involved in the retailing of lady’s undergarments. The company utilizes a social media marketing and celebrity branding strategy. Miss Sharon Kwok also shared with students her work in AquaMeridian Ltd., a not-for-profit company with a mission to protect the biodiversity of the ocean. Students will be given a chance to write fund raising proposals for this meaningful endeavor as their final year project.

BBA students win financial planner award Four BBA students, Cheng Kiu Fung, Keith (Finance), Wang Yuan, Sky (Accounting), Yiu Cheuk Fung, Steven (Applied Economics) and Yu Xinhao, Jack (Accounting), claimed second runnerup in the SCMP/IFPHK Financial Planner Awards 2015. The SCMP/IFPHK Financial Planner Awards is jointly organised by the Institute of Financial Planners of Hong Kong and the South China Morning Post. It provides a platform for students to gain industry-wide recognition and reinforce their career aspirations. Seven teams from local tertiary institutions participated in the competition this year.

BCom student receives award from CPA Australia Bethany Leung Sin-Yi, final year student of Bachelor of Commerce (Honours) in Accountancy, was recognised as the Outstanding Student of the Year by CPA Australia. The award ceremony was held on 24 August 2015 in Hong Kong. The “Outstanding Student of the Year” programme hosted by CPA Australia aims at broadening students’ opportunities in acquiring the skills needed for a successful career in accounting. There are 12 winners this year. They are awarded a scholarship, a half-year mentorship programme and network opportunities. 18

Business Bridge Issue No.33 Feb 2016

Alumni Corner Financial Analyst Training prepares students for a career in the financial industry For the third year running, the School of Business and the School of Business Alumni Association organised “Financial Analyst Training workshop” on 29 October 2015, giving our students a glimpse of life in the financial industry. Professionals from different streams of the industry shared their experience: Mr. Alex Hon,

Director of Zhongtai International, officiated the evening with an overview of the different paths in the profession. Mr. Edwin Tam, a year 2014 graduate of MSc in Business Management programme, shared with the audience a “little known but very effective” job hunting approach, which he learned during the same seminar series at HKBU. Other speakers included Ms. Ivy Ku from Cushman & Wakefield, Ms. Sally Yan from Towngas, and Miss Sara Zhao from Bloomberg, a previous commodity analyst at Thomson Reuters. Students and alumni actively sought career advice from speakers during the Q&A session. After the sharing session, a subsequent training workshop on the multifunctional Bloomberg L.P system was held. Bloomberg trainer Miss Kelly Wang demonstrated the routines of financial professionals, obtaining real-time data and market information on the Bloomberg system. Thirty students completed both sessions and were awarded a certificate of completion after the event.

Gateway to Big 4 - sharing seminar Organised by School of Business Alumni Association (SBAA) and supported by the School of Business, the yearly signature event attracted over 160 students on a relaxing Sunday afternoon on 13 September 2015. Eleven HKBU School of Business graduates whom currently practice in the big four accounting firms shared their first hand experiences of their interviews to current bachelor and master students aspiring to join the accounting industry.

The 3rd HKBUSBAA Simulated Investment Competition kick-off ceremony On 10 October 2015, around 30 students and alumni gathered to witness the kick-off ceremony of the third HKBU School of Business Alumni Association (SBAA) Simulated Investment Competition. The Competition provides our students with an interesting game on a reputed trade platform - Interactive Brokers. Trading follows in the month starting from the kick-off ceremony, and students are expected to submit a report detailing their investment strategies apart from competing on return on investment. The final results of the contest are based on the quality of the report and the strategy behind the investment rationale. The major goal of this competition is to give students a chance to familiarize themselves with a real investment platform and to test their trading methods. Business Bridge Issue No.33 Feb 2016

School of Business Diamond Jubilee Celebration Year 2016 is going to be a memorable one for different generations of buddies to rejoice with our alma mater. A series of celebratory events for the 60th anniversary and topical forums will be held for alumni and students to join. The year-round activities are more than intellectual exchanges and networking, but a lively mix of business elites. The School will be organising an Alumni Dinner to re-unite alumni of different generations on 30 April 2016. Stay tuned for the news of the celebratory event on the School’s new homepage:

http://bus.hkbu.edu.hk