Newsletter Issue 17 HKUST Business School
InternationalInternational MBAMBA LaunchedLaunched...page...page 88
IT Camps at HKUST...pages 4&5
K.C. Chan Named Dean of the School...page 2
From the Dean Contents
From the Dean 1
News 2-6 ¥Forum Attracts Widespread Interest ¥ K.C. Chan Takes Helm as New Dean ¥ Rankings Updates ¥ Accounting Faculty Tops List for Second Time ¥Foreign Applicants Boost MBA Figures ¥Ferber Award ¥ Future Leaders Go High-tech ¥ Enhancement Schemes Bear Fruit ¥ School Welcomes New Corporate Advisors ¥Buy the Book ¥Walkathon Raises Funds for New Student Hostel
It is my great honor to be appointed the Business Dean of the HKUST. Since China Feature 7-10 I’ve been with the School from its founding years, I have had the privilege of witnessing and contributing to its truly remarkable development. Research 11 In just a decade, the School has achieved worldwide recognition in many areas. ¥ Adjusting Holland’s Vocational Model for Hong As this Newsletter has reported in its previous issues, the School has repeatedly Kong’s Occupational Environment been named as having the highest research productivity in the Asia-Pacific region and many of our programs, degree and non-degree alike, are also well known for their high quality. Viewpoints 12
These achievements could not have been realized without the on-going support ¥ Blueprint for the Future from the university, faculty, students, staff, alumni, recruiters, our advisors and other friends from the academic and corporate communities. Students 13 As the new Dean of the School, I intend to make it a top priority to expand, in ¥Youth Ambassador both breadth and depth, the School’s connections with all its stakeholders. ¥Workshops Foster Innovation Thanks to my predecessor Prof. Yuk-Shee Chan, now the university’s vice- ¥ Students Grab Top Prize president for academic affairs, who has led capably and with great vision as the founding dean, the School is well poised to achieve even higher stature in the Briefly 14-15 world’s academic stage and play a more significant role in the business ¥ Consumer Research Draws Worldwide Attention community. ¥ Accounting Symposium I look forward to your support and involvement in the process of fulfilling the ¥ Harvard Business Review School’s potential in the future. ¥Teaching Excellence Cited Stay connected. ¥ Meaningful Summer ¥ Professor Elected to Prestigious Body ¥ More Alumni Join Mentoring Program
K.C. Chan People 16 Dean
HKUST Business School Dean: K.C. Chan Associate Deans: Gary Biddle, Steve DeKrey, Kar Yan Tam Newsletter Editors: Elaine Chu, May Hung Sub-editor: Virginia Unkefer Writer: Michael Taylor Contact us: [email protected] Fax: (852) 2358 1467 Website: www.bm.ust.hk (c) 2002 by the School of Business and Management, the Hong Kong University of Science and Technology. All rights reserved.
Photo on this page — courtesy of Robert Lendrum / HBL Network
HKUST Business School 1 News Forum Attracts Widespread Interest
he third and final session of the HKUST Forum on the Future provided insights into Hong Kong’s economic history and the T Development of Hong Kong attracted widespread interest with more government’s past and present position in relation to the economy, and than 220 people attending, including senior executives, policy decision- sparked a series of proposals, ranging from the need for a new mindset makers, journalists, and a number of HKUST students, alumni, faculty, for senior civil servants to the creation of a land board and a new policy and staff. on higher education.
The session, entitled “The Government’s Role in the Economy”, was “With unemployment reaching a two-decade high of 7.4 percent, we’ve organized by the School on 12 July at the Island Shangri-La Hotel. It got to ask ourselves how HKUST can be more productive in society,”
From left to right, Edward Chen, Wilfred Wong, Michael Enright, Francis Lui and Christine Loh. John Chan speaks at the luncheon.
K.C. CHAN TAKES HELM Rankings Updates AS NEW DEAN he School and its EMBA program partner Kellogg TSchool of Management have scored well in recent he university has appointed K.C. Chan as of finance in 1994 and was rankings. TDean of the School effective 1 July 2002. associate dean from 1996 to 2000. He has been acting dean since In the summer, HKUST was ranked fourth in Asia Inc’s Dean Chan brings to the School years of 2001. rankings of Asian business schools. In the fall, its EMBA experience in academia and public services. He partner Kellogg School was ranked number one by both was an associate professor at Ohio State Chan is a member of the Hong the BusinessWeek’s best b-school survey and the University when he left for HKUST in 1993. Chan Kong Council for Academic Economist Intelligence Unit’s global MBA rankings. The became professor and head of the department Accreditation and a part-time Financial Times ranked Kellogg number eight in its member of the Central Policy Unit EMBA rankings. of the Hong Kong SAR Government. He is a former director of the Hong Kong Futures Exchange and is over the last decade. The School is in good currently president of the Asia Pacific Finance hands and I wish him well.” Association. “It’s an honor to be asked to lead such a fine Chan succeeds founding dean Yuk-Shee Chan school. Thanks to the efforts of our colleagues, who now serves as the university’s vice- students and alumni, the School has emerged president for academic affairs. “I am very happy as a leading management school in the Asia that K.C. has been appointed as dean of the Pacific region. I’m gratified to be a part of this business school,” Prof. Yuk-Shee Chan says. collaborative effort over the last decade, and I “He is more than a renowned finance scholar. look forward to a period of even greater Through the many administrative positions that achievement as we work together to take the he has held at the School, he has demonstrated School to new heights. Last but not least, I’d outstanding leadership abilities. In many ways, like to thank my predecessor, Yuk-Shee, as he K.C. has been instrumental in the rapid and left us an exciting, dynamic school with great successful development of the business school momentum,” says Dean Chan.
