Final Issue Vol 10 Num 1 July 2017 Section C.Pdf

THE INTERNATIONAL JOURNAL OF ORGANIZATIONAL INNOVATION

VOLUME 10 NUMBER 1 JULY 2017

Table of Contents - Section C:

PAGE, TITLE, AUTHORS:

210. An Empirical Study On The Relationship Among Slack Resources, Resource Deployment, Turnaround Strategy, And Turnaround Performance Bo-Wei Chen, Tzu-Hsiang Wei

229. Revitalization Strategies For Abandoned Sugar Factory Sites In Taiwan Hsiang-Wen Li, Tsung-Chieh Tsai

238. The Study Of The Empathy Items In Servqual Scale For Measurement Invariance Across Gender Ling-Chuan Huang, Yun-Chin Huang, Chao-Yang Hung, Yu-Jia Hu

246. A Descriptive Study Of Health Behaviors In Taiwan’s Substitute Military Service Hsiang-Ping Wang, Yao-Hsu Tsai, Lei Pei

260. Justice Tax Based On MSME Enterpreneur Perspective - Case Study Of Atom Market Surabaya - Jeanny Novliemyanti, Fauzi Ismail Arif, Yogi Prasetyo Nugroho, Bambang Tjahjadi

275. Developing A Sustainable Tourism Attitude In Taiwanese Residents Wei-San Su, Lan-Fang Chang, Ming-Tai Yeh

290. The Impact Of Social Support On Job Performance: The Empirical Study Of Mediating And Moderating Effects Of Related Variables Yuan-Duen Lee, Chiu-Chuan Lin, Min-Tzu Chen, Chen-Fen Huang

319. A Study Of Innovative Leisure Sports Concept - The Influence Of Triathlon Leisure Fit And Flow Experience On Happiness: Flow Experience As A Mediator - Yu-Chih Lo

209 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

An Empirical Study on the Relationship among Slack Resources, Resource Deployment, Turnaround Strategy, and Turnaround Performance

Bo-Wei Chen* Department of Business Administration National Yunlin University of Science & Technology, Taiwan R.O.C. *Corresponding author: [email protected]

Tzu-Hsiang Wei Department of Business Administration National Yunlin University of Science & Technology, Taiwan

Abstract

This study explores the relationship among organizational slack resources, resource deployment, turnaround strategy, and turnaround performance, employing sample companies that experienced turnaround situations during 1998-2010 from the Taiwan Economic Journal database. The empirical results herein show (1)slack resources negatively influence an efficiency-oriented strategy; (2)resource deployment has a positive influence on an efficiency-oriented strategy; (3)firms adapt an efficiency- oriented strategy has a negative impact on performance; (4)firms with higher variety in resources deployment, the utilization of a efficiency-oriented strategy deteriorated turnaround performance; (5)firm's specific factors have more impact on turnaround performance than do other variables.

Keywords: Turnaround Strategy, Organizational Slack Resource, Resource Deploy- ment, Firm Specific Factors, Turnaround Performance

Introduction Hambrick 2012; Ndofor et al. 2013; Schmitt and Raisch 2013). Chen It is ubiquitous that most com- (2015) emphasized that the opera- panies have to face the situation of tional definition of a declining situa- economic recessions and encounter tion - requiring a one-year swing from poor performance during their organ- healthy profits to operating losses - izational life cycle. Firms that have does not mean that the problems con- declined for several years are generally fronting these companies were minor considered as representatives for a or necessarily short lived. turnaround situation (Chen and

210 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 An unsuccessful reaction for cop- ing with poor performance may lead For firms that have experienced se- firms to a difficult situation or even go verely declining performance, manag- into liquidation. Managers should thus ers and researchers regard this situation conduct effective actions to prevent as reversible (Collett et al. 2014). In their firms from going out of business. the early studies of the literature, re- A turnaround strategy is the solution searchers divided turnaround strategies for managers to implement when help- into three main categories: cost reducing their firms to survive. tion, growth or recovery strategies, and combined approaches. It is hard to Different approaches of turn- classify a combination strategy into a around strategies have been discussed definite strategy. Successful turnover the years. Some focus on the ne- around strategies rely on the causes of cessity of a turnaround strategy and decline and the solutions that are cus- the factors that accelerate the change tomized in order to solve for different of strategy (Schoenberg et al. 2013). cases (Rasheed 2005). Previous schol- Others put more efforts on how the ars have presented different options for turnaround occurred (Ahearne et al. firms to revive themselves from poor 2014; Panicker and Manimala 2015) financial performance due to diverse and the factors that restrict a turn- causes and the nature of the turnaround around (Bradley et al. 2011). How- situation. ever, there is still no consensus about which turnaround strategy is better Rasheed (2005) explored the than another one (Trahms et al. 2013). choice between growth and retrenchment under turnaround strategies for Previous studies have made some small business owners experiencing a assumptions about turnaround strategy decline in performance. His results in- and turnaround performance (Harker dicated these contractors choose a and Sharma, 1999; Sudarsanam and growth strategy when their perceptions Lai, 2001; Barker and Mone, 1994). of resource availability and past finan- However, little research based on cial performance are both high and large samples and empirical ap- when both are low. This indicates proaches focus on the impact of slack small business owner/ managers re- resources, resource deployment, and main aggressive when faced with ad- firm specific factors in the relationship verse conditions. of turnaround strategy and turnaround performance. The main goal of this The focal point of other studies research is to explore the relationship on turnaround strategies put more ef- between turnaround strategies and fort on different aspects. Previous stud- firm performance, especially for the ies on financial management and con- impact of slack resources, resource trol recommended organizations to re- deployment, and firm specific factors. structure debt or execute asset reduction (Chen and Hambrick 2012). Turn- The Relationships Among Turnaround around strategies recognized for their Strategy, Slack Resources, Resource improvement on operations manage- Deployment, Firm Specific Factors, ment include quality improvement, and Turnaround Performance cost reduction, efficiency measures,

211 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 and investment in R&D (Collett et al. resources, managers are able to use 2014; Trahms et al. 2013). In the field those resources during a decline in of top management team and human business (Le Cottier and Santalo 2014; resource management, organizational Xu et al. 2015). Slack resources can be restructure, employee reduction, in- regarded as a buffer system to alleviate formation dissemination, and culture the impact from an external recession. building are the strategic options rec- Researchers have proposed the follow- ommended to help companies during a ing idea: Organizational slack is a kind declining situation and to put them on of cushion, which consists of actual or a path of stabilization and growth potential resources that allow an or- (Pajunen 2005). ganization to adapt successfully to internal or external pressures, such as To sum up, the main recom- policy changes or strategy changes re- mendation from prior studies can be lating to the external environment categorized into two types of strate- (Lecuona and Reitzig 2014; Marlin and gies: growth-oriented and efficiency- Geiger 2015). oriented (Hofer and Schendel 1978; Hambrick and Schecter 1983; O’Neill Slack organizational resources 1986; Pearce and Robbins 1993). facilitate firms to eliminate incon- Barker and Mone (1994) stated that sistency in their business goals (Marlin firms conducting an efficiency- ori- and Geiger 2015). The four major pur- ented strategy may not revive them- poses for slack resources are: 1) moti- selves from the decline. In other vations for firm actors to stay within words, an efficiency-oriented strategy the system; 2) a tool to reduce incon- shrinks the scope of business or de- sistency of business goals; 3) a buffer- creases the expenses of marketing and ing mechanism in the workflow proc- other costs, making organizations lose ess; 4) a supporter of some strategic their profitable competency and speed- intention or inventive actions within ing up the declining situation (Grinyer the firm (Huang and Li 2012; Marlin and Spencer 1979; Barker and Mone and Geiger 2015; Mariadoss et al. 1994). Conversely to efficiency- 2014). Firms may endure threat- rigid- oriented strategies, growth-oriented ity and have less flexibility to react to a strategies are much more successful in decline when the organization lacks a company turnaround situation liquid resources as a buffer. Studies (Barker and Mone 1994; Harker and have found that threat-rigidity is a Sharma 1999; Sudarsanam and Lai strong influence if firms are suffering 2001). As such, this study offers the from a drain of slack organizational following hypothesis. resources (McKinley et al. 2014; Ndofor et al. 2013). Scholars have Hypothesis 1: Different turnaround clearly suggested the importance of strategies selected lead to the differ- slack resources, and firms without ent turnaround performance. enough slack resources could be less flexible in conducting strategic actions In light of theorists of the tradi- for which their performance will be tional organization approach, the pres- affected. Hence, this study proposes ervation of slack resources is good be- the next two hypotheses as follows. havior. When an organization has slack

212 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 Hypothesis 2: Slack organizational Hypothesis 5: Resource deployment resources may positively affect moderates the relationship between turnaround strategies. turnaround strategies and turnaround performance. Hypothesis 3: Slack organizational resources moderate the relation- The Present Study ship between turnaround strategies and turnaround performance. The purpose of this study is to examine the influence of slack organ- Companies are internalized struc- izational resources, resource deploy- tures of resources deployment (Klein et ment, firm specific factors, and turn- al. 2013; Kozlenkova et al. 2014), with around strategy on turnaround per- managers in the company trying to fo- formance. The first condition for ob- cus on maximizing shareholder value taining data is that the target firms (Garzella and Fiorentino 2014; Hoenen must have experienced a turnaround and Kostova 2015). Under these cir- situation. This study uses financial data cumstances, managers endeavor to in- to define organizations that had experi- crease the efficiency of resource allo- enced a turnaround situation, in which cation and decrease transaction costs in at least two consecutive years of return order to maintain sufficient returns to on invested capital are below the aver- invested capital (Gentry and Shen age of each industry (Barker and Mone 2013; Hoenen and Kostova 2015). To 1994). Taiwan Economic Journal’s achieve this, resources must be allo- definition of return on invested capital cated to units that can bring the most is ROA (B): (Net Income-Exc positive effects in an organization Dispo/Total assets on average)*100. (Shinkle et al. 2013). Method As Fombrun and Ginsberg (1990) pointed out, strategy represents Participants and Procedure the aggregation of longitudinal resource deployment. Scholars have de- The sample for this research was fined several ways for resource de- derived from the Taiwan Economic ployment, and the most popular one is Journal database and is limited to listed to define the relative aggressiveness in companies. To be included in the sam- using and deploying resources (Ro- ple, a firm must have been actively manelli 1986; Venkatraman and Grant traded in the Taiwan stock market and 1986). Firms with higher aggressive- experienced a turnaround situation dur- ness in terms of resource deployment ing a 13-year period (fiscal years 1998- could move quickly into new prod- 2010). The sample did not include ucts/markets, which will be reflected in firms' data for the year 2008, as such their performance. Hence, this study financial data might have been influ- offers the next hypotheses as follows. enced by the global financial crisis. Taiwan Economic Journal yielded a Hypothesis 4: Resource deployment potential sample of 593 firms. Firms may have positive effects on turn- with missing data or incomplete data around strategies. were removed at initial screening, resulting in a sample of 355 companies.

213 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 Measures relatively low ability to obtain additional funds through incurring debt and Turnaround Strategy thus has little potential slack (Bourgeois and Singh 1983). The data This study defines turnaround obtained for slack resources in this strategy into two main categories: effi- study have adopted two time periods ciency-oriented and growth-oriented; (2001-2005, one year before turn- efficiency-oriented means that firms around) and (2003-2007, one year after are increasing their capabilities of cost turnaround). The equation of slack re- control in order to stabilize operations; sources is given as follows. growth-oriented means the organizations conducted a market expansion,  Available slack resources = cur- invested in new products, and diversi- rent ratio fied to stimulate growth (Collett et al.  Recoverable slack resources = 2014; Tangpong et al. 2015; Trahms et accounts receivable/sales al. 2013). We follow the study of Chen  Potential slack resources = eq- et al. (2014), in which the efficiency- uity-to-debt ratio oriented strategy us calculated by the average variation of operating ex- Resources Deployment penses during a three-year period of the turnaround situation. On the other This study uses the measurement hand, the growth-oriented strategy is of resources deployment in Fombrun calculated by the average variation of and Ginsberg (1990) and focuses on sales per employee during a three-year two kinds of resources deployment: period of the turnaround situation. If variety in resources deployment and the data reveal that both strategies are shifts in resources deployment. This qualified, then the level of percent study further uses three resource types change decides the strategic orienta- to measure variety in resources de- tion. ployment: R&D intensity (R&D expenditures/sales), capital intensity Slack Resources (capital expenditures/sales), and advertising intensity (advertising expendi- Slack resources in this research tures/sales). This research picked three follow the measure in Bourgeois and consecutive years (1998- 2005) of in- Singh (1983). Bourgeois and Singh formation for each turnaround period. (1983) separated slack resources into For the measurement of the variety in three categories: available, recover- resources, this study adopts the coeffi- able, and potential slack. This research cient of variation (σ/mean) across the adopts the same measurement of slack three areas to realize the varieties resources into three main categories; (Dooley et al. 1996) and then averages for example, using the current ratio as the results from each resource to get the measurement of available slack and the varieties in each firm. For shifts in the accounts receivable-sales ratio to resources deployment, this study uses measure recoverable slack. The other the proportion of the three resource one is potential slack, which is meas- types for an estimate. Here, it is Ra/ ured by the debt-equity-ratio. A firm RTL, where Ra is the dollar amount with a high equity-to-debt ratio has a allocated to the resource types, and

214 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 RTL is the total amount of dollar spent The second variable is firm size. on the three resource types (R&D, Scholars building upon Schumpeter’s capital, and advertising). classic arguments suggested that large ﬁrms are more capable of obtaining We then calculate the absolute radical innovations, enjoy economies differences in the proportions of allo- of scale in research and development, cations to all three resource types spread risks widely, and have greater across the two time periods. There are access to market and ﬁnancial five turnaround periods in this study resources (Forés and Camisón 2016). and hence five different periods of data This study follows the measurement of provided: t1 (1998-2000) and t2 (1999- Barker III et al. (2001), who provided 2001); t1 (1999-2001) and t2 (2000- the number of employees during one 2002); t1 (2000-2002) and t2 (2001- year before turnaround as the meas- 2003); t1 (2001-2003) and t2 (2002- urement of organization size. 2004); and t1 (2002-2004) and t2 (2003-2005). We also control market position, in which firms possessing greater Next, this research operates the market position leads to adequate data computed above through the fol- resources for strategic changes lowing formula: (Schoenberg et al. 2013). Companies with adequate resources could have │( Ra/RTL) t1- (Ra/RTL) t2│. more chances to achieve better turnaround performance. Market The measurement of shifts in re- position is measured by total revenue source deployment also follows the and market share (Schoenberg et al. study of Fombrun and Ginsberg 2013). Therefore, this study first ac- (1990). quires the total revenue one year before firms experienced a turnaround Firm Specific Factors situation and then computes the data to a standardized score for each industry. Several control variables are If the numbered results are positive, included in the model, and the first is then it shows that the firm has a higher organization age. Levinthal (1991) market position than other firms in the suggested that there is a relationship industry. However, a negative number between the age of an individual reveals information that the companies organization and the likelihood of possess a lower market position. survival. Older organizations tend to exhibit higher mean performance, Better turnaround performance greater reliability in their performance, can be traced back to better prior and higher levels of inertia in their performance. Better prior performance behaviors. This study adopts the can be regarded as a firm’s internal measurement suggested by Kelly and abilities, and firms with better internal Amburgey (1991), which is the year of capabilities have more resources to turnaround minus the organization’s operate on strategic changes (Díaz- founding year. Fernández et al. 2016). Thus, prior performance is also our control variable. Prior performance is

215 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 measured by the four-year ROA aver- growth-orientated strategy (GO). The age before firms experienced the turn- values presented in the table are stan- around (Wiseman and Bromiley 1996). dardized coefficients.

Turnaround Performance EO: Model 1 of the hierarchical regression includes firm specific factors; Turnaround performance can be in model 2 of the hierarchical regres- measured by four consecutive years of sion, organizational slack resources are revenue variation (Kesner and Dalton added; the third block includes the re- 1994). Companies with successful sources deployment. R2 values for the turnaround performances show growth three models are 0.002, 0.02, and in net profit for three consecutive 0.038. The influences of age, size, years. Another definition of a success- market position, and prior performance ful turnaround performance is when were not statistically significant in the return on investment (ROI) and return model, and the P value of model 1 was on sales (ROS) have risen above aver- greater than 0.05, indicating that the age and keep growing for two consecu- influence of firm specific factors on an tive years after a turnaround situation efficiency- oriented turnaround strat- (Robbins and Pearce 1992). This study egy was not evident. Organizational uses the averages of ROI, ROS, and slack resources were added to the sec- ROA (B) for three consecutive years to ond block, and only the predictive measure turnaround performance. power of available slack resource was statistically significant (β=-.149, t=- Results 2.223, p<0.05). In model 3, resources deployment was added. An influence Descriptive Statistics and Correlations of shifts in resources deployment on advertising expenditure (β=0.135, Table 1 provides the correlation t=1.861, p<0.1) was found, indicating matrix and descriptive statistics for all the more resources shifted toward ad- variables. An examination of the corre- vertising expenditure, the more likely lation matrix reveals that some predic- an efficiency-oriented strategy will be tor variables are significantly corre- adopted. lated with each other. Thus, multicol- linearity should further be inspected by GO: Model 1 of the hierarchical re- VIF. gression included firm specific factors; in model 2 of the hierarchical regres- Hierarchical Regression sion, organizational slack resources were added; the third block included The Impacts of Slack Resources, Re- resources deployment. The R2 values source Deployment, and Firm Specific for the three models were 0.018, 0.025, Factors on Turnaround Strategies and 0.047. Age was found to be statistically significant (β=-0.121, t=-2.706, Table 2 reports the results of the p<0.05), revealing that a sample or- influence of firm specific factors, slack ganization with older age tends to resources and resources deployment on adopt a growth-oriented strategy when turnaround strategies in terms of effi- a decline occurs. ciency-orientated strategy (EO) and

216 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 The Impacts of Turnaround Strategies, 2.506, p<0.05), size (β=0.254, t=3.840, Slack Resources, Resource Deploy- p<0.05), market position (β=-0.133, ment, and Firm Specific Factors on t=-2.000, p<0.05) and prior perform- Turnaround Performance ance (β=0.327, t=6.179, p<0.05) were found to have strong positive influ- Table 3 shows the results of the ences on turnaround performance in influence of organizational slack re- terms of ROI. When turnaround strate- source and turnaround strategies on gies were added into model 2 and turnaround performance in terms of model 3 and model 4, no significant ROS. The values reported in the table influence was found. are standardized coefficients. In model 1 of the regression model, organization When resource deployment was size (β=-0.167, t=-2.464, p<0.05) and added into model 5, shifts in resource prior performance (β=0.329, t=6.058, deployment in R&D expenditure p<0.05) were found to have a strongly (β=0.101, t=1.775, p<0.1) was found positive influence on turnaround per- to have a positive impact on turn- formance in terms of ROS. around performance in terms of ROI. Table 5 shows the results of the influ- When turnaround strategies were ence of organizational slack resource added into model 2, an efficiency- ori- and turnaround strategies on turn- ented strategy (β=-0.124, t=-2.289, around performance in terms of ROA. p<0.05) was found to have a positive In model 1 of the regression model, influence on turnaround performance organization age (β=-0.151, t=-2.903, in terms of ROS. When organizational p<0.05), size (β=0.287, t=4.433, slack resources were added into model p<0.05), and prior performance 3, available slack resource (β=-0.108, (β=0.343, t=6.620, p<0.05) were found t=1.654, p<0.1) was found to have a to have a strong positive influence on positive impact on turnaround per- turnaround performance in terms of formance in terms of ROS. Model 4 ROA. added the moderator effects between slack resources and turnaround strate- When organizational slack re- gies. A moderator effect of a growth- sources were added into model 3, oriented strategy and available slack available slack resource (T+1) resource (β=-0.131, t=-1.947, p<0.1) (β=0.107, t=1.704, p<0.1) and recover- was found. When moderator effects able slack resource (β=-0.106, t=- between turnaround strategies and re- 1.986, p<0.05) were found to have a source deployment were further added positive impact on turnaround per- to model 6, a moderator effect of the formance in terms of ROA. When re- variety of resource deployment was source deployment was added into found (β=-0.108, t=-1.890, p<0.1). model 5, shifts in resource deployment in R&D expenditure (β=0.122, Table 4 shows the results of the t=2.191, p<0.05) were found to have a influence of organizational slack re- positive impact on ROA. When mod- source and turnaround strategies on erator effects between turnaround turnaround performance in terms of strategies and resource deployment ROI. In model 1 of the regression were further added to model 6, model, organization age (β=-0.133, t=-

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Table 1 Descriptive statistics and bivariate correlations of all variables Mean SD 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1. Age -0.002 0.906 2. Size 0.000 0.905 .084 3. MP -0.075 0.659 .123* .605** 4. PP 0.010 0.895 -.090 .028 .059 5. EO -0.015 0.876 .002 .041 .027 .003 6. GO -0.021 0.847 -.119* -.048 -.003 .007 .137* 7. PS(T-1) -0.010 0.896 .011 .065 .094 -.264** .044 .030 8. AS(T-1) 0.009 0.887 -.070 -.066 -.067 .268** -.132* -.057 -.477** 9. RS(T-1) 0.019 0.907 .039 -.131* -.250** -.174** -.029 -.070 -.041 .104 10. PS(T+1) -0.013 0.902 -.021 .040 .051 -.235** .024 -.017 .740** -.405** .036 11. AS(T+1 0.023 0.908 -.092 -.162** -.125* .254** -.115* -.008 -.474** .580** .018 -.514** ) 12. RS(T+1 0.030 0.901 .053 -.106 -.200** -.105 -.002 -.059 .022 .134* .713** .118* .081 ) 13. ROS-P 0.016 0.880 -.066 .126* .038 .333** -.116* -.005 -.151** .207** -.157** -.218** .211** -.123* 14. ROI-P -0.005 0.906 -.158** .172** .023 .339** -.017 -.022 -.070 .066 -.145* -.120* .197** -.118* .673** 15. ROA(B) -0.005 0.898 -.169** .232** .089 .360** -.034 -.005 -.116* .088 -.188** -.181** .180** -.154** .788** .845** -P 16. VIRDep -0.012 0.888 -.147* -.108 -.095 -.264** -.015 .055 .104 -.033 -.100 .014 .065 -.104 -.009 .012 -.041 . 17. shifts- -0.005 0.877 .006 -.072 -.015 -.113* .051 -.019 .083 -.019 -.024 .059 .035 .012 .009 .017 -.001 .299** adv. 18. shifts- -0.017 0.887 -.096 -.024 .021 .006 -.069 .133* .011 -.004 -.117* -.028 .091 -.069 .069 .114* .139* .086 .189** R&D 19. shifts- -0.019 0.875 .048 -.057 -.008 -.029 -.050 .081 .101 -.051 -.068 .023 .025 -.010 .024 .049 .047 .307** .591** .358** Cap * p< .05, ** p< .01, *** p< .001.

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Table 2 Hierarchical regression analysis - turnaround strategies Model 1 Model 2 Model 3 EO GO EO GO EO GO EO GO EO GO EO GO EO GO EO GO EO GO Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Age -.001 -.121** .975 .975 1.025 1.025 -.007 -.119** .968 .968 1.033 1.033 -.008 -.112* .918 .918 1.090 1.090 Size .040 -.071 .634 .634 1.578 1.578 .035 -.072 .633 .633 1.581 1.581 .035 -.067 .627 .627 1.595 1.595 MP .003 .056 .626 .626 1.596 1.596 -.004 .036 .594 .594 1.684 1.684 -.006 .037 .591 .591 1.692 1.692 PP .001 -.005 .987 .987 1.013 1.013 .035 .003 .857 .857 1.167 1.167 .046 .001 .771 .771 1.297 1.297 PS(T-1) -.020 .001 .745 .745 1.342 1.342 -.019 -.002 .738 .738 1.355 1.355 AS(T-1) -.149** -.062 .734 .734 1.363 1.363 -.154** -.060 .728 .728 1.374 1.374 RS(T-1) -.004 -.059 .889 .889 1.125 1.125 -.014 -.041 .852 .852 1.173 1.173 VIRDep. -.006 .022 .764 .764 1.309 1.309 shifts-adv. .135* -.108 .628 .628 1.593 1.593 shifts-R&D -.057 .098 .846 .846 1.183 1.183 shifts-Cap -.111 .099 .552 .552 1.811 1.811 R 0.042 0.133 0.143 0.159 0.195 0.217 R2 0.002 0.018 0.02 0.025 0.038 0.047 Adjusted R2 -0.012 0.004 -0.003 0.002 0.002 0.011 F 0.132 1.338 0.88 1.098 1.044 1.31 Sig. 0.971 0.256 0.523 0.364 0.408 0.218 * p< .05, ** p< .01, *** p< .001.

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Table 3 Hierarchical Regression Analysis - ROS Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Age -.041 .975 1.025 -.039 .961 1.040 -.033 .943 1.061 -.033 .920 1.087 -.018 .910 1.099 -.032 .881 1.136 Size .167** .634 1.578 .173** .631 1.585 .189*** .621 1.610 .1857** .606 1.649 .185** .625 1.600 .194** .607 1.648 MP -.077 .626 1.596 -.077 .625 1.600 -.084 .604 1.657 -.080 .599 1.669 -.082 .623 1.606 -.087 .603 1.659 PP .329*** .987 1.013 .329*** .987 1.013 .272*** .898 1.114 .276*** .888 1.126 .358*** .899 1.112 .345*** .856 1.169 EO -.124** .979 1.022 -.109** .965 1.037 -.095* .913 1.095 -.124** .957 1.045 -.115** .947 1.056 GO .013 .963 1.038 .007 .960 1.042 .017 .920 1.087 .008 .933 1.071 .005 .889 1.125 PS(T+1) -.090 .691 1.448 -.089 .685 1.460 AS(T+1) .108* .660 1.516 .111* .637 1.569 RS(T+1) -.087 .904 1.106 -.085 .889 1.124 PS_EO .071 .682 1.466 AS_EO .041 .626 1.598 RS_EO -.035 .923 1.083 PS_GO -.099 .638 1.567 AS_GO -.131* .618 1.617 RS_GO .009 .919 1.088 VIRDep. .083 .788 1.269 .072 .773 1.294 shifts-adv. .056 .615 1.625 .058 .603 1.658 shifts-R&D .059 .843 1.186 .067 .815 1.227 shifts-Cap -.042 .549 1.821 -.051 .531 1.885 Var._EO -.108* .891 1.122 Var._GO .047 .768 1.302 Shifts.adv_EO -.028 .625 1.599 Shifts.adv_GO -.039 .459 2.179 Shifts.RD_EO -.058 .839 1.192 Shifts.RD_GO -.002 .708 1.412 Shifts.Cap_EO .071 .591 1.692 Shifts.Cap_GO .011 .405 2.467 R 0.361 0.381 0.423 0.44 0.397 0.419 R2 0.13 0.145 0.179 0.194 0.158 0.175 Adjusted R2 0.119 0.128 0.154 0.152 0.129 0.123 F 11.198 8.421 7.123 4.607 5.481 3.366 Sig. 0.000 0.000 0.000 0.000 0.000 0.000 * p< .05, ** p< .01, *** p< .001.

