Charity trail...page 8
Inside
this
issue:
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he School joined hands with corporate sponsor Shui On Construction and Materials Limited to deliver a Distinguished Lecture in October featur ing Daniel Goleman, the originator of the Emotional Intelligence (EI, or more commonly referred to as EQ) concept. The talk attracted an audience that filled the largest l e c t u r e t h e a t e r o n c a m p u s . Some 400 guests, including corporate executives, professors, administrators, alumni, students and members of the press attended the lecture.Sponsor Dr Vincent Lo, also the University’s Council Chairman, said the purpose of the lecture was to drive home the message of the importance of building leadership capabilities. He made the remarks as he welcomed Dr Goleman whose topic was befittingly entitled “What Makes a Leader?”
Echoing his view, Dean Yuk-Shee Chan said, “whether it is the New Economy or the Old Economy, without good leader-ship, it will be hard for any business to succeed.”
I n h i s t a l k , D r G o l e m a n e x p l a i n e d h o w e m o t i o n a l intelligence competencies directly impact business performance. The psychologist designated four major types of competencies in his framework, namely, self-awareness, self-management, social awareness and social skills. Improvement of skills in each category has a positive impact on business performance according to research data.
D r G o l e m a n s a i d t h a t a comparison between the impact of EQ and IQ on star performance in
T
he HKUST Business School has established a local chapter of Beta Gamma Sigma, one of the world’s most respected academic honors societies. This follows the School’s accreditation in 1999 by AACSB – The International Association for Management Education, which makes the School one of the first outside the United States and Canada eligible to set up a Beta Gamma Sigma local chapter. Professor Dennis Weidenaar, Beta Gamma Sigma’s Vice-President, traveled to Hong Kong to officiate the chapter’s installation. He presented to Professors Peter Dobson, Associate Vice-President for Academic Affairs, Yuk-Shee Chan, Dean and also the new chapter’s president and Gary Biddle, Accounting Head and chapter secretary a charter that signifies the inauguration of the HKUST chapter. Professor Weidenaar congratulated members who were inducted into the chapter. “Earning membership in Beta Gamma Sigma is an honor that provides a lifetime of benefits and recognition. You are joining a network of more than 440,000 of the world’s top business and management professionals. That’s very elite company,” he said in his speech at the ceremony.HKUST’s Beta Gamma Sigma Chapter has successfully recruited 280 inaugural members, some 70 percent of those who were eligible to join. Eligibility extends to the top 10 percent undergraduate’s and the top 20 percent of the master’s level students, according to their academic scores. PhD students meeting graduation requirements and faculty members who are tenured or have been with the School for six years or more are also eligible. This
DISTINGUISHED LECTURE
FEATURES EQ GURU
any kind of job showed that EQ is by a ratio of 66 percent to 33 percent more important than IQ combined with technical skills. When the comparison is made for jobs requiring leadership skills, the gap widens to 85 percent (EQ) versus 15 percent (IQ/technical skills). He ended the talk on a positive note by explaining that while EQ is very important to one’s success in general, it is something that can be enhanced by proper training and coaching.
Feedback from the audience was very positive. Associate Dean and MBA Director Steve DeKrey commented on Dr Goleman’s success in focusing the world’s attention on these concepts. “Many of us on the faculty do research in these areas and we put such concepts into practice in the design of our overall program offerings and also in our MBA and EMBA admission processes. Dr Goleman’s talk was very relevant to what we do,” he said.
HKUST SETS UP SOCIETY
FOR THE BEST IN BUSINESS
year’s induction was larger than usual as the School was allowed to invite students dating back to 1998, the year when the School went through the AACSB accreditation.
In addition, four prominent business executives were inducted as inaugural chapter honorees. They were Ronnie Chan, Chairman of the Hang Lung Group, Peter Clarke, former Chairman of Merrill Lynch Asia Pacific, Martin Tang, Chairman (Asia) of Spencer Stuart & Associates, and Dr Lawrence Wong, Chief Executive of the Hong Kong Jockey Club.
Dean Yuk-Shee Chan said he felt doubly honored to be the inaugural president of the local chapter as a long-time member of the society since 1977. “The tie between the School and the Beta Gamma Sigma Society will provide opportunities for our top students to exchange ideas, information and expertise with their counterparts and business leaders around the world,” said Dean Chan.
MERCK PROGRAM A ROARING SUCCESS
F
orty-five top executives from Merck Group converged on the HKUST campus during the last two weeks of October for the third p h a s e o f a t wo - ye a r g l o b a l m a n a g e m e n t d e v e l o p m e n t p r o gra m . H e a d q u a r t e r e d i n G e r m a ny, M e r ck h a s m a j o r worldwide operations in the fields of pharmaceuticals, specialtychemicals, lab products, and lab distribution.
The program was offered u n d e r t h e b a n n e r o f M e r ck University in conjunction with four l e a d i n g b u s i n e s s s c h o o l s wor ldwide: HKUST Business School in Asia, Kellogg Graduate S c h o o l o f M a n a g e m e n t a t
Northwestern University in the (cont’d on page 7)
GAMMA SIGMA
For the Best in Business
Daniel Goleman
Professor Peter Dobson (second from left) receives the BGS charter from Professor Dennis Weidenaar while Dean Yuk-Shee Chan (right) and Professor Gary Biddle look on.
USA, London Business School in t h e U K a n d W H U Ko b l e n z Business School in Germany. At HKUST, the program was co-ordinated by Kitty Chan, Director of the Business School’s Executive Programs, and supported by the Executive Programs team.