2 Newsletter Issue 17
Prof. Otto Lin, vice-president for research and development, said. Christine Loh Kung-wai, chief executive of Civic Exchange and Wilfred “Certainly it is a very important time in Hong Kong. The chief executive has Wong Ying-wai, vice-chairman, Shui On Holdings. Leonard Cheng, just entered his second term in office. The economy is bad. We are hoping professor of economics, HKUST, also took part in the panel discussions. at this time to identify the main issues and come up with several suggestions John Chan Cho-chak, chairman of the university council and KMB which the new government might be interested in knowing.” managing director, made a luncheon presentation. Francis Lui, professor of economics, was moderator. The session was opened with a welcome address by Dean K.C. Chan followed by an opening remark by HKUST President, Paul Chu. Speakers Session One, held on 29 May, was entitled “Positioning Hong Kong: included Edward Chen Kwan-yiu, president, Lingnan University; Michael Pearl River Delta and Beyond”. Session Two, held on 17 June, was Enright, professor of business administration, University of Hong Kong; entitled “Innovation and Entrepreneurship in Hong Kong”.
From left to right, Francis Lui, Paul Bolton, vice-president for administration and business, Wilfred Wong, Leonard Cheng, Vincent Lo, university court member, Michael Enright, President Chu, John Chan, Christine Loh, Edward Chen, Dean Chan, and Yuk-Shee Chan, vice- president for academic affairs. Accounting Faculty Tops List for Second Time
he accounting faculty has done it again. HKUST is one of only four universities worldwide The journals surveyed are the Journal of TFor the second straight year, HKUST’s to have consistently made the top ten list over Accounting Research (the University of faculty of accounting was ranked number one the last four years. Columbia, Pennsylvania, and Chicago); the Journal of Accounting and in terms of the number of research articles Stanford are the other three. Economics (the University of Rochester); the published in the world’s top five academic Accounting Review (the American Accounting “This latest achievement of our accounting journals. The achievement is just the latest in a Association); Contemporary Accounting faculty adds to a list of growing accolades of string of honors for the faculty of accounting, Research (the Canadian Academic Accounting the business school and the university as a the School, and the university as a whole. Association); and the Review of Accounting whole,” President Paul Ching-Wu Chu said. Studies (the University of California at Berkeley). “Even one paper published in a top academic “Hong Kong is the most important financial The accounting faculty at HKUST has also journal is a rewarding achievement for any center in this hemisphere, and it is befitting that published in the American Economic Review, faculty,” Dean K.C. Chan said. “Getting the top its research university excels in accounting the Journal of Economic Theory, the Journal of rank is a tribute to the collective effort of our research.” Finance, the Journal of Financial Economics, accounting department. Not only does the high Management Science, and other leading quality of the HKUST Business School receive journals. wide recognition, its individual disciplines also achieve high stature.” While research is important for its own sake, it can also enhance the quality of the teaching that Prof. Gary Biddle, associate dean and head of takes place at a university. For one thing, it can the department, was equally upbeat. take several years for research to find its way “Accounting research is sophisticated, highly into textbooks. Researchers are therefore able relevant as the Enron case illustrates, and spans to share their insights with students long before a range of areas. The new knowledge generated others will have access to it. by our faculty creates value for our students, Hong Kong, the Chinese Mainland, and for “Our research-based teaching gives our accounting professionals worldwide. It also students cutting-edge insights that won’t appear means our students are equipped with the best in textbooks for another ten years,” Biddle said. skills and knowledge for the rapidly developing “It gives our graduates an advantage that global economy.” employers appreciate.”
HKUST Business School 3 News Foreign Applicants Boost MBA Figures his year the School has enrolled 57 full-time MBA “This shows that HKUST is clearly gaining a reputation Ferber Tstudents – its largest class ever. Thirty-eight – not just in the region, but throughout the world,” students were admitted last year and 29 in 2000. Steve DeKrey, director of MBA programs, says. “The large presence of non-local students adds value to Award One of the reasons for the growth this year is a the experience of our local students. It also gives dramatic increase in the number of overseas overseas students a chance to benefit from one of applicants. HKUST has always boasted a large non- the world’s top MBA programs. It is clearly a win-win local presence in its full-time MBA program, and this situation.” year’s figure has grown to 61 percent from 42 percent last year. In addition to the 22 students from Hong A total of 156 students were admitted into the Kong, 18 were from Mainland China, four from school’s part-time MBA programs, including 135 in Canada, three from India, two from Australia, and Hong Kong and 21 in the newly launched program one each from Germany, Korea, Malaysia, the in Shenzhen. The number of graduates from overseas Philippines, Singapore, Switzerland, Taiwan, and the institutions also rose for this group, up from 29 United Kingdom. percent last year to 36 percent for this year’s class.
MBA Admission 2002 Rashmi Adaval, assistant Full-time Part-time Shenzhen professor of marketing, won the 2002 Robert Ferber award for a Total Enrollment 57 135 21 paper entitled “Sometimes It Just Male 46% 61% 67% Feels Right: The Differential Weighting of Affect-Consistent Female 54% 39% 33% and Affect-Inconsistent Product Average Age at Entry 27 29 31 Information.” The award is given Age Range 22-34 24-45 26-36 to the best dissertation-based article in the Journal of Consumer % of Non-local 61% – – Research – one of the world’s Average Years of Full-time Work 4 7 8 three top marketing publications – during the preceding year. Work Experience Range 1-11 3-23 3-13 Donnel Briley, also an assistant professor of marketing at HKUST, won the award last year.
Future Leaders Go High-tech wo hundred and forty secondary school students and their parents got hands-on experience in information Ttechnology (IT) at summer camps held at HKUST. Three camps were held in all: an IT Ambassador Exchange Camp which included participants from Hong Kong, Shanghai and Macau, a Secondary Student IT Camp, and two Parent-Child IT Camps. Taking place at the university’s stunning Clearwater Bay campus, the camps gave participants a chance to interact with one another while using IT tools to study. During the programs, participants were able to develop a more global outlook on the IT and telecommunications industries through a host of activities ranging from multimedia workshops to company visits. All of the activities were designed to enhance the ability of young people to use IT in their daily lives. Parents taking part also learned how they could play a more productive role in their children’s education. Team-building, leadership, and adventure-based activities rounded out the programs.