220 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 Table 4 Hierarchical Regression Analysis - ROI Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Age -.133** .975 1.025 -.137** .961 1.040 -.119** .943 1.061 -.122** .920 1.087 -.114** .910 1.099 -.109** .881 1.136 Size .254 .634 1.578 .253*** .631 1.585 .276*** .621 1.610 .275*** .606 1.649 .267*** .625 1.600 .266*** .607 1.648 MP -.133** .626 1.596 -.131** .625 1.600 -.147** .604 1.657 -.147** .599 1.669 -.138** .623 1.606 -.159** .603 1.659 PP .327*** .987 1.013 .327*** .987 1.013 .285*** .898 1.114 .279*** .888 1.126 .356*** .899 1.112 .361*** .856 1.169 EO -.020 .979 1.022 -.002 .965 1.037 .007 .913 1.095 -.012 .957 1.045 -.007 .947 1.056 GO -.026 .963 1.038 -.029 .960 1.042 -.034 .920 1.087 -.042 .933 1.071 -.031 .889 1.125 PS(T+1) .039 .691 1.448 .035 .685 1.460 AS(T+1) .168** .660 1.516 .170** .637 1.569 RS(T+1) -.102* .904 1.106 -.099* .889 1.124 PS_EO .087 .682 1.466 AS_EO .051 .626 1.598 RS_EO -.006 .923 1.083 PS_GO -.082 .638 1.567 AS_GO -.026 .618 1.617 RS_GO .037 .919 1.088 VIRDep. .090 .788 1.269 .083 .773 1.294 shifts-adv. .028 .615 1.625 .042 .603 1.658 shifts-R&D .101** .843 1.186 .114** .815 1.227 shifts-Cap .000 .549 1.821 -.002 .531 1.885 Var._EO .001 .891 1.122 Var._GO .089 .768 1.302 Shifts.adv_EO -.043 .625 1.599 Shifts.adv_GO .049 .459 2.179 Shifts.RD_EO .039 .839 1.192 Shifts.RD_GO -.070 .708 1.412 Shifts.Cap_EO .013 .591 1.692 Shifts.Cap_GO -.110 .405 2.467 R 0.415 0.417 0.448 0.458 0.442 0.462 R2 0.172 0.174 0.200 0.210 0.195 0.213 Adjusted R2 0.161 0.157 0.176 0.168 0.168 0.164 F 15.568 10.400 8.187 5.093 7.103 1.292 Sig. 0.000 0.000 0.000 0.000 0.000 0.000 * p< .05, ** p< .01, *** p< .001.

221 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 Table 5 Hierarchical Regression Analysis - ROA Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Beta Tolerance VIF Age -.151** .975 1.025 -.152** .961 1.040 -.143** .943 1.061 -.138** .920 1.087 -.137** .910 1.099 -.132** .881 1.136 Size .287*** .634 1.578 .288*** .631 1.585 .304*** .621 1.610 .314*** .606 1.649 .299*** .625 1.600 .300*** .607 1.648 MP -.086 .626 1.596 -.085 .625 1.600 -.099 .604 1.657 -.099 .599 1.669 -.094 .623 1.606 -.109 .603 1.659 PP .343*** .987 1.013 .343*** .987 1.013 .293*** .898 1.114 .292*** .888 1.126 .356*** .899 1.112 .357*** .856 1.169 EO -.043 .979 1.022 -.029 .965 1.037 -.013 .913 1.095 -.032 .957 1.045 -.026 .947 1.056 GO -.006 .963 1.038 -.012 .960 1.042 -.009 .920 1.087 -.024 .933 1.071 -.025 .889 1.125 PS(T+1) -.054 .691 1.448 -.053 .685 1.460 AS(T+1) .107* .660 1.516 .119* .637 1.569 RS(T+1) -.106** .904 1.106 -.102* .889 1.124 PS_EO .054 .682 1.466 AS_EO .070 .626 1.598 RS_EO .023 .923 1.083 PS_GO -.087 .638 1.567 AS_GO -.082 .618 1.617 RS_GO -.014 .919 1.088 VIRDep. .037 .788 1.269 .028 .773 1.294 shifts-adv. .020 .615 1.625 .027 .603 1.658 shifts-R&D .122** .843 1.186 .130** .815 1.227 shifts-Cap .013 .549 1.821 .015 .531 1.885 Var._EO -.021 .891 1.122 Var._GO .098* .768 1.302 Shifts.adv_EO -.035 .625 1.599 Shifts.adv_GO -.006 .459 2.179 Shifts.RD_EO .032 .839 1.192 Shifts.RD_GO -.003 .708 1.412 Shifts.Cap_EO .024 .591 1.692 Shifts.Cap_GO -.089 .405 2.467 R 0.456 0.458 0.488 0.497 0.479 0.492 R2 0.208 0.21 0.238 0.247 0.230 0.242 Adjusted R2 0.197 0.194 0.214 0.208 0.203 0.194 F 19.606 13.135 10.191 6.305 8.729 5.053 Sig. 0.000 0.000 0.000 0.000 0.000 0.000 * p< .05, ** p< .01, *** p< .001.

222 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 a moderator effect was found (β=0.098, Advertising expenditure intends to t=1.660, p<0.1), indicating the variety of stimulate sales in order to survive during resource deployment positively impacts a decline, but the operating expenses or the relationship between an efficient- budget of a firm are usually fixed or at a oriented strategy and ROA. certain proportion of sales revenue. Un- der a declining situation, a drop in sales Discussion revenue is usually followed by cuts in the budget or operating expenditure. In Conclusions and Managerial this case, if a firm continuously in- Implications creases investment in advertising, then there is less it can spend on R&D or This research presents that the im- capital expenditure. Consequently, the pact of an efficiency-oriented strategy on chances of developing any new products performance is negative in terms of could be minimized and sales revenue ROS. This result is similar to the finding will decrease. As a result, budget cutting of Barker and Mone (1994), indicating is inevitable and the crystallization of an that efficient-oriented strategy may not efficiency-oriented strategy cannot be be very effective under a declining situa- avoided. tion. Regarding the moderate effects of For the relationships between slack resources deployment on turnaround resources and turnaround strategy, AS strategies and turnaround performance, was found to have a negative influence our study finds that the variety of re- on an efficiency-oriented strategy. Al- source deployment has negative effects though the impacts of PS and RS on an on the relationship between an effi- efficiency-oriented strategy were not sta- ciency-oriented strategy and ROS. The tistically significant, their direction is reason could be that the variety of re- also negative. Jensen (1986) suggested source deployment will harm the effec- slack resources encourage inefficiency, tiveness of efficiency-oriented strategy, politics, and self-serving behaviors. The consequently affected the profitability of results of this study support this point of turnaround performance. Organization view. When excess slack resources are age was found to be negatively related to available, managers will try to protect turnaround performance, perhaps be- personal interests and turn away from an cause older age firms might have built-in efficiency-oriented strategy. routines that cause inertia and reluctancy to change. Thus, they have problems ad- For the relationship between re- justing when the environment change, source deployment and strategy, we find and performance will be affected. that increasing advertising expenditure positively influences an efficiency- ori- Organization size was found to be ented strategy. The forming of a strategy positively related to turnaround perform- is the aggregation of resources deploy- ance. A large organization usually indi- ment (Fombrun and Ginsberg 1990). cates more resources, such as more tal-

223 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 ents, more financial power, and greater and it is difficult to understand whether R&D capability. Those abundant re- the information was refined or not. Fu- sources more easily and smoothly help a ture studies can investigate selected in- company overcome a decline. The sam- dustries and conduct interviews with ple firms’ prior performance was found managers to realize the real difficulties to have a very strong positive impact on on turnaround strategy adoption and on turnaround performance. Prior perform- the use of slack resources. The sample ance can be regarded as a firm’s internal companies of this study were those firms capabilities, and similar to company experiencing a turnaround situation dur- size, prior performance could also be a ing a 13-year period (1998-2010). Future kind of resource. The implication is that research could add a specific time period firms have to possess resources when- into the study, like the year 2008, to see ever they can, because no manager the pattern of a firm’s resource deploy- knows the exact time for when to use ment and the use of slack resources those resources. when encountering a severe economic slowdown. This study also focused on Market position is negatively re- Taiwan-listed firms. Future studies could lated to ROI, which means firms with a compare some selected industries to un- lower market position tend to have a derstand whether various business do- higher rate of ROI. It might be Taiwan- mains act differently or not when facing listed firms with a lower market position a decline in performance. like to adopt a flexible strategy when facing an economic recession, which could subsequently lead to better per- References formance. According to the research results, a firm's specific factors have more Ahearne, M., Lam, S.K., Kraus, F.: Per- impact on turnaround performance than formance impact of middle manag- do other variables. Hence, this study de- ers' adaptive strategy implementa- duces that firm specific factors play an tion: The role of social capital. Stra- important role when the sample compa- tegic Management Journal 35(1), nies were conducting turnaround strate- 68-87 (2014) gies during a decline. Barker III, V.L., Patterson Jr., P.W., Research Limitation and Future Mueller, G.C.: Organizational Suggestions causes and strategic consequences of the extent of top management The major research limita- team replacement during turnaround tion of this study is the lack of updated attempts. Journal of Management qualitative research aspects during a Studies 38(2), 235-270 (2001) firm’s turnaround situation. This empirical study’s data were obtained from Barker, V.L., Mone, M.A.: Retrench- Taiwan Economic Journal’s database, ment: Cause of turnaround or con- where the information is more objective, sequence of decline? Strategic

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REVITALIZATION STRATEGIES FOR ABANDONED SUGAR FACTORY SITES IN TAIWAN

Hsiang-Wen Li Doctoral Candidate Graduate School of Engineering Science and Technology National Yunlin University of Science &Technology, Taiwan R.O.C. [email protected]

Tsung-Chieh Tsai Associate Professor Department of Construction Engineering, National Yunlin University of Science &Technology, Taiwan R.O.C. [email protected]

Abstract

For a historical building, reuse is one design strategy within urban revitalization. Adap- tive reuse of industrial heritage is a more complicated issue. Resource management in the sphere of building and landscape that uses conservation criteria and processes outline as its first tool should be targeted. A particular industrial history can be told appropriately on the site itself without necessarily implying its literal representation. Many unused industrial buildings, such as mining sites, sugar factories, wine factories and electronic factories have involved in different types of redevelopment plan all over Taiwan. The present study evaluates design strategies that might use to reclaim abandoned sites in urban areas transforming them for the society and the environment. That strategy related to the socio-cultural character. The objective of the present work was to analyze the design strategies used in the revitalization of abandoned industrial areas using one specific case study: Ciaotou Creative Park in Taiwan.

Keywords: revitalization, adaptive reuse, abandoned sugar factory, strategies

(Editors Note: See pictures of the abandoned sugar factories at the end of this article.) 229 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

Introduction Beijing and High line in New York City played a very important role as a renais- The adaptive reuse of abandoned sance in their neighborhoods, and the industrial area buildings has received a city as a whole. They have become “a lot of attention in the past few years and symbol as well as a stimulus for urban, has become a major landscape related economic, social, and environmental problem (De Sousa, 2002). Since the change.” (Brown, 2001) Thus, a greater mid-1980s, policy makers and planners potential for urban-industrial wastelands have paid significantly more attention to and corresponding activities by local the sustainable development and have people has arisen all around the world. improved the quality of life in urban areas. The redevelopment of abandoned To develop innovative strategies industrial area sites, which are often lo- for abandoned industrial land was a main cated in the core sections of urban areas goal of city planners. Many conceptual or sites of high ecological value as rivers approaches aimed at providing the fol- are prime targets for urban revitalization lowing functions in the post-industrial (Brooks, 2006). urban landscape (Dettmar, 2005): • Compensation function for the In the past, industry often abandoned balance of nature without performing the appropriate revi- • Protection of species, biotopes, talization work. Today, with the in- and creation of a ‘preserve’ for endan- creased ability of perturbation that affect gered species Political-pedagogical large portions of the landscape, there is a function deep public concern that industry should • Experience of nature and open not be abandoned without performing space for town dwellers any revitalization work. New design • Preservation and transformation strategies to reclaim abandoned indus- of industrial-cultural landscapes trial sites have devised in recent years, • Variety and beauty focusing on the sustainability, quality • Ecology and aesthetics and multi-functionality of the space, • Process observation with attention to historic, socioeconomic and cultural aspects. The importance of abandoned industrial land as an abiotic and espe- In post-industrial city, “frozen land- cially as a biotic resource has demon- scapes” emerge because of far -reaching strated in several studies (Dettmar, structural changes to region that for- 2005). However, less knows about the merly dominated by heavy industry. other functions and their potential for Today, different creations of those aban- cultural activities of the local population. doned lands have used to drive the resto- ration of the degraded landscapes in cit- Recently many landscape archi- ies used to be the industrial heartland. tects have begun to look at the landscape Some extraordinary projects such as not only as a setting in which to inter- Emscher park in Ruhr , 798 art district in vene, inserting an indefinite variety of

230 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 objects, but as a tool through which to abandoned industrial areas, focusing on design and manipulate complex material. sites that incorporate a significant The understanding of the temporal and amount of public open space: Ciaotou dynamic character of any landscape and Creative Park (Taiwan, R.O.C.). design solutions, as well as a design process that facilitates a fair representa- Design strategies in sustainable land- tion of the existing attitudes towards and scape revitalization expectations of the site, is paramount for success (Langhorst, 2004). In order to create a successful and sustainable revitalization design, it is The landscape transforms into important to recognize and interpret the something different, a place sensitive to historic and cultural significance of the different transformations, which records landscape and to understand how “land- the movements and events that cross it. scape ecology and design can invent al- Artists were the first to begin to trans- ternative forms of relationships between form this sensitive surface, seeking a people, place, and cosmos. So that land- type of formal assimilation for everyday scape architectural projects become use. Architects, as a result, attempt to more about invention and programs define, using the same approach, a rather merely corrective measures of res- method capable of reacting and integrat- toration” (Corner, 1996). Any attempt to ing the life of man and the spaces that define principles for good design must protect him (De Sousa, 2002). embody the principles of sustainable development. Building design, landscape Rather than treating industrial design and urban design must bring to- area sites as problems, many cities have gether to deliver a more integrated, now come to recognize the several ad- skilled and effective design process. vantages that come from redeveloping such sites (Brooks, 2006; Thomas, According to Punter (2002), 2002). Pediaditi et al. (2006) emphasize landscape revitalization design should the need to adopt a holistic approach integrate five fundamental principles: when assessing sustainability by consid- protect and conserve quality landscapes; ering social, environmental and eco- develop a clear vision and strategy for an nomic issues. area; apply collaborative design principles; allow resources for long-term af- This paper focuses on the chang- tercare of new landscapes; enhance bio- ing of how local people perceive, adapt diversity, social stability and economic and use the new nature that arises on development. abandoned industrial land, especially the relationship between the cultural activity The industrial building revitaliza- and the place over time. This present tion design should integrate similar five work also analyzes one specific case that fundamental principles. First, perform represent different types of strategies well the functions for which they are re- that may be used in the revitalization of designed; Second, be long lasting and

231 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 adaptable to new uses; Third, respond the early 18th century. Taiwan’s sugar well to their surroundings and enhance farms and mills were small-scale opera- their context; Forth, have a visual coher- tions and continued to be, making it hard ence and create ‘delight’ for users and to keep up with industry pricing. The passers-by; Fifth, be sustainable – non southern sugar growing regions lagged polluting, energy efficient, easily acces- behind the northern rice growing regions sible and have a minimal environmental due to this lack of development. When impact (Punter, 2002). the Japanese asserted control Ciaotou Creative Park over the island in 1895, However, it is clear, that the they set to modernizing Taiwan’s sugar analysis and recovery of this landscape industry. Centered in the southern sugar constitutes an opportunity that tends to growing region, the Ciaotou Creative be lost in time, considering the growing Park was built in 1901 as Taiwan first urban pressure leading to the disappear- modern sugar refinery. Without mod- ance of various industrial infrastructures, ernization of the supply chain, Taiwan- some with heritage value and significant ese sugar was still not competitive on the relevance at local and national level, lit- world market and mostly sold duty-free tle has been done in order to conserve to Japan. In 1946, with return of sover- and rehabilitate (Loures and Panagopou- eignty, all of the various sugar compa- los, 2007). nies in operation merged to form the Taiwan Sugar Corporation. Sugar re- Socio-cultural character: the case study gained the top spot as Taiwan’s export in of Ciaotou Creative Park the ’50s and ’60s but then falling back as Taiwan developed manufacturing indus- The vision for Ciaotou Creative tries and became a less agrarian econ- Park revitalization project, Figure 1, is to omy, eventually leading to the closure of establish a new sustainable landscape the Ciaotou Creative Park in 1999. The built on the achievements of the past current incarnation of the Taiwan Sugar with innovations solutions. Whereas, Corporation (TaiSugar) is still in busi- figure 2 to 4 illustrates the outlook of the ness, but diversified into tourism, flori- Ciaotuo sugar factory area. culture, biotechnology, retail, and real estate. The park is part of a 2300-acre redevelopment, the so-called Kaohsiung The Ciao-Tou Sugar Factory, Sugar Cultural Park, carved from a for- located in Kaohsiung, has a complex that mer sugar refinery factory, and pieces of includes a production area (the factory), the larger site will commercially develop the storage area (the warehouses), ad- to help fund the park. The Dutch, who ministration building (offices), and a influenced the island during the 1630s, large complex of accommodations for primarily introduced sugar to Taiwan. both Japanese and Taiwanese factory Though the Dutch soon forced off the staff, including a school. It was desig- island, growth in sugar production con- nated as the fifth Cultural Landscape in tinued to grow eventually booming in 2007. The local society and the Taiwan

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Sugar Corporation chose to concentrate yond the boundaries of the region. It has their attention on the listed building for been mutually beneficial for commerce further adaptation as a museum and of- and conservation, entrepreneur and in- fices. Multifunctional and experimental dustrial heritage, as well as a collabora- site-based civic organizations and design tion between cross region resources and companies rose to the challenge to find the stakeholders for the sustainable use the potential of this area. The preserva- of industrial heritage. It represents a tion and adaptive reuse of residential classic case of the entrepreneur involved housing and the Guest House has been in heritage management and adaptive carried out to extend the scope of indus- reuse of residential housing whose suc- trial heritage resources, and an art gal- cess reveals the indecisiveness of the lery and venue for civic activities (auc- managing strategy of government. At the tion, workshop, brand shop, café, restau- other end of the Ciao-Tou factory area rant, community event, and summer are the preserved production facilities camp) have enlivened the rundown side and accompanying spaces, such as of- of the Ciao-Tou Sugar Factory. This is fices and the main factory building. This one example where heritage has been has become a museum of the sugar in- actively challenged to produce sustain- dustry, with additional exhibition spaces. able uses by entrepreneurs. The entre- However, the majority of the area has preneurs have introduced cultural con- been given over to the operational man- sumption into industrial heritage, leading agement of the site, and this has led to a to the realization of the recovered his- variety of functions and uses with very torical traces via different approaches, little connection between the individual for example the curatorial remit of the management of the eating places, one- galleries, on-site-conservation of lease off events, and shops. This has resulted area, catering facilities, and civic activi- in a series of functions that are irrelevant ties. Curatorial involvement from social to the historic and cultural past and that professionals in the Ciao-Tou Sugar Fac- are unique to this industrial heritage site tory has threatened the static attitude of (Lin, 2015). the ownership of Taiwan Sugar Corpora- tion (Lin, 2015). One of the main objectives of the Ciaotou Creative Park was the estab- Curatorial resources based cross- lishment of a project that integrates so- regionally have raised the identity and cial, economic, and environmental issues consciousness of local communities. in the development of a sustainable park Both Bywood and the Hangen Architec- (Czerniak, 2001). tural Studio as curatorial institutions are extending the resources industrial heri- Ciao-Tou Sugar Factory stopped tage can provide, looking at the cultural processing sugar in the mid 1980s. Even potential of heritage as a brand image though it was situated at the core of the rooted in the historical value of the past. developing transportation axis during the This has been assisted by the existing years of disuse, the meaning of the exis- transportation system that has links be- tence of the Ciao-Tou Sugar Factory site

233 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 also changed. The Ciao-Tou Sugar Fac- doned land. Potential funding sources tory and the surrounding areas went must identify. Abandoned land invento- through re-construction, including its ries need to establish in local and na- spatial form which shifted dramatically tional level and used to find where and the abandoned residential houses greening opportunities exist. provide urgent scope for reuse. The local NGO on the culture and history of Ciao- The case study presented make it Tou, the Ciao-Tou Society of Cultural obvious that the redevelopment of indus- and History (CTS) was established to trial area sites constitutes a valuable op- link heritage resources and the local portunity for increasing green spaces in community as early as 1994, before urban areas and, thus, bringing about manufacturing actually stopped (Lin, benefits such as soil quality improve- 2015). ment, habitat creation, recreational opportunity enhancement and economic Developing the architectural ap- revitalization of neighborhoods. Diverse proach, particular emphasis has given to design strategies should use in revitaliza- innovation in design and environmental tion of abandoned industrial areas ac- sustainability, together with wider re- cording to their potential, but independ- generation benefits, linking convincingly ently from the design strategy that may the terms city, landscape and architec- be used; the spirit of the place should be ture. Public participation played a cru- seen as the essential theoretical base for cial role in the success of the revitaliza- landscape revitalization allowing to tion project (De Sousa, 2003). Those strengthen the landscape most important project innovations suggest how it is aspects and to accomplish sustainable possible to reclaim abandoned land, development. minimizing the intervention costs, by creating socio-cultural conditions that For the renewal of industrial not only favor those spaces, but also re- parks in the future, the sustainable envi- inforce their sustainability. The Ciaotou ronmental development should be the Creative Park revitalization project is basic consideration. When it comes to one of the best examples of socio- the renewal policies and approaches, cultural design strategy in landscape re- there are development aspirations such vitalization. as the sustainable use of land, the strengthening of resource recycling and Conclusion recovering, and the enhancement of promotion of green energy industries It can conclude that the involve- such that more efforts of sustainable opment of communities in the whole rede- eration can devote to land and environ- velopment process is crucial, in both the ment during industrial development. short and long term. Municipal departments implicated in the administration of This research focused on the de- parklands should consult and involve bate over the transformation of sugar directly in all greening projects of aban- factories built in the colonial period in

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Taiwan and how they function in new trial heritage, it is necessary to continue ways as creative cultural parks. This can to examine issues of historic value and be achieved by interweaving local re- local resources. This should focus on sources with the physical industrial heri- their role and characteristics as well as tage properties and creative industry in conserve the value of industrial past, so order to promote the sustainable and that the enhancement and production of creative life of the industrial heritage. To creative use will be connected with local conclude, with the problems currently community (Lin, 2015). being faced in adaptive reuse for indus-

References ture prospects. Land Use Policy, 19: 297–309. Brooks, C.N. (2006) A model for redeveloping complex, highly con- De Sousa, C.A. (2003) Turning brown- taminated sites the Industriplex fields into green space in the City Site in Woburn, Massachusetts. of Toronto. Landscape and Urban WIT Transactions on Ecology Planning 62: 181–198. and the Environment, 94: 229- 238. Dettmar, J. (2005) Nature-dominated Development in Urban Land- Brown, B. (2001). Reconstructing the scape, in: Institute for Landscape Ruhrgebiet The 200-square-mile Architecture, E. Z. (eds.) Land- Emscher Landscape Park scape Architecture in Mutation – emerges from the industrial ruins essays on urban landscape, pp. of the Ruhr River Valley in Ger- 79–97. Zürich, gta Verlag. many. Landscape architecture, 91(4), 66-75. Langhorst, J. (2004) Rising from Ru- ins: Post-industrial Sites between Corner J. (1996) Ecology and land- Abandonment and Engagement. scapes as agents of creativity. In Proc. of the Conf. Tourist Ecological design and Planning, Places/Theories and Strategies. George Thompson and Frederic Edinburgh, Scotland. Steiner, eds), pp: 82-83, Johan Wiley & Sons, Inc. Lang, P. (2001) Perspective. Land- scape Architecture Magazine, 91: Czerniak, J. (2001) Downsview Park 75. Toronto. Prestel and Harvard Design School. Latz, P. (1992) Duisburg North Land- scape Park. Anthos, 3: 27-32. De Sousa, C.A. (2002) Brownfield redevelopment in Toronto: an Lin, H.W. (2015) Sweetened Imposi- eamination of past trends and fu tion: Re-examining the Dilemma

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of the Adaptive Reuse of Former Sugar Factory Sites as Cultural Creative Parks in Taiwan. IJCCI volume 2, issue 2, March 2015

Loures L. and Panagopoulos T. (2007) Sustainable revitalization of industrial areas in urban landscapes. WIT Transactions on Environment and Development, pp. 791-800.

Lyle, J. T. (1985) Design For Human Ecosystem, Van Nostrand Rein- hold, Comp Ltd.

Pediaditi K., Wehrmeyer W. & Burn- ingham K. (2006) Brownfield sites turned green: realizing sustainability in urban revival. WIT Transactions on Ecology and the Environment, 94: 131-140.

Punter, J. (2002) The Welsh Develop- ment Agency Design Guide – Its role in raising standards in Wales. Welsh Development Agency, Cardiff.

Thomas M.R. (2002) A GIS based decision support system for brownfield redevelopment. Landscape and Urban Planning, 58: 7-23.

Weilacher, U. (1999) Between Land- scape Architecture and Land Art. Birkhauser Verlag, Basel.

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A century-old Banyan tree provides open bomb shelter space shelter

Red brick water tower Bridge first sugar mill village.

Chungshan Hall ice cream sale Holiday plazza crowd Figure 4. Ciaotuo sugar factory area map No.3 Data source：http://tw.myblog.yahoo.com/jw!LSOKnM2cFQAzLNqQTSDE/article?mid=11551

237 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

THE STUDY OF THE EMPATHY ITEMS IN SERVQUAL SCALE FOR MEASUREMENT INVARIANCE ACROSS GENDER

Ling-Chuan Huang Doctor Candidate Da Yah University, Taiwan, R.O.C. [email protected]

Dr. Yun-Chin Huang Assistant Professor Taipei City University of Science & Technology, Taiwan, R.O.C. [email protected]

Dr. Chao-Yang Hung Associate Professor Da Yah University, Taiwan, R.O.C. [email protected]

Dr. Yu-Jia Hu Assistant Professor Lan Yang Institute of Technology, Taiwan, R.O.C. [email protected]

Abstract

The most well-known SERVQUAL Scale has been recognized a successful instrument for evaluating service quality in current marketing research. However, the measurement invariance issues in SERVQUAL have received very few considerations. Some studies also suggested there were the significant relationship between gender issue and perception of service quality. The main purpose of this quantitative study was to test the measurement invariance for the part of Empathy in SERVQUAL Scale for retail chain stores business in Taiwan. The sample in this research was selected as customers from four retail chain stores in Taiwan, resulting in 200 individual surveys for analysis. The results indicated the Taiwan version of Empathy 3-item scale achieved strict measurement in-

238 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 variance across gender groups, while the models of factor loading, structural covariances and measurement residuals across gender were invariant. Finally, this research generated the proposals for retail chain stores business in Taiwan and recommended future scholar studies.