EXECUTIVE EDUCATION
O
n the last Saturday in September, 30 students from the graduating Graduate Diploma in Management (GDM) classes assembled in the Multipurpose Hall of the University Center to celebrate their successful completion of the program. ThisTHIRD GDM GRADUATION
was the single largest graduating group of GDM students since the program was first launched three years ago. It was also the last group to graduate under the GDM title as the program has now been renamed Executive Diploma in Management (EDM). D e a n Yu k -Shee Chan pre-sented cer tifi-c a t e s t o t h e graduates and c o m p l i m e n t e d them on their ear-n e s t ear-n e s s a ear-n d b r i l l i a n t wo r k . Professor Gary
T
he Business School has recently joined the Cisco Networking Academy Program, a technology-b a s e d c u r r i c u l u m t h a t embraces the elements of e-learning while teaching the fundamentals of planning, building and maintaining c o m p u t e r n e t wo r k s, a n essential skill in the Internet Economy.The School has been awarded regional academy status. Its Department of Information and Systems Management (ISMT) will offer
HKUST JOINS CISCO NETWORKING
ACADEMY PROGRAM
A
t t h e U n i v e r s i t y ’ s E i g h t h Congregation held in November, the School happily gained 949 new alumni (711 BBA/BSc, 43 Kellogg-HKUST EMBA, 178 MBA/MSc, and 17 MPhil/PhD graduates). Counting from the first congregation in 1993, the School now has a total of 5,060 graduates.Representing their fellow graduates, Agnes Cheung (BBA in ISMT), and Jason Tsang (full-time MBA) expressed gratitude to the School and shared their experience at HKUST in their respective speeches.
Cheung likened her study at the HKUST as a drive down a highway that was full of challenging experiences and memorable events. “Life is a journey, and I believe it is not the destination but the journey itself that is most rewarding,” she said.
Tsang said he felt honored to have learned with and from his classmates and found his stay at HKUST valuable, m e m o r a b l e a n d w o r t h w h i l e . H e challenged his fellow graduates to “find
EIGHTH CONGREGATION
F
rom October to December, the School’s MBA Program staff traveled to 15 cities across the world on four continents to promote the program in a bid to expand and diversify the full-time student mix of the next incoming class.This year’s international road show followed the success of similar efforts last year, only that the number of cities visited was increased from the previous year’s 10 to this year’s 15. Typically, an information counter with posters about the program was displayed at each stop. Program representatives, and sometimes current students on exchange, were available to answer questions.
The 15 cities included, in Asia, Toyko, New Delhi, Shanghai, Shenzhen, Singapore, and Hong Kong; in Europe, Frankfur t, London, Manchester, Munich and Paris; in North America, Chicago, Los Angeles, and
MBA PROGRAM TEAM TREADS FOUR
CONTINENTS IN THREE MONTHS
New York; and also Sydney in Australia. The events held in the European cities, New Delhi, Shanghai and Sydney were organized by topmba.com under the umbrella title of World MBA Tour 2000, the remaining stops w e r e o r g a n i z e d b y t h e G r a d u a t e Management Admission Council as MBA Forums, with the exception of the China High Tech Fair held in Shenzhen.
Chris Tsang, Associate Director of Postgraduate Programs, said the road show was expanded to cover more places as results from the 1999 exercise generated very good responses. “The ratio of non-local students in this year’s new class is some four in ten. We hope to achieve an even split between local and non-local students in future classes. In the course of doing that, we also aim to grow the class size by recruiting more suitable candidates,” said Tsang.
two new undergraduate courses to prepare students to take the Cisco Certified N e t w o r k A d m i n i s t r a t o r ( C C N A ) e x a m i n a t i o n a d m i n i s t e r e d b y a n independent testing agency. The two courses are o f f e r e d a s s e q u e n t i a l undergraduate electives for ISMT majors and emphasize hands-on exper ience in n e t wo r k i n g d e s i g n a n d management. Each course uses on-line materials for self-paced learning outside of the classroom, coupled with Biddle, the program’s
Academic Director, earned applause for reciting a poem that he wrote for the GDM graduates. The poem described the dedi-cated wor k, joyous moments and rewards that the graduates ex-perienced during the program.
The new EDM class commenced in November and is due to complete the program in June 2001. The program has added several new modules including Entrepreneurship, and Leadership and
lectures and hands-on lab work every week.
The lab is equipped with state-of-the-art Cisco routers and switches as well as with a variety of cabling and other e q u i p m e n t d e s i g n e d t o fa c i l i t a t e t h e h a n d s - o n learning experience.
As a regional academy, the School will be actively involved in assisting other educational institutions to b e c o m e C i s c o l o c a l academies so that they can also teach similar Cisco courses.
your value” and urged them all “to be good ambassadors for HKUST” in their future endeavors.
This year’s congregation also saw, for the first time, graduates from the Kellogg-HKUST Executive MBA program in attendance. A number of the Kellogg-HKUST EMBA graduates put on their gowns and crossed the stage for the third time for their degree. This group had also participated in their program graduation on the HKUST campus last April and, at their own expense, the Kellogg graduation ceremony last June in Chicago.
Dean Yuk-Shee Chan welcomed the addition of the graduates to the School’s alumni community. “We are proud of our alumni and are delighted to learn that many of them are playing an increasingly important role in the business community. The students whom we are graduating today are every bit as strong. We send them on to pursue their goals with the best wishes from all of us here at the University,” said Dean Chan.
Management of Change, while maintaining the successful structure and core studies design of the GDM program. A series of luncheon talks also has been added to help participants stay abreast of the rapidly changing marketplace.
Dean Yuk-Shee Chan
HKUST Business School
Dean: Yuk-Shee Chan
Associate Deans: K.C. Chan, Steve DeKrey, Kar Yan Tam Newsletter Editors: Elaine Chu, May Hung
Sub-editor: Virginia Unkefer
Contact us: [email protected], fax: (852) 2358 1467 Website: http://www.bm.ust.hk
© 2000 by the School of Business and Management, the Hong Kong University of Science and Technology. All rights reserved.
T
he list of accolades to Justin Lin, one of the School’s China experts, has recently been extended as the Professor of Economics was recognized by two prestigious institutions for his achievements in research.ISI Thomson Scientific, a 40-year-old institution that publishes scholarly bibliographic databases for the global research community, named Professor Lin’s article in the premier journal American Economic Review (1992), “Rural Reforms and Agricultural Growth in China” as one of 47 high impact papers in China. These 47 papers, honored by ISI as Chinese “Citation Classics” of 2000, were authored exclusively by Chinese researchers. Lin’s paper
is the only such notice in the field of economics.