The camps were co-organized by the the Children’s Computer Center of China Welfare Institute, Shanghai; the Education Department; the Hong Kong Computer Society; Hong Kong Education City; the Information Technology Service Department; the Macau Computer Society Association; Pacific Century CyberWorks, and the Hong Kong Richard Li, chairman and chief executive, PCCW, University of Science and Technology. speaks to the Parent-Child IT Camps’ participants.
4 Newsletter Issue 17 Enhancement Schemes Bear Fruit Study shows increased earnings for students participating in programs
t goes without saying that might hurt their grade-point Holding office in student societies, I academic performance is averages – and this, in turn, their for example, can be time- important. But what about career prospects. A study by the consuming. Graduates who participation in extracurricular School should put such fears to engaged in such activities while at activities? rest. university, however, earned slightly more than their counterparts who Academics and counselors have “All along we thought these didn’t. In terms of those who took been encouraging students to get enrichment programs would have part in exchange programs, the the most out of their time at a positive impact on our students results were even better, with university by taking part in by developing their starting salaries increasing by more enhancement activities for years. communications, interpersonal, than 10.4 percent. Those taking But many students have been and leadership skills. Now we have part in mentoring schemes and reluctant to do so, fearing that time proof,” Prof. Kar Yan Tam, case competitions earned 16.7 spent away from formal studies associate dean and director of percent extra a month. Those doing undergraduate programs, says. internships, meanwhile, scored the A few years back, Tam decided to biggest bonus of all – more than investigate whether the School’s 29 percent in extra earnings a enrichment programs were indeed month. paying off. He launched an And it gets even better. Students exhaustive study of more than taking part in more than one Kar Yan Tam 2,000 graduates of the School over enhancement program saw their a three-year period. Starting earning power increase even more. can increase their self-confidence salaries and their relation to Those taking part in three or more and their ability to communicate, academic performance and schemes, for example, could resulting in better performance at participation in enhancement expect a bonus of nearly 50 job interviews.” activities were the criteria. The Students with an international percent a month over the average results confirmed what academics The survey covered the 1999, exchange experience usually get base starting salary for fresh and counselors have been saying 2000, and 2001 graduating higher starting salaries than graduates. those without. Gillian Chan (left) all along: at the beginning of their classes of the School. Other and Regine Yeung (center) who careers, students suffer no “We believe that these ‘soft skills’ factors such as A-Level results, attended an exchange semester negative impact from taking part in are qualities that employers are majors, and the economic situation at the University of Wisconsin- such schemes, in most cases they looking for – in addition to at the time of graduation were all Madison in Fall 2001, have a head-start in getting jobs that can significantly increase their academic performance,” Tam says. taken into account to ensure the pay better. earning power. “Through these programs, students accuracy of the results.
Representatives of the organizers (middle row, from left to right): A boy requests Richard Li’s autograph on his T-shirt. Rovena Kwan and Kar Yan Tam of HKUST, Richard Li, She Man and Michael Lui of Education Department and Patrick Chan of the Information and Technology Services Department, pose for a group photo with participants at the closing.
HKUST Business School 5 News School Welcomes New Corporate Advisors
Alexandria J. Albers is managing director and Frank Wong Kwong Shing is a member of Cassian Cheung is president of Wal-Mart chief administrative officer for the Asia Pacific DBS Hong Kong’s corporate office, the bank’s China Co. Ltd. He is responsible for the region at Morgan Stanley. most senior management team responsible for development and operations of Wal-Mart stores She is also a member of the the development and oversight of corporate in the People’s Republic of China. Prior to joining company’s executive strategy and policy. Wong has oversight Wal-Mart, Cheung worked in key positions for committee. Albers joined responsibilities for the bank’s wholesale banking two other multinationals: the Quaker Oats the company in New York group, comprising corporate banking, treasury Company and Nestlé. Cheung joined Quaker in 1980 in the institutional and markets, and securities. Wong is also Oats in 1994; his last equity division. She chairman of Dao Heng Bank and oversees all position there was vice- transferred to institutional equity sales in London DBS operations in Hong Kong. Before joining president and president, in 1983 where she was responsible for DBS, Wong was designated chief executive for Asia. Prior to that he spent marketing to British and Swiss fund managers. National Westminster Bank’s Hong Kong branch 16 years at Nestlé, where In 1993, Albers became syndicate manager in from 1997 to 1999, and its regional managing he worked in China, the company’s London-based equity capital director for the Asia Pacific between 1994 and Switzerland, Singapore, markets group until assuming the role of 1999. Wong held various senior positions in JP Hong Kong, and the United operations officer for the European institutional Morgan – Hong Kong and London, between States. His last position was chief operating equity division. In 1996, Albers moved to Hong 1977 and 1992. He also held various senior officer and general manager for China. Cheung Kong to be chief operating officer for the Far positions in Citbank, North Asia, between 1967- received a B.S. degree in business East equity division, responsible for 77 and 1992-95. When Wong was based in administration and economics from St. Joseph administrative management of the division and Hong Kong, he served in various positions in College in Rensselaer, Indiana, and a Master of new initiatives in the region. Albers received a the Hong Kong government. He was appointed Management from Northwestern University’s B.A. degree in economics from George Justice of the Peace from 1997 to 1999 and Kellogg School of Management. Washington University in 1979. She was elected was honored an OBE on the Queen’s birthday vice president in 1987, executive director in list in 1997. 1993 and managing director in 1996. Buy the Book Walkathon Raises Funds Valuing Technology, The New Science of Wealth in the for New Student Hostel Knowledge Economy by Chris Westland, professor of information and systems management, was chosen as he School supported the university’s first walkathon-JUST Walk-to raise funds Book of the Month by George Gilder in the Gilder Tfor the building of the sixth student hostel on campus. Held on a sunny Sunday Technology Report. in October, the event saw a total of more than 1,000 walkers participating. Many faculty and staff members from the School took part in the event with their families. The book, which was published by John Wiley & Sons, There was also strong support from students and alumni. describes how accounting must evolve to effectively guide investors and managers in the technology-intensive, Addressing the participants at the setting-off ceremony, President Paul Chu said knowledge-centered industries of the 21st Century. the walkathon was a manifestation of the HKUST spirit. “Our university could never be as successful as it is today without the participation of each and every member “In this ambitious and original text, Chris Westland follows of the university community. Our success testifies to the power of our solidarity and in the path of Aswath Damodaran, casting light on ‘The shared vision.” Dark Side of Valuation’ of technology stocks. But where Damodaran stops short of addressing the fundamental issues of technology itself, the polymathic Westland – a scientist and consultant – cruises in with observations on Moore’s and Metcalfe’s laws, nanotechnology and optics, biotech and materials science,” Gilder said in the report.