Key Words: service quality, SERVQUAL, empathy, measurement invariance, retail chain stores, Taiwan

quality through their effect on consumer Research Background and Theoretical awareness of current concert and discon- Foundation firmation. Even though this questionnaire has applied broadly to perform Deming (1981) and Garvin studies for service quality in industries (1987) identified the service quality was or countries, very few studies have ex- the perception of individual satisfaction amined the issues of the measurement for matching the customers’ demand. invariance for SERVQUAL Scale. In Garvin (1987) also indicated the con- addition, numerous researchers (Baird sumer’s perception of service quality 1976, Blustain 2000, Canary and Hause was recognized by subjective judgment 1993) have suggested theories for gender which was different to the perception of difference in numerous facets on psy- tangible product management. The well chology and manner, such as social tal- known SERVQUAL Scales was created ents, communications, work approaches by Parasuraman, Zeithaml, and Berry and so on. (1988). This questionnaire tries to explore the differences between anticipa- People also have paid much at- tion and awareness on a number of par- tention on the issue of the increasing ticular criteria in service quality. The woman buying power for those years, SERVQUAL Scales suggested five di- and the studies for gender differences in mensions to evaluating the perception of consumer behavior have become impor- service quality, such as tangible, respon- tant topic for current academy researcher siveness, reliability, empathy, and assur- and marketing administrators in busi- ance. Since service quality has been de- ness. Research by Meyers-Levy and scribed as the critical factor to sustain Maheswarm (1991), and Mitchell and the proficiency for business develop- Walsh (2004) revealed gender differ- ment, the SERVQUAL has become the ences will lead to different buyer behav- most popular instrument for measuring iors. Mitchell and Walsh (2004) also the perception of service quality. Bolton claimed gender differences resulted in and Drew (1991) developed a model to different decision making processes. test the impacts of a service change on These theories and studies suggested that consumer attitudes about service quality. there was the significant relationship between gender and service quality. Hu The results revealed service (2014) conducted a study to examine the changes were indentified to powerfully measurement invariance across gender in impact consumer evaluations if service the version of the part of Tangibles in 239 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 SERVQUAL Scale for retail chain stores tor loadings, (b) factor covariances, and business in Taiwan. The results indicated (c) structural regression paths. Following the Taiwan version of Tangible 5-item this concept, the researcher proposed scale only achieved partial measurement three hypotheses as follows. invariance. However, in another study, Hu, Liu, Su and Huang (2016) con- Hypothesis 1: Assuming measurement ducted a research to examine the meas- weights for three empathy items urement invariance across gender in the are invariant for gender groups. version of the part of Responsiveness in

SERVQUAL Scale. The results indicated the Responsiveness 5-item scale Hypothesis 2: Assuming structural co- achieved strict measurement invariance variance for three empathy items are across gender. These results explained invariant for gender groups. the measurement invariance across gender for SERVQUAL Scale maybe differently depends on individual items. Hypothesis 3: Assuming measurement Current researches need to develop more residuals for three empathy items studies to verify how measurement in- are invariant for gender groups. variance across gender issues effect the SERVQUAL Scale. Therefore, this research expanded previous research and Methodology applied SEM approach to evaluate the measurement invariance across gender The three items of Empathy in for the component of Empathy in this research were little modified from SERVQUAL Scale in chain restaurant the SERVQUAL Scales (Parasuraman et business of Taiwan. al, 1988). Following Five Likert Scale:

strongly disagree, disagree, neutral, Research Purposes and Hypotheses agree, strongly agree, the five items

were: (a). Service person won’t ignore Following the theory concept as my request even though in busy status. stated, the purposes and the significance b). Service person take care customers’ for this research were: (a) to examine the interest first., c). Service person measurement invariance for the part of understand the needs of customers. Pre- Empathy in SERVQUAL Scale in retail vious studies by Hu (2011, 2012, and chain stores business of Taiwan, (b) to 2013) have demonstrated the validity generate the proposals for managerial and reliability for this scale were reason- applications of retail chain stores busi- able and acceptable. The customers from ness, and (c) to suggest areas for future four retail chain stores in the Kaohsiung scholarly inquiry. The proposed methods city of south Taiwan attended this re- for assessing measurement invariance search. The pretest was conducted with across groups differ from researchers to Item Analysis in 50 samples. The re- researchers (Vandenberg & Lance, searcher applied the method of random 2000). Byrne (2010) suggested the tests sampling. Each store randomly invited for multigroup invariance were: (a) fac- 240 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 volunteer customers who shopping in Analysis of Results stores to participate the questionnaire survey. The total number of valid re- The Structure Equating Modeling sponses was 200 (not including 15 inva- (SEM) by Analysis of Moment Structure lid response), providing an adjusted re- (AMOS) software was applied to test the sponse rate of 93%. model structure and hypotheses in this study. The factor analysis for three em- Jöreskog (1971) recommended pathy items for males and females were the first step to measure the equality of showed as Figure One and Figure Two. covariance structure was the test of null The results of multi-sample analysis for hypothesis. The groups were considered the unconstrained and the three con- to have equivalent covariance structures strained models were listed as Table one. if H0 cannot be rejected. Jöreskog (1971) The unconstrained model showed an ac- also suggested the group data should ceptable baseline model for both males perform the signal group tests first as and females. The multi-sample analysis group data were considered to have also showed the indexes of model fit for equal covariance indexes. Thus, con- three constrained models (measure ducting a configurable test was neces- weights, structural covariances, and sary to verify if males and females measurement residuals) across gender, shared the similar indicators for model and these indexes indicated the three fit. If this occurred, configurable invari- constrained models were accepted. ance would exist and follow up invariance analyses were unnecessary. How- The test results for nested model ever, Marsh and Hocevar (1985), and comparisons were showed in Table Two. Byrne, Shavelson, and Muthén (1989) The χ2 difference test (χ2(4)= .030, argued the strict invariance requirement p>.05) between baseline model and con- was typically hard to satisfy. If the test- strained model for measurement weights ing results cannot meet the strict invari- was not significant, indicating the factor ance requirements, a small portion of loadings across gender in this scale were non-invariant items will not affect the invariant, and Hypothesis 1 was not re- comparisons for all groups in invariant jected. In addition, the result of the χ2 measurement level, and the researchers difference test between baseline model were not necessary to conduct individual and constrained model for structural co item test. Moreover, Cheung and Rens- variances (χ2(2)=.882, p>.05) was not vold (2002) suggested other statistic significant, indicating that, aside from methods to test the between-group in- the factor loadings, structural co vari- variance of CFA models, such as the sta- ances of this scale was invariant across tistics of △CFI, △Gamma hat, and the gender and Hypothesis 2 was not re- △McDonald’s NCI criteria were util- jected. Finally, the result of χ2 difference ized. test for measurement residuals (χ2 (6) = 2.140, p>.05) was not significant, indicating the

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Figure 2. Factor Analysis for Empathy Items for Female Group

Table 1. Model Fit Indexes for Unconstrained and Constrained Model

Model χ2 DF P χ2/DF GFI AGFI Unconstrained .000 0 1.000 Measurement weights .030 4 1.000 .007 1.000 1.000 Structural covariances .912 6 .989 .152 .998 .994 Measurement residuals 3.053 12 .995 .254 .993 .990

242 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 Table 2. Nested Model Comparisons

Model DF χ2 P Measurement weights 4 .030 1.000 Structural covariances 2 .882 .643 Measurement residuals 6 2.140 .906

measurement residuals across gender in suggested gender differences will lead to this scale were invariant, too. Therefore, dissimilar buyer actions. Although this all three null hypotheses were not re- model was fully measurement invari- jected in this research. ance, Milfont and Fischer (2010) claimed full measurement invariance is Conclusions and Suggestions questionable to hold in reality.

The results indicated this Taiwan Based on the research by Hu version of Empathy 3-item scales of (2014), the part of Tangibles in SERV- SERVQUAL Questionnaire achieved QUAL Questionnaire is partial meas- strict measurement invariance across the urement invariance across the gender. gender, including invariance of factor Those studies revealed the researcher loadings, structural covariances and should keep strict manner to conduct re- measurement residuals. The results were search for multiple items in question- consistent with the study by Hu et al. naire for the issues of measurement in- (2016) and indicated the Responsiveness variance across group. And this study 5-item scale achieved strict measurement suggested the part of Empathy in SERV- invariance across gender. However, the QUAL Scale was measurement invari- results did not consist with the views of ance across genders. Scholars may apply Meyers-Levy and Maheswarm (1991), these items for conducting studies for and Mitchell and Walsh (2004) service industry, specially exploring the service quality issues for the retail chain store business in Taiwan.

terly Journal of Speech, 62, 179- References 192.

Baird, J. E., Jr. (1976). Sex differences Blustain, S. (2000). The new gender in group communication: A re- wars. Psychology Today, 33, 1-5. view of relevant research. Quar

243 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 Bolton, R. N., & Drew, J. H. (1991). A Hu, Y. J., Liu, F. M., Su, L. C., & longitudinal analysis of the impact Huang, J. H. (2016). Examining of service changes on consumer the measurement invariance attitudes. Journal of Marketing, 55(Jan), 1-9. across gender in the version of the part of responsiveness in Byrne, B. M. (2010). Structural Equa- SERVQUAL scale in retail chain tion Modeling With AMOS: Basic stores business of Taiwan. Inter- Concepts, Applications, and Pro- national Journal of Organiza- gramming, 2 Ed, Routledge, Tay- tional Innovation, 9(1), 1-7. lor & Francis Group, NJ. 197-200. Hu, Y. J. (2014). Assessing measure- Byrne, B. M., Shavelson, R. J., & ment invariance across gender in Muthén, B. (1989). Testing for the the version of the part of tangibles equivalence of factor covariance in Servqual scale for retail chain and mean structures: The issue of stores business in Taiwan. Inter- partial measurement invariance. national Journal of Organiza- Psychological Bulletin, 105, 456– tional Innovation, 7(1), 181-187. 466. Hu, Y. J. (2013). Using structural equa- Canary, J. D., & Hause, S. K. (1993). Is tion modeling to evaluate a con- there any reason to research sex sumer behavior model: the case of differences in communication? retail chain stores in Taiwan. In- Communication Quarterly, 41(2), ternational Journal of Organiza- 129-144. tional Innovation, 6(1), 121-127.

Cheung, G. W., & Rensvold, R. B. (2002). Evaluating goodness-of-fit Hu, Y. J. (2012). The moderating effect indexes for testing measurement of brand equity and the mediating invariance. Structural Equation effect of marketing mix strategy Modeling, 9, 233-255. on the relationship between service quality and customer loyalty: Deming, W. E. (1981). Improvement of The case of retail chain stores in quality and productivity through Taiwan. International Journal of action by management. National Organizational Innovation, 5(1), Productivity Review, 11, 12-22. 155-162.

Garvin, D. A. (1987). Competing on the eight dimensions of quality. Har- Hu, Y. J. (2011). How Brand Equity, vard Business Review, 65(Nov- Marketing Mix Strategy and Ser- Dec), 101-109. vice Quality Affect Customer Loyalty: The Case of Retail Chain Stores in Taiwan. International 244 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017 Journal of Organizational Innova- Vandenberg, R. J., & Lance, C. E. tion, 4(1), 59-73. (2000). A Review and synthesis of the measurement invariance lit-

erature: Suggestions, practices Jöreskog, K.G. (1971). Simultaneous and recommendations for organ- factor analysis in several popula- izational research. Organizational tions. Psychometrika, 36, 409– Research Methods, 3, 4-70. 426.

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A DESCRIPTIVE STUDY OF HEALTH BEHAVIORS IN TAIWAN’S SUBSTITUTE MILITARY SERVICE

Hsiang-Ping Wang Department of Nursing, Hung Kuang University, Taichung, Taiwan R.O.C.

Yao-Hsu Tsai Department of Hospitality Management, Chung Hua University, Taiwan R.O.C. [email protected]

Lei Pei* Department of Hospitality Management, Chung Hua University, Taiwan R.O.C. [email protected]

Abstract

In Taiwan, young men are required to serve compulsory military services. In 2000, after reviewing various civilian service systems of European countries, Taiwan developed a Substitute Military Service for those compulsory solders who either have health problems or special family conditions. One of the criteria for entering this system is the Body Mass Index (BMI) of physical status. The influence of BMI on health status has been studied extensively. However, since the implementation of this Substitute Military Sys- tem, there has been no research on the health status of this group of young men. Hence, the purpose of this study was to investigate the health behaviors of the young men in the Substitute Military System in Taiwan. This paper utilized the physical examination results of these young men to collect information on their heights and weights. In addition, a questionnaire was distributed. A total of 1,643 questionnaires were collected. BMI, morbidity, substance abuse, and self-evaluation of health were analyzed. Health behaviors, including exercise, smoking, and betel nuts chewing, and health status satisfaction were further examined. The results of this research will provide information on the health management and improvement programs.

Keywords: Health Behaviors. Taiwan’s Substitute Military Service.

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Introduction behavior patterns called lifestyle. A study indicated the positive correlation Young men in Taiwan are required between health concept and healthy life- to serve compulsory military service. For style among college students. Huang soldiers with either health problems or (1998) discussed the prediction factors special family conditions, Taiwan devel- in promoting healthy lifestyle among oped a Substitute Military Service based college students in the general south area on a 2000 review of European civilian and found that health behavior self- service systems. One of the criteria for efficacy, health concept, and gender entering this system is the body mass were factors that predict health- promot- index (BMI) within 29-32. ing lifestyles. Many studies conducted in developing countries showed positive The influence of BMI on health correlation between obesity and socio- status has been studied extensively. economic variables. Tsou (2003) con- However, since the implementation of ducted estimates of obesity among men this Substitute Military System, no re- and women and discovered that age and search has examined the health status of education level were two significant this group of young men. Hence, the variables in women, whereas in men, purpose of this study was to investigate their significance was not obvious. the health status of young men in the Substitute Military System in Taiwan. In In a study to determine if people in particular, we asked the following Taiwan had a correct self-perception of healthy behaviors. The results of this body type, Chen et al. (2003) found that research will provide information for according to BMI measurements, men health management and improvement who participated in health examinations programs. had a higher prevalence of obesity than women. However, based on waist cir- Literature Review cumference, women had a higher prevalence of obesity than men. Chen et al. Healthy behaviors are those per- recommended using a combined meas- formed by a person without any illness urement of BMI and waist circumfer- and prevent disease. The health behav- ence, instead of a single measurement, to iors (Liou & Lu, 2006) can be classified properly assess obesity and body status. into three groups: (1) daily habits, in- The ideal BMI of Taiwanese people is cluding smoking, drinking alcohol, eat- 22 (Department of Health, R.O.C., ing fruits and vegetables, and exercise, 2008). Thus, a Taiwanese person can (2) using relevant health services, in- determine ideal body weight by squaring cluding medical examination, cervical their height and multiplying by 22. One Pap smear test, cancer screening tests, is overweight if the body weight exceeds etc., and (3) behaviors under special cir- 10% of the ideal body weight cumstances such as not fastening the (24.2

lation of adult behavior, and the desire of Obesity is an important issue reflecting certain social status. worldwide because it has been consis- tently and strongly associated with coro- In Taiwan, more than 10% of teen- nary heart disease, stroke, diabetes, and age students have once chewed betel malignant tumors. The prevalence rates nuts. Betel nut chewing is slowly invad- of obesity and overweight in Taiwanese ing campuses, and the age of betel nut men are 10.0% and 22.8%, respectively chewers is dropping. According to the (Department of Health, 2008). Possible 2007 report by the Department of causes of obesity include excessive calo- Health, R.O.C. on the ten common rie intake, lack of exercise, genetics, and causes of death, the number of men who socio-economic status. Most smokers of die of oral cavity cancer rose gradually. light cigarette brands are men (90.8%), In 2007, oral cavity ranks number five of 51.7% of whom are between 35 to 64 the ten common causes of death. As the years old (Taiwan Bureau of Health statistics revealed, the number of oral Promotion, 2008). A relatively large part cavity cancer deaths had increased from of the 51.7 % comprises people with at 3.9% to 5.8% of total cancer deaths, and least a college education (22.8%) and what is noteworthy is that the number of those with a high school diploma (6.6%). deaths per 100,000 people had climbed In terms of health condition and smoking from 9 to 9.6. (Department of Health, characteristics, 90.9% of smokers of R.O. C., 2007) While deaths of other light cigarette brands believed they en- forms of cancer occur in elderly people, joyed favorable health (Lin, 2007). a high percentage of oral cavity cancer Many of them had smoked into their deaths are among people who age from adult years ever since elementary school 25 to 45. or high school. When asked to reflect on why they smoked, 70.9% said they In terms of sports and recreation, in smoked because they felt lonely and 2001, estimated 21.0% of the adult bored, and 58.3% said they smoked population in Taiwan exercised regu- when they were with friends (Huang, larly, 28.6 % exercised irregularly and 2003). Smoking not only is one of the 50.3% were never engaged in any kind common causes of early onset and pre- of sports. 18.6% of the male population ventive diseases but also one of the had exercised regularly before 25. And causes of lung and other forms of cancer men aged between 25 and 44, preoccu- as well as coronary heart disease. pied with building a career and starting a family, had the lowest participation rate In North America, smoking in- in any kind of sports. Based on the 2002 creases mortality rate of early onset dis- report of the Bureau of Health Promo- eases by 20 to 60%, those who had been tion, R.O.C., the number one reason for chronically exposed to tobacco smoke not exercising among men and women had a higher chance of contracting lung was “lack of time,” followed by reasons cancer, and the causes of smoking such as “physical strength and endur- among youngsters included constant ex- ance,” “work as exercise,” and “family posure to tobacco commercials, the emu- factors.” Many studies have shown that 248 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

physical activities not only can improve healthy habits such as smoking, drinking the quality of life but also have positive or drug abuse are formed. Many scholars correlation to the physiological health. have agreed that health promotion is a Physiologically, hose who exercise regu- combination of general concepts which larly have enjoyed far better health than are influenced by factors such as cogni- those who don’t. (Lin et al., 2007) Years tive styles, family, economy, society, of unhealthy behavior has resulted in the and culture (Li, 2004). As for personal increasing incidence of chronic diseases. characteristics, experience, and socio- In the 1970s, researchers had found un- demographic features, they include gen- healthy behavior led to chronic diseases, der, age, academic performance, living and in Taiwan, many of them are closely condition, family social status, and self- related to long-term habits of smoking, perceived health status. Life experience alcohol use and low exercise frequency. consists of family illness (parents, Smoking, alcohol use and betel nut grandparents or siblings with heart dis- chewing—all of them are substance use ease, diabetes or high blood pressure), behaviors—are the three most common family members hospitalized in the past dangerous health behaviors in Taiwan as three years and the use of health-related well as the main causes of mortality and resources on campus. Synthetically incidence of diseases. These three sub- speaking, health perception evaluation stance use also showed signs of cluster- looks at four aspects: clinical health con- ing (Chen et al., 2003) In other words, cept, role performance, adaptive health many of those who smoke also habitu- behavior, and feelings of euphoria and ally drink alcohol and chew betel nuts. well-being. Each aspect has the follow- These unhealthy hobbies are the main ing components: (1) clinical health con- causes of many preventive and early on- cept, (2) role performance health, 3) set diseases. Exercise is an energizing, adaptive health, and (4) feelings of positive and beneficial health behavior euphoria and well-being. Clinical health which has been shown to help lower concept refers to no symptoms of illness, blood pressure, reduce the incidence of no need for a doctor’s appointment, no high blood pressure, and coronary heart need to use any medication, and no signs disease (Chen et al., 2003). Health- of any mental or physical discomfort. promoting programs are the major strategy to prevent chronic disease, and Role performance health means the moderate exercise can not only increase ability to perform daily tasks, to live a coronary blood flow volume, cardiac creative life, to achieve one’s goals, to output, muscle tone, immunity but also live to one’s satisfaction, and to take reduce stress, build confidence, stabilize daily responsibility for oneself as a fam- emotions, and improve the quality of ily member, a friend, and an employee. life. Adaptive health refers to the ability to adapt to changes in life and in one’s sur- Substitute Service draftees, who are roundings, to deal with stress and pres- still in their early twenties, often resort sure, and to know one’s limits and adapt to negative ways to deal with their stress to circumstances. Feelings of euphoria and pressure, and consequently, un- and well-being mean a sense of well- 249 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

being and of living a solid and fulfilled were unmarried, 1.4% were married, and life, high anticipation for the coming of 17.4% were single. With reference to each new day, the ability to reach one’s occupation, 14.6% of the interviewed highest potential, the ability to behave in were unemployed and 40.3% were stu- a way that meets one’s expectations, dents, who were the majority among the physical and mental health in optimal subjects. The bulk of the study subjects condition, the ability to continue to of the current study were newly gradu- learn, the ability to think and handle ates; as a result, the result also focused problems and challenges with maturity, on the unemployed and students. and willingness to share and to live in harmony with others. Results

Risky health behaviors can be di- BMI and Health Condition vided into three categories: (1) accident injuries (driving without buckling up, The largest proportion of study sub- riding with a drunk driver, running jects was overweight (based on BMI, through red lights, and riding a motorcy- 45.8 %), with 32% underweight, and cle with a helmet); (2) alcohol and inap- 22.2% normal. The prevalence of over- propriate substance use (smoking, drink- weight in our sample was 13% higher ing, using substances such as ampheta- than the reference of 32.8%. This dis- mines and Ecstasy); and (3) dietary be- crepancy is due to our subjects being haviors (eating regular meals, a daily Substitute Service draftees, who were balanced in-take of items from five ma- assigned to this service exactly because jor food groups, and avoiding junk food their health status was inferior, account- such as desserts, cake, and chips). ing for their having a higher BMI.

Methodology Correlation was also found among education level, health condition self- This study utilized the physical ex- evaluation, health satisfaction, and peer amination results of these young men to comparison of health condition in differ- collect information on their heights and ent demographic characteristics. Regard- weights in 2009 to 2010. A question- ing education level, the higher the edu- naire was distributed. A total of 1,643 cation level was, the higher percentage questionnaires were collected, the major- of normal BMIs there was. The percent- ity (58.4%) of those interview aged be- age of each education level is as follows: tween 21 and 25, and the second largest 0% among the illiterate, 0.3% among group (33.7%) aged between 18 and 20. those with elementary education, 7.5% In terms of education level, 0.1% was with junior high education, 25.1% with illiterate, 0.2% had elementary educa- senior high education, 45.7% with col- tion, 12.1% had junior high education, lege education, and 21.4% with post- 35.7% had senior high education, 40.7% graduate education. The data indicated had college education, and 11.1% had that the higher education level a subject post-graduate education. With regard to had, the more equipped the subject was marital status, 81.2 % of the subjects with health-related knowledge and in- 250 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

formation and the better judgment the and were ok with their health. This result subject was capable of making pertain- is the same as that of other studies being to medical care and related informa- cause the study subjects were all adoles- tion so as to make decisions accordingly cents, whose health condition was excel- to promote health. In terms of self- lent and most of whom were free of any evaluation, it showed that in self- illnesses and as a result the self- evaluation, most of the subjects who perceived health status was better. considered their health condition good, Among the Substitute Services draftees, believed they had a very similar health 32.0% had an underweight BMI, 22.2 % condition when compared with peers, normal, and 45.8% overweight.

Table 1. Cross-analysis of the health self-evaluation and BMI BMI Underweight Normal Overweight Good 14.6 17.2 11.5 Self-evaluation Average 67.1 65.7 64.8 Poorer 18.3 17.2 23.7 Better 3.3 4.7 3.6 Peer comparison Average 69.9 73.7 63.4 Poorer 26.8 21.6 33.0 Satisfied 15.7 18.9 12.1 Health satisfaction Average 61.6 60.8 60.6 Unsatisfied 22.6 20.3 27.3

Note: Unit: Percentage.

Table 1 shows a cross analysis of Among those with an under- health condition self-evaluation and weight BMI, 3.3% considered their BMI. Among those who had an under- health to be better than their peers, weight BMI, 16.4% of them perceived 69.9% neither better nor poorer and their health as good, 67.1% average and 26.8% poorer. Among those with a nor- 18.3% poor. Among those who had a mal BMI, 4.7% considered their health normal BMI, 17.2% perceived their condition better than their peers, 73.7% health as good, 65.7% average and neither better nor poorer and 21.6% 17.2% poor, whereas among those who poorer while among those with an over- had an overweight BMI, 11.5% of them weight BMI, 3.6% considered their perceived their health as good, 64.8% health better than their peers, 63.4% nei- average and 23.7% poor. It can be de- ther better nor poorer and 33% poorer. In duced that regardless of BMI, the major- a nutshell, regardless of BMI, more than ity of the Substitute Services draftees half of Substitute Services draftees, evaluated their health as average and the compared with their peers, considered second highest percentage of them poor. their health average. 15.7% of those with an underweight BMI were satisfied

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with their health, 61.6% found their who did not engage in alcohol abuse be- health to be average, and 22.6% were havior, none of them was illiterate, 0.1% unsatisfied. Among those with a normal had an elementary education, 9.4% had a BMI, 18.9% were satisfied with their junior high education, 33.7% had a sen- health, 60.8% found their health to be ior high education, 44.1% had a college average, and 20.3% were unsatisfied, education and 12.5 % had a post- gradu- while 12.1% of those with overweight ate education. Among those who were BMI were satisfied with their health, engaged in alcohol abuse, 0.4% were 60.6% found their health to be average, illiterate, 0.9% had an elementary school and 27.3% were unsatisfied. As a whole, education, 27.9% had a junior high edu- Regardless of BMI, most of the subjects cation, 48.2% had a senior high educa- responded an average satisfaction with tion, 20.4% had a college education and their health. 2.2% had a post-graduate education. It can be deduced from Table 2 that the higher the education level is, the lower Factors of Health Behaviors the prevalence of alcohol abuse and the more highly personal health condition is Scholars also pointed out that smok- valued. Among the Substitute Services ing and drinking shows signs of cluster- draftees who did not engage in betel nut ing. (Chen et al., 2003) In other word, chewing behavior, none were illiterate, many of those who smoke also engage in o.3% had an elementary education, 9.4% drinking behavior. Change might take had a junior high education, 34.7% had a place as age increases; therefore, getting senior high education, 43.7% had a col- rid of unhealthy health behaviors is the lege education, and 12% had a post- best way to improve health condition. As graduate education. Among draftees who for substance abuse, among those who did not engage in betel nut chewing be- were engaged in substance abuse, a havior, more than half had a college much lower percentage were found ei- education, and the second largest group ther to have an average satisfaction with was those with a senior high education. their health or to be unsatisfied with Among draftees who were engaged in their health than those who did not en- betel nut chewing behavior, 0.9% was gage in substance use. This indicated illiterate, 45.3% had a junior high educa- that substance abuse does not increase tion, 48.7% had a senior high education health satisfaction. And in terms of exer- and 5.1% had a college education. This cise, those with higher exercise fre- shows those with a junior and senior quency were found less likely to be un- education had the highest prevalence of satisfied with their health; those who ex- betel nut chewing behavior. ercised one to two times per week were found to show the highest percentage of Once addicted to smoking, alcohol people who perceived their health as abuse, or betel nut chewing, one can good. soon be found addicted to all of the three behaviors. The earlier the engagement in Table 2 provides a cross analysis of any of these three behaviors takes place, education level and habits. Among those the harder it is to quit. Betel nut chewing 252 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

is also found to be addictive like tobacco unique part of Taiwanese culture. Be- and alcohol. (Huang et al., 1996) The cause of its detrimental impact on health, consumer group of tobacco, alcohol and further research on related factors of betel nuts has been expanding to include smoking, drinking, and betel nut chew- adolescent consumers. Among these ing behaviors is vitally necessary. three behaviors, betel nut chewing is

Table 2. Cross-analysis of the educational level and habit

Post gradu- Education level Illiterate Elementary Junior high Senior high College ate Alcohol NO 0 0.1 9.4 33.7 44.1 12.5 abuse YES 0.4 0.9 27.9 48.2 20.4 2.2 Betel nut NO 0.01 0.3 9.4 34.7 43.7 12.0 chewing YES 0.9 0.01 45.3 48.7 5.1 0.01 0 time 0.2 0.2 15.8 41.0 34.9 7.9 Exercise 1-2 0.01 0.2 7.7 28.7 48.6 14.8 frequency time 3-5 0.01 0.01 4.9 34.1 44.7 16.3 time >5 0.01 0.01 7.1 42.9 35.7 7.1 times Note: Unit: Percentage.