In addition, Lin’s book Institution, Technology, and China’s Agricultural Development, II has won the First Prize from the Beijing Municipality’s Philosophy and Social Science High Quality Research Publication Award.
Professor Lin has been a member of the School’s Economics Department since 1995. He also teaches at Peking University and is the founder and director of the China Center for Economic Research there. Professor Lin splits his time evenly between the two universities.
DOUBLE HONORS FOR CHINA EXPERT
H
KUST business students will be given opportunities to practice what they have learned in real corporate environments, thanks to a series of agreements between the School and major corporations forged to develop outstanding “Young Fellows”.Corporations on board thus far are Ernst & Young and Morgan Stanley Dean Witter Asia. The Ernst & Young Young Fellows Program offers five places to undergraduate business students, while the Morgan Stanley Dean Witter Asia program gives 12 undergraduate or MBA students the benefits of hands-on training.
Students selected by either program will be offered the opportunity to work in different divisions of the company on work-study placements or summer internships. They will also be given financial suppor t for their participation in international student exchange activities. In addition, Morgan Stanley Dean Witter has pledged to support the School’s participation in international case competitions up to four times a year.
Dean Yuk-Shee Chan said he was pleased that corporations are taking a proactive role in the development of talented young people for the future.
Each year, the Young Fellows will be selected based on several stages of screening by both the business school and the sponsors.
MAJOR CORPORATIONS TO HELP
DEVELOP WELL-ROUNDED STUDENTS
Harrison Young, Vice-Chairman of Morgan Stanley Dean Witter Asia and Stephen Lau, Chairman of Ernst & Young Tax Services, both instrumental in setting up their respective p r o g r a m s, w e r e d e l i g h t e d a b o u t t h e establishment of these new formal alliances w i t h t h e S c h o o l . B o t h c o m p a n i e s a r e c o n t i n u o u s l y s e e k i n g t o ex p a n d s t a f f recruitment from the local talent pool.
Connie Chue, one of this year’s Morgan Stanley Young Fellows, said she was happy to be among the first batch of students to benefit from the scheme. “The program offers an excellent opportunity for me to gain business and international exposure in the most practical way,” she noted.
According to Professor Kar Yan Tam, Associate Dean and Director of Undergraduate Programs, more Young Fellows programs are in the pipeline. “The target is to build the size of the Young Fellows programs in terms of the number of scholarships and the number of placements and, at the same time, to broaden the diversity of the types of business involved,” he said.
Justin Lin
Mr Stephen Lau of Ernst & Young Tax Services and Dean Yuk-Shee Chan at the agreement signing ceremony.
Morgan Stanley Dean Witter Young Fellows (back row from second left) Nelson Chow, Keith Yau, Connie Chue and Michael Chu; and the company’s executive director Eddie Ahmed (far left); the School’s MBA placement director Doris Chan look on as a handshake from Mr Harrison Young and Dean Yuk-Shee Chan inaugurates the program.
T
his is the last issue of the Newsletter before we embark on the 21st century,which will also mark the completion of the first decade of the University and the School. Ten years make a brief history for any academic institution, but for all of us, it has been an exciting journey that holds great opportunities,
challenges, and satisfaction. The School has, indeed, come a long way. And, most importantly, without your strong support, it would not have achieved the many significant milestones in the last decade. On behalf of the School, I would like to express our sincere thanks and to wish you a joyful holiday season, and a very happy and prosperous New Year!
We believe that innovation is crucial to the continuous improvement of our institution. Over the years, we have striven to introduce new programs in our curriculum for enhancement and enrichment of the learning experience of our students. The international exchange programs, mentoring programs, and the English language enhancement program – “Writing and Speaking through the Curriculum” – are a few examples. For 2001, one of our major initiatives for the undergraduate business students is the BBA Program in Global Business, which I am delighted to introduce to you in this column.
The purpose of the BBA-Global Business program is to develop future business leaders of Hong Kong by offering a select group of outstanding students a special curriculum with enrichment programs that would expand their horizons with international exposure, foster their critical thinking, and hone their leadership skills. The program will admit only about 25 students each year beginning in Fall 2001. In addition to a specially designed curriculum that emphasizes breadth and critical thinking, the enrichment programs will include a one-semester mandatory exchange program abroad, participation in international case competitions against the world’s top business students, and opportunities for internships or work-study with major corporations. To satisfy diverse interests and support multi-discipline specialization, students in this program can also opt to have a double major of their choice.
We are very excited with the benefits that the BBA-Global Business Program would bring to a select group of students who excel upon challenges. The conception of the program has received very enthusiastic responses from many high school counselors and our advisors and friends from the business community. Collaborative activities with strong corporate support, such as the Young Fellows programs with Ernst & Young and Morgan Stanley Dean Witter Asia (see description on the right), will provide students of this program financial sponsorship as well as valuable training opportunities. We look forward to a successful launch of the program as we celebrate our first 10th anniversary.
E-PUBLISHING CREATES A MARKET FOR ACADEMIC MATERIALS
P
ublishing is a business that envelops us all. It wields a pervasive influence on your daily life – from the morning newspaper that starts your day, through the book that you curl up with on holiday, to the magazine that you read before nodding off to sleep. These are the popular products of an industry founded five centuries ago by Aldus Manutius. Sadly, not all bits of the publishing industry can prove this popular with students. The US$ 9 billion textbook publishing business is perhaps better known for emptying student wallets (when we all know that the money could be spent on ‘better’ things) before spawning semester-long headaches.According to Chris Westland, Associate Professor of Information and Systems Management (ISMT), academic publishers are less than pleased with their own end of the business. The centuries old technologies of print and paper are simply too expensive, cutting publishing profits to the bone even while textbook prices escalate. Academic publishing has the misfortune to occupy a market niche in what Jeff Bezos (CEO and founder of the Internet bookstore Amazon.com) calls the ‘hard middle’ – products whose middling popularity makes profit difficult and customers hard to satisfy.