“This is an important indication that HKUST is on the radar screens in the United States (and the book is selling very well there, as well),” Westland said. His next book, Financial Dynamics, is due out in January.
The Gilder Technology Report can be accessed at http:// www.gildertech.com/.
6 China Feature Newsletter Issue 17 China Market Offers Opportunities and Challenges All the B-Schools in the World Couldn’t Meet the Need
KUST School is bullish on China and and the information available here is the best Hthe reasons are clear. To start with, the there is outside the mainland. Secondly, country is on a roll. Bucking global trends, HKUST is a research university and I think it China’s GDP grew by 7.3 percent last year is the best such university in Hong Kong. Next, compared to a worldwide average of 2.8 many faculty members have a personal percent. But if business is booming, the interest in the Chinese economy. And finally, country’s economy offers a heady the Chinese economy is very important to combination of both opportunities and Hong Kong, and certainly faculty members challenges – for business want to make a contribution to schools as well as everyone “HKUST is Hong Kong. For that they need Wilfried Vanhonacker else. to look into the potential of the a research faculty is working on research that is directly mainland.” The opportunities for b-schools university and related to the mainland. range from people within the Lin is an expert in I think it is the best “We have a number of people that have mainland wanting training in macroeconomic development such university experience teaching executives in China western-style management in China and works closely with about China,” he says. “We obviously train practices to people overseas in Hong Kong.” the Chinese government on our own students on China so it’s built into wanting a better understanding economic strategies for the our own MBA and EMBA programs. But we of China’s massive, yet hardly homogeneous, country. He is also professor and founding also do specialized executive education market. The challenges, meanwhile, run from director of the China Center for Economic focused on helping foreign managers how to meet a demand that is at once Research at Peking University and an adjunct understand what China is like. The other thing insatiable, overwhelmingly large, and highly professor of the Australian National University. we do is bring our management diversified – while maintaining the standards Wilfried Vanhonacker, senior expertise to Chinese of an institution whose sights are set on being “Knowledge creation companies.” the number one business school in Asia. Wei Lun Fellow, professor of marketing, can best be is what makes Some insiders maintain that even if every b- The School has launched a described as an old China HKUST unique, school in the world set up shop in the number of China-related hand. Having spent 18 years and that is what mainland, the need for training in business initiatives in recent years. working in the mainland, he and management could still not be met. So it we are leveraging Included are an MBA in says that what the country is not surprising that an increasing number of Shenzhen, an International needs most is management in China.” universities in the Australia, Canada, Europe EMBA taught in Putonghua, expertise. “It’s important for and United States have their eyes on the short courses for executives and overseas China to have more expertise in this area. It’s massive market for business education in the MBA students, a center for corporate also important for the foreign companies doing mainland. Nobody, however, is better placed governance, research and publishing related business there,” he says. to exploit the opportunities there – or to meet to China, and an international association for the challenges – than the School of Business “The great thing about HKUST is that it is the Chinese management research. This special and Management at HKUST, faculty members only really academic environment in greater report highlights some of these initiatives in maintain. The school’s physical proximity to China, which means it has assembled a really more detail. the mainland, the quality and mindset of its good team that is very well-equipped faculty, and its commitment to both research to look and see and understand and teaching excellence are putting it into a what is going on in China from a class of its own. rational and scientific perspective,” Vanhonacker “Our first competitive says. “Knowledge creation is advantage for doing what makes HKUST unique, research on China is and that is what we are location,” Justin Lin, leveraging in China.” professor of economics, says. Vanhonacker estimates that “Hong Kong is a between 20 and 25 percent Justin Lin window on China of the business school’s
HKUST Business School 7 China Feature
New Dean Upbeat About China Vision Region’s Prospects “It’s hard to talk about vision without talking about China”
verything is coming up roses, the new dean beneficial to the companies both in China and Esays. “I have a lot of optimism about the throughout the region.” market here,” Dean K.C. Chan says. When asked about his vision for the future, Chan “Demand for training from Chinese companies was clearly upbeat about the region’s potential. is going to grow,” Chan says. “There is also a lot “It is hard to talk about vision without talking about of room for doing great research. China’s Asia and – specifically – China. I think we are at management problems are both interesting and a time when a big expansion of demand for intellectually challenging. These are the types of management education is taking place. We are things our faculty like to do. They are also the very strong in terms of what we can do to help,” types of things they are good at doing. We have he says. a very strong research culture at this school. We can produce world-class research that will be
International EMBA EMBA Targeted at China’s Senior Echelons
hirty-six senior officials and want the chance to network with The program kicked off in July day residential program after the Ttop-level managers of classmates from the mainland.” and participants gathered at the opening ceremony. everything from government HKUST campus to attend a five- offices to state-owned Teaching materials are provided enterprises, joint ventures and in both English and Chinese. multinationals have enrolled in an Lectures are given in English or international EMBA targeted at the Putonghua, depending on the China market. Launched this choice of the professor. summer, it is the School’s first Simultaneous interpretations are venture into a Chinese-medium provided for lectures given in MBA program. English.