Table 3 provides a cross analysis 63.3% had an average satisfaction with of alcohol abuse, smoking, betel nut their health and 23.2% were unsatisfied. chewing and health self-evaluation. From Table 3, we can infer that engaged Among those who were not engaged in in smoking behavior or not, the majority smoking behavior, 14.7% perceived their of the draftees had an average satisfac- health as good, 65.7% average and tion with their health. 19.7% poor. Among those who were engaged in smoking behavior, 12.3% per- Among those who were not en- ceived their health as good, 65.6% aver- gaged in alcohol abuse behavior, 14.2% age and 22.1% poor. In another word, perceived their health as good, 65.7% engaged in smoking behavior or not, the average and 20.1% poor. Among those majority of the draftees perceived their who were engaged in alcohol abuse be- health as average and the second largest havior, 10.6% perceived their health as group perceived their health as poor. good, 65.9% average and 23.5% poor. Among those who were not engaged in Engaged in alcohol abuse or nor, the ma- smoking behavior, 15.6% were satisfied jority of the draftees perceived their with their health, 59.5% had an average health as average and the second largest satisfaction with their health and 25.0% group perceived their health as poor. were unsatisfied. Among those who Among those who were not engaged in were engaged in smoking behavior, alcohol abuse behavior, 15.3% were sat- 12.3% were satisfied with their health, isfied with their health, 60.3% had an

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Table 3. Cross-analysis of the health self-evaluation and alcohol abuse, smoking, betel nut chewing

Alcohol abuse NO YES Health condition Good 14.2 10.6 Average 65.7 65.9 Poor 20.1 23.5 Health satisfaction Satisfied 15.3 11.7 OK 60.3 65.0 Unsatisfied 24.4 23.3 Smoking NO YES Health condition Excellent 14.7 12.3 Good 65.7 65.6 Poor 19.7 22.1 Health satisfaction Satisfied 15.6 12.3 OK 59.5 63.3 Unsatisfied 25.0 23.2 Betel nut chewing NO YES Health condition Good 13.7 14.3 Average 66.4 58.0 Poor 19.9 27.7 Health satisfaction Satisfied 14.9 13.8 OK 60.6 64.7 Unsatisfied 24.5 21.6 Note: Unit: Percentage.

Table 4. Cross-analysis of the health exercise frequency, diseases and health condition

Exercise frequency 0 time 1-2 time 3-5 time >5 time Health condition Excellent 31.3 50.5 16.2 2.3 Good 52.9 38.9 7.3 0.9 Poor 72.0 25.2 2.7 0.01 Health Satisfaction Satisfied 38.8 44.3 13.9 3.0 Normal 52.6 40.1 6.6 0.7 Unsatisfied 66.1 28.2 5.7 0.01 The number of detected diseases None 1-2 type >3 types Health condition Excellent 86.0 13.5 0.5 Good 77.2 22.5 0.3 Poor 64.4 34.4 1.2 Health satisfaction Satisfied 86.5 12.7 0.8 Normal 78.4 21.4 0.2 Unsatisfied 62.5 36.5 1.0 BMI Underweight 81.0 18.8 0.2 Normal 73.0 26.2 0.8 Overweight 74.1 25.4 0.5 Note: Unit: Percentage.

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average satisfaction with their health and perceived their health condition as good, 24.4% were unsatisfied. Among those 31.3% were not engaged in any exercise, who were engaged in alcohol abuse be- 50.5% 1to 2 times a week, 16.2% 3 to 5 havior, 11.7% were satisfied with their times a week and 2.3% more than 6 health, 65.0% had an average satisfac- times a week. Among those who per- tion with their health and 23.3% were ceived their health as average, 38.9% unsatisfied. Thus, it can be inferred that exercised regularly 1 to 2 times a week, whether engaged in alcohol abuse be- 7.3% 3 to 5 times a week and 0.9% more havior or not, the majority of the draftees than 6 times a week, while, among those had an average satisfaction with their who perceived their health as poor, health and the second largest group were 66.1% were not engaged in any exercise, found unsatisfied with their health. 8.2% exercised 1 to 2 times a week and 5.7 % exercised 3 to 5 times a week and Among those who were not en- none exercised more than 6 times a gaged in betel nut chewing behavior, week. From Table 4, it can be concluded 13.7% perceived their health as good, that draftees who perceived their health 66.4% average and 19.9% poor while as good exercised regularly at least 1 to among those who were engaged in betel 2 times a week whereas the majority of nut chewing behavior, 14.3% perceived the draftees who perceived their health their health as good, 58.0% average and average or poor did not exercise at all. 27.7% poor. Hence, whether engaged in Among those who were satisfied with betel nut chewing behavior or not, the their health, 38.8% did not exercise at majority of the Substitute Services draft- all, 44.3% exercised regularly 1 to 2 ees perceived their health as average and times a week, 13.9% exercised regular 3 the second largest group perceived their to 5 times a week and 3% exercised health as poor. Among those who were more than 6 times a week. Among those not engaged in betel nut chewing behav- who had an average satisfaction with ior, 14.9% were satisfied with their their health, 52.6% did not exercise at health, 60.6% had an average satisfac- all,40.1% exercised regular 1 to 1 times tion with their health and 24.5% were a week, 6/6% exercised 3 to 5 times a unsatisfied whereas, among those who week and 0.7% exercised more than 6 were engaged in betel nut chewing be- times week, while among those who havior, 13.8% were satisfied with their were unsatisfied with their health, 66.1% health, 64.7% had an average satisfac- were not engaged in regular exercise at tion with their health and 21.6% were all, 8.2% exercised regularly 1 to 2 times unsatisfied. Therefore, it can be inferred a week, 5.7% exercised regularly 3 to 5 that whether engaged in betel nut chew- times a week and none exercised more ing behavior or not, most of the Substi- than 6 times a week. tute Services draftees had an average satisfaction with their health. Thus, it can be concluded that more than 40% of the Substitute Services Table 4 provides a cross analysis of draftees who were satisfied with their the health exercise frequency, diseases health were found to exercise regularly and health condition. Among those who at least 1 to 2 times a week, whereas

more than 50% those who were unsatis- more than half of the Substitute Services fied with their health did not exercise at draftees were satisfied with their health all. This showed that the draftees who and the majority of them did not contract were satisfied with their health exhibited any disease. However, the majority of better exercise habits. the draftees who were not satisfied with their health did not contract any disease Among those who perceived their either. This shows that with regard to health as good, 86.0% did not contract draftees who were unsatisfied with their any disease, 13.5% contracted 1 to 2 health, in addition to the number of de- types of diseases and 0.5% contracted tected diseases, more factors such as more than 3 types of diseases. Among mental health, lifestyle habits and physi- those who perceived their health as aver- cal constitution should be taken into age, 77.2% did not contract any disease, consideration (Lin and Lin, 2001). 22.5% contracted 1 to 2 types of diseases and 0.3% contracted more than 3 types Cross-analysis of BMI and the of diseases, while those who perceived number of detected diseases. Among the their health as poor, 64.4% did not con- Substitute Services draftees with an un- tract any diseases, 34.4% contracted 1 to derweight BMI, 81.0% did not contract 2 types of diseases and 1.2% contracted any disease, 18.8% contracted 1 to 2 more than 3 types of diseases. This types of diseases and 0.2% contracted showed that more than 70% of the draft- more than 3 types of diseases. Those ees who perceived their health as good with a normal BMI, 73% did not con- or average did not contact any disease tract any disease, 26.2% contracted 1 to and only 0.3% of them contracted more 2 types of diseases and 0.8% contracted than 3 types of diseases, whereas only more than 3 types of diseases, while 60% of the draftees who perceived their those with an overweight BMI, 74.1% health as poor did not contract any dis- did not contract any disease, 25.4% con- ease, but more than 10% of them contracted 1 to 2 types of diseases and 0.5% tracted more 3 types of diseases. Among contracted more than 3 types of diseases. those who were satisfied with their From table 4, it can be concluded that health, 86.5% did not contract any dis- the draftees with an overweight BMI ease, 12.7% contracted 1 to 2 types of were more susceptible to diseases than diseases and 0.8% contracted more than those with an underweight BMI. This 3 types of diseases. Among those who also shows that excessive amount of fat had an average satisfaction with their causes overweight which, in turn, causes health, 78.4% did not contract any dis- several diseases such as coronary heart ease, 21.4% contracted 1 to 2 types of disease, heart attack, high blood pres- diseases and 0.2% contracted more than sure, hyperlipidemia and arterial stiff- 3 types of diseases, while among those ness (Lin, 2001). who were unsatisfied with their health, 62.5% did not contract any disease, Discussion And Conclusion 36.5% contracted 1 to 2 types of diseases and 1.0% contracted more than 3 types With regard to smoking, 49.8% of of disease. Thus, we can conclude that the college students did not smoke ha- 256 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

bitually, and a significant correlation ing, and betel nut chewing. In another was found between education level and word, the subjects with college or above smoking behavior. In terms of drinking level of education showed a lower preva- behavior, 44.1% of the college students lence of these unhealthy health behav- were not engaged in habitual alcohol iors. Healthy health behavior like exer- use, and a significant correlation was cise also notably influenced Substitute found between the subjects’ education Services draftees’ health status: those level, marital status, as well as voca- who exercise more frequently on a tional and financial status and their weekly basis displayed higher personal drinking behavior. That is, men with health satisfaction and a lower preva- high school or above level of education lence of smoking, drinking and betel nut showed a higher percentage of alcohol chewing. use. As for betel nut chewing behavior, 43.7% of the college students were not Data was collected when Substitute engaged in habitual betel nut chewing, Services draftees were having their and education level caused a significant physical examinations; therefore, the difference in betel nut chewing behavior: study results do not apply to professional the subjects with high school level of soldiers and no inference can be made education had a higher percentage of be- about other draftees’ health behavior and tel nut chewing behavior. With reference health status. The results show the corre- to exercise behavior, 48.6% of the col- lations among demographic characteris- lege students exercised 0-2 times every tics, Substitute Services draftees’ health week, and a higher percentage of exer- behavior and health status, but no direct cise behavior was found in the subjects cause-and-effect relationship was found. whose BMI indicated overweight. Some discrepancies were found in the ratio of the variables in demographic The difference of age, education characteristics such as age and education level, marital status, occupation and the level. It is suggested that in the future number of chronic diseases made a sig- studies, cognitive behavior and cognitive nificant difference in terms of betel nut factor should be measured. For future chewing, exercise, and health status. A research related to Substitute Service further analysis by taking into account draftees, studies can be done compare demographic characteristics, the number the different military services, different of chronic diseases and health behavior regions, or the differences before and yielded the following result: a significant after service. This study found that difference was found between body health behavior is the most important function and demographic characteristics factor among Substitute Services draft- such as gender, age, education level and ees; therefore, this direction is worth marital status, the number of chronic pursuing further in future research. diseases, and exercise. As adolescence is a critical stage dur- By and large, education level made ing which self-concept is developed and an obvious difference in unhealthy good lifestyle habits are built, health be- health behaviors such as smoking, drink- havior related courses as well stress 257 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

management should be promoted at References school. In addition, it is much easier to get rid of bad habits during adolescence Chen, T.L., Lai, S.W., Lin, W.Y., Liu, than the middle age period. Therefore, to C.S. & Chen, W.K. (2003). De- bring to an end the detrimental effects scriptive Analysis of Body Status in that bad habits have on Substitute Ser- Patients Receiving Health Checkups: vices draftees’ health, the government A Hospital-Based Study, Mid- should pay close attention to the severe Taiwan Journal of Medicine, 8(2), and destructive impacts tobacco, alcohol 114-119. and betel nuts have on the health of the citizens of this country. Department of Health. ( 2007). http://www.doh.gov.tw/cht2006/ind Relevant personnel in the National ex_populace.aspx. Defense system should work on increasing their knowledge on the concept of Department of Health. (2008). Body health behavior and its application to mass index and obesity-related in health promotion so as to help imple- Taiwan, 2008/9/15. URL ： http:// ment sanitation and hygiene programs www.doh.gov.tw/New Version. and health promotion projects in the army to promote not only personal Huang, S.F., Yen, C.H., Tsai, C.H., & awareness of health behaviors but also Wang, H.F. (2003). Smoked Ciga- health condition. Therefore, it is sug- rettes. Journal of Taiwan Associa- gested that in addition to disease preven- tion, the national military medical care tion of Family Medicine， 13 (4): system should also reinforce new draft- 171-180. ees’ education on health promotion and, in cooperation with related policies, help Huang, S.J. et al. (1998). Terminology new draftees adjust their lifestyle to of Health Promotion, School of avoid health damage, to promote quality Health, 2: 77-99. of life, to further strengthen the national military force as well as attack and de- Li, L. (1999). Study of health promo- fense power, and in the long run, to tion-oriented concept, NHRI avoid the incidence of chronic disease COMMUNICATIONS, 4 (4), 21- and reduce future national medical ex- 26. penditures. Lin, Y.S. (2001). Clinical Nurses and Unhealthy behaviors show signs of Student Nurses Health Promotion clustering. We suggest health-related and Related Lifestyle Factors, departments should take into considera- Nursing of Veterans General tion the correlation among unhealthy Hospital, 18 (2), 147-158. health behaviors and devise an effective health promotion plan to promote the Huang SC, Chang WY 2003. A study of health and wellness of the citizens in marriage adaptation and children's Taiwan. education of foreign brides. The 258 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

Journal of Social Studies Education Research, 8:135-169.

Lin, Y.S. (2004). Health Promotion Lifestyle and Related Factors in Pre-Enlisted Man of Army , Mas- ter's Thesis of National Defense Medical Center School of Nursing. 27-65. Taiwan Journal of Public Health, 26:169 - 176.

Lin, Y.C., Wen, C.P., & Jackson P.M. Wai, (2007). Leisure-time Physical Activity and Its Association with Health Behaviors, Health Status and health-related Quality of Life among Taiwanese Adults, Journal of Taiwan Public Health Associa- tion,26(3): 18-228.

Liou, M.Y. & Lu, C.M. (2006). Related Factors of Health Behavior in Uni- versity Students, School Health, 48: 19-37.

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JUSTICE TAX BASED ON MSME ENTERPRENEUR PERSPECTIVE CASE STUDY OF ATOM MARKET SURABAYA

Jeanny Novliemyanti, Fauzi Ismail Arif, Yogi Prasetyo Nugroho, Bambang Tjahjadi Master of Accounting Faculty of Economics and Business Airlangga University UNAIR, INDONESIA [email protected]

Abstract

Several previous studies state that Government Regulation No. 46 of 2013 considered as unfair to those who run Micro, Small and Medium Enterprises (MSME). This can be happened because the draft final tax of one percent is charged on the turnover regardless of whether there is additional economic capability of SMEs or not. Govern- ment Regulation No. 46 of 2013 has been in effect for three years, according to the observer’s view, the regulation requires the existence of a good evaluation both from the SME entrepreneurs and the government.

Accordingly, the purpose of this study was to evaluate the imposition of final income tax at the rate of one per cent from the perspective of MSMEs in Atom Market Sura- baya. This study use a qualitative approach, purposive sampling, particularly the case study approach in the SME entrepreneurs in the market atom Surabaya. The results show that from the perspective of MSMEs, justice has not been occurred in the application of Government Regulation No. 46 of 2013. Supposedly justice occurs if the amount of tax is paid in line with the development of the turnover. In addition, other SME entrepreneurs with a higher turnover, though not being shaped as shop equip- ment, also should be taxed.

Keywords: SME taxes, Government Regulation No. 46 of 2013, the final tax, tax justice.

Background tegic role in overcoming the impact of the Indonesia’s economic crisis in Micro, Small and Medium Enter- 1997. prises (MSMEs) is one of the national econ-omy’s engine that has an impor- Based on data from the Central tant role in Indonesia. Tambunan Bureau of Statistics and the Ministry of (2000) explains that small businesses Cooperatives and SMEs in 2012-2013, are proved to be strong and have stra- the number of MSMEs recorded is

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57.895 million units, or 99.9 percent of bank, it is caused by the limited hours total business unit in Indonesia. of service time and distance access to the banks. Furthermore, the number of MSMEs workers is as much as 87.3 Factors that may affect the tax million workers (CBS, 2016). Along compliance of SMEs are the willing- with the trend of units development of ness to pay taxes and the documents’ SMEs, employment and contribution to completeness (Mukhlis, Utomo, & GDP has increased as well. Soesetyo, 2014). Various OECD and G20 countries also simplify the tax rate The cost of entry in the formal specifically for the SME sector business of developing countries is (OECD, 2015). high, this is due to the government taxation policies. The dominance of SMEs in the Indonesian economy has not been able Thus the government will need to to match the tax revenue earned from create a special status for small busi- SMEs, the data show that most of the nesses to increase the tax base (Auriol tax revenue is dominated by large tax- & Warlters, 2005). payers whose account is less than one percent (Endrianto, 2015). Some of the Some of the things that cause lit- causes are the main focus of the Direc- tle tax from the SME sector by Seidu, torate General of Taxation (DGT) Abdul, and Sebil (2015), is the high which is focused on the large taxpayers relative taxes of SMEs in income, the while the oversight of SMEs have not complexity of taxation procedures, been optimally performed and the low lack of tax knowledge, the education tax compliance of SMEs. level of SMEs, the lack of book- keeping, multiple taxation, and coun- Tax compliance related to the terfeit income report. procedure, the procedure of calculation and others are still quite difficult to Anjarwati (2013) explains that if implement and a little confusing for it to be studied further, there are at SMEs. least five problems of SMEs. First, SMEs are generally constrained in Tax collection from the SME sec- products marketing access and main- tor is not the easy thing. Not only in taining standardization of the products. Indonesia. In other countries, both de- Second, SMEs are not yet fully under- veloped and developing countries, the stood in calculating profit and turnover SME sector is one sector that is hard to of which will be used as the basis for control in terms of tax compliance. tax payments. Third, many SMEs still do not understand the obligation and Research by Seidu et al. (2015) manner of taxes payment. Fourth, for revealed that a significant factors in those SMEs who have understood the SME tax are the type of SME, tax- tax, they often reluctant to pay taxes related knowledge, and multiple taxa- with a reason of objection on the tax tion. It has been recommended that rate. The fifth problem, many SMEs there should be an adequate knowledge are constrained in paying taxes in the of the importance of taxes and the gov-

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ernment should make a more attractive the other hand, when the turnover was tax which will not be avoided by the nearing 4.8 billion a year, as required formal and informal sectors. by this policy, it opens the possibility of SMEs to split the entity in order to Research by Ocheni and Gemade remain being taxed one percent. (2015) in Nigeria which related to the imposition of multiple taxation has a While in other sectors, a number negative impact on the resilience of of small entrepreneurs with lower SMEs and their signif-icant relation- profit margins will be dither instead. ship between the size of SMEs with the The impact of rising prices of daily ability to pay taxes. necessities and groceries become a burden for its survival. Therefore, he recommends the government imposes a uniform tax pol- The compiling of Government icy and considering the size of SMEs Regulation No. 46 of 2013 does not in setting tax policy. take the aspect of justice into consideration. With the various forms of SMEs, prudence is a necessity in setting tax The explanations on Govern- policy. Business size alone is not suffi- ment Regulation No. 46 of 2013 states cient as a justification for government that the purpose of the imposition of intervention in the form of special levies on SME turnover up to a maxi- regulations (OECD, 2015). mum of 4.8 billion is a form of convenience provided by the government. The Government consideration over the imposition of income tax at Syahdan and Rani (2014) men- the rate of one per cent of the gross tion when SMEs refused to follow the turnover every month which had been policy, it will be taxed greater and final for MSMEs, as stated in the ex- more burdensome. planation of Government Regulation No. 46 of 2013, are simplicity in tax Application of Government collection, the reduced administrative Regulation No. 46 of 2013 in Surakarta burden for both the taxpayer and the (Setyaningsih & Ridwan, 2013), tax- DGT, and paying attention to the de- payers pay taxes because they feel velopment of economic and monetary. there is no choice but to pay to termi- nate the obligation to pay taxes. At first glance it appears to make things easier, but there is a potential The imposition of income tax, injustice because of the SMEs mar- which is final, means that after the re- gin’s difference. In reality, a number of payment of income tax of one per cent, services businessmen from various sec- which is calculated from the gross tors will probably be happy to wel- turnover, the obligation to pay tax on come the birth of this policy. such income is considered complete and final (Syahdan & Rani, 2014). Why not, with a profit margin that could be reached 50 percent, they SME tax rules should be as easy simply pull a tax of one percent. On as possible to be applied to all SME

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criteria, because for this small SMEs Voluntary compliance of citizens with a turnover not have clear book- against taxation policy is a reflection of keeping as their basic responsibilities modern society (van Dijke & Verboon, in the payment of taxes to the state. 2010). Improving tax compliance for SMEs means that the government must In order for the tax collection be- establish good communication and ing managed properly to achieve jus- build trust for SMEs before imposing tice, there are several theories that pro- sanctions or a warning letter. vide state justification in collecting taxes. The effort to build this trust can also be done by reforming the quality One theory of tax collection is of tax institutions in Indonesia. Re- the theory of endurance, Suandy search by Torgler, Demir, Macintyre, (2000) explains that based on the the- and Schaffner (2008) in the USA and ory, the tax collection should be in ac- Turkey shows that the quality of insti- cordance with the power to pay of the tutions such as the level of corruption taxpayer. also affects the tax morale.

All taxes shall be in accordance Final income tax which is cal- with the endurance of the taxpayers culated directly from the taxation of with great attention to income and gross income is not in accordance with wealth and the spending. In this case, it the concept of fairness in taxation. is clear that the tax on companies (stores) and taxes from shopkeepers The size of the net income of a are interconnected, and must be anal- person or business entity will not affect yzed simultaneously by the tax officer the amount of tax to be paid because (Slemrod, 2004). the tax is calculated by multiplying the rate directly against the gross income. This is in line with the concept of fairness in taxation (equity princi-ple), Even at a loss too, with the impo- according to Musgrave and Musgrave sition of final income, person or busi- in Subroto (2014) the imposition of ness entity must still pay taxes. final income is not in accordance with justice because it does not reflect the While Rantung and Adi (2009) ability to pay (ability to pay). explains that the willingness to pay taxes as a value that willingly contrib- Fair taxation is that the greater uted by someone (defined by rules) the income, the greater the tax to be which is used for state public finance paid. It's called the justice vertical or expenditure and does not receive recip- vertical equity. Income in meant here rocal services directly. is the net income, which is an income that is obtained after deducting ex- The willingness to pay taxes is penses from gross income according to influenced by several factors, including the deduction allowed by tax regula- the condition of the tax administration tions. system of a country, service to taxpayers, enforcement of tax laws and tax rates (Devano & Rahayu, 2006).

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In contrast to previous studies, This research is needed to deter- Sanjaya (2008) in his research showed mine why the SME entrepreneurs take that the willingness to pay taxes was advantage of the imposition of income supported by tax knowledge, percep- tax by one percent or not using the fa- tions of tax penalties, the improvement cility and even choose not to pay taxes of the tax, the perception of the tax of- based on the theory of willingness to ficials, and perceptions of the ease of pay. implementation of the tax system. This research is expected to be In comparison, there is a differ- used as a material consideration for the ence between the theory of endurance government as one of the basic consid- with the theory of willingness to pay. eration of changes in tarif imposition Tax collection which is based on the of final income tax for SMEs. theory of endurance is based on internal factors of the taxpayer to pay great The result of the research by attention to income and wealth and Atawodi and Ojeka (2012) in Nigeria, spending. revealed that the high tax rates and the complexity of administrative proce- While the theory of willingness dures are the most crucial factors that to pay said the willingness to pay taxes cause SME tax non-compliance. Abrie is influenced by external factors of the and Doussy (2006) also said that the taxpayer itself, namely the condition of administrative requirements hamper a country's system of tax adminis- the SME tax compliance and advise the tration, service to taxpayers, enforc- South African government to reduce ement of tax laws and tax rates. administrative obligations, compliance requirements, and tax benefits for The goal of setting the imposition SMEs. of final income tax by one percent is to provide convenience to taxpayers who For subsequent years, the Gov- receive or earn income from a business ernment and the various stake-holders that has a certain gross income, to per- need to provide information and educa- form calculations, remittance and re- tion to SMEs of information and edu- porting of income tax payable. cation related to tax laws, tax laws and various issues relating to the taxation Based on data from the Director- of SMEs, which is also very important ate General of Taxation stating that to be given to SMEs. Because the bet- most of the tax revenue are dominated ter the knowledge on taxation, the eas- by large taxpayers which amount is ier it will be to comply with taxation less than one percent. (Kołodziej, 2011)

It shows that the convenience Research Question provided by the government to implement the imposition of final income Based on this background, the tax by one percent has not been util- researchers consider it is important to ized by the SME entrepreneurs. do a case study of tax fairness from the perspective of SME entrepreneurs and

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evaluating the implementation of final for the willingness to pay taxes could income tax by one percent. then be developed. Willingness to pay taxes can be interpreted as an act of Thus the focus of this research is moral values of the taxpayers to volun- the perspective of the SME entrepre- tarily spend money (in accordance with neurs to the imposition of final income applicable law) in which the money tax by one percent, so the research will be used for the general purposes of problems can be formulated as follows: the state, and do not get direct feed- back from the state. a. How is the application of the imposition of final income tax by Research conducted by Rantung one percent to MSMEs in the and Adi (2009) state that the willing- market atom Surabaya? ness to pay taxes could be interpreted b. How is the evaluation of the as the value contributed by someone implementation of final income willing (defined by regulation) which tax by one percent to MSMEs in is used to finance public spending state the market atom Surabaya? without acquiring goods or services directly. Theoretical Reviews The willingness to pay taxes is According to Rantung and Adi influenced by several factors, including (2009), the concept of paying taxes the condition of the tax administration developed into two sub-concepts. system of a country, service to taxpayers, enforcement of tax laws and First, the willingness to pay is the tax rates (Devano & Rahayu, 2006). value that an individual is willing to pay, or exchange any sacrifice to ob- In contrast to previous studies, tain goods or services. The second is Sanjaya (2008) in his research showed the concept of taxes. that the willingness to pay taxes was supported by tax knowledge, percep- Waluyo (2003) explains that the tions of tax penalties, the improvement tax is an achievement imposed unilat- of the tax, the perception of the tax of- erally by and payable to the govern- ficials, and perceptions of the ease of ment (by regulation), in the absence of implementation of the tax system. counter-achievement, and is used solely to finance government spending. While the research conducted by Rantung and Adi (2009) showed that Agree with Waluyo (2003), Siti the shape and perception of the reasons (2009) explains that the tax is the con- that indicate the willingness of the tax- tribution of citizens to the state treas- payer to pay the tax are: (1) the tax- ury under the Act (enforceable) with- payer feels that the amount of tax to be out the services of reciprocity (cons paid is not burdensome, or at least ac- achievement) directly demon-strated, cording to the income. Taxpayers and used to finance state expenditures. would pay taxes if the tax burden does not affect the ability of the economy Based on the explanation of the significantly. (2) the taxpayer consid- two subconcepts above, the definition ers that the tax penalty has been carried

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out fairly. With this assessment, the real life through detailed data collec- taxpayer will pay tax based on the be- tion, involving a variety of resources. lief that taxpayers who do not pay taxes will be penalized. (3) Taxpayer A case study approach is ex- assess the utilization of the tax is cor- pected to provide benefits to the Minis- rect, for example the use of taxes for try of Finance, particularly the Direc- the construction of public facilities. (4) torate General of Taxes, in evaluating Taxpayer assess the tax authorities the application of Government Regula- provide good service. tion No. 46 of 2013 to MSMEs.