For example, mass-market publishers such as USA Today can profitably speak to an audience of 12 million, while consultants and corporate intelligence units profitably address an audience of 12; in between is the hard middle – an audience hard to reach, hard to profit from, hard to satisfy. Most academic publishers are uncomfortably but securely ensconced in the hard middle of the publishing industry.
Is it possible, then, to breathe fresh life into academic publishing? Professor Westland believes that it is indeed possible for academic publishing to succeed. It boils down to two things: adept use of technology and targeting the right market.
He and Ted Clark, Associate Professor of ISMT, have since the publication of their MIT Press textbook Global Electronic Commerce: Theory and Case Studies set up a website to experiment with the trading of academic materials through the Internet.
The launch of the site, Global Electronic Commerce Central, was a huge success as their textbook was made available free online. Server statistics indicated that an estimated 100,000 copies of the text were downloaded during the period that it was available on the website global-ecom.org (from August 1999 to December 1999). Despite this highly popular free trial period, the printed version of their book remains very popular.
Since releasing the book in hard copy, the two professors have updated their Global Electronic Commerce Central site to offer text updates and teaching materials, in addition to case studies, slides, software, real-time news, readings, retail affiliates such as Barnes & Noble, and other material for the electronic commerce
class that they teach. The site provides a global repository for course materials about electronic commerce that allows faculty to exchange material through uploads and downloads via the Web.
The site enables a market for classroom materials through its “auction” features. While faculty, quite reasonably, are reluctant simply to give away the products of their labor in preparing a course, it is unlikely that they will find a traditional publisher for their course materials because of high printing and distribution costs. In the field of electronic commerce, the situation is exacerbated by the quick obsolescence of the material.
Through the site’s auction market, instructors who have teaching materials that they wish to sell to other faculty members may make that material available on the http://global-ecom.org server. In so doing, the Web essentially has bypassed physical networ ks of distributors, publishers, salespeople and other market intermediaries, bringing products and services directly to the consumer.
The Global Electronic Commerce Central site offers the potential to make the hard middle timely, attractive and profitable by reengineering the traditional publishing business model, according to Professor Westland. He said combining the Web with publishing tools such as Office, Acrobat, FrameMaker, and PDF Merchant, it is possible for authors to write as well as publish; only the distribution channels remain to be conquered. As many academics worldwide are Web connected, technology available today should make this issue an easy one to resolve. Figure 1 shows Adobe’s vision of Web publishing.
To date, the exchange activities via the site have been encouraging. “The site has provided us with an interesting experiment in electronic publishing, as well as a vehicle to
keep our text up to date in this rapidly changing field,” said Professor Westland.
The greatest novelty of the Web is its worldwide traffic in information unbound to any particular medium – paper, CD, or magnetic. Frictionless, spontaneous and almost limitless flow of information on the Web can be called upon to bolster arguments, flexibly demonstrate points, and expand on issues raised in the text. Electronic academic publishing allows handy integration of features of the Web’s hypertext medium into a book – hyperlinking, interactive chat and paging, colorful graphics, sound, multimedia objects, and so forth.
Professor Westland hopes that their website at the http://global-ecom.org will be used to experiment with new formats for presentations and distribution of material over the
coming years as ways of extending the utility of their best-selling textbook. No one particular medium can convey everything appropriate to a classroom. The best teacher will continue to favor a mixture of modes in the classroom – video, Web displays, classroom discussion, software and corporate visits – to support discussion of the rich set of ideas presented in electronic commerce. “In our classes, we encourage students to experiment; to take time out to explore the Websites referenced in the text; and then to follow the hyperlinks to broaden their horizons,” said Professor Westland. Chris Westland is Head and Associate Professor of Information and Systems Management at HKUST; email: westland@ust. hk
RESEARCH
Based on an article, "Global Electronic Commerce Central: A Real-Time Market for eCommerce Teaching Resources", by Chris Westland. The article was first published in Decision Line (April 2000).
FIGURE 1
T
ommy Choi’s new hair salon in Wanchai features a big TV screen. His intention is to provide his customers some entertainment while they wait to be served. He has chosen some hit music videos that he thinks his clientele would like. The only thing that he has left to consider is if he should contact the Composers and Authors Society of Hong Kong (CASH) so that he has the legal right to play those videos.Tommy is unsure what he will do. He knows that he is legally bound to contact CASH, but he also suspects he will never be caught if he plays the videos without permission and he will save a few dollars as well. Tommy’s dilemma reflects a raised awareness level of intellectual property rights (IPR) among local people in Hong Kong. A half a decade ago, the idea of having to pay for the rights to show a video simply would not have crossed the minds of people like Tommy the stylist.
Like most other “new” concepts, IPR will take time to gain its place in people’s minds. How much time it takes varies from place to place and culture to culture. Obviously, if the concept is new to a place, it will take longer for it to be established. And accepting the concept is one thing; taking action to protect IPR is another. The evolution of the protection of IPR is also different across countries.
MAJOR GLOBAL AGREEMENT
Many researchers and observers who follow the development of international IPR have cast doubt on the practicality of the adoption of rules that set universal standards of protection, like the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) that was signed by over 120 member countr ies of the Wor ld Intellectual Property Organization in 1994.
The TRIPS Agreement, with its t e r m s b a s e d o n t h e p r eva i l i n g standards in developed countries (the majority of which are in the northern hemisphere), has drawn criticism for forcing the North’s standards on the South (developing countries, mostly located in the southern hemisphere). Aside from questioning if the less-developed countries were ready for s u c h t e r m s a t t h e t i m e o f t h e agreement, there were also doubts
COMMON INTELLECTUAL PROPERTY RIGHTS
STANDARD FOR ALL
about if the uniform standards would indeed achieve better benefits for the world as a whole.
Questions raised are, for example, is the South doing too little to protect IPR (from the South’s and a more global point of view)? In the worldwide context, does the South protect too much if it adopts the North’s IPR standards?