“Most of them are senior “The mainland participants executives in their late 30s, 40s appreciate the exposure to an and 50s,” Kitty Chan, director of English-speaking environment, executive programs and external but they also like being able to development, says. “About one- study in their own language,” fifth are from Hong Kong. They Chan says. Participants pose for a photo after an action-filled day of training.
Guests officiating at the opening ceremony. From left to right: HKUST President Paul Chu, Wang Feng Chao, Ronnie Chan, Dean K. C. Chan.
8 Newsletter Issue 17
Executive Programs Short Courses Meet Specific Needs
leven state-owned enterprises management education that is offered They can be divided into two basic Efrom various parts of the by HKUST.” types: those open to participants mainland sent general managers Another flourishing market is for recruited from different companies and marketing directors to Hong MBA and EMBA programs from and those customized to the Kong over the past 12 months to around the world wanting to offer specific needs of specific take part in intensive residential participants an intensive residential companies. Included are programs at HKUST. Each group, program focusing on China. They multinational companies, local which numbered 40 participants on usually spend three or four days at companies, as well as mainland average, spent between 10 and 14 HKUST in customized programs companies. days in the SAR. catered to the specific needs of the Kitty Chan “They represent our fastest growing individual program. A short side trip market,” Kitty Chan, director of to the mainland often follows. executive programs and external So why do they prefer studying at development, says. “The rapid an SAR-based university rather than growth started about one year ago. going right to the heart of things? Before that, we would usually have “We have the best faculty who can only one mainland company a year talk about China in Asia,” Chan coming to us for training.” says. “They travel in China China’s accession to the WTO seems frequently. They can be more critical to be behind the sudden surge in of what’s going on there and the demand. “They usually want to know discussions are more open than about competition, international best they would be at mainland practices, strategies and people institutions.” management,” Chan says. “They The School launched non-degree Executives from China Mobile visit Pacific Century CyberWorks appreciate the state-of-the-art executive programs four years ago. while attending a development program organized by HKUST. New Book Launched Area of Excellence second book on Chinese management professor of management, and director of “We have initiated a new organization called A practices has just been published and Hang Lung Center for Organizational the International Association for Chinese a third is on the way. Research, says. Interdisciplinary in scope, the Management Research. We will be holding book features the work of sociologists, our first conference in June 2003 in Beijing,” Management of Enterprises in the People’s economists, psychologists, and management Tsui says. Republic of China, compiled by Anne Tsui and specialists. Chung-Ming Lau, was launched in August. The association will also publish a journal “It contains some very good research, mostly “The next wave of projects will focus on the entitled Management and Organization on state-owned enterprises,” Anne Tsui, private sector,” Tsui says. She estimates that Review. It will carry research on business and the third book in the series will be launched management issues, but mostly on in two years. The first book, Management and management issues. More than 70 scholars Organizations in the Chinese Context, was around the world will be involved, 20 as published in 2000 and focused on advisors and 50 as reviewers. multinationals and state-owned enterprises. Another initiative has been helping professors “Our aim is to produce knowledge that can in the mainland gain competency in the latest be used for executive education and in MBA research methodology. “To do that we’ve held programs,” Tsui says. “Some of our research workshops every year for four years,” Tsui is also published in academic journals.” says. So far, more than 140 Chinese scholars have been trained under the scheme. “They The School received funding from the will be excellent collaborators for people university for an area of excellence in China outside China,” Tsui promises. “In the past, Business Management. In addition to they haven’t had training on how to do encouraging faculty to conduct research in scientifically-based research. All of the China on Chinese companies, other projects research on China was based on western are underway such as promoting international research. We need to do more research in collaboration on research about companies China itself.” Anne Tsui in the mainland.
HKUST Business School 9 China Feature
Center for Corporate Governance Center Set Up to Promote Best Practices
tock markets in China are only ten years markets. The center will focus on academic Sold, but already more than 1,000 research and promote debate on relevant companies are listed. Most of them are state- issues – not only in China, but also in the owned, causing unique problems that require region as a whole. It has branches in Hong unique solutions. Kong and Shanghai and associated bodies are being set up in Japan, Korea and Taiwan. “The majority of shareholders in most cases Together with the Hong Kong and Shanghai is the state so the issues are very different branches, they will comprise the Asian from those in the United States,” T.J. Wong, Corporate Governance Network. a professor of accounting and director of the Center for Corporate Governance, said. “We “One of the things I’ve studied is the role of can’t just blindly follow what they are doing in politicians on the board,” Wong said. “If the T.J. Wong the US because the institutional setting here state owns more or less of a company, does is different.” it affect its efficiency or performance? What Peking and Tsinghua universities and the is the relationship between the government The Center for Corporate Governance was Shanghai University of Finance and and listed companies? These are all very set up this summer in response to a perceived Economics. It is hoped that the center will be interesting issues.” need to improve the corporate governance able to draw on the combined expertise of of China’s listed state-owned enterprises so HKUST’s accounting and finance faculty members and PhD candidates at these that they can raise capital more easily and departments have already established close institutions. compete more successfully in international ties with such top mainland institutions as In addition to research, other activities will include the development of links with governance centers in other parts of Asia, the United States, and Europe; the development of executive and MBA courses on governance issues; and the organization of workshops involving top-level managers, current and prospective board members, active investors and their advisors, financial market regulators, and the academic community.
Other core members include Prof. Joseph Fan and Prof. John Wei, both of the finance department, and Prof. Kevin Chen, of accounting.