Based on the above statement, it A case study approach in this can be explained that the moral stance study begins by identifying MSMEs in in the form of desire or willingness to the Atom Market Surabaya based on pay the taxes need to consider that the the subject which is charged by final tax is an absolute obligation to the citi- income tax according to Government zens, it is necessary for the government Regulation No. 46 of 2013. to participate in improving a sense of love towards the state before. The subject of taxes in accordance with Article 2 of Government Research Methods Regulation No. 46 of 2013 is "non Taxpayers who receive a permanent The case studies in this study is establishment business income, ex- one of the markets in Surabaya, which cluding income from services in con- had stood since 1972, namely Atom nection with the work-free, with a Market Surabaya. SME entrepreneurs gross income does not exceed 4.8 bil- in the Atom Market Surabaya are lion in the fiscal year ". dominated by gold shop, culinary, clothing, garments, and other potential Furthermore, Creswell (2012) tax which become a subject of income explains that the unit of analysis for the tax revenue. case study approach is to study the activity or more from more than one in- In addition, the legendary Atom dividual. Market is a market in Surabaya which became the central hub of tourist visits Based on this research, we inter- as well as visits from local merchants, viewed eight informants come from the so the market target visitors is not only SME entrepreneurs in Atom Market including the area of Surabaya but also Surabaya with business scope of eligi- includes East Indonesia area. Stands, ble gross income which not exceed 4.8 which reached 2,000 and the various billion in the fiscal year. types of businesses, enabling everyone who visit there to find all their needs in Eight informants consists of Ai- one of the shopping areas. man and Winanjar owner of a fabric store; Andi, Yunita and Arifin gold Creswell (2012) explains that the shop owner, Harnoko clothing store case study is a qualitative approach owner, Tono cosmetics shop owner, conducted by researchers by exploring and Andika the owner of an appliance store (this is not real name because the

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identity of the informants is being kept b. using part or all of a public in order to maintain the credibility of interest which are not destined for informants). a place of business or selling. For example, itinerant food vendors, Our interviews carried out in hawkers, stall tents on the sidewalk, stages, beginning on December 13, and the like. 2016 until December 15, 2016. On De- cember 30, 2016 we reconfirmed to all Anjarwati (2013) explain to the our informants. taxpayer on income not subject to final income tax in accordance with Gov- ernment Regulation No. 46 of 2013, Discussion but is taxed in accordance with the provisions of the Income Tax Act invi- A. Implementation of the Final tation. Income Tax Imposition sum of One Percent To Entrepreneurs While tax payer which is not sub- SMEs in Atom Market Surabaya jected to final Government Regulation in accordance with the provisions of The provisions of Article 2 para- Article 2 paragraph (3) Government graph (2) Government Regulation No. Regulation No. 46 of 2013 are: 46 of 2013 states that the taxpayer a. Corporate taxpayer who has not Non-permanent establishment which been in commercial operation; or receives revenue from businesses, ex- b. Taxpayers body within a period cluding income from services in con- of one (1) year after the nection with the work-free, with a commercial operation obtain gross gross income does not exceed 4.8 bil- income exceeds lion in the fiscal year is charged by the Rp4.800.000.000,00 (four billion, final income tax. eight hundred million rupiah).

Of gross income in the language of Pandiangan (2014) explains there are trade is generally referred as turnover, two parties that are expected to benefit whereas in accounting terms known to from the enactment of Government be called by the income (revenue). Regulation No. 46 of 2013.

Furthermore, the provisions of For the public, especially taxpay- Article 2 paragraph (3) Government ers with gross income of certain cate- Regulation No. 46 of 2013, which is gories, the implementation of the Gov- not subject to final income tax in ac- ernment Regulation No. 46 of 2013 is cordance with the provisions of Gov- expected to (1) make it easy and prac- ernment Regulation No. 46 of 2013 are tical to carry out tax obligations, which those who undertake business activities are to calculate, pay, and tax reporting; or services in their efforts: (2) Low in terms of amount or number a. using facilities or infrastructure of payments because the tariff is low at that can be assembled, whether only one per cent; (3) the tranquility settled or not settled; and and comfort to taxpayers for making the payment of tax liabilities to the state.

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The gains derived by government Warning letter will be sent by including (1) the functioning of the tax Tax Service Office when a decline in regulerend for the community, (2) in- nominal final tax remitted compared creasing number of people who will with the previous month. contribute actively in paying taxes (so "... We will receive a love letter from that the coverage ratio increases) be- tax service office if our tax payments cause it is easily implemented and the fell from the previous month ...." (Wi- tariffs are low; (3) improvement in tax nanjar-owner of a fabric store and Har- compliance society; and (4) can predict noko-owner of clothing store). the tax revenue next year from the taxpayer in question. "... Rather than receiving a love letter from the tax service office, money from Some of the business of SMEs in private pockets used to pay taxes ...." the Atom Market Surabaya stated that (Tono-owner of a cosmetics shop). since the implementation of Govern- ment Regulation No. 46 of 2013, the Ease in calculating, paying, and quietness and comfort is being felt by the final payment of tax is not felt by Aiman-owner of a fabric store because businesses in the SME of Atom Mar- there is an assurance amount of the tax ket. Some store owners explain that rate to be paid, which is one percent of they hire a tax consultant or hire spe- turnover, so that there are no longer cialized employees who handle taxa- checks led to the underpayment. tion.

Aiman shopkeeper fabric that "... Than the one filling out the form stood since 1983 until now. Store op- deposited taxes, we hire a tax consult- erations run by family members with- ant, although the cost comes out to out hiring additional staff. Declining hire the services of a tax consultant is economic situation and the condition greater than the final tax payments ...." of the Atom Market traders competing (Tono-owner of a cosmetics shop and with merchants of plaza atoms, causing Andi-gold shop owner ). the turnover of stores from year to year is declining due to the gain on sale "... I employ accounting staff, he is re- which does not correspond to the cost sponsible for all matters relating to tax of store operations. "... Once the profit in my shop ...." (Arifin-gold shop margin could take an average of ten owner). percent. Even with these conditions, up to three percent profit margin had to One of the businesses, namely be taken, there is an important circula- Winanjar-owner of a fabric store sug- tion of goods .... " gested that the ease of application of the final tax of one per cent according Business communities of SMEs to Government Regulation No. 46 of others found tranquility and comfort, 2013 can be felt by the business is the aside for making the tax payment obli- ease of tax payment without any form gations, the tranquility was also ob- of tax payments is difficult (without tained as to avoid a warning letter from the account code taxes and code types the tax office. tax payments), the taxpayer only needs

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to bank and pay the tax in accordance (Syahdan and Rani, 2014). One percent final nominal tax to be paid (automatic is not a small number for SMEs. calculation of the tax deposited tax service office and connected with the Illustrated, for example, a mobile bank). phone kiosk, if there is a bid of a product from Rp.610.000,00 to be This was confirmed by Winanjar- Rp605.000,00, it will certainly be owner of a fabric store "... the payment maintained, as one percent of Rp600 mechanism should be simplified, that thousand is amounted to Rp6,000, if can be equated with pay land and the profit is Rp5,000 and the must paid building tax or the motor vehicle tax. tax is Rp6.000 then it will be burden- Especially at this time, we are some or become negative. prompted to show the payment code. Not even once that it can be equated The reporting mechanism was easy, among the other economic doer, such because usually the seller, who had as stalls tegal whose profit margin is already been elders, do not understand quite high. computers, let alone asked to fill out a tax report ..... " B. Evaluation of the Implementation of Final Income Amounting One The amount of the final payment Percent To Entrepreneurs SMEs in of income tax of one per cent from the Atom Market Surabaya turnover of businesses in the Atom Market is still burdensome, according Evaluation of the implementation to the businessmen. of final income tax of one percent is applied at Atom Market is already im- "... The economic situation does not plementing the tax calculations in ac- improve, causing the loss of my mer- cordance with Government Regulation chandise. Although there is a discourse No. 46 of 2013. of final income tax payment amount that will be passed down from one per- Based on the results of research cent to 0.5 percent, it is still useless, as and interviews on Atom Market, all long as the economic situation has not traders who are incorporated within improved ... " (Tono-owner of a cos- HIPPA (Atom Market Traders Asso- metics shop). ciation) have paid income tax of one percent of SME’s final income tax. "... The application of one percent tariff, when compared to the general rate Traders do deposit taxes with few of article 17, on the basis of the tax options, through the services of a tax calculation of 30% of turnover based consultant, collectively through on Net Income Calculation Norm re- HIPPA, or do a direct deposit via bank. duced by non taxable income, has a tax liability that is not so different ...." With the issuance of the policy on income tax provisions stipulated in Tax fairness is the nature (act or Government Regulation No. 46 Year treatment) which is not arbitrary or bi- 2013, in which the regulation explains ased on the existing taxation system the business received the gross turnover which do not exceed Rp.4,8 bil-

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lion in one year, will be subject to final Andi-household appliances shop Income Tax. owner has objected to Government Regulation No. 46 of 2013 as follows: Although the Government Regu- lation No. 46 of 2013 is not explicitly “…yes certainly it’s burdensome, but mention MSME, but from the tax for the future we should be accepted, scheme of the Government Regulation so in the future everything will be more No. 46 of 2013 and based on the limi- developed. If it is developed later in the tation of criteria according to Law No. future, we can feel it ourselves…” 20 of 2008, MSME will be charged one percent of turnover. By the assumption that this tax is not fair for SMEs with low margin, From the principles contained in then there should be a scheme for SME the Income Tax Act, the principle of segmentation based on its turnover. fairness is one thing that is highlighted The Segmentation can be used as a in taxation. base on the amount of tax to be charged. Taxes should be imposed on the increase in economic capability. While Harnoko-the owner of a fabric turnover is just an uncut burden in- store, stated that : come in business activities. “….if I may give suggestion, final en- When it's compared with the actment of income tax by one percent profit taken by SMEs business opera- should consider the minimum amount tors with the obligation to pay taxes in of turnover that is subjected to final Government Regulation No. 46 of income tax. For example, the minimum 2013, then the provisions of Govern- gross income is USD 500 million to 4.8 ment Regulation No. 46 of 2013 is billion, which is the object of final in- burdensome, although only obliging come tax by one percent…” for tax payer to pay one percent of turnover. “…thus, the total tax liability Furthermore, he stated that accounted for 33 percent of the gross “…when it’s compared with workers in profit. That is not including the cost of factory wages with a definite nominal store operations. The tax rate in real monthly for regional minimum wage. terms exceeds the income tax rate tax While SMEs business operators whose payer body which amounted to 25% of income is uncertain on every month, net profit…” (Winanjar-the owner of a why they do not get the right on final fabric store). income tax personal exemption of the Government Regulation No. 46 of Winanjar-the owner of a fabric 2013…” store, also explain that the burdensome conditions to pay taxes in Government The definition of tax also needs Regulation No. 46 of 2013 due to the to be done deconstruction by consider- economic conditions that have been ing aspects such as the environment in coming down since 2014, causing the order to balance the dominant eco- turnover decreased about 60%. nomic composition to avoid swept capitalism.

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Taxation practices also need to not pro-SME, as well as contrary to the start paying attention to the environ- intention of empowering SMEs as ment by making the tax regulation with stipulated in Law No. 20 of 2008. a positive impact on the environment (Liu, 2013). Based on this argument, Indone- sian Young Entrepreneurs Association Yunita and Arifin-gold shop (HIPMI) is hoping that the government owner expressed his objection due to revise the Government Regulation No. the application of gold was also the 46 of 2013 as it is considered burden- object of value added tax “…the gold some to MSME entrepreneurs. we sell get two percent value added tax , then we must pay the final income tax Besides the issue of the tax ob- by one percent based on Government ject, without consideration of whether Regulation No. 46 Year 2013. Imagine SMEs are still in the growing stage, how much margin we need to make…” which often experience the loss, but the tax burden remains one percent. In the background, it is mentioned that there is a difference be- In fact, if the turnover at 4.8 bil- tween the theory of endurance with the lion rupiah of large and medium com- theory of willingness to pay, that taxa- panies experience the loss, there are tion is based on the theory of endur- tax loss compensation of fiskal loss. ance which is based on internal factors Justice obviously does not appear in of the taxpayer by paying great atten- tax treatment between SMEs and large tion to income, wealth, and expendi- enterprises. ture. Conclusion While the theory of willingness to pay said the willingness to pay taxes From the explanation above, it is influenced by external factors of the can be concluded that in general, the taxpayer itself, namely the condition of willingness to pay taxes for SMEs, es- a country's system of tax administra- pecially for the SME entrepreneurs in tion, service to taxpayers, enforcement the Atom market is still high, as long of tax laws and tax rates. as the ease to calculate, pay, and report the tax in accordance with the actual From the research that we did on situation. the merchant of Atom market, there are economic requirements that must be On the other hand, the ability to fulfilled in tax collection, which should pay taxes began to decline due to the not interfere with the economy. sluggish economy and the advent of e- commerce which is resulting decline in The turnover obtained by SMEs turnover and margin to be lowered. entrepreneur will be used to pay employee salaries, electricity costs, rental, It appears that the theory of lending, and cover the costs of high willingness to pay stating that the will- start-up. So with the tax burden request ingness to pay taxes is influenced by to take precedence over other payment external factors of the taxpayer itself, obligations, the government seemed namely the condition of tax administra-

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tion system of a country, service to The samples in this study using taxpayers, enforcement of tax laws and purposive sampling, this is done be- tax rates have a dominant role in the cause many SMEs are not willing in final payment of income tax of one per the interview related to the issue of cent of the turnover in Government taxation. Regulation No. 46 of 2013. Further research can be expanded While the theory of endurance by looking for a sample in another lo- stating that the tax collection should be cation. In addition, the study of will- in accordance with ability to pay the ingness and ability of tax payments taxpayer, so the depiction of tax justice from the offender e-commerce can also has not been felt by the SME entrepre- be made to explore the potential and neurs in the Atom market Surabaya. expand the tax base.

The willingness to pay taxes are References still high despite the fall of turnover, this is due if the taxable value drops, Abrie, W., & Doussy, E. (2006). Tax SMEs intended to be monitored and compliance obstacles encountered given tax bill because it is not running by small and medium enterprises tax liability properly. Even with the in South Africa. Meditari Accoun- average profit margin below 5%, the tancy Research, 14(1), 1-13. willingness to pay taxes persist despite heavy. Anjarwati, R. (2013). PPh Final 1% untuk UMKM: Penerbit Pustaka In addition, there are additional Baru Press. costs to be incurred, some SMEs are forced to use the services of a tax con- Atawodi, O. W., & Ojeka, S. A. sultant because business owners find it (2012). Factors that affect tax difficult to report and pay their tax ob- compliance among small and me- ligations. dium enterprises (SMEs) in North Central Nigeria. International If asked to choose, the perpetra- Journal of Business and Manage- tors of SMEs referred prefer the ease ment, 7(12), 87. and clarity compared to the tax rate. For them, the general rate is not a Auriol, E., & Warlters, M. (2005). problem as long as it’s easy and obvi- Taxation base in developing coun- ous, especially for ordinary people who tries. Journal of Public Econom- aren’t used at using computers. ics, 89(4), 625-646.

Limitations and Further Research Creswell, J. W. (2012). Qualitative inquiry and research design: Choos- The results of this study are ex- ing among five approaches: Sage. pected to contribute in particular to the government in formulating tax policy Devano, S., & Rahayu, S. K. (2006). more easily and precisely for the per- Perpajakan: Konsep, Teori, dan petrators of SMEs. Isu. Jakarta: Kencana.

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Endrianto, W. (2015). Prinsip Keadilan Bruto Tertentu, Lembaran Negara dalam Pajak atas UMKM. Binus Republik Indonesia Tahun 2003 Business Review, 6(2), 298-308. Nomor 106, Tambahan Lembaran Negara Republik Indonesia Nomor Kołodziej, S. (2011). The role of edu- 5424. cation in forming voluntary tax compliance. General and Profes- Sanjaya, O. (2008). Analisis Faktor- sional Education, 2011(1), 22-25. Faktor yang Berpengaruh Terha- dap Kemauan Masyarakat dalam Liu, A. A. (2013). Tax evasion and op- Membayar Pajak: Studi Kasus timal environmental taxes. Journal Pada Kota Bandar Lampung Pro- of Environmental Economics and pinsi Lampung. Management, 66(3), 656-670. Seidu, A. N., Abdul, I. W., & Sebil, C. Mukhlis, I., Utomo, S. H., & Soesetyo, (2015). Modellling The Causes Of Y. (2014). Increasing Tax Compli- Tax Default Among Small and ance Through Strengthening Ca- Medium Scale Enterprises (SMEs) pacity Of Education Sector For in The Tamale Metropolis of Export Oriented Smes Handicraft Ghana. European Scientific Jour- Field In East Java Indonesia. nal, 11(1). European Scientific Journal, 10(7). Setyaningsih, T., & Ridwan, A. (2013). Persepsi Wajib Pajak UMKM Ocheni, S., & Gemade, T. (2015). Ef- Terhadap Kecenderungan Negosi- fects of Multiple Taxation on the asi Kewajiban Membayar Pajak Performance of Small and Me- Terkait Peraturan Pemerintah No. dium Scale Business Enterprises in 46 Tahun 2013. Prosiding Simpo- Benue State. International Journal sium Nasional Perpajakan, 4, 10- of Academic Research in Business 11. and Social Sciences, 5(3), 345. Siti, R. (2009). Perpajakan Teori dan OECD. (2015). Taxation of SMEs in Kasus. Yogyakarta: Selemba Em- OECD and G20 Countries. Pro- pat. Quest. Slemrod, J. (2004). The economics of Rantung, T. V., & Adi, P. H. (2009). corporate tax selfishness. Re- Dampak Program Sunset Policy trieved from Terhadap Faktor-Faktor yang Mempengaruhi Kemauan Mem- Suandy, E. (2000). Hukum Pajak: Sa- bayar Pajak. Salatiga: Universitas lemba Empat. Kristen Satya Wacana. Subroto, G. (2014). Pajak yang Fair: Republik Indonesia, P. P. Nomor 46 Kontak Sosial Negara dan Rakyat. Tahun 2013 tentang Pajak Pengha- Jakarta: Badan Pendidikan dan Pe- silan atas Penghasilan dari Usaha latihan Keuangan. yang Diterima atau Diperoleh Wa- jib Pajak yang Memiliki Peredaran

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Syahdan, S. A., & Rani, A. P. (2014). Dimensi Keadilan atas Pemberla- kuan PP No. 46 tahun 2013 dan Peningkatan Kepatuhan Wajib Pa- jak. InFestasi, 10(1).

Tambunan, T. (2000). The performance of small enterprises during economic crisis: Evidence from Indonesia. Journal of Small Busi- ness Management, 38(4), 93.

Torgler, B., Demir, I. C., Macintyre, A., & Schaffner, M. (2008). Causes and Consequences of Tax Morale: An Empirical Investiga- tion. Economic Analysis and Pol- icy, 38(2), 313-339. van Dijke, M., & Verboon, P. (2010). Trust in authorities as a boundary condition to procedural fairness effects on tax compliance. Journal of Economic Psychology, 31(1), 80-91.

Waluyo, W. (2003). Perpajakan Indo- nesia. Cetakan Terbaru, Jakarta, Salemba Empat.

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DEVELOPING A SUSTAINABLE TOURISM ATTITUDE IN TAI- WANESE RESIDENTS

Wei-San Su Graduate School of Leisure and Exercise Studies, National Yunlin University of Science and Technology, Yunlin, 640, Taiwan, R.O.C.

Lan-Fang Chang* Department of Accounting, National Yunlin University of Science and Technology, Yunlin, 640, Taiwan, R.O.C. National Chin-Yi University of Technology, Taiwan, R.O.C. *Corresponding author: [email protected]

Ming-Tai Yeh Fire Bureau of Taichung City Government, Taichung, Taiwan, R.O.C.

Abstract This study verified the fitness of early responsible environmental behavior linear models on the attitudes of Taiwanese slow city residents toward the development of sustainable tourism. All parameters within the 1600 valid questionnaires recovered were evaluated using structural equation modeling, and the results showed that the models have satisfactory fitness with Taiwanese slow cities. It is concluded that if Taiwanese slow city residents’ awareness of and relevant knowledge toward a new environmental paradigm can be strengthened, the cohesion of community awareness can be enhanced and the residents’ attitudes toward sustainable tourism development can be improved.

Keywords: Sustainable Tourism Development, Pro-environmental behavior, Cit- taslow, Community awareness

Introduction disasters and ecological damages associated with global warming and In recent years, environmental climate changes have become 275 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

prominent and a crisis and topic that ies” are considered to be capable of the world must address. One popular preventing or delaying the losses of approach has been the development historical heritage, natural resources, of sustainable tourism. For example, and traditional cultures caused by the the 2016 policy agendas of Taiwan’s spread of western modernization. The Tourism Bureau included “Taiwan’s concept of slow cities is directly re- 2015–2018 Tourism Action Plan,” lated to the sustainable development of the “Cross-Domain Highlights and local environments, because it con- Feature Bonus Plan,” and the “Ex- structs and maintains local residents’ perience Tourism: Light Up the Vil- history, natural environment, socio- lage” demonstration project, which cultural values, and economic devel- assist local governments in creating opment. In this study, the pro- envi- international tourism and recreation ronmental behavior model was adopted highlights, as well as developing lo- to assess its applicability in four Tai- cal tourism attractions and features wanese slow cities (Sanyi Township, (Tourism Bureau, Ministry of Trans- Nanzhuang Township, Dalin Town- portation and Communications ship, and Fenglin Township) and un- R.O.C, 2017). Based on these policy derstand the attitude of slow city resi- agendas, the nation’s tourism devel- dents toward sustainable tourism de- opment is focused on encouraging velopment. It was expected that the in-depth and environmentally slow cities would be capable of achiev- friendly sustainable tourism. ing the goals of slow city ecology, production, and life sustainability due Numerous communities or town- to pro- environmental behavior, includ- ships across the globe have worked to ing sustainable tourism development. obtain transformation and development opportunities through the power of Literature Review tourism (Mbaiwa, 2003; Reid, Mair, & George, 2004; Crouch & Ritchie, The establishment of slow cities is 1999; Briedenhnn & Wicken, 2004). generally followed by an influx of The 70th Session of the United Nations tourists, during which the original (UN) General Assembly in September township culture, environment, ecol- 2015 announced that 2017 would be ogy, production, and life may be posi- designated as the “International Year tively or negatively impacted, and the of Sustainable Tourism for Develop- the residents’ attitudes toward the de- ment.” Within this context “slow cit- velopment of slow cities are estab- 276 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

lished (Bulter, 1980). The residents’ ties a critical topic. Several organiza- overall attitude toward slow city de- tions, including Cittaslow, are cur- velopment is the major factor that af- rently consolidating the sustainability fects an area’s sustainable tourism de- of historical buildings, natural re- velopment (Andereck, Valentine, sources, and sociocultural values to Knopf, & Vogt, 2005; Landford & protect them from further damage by Howard, 1994; Allen, Long, Perdue, & humans. Kieselbach, 1988; Andereck & Vogt, 2000). Slow City Residents’ Attitude and Im- pact on the Development of Sustain- Sustainable Development, Sustainable able Tourism Tourism, and Slow Cities A study by Landford and Howord The “2030 Agenda for Sustain- (1994) revealed that the extent to able Development” and the new sus- which residents participate in tourism tainable development goals (SDG) ap- activities affects their attitude toward proved by the UN General Assembly the development of tourism. Similarly, included tourism as one of the three in a study on the young residents of the SDGs (UNWTO, 2015). A crucial stra- Prespes National Park, Greece, Trako- tegic goal for the world’s tourist attrac- lis (2001) discovered that the national tions, sustainable tourism can reduce park residents’ degree of participation resource consumption, protect the eco- was positively correlated with the atti- logical environment, and help shape tude of national park development. In the uniqueness of the market (Pulido- Canada, Reid, Mair, and George Fernández, Andrades-Caldito, & (2004) examined residents from six Sánchez-Rivero, 2015). The main sub- communities and determined that their jects in tourism are history, monu- degree of participation in tourism ac- ments, natural resources, and local so- tivities also had a positive correlation cial and cultural activities. Notably, with the attitude toward sustainable these elements are mostly directly or tourism development. Tosun (2006) indirectly related to the environment. conducted research in the Urgup and In other words, tourism is mainly Ankara regions in Turkey and found based on activities conducted in the that differing patterns of resident par- context of the environment, which ren- ticipation yielded differing attitudes ders sustainable use of various re- toward community development tour- sources in the course of tourism activi- ism. Other studies, such as those con- 277 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

ducted by Ko and Stewart (2002) in ciple of public welfare and altruistic Jeju Island and Reid et al. (2004), have spirit. This conceptualization facili- demonstrated similar results. tates the sustainable development of communities (McGillivray & Because the development of Walker, 2000). sustainable tourism in slow cities is based on local residents’ common Several scholars have suggested interests and problems, their attitudes that community awareness and atti- and opinions are vital. In addition, tude toward sustainable tourism de- the identification and effective man- velopment are positively correlated. agement of local knowledge and ex- For example, McCool and Martin perience must rely on local residents (1994) conducted a study on Mon- (Fredline & Faulkner, 2000). Slow tana residents and determined that city residents’ attitude formation re- higher community awareness regarding community development is sulted in more positive support to- not only affected by their personal ward the development of tourism feelings, but is also changed by their activities. Through their research in interactions with the groups and or- Waikiki, Hawaii, Sheldon and Abe- ganizations developing slow cities. noja (2001) learned that when tourism activities become a common Communitarianism and Community goal for community development, Awareness community awareness produces a significant positive correlation with Culbertson and Chen (1997) ar- residents’ attitudes toward tourism gued that the most essential core idea development. Elsewhere, Kneafsey of communitarianism is the sense of (2000) discovered that the impacts of cohesion and correlation between globalization and the commercializa- people. Thus, it is necessary to estab- tion of local resources in European lish participatory community groups villages have stimulated residents’ with core values. Indeed, most recognition of the sense of identity scholars advocate for the formation and awareness toward their commu- of common group values, and agree nities. This awareness has also fos- that communitarianism refers to par- tered community residents’ identifi- ticipation in community affairs as cation with, and positively influ- well as the gathering of community enced their attitude toward the de- awareness based on the overall prin- velopment of community tourism. 278 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

By contrast, some studies 2008). For example, they explain the have generated results that contradict intervention strategies that have been the aforementioned findings. For ex- implemented at various destinations ample, a study by Gursoy and Ruth- during the service process. erford (2004) that was conducted in Ballantyne, Packer & Hughes, 2008; Washington and Idaho, as well as Kim, Airey, & Szivas, 2011; Duer- one by Landford & Howord (1994), den & Witt, 2010) and educate and indicated that community identity encourage tourists to be mindful of did not produce a significant differ- the environments at their destina- ence on residents’ attitudes toward tions. In addition, tourists can gain sustainable tourism development. environmental knowledge from vari- The reason for this stark contrast is ous information services and then unclear and warrants further study on implement positive environmental the subject. behaviors, such as avoiding over- turning rocks (Alessa, Bennett, & Inappropriate tourism activities Kliskey, 2003) and not collecting and entertainment behaviors can di- plant and animal specimens (Alessa rectly or indirectly influence tourist et al., 2003; Kim et al., 2011). Bur- destination environments; specifi- gess, Harrison, and Filius (1998) also cally, they tend to result in environ- asserted that early responsible envi- mental or ecological degradation at ronmental behavior (REB) linear the destinations (Lee, Jan, & Yang, models (Figure 1) can be used to en- 2013). To ensure that high-quality hance environmental understanding travel experiences are provided, ad- and knowledge; these models also ministrators in tourist areas have engender environmental awareness tried to reduce the adverse impacts of and care (i.e., environmental atti- tourists’ expected and unexpected tude). Environmental attitude even- behaviors on the environment (Atik, tually expands, through personal atti- 2010; Ballantyne, Packer, & Falk, tude, to overall community aware- 2011; Ballantyne, Packer, & Hughes, ness and fosters slow city residents’ 2009; Ballantyne, Packer & Hughes,

Figure. 1. REB linear model for pro-environmental behaviors. (Source: Burgess et al., 1998) 279 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

(REB). Developing sustainable tour- protection and sustainable develop- ism is a key part of REB. ment to retain their title of “slow city” (Cittaslow International Association, Methodology 2017). In this study, a conceptual model was drawn to clarify the devel- According to the 72 requirements opment direction of slow city commu- by Cittaslow International, cities must nity policies (Figure 2). continually engage in environmental

Figure. 2. Conceptual model for this study.