I n s e a r c h o f a n swe r s t o t h e s e questions, Larry Qiu, Assistant Professor of Economics and co-researcher Edwin Lai from the City University of Hong Kong, established a model with two regions in the world, the North and the South, which trade two types of goods, new differentiated products and traditional products. The new product sectors in both regions include innovation and imitation. Qiu and Lai make the following assumptions concerning the new products sector: the South has lower capability than the North in creating new p r o d u c t s ; s t r o n g e r I P R p r o t e c t i o n discourages imitation; the North and the South had both adopted their own standards before the TRIPS was put in place; the TRIPS Agreement then required both regions to adopt the pre-TRIPS IPR
standard of the North as a minimum standard.
With this model, which is among the first on the issue that assumes that both the North and South regions have the capability to innovate and also that there is an optimal degree of IPR protection for each region, they find a number of results.
BIGGER INCENTIVE NEEDED
First, as long as the South’s market is not too small compared with the Nor th’s market, the South has incentives to protect IPR. However, the optimal level of the South’s IPR standard is not as strong as that of the North, according to the model. Second, given that the North is committed to its pre-TRIPS standard, it is globally optimal for the South to adopt a standard at least as rigorous as that of the North. However, simply requiring the South to adopt the North’s standard without compensation benefits the North at the expense of the South. Both the North and the South will gain if the North compensates the South sufficiently, for example, by lowering its impor t tar iffs, to encourage willing enforcement of such a standard.
Original Research "The North's Intellectual Property Rights Standard for the South?" by Edwin Lai and Larry Qiu
A c c o r d i n g t o Professor Qiu, the tariff reduction by the N o r t h s i n c e t h e TRIPS Agreement has not been large enough to elicit the above effect. “While the agreement was reached, the situation has been that the e x t r a s u r p l u s g e n e r a t e d f r o m s t r e n g t h e n e d I P R protection now mainly benefits the Nor th. That may explain why
many developing countries are not enforcing as high an IPR standard as the developed countries want, while the developed countries seem to be retracting from their market access commitments, which is not helping the situation at all,” he said.
Lai and Qiu suggest in their paper that the TRIPS Agreement required the South to make too many concessions. In view of the insufficient compensation that was offered to the South, a more practical option than TRIPS to close the gap in international intellectual property protection would have been an agreement that binds the South to a higher standard than before, but below that of the North.
OTHER POLICY IMPLICATIONS
Implementation of IPR protection aside, results of Lai and Qiu’s research show that multi-issue negotiations have greater merit than single-issue negotiations. The researchers argue that issues that are unrelated to trade barriers, such as IPR protection, should be included in the World Trade Organization negotiations since they can produce gains to the world as a whole. Multi-issue negotiations can a c h i ev e i n c e n t i v e - c o m p a t i b l e outcomes such that when each side makes concessions on different issues, the benefits to the world as a whole increase (e.g., the Nor th b e n e f i t s f r o m i n c r e a s e i n I P R protection in the South, while the South gains access to the textile market in the North). Finally, the give and take from both sides can give rise to improvements in overall benefits.
Larry Qiu is Assistant Professor of Economics at HKUST; email: larryqiu@ust. hk
A promotional cartoon on the website of the Hong Kong Intellectual Property Department, the key government department responsible for maintaining the protection of intellectual property rights in Hong Kong. Website: www.info.gov.hk/ipd/.
Warning:
Pirated Computer Software
Can Harm
Your Computer’s Health.
!"#
!"#
Jon A ANDA
Mr Jon A Anda is Managing Director and Co-Head of Global Equity Capital Markets at Morgan Stanley Dean Witter. After joining the firm in 1986, he spent four years working in the Equity Capital Markets Department in New York followed by four years in the Corporate Finance Department, based in Chicago. In 1994, Mr Anda returned to New York to become Head of the Global Equity Syndicate. He relocated to Hong Kong in 1995 where he headed both the Institutional Equity and Investment Banking Divisions for the Asia Pacific Region. Prior to joining Morgan Stanley Dean Witter, Mr Anda spent six years in the Capital Markets Group at Continental Illinois National Bank.
Andrew BUTCHER
Mr Andrew Butcher is Managing Director and Chief Administrative Officer of Salomon Smith Barney Asia Pacific. He was educated at Cambridge University and spent a short time
teaching in Africa and Japan and working for the Japanese government in Tokyo before joining Salomon Brothers in London in 1988. Mr Butcher held positions in Salomon Brothers’ Operations and Strategic Planning divisions in London and Tokyo before moving to Hong Kong in 1992. He was appointed Director, Business Planning and Administration in 1997 and Chief Administrative Officer in 1999. He is a member of the Salomon Smith Barney Asia Pacific Management Committee.
Laura CHA, JP
Mrs Laura Cha is Deputy Chairman and Executive Director of the Securities and Futures Commission of Hong Kong. As Chief Operating Officer of the Commission, she is responsible for coordinating the policy development of all the operating divisions. She also heads the Commission’s Corporate Resources Division. Prior to joining the C o m m i s s i o n i n 1 9 9 1 , M r s C h a practiced law in San Francisco with Pillsbury, Madison and Sutro, and subsequently in Hong Kong with Couder t Brothers, in the areas of commercial and corporate law and cross-border transactions by multi-national companies.
Mrs Cha is a member of the Takeovers and Mergers Panel and the Financial Services Advisory Committee of the Hong Kong Trade Development Council. She is a Justice of Peace.
Philip N. L. CHEN, JP
Mr Philip Chen is Director and Chief Operating Officer of Cathay Pacific Airways. He was the Chief Executive of Dragonair from 1994-97. Before that, Mr Chen was Regional General Manager, Southeast Asia, for Cathay
WELCOME ON BOARD
T
he School extends its sincere welcome and appreciation to the four new Corporate Advisors, Mrs Laura Cha, Mrs Eleanor Ling, Ms Carrina Wong, and Mr Stuart Leckie, for agreeing to give both expertise and time to guide our future endeavors.Boasting a vast store of intellectual capital gleaned over years from the business world, the Corporate Advisors provide invaluable experience and directions as the School sets its strategic initiatives for future development.