Shenzhen MBA Mainland MBA Launched
KUST and Peking University jointly launched an curriculum that closely resembles the part-time program HMBA in August in the Shenzhen Special Economic offered in Hong Kong. Classes, which are taught by Zone, which borders Hong Kong. HKUST staff, meet on Saturdays. HKUST will award degrees upon completion of the program. The two-year program is taught in English and follows a “Shenzhen is one of our initiatives to build closer links with China,” Steve DeKrey, associate dean and director of MBA programs says. “It’s essentially a mirror image of what we do in Hong Kong. It will be taught in English. We’ve screened students carefully to ensure the same standards.” Steve DeKrey Most of the students accepted into the program reside in the Shenzhen area. Some are commuting from Guangzhou. A few Hong Kong residents have also signed up for the course. Applicants were chosen based on their first degree, full-time work history, GMAT scores Steve DeKrey and the Shenzhen students. and English proficiency.
10 Research Newsletter Issue 17
Adjusting Holland’s Vocational Model for Hong Kong’s Occupational Environment
Original research, “The Cultural Validity of Holland’s Model and its Implications on Human Resource Management: The Case of Hong Kong”, by Kenneth Law, Chi-Sum Wong, and Frederick Leong
or decades, Holland’s vocational model has been one of the most Hong Kong Situation Fwidely used models to describe an individual’s vocational They found that in Hong Kong, the orientation. The model prescribes vocational orientations towards the social and enterprising (S-E) following six types of occupations under the assumption that people occupations are perceived to be the search for environments that will let them utilize their skills and abilities, most closely related. The relation is express their attitudes and values, and take on agreeable problems stronger than the R-I, A-S and E-C and roles. links, which are the dominant pairs in the US. This characteristic is Type Examples believed to be attributable to the fact Realistic (R) – plumbers and machine operators that Hong Kong is a business Investigative (I) – mathematicians and computer programmers community that is strongly influenced Artistic (A) – artists and designers by Chinese traditions that treasure Social (S) – teachers and social workers interpersonal relationships. Enterprising (E) – managers and salespeople Therefore, people who are Kenneth Law Conventional (C) – clerks and accountants enterprising or good at business are believed to have good social skills, and socially oriented people would An important specification of Holland’s model is the concept of a circular be good at entrepreneurial work. This observation was confirmed by order that specifies the relationships within and between the above three studies conducted by the trio on some 550 university students job types and work environments. The six vocational orientations are and 86 business owners and middle to upper level managers in Hong arranged in a fixed circular order (R-I-A-S-E-C). Kong.
R I The researchers also found that the education system in Hong Kong that separates high school students into science or arts streams has an impact on how people perceive what skill sets students from these two academic streams possess.
Because of the design of examination syllabuses and teaching C A methods, it has been a long tradition in Hong Kong that the science stream attracts students who are academically brighter in the sense that they are smart enough to deal with mathematical and scientific symbols. The arts stream, on the other hand, is perceived to be for E S students who are not as strong academically and this stream attracts students who are more varied in their abilities and interests.
This model is also called the RIASEC model and it has gained In their studies of university students and business practitioners substantial empirical support in the US. mentioned above, Law and his colleagues found that the respondents in general perceive science graduates as more suitable for Realistic Some researchers have suggested that this circular-order model may and Investigative occupations, and arts graduates more suitable for need to be adjusted when applied to different cultures because the Artistic, Social, Enterprising and Conventional occupations. This way vocational orientations are conceptualized may be affected by indicates an effect of the education system on how vocational cultural and educational differences. Kenneth Law, professor of orientations are conceptualized. management of organizations, Chi-Sum Wong, Chinese University of Hong Kong, and Frederick Leong, Ohio State University, conducted a Law, Wong and Leong’s research provides evidence that educational study on the validity of Holland’s model in Hong Kong and found that systems and cultural characteristics have an impact on the vocational instead of an equilateral hexagon structure, the six factors are related orientations of individuals. It also points to the fact that vocational to each other in different ways. orientations should be conceptualized differently in different cultures.
HKUST Business School 11 Viewpoints
Blueprint for the Future
ew York and London are often held up Province, technology and industry, finance Nas role models for Hong Kong to and business, and population policies. emulate, but Switzerland might serve as a Regarding Hong Kong’s re-integration into the more appropriate option, Prof. Leonard Pearl River Delta, Cheng touched on a variety Cheng, head of department of economics, of issues. He was skeptical, for example, of said. plans to open up the frontier zone bordering “Definitely, finance is one area that Hong on the Shenzhen Special Economic Zone. Kong needs to continue to develop as it is “The idea of creating a border processing one of the SAR’s traditional strengths,” Cheng zone along the border might not be feasible,” said. “But if Hong Kong is compared to he said. London and New York, it cannot be expected Under the plan, one worker from China would to attract the same level of business. In Asia, be allowed in for each worker hired in Hong Tokyo is also an important financial center, Kong. “Since Hong Kong workers earn four and there will be foreign exchange controls times as much as their counterparts on the in the mainland for many years to come. As mainland, I questioned if this would really for the domestic market, most financial make Hong Kong internationally competitive,” transactions will continue to be carried out Cheng said. “Also, I questioned if this would in Shanghai.” simply result in more unemployment in Hong Switzerland, however, with its relatively small Kong. What’s to stop companies from simply population has developed into a vibrant switching their operations from other districts, financial hub, the production base of high- such as Kwun Tong and Tsuen Wan, to the precision instruments such as watches, and border-processing zone? The results could an important center for tourism. be disastrous.” As an alternative, Cheng suggested subsidizing Hong Kong workers “It shows that even a small economy like this to work in Shenzhen rather than importing can develop in more than one area,” Cheng Leonard Cheng mainlanders to work in the SAR. said. “Hong Kong should follow suit, making investments in technology that can help our Cheng said a pragmatic approach needed economy. It would therefore be easier to traditional sectors, such as logistics and the to be taken when dealing with local reach an agreement with local governments service sector, develop further. governments in the Delta. on this issue, rather than simply being forced When you look at the Swiss Rather than relying on Beijing to do so by Beijing,” Cheng said. model, you see that they are “Hong Kong to force their hand, he Cheng also called for less reliance on not strong in one area but in suggested using a carrot has nothing Shenzhen. several, and all of them require rather than a stick. He skills and technology.” to fear from worried, for example, that “Many of the cities in the region are trying to local governments might be take business away from Hong Kong, and Cheng was speaking at a its reintegration afraid of letting Hong Kong that is only natural,” he said. “In that regard, I conference organized by Ming with the Pearl companies set up shop in think Hong Kong should look into the Pao, a Hong Kong-based their communities because feasibility of linking up with the western part Chinese language daily River Delta” they feared the competition of the Delta, such as building a bridge to link newspaper, to discuss might damage local the territory with Zhuhai and Macau. That will economic issues related to Hong Kong. business interests. He suggested that they make Hong Kong less dependent on Diverse sectors of the community, including might be more receptive to allowing Hong Shenzhen. Given the competition that exists politicians, government officials, Kong companies in if they limited their between the different logistics centers, it is businessmen and academics, were invited services – at first, at least – to Hong Kong not a good idea to have only one set of to take part. Held on 24 August, the investors. connections.” conference was aired live on Cable TV. Ming Pao, meanwhile, published a series of articles “If the factories run by Hong Kong investors “Hong Kong has nothing to fear from its re- based on the discussion in the days that benefited from the services offered by Hong integration with the Pearl River Delta. The key followed. Topics included transportation and Kong-based banks and insurance to the SAR’s continued success is to not only logistics, the integration of Hong Kong into companies, they would become stronger, maintaining its existing strengths, but to build the Pearl River Delta and Guangdong which would also be beneficial to the local upon them,” according to Prof. Cheng.