Bollen (1989) noted that verifica- The sample number formula pro- tion studies utilizing structural equa- posed by the U.S. Creative Research tion modeling (SEM) are more satis- System (Hunter & Jackson, 1982) was factory when a 7-point scale is utilized to select the sample number adopted; thus, a 7-point Likert scale for this study to ensure a sampling er- was employed in this study. The scale ror of less than 5% at a confidence in- was divided into three dimensions, terval level of 95%. After calculation, namely new environmental paradigm, the sample number in this study was community awareness, and attitude 1499; in total, 1600 questionnaires toward sustainable tourism develop- were distributed to control for the ment. To create the indicators for each sampling error. dimension, Dunlap and Van Liere (1978); Landford and Howord (1994) Data Analysis and Gursoy et al. (2004); and Kim, Woo, and Uysal (2015) and Kim, Uy- The data were analyzed in three sal, and Sirgy (2013) were referenced, stages. First, the item total correla- respectively. tion was calibrated and each structure (general REB and site-specific 280 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

REB) was introduced to verify that Descriptive Statistics they appropriately measured each construct (Lee & Kim, 2012). Next, Among the respondents, 42.3% the relationship between the estab- were female and 52.7% were male; lished measurement indicator and 56.1% were married and 43.9% were potential variable was tested using a single; 18.4% were aged 41–50 years measurement model, and the validity old and 25.1% were aged 21–30 of the measurement indicators (ques- years old; 41.6% had college degrees tionnaires and scales) was tested and 31.6% had only high school de- through confirmatory factor analysis grees; 30.6% worked in the service using SPSS Amos. Finally, a SEM industry, whereas 15.7% and 16.9% analysis was conducted using the were laborers and students; 36.9% maximum likelihood estimation to had resided in a slow city for 10–20 estimate the parameters and examine years and 35.3% had resided in a the causal path relationship between slow city for more than 20 years; and potential variables; path analysis was 36.1% had a monthly income of NT$ also performed on potential variables 20,001–40,000 and another 36.1% to determine the fitness of the SEM. had a monthly income of less than NT$ 20,000 (as of May 13, 2017: Results US$ 1 = NT$ 30.35).

The results of this study were Model Fitness Indices accurate within a sampling error range of 2.2% at a 95% confidence Bagozzi and Yi (1988) stressed level. The Cronbach’s α for the new that when using χ2/df to test model environmental paradigm, attitude fitness, a smaller ratio indicated a toward sustainable tourism develop- more satisfactory result. In the pre- ment, and community awareness sent study, the χ2/df for the model were 0.884, 0.884, and 0.889, re- was 1.276 (< 5). Additionally, Hair spectively. All scores exceeded the et al. (1988) noted when the good- benchmark of 0.70 (Nunnally & ness-of-fit index (GFI) and adjusted Bernstein, 1994), indicating that the goodness-of-fit index (AGFI) are research tool possessed an acceptable closer to 1, a model is deemed more internal consistency for the meas- fit (however, there is no absolute cri- urement items within the same struc- terion to determine the fitness of a ture. model). Subsequently, Baumgartner 281 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

and Homburg (1996) suggested that a high internal consistency for the po- the GFI and AGFI values in research tential variables. Moreover, because all should be greater than 0.90, and they factor loadings greater than 0.5 are contended that a model is only ac- significant (t > 1.96, p < 0.05) and be- ceptable if GFI > 0.9 and AGFI > cause all t values associated with each 0.8. In the present study, the model fully standardized factor loading ex- was subjected to 1000 bootstraps, ceeded 1.96, the measures were con- which yielded a GFI and AGFI of sidered to have achieved convergent 0.980 and 0.983 respectively. More- validity on the project level. Thus, sta- over, the acceptable standard for the tistical significance was achieved comparative fit index (CFI) is > (Anderson & Gerbing, 1988). Table 1 0.90; in the present study, the CFI = lists the factor loadings, t values, AVE, 0.997. In short, the fitness indices and CR of all of the potential variables. regarding the model in this study were all within the standard values, Direct Effect of the Independent Vari- indicating that its results would be ables on the Dependent Variables acceptable. Therefore, the model used here to elucidate slow city resi- The path values from new envi- dents’ sustainable tourism develop- ronmental paradigm to social commu- ment attitudes could be utilized to nity, from community awareness to explain actual observation data. sustainable tourism development attitude, and from new environmental This study mainly followed the paradigm to sustainable tourism devel- proposal by Bagozzi and Yi (1988), opment attitude were 0.07, 0.487, and and thus adopted indicators such as 0.487, respectively. All of these values individual item reliability, composite achieved significance. Based on the reliability (CR), and the average path and effect analysis, new environ- variance extracted (AVE) of poten- mental paradigm directly affected slow tial constructs to evaluate the meas- city residents’ community awareness urement model. The evaluations of and indirectly impacted the residents’ each indicator are summarized in attitudes toward sustainable tourism Table 1. development, and community awareness directly affected the residents’ The factor loadings in this study attitudes toward developing sustainable were between 0.5–0.95, and all CR tourism. Table 3 details the path analy- values were greater than 0.6, indicating sis results. 282 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

Table 1 Factor Loadings, t Values, CR*, and AVE**

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*: composite reliability. **: average of variance extracted.

Note: Sustainable Tourism Development Attitude (S.T.D.A.), New Environmental Paradigm (N.E.P.), Community Awareness (C.A.)

Figure 3. Model of slow city residents’ attitudes to the development of sustainable tourism.

Table 2 AVE Discriminant Validity

Note: Boldfaced numerals are AVE root mean squares

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Table 3 Path Analysis Results

***：p＜0.001

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Discussion this study. Future research is encour- aged to address these limitations. The This study adopted the REB linear research results here can provide the model introduced by Burgess et al. tourist industry, government, and aca- (1998) as the theoretical framework demia Overall, the promotion of sus- and studied Taiwanese slow cities us- tainable tourism development in slow ing a novel first-order three-factor cities requires the cohesion of resi- (namely, new environmental paradigm, dents’ common awareness in advance community awareness, and sustainable to obtain a multiplier effect. tourism development attitude) model. The model was developed and verified using SEM; several fitness indices References were also employed to ensure that the Alessa, L., Bennett, S. M., & Kliskey, model had satisfactory fitness. The re- A. D. (2003). Effects of knowl- sults indicated that if Taiwanese slow edge, personal attribution and city residents’ awareness toward and perception of ecosystem health on relevant knowledge of the residents depreciative behaviors in the in- tertidal zone of Pacific Rim Na- toward a new environmental paradigm tional Park and Reserve. Journal can be strengthened, the cohesion of of Environmental Management, community awareness can be enhanced 68 (2), 207-218. and the residents’ attitudes toward the Allen, L. R., Long, P. T., Perdue, R. development of sustainable tourism R., & Kieselbach, S. (1988). The (i.e., their REB) can be indirectly im- impact of tourism development on residents' perceptions of commu- proved. These results are consistent nity life. Journal of travel re- with those proposed by Alessa, Ben- search, 27 (1), 16-21. nett, and Kliskey (2003), Alessa et al. (2003), and Kim et al. (2011). Notably, Andereck, K. L., Valentine, K. M., Knopf, R. C., and Vogt, C. A. because this study focused solely on (2005). Resident perceptions of unique metacommunities (i.e., slow community tourism impacts. An- cities), the applicability of the model to nals of Tourism Research, 32 (4),1056-1076. other types of communities remains unknown. Moreover, because of the Andereck, K. L., & Vogt, C. A. (2000). differing customs in various countries, The relationship between residents’ attitudes toward tourism the applicability of the model to slow and tourism development op- city residents in other countries is un- tions. Journal of Travel reconfirmed, and is the key limitation of search, 39 (1), 27-36.

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Anderson, J. C., & Gerbing, D. W. International journal of Research (1988). Structural equation mod- in Marketing, 13 (2), 139-161. eling in practice: A review and recommended two-step approach. Bollen, K. A. (1989). Structural Equa- Psychological bulletin, 103 (3), tions with Latent Variables, New 411. York: John Wiley & Sons. Jour- nal of Korean Academy of Nurs- Atik, M. (2010). Environmental pro- ing, 29 (5). tection in coastal recreation sites in Antalya, Turkey. Coastal Man- Briedenhann, J., & Wickens, E. (2004). agement, 38 (6), 598-616. Tourism routes as a tool for the economic development of rural Bagozzi, R. P., & Yi, Y. (1988). On areas—vibrant hope or impossible the evaluation of structural equa- dream?. Tourism management, 25 tion models. Journal of the acad- (1), 71-79. emy of marketing science, 16 (1), 74-94. Burgess, J., Harrison, C. M., & Filius, P. (1998). Environmental com- Ballantyne, R., Packer, J., & Falk, J. munication and the cultural poli- (2011). Visitors’ learning for en- tics of environmental citizenship. vironmental sustainability: Test- Environment and planning A, 30 ing short-and long-term impacts (8), 1445-1460. of wildlife tourism experiences using structural equation model- Butler, R. W. (1980). The concept of a ling. Tourism Management, 32 tourist area cycle of evolution: (6), 1243-1252. implications for management of resources. The Canadian Geogra- Ballantyne, R., Packer, J., & Hughes, pher/Le Géographe canadien, 24 K. (2008). Environmental aware- (1), 5-12. ness, interests and motives of bo- tanic gardens visitors: Implica- Cittaslow International association, tions for interpretive practice. (2017). Retrieved April 03, 2017, Tourism management, 29 (3), from http://www. Cit- 439-444. taslow.org/section/ association/how-to-become. Ballantyne, R., Packer, J., & Hughes, K. (2009). Tourists' support for Crouch, G. I. & Ritchie, J. R. B. conservation messages and sus- (1999). Tourism, competitiveness, tainable management practices in and societal prosperity. Journal of wildlife tourism experiences. Business Research, 44 (3), 137- Tourism Management, 30 (5), 152. 658-664. Culbertson, H. M., & Chen, N. (1997). Baumgartner, H., & Homburg, C. Communitarianism: A foundation (1996). Applications of structural for communication symmetry. equation modeling in marketing Public Relations Quarterly, 42 and consumer research: A review. (2), 36.

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Duerden, M. D., & Witt, P. A. (2010). Tourism Management, 36, 527- The impact of direct and indirect 540. experiences on the development of environmental knowledge, atti- Kneafsey, M. (2000). Tourism, place tudes, and behavior. Journal of identities and social relations in Environmental Psychology, 30 the European rural periphery. (4), 379-392. European Urban and Regional Studies, 7 (1), 35-50. Dunlap, R. E., & Van Liere, K. D. (1978). The “new environmental Ko, D. W. & Stewart, W. P. (2002). A paradigm”. The journal of envi- structural equation model of resi- ronmental education, 9 (4), 10-19. dents’ attitudes for tourism development. Tourism Management, 23 Fredline, E., & Faulkner, B. (2000). (5), 521-530. Host community reactions: A cluster analysis. Annals of tourism Lankford, S. V., & Howard, D. R. research, 27 (3), 763-784. (1994). Developing a tourism impact attitude scale. Annals of tour- Gursoy, D., & Rutherford, D. G. ism research, 21 (1), 121-139. (2004). Host attitudes toward tourism: An improved structural Lee, B. K., Agarwal, S., & Kim, H. J. model. Annals of tourism re- (2012). Influences of travel con- search, 31 (3), 495-516. straints on the people with disabili- ties’ intention to travel: An applica- Hunter, J. E., Schmidt, F. L., & Jack- tion of Seligman’s helplessness son, G. B. (1982). Meta-analysis: theory. Tourism Management, 33 (3), 569-579. Cumulating research findings

across studies (Vol. 4). Sage Pub- Lee, T. H., Jan, F. H., & Yang, C. C. lications, Inc. (2013). Conceptualizing and measuring environmentally responsible Kim, A. K., Airey, D., & Szivas, E. behaviors from the perspective of (2011). The multiple assessment community-based tourists. Tourism of interpretation effectiveness: Management, 36, 454-468. Promoting visitors’ environmental attitudes and behavior. Journal of MacGillivray, A., & Walker, P. (2000). Travel Research, 50 (3), 321-334. Local social capital: Making it work on the ground. Social capital: Kim, H., Woo, E., & Uysal, M. (2015). Critical perspectives, 197-211. Tourism experience and quality of life among elderly tourists. Tour- Mbaiwa, J. E. (2003). The socio- ism Management, 46, 465-476. economic and environmental impacts of tourism development on Kim, K., Uysal, M., & Sirgy, M. J. the Okavango Delta, north-western (2013). How does tourism in a Botswana. Journal of arid envi- community impact the quality of ronments, 54 (2), 447-467. life of community residents ?.

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McCool, S. F., & Martin, S. R. (1994). Community attachment and atti- Tosun, C. (2005). Stages in the emer- tudes toward tourism development. gence of a participatory tourism de- Journal of Travel research, 32 (3), velopment approach in the Devel- 29-34. oping World. Geoforum, 36 (3), 333-352. Nunnally, J. C., & Bernstein, I. (1994). Psychometric theory 3rd ed. 1994 Tourism Bureau, Republic of China, McGraw-Hill. New York, NY. Annual focus of the policy, Re- trieved April 02, 2017, from Pulido-Fernández, J. I., Andrades- http://admin.taiwan.net.tw/upload/p Caldito, L., & Sánchez-Rivero, M. ublic/20170109/e02b0adc-e5 e6- (2015). Is sustainable tourism an 45a c-95a7-6d076f436ada.pdf。 obstacle to the economic perform-

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THE IMPACT OF SOCIAL SUPPORT ON JOB PERFORMANCE: THE EMPIRICAL STUDY OF MEDIATING AND MODERATING EFFECTS OF RELATED VARIABLES

Yuan-Duen Lee Professor, Graduate School of Business Operations and Management, Chang Jung Christian University, Taiwan R.O.C.

Chiu-Chuan Lin Associate Professor, Graduate School of Business Operations and Management, Chang Jung Christian University, Taiwan R.O.C.

Min-Tzu Chen* Doctoral Student, Graduate School of Business Operations and Management, Chang Jung Christian University, Taiwan R.O.C. *Corresponding author: [email protected]

Chen-Fen Huang Doctoral Student, Graduate School of Business Operations and Management, Chang Jung Christian University, Taiwan R.O.C.

Abstract

Business in Taiwan are moving towards greater internationalization and globalization with many expatriates assigned to foreign branches or subsidiaries now working in the Taiwanese banking industry. This can raise issues with regard to social support, organizational commitment, cultural distance, expatriate adjustment and family-work conflict, which then influence job and task performance.

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Based on a questionnaire survey, data collection and statistical analyses, it is found that social support given to bank expatriates in Taiwan significantly affects their job performance. Social support also significantly affects their organizational commitment, organizational commitment and expatriate adjustment also significantly affect their job performance. In addition, this study also finds that organizational commitment has a mediating effect on the relationship between social support and job performance. Finally, this study finds that cultural distance and family-work conflict (FWC) play a significant moderating role in the research framework.

Keywords: Banking Industry, Social Support, Cultural distance, Expatriate Adjustment, Job Performance, Organizational Commitment, Family-Work Conflict (FWC)

Introduction context. Such international tasks present great challenges in a global commercial The rapid globalization has put fi- environment, and have become a critical nancial and banking industry in Taiwan issue for researchers and international in an overly competitive state. Under the human resource practitioners (Siu, Lu, & policies of the Ministry of Finance, in- Spector, 2013). cluding financial liberalization and internationalization, financial businesses More and more transnational cor- have worked to develop the domestic porations have sent expatriates to for- market and actively establish overseas eign countries to execute and monitor bases of operations, provide interna- international tasks. These individuals tional financial instruments and services, have to be open to the diversity of a and participate in international financial multicultural society so as to interact activities to enhance both management and associate with colleagues from dif- and market share, pursue business ferent cultural backgrounds. Successful growth, and increase earnings. Since expatriate managers have better job per- people are the most important asset in formance and can create global competi- banking industry, which is immediately tive advantages for their banks. facing the issues of training international financial professionals and the manage- Beugelsdijk, Slangen, Maseland, ment of global human resources when it & Onrust (2014) stated that cultural dis- outstretches the businesses in a foreign tance generally referred to the mean dif-

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ference between the populations of the regions. When in foreign environments, home and host countries. Individual en- people often appear confusion, anxiety, terprises should thus aim to reduce this and insecurity due to their fear of mis- distance with regard to customers in the conduct or violation of local taboos. All host country. Beugelsdijk et al. (2014) these are called cultural shock. Expatri- claimed that the wider cultural differ- ate adjustment, on the other hand, refers ence in a host country provided more to the process of living in a foreign cul- opportunities for those enterprises, tar- ture and making work-related adjust- geting local customers in host countries ments to one's behavior, which explains with closer cultures. Accordingly, a the degree of mental comfort and per- greater cultural difference in the host sonal familiarity that a person feels with country would result in less correlation the culture in the host country. with the cultural distance in the home Black(1988) and Black & Stephans country. (1989) categorized expatriate adjustment into job adjustment, general adjustment, Different arguments are proposed and interaction adjustment. Job adjust- by scholars when discussing cultural dis- ment referred to the degree of comfort tance. Among them, Hofstede (1990) presented by work value, work experi- classified a country’s cultural values into ence, and evaluation standards; general five phases of power distance, uncer- adjustment stated the degree of mental tainty avoidance, individualism, mascu- comfort presented by the culture and linity, and long-term orientation. When environment of the host country, includ- making a comparison among European- ing climate, food, and neighborhood; American countries and Asian countries, and interaction adjustment expounded it can surely find that a great gap exists the degree of interaction adaptation to- between Western culture (as represented wards the host country and the locals. by European-American regions) and Eastern culture (as represented by Asian Whyte (1956) first came up with regions). Under the trend of economic the idea of “organizational commit- globalization, issues on trans-cultural ment,” saying that the organization man management of the two sides have at- not only worked for an organization but tracted scholars’ attention. also belonged to it. Porter et al. (1974) further pointed out that organizational According to Oberg (1960), there commitment referred to the degree that are different cultural conventions, rules, an individual identified and involved in and enactments in different countries or an organization, including three phases

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of 1) value commitment: an individual mitment positively predict the retention who strongly believed in and accepted of international assignments. organizational goals and values, 2) effort commitment: an individual who re- The influential factors in expatriate vealed the willingness to strive for or- adjustment and international work effi- ganizational goals, and 3) retention ciency (i.e. job satisfaction and job per- commitment: an individual who clearly formance) are important for researchers hoped to remain a part of the organiza- and companies. In particular, the past tion. According to the research findings research indicated that social support from Morries & Sherman (1981), organ- (i.e. supervisor support and perceived izational commitment could predict the organizational support) might enhance phenomenon of job-quitting; while both expatriate adjustment and job per- Mowday et al. (1981) stated that em- formance (Siu et al., 2013). Since social ployees with high organizational com- support refers to the exchanges that oc- mitment showed better job performance cur among people, an employee would than those with low organizational reduce the negative effect on the organi- commitment. Expatriates surrounded by zation caused by stress when a manager foreign cultural networks needed more immediately offers emotional and opera- social support so as to boost their organ- tional assistance on seeing that the expa- izational commitment and expatriate ad- triate member's stress is caused by work. justment. Nguyen, Felfe, & Fooken Siu et al. (2013) also found negative cor- (2015) believed that expatriate commit- relation between social pressure and job ment towards the parent company might performance, with social support as the possess the potential to become a lead- moderator between these two variables. ing force, because it better connected with and embedded in the family cul- When an organization is pushed to ture. Under the situation of strong com- rapidly change in a competitive envi- mitment to the parent company, expatri- ronment, work demands are increased. ate retention would be decided less by The working population is significantly the expatriates’ commitment to the local changed, and many firms are facing a business in the foreign country. Based more competitive work environment, on the research findings, all composite called Family-Work Conflict (FWC). parts (affective, normative, and continu- This FWC is a growing issue referring to ous) from both parent company com- the conflicts that arise due to the stress mitment and local management com- caused by incompatible roles at work and in the family, and this is more likely

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to occur among expatriates. Kim, Lee, Relationship between Social Support Park, & Yun(2015) discovered that su- and Job Performance pervisor support had the strongest impact on the relationship among work in- Chang, Lu, & Pan (2012) argued terference with family (WIF), family that more family support meant more interference with work (FIW) and assistance from one's family and daily knowledge sharing when the former is life. With regard to work-family en- low and the latter was high. Rudolph, richment and spillover theory, an in- Michel, Harari, & Stout (2014) found a crease in family resources allows an in- significantly positive relationship be- dividual feeling fewer worries in the tween perceived organizational social workplace. In other words, a good fam- support and perceived supervisor social ily life enables an individual's work to support, a significantly negative rela- be more efficient and the individual to tionship between perceived organiza- become a better worker when he/ she tional social support and WFC, and a acquires skills, knowledge, behaviors significantly negative relationship be- and points of view from investing in tween perceived supervisor social sup- his/her family, giving rise to positive port and FWC. emotions and attitudes (Carlson, Kacmar & Grzywacz, 2006). The factors relating According to above literature re- to expatriate adjustment and interna- view, this study aims to examine the ef- tional work efficiency (i.e. job satisfac- fects of social support, expatriate ad- tion and job performance) are important justment, and organizational commit- for researchers and companies. In par- ment on job performance in the context ticular, past researches indicated that of overseas expatriates of banking in social support (i.e. supervisor support Taiwan as well as the factors of FWC and perceived organizational support) and cultural distance between parent and might enhance both expatriate adjust- host countries. The relationships among ment and job performance (Siu et al., social support, organizational commit- 2013). Since social support refers to the ment, cultural distance, expatriate ad- intercourse that occurs among people, justment, FWC, and job performance are including those factors related to emo- discussed through a literature review and tional concerns, supportive tools, and empirical research. information or appraisal. An employee would reduce the negative effects on the Literature Review organization due to stress when a manager immediately offers emotional and

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operational assistance while perceiving Chen, Lin, & Tsai(2013) investi- that an employee has work-related gated that supervisor support moderated stress. In ordinary work environments, the relationship between cultural intelli- socially supportive interactions could gence (CQ) and overseas work adjust- also prevent stress from occurring. ment, and the three-way interaction among CQ, loneliness and supervisor If an individual receives a high support had a significant impact on level of support from family and friends, overseas work adjustment. Personal ad- it then has positive spillover effects so justment to different cultures might be that the individual believes in them- enhanced under high family support and selves and invests more energy and time friend support. In addition to substantial in their work. In this case, job perform- family resource support, high family ance during an expatriate assignment support and friend support mean that would be enhanced. Moreover, if an one's personal capabilities are recog- employee experiences more organiza- nized and the family or friends would tional support and colleague support, quickly provide a needed psychological they believe that they will receive more and substantial support when encounter- rewards at work after the focal work ing problems, thus bringing forth posi- value or capability is developed. That is, tive effects. The focal individual there- an individual with more organizational fore believes in his/her competence for support will believe that the value poten- more work challenges and would more tial of the expatriate career commitment quickly achieve expatriate adjustment. would be realized and rewards would be Lee & Katrina(2014) found that family acquired after they have taken part in the support and family adaptability had project, which then in turn enhances an positive influence on expatriate adjust- expatriate's job performance. Accord- ment. Expatriates who had prior experi- ingly, the following hypothesis is pro- ences on parental demand and family to posed in this study. work conflict tend to be able to manage these problems more easily and that H1: Social Support has significant and study also identified that psychological positive effects on Job Perform- contract and organizational support as ance. two important moderators that can enhance expatriate adjustment and success. Relationship between Social Support Similarly, an individual with more or- and Expatriate Adjustment ganizational support and colleague support would show greater expatriate ad-

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justment when cultural adjustment is support as the antecedent of expatriate emphasized by the organization or col- adjustment, the relationships among so- leagues and associated with added value. cial support, expatriate adjustment, and Accordingly, the following hypothesis is job performance were discussed. The proposed in this study. findings showed 1) the more social support, the better foreign workers’ expatri- H2: Social Support has significant and ate adjustment and job performance, 2) positive effects on Expatriate Ad- the better expatriate adjustment, the justment. greater foreign workers’ job performance, and 3) partial mediating effects of Mediating Effect of Expatriate Ad- the expatriate adjustment of foreign justment workers’ on the relationship between social support and job performance. In above statements, it is proposed that social support would influence ex- Similarly, solving the expatriate ad- patriate adjustment and job performance. justment problem is the foremost thing This study aims to explore the effect of to do if expatriates have to have per- expatriate adjustment on job perform- formance on working abroad. Thus, job ance and the mediating effect of expatri- performance can meet the expectations ate adjustment on the relationship be- of quantity and quality standards, con- tween social support and job perform- tinue to the end of an expatriate's tasks, ance. Kraimer, Wayne & Jaworski develop and establish the capabilities of (2001) stressed that the promotion of social connections, mediate the stress to expatriate adjustment relied on social effectively perform tasks, and take a support, including support from compa- positive attitude towards the assigned nies, host countries, the exchange rela- job. Consequently, personnel with fa- tionships between superiors and subor- vorable expatriate adjustment could bet- dinates, as well as the family. The re- ter overcome the pressure caused by sults revealed that support from the host psychological uncertainty in the expatri- country and the exchange relationships ate process, and this can then induce bet- between superiors and subordinates had ter job performance. Accordingly, the significant effects on expatriates and following hypotheses are proposed in their job performance. Liu, Yu & Huang this study. (2007) discussed the effects of social support on adjustment from the viewpoint of organizations. Regarding social

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H3: Expatriate Adjustment has signifi- expatriates. It is therefore proposed that cant and positive effects on Job cultural distance has moderating effects Performance. on social support, expatriate adjustment, and job performance. The following hy- H4: Expatriate Adjustment has mediat- potheses are thus proposed in this study. ing effects on the relationship between Social Support and Job Per- H5: Cultural distance has moderating formance. effects on the positive relationship between Social Support and Job Moderating effect of Cultural distance Performance.