Together with the four new members, the Board now has a total of 17 members. They are:
Pacific from 1992-94 and Chief Representative and General Manager of Swire China from 1989-92. In the mid-’80s, he worked for the University of Hong Kong in charge of the Marketing Module of the University’s MBA Program. He also pursued other academic activities and management studies at various universities including Stanford University, INSEAD and Oxford University.
Besides being the Chairman of Ocean Park Hong Kong and a member of the Citizens Advisory Committee on Community Relations of the Independent Commission Against Corruption (ICAC), he also chairs and serves on the board of various tourism bodies and academic institutes.
Lily CHIANG
Dr Lily Chiang is the founder and President of E1 Media Technology Limited. Established in early 1999 and headquartered in Hong Kong, E1 aims to become an industry leader in the
development and provision of Internet, multimedia, broadband and e-commerce-related technology applications. The company specializes in transforming technologies developed in universities into funded ventures with commercial products. Dr Chiang is Chairman of Pacific Challenge Holdings Limited, which engages in financial advisory and sponsoring services. She also chairs Eco-Tek Holdings Limited, a company specializing in environmental protection by innovating various products. Dr Chiang is Vice-Chairman of the Hong Kong General Chamber of Commerce and a Board Member of the Hong Kong Industrial Technology Center Corporation. She was the recipient of the ’99 Ten Outstanding Young Persons Award and was named an Outstanding PolyU Alumni in 1999.
Paul Man Yiu CHOW
Mr Paul Chow is Chief Executive Officer of HSBC Asset Management (Hong Kong) Limited. He is also a Director of HSBC Investment Bank (Asia) Limited. B e f o r e j o i n i n g H S B C A s s e t Management, Mr Chow served as Chief Executive and Council Member of The Stock Exchange of Hong Kong from 1991-97 and, prior to that, he was Chief Executive and Director of the Hong Kong Securities Clearing Company for two years. From 1973-88, he held a variety of management positions within the Sun Hung Kai Group of companies.
Mr Chow is currently a member of the Information Infrastructure Advisory Committee of the Hong Kong SAR Government and Chairman of the Hong Kong Investment Funds Association.
Peter CLARKE
Mr Peter Clarke is a former Chairman of Merrill Lynch Asia Pacific, a position he held from 1992-99. He was previously a Managing Director for Salomon Brothers where he held a variety of management positions in
London, Tokyo and New York during a 15-year career. Prior to joining Salomon Brothers, Mr Clarke worked in the securities industry in London, Sydney and Hong Kong.
Mr Clarke is currently a member of a number of advisor y boards and committees including Hong Kong’s Securities and Futures Commission and the Hong Kong Securities Institute. He also serves on the board and the Executive Committee of the Community Chest.
Peter ESTLIN
Mr Peter Estlin is Chief Administrative Officer, Global Investment Banking, Salomon Smith Barney Inc. He held the same position with Salomon Smith Barney Asia Pacific and was based in Hong Kong from 1997-99. Before moving to Hong Kong, he was the Director of Audit, Europe and a member of the Management Committee at Salomon Smith Barney, London. From 1982-94, he was a Partner in Risk Management Services at Coopers & Lybrand, London.
Mr Estlin is a Fellow of the Institute of Chartered Accountants in England and Wales, and a member of the Information and Control Association as well as the Institute of Management Consultants.
Hans Michael JEBSEN
Mr Hans Michael Jebsen is Chairman of Jebsen & Co. Ltd, a family-owned trading company located in Hong Kong and China since the 1860s. Born in Germany, Mr Jebsen arrived in Hong Kong in 1980 at the age of 24, and took the helm of the company six years later. Mr Jebsen is Vice President of the World Wide Fund for Nature Hong Kong and has been ser ving as Trustee of WWF International, Switzerland since 1998. In 1995, Mr Jebsen set up an education foundation to help students from the Chinese mainland and Hong Kong to pursue their studies at HKUST.
Mr Jebsen is a member of the Asia Cultural Council of Hong Kong and a life member of the Academy of Performing Arts of Hong Kong.
Dennis Haw-Shun LAM, JP
Mr Dennis Lam is a principal investor in the biotechnology and alternative energy sectors. He was the former D e p u t y C h a i r m a n o f t h e S t o ck Exchange of Hong Kong Limited and the Hong Kong Securities Clearing
Company Limited. He also served as Treasurer and Council Member of the City University of Hong Kong, President of Financial Executives Institute (Hong Kong) Limited, and Chairman of Hong Kong Deposit-taking Companies’ Association. He is now an Honorary Member of the Hong Kong Financial Markets Association.
Mr Lam received the Ten Outstanding Young Persons Award in 1984 and has been a Justice of Peace since 1996.
The program kicked off in the Fall 1999 at the Kellogg School in Chicago, and completed its second phase at London Business School earlier this year. The final phase will be held at WHU Koblenz in February 2001. During each phase, top Merck executives from around the world convene for two weeks of intensive training on subject specialties of each partner university.
At HKUST, the program focused on accounting and finance, China business and management, eBusiness, and cross-cultural management. To supplement class-time activities, the program also invited government officials and local businessmen t o s h a r e t h e i r ex p e r i e n c e w i t h t h e participants. Various cultural immersion activities such as seminars on Chinese herbal medicine, feng shui, Asian values, and a day-trip to Guangzhou also were arranged.
MERCK PROGRAM A ROARING SUCCESS
HKUST faculty members involved in the program included Gary Biddle, Head of Accounting and Academic Director of the program; Ted Clark, Associate Professor of Infor mation & Systems Management (ISMT); Larry Franklin, Adjunct Associate Professor of Finance; Vidhan Goyal, Assistant Professor of Finance; Chris Westland, Head of ISMT; and Katherine Xin, Assistant Professor of Management of Organizations.
Joachim Szebel, Director of the Pigments & Technical Industries Division at Merck, spoke highly of his HKUST experience. “The program was specific and relevant to our business,” said Szebel, “and it gave senior management an in-depth view of different aspects of business.”
Richard Zhang, Managing Director of Merck Shanghai Representative Office, China, said the program offered a special opportunity for participants, most of whom
had scientific backgrounds, to gain access to the latest business knowledge in a systematic way. “Besides, it is a good place to cultivate personal relationships on top of business relationships,” he added.
Chris Palmer, Managing Director of Merck Ltd., UK, concurred that the program forged closer relationships and created trust among participants. “We exchange opinions and seek advice from each other. In a multinational like Merck, teamwork and personal relationships do matter. They foster communication and ensure that business goes smoothly,” Palmer said. He also was impressed by the experience and breadth of knowledge of the professors. “Moreover, the excellent suppor t of the program a d m i n i s t r a t o r s a n d t h e c a m p u s environment also facilitated the learning tremendously,” concluded Palmer.
Professor Gary Biddle is delighted with the reception the program received from the
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Merck Program participants at a cultural simulation game with instructor Katherine Xin (standing).
Merck executives. “The feedback from Merck is exceptionally positive. It confirms that our academic content and logistical support are truly world class,” he said.
Stuart H. LECKIE, OBE, JP
Mr Stuart Leckie has been Chairman of Woodrow Milliman China Limited, Hong Kong since 1998. He is the author of Pension Funds in China, and is a former director of Exchange Fund
Investment Limited. Mr Leckie has enjoyed a successful career by specializing in investments, actuarial science and life insurance. He held various positions in the UK for 12 years before moving to Hong Kong in 1979. In 1982, he was made Managing Director of Watson Wyatt in Hong Kong and became Chairman in 1993. In 1995, he was appointed Chairman in Asia-Pacific of Fidelity Investments. Mr Leckie has been a Fellow in the Faculty of Actuaries and the Institute of Actuaries since 1972. He is a Justice of Peace and has been awarded an O.B.E.
Eleanor LING, OBE, JP
Mrs Eleanor Ling is Advisor to the Board of Jardine Pacific Limited. She joined the Jardine Matheson Group in 1969. After holding various managerial positions in the Group’s aviation and property interests, she was appointed a Director of Jardine, Matheson & Co., Limited in 1985. In 1989, she was made a Director of Jardine Pacific Limited and responsible for human resources and public affairs. In November 1998, Mrs Ling retired from full-time directorship and was appointed as an Advisor to the Board. Mrs Ling holds a variety of corporate and public service appointments. She is a Member of the Hong Kong Hospital Authority, Vice Patron of the Community Chest, and a Justice of Peace.
Sing Cheong LIU
Mr S. C. Liu is Managing Director of his own real estate consultancy company in Guangzhou, the Pearl River Hang Cheong Consultancy Limited. He is also the Chairman of the
Guangzhou Top Home Technology Company Limited,
which operates a real estate portal in China named My Top Home.com. Mr Liu is an Honorary Professor of the University of Hong Kong; an Honorary Fellow of the Hong Kong Polytechnic University and a Visiting Professional Fellow of the International Land Institute of Cambridge University. He also serves as a member of several Government committees.
Mr Liu is a graduate of HKUST’s first part-time MBA class.
Martin TANG
Mr Martin Tang is Chairman, Asia of Spencer Stuart, one of the leading executive search firms. Prior to joining the search industry twelve years ago, Mr Tang was an Executive Director of the venture capital firm Techno-Ventures (Hong Kong) Limited from 1986-88. He was Chairman of Midas Printing and a Director of Tristate Holdings, both Hong Kong-listed companies. He is currently a Director of CEI Contract Manufacturing Pte Ltd in Singapore and is President of the German Chamber of Commerce of Hong Kong.
Mr Tang is a Trustee of Cornell University and a member of the MIT Corporation Visiting Committee for the Sloan School of Management. In Hong Kong, he was a member of HKUST’s Council for six years. Currently, Mr Tang serves as a member of the University Court.
Joël TIPHONNET
Mr Joël Tiphonnet is Executive Vice President of Group Marketing for a Hong Kong-based electronics firm, IDT International and President of the company’s group brand Oregon
Scientific. Mr Tiphonnet has 14 years of diverse management experience with various world-renowned companies. He was Vice President of LVMH Asia Pacific from 1995-98. Before joining LVMH, he was the Managing Director of GE Appliances Asia Pacific in Singapore from 1992-93 and Business Development Manager of General
Electric (USA) Asia Pacific, Hong Kong from 1990-91. He also spent four years at Bain & Company in London as a Senior Consultant after graduating from Stanford Graduate School of Management in 1986.
Carrina Man Li WONG
Ms Carrina Wong is Managing Director of the Saint Honore Holdings Limited. Since its first cake shop opened 28 years ago, Saint Honore has grown to operate more than 68 bakery shops in Hong Kong and Macau with more than 1,400 employees. In 1991, Saint Honore Cake Shop became a subsidiary of Hong Kong Catering Management Limited, a listed company on the Hong Kong Stock Exchange.
Ms Wong first joined Saint Honore in 1986. During her tenure there, the company has developed into a dominant force in bakery retailing despite the sector’s fiercely competitive environment.
Ms Wong is a graduate of the inaugural class of the Kellogg-HKUST Executive MBA Program launched in 1998.
David WONG
Dr David Wong has been Managing Director of United Overseas Investments Limited, Hong Kong since 1997 and Director of Fujian Zhangping Power Co., Limited, PRC since 1992. He was Director of Corporate Finance at W.I. Carr Indosuez Capital Asia Limited, Hong Kong from 1993-96. In 1987, after obtaining a doctoral degree in Economics from the University of Chicago, he joined the Federal Reserve Bank of Philadelphia in the United States as Economist, a position he had held for four years.
Dr Wong serves as a Council Member for the Hong Kong Institute of Directors and
Honorary Treasurer for the Business & Professionals Federation of Hong Ko n g . H e i s a l s o a n E xe c u t i ve Committee Member of the Chinese Manufacturers’ Association of Hong Kong.
ALUMNI NEWS
S
hirley Lau, ’98 MBA, returned to school in 1995 after a stint at a pharmaceutical firm, where she was charged with marketing the firm’s products in the China market. It was a challenging job, but she wasn’t a neophyte in the health care profession. She had cut her teeth on the health care industry for four years after she earned her doctoral degree in pharmacy in the U.S, and had spent three additional years with t h e K a i s e r Pe r m a n e n t e, a managed care organization, before moving back to Hong Kong in 1994.Today, Lau is a pharmacist for the Hospital Authority (HA). In this role, she is responsible for clinical pharmacy service development, drug evaluation and utilization. The ultimate goal, Lau said, is to “elevate the pharmacy service and improve patient care in Hong Kong”.
L a u b e l i e v e s t h a t t h e pharmacy profession in Hong Kong is still largely undervalued. “In the U.S., a pharmacist plays a more active role in patients’ care. It’s a profession that requires years of training and experience,” said Lau. She cites the example of her past employer Kaiser Pe r m a n e n t e , w h i c h i s a n
insurance company that offers health care consultation and services in addition to its core business activities. “My role at Kaiser Permanente was very similar to my present job at HA. The objective was to provide preventive health care to and ensure cost-effective use of drugs for our policyholders so that their risk of hospitalization would be minimized, thus lowering their insurance claims. And the benefit to the bottom line is amazingly tremendous,” explained Lau. “In Hong Kong, few people are aware of the function and importance of the pharmacy profession. That’s why I think the industry has a lot
ANOTHER PERSPECTIVE FOR A PHARMACIST
F
ive months after completing his undergraduate program at HKUST, Wong Chi Man (FINA 2000) has already gained recognition for his novel business idea, Salesperson Mobile-Privilege (M-Privilege) System, which landed him the “M-Innovation” Award at the “New World Mobility M-Commerce Application Competition”.FINANCE GRADUATE MAKES A MARK IN
COMPETITION
The competition ran concurrently with the “Digital 21 Power for Youth 2000” event organized by the Hong Kong Productivity Council and Hong Kong Junior Chamber, with the Information Technology Services Department as the co-organizer.
Working as an account manager at XINYI Network, a budding IT solution provider founded by another HKUST graduate, Wong bested some 100 contestants who presented their business plans to a panel of six judges. Wong’s Salesperson M-Privilege System was touted as innovative with significant market value. It enables sales executives, who most of the time are away from office, to access, retrieve and forward data from the company’s databank through a WAP phone, thus enhancing their services to their customers and their sales performance.
Wong’s proposal was presented at Telecom Asia 2000, an International Telecommunication Union conference, held in Hong Kong in December.
S
ome 15,000 people visited the HKUST Outreach Day held last September. The Business School arranged nine seminars and exhibition displays for the visitors.Besides giving out general information, the School focused on promoting the new undergraduate Bachelor of Business Administration (BBA) degree program in Global Business, to be introduced in 2001 under a separate Joint University Programs Admission System entry code (5921). The Information Systems program will also admit students through a separate code (5816) starting next year. Together with these two codes, entry to the School’s undergraduate programs is possible through five codes. The other three codes are 5701 for general BBA programs; 5713 for BBA in Accounting; and 5751 for BSc in Economics and Finance.
Organized annually, the Outreach Day mainly targets secondary school students who are beginning to consider options for their tertiary education.
ANNUAL OUTREACH DAY
of growing up to do.”
Like many of her classmates, Lau enrolled in the MBA program to pursue personal fulfillment and career growth. “My job involves a lot of communication work and personal relationships. I have to d e a l w i t h d i f fe r e n t p e o p l e everyday and convince them to adopt our programs. It’s like marketing a service and that’s where I found myself insufficient because my training in the college was basically science oriented and my thinking was straight forward and rational. But in the real world, you can’t make things work without considering both human and environmental factors. That’s why I enrolled in the MBA program for more well-rounded training,” said Lau.
I n a d d i t i o n t o bu s i n e s s knowledge, Lau maintains that the MBA program has broadened her horizons and enriched her social network. “The program let me see things from a wider perspective. No matter what profession you are in, getting people involved is all that counts. I’m so glad that I met so many brilliant people in my class and in the alumni network. The interaction is good for both my personal and professional growth,” she said.
TEAM EFFORT CARRIES THE
DAY AT TRAILWALKER 2000
IT
D
espite unfavorable weather, the MBAAA Team, including three MBA alumni, Fung Wai Chung ’94, Philip Cheng ’99, Richard Tan ’99, and a non-HKUST member Felix Chik, conquered the grueling 100-kilometer McLehose Trail in 40 hours 37 minutes and raised some HK$30,000 for Trailwalker 2000, a fundraising event organized by Oxfam Hong Kong.This year proved to be extra challenging for Trailwalker’s participants, who had to slog up and down the rugged hills of the McLehose Trail in rain and chill. “The rain made the trail slippery, so climbing and then descending Ma On Shan in the dark was very difficult,” explained Tan. “And the last 10 kilometers of the trail turned into a veritable river!” Cheng chimed in. Temperatures reportedly dropped to 11°C at Lead Mine Pass, on the way to Ma On Shan. They attributed their successful completion of the demanding journey to the hard work of the support team, which consisted of HKUST MBA alumni. “They provided us with hot meals, warm clothes, and encouragement, which fueled us through the seemingly endless trail,” said Tan. “We are not Super-Trailwalkers (a new category introduced this year to award those teams completing the course within 18 hours) but we had super trail supporters,” Chik added.
Sub-editor of this Newsletter, Virginia Unkefer, also participated in the fundraising hike. She and three other non-HKUST members hit the finishing line after 19 hours 52 minutes and took the second place among the all-women teams. Unkefer’s team raised HK$90,000.
The MBAAA Team (from the left): Felix Chik, Fung Wai Chung, Philip Cheng and Richard Tan. Wong Chi Man (right) and colleague Taro Wong at the
award presentation banquet.
Shirley Lau (right) with Amy Chan, HA’s Senior Public Affairs Manager, at a patient education talk.