12 Students Newsletter Issue 17
Youth Ambassador Workshops Foster n accounting major at HKUST has that their voices will be heard.” been selected to serve on an A Wong has been an active participant Innovation important government commission. in the various activities organized by the wo undergraduate students were chosen to take part in Maximilian Wong, a year three School. Last year, for example, he took the “Journey to Innovation” in July, a summer program accounting major, has been selected part in a one-semester exchange T organized by Ming Pao, a Hong Kong-based Chinese to serve on the Chief Executive’s program at the University of Texas, language daily newspaper, and Citibank. Commission of Youth. He was one of Austin, in the United States. He also only two university students in Hong served as an intern with Ernst & Young A total of 12 university students took part in the program, Kong to be selected to serve on the last year. During his internship, he was which included a series of intensive training and orientation prestigious body. He took up the post selected to take part in a global intern workshops as well as company visits in Hong Kong and on 1 April and will serve a two-year conference in Orlando, Florida, in the Shanghai. term. United States. “I think it was pretty special compared with other summer “The main function of the body is to programs I’ve attended,” Doris Leung, a year three finance Maximilian Wong (left) at the Youth major, said. “Most of them focus on issues such as leadership tackle youth-related issues,” Wong Summit, an annual event to collect says. “It is therefore important that public opinion towards the youth and confidence. This one was more about innovation and young people be represented on it so policy. how to build new ideas and think in different ways.” Cherry Ho, a year two global business major, was equally upbeat. “I think the program was really fruitful,” Cherry said. “From the visits to Citibank we learned how a company can motivate its employees to integrate innovative elements into their work.”
Doris Leung (far right) and Cherry Ho (second from right) spend a night out in Shanghai with participants from other universities. Students Grab Top Prize
n international group of six students from and Cherry Chau, a third year accounting major Already, significant interest has been shown in AHKUST topped 80 teams from Hong – both from Hong Kong; and Billy Shen and the project, says Shen, who owns the company Kong’s tertiary sector in the Young Shirley Zhu, both PhD candidates in computer marketing the software. The system has been Entrepreneurs’ Development Council (YDC) science from the mainland. sold to South China University and an English e-Challenge 2002 and earned the right to language school in Beijing. A venture capitalist The team’s entry, a business plan for E-Tutor, represent the SAR at a prestigious international in Singapore also showed interest in it. an e-learning software tool serving as a platform competition held in Singapore last summer. The to deliver interactive educational content, “We are looking seriously at marketing the concept e-Challenge was organized by the Hong Kong impressed the panel of judges, which included in both the mainland and Hong Kong,” Shen says. Chapter of YDC. venture capitalists, private equity investors, and “It will be particularly useful for professors in Hong The team was well-balanced, comprising two others. Kong. It will lift some of the burden they face in local undergraduates, two mainland PhD teaching multiple sections of the same class, students and two overseas MBA students. providing them with more time to conduct The team’s strengths lay in both the research.” technical and business aspects of the equation. HKUST team members from second left: The team was composed of Bhaskar Shirley Zhu, Bhaskar Sambamurthy, Sambamurthy, who is from India, Miles Connie Chung, Miles Logthetis and Billy Shen receive the award from Sophie Logthetis, an exchange MBA student from Leung (far right), chairman and founder, the United States; Connie Chung, who YDC Hong Kong. The team’s guide graduated this year with a BS in economics, Winston Van (far left) looks on.