Chou & Tsui (2012) found that the H6: Cultural distance has moderating expatriates’ cultural distance had a sig- effects on the positive relationship nificantly positive moderating effect on between Social Support and Expa- general adjustment. Cultural differences triate Adjustment. appeared in things such as attitudes towards language, customs, and even time. H7: Cultural distance has moderating Chen (2002) examined the management effects on the positive relationship system of the parent company and sub- between Expatriate Adjustment sidiary company of multinational enter- and Job Performance. prises, and found that a smaller cultural distance revealing more similar values Relationship between Social Support and norms could reduce the barriers of and Organizational Commitment the policies and practices established by the parent company, so as to enable the With special agents as the research smooth operation of the management subject, Chen (2010) delved into the or- system. ganizational commitment in secret service organizations to discuss the impacts In sum, cultural distance would de- of career commitment, work stress, and termine the interpersonal interactions. It social support on organizational com- occurs with regard to differences in lan- mitment. It was found that special guages, races, and social norms between agents’ social support had very positive countries, and these differences result in effects on organizational commitment, cultural distance. This study observes i.e. the higher the social support, the that differences in language, race, and greater the organizational commitment. social norms have moderating effects on Chou, Chang, Liu & Guo (2011) inves-

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tigated nurses’ WFC, social support, and Mediating Effect of Organizational organizational commitment. The find- Commitment ings showed the importance of these factors, and thus proposed that nursing Nguyen et al. (2015) stated that the managers should pay more attention to expatriate commitment of the parent reducing WFC and support nurses in company could potentially become the order to promote their organizational dominant force in the degree of com- commitment. mitment the expatriate feil towards their work, as it appeared to have a greater Accordingly, social support has ef- association with and effect on family fects on personal behaviors and mental culture. A stronger commitment to the states in many societies and organiza- parent company meant that the expatri- tions. Researchers have attempted to ate’s retention depended less on the discuss social support from different an- commitment to local businesses. With a gles, including the sources of social sup- strong commitment to the parent com- port, functions of social support, and pany, a greater intention to stay with the personal cognition of social support. In firm would be presented, even though these studies, social support is proved to the commitment to local businesses was have significant effects on individuals low. The results confirmed that all the and could help them reduce the influ- components (affective, normative and ence of stress on mental health, improve continual) of parent company commit- personal job performance, and enhance ment and local operation commitment personal organizational commitment. positively predicted retention in interna- For this reason, an organization has to tional assignments. However, expatriate understand the effects of social support retention was driven more by the level on individuals and attempt to provide of parent company commitment. Be- expatriates with the support required to sides, the relationships between two reduce the influence of work stress on components (affective and continual) of mental health, and effectively enhance local operation commitment and reten- organizational commitment. As a result, tion were moderated by the correspond- the following hypothesis is proposed in ing components of parent company this study. commitment. These findings improved our understanding of dual commitment’s H8: Social Support has significant and links to work behaviors in international positive effects on Organizational business contexts. Commitment

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Expatriates often encounter dilem- among WIF, FIW, and knowledge share mas as they have to follow the develop- when WIF was low and FIW was high. ment of local units and monitor local Rudolph, Michel, Harari, &Stout (2014) work. If they face a heavy work burden, found a significantly positive relation- expatriates with a lack of organizational ship between perceived organizational identification or coherence often con- social support and perceived supervisor sider leaving their jobs, thus increasing social support, a significant negative re- turnover intention and creating negative lationship between perceived organiza- effects on job performance. Therefore, tional social support and FWC, and a organizational commitment is regarded significant negative relationship between as a key factor in job performance in this perceived supervisor social support and study. Accordingly, the following hy- FWC. potheses are proposed. Accordingly, regardless of the defi- H9: Organizational Commitment has nition of FWC, such conflict would ap- significant and positive effects on pear to have negative effects on an em- Job Performance ployee’s personal life or work. The following hypotheses are thus proposed in H10: Organizational Commitment has this study. mediating effects on the relationship between Social Support and H11: FWC moderates the positive rela- Job Performance tionship between Social Support and Job Performance Moderating effect of FWC H12: FWC moderates the positive rela- People need to work to support tionship between Social Support their families, but FWC can have nega- and Organizational Commitment tive effects, both physiologically and psychologically, which then further re- H13: FWC moderates the positive rela- duces work productivity and job satis- tionship between Organizational faction and decreases organizational Commitment and Job Performance commitment (Greenhaus & Beutell, According to the literature, social 1985; Higgins, Duxbury & Irving, support would affect job performance, 1992). Kim, Lee, Park, & Yun(2015) social support would affect expatriate discovered that supervisor support was adjustment, expatriate adjustment could the strongest function in the relationship affect job performance, social support

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would affect organizational commit- social support, expatriate adjustment and ment, and organizational commitment job performance. Figure 1 shows the re- could affect job performance. Cultural search frame work proposed in this distance and FWC could have moderat- study. ing effects on the relationships among

Cultural Distance

Expatriate Adjustment

Social Support Job Performance

Organizational Com- mitment

Family-Work Conflict

Figure 1. Research Framework Support (16 items), Expatriate Adjust- Methodology, Variable Measurement ment (11 items), Organizational Com- and Questionnaire Development mitment (23 items) and Job Performance (6 items). In addition, the moderating This study develops a survey ques- variables are Cultural distance (6 items) tionnaire to obtain responses from Tai- and FWC (5 items). All of them are wanese expatriates in banking industry tested to ensure the reliability and valid- about their Social Support, Expatriate ity of the design. The results suggest that Adjustment, Cultural distance, Organ- the measurement scales are reliable and izational Commitment, FWC and Job thus suitable for being adopted in this Performance. These question items are study. presented in six parts, namely Social 1. Social Support - The items for Social Support are adopted and modified from

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Chen, Huang & Du (2010), aiming to ing to test the effects of FWC on Expa- test the effects of Social Support on Ex- triates of Taiwan’s banking industry. patriates of Taiwan’s banking industry. Sampling Design 2. Expatriate Adjustment - The items for Expatriate Adjustment are derived and Data are collected through an modified from Huang, Chung, Weng & online questionnaire survey. There are Chang (2005), aiming to test the effects 21 banks in Taiwan with expatiates, and of Expatriate Adjustment on Expatriates these employees are purposively strati- of Taiwan’s banking industry. fied and selected as the sampling subject.

3. Organizational Commitment - The First of all, the authors search the items for Organizational Commitment list of banks in Taiwan from the website are adopted and modified from Lee, of the Ministry of Finance, Taiwan, Chung & Lin (2000), aiming to test the R.O.C. Then, letters to the Human Re- effects of Organizational Commitment source Managers are written to invite the on Expatriates of Taiwan’s banking in- banks’ expatriates to participate in this dustry. study. They are promised that their an- swers would be treated with strict confi- 4. Job Performance - The items for Job dentiality and no individual information Performance are derived and modified will be leaked out. from Qomariyah & Wu (2013), aiming to test the effects of Job Performance on Data Analysis Expatriates of Taiwan’s banking industry. The retrieved questionnaires are analyzed to test the hypotheses using 5. Cultural distance - The items for Cul- SPSS18.0, including descriptive statis- tural distance in this study are adopted tics, validity analysis, reliability analysis and modified from Hofstede (2001), and (hierarchy) regression analysis. aiming to test the effects of Cultural dis- Empirical Analysis of Research tance on Expatriates of Taiwan’s banking industry. The data in this study are collected using online questionnaire survey. A to- 6. FWC - The items for FWC are de- tal of 150 copies are distributed, and 116 rived and modified from Lu (2015), aim- valid responses are retrieved, with an effective retrieval rate 77.3%.

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Analysis of Descriptive Statistics these features and make predictions about them, Table 2. Regarding the basic features of the sample, 66 respondents are male, about Regression Analysis 57%; 46 respondents are aged 41-50, about 40%; 84 respondents are married, 1. Effects of Social Support on Job Per- about 72%; 54 respondents are gradu- formance ated from university, about 47%; 52 respondents have worked for more than 16 From Table 3,social support has a years, about 45%; 64 respondents have significant and positive effect on job been an expatriate for less than two years, about 55%; and 36 respondents performance, β=0.498 and p=0.000. Hy- have an average annual income below pothesis 1 is thus supported. $33,000, about 31%, Table 1. 2. Effects of Social Support on Expatri- (Editor's Note: Please see all Tables at ate Adjustment the end of this article.) Social support does not have a sig- Reliability and Validity Analysis nificant and positive effect on expatriate adjustment, β=0.084 and p=0.409, Table The results reveal that the reliabil- 4. Hypothesis 2 is thus not supported. ity of social support, job performance, expatriate adjustment, and cultural dis- 3. Effects of Expatriate Adjustment on tance in the survey reaches or exceeds Job Performance 0.8, showing the stability and consistency of the questionnaire, Table 2. With Expatriate adjustment has signifi- regard to internal validity, Nunnally cant and positive effects on job perform- (1978) suggested estimating the internal ance, β=0.293 and p=0.000, Table 5. validity coefficient with the square root Hypothesis 3 is thus supported. of reliability. The results show the internal validity of social support, job per- 4. Effects of Social Support on Organ- formance, expatriate adjustment, and izational Commitment cultural distance in the instrument rang- ing from 0.87 to 0.92, revealing the From Table 6,social support has abilities of the questionnaire to reflect significant and positive effects on organ-

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izational commitment, β=0.685 and commitment is the dependent variable in p=0.000. Hypothesis 8 is thus supported. the first regression model. The results show R2=0.425 (F=71.083), and thus 5. Effects of Organizational Commit- social support could explain 42.5% of ment on Job Performance the variance of organizational commitment. The standardized coefficient (β) is From Table 7, organizational com- 0.652, achieving the significance mitment has significant and positive ef- (p=0.000), and thus social support fects on job performance, β=0.685 and shows positive effects on organizational p=0.000. Hypothesis 9 is therefore sup- commitment. Social support is the inde- ported. pendent variable and job performance is the dependent variable in the second re- 6. Mediating effect of Expatriate Ad- gression model. The results are justment R2=0.302 (F=41.582), and thus social support could explain 30.2% of the vari- According to Baron & Kenny’s ance of job performance. The standard- (1986) analysis of mediators and mod- ized coefficient (β) is 0.550, reaching erators, Multiple Regression and Path the significance (p=0.000), and thus so- Analysis could be applied to verify the cial support presents positive effects on existence of mediating effects. Baron job performance. and Kenny indicated that a mediating effect was supported when steps 1~3 Social support and organizational reached the significance and there was commitment are the independent vari- no mediating effect when one or more ables and job performance is the de- steps did not achieve the significance. pendent variable in the third model. The The regression in this study using inde- results explain that the variance (ΔR2) pendent variables to predict the mediator increases 0.482 (F = 46.127, p = 0.000), in step 2, i.e. H2, indicates that the me- achieving the significance. The stan- diating effects does not exist, so Hy- dardized coefficient (β) of social support pothesis 4 is not supported. with regard to organizational commitment appears 0.299 (p=0.001), reaching 7. Mediating effect of Organizational the significance. Hypothesis 10 is thus Commitment supported.

From Table 8, social support is the 8. Moderating effects of Cultural dis- independent variable and organizational tance

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(1) Moderating effects of cultural dis- cance test F also shows the significance tance on the relationship between social (F=9.103), and thus Hypothesis 6 is support and job performance supported.

The interaction between social sup- (3) Moderating effects of cultural dis- port and cultural distance with regard to tance on the relationship between expa- job performance is examined using hier- triate adjustment and job performance archical regression analysis in this section. From Table 9, after including the The interaction between expatriate interaction between social support and adjustment and cultural distance with cultural distance in hierarchy 3, the ex- regard to job performance is examined planatory power of job performance using hierarchical regression analysis in this section. From Table 11, the explana- shows a remarkable increase (△ tory power of job performance shows a =0.271, 0.274, 0.293) and achieves remarkable increase (△ =0.107, 0.099, the significance; The overall regression significance test F also shows the sig- 0.221) and reaches the significance after nificance (F=16.885) so that Hypothesis including the interaction between expa- 5 is supported. triate adjustment and cultural distance in hierarchy 3. The overall regression sig- (2) Moderating effects of cultural dis- nificance test F shows the significance tance on the relationship between social (F=11.863), and so Hypothesis 7 is sup- support and expatriate adjustment ported.

The interaction between social sup- 9. Moderating effects of FWC port and cultural distance with regard to expatriate adjustment is examined using (1) Moderating effects of FWC on the hierarchical regression analysis in this relationship between social support and section. From Table 10, after including job performance the interaction between social support and cultural distance in hierarchy 3, the The interaction between social sup- explanatory power of expatriate adjust- port and FWC towards job performance is also examined using hierarchical re- ment shows a notable increase (△ =- gression analysis. From Table 12, after 0.003, 0.128, 0.174) and reaches the sig- including the interaction between social nificance. The overall regression signifi- support and FWC in hierarchy 3, the ex-

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planatory power of job performance From Table 14, the explanatory power of job performance shows a remarkable shows a remarkable increase (△ increase (△ =0.315, 0.312, 0.405) and =0.271, 0.268, 0.295) and achieves the significance. The overall regression reaches the significance after including significance test F also shows the sig- the interaction between organizational nificance (F=17.065), and thus Hypothe- commitment and FWC in hierarchy 3. sis 11 is supported. The overall regression significance test F also shows the significance (2) Moderating effects of FWC on the (F=27.143). Hypothesis 13 is thus sup- relationship between social support and ported. organizational commitment Conclusions, Implications and The interaction between social sup- Suggestions port and FWC with regard to organizational commitment is examined using Based on a questionnaire survey, hierarchical regression analysis. From data collection and statistical analysis, Table 13, after including the interaction the study finds that social support gave between social support and FWC in hi- to bank expatriates in Taiwanese banks erarchy 3, the explanatory power of or- significantly affects their job perform- ganizational commitment shows a nota- ance. Social support significantly affects their organizational commitment, and ble increase (△ =-0.442, 0.447, 0.493) organizational commitment and expatri- and reaches the significance. The overall ate adjustment also significantly affect regression significance test F also shows their job performance. The research re- the significance (F=38.327). As such, sults reveal the significantly positive ef- Hypothesis 12 is supported. fects of social support on organizational commitment, revealing that social sup- (3) Moderating effects of FWC on the port would actually have an impact on relationship between organizational expatriates’ organizational commitment. commitment and job performance The results once again show that social support can have significant effects and The interaction between organiza- could help reduce the influence of stress tional commitment and FWC with re- on mental health, improve personal job gard to job performance is examined performance, and enhance personal or- using hierarchical regression analysis. ganizational commitment.

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The results of this research suggest ness in a foreign country. So, all com- that the use of discriminatory policies in posite parts (affective, normative, and a host country would reduce expatriate continuous) from both parent company commitment when cultural distance is commitment and local management high, and the expatriate would thus see commitment positively predict the reten- reduced task performance and may even tion of international assignments. return to the parent company earlier that expatriates with less cultural distance Finally, this study finds that cul- would have better expatriate adjustment. tural distance and FWC play a significant moderating role in the research In addition, in its validation of the framework. Regarding the management mediating effect of organizational com- system of the parent company and sub- mitment, this study finds that organiza- sidiary company of multinational enter- tional commitment has some mediating prises, it is found that a smaller cultural effects on job performance, but expatri- distance revealing more similar value ate adjustment does not have significant and norms could reduce the barriers of mediate the relationship between social the policies and practices established by support and job performance. The re- the parent company so as to enable the sults of this research, the findings show smooth operation of the management that a high degree of organizational system. So cultural distance would de- commitment has a positive influence on termine the interpersonal interactions. It job performance and the achievement of occurs with regard to the differences in organizational goals and can be used for languages, races, and social norms be- predicting the employee performance. tween countries, and these differences As a result, this study holds that multi- result in cultural distance. Therefore, national companies should strengthen this study holds that multinational com- the contacts between expatriates and panies should promote cross-cultural their parent company, because organiza- trainings (CCT) before dispatching their tion commitment towards parent com- expatriates. Only with perfect CCT can pany might possess the potential to be- they help their employees perceive the come a leading force, because it better differences among different cultures, connects with and embeds in family cul- which in turn can boost their abilities to ture. Under the situation of strong com- get along with coworkers from different mitment to parent company, expatriate countries. When they make progress in retention will be decided less by the ex- cross-cultural adaptation, they will also patriates’ commitment to the local busi- see the decrease in cultural distance and

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thus upgrade their expatriate job per- ing organizational commitment. In addi- formance accordingly. tion, this study holds that, besides inten- sifying cross-cultural trainings before It is also found in this study that dispatching their expatriates, multina- FWC has moderating effects on the rela- tional companies should also single out tionships between social support and job the expatriates’ family members to give performance, social support and organ- them proper and timely assistance re- izational commitment, and organiza- garding the issue of cross-cultural tional commitment and job performance. adaptability, so that they can have a bet- FWC would have negative physiological ter understanding of the expatriate work- and psychological effects, including load and contents and then be given due threats to personal physical health, feel- support. Thus, the expatriates, because ings of depression and not being compe- of no worriment of back-up problems, tent in one's parental role, reducing sat- will boost their organizational commit- isfaction with family, marriage, and life, ment and job performance in the field as well as declining work productivity missions. and job satisfaction, thus further affect-

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Table 1. Basic Data of the Research Sample

Times distribution Percentage distribution Item Question (person) (%) Male 66 56.9 Gender Female 50 43.1 21-30 8 6.9 31-40 28 24.1 Age 41-50 46 39.7 Above 51 34 29.3 Married 84 72.4 Marital status Single 28 24.1 Others 4 3.4 Under junior high 2 1.7 /vocational school Educational College 10 8.6 attainment University 54 46.6 Above graduate school 50 43.1 Below 5 years 16 13.8 Years of 5-10 years 28 24.1 work 11-15 years 20 17.2 Above 16 years 52 44.8 Below 2 years 64 55.2% Years of ex- 2-4 years 42 36.2% patriate Above 5 years 10 8.6% Below $33,000 36 31.1% Annual in- $33,001-$48,500 26 22.4% come $48,501-$66,000 26 22.4% Above $66,001 28 24.1%

Table 2. Reliability and Validity Analysis of this research scale

Dimension Cronbach’s α Social Support 0.918 Job Performance 0.885 Expatriate Adjustment 0.937 Cultural Distance 0.876 Organizational Commitment 0.945 Family-Work Conflict 0.903 Data source: organized in this study

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Table 3. Regression analysis of social support and job performance

Coefficient a Standardized Unstandardized Coefficients t p Model Coefficients β Std. Error Beta (Constant) 2.610 .359 7.263*** .000 1 Social Sup- .498 .075 .527 6.617*** .000 port a. Dependent Variable: Job Performance p< 0.001

Table 4. Regression analysis of social support and expatriate adjustment

Coefficient a Standardized Unstandardized Coefficients t p Model Coefficients β Std. Error Beta (Constant) 4.005 .486 8.234*** .000 1 Social Sup- .084 .102 .077 .829 .409 port a. Dependent Variable: Expatriate Adjustment *** p< 0.001

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Table 5. Regression analysis of expatriate adjustment and job performance

Coefficient a Standardized Unstandardized Coefficients t p Model Coefficients β Std. Error Beta (Constant) 3.675 .341 10.787*** .000 1 Expatriate Ad- .293 .076 .338 3.837*** .000 justment a. Dependent Variable: Job Performance *** p< 0.001

Table 6. Regression analysis of social support on organizational commitment

Coefficient a Standardized Unstandardized Coefficients t p Model Coefficients β Std. Error Beta (Constant) 1.641 .403 4.075*** .000 1 Social Sup- .685 .081 .652 8.431*** .000 port a. Dependent Variable: Organizational Commitment *** p< 0.001

Table 7. Regression analysis of organizational commitment on job performance

Coefficient a Unstandardized Coeffi- Standardized t p Model cients Coefficients β Std. Error Beta (Constant) 1.641 .403 4.075*** .000 1 Organizational .685 .081 .652 8.431*** .000 Commitment a. Dependent Variable: Job Performance *** p< 0.001

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Table 8. Analysis of mediating effect of organizational commitment on the relationship between social support and job performance

Dependent variable Organizational Job Performance Commitment Independent variable Model 1 Model 2 Model 3 Social Support .652*** .550*** .299** Organizational Com- .503*** mitment F 71.083 41.582 46.127 R2 .425 .302 .493 ΔR2 .419 .482 .482 *** p< 0.001

Table 9. Moderating effects of the interaction between social support and cultural distance on job performance

Job Performance Job Performance Job Performance Explained variable β t β t β t Social Support .498 6.617*** .494 6.560*** .557 6.891*** Cultural distance .066 1.228 .082 1.526 Social Support * Cul- -.128 -1.992* tural distance .278 .287 .311

Adjusted △ .271 .274 .293

F 43.788*** 22.746*** 16.885*** * p< 0.05, *** p< 0.001

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Table 10. Moderating effects of the interaction between social support and cultural distance on expatriate adjustment

Expatriate Ad- Expatriate Adjust- Expatriate Adjust- Explained variable justment ment ment β t β t β t Social Support .084 .829 .064 .670 .172 1.706 Cultural distance .290 4.257*** .317 4.728*** Social Support * -.217 -2.709** Cultural distance .006 .143 .196

Adjusted △ -.003 .128 .174

F .687 9.456*** 9.103*** ** p< 0.01, *** p< 0.001

Table 11. Moderating effects of the interaction between expatriate adjustment and cultural distance on job performance

Job Performance Job Performance Job Performance Explained variable β t β t β t Expatriate Adjust- .293 3.837*** .294 3.553** .284 3.687*** ment Cultural distance -.002 -.026 .100 1.551 Expatriate Adjust- ment * Cultural dis- .210 4.325*** tance .114 .114 .241

Adjusted △ .107 .099 .221

F 14.726*** 7.299** 11.863*** *** p< 0.001

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Table 12. Moderating effects of the interaction between social support and family-work conflict on job performance

Job Performance Job Performance Job Performance Explained variable β t β t β t Social Support .527 6.617*** .504 5.817*** .4527 6.164*** Family-Work Con- -.060 -.694 -.957 -.671 flict Social Support * Family-Work Con- -.183 -2.325 flict .278 .281 .341

Adjusted △ .271 .268 .295

F 43.788*** 22.036*** 17.065*** *** p< 0.001

Table 13. Moderating effects of the interaction between social support and family-work conflict on organizational commitment

Organizational Organizational Organizational Explained variable Commitment Commitment Commitment β t β t β t Social Support .669 9.601*** .628 8.352*** .599 8.266*** Family-Work Con- -.104 -1.377 -.107 -1.492 flict Social Support * Family-Work Con- .226 3.381** flict .447 .456 .507

Adjusted △ .442 .447 .493

F 92.177*** 47.399*** 38.327*** ** p< 0.01, *** p< 0.001

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Table 14. Moderating effects of the interaction between organizational commitment and family-work conflict on job performance

Job Performance Job Performance Job Performance Explained variable β t β t β t Organizational .566 7.333*** .543 6.586*** .605 7.757*** Commitment Family-Work Con- -.067 -.809 -.039 -.502 flict Organizational Commitment * Fam- -.316 -4.321*** ily-Work Conflict .321 .324 .421

Adjusted △ .315 .312 .405

F 53.778*** 27.135*** 27.143*** *** p< 0.001

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A STUDY OF INNOVATIVE LEISURE SPORTS CONCEPT – THE INFLUENCE OF TRIATHLON LEISURE FIT AND FLOW EXPERIENCE ON HAPPINESS: FLOW EXPERIENCE AS A MEDIATOR

Yu-Chih Lo Department of Leisure Industry Management National Chin-Yi University of Technology, Taiwan [email protected]; [email protected]

Abstract

This study aims to explore the influence of triathlon participants' leisure fit and flow experience on happiness. A questionnaire survey on participants in the 2016 Hualien Cup International Triathlon Contest was conducted. Using convenience sampling in the on-site survey, 150 effective samples were obtained. The following insights were discovered: 1. needs-supplies fit has a positive influence on the production of happiness; 2. needs-supplies fit has a positive influence on the production of flow experience; 3. demands-abilities fit has a positive influence on the production of flow experience; 4. flow experience has a positive influence on the production of happiness; and 5. flow experience has a partial mediation effect over "the relations between demands-abilities fit and happiness." It is expected that the findings of this study will serve as a reference for governmental agencies, civil organizations and businesses in the promotion of triathlon.

Keywords: Leisure Fit; Flow Experience; Happiness; Triathlon

Introduction ing an upward trend. Among the twenty countries with the highest numbers of In recent years, the triathlon has triathlon participants, Taiwan was become increasingly popular among ranked No. 13, with the number of par- sports enthusiasts around the world. Ac- ticipants reaching 30 thousand (ITU, cording to 2013 statistics garnered by 2014). These figures show how popular the International Triathlon Union (ITU), triathlon has become. Triathlon is a the number of triathlon participants competition involving three sports: around the world grew from 1.3 million swimming, cycling and running. It is a in 2009 to 2.01 million in 2013, indicat- demanding endurance competition; con- 318 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

testants have to cope with various dis- Part of the pleasure is contributed tances, environments and switching be- by the flow experience. According to tween sports, as well as adapting to the Jacks and Csikszentmihalyi (1999), flow musculature and cardio-respiratory experience only happens among highly status after each sport, to be able to devoted participants. When experiencing achieve outstanding results. In other flow, athletes feel strong and unafraid. words, triathlon emphasizes an individ- They are able to concentrate and merge ual's adaptation to different environ- their action and awareness, thus com- ments and comprehensive sports skills. pleting moves almost effortlessly. Such As there are more and more triathlon an experience is often the most pleasant competitions, participants also stress the moment athletes can have when doing conditions of environments where com- exercises, so it tends to remain deep in petitions are held, including the condi- their memories. A flow experience is so tions along swimming routes (such as pleasant and rewarding that these ath- wave elevation), and traffic control letes are constantly trying to achieve that along biking or running routes. Whether status to gain greater pleasure and or not contestants are able to complete achievement. In other words, in addition each of the three sports without experi- to appropriate environments, making encing dizziness, cramps, or blisters de- triathlon participants feel that they are pends on how well they trained. In other capable of completing the challenges words, how to achieve compatibility be- can help them devote their efforts to tween the abilities of contestants and the competitions because it gives them a environments of competitions is being pleasant experience. Ho (2012), who emphasized among organizers and con- shares this view, discovered a positive testants of triathlons. In this regard, lei- correlation between environment fit and sure and recreation fit may serve as a flow experience. Therefore, exploring theoretical basis for a discussion on this the correlation between flow experience issue. According to Tsaur, Chang, Cai and triathlon participants from the aspect and Lin (2008), in their research on lei- of environment fit is one of the focuses sure and recreational activities, they dis- of this study. cussed recreationist-environment fit (R- E fit), a relatively innovative concept, In addition to seeking flow experi- which refers to the compatibility of the ence, triathlon participants also feel interaction between recreationists and happy about how their training helps the recreation environment. When the them achieve their goals in the competi- recreationalists and the environments tions, and how they can strike a balance share similar properties, there will be between their abilities/skills and the de- compatibility in their interactions. In gree of difficulty of the competitions. other words, when the environments of Such a positive emotion results in hap- triathlon competitions meet the expecta- piness. This viewpoint meets the per- tions of the participants, who have a cer- spective of Buss (2000), that happiness tain level of abilities and skills, the par- is a feeling an individual has for a mo- ticipants will not only enjoy the compe- ment or even an entire lifetime when tition, but also fit into the environments, s/he feels that life is meaningful and thus obtaining better results or more pleasant because her/his aspirations have pleasant experiences. been fulfilled. Therefore, this study also focuses on exploring the influence of

