As more and more projects stretch across geographical boundaries, team leaders need to stretch their management skills.

Mary Ann Von Glinow

“Cross-