HKUST Business School 13 Briefly Consumer Research Draws Teaching Excellence Worldwide Attention Cited he Asia-Pacific Association for Consumer Research T(ACR) held its first conference in Mainland China earlier ive professors have been honored for teaching excellence. K. P. Ramaswamy, this year. It was co-hosted by Peking University and the Fvisiting assistant professor of accounting; Tim Adam, assistant professor of Hong Kong University of Science and Technology. finance; Sabrina Kwan, assistant professor of accounting; Anthony Chan, visiting assistant professor of information and systems management (ISMT); and Paul Forster, “Based on the number of papers submitted and the feedback assistant professor of ISMT, were awarded the HKUST Franklin Prize for Teaching from participants, the location was an attractive selling point,” Excellence in recognition of their outstanding performance during the summer and Rami Zwick, professor of marketing and co-chair of the fall semesters of 2001 at the school board meeting held on 24 May. The awards are conference, said. “Exposing Chinese researchers to ACR’s presented each semester, with prize money coming from the Larry and Mei Kwong goals and activities was an added bonus.” Franklin Endowment. The conference provided a forum for marketing scholars from the Asia-Pacific region as well as around the world to present papers and be exposed to the latest research related to consumer behavior. Both cross-cultural issues and issues specifically related to Asian consumers were addressed. Harvard Business Review
Katherine Xin, associate professor of management of organizations, was named editor-in- chief of the Harvard Business Review – China in March. The Harvard Business Review is widely Dean Chan, Associate Dean Gary Biddle (far right) and donor Larry Franklin regarded at one of the most (second right) with the Franklin Prize winners at the award presentation ceremony, influential journals in the field of second from left are K.P. Ramaswamy (Year One Teaching), Paul Forster (MBA management. Non-Required/MSc Teaching), Sabrina Kwan (Year Three Teaching), Tim Adam (Year Two Teaching), and Anthony Chan (MBA Required Courses Teaching). Accounting Symposium
ore than 60 scholars attended the Summer Symposium on University entitled “Financial Accounting and Corporate Governance”. It M Accounting Research, which was held at HKUST 17-29 June. ended four days later with a talk by Prof. Dhinu Srinivasan of the University Included were a number of participants from Australia, Korea, Mainland of Pittsburgh entitled “Executive Compensation and Non-financial China, Thailand and the United States. The symposium began with a Performance Measures: A Study of the U.S. Airline Industry.” lecture by Prof. Albie Smith of the University of Chicago and Harvard
Gary Biddle (sixth from left), head of accounting, and coordinators of the event, Chung Kweon Kim (far left) and Hyun Koo Lee (far right), assistant professors of accounting, pose for a photo with Prof. Albie Smith (7th from the left), featured speaker Prof. David Larcker (4th from the right) of Wharton and some of the participants. The event was sponsored by the Hong Kong Society of Accountants.
14 Newsletter Issue 17 Meaningful Summer ot all teenagers spent their summers in video arcades or Nat the beach. A total of 120 Form 6 students from 30 schools took part in a summer study program at HKUST. Deemed “high achievers,” they were recommended by principals or panel teachers after performing well on public exams.
Fanny Law Fan Chiu-fun, Hong Kong’s permanent secretary for education and manpower, delivered the keynote speech to share with the participants her visions and views on education issues. The five-day program also included a series of lectures and seminars given by HKUST faculty, company visits and an I-Exchange Forum with UC Berkeley students.
Fanny Law (fourth from the right) poses with some of the Form 6 students. Professor More Alumni Join Elected to Mentoring Program ifty-two mentors and 53 mentees participated in the Business Mentoring Program in July. Prestigious Body FThe participation rate was up by more than 44 percent from the January program, when 36 mentors and 37 mentees took part. This is the first time alumni from the undergraduate and MSc programs have joined as mentors. They along with MBA alumni and volunteers from the business community have shared their experience with the selected undergraduates.
The Business Mentoring Program is a joint effort of the School and the HKUST student affairs office.
rof. Yan Xu, assistant professor of P information and systems management, has been elected to the Board of Directors of the International Telecommunications Society (ITS), an independent, non-aligned, and not- for-profit association of professionals in the telecommunications sector.
ITS chair, Loretta Anania from the European Commission, described Xu as an “eminent professor who is internationally well-known in the telecom management field”.
Michelle Law offers a vote of thanks to the mentors.
HKUST Business School 15 People Faculty Promotions and Appointments New Faculty The School welcomes the following new faculty members who joined the School as assistant professors from Fall 2002.
Accounting Economics Management of Organizations
Gilles Hilary Xiao Hong LiuYuk Fai Fong Hiromi Nosaka Heli Wang Yaping Gong
Finance Marketing
Min Wu Jie Gan Inseong Song Promotions and Appointments The School congratulates the following faculty members on their new promotions and appointments. Kalok Chan has been corporate valuation, also served as director of the center for appointed acting head of the international corporate e-commerce since 2001. department of finance from finance, corporate James Thong has been 1 September 2002 to 31 governance, mergers and promoted from assistant January 2003. Chan joined acquisitions, debt contracts professor to associate HKUST as a visiting and banking. professor of information and associate professor in 1995. Kenneth Law has been promoted from systems management. His He was named associate professor in 1998 associate professor to professor of research interests include and professor in 2000. His research interests management of information technology include dynamics of asset prices, market organizations. His research adoption and implementation, IT in small microstructure, derivatives, and international interests include human businesses, computer ethics, IT personnel financial markets. resources management, management, and electronic commerce. behavioral science research Leonard Cheng has been Hongtao Zhang has been methodology and appointed head of the promoted from assistant organizational behavior. department of economics, professor to associate effective 1 July 2002. Cheng Jaideep Sengupta has professor of information and also served as head of the been promoted from systems management. His department from 1995 to assistant professor to research interests include 2001 and associate dean of associate professor of coordination in production the School between 1993 and 1996. His marketing. His research and service systems, supply chain research interests include international trade interests include attitude management, value of information and and investments, market structure and applied strength, low involvement incentives for information exchange, and game theory, innovation and imitation. persuasion, effects of analyzing reasons, coordination of global operations. consumer lying, and Internet commerce. David Cook has been Rami Zwick has been promoted from assistant Kar Yan Tam has been appointed head of promoted from associate professor to associate the department of information and systems professor to professor of professor of economics. His management, effective 1 August 2002. Tam marketing. His research research interests run from joined HKUST in 1992. He interests include consumer macroeconomics and was deputy head of the and managerial decision- monetary economics to department from 1992 to making, mental accounting, international finance. 1998 and has been director debt and financing decisions, credit cards, of undergraduate programs consumption decisions, consumer evaluations Vidhan Goyal has been promoted from and associate dean of the of consumer episodes, sales promotion, and assistant professor to associate professor of school since 1999. He has in-store shopping behavior. finance. His research interests include
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