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flow experience on happiness. Chang similar values shared by recreationists (2011) holds that happiness is an overall and environment managers, the ability feeling an individual has for cognitive, of environments to satisfy the needs of emotional and psychological soundness. recreationists, and the ability of recrea- While it is a subjective feeling of an in- tionists to meet the demands of envi- dividual, it can also be affected by ex- ronments. Their theory has made up for ternal factors. Therefore, this study also the shortcomings of previous studies aims to explore the influence of triathlon which neglected environments' demands participants’ environment fit on happi- on recreationists. Based on their view- ness. Based on the aforementioned mo- point, how recreationists obtain wonder- tives, this study uses the participants in ful experiences depends not only on the 2016 Hualien Cup International Tri- their own abilities, but also on the rele- athlon Contest as its subjects to explore vant environments. Their viewpoint is the influence of leisure fit and flow ex- similar to that of Lu (2012), who be- perience on happiness, with flow experi- lieves that environment fit is the result ence as a mediator. of the interaction between an individual and an environment. There are two key Literature Review points in Lu's theory: 1. the resources, functions and ideas of an environment Previously, the concept of fit was are consistent with the expectations of mostly used in the research on organiza- an individual, and 2. the knowledge, ex- tional management (Kristof, 1996; periences and professional abilities of McCulloch & Turban, 2007; Moynihan the individual meet the demands of the & Pandey, 2008). It was mainly used to environment. In the case of this study, explore if an organization met the needs leisure environment fit, on the one hand, of an individual (or vice versa), or if the refers to whether or not a triathlon com- compatibility between the two stemmed petition venue is well-organized and from important similarities between well-staffed, and includes routes that are them. In other words, when the charac- planned by professionals. The software teristics of a job match the expectations and hardware facilities are the factors of an employee, there is a good fit be- affecting participants' evaluation of the tween them. With people becoming in- competition. On the other hand, it refers creasingly fond of perusing wonderful to whether or not the participants have a leisure and recreation experiences, the certain level of knowledge and skills previous approach of exploring the demanded by the competition. Only process of leisure and recreational ac- when there is a balance between the two tivities merely through the perspective is it possible to improve the so-called of recreationists is apparently insuffi- leisure fit. In their study on the relations cient. Tsaur, Liang and Lin (2012) were among R-E fit, situational involvement the first to apply the concept of person- and flow, Tsaur and Ku (2015) put R-E environment fit in organizations to the fit into three categories. The first one is field of recreation, and proposed the supplementary fit, which refers to the concept of recreationist- environment fit compatibility between recreationists and (R-E fit), which defines the compatibil- environment managers in terms of the ity between recreationists and recreation similar values their share. The second environments. According to Tsaur, Li- one is demands-abilities fit, which ang and Lin (2012), R-E fit includes means that recreation environments de-

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mand that recreationists should have are completely attentive to an activity, relevant knowledge, skills and experi- and that the effect of flow experience is ences. The last one is needs-supplies fit, to make people value the process instead which is discussed from two aspects. of the result. Csikszentmihalyi (1997) From the interactions between recrea- identifies nine characteristics of flow tionists and activities, the recreationists' experience to derive a more accurate needs include activity attributes, recrea- evaluation of flow experience: 1. a bal- tion benefits and recreation experiences. ance between challenges and skills; 2. From the interaction between recreation- clear goals; 3. specific feedbacks; 4. ac- ists and facilities, the recreationists' tion and awareness are merged; 5. par- needs include natural resources, man- ticipants completely concentrate at the made facilities and recreation benefits. moment; 6. a sense of control; 7. self- The categorization shows that now R-E consciousness disappears; 8. the sense of fit not only considers personal percep- time becomes distorted; and 9. the ex- tion, but also environmental factors, perience is itself goal-oriented. These making the theory even more compre- nine characteristics show that in terms of hensive. In terms of criteria, Tsaur and balance, flow experience and leisure fit Lin (2012) use the six aspects of envi- share similar concepts. For example, in ronment resources, social opportunities, leisure fit, the aspect of knowledge and environment functions, environment fa- skills related to an activity is similar to cilities, knowledge/skills about activi- the concept of balance between chal- ties, and management. In other words, lenges and skills, as well as the sense of they use these six aspects to explore how control mentioned in flow experience. participants really feel, in order to per- Besides, in leisure fit, the aspect of re- fect R-E fit. sources, functions and facilities of a recreation environment is also similar to the Aside from pursuing benefits con- concept of specific feedbacks mentioned sistent with personal requirements, peo- in flow experience. Moreover, both lei- ple also expect to obtain satisfying ex- sure fit and flow experience have em- periences and focus on activities through pirical bases provided by relevant stud- their participation in the activities. Ac- ies (Kuo, 2014; Huang, 2015). cording to Csikszentmihalyi (1990), the so-called flow experience is a state of People desire to obtain wonderful mind. When taking part in a challenging life experiences through their engage- activity that matches their abilities, peo- ment in sports or interactions with oth- ple experience flow if they are com- ers. This helps them enhance their sense pletely devoted and attentive to the ac- of self-worth and realize their potential tivity, pay no heed to events irrelevant to to achieve their goals, thus incurring a the activity, and complete the activity. In sense of happiness. According to Brad- other words, flow experience is an opti- shaw, Keung, Rees and Goswami mal feeling that people will have when (2011), happiness is a multifaceted con- there is a balance between their skills cept consisting of emotional and cogni- and the challenges of the activity. Ghani, tive elements, including: 1. pleasant Supnick and Rooney (1991) further emotions (positive influence), 2. nega- identify two major features of flow ex- tive emotions like grief and discontent perience, which are that flow experience (negative influence), and 3. evaluation leads to a sense of enjoyment if people of the quality of personal life (including

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satisfaction with life as a whole and on happiness (Chen & Lin, 2011; Chien, about particular aspects of life). In other 2015), and that leisure fit has a positive words, happiness is a relatively subjec- influence on happiness (Lee, 2015). tive individual perception. Chang (2012) Given that there are still insufficient shares a similar concept and holds that studies on leisure fit, this study uses the happiness is an individual's satisfaction participants in the 2016 Hualien Cup about his/her life as a whole and his/her International Triathlon Contest as its evaluation of the sum of both positive subjects, in order to explore the relations and negative emotions. It covers the as- among leisure fit, flow experience and pects of cognitive, emotional, physical happiness. and mental well-being, and is a subjective perception based on an individual's Methodology free evaluation of relevant evidence. Previous studies hold different theories Subjects in terms of their discussions on happiness. Chen (2016) sorted through the In this study, the participants in the relevant literature and proposed the fol- 2016 Hualien Cup International Triath- lowing categorization. First, in need- lon Contest were selected as the sub- satisfaction theory, people feel a sense jects. With the adoption of convenience of happiness only when their needs are sampling in an on-site survey, the author satisfied. They can also obtain happiness issued 165 copies of questionnaire and by realizing their goals and participating recovered 155 copies, for a 93.9% rein the process of realization. Secondly, covery rate. After excluding five copies in personality theory, happiness depends with incomplete items, there were 150 on personal traits or memory network to valid copies left, constituting a 90.9% give rise to different degrees of happy valid recovery rate. feelings. People with an extroverted personality and positive memory network Tools have a higher degree of happiness; oth- erwise, they have a lower degree of hap- This study adopted a questionnaire piness. Moreover, in judgment theory, survey strategy. The content of the ques- happiness is the result of reference and tionnaire is divided into five aspects: comparison. It means that happiness is “personal information”, “needs-supplies obtained based on an individual's values, fit”, “demands-abilities fit”, “flow ex- previous life experiences, and compari- perience” and “happiness.” The scales of son between others' lives and the indi- “needs-supplies fit”, “demands-abilities vidual's ideal life. Finally, in dynamic fit” and “flow experience” were modi- equilibrium theory, happiness is subject fied based on the scales of Tsaur, Liang, to the influence of long-term stable per- Hsu and Lin (2015), whereas the scale sonalities and short-term life events. of “happiness” was modified based on When there are changes in life, the sense Lin (2004). The questionnaire was de- of happiness will change as well. The signed by using a five-point Likert-type abovementioned categorization shows scale from five for “strongly agree” to the diverse explanations of happiness one for “strongly disagree.” The aspect proposed by different theories. More- of demographics includes six items: over, previous studies have proven that gender, age, occupation, educational flow experience has a positive influence background, average income per month

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and place of residence. The aspect of Structure needs-supplies fit includes eleven items, the aspect of demands-abilities includes Based on its purpose and relevant lit- nine items, the aspect of flow experience erature, this study constructed a structure includes nineteen items, and the aspect to explore the influence of triathlon leisure of happiness includes twenty items. fit and flow experience on happiness. The structure is shown in Figure 1.

Figure 1. Research Structure

H5: Flow experience has a positive in- Hypotheses fluence on the production of happiness. Based on its purpose and relevant literature, this study proposes the following hypotheses. H6: Flow experience has a mediation effect over the relation between H1: Needs-supplies fit has a positive needs-supplies fit and happiness. influence on the production of happiness. H7: Flow experience has a mediation effect over the relation between H2: Needs-supplies fit has a positive demands- abilities fit and happi- influence on the production of ness. flow experience. Data Analysis H3: Demands-abilities fit has a positive influence on the production of This study first used SPSS 20.0 to flow experience. conduct a descriptive analysis of the demographic variables. It then used H4: Demands-abilities fit has a positive Smart PLS 2.0 to analyze the relations influence on the production of among variables and to verify the ra- happiness. tionality of its research model.

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Results And Analysis In terms of education background, the majority of them graduated from univer- Analysis of Personal Information sity/college (96 persons, 64.0%). In terms of average income per month, the Among the valid samples, in terms majority of them have an income of un- of gender, the majority of the subjects der (and including) 10,000 NTD (39 are male (110 persons; 73.3%). In terms persons, 26.0%). Finally, in terms of of age, the majority of them are between place of residence, the majority of them 21 to 30 years old (57 persons; 38.0%). live in northern Taiwan (63 persons, In terms of occupation, the majority of 42.0%). Table 1 shows the statistics of them are students (56 persons, 37.3%). the 150 subjects.

Table 1. Statistics on Personal Information

Items Options Numbers Percentage

Male 110 73.3 Gender Female 40 26.7

Under (include) 20 22 14.7

21 to 30 57 38.0

Age 31 to 40 41 27.3 41 to 50 22 14.7

Over (Include) 51 8 5.3

Student 56 37.3

Serviceman/woman, 23 15.3 policeman/woman, civil servant, teacher

Industry, commerce, 42 28.0 Occupation and service Agriculture, 6 4.0 forestry, fishery, and husbandry

Retired 4 2.7

Other 19 12.7

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Junior High School 6 4.0 (or below)

Senior High School/ 18 12.0 Educational Vocational High Background School University/ College 96 64.0

Graduate Institute 30 20.0 (or above)

Under (include) 39 26.0 10,000 NT$

10,001 to 20,000 17 11.3 NT$

20,001 to 30,000 16 10.7 Average Income per NT$ Month 30,001 to 40,000 22 14.7 NT$

40,001 to 50,000 26 17.3 NT$

50,001 (or more) 30 20.0 NT$

Northern Taiwan 63 42.0

Central Taiwan 25 16.7 Place of Residence Southern Taiwan 15 10.0

Eastern Taiwan 47 31.3

values are all higher than 0.6, and fac- Evaluation of Measurements tor loadings are all higher than 0.7. Therefore, the model of this study has Convergent Validity convergent validity (Fornell and Larcker, 1981). Convergent validity means that the measurements of multiple variables In terms of indicator reliability, all lead to the same potential concept. Chin (1998a) points out that the indica- Table 2 shows that the AVE values of tor loading should be higher than 0.7. all variable are all higher than 0.5, CR In the aspect of needs-supplies fit in 325 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

this study, the indicator reliability of labeled as a24, a25 and a26) is lower items 6, 7, 8, 10 and 11 (respectively than 0.7. In the aspect of happiness, labeled as a6, a7, a8, a10 and a11) is items 4, 10, 18, 19 and 20 (respectively lower than 0.7. In the aspect of de- labeled as c4, c10, c18, c19 and c20) is mands-abilities fit, the indicator reli- lower than 0.7. Therefore, this study ability of items 16, 17, 19 and 20 (re- removed items with an indicator load- spectively labeled as a16, a17, a19 and ing of lower than 0.7, namely a6, a7, a20) is lower than 0.7. In the aspect of a8, a10, a11, a16, a17, a19, a20, a24, flow experience, the indicator reliabil- a25, a26, c4, c10, c18, c19 and c20. ity of items 24, 25 and 26 (respectively

Table 2. Reliability and Validity

Aspects Variables Factor AVE Composite R Square Loading Reliability

a1 0.883

a2 0.856

a3 0.818 Needs-supplies Fit 0.652 0.918 a4 0.750

a5 0.778

a9 0.760

a12 0.870

a13 0.886

Demands-abilities Fit a14 0.860 0.715 0.925

a15 0.857

a18 0.748

Flow Experience a21 0.738 0.574 0.889 0.427

a22 0.849

a23 0.769

a27 0.752

a28 0.713

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a29 0.718

c1 0.721

c11 0.740

c12 0.818

c13 0.744

c14 0.772

c15 0.788

Happiness c16 0.813 0.611 0.953 0.226

c17 0.768

c2 0.835

c3 0.829

c5 0.795

c6 0.756

c7 0.778

nation (R2) of regression analysis. If R2 Discriminant Validity is greater than 0.67, the model has practical value. If R2 is around 0.33, Discriminant validity tests the the model has moderate explanatory 2 degree of discrimination among power. If R is around 0.19, the model has weak explanatory power (Chin, aspects. The correlation coefficient 1998b). Table 2 shows that the R2 of matrix in Table 3 shows that the square this study is 0.266 and 0.427, meaning root of the AVE value of a given that the model has moderate and nearly aspect is apparently greater than the good explanatory power. absolute value of correlation coefficient between any two aspects, Path Analysis proving that the scale of this study has This study uses the PLS model to discriminant validity. examine its hypotheses. Figure 2 shows the results of the examination. Linear Relationship Analysis Needs-supplies fit → happiness (path coefficient =0.241; T value =2.566), Linear relationship is usually ana- Needs-supplies fit → flow experience lyzed with the coefficient of determi- (path coefficient =0.203; T value =2.308), demands-abilities fit → flow 327 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

experience (path coefficient =0.496; T Hsu (2006). It means that among the value =5.680), demands-abilities fit → participants of the Hualien Cup Inter- happiness (path coefficient =-0.095; T national Triathlon Contest, those with value =0.854), flow experience → more knowledge and skills about the happiness (path coefficient =0.371; T competition tended to experience flow value =3.500). It shows that H1, H2, during the process, which in turn indi- H3 and H5 have a significant positive rectly affected the degree of happiness influence, meaning that the results they perceived. support the four hypotheses (as shown in Table 4). This study used the Sobel Test proposed by Sobel (1982) to examine Table 4 shows that H1 of this if the indirect effect reaches signifi- study is valid, which is consistent with cance, so as to determine if there is any the finding of Lee (2015). It means that mediation effect. If the T value is when the resources, functions and greater than 1.96, there is a mediation ideas related to an environment meet effect; if not, there is no mediation ef- the expectation of participants, the par- fect. If there is a mediation effect, the ticipants tend to experience happiness efficacy of a mediator can be deter- through the process. H2 of this study is mined through the examination of the valid, which is consistent with the find- relationship between its direct and in- ing of Tsaur and Ku (2015). It means direct effects. If both direct and indi- that if the venues or facilities of the rect effects show significance, the me- Hualien Cup International Triathlon diator has a partial mediation effect. If Contest could be better equipped, the the indirect effect shows significance, participants could focus more on exert- whereas the direct effect shows insig- ing their abilities without being af- nificance, the mediator has a complete fected by other factors. H3 of this mediation effect. This study used flow study is valid, which is similar to the experience as a mediator to explore the finding of Huang (2015). H4 of this influence of needs-supplies fit and de- study is invalid, which is consistent mands-abilities fit on happiness, so it with the finding of Tsaur, Liang, Hsu examined the mediation effect of flow and Lin (2013). H5 of this study is experience. Table 5 shows that with valid, which is similar to the finding of flow experience as a mediator variable, Chen and Lin (2011). It means that needs-supplies fit has no mediation when they were fully devoted to the effect over happiness (β=0.075, t- competition, participants of the value=1.901), meaning that the result Hualien Cup International Triathlon does not support H6. On the contrary, Contest excluded senses irrelevant to demands-abilities fit has a mediation the competition and felt a sense of sat- effect over happiness (β=0.184, t-value isfaction by enjoying the competition. = 2.984), meaning that the result sup- H6 of this study is invalid, showing ports H7. that needs-supplies fit does not have a significant influence on the production Suggestions and Conclusions of happiness through flow experience. H7 of this study is valid, showing that Based on the empirical analyses, this flow experience has a partial mediation study derives the following conclu- effect. It is similar to the finding of sions.

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i. H1 of this study is valid, meaning happiness. that needs-supplies fit has a significant effect over happiness. v. H5 of this study is valid, meaning that flow experience has a ii. H2 of this study is valid, meaning significant effect over happiness. that needs-supplies fit has a significant effect over flow vi. H6 of this study is valid, meaning experience. that flow experience has a mediation effect over the iii. H3 of this study is valid, meaning relationship between needs- that demands-abilities fit has a supplies fit and happiness. significant effect over flow experience. vii. H7 of this study is partially valid, meaning that flow experience has a iv. H4 of this study is invalid, partial mediation effect over the meaning that demands-supplies fit relationship demands-abilities and has no significant effect over happiness.

Table 3. Correlation Coefficient Matrix of All Aspects

Flow Demands-abilities Happiness Needs-supplies Fit Experience Fit

Needs-supplies Fit 0.808

Happiness 0.377 0.782

Flow Experience 0.547 0.442 0.757 Demands-abilities 0.694 0.308 0.636 0.845 Fit

Note. The bold figures at the diagonal are the square roots of AVE value.

Table 4. Results of Hypothesis Examination

Hypotheses Path T-value Results of Coefficients Examination

H1 Needs-supplies Fit → Happiness 0.241 2.566 Valid

H2 Needs-supplies Fit → Flow 0.203 2.308 Valid Experience

H3 Demands-abilities Fit → Flow 0.496 5.680 Valid

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Experience

H4 Demands-abilities Fit → -0.095 0.854 Invalid Happiness

H5 Flow Experience → Happiness 0.371 3.500 Valid

Figure 2. Results of Hypothesis Examination

Table 5. Direct Effects, Indirect Effects and Overall Effects of the Model

Needs-supplies Fit  Flow Demands-abilities Fit  Flow Experience  Happiness Experience  Happiness Indirect 0.075 0.184 Effects Direct Ef- 0.093 0.104 fects Overall Ef- 0.168 0.288 fects T Values 1.901 2.984 Results Without Mediation Effect With Mediation Effect

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Suggestions This study shows that needs- supplies fit has a significant effect on Based on its findings, this study happiness. In other words, when the proposes the following suggestions: organizer of the Hualien Cup Interna- tional Triathlon Contest provides soft- To Participants of the Hualien Cup ware and hardware facilities that meet International Triathlon Contest the needs of participants, as well as a safe and sound competition environ- H3 of this study shows that the ment, it will directly and positively af- demands-abilities fit has a significant fect the emotions of participants. effect over flow experience. Therefore, Therefore, it is suggested that the or- it is suggested that participants partici- ganizer continue its practice of making pate in competitions compatible with the competition the only one of its kind their abilities and choose suitable gear, in Taiwan, with all roads and streets such as waterproof wetsuits that do not along the competition routes closed for entail a sense of tightness around chest, traffic control. In so doing, after par- and triathlon bikes fit by experts. It is ticipants depart from the starting point then suggested that participants design at the northern pier of Carp Lake, they suitable training programs and nutri- can fully exert their abilities and enjoy tion aid plans for the race day to im- the competition, which consists of 1.5 prove their physical fitness, including kilometers of swimming route, 40 their cardio-respiratory endurance for kilometers of biking route, and 10 swimming, and the stability of their hip kilometers of running route. It is also joints for cycling and running. Partici- suggested that the organizer provide pants' experience in competition also more shelters for the running route helps them to improve their demands- along Carp Lake, so that participants abilities fit. In the case of triathlons, will feel more comfortable against the experienced participants will undergo backdrop of the lake view and have transition training, given that they will greater satisfaction during the competi- experience two transitions to the fol- tion. The organizer must also under- lowing sports. Some experienced par- stand that in addition to obtaining a ticipants even carry out cross-training sense of achievement at the psycho- among the three sports to improve the logical level, participants are also strength of their feet. By improving drawn to natural environments, cul- their abilities through the abovemen- tures, and local delicacies in places tioned suggestions, participants can near the competition venue. Therefore, acquire adequate skills to overcome it is suggested that the organizer work challenges in the competitions. When with outstanding lodging providers and there is a balance between challenges restaurants to provide participants with and skills, participants will enjoy the accommodation and dining discounts competitions, and thus experience flow and complete traffic information. Also, and obtain happiness. most participants tend to arrive in places near the competition venue a To Organizer of the Hualien Cup In- day earlier. For them, the experiences ternational Triathlon Contest related to accommodation, dining and buying local specialties make it more than just a triathlon competition; rather

331 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

it becomes a journey. Hence, if the or- find it worthwhile to explore the influ- ganizer provides fun events in addition ence of leisure fit on place attachment. to the engagement of the competition, it will have a stronger positive influ- Conclusion ence on participants' emotions. With the effort of relevant governmen- Suggestions for Future Studies tal agencies, many excellent triathlon competitions have been held in places In addition to expanding the ap- known for their attractive natural scen- plication of the leisure fit theory, this eries, such as Taitung, Pingtung and study has contributed to the theory by Hualien. Many civil organizations like serving as a reference for further stud- LAVA, IRONMAN TAIWAN and ies, thus enriching relevant studies. In Challenge Taiwan have also organized terms of practical contribution, this competitions with different degrees of study highlights the fact that in the era challenges. Their efforts have helped of greater awareness of consumer make triathlon a popular event for rights, although it is impossible for any sport enthusiasts. In addition to appro- competition to be perfectly satisfactory priate places and time, the quality of in every aspect, the organizer of a staff, number of aid stations, planning competition can provide more thought- of routes, and traffic control are also ful services through the perspective of factors affecting the reputation of a consumers. Hence, the suggestions competition. A well- organized triath- provided by this study to the organizer lon competition can not only increase of the Hualien Cup International Tri- the visibility of the organizer and fa- athlon Contest can in fact serve as a cilitate local tourism, but also offer reference for organizers of other triath- wonderful experiences and generate lon competitions. In terms of future positive feelings among the partici- studies, it is discovered that some par- pants. Based on the leisure fit theory, ticipants attend a given competition this study explores the influence of lei- every year because they like the place sure fit and flow experience of partici- where the competition is held. They pants of the Hualien Cup International develop a sense of familiarity related Triathlon Contest on happiness, and to the place and feel like they are a part provides suggestions to the participants of it. Therefore, future studies may and organizer based on its findings.

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Unpublished master’s thesis, Csikszentmihalyi, M. (1990). Flow: Graduate Institute of Education, The psychology of optimal ex- Taiwan Shoufu University, perience. NY: Harper Collins. Tainan, Taiwan. Fornell, C. & Larcker, D. F. (1981). Chen, H. L. & Lin, A. T. (2011). A Structural equation models with study on the relationships among unobservable variables and mountain-climbing participants' measurement error: algebra and involvement, flow experience statistic. Journal of Marketing and well-being. Journal of Tai- Research, 18, 382-388. wan Society for Sport Manage- ment, 11(1), 25-50. Ghani, J. A., Supnick, R. & Rooney, P. (1991). The experience of Chen, H. C. & Lin, A. T. (2011). A flow in computer-mediated and study on the relationships among in face-to-face groups, In Pro- mountain-climbing participants' ceedings of the Twelfth Interna- involvement, flow experience tional Conference on Information and well-being. Journal of Tai- Systems, New York, NY, U.S.A. wan Society for Sport Manage- ment, 11(1), 25-50. Ho, H. H. (2012). Relationships among recreation specialization, Chien, W. C. (2015). Research on lei- recreationist-environment fit and sure sport participating motiva- flow experience. Unpublished tion, flow experience and well- master’s thesis, Graduate Pro- being: Case of biking sport. Un- gram of Sustainable Tourism and published master’s thesis, Recreation Management, Na- Graduate Program of Business tional Taichung University of Administration, Chaoyang Uni- Education, Taichung City, Tai- versity of Technology, Taichung, wan. Taiwan. Hsu, C. Y. (2006). A Study on the Chin, W.W. (1998a). Issues and opin- conceptualization of leisure fit ion on structural equation model- and its effect onto well-being. ing. Management Information Unpublished master’s thesis, Systems Quarterly, 22, 7-16. Graduate Institute of Tourism Management, Chinese Culture Chin, W.W. (1998b). The partial least University, Taipei, Taiwan. squares approach to structural equation modeling, In Modern Huang, K. T. (2015). A Study on the Methods for Business Research, impacts on the recreationist- Marcoulides, G.A. (ed.), Law- environment fit, flow experience rence Erlbaum Associates, NJ: and place attachment by the in- Mahwah. ternal travelers: A case study of Sun-Moon Lake travelers. Un- Csikszentmihalyi, M. (1997). Finding published master’s thesis, flow: The psychology of engage- Graduate Institute of Leisure ment with everyday life. NY: Service Management, Chaoyang Harper Collins. University of Technology, Taichung, Taiwan.

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International Triathlon Union (ITU). Chouchai Wetland Park in (2014). Global triathlon partici- Kaohsiung. Unpublished master's pation. Retrieved from thesis, Graduate Institute of http://triathlonquebec.objectif226 Landscape and Recreation, Feng .ca/wp- Chia University, Taichung City, content/uploads/2012/03/ITU- Taiwan. Global-Triathon-Participation- Survey-NF.pdf McCulloch, M. C. & Turban, D. B. (2007). Using person– Kristof, A. L. (1996). Person- organization fit to select employ- organization fit: An Integrative ees for high-turnover jobs. Inter- Review of Its Conceptualiza- national Journal of Selection and tions, Measurement, and Implica- Assessment, 15(1), 63-71. tions. Personnel Psychology, 49, 1-49. Moynihan, D. P. & Pandey, S. K. (2008) .The ties that bind: Social Kuo, H. Y. (2014). A Study of impacts networks, person-organization on the recreationist-environment value fit, and turnover intention. fit, flow experience and place at- Journal of Public Administration tachment by the adventure rec- Research & Theory, 18(1), 205- reationist. Unpublished master’s 227. thesis, Graduate Institute of Tourism and Leisure Manage- Tsaur, S. H., Chang, T. Y., Cai, P. W., ment, National Penghu Univer- & Lin, W. R. (2008). Recreation- sity of Science and Technology, ist-environment fit: Conceptuali- Penghu, Taiwan. zation and measurement. In 10th Leisure, Recreation, and Tourism Lee, M. L. (2015). Research on Research Symposium and Inter- SCUBA diving leisure-fit. Un- national Forum. Taipei: National published master's thesis, Gradu- Taiwan University. ate School of Business and Ad- ministration, Shu-Te University, Tsaur, S. H. & Lin, W. R. (2012). An- Tainan, Taiwan. tecedents and consequences of recreationist-environment fit: A Lin, Y. M. (2004). Research on study of Mt. Yushan climbers. swimmers' exercise of adherence Journal of Outdoor Recreation in benefits of leisure and wellbe- Study, 25(4), 79-98. ing. Unpublished master's thesis, Graduate School of Leisure and Tsaur, S. H. & Ku, P. S. (2015). The Exercise Studies, National relationships among R-E fit, situ- Yunlin University of Science and ational involvement and flow. Technology, Yunlin County, Physical Education Journal, Taiwan. Recreationist- 48(2), 205 – 219. environment fit: Conceptualiza- tion and measurement. Tsaur, S. H., Liang, Y. W., Hsu, C. Y.,& Lin, W. R. (2013). Devel- Lu, Y. K. (2012). A study on the influ- opment and empirical test of the ences of fitness of environmental hypothetical leisure fit model. education site on visitors' envi- Journal of Physical Education in ronment literacy: A case study of 334 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

Higher Education, 15(1), 12 – 20.

Tsaur, S. H., Liang, Y. W. & Lin, W. R. (2012). Conceptualization and measurement of recreationist- environment fit. Journal of Lei- sure Research, 44(1), 108-128.

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Railway landscape open space district Five minute car ride experience

Sugar can field maze Albizia theatre.

Dorm area Installation art

Figure 1: Location and tourist guide of Ciaotou Creative Park. Figure 3. Ciaotuo sugar factory area map No.2 Data source：Taiwan Sugar Museum，http://www.tscleisure.com.tw/museum/tour.htm (http://analysinggreendesign.wordpress.com/the-projekt/)

336 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017

337 The International Journal of Organizational Innovation Vol 10 Num 1 July 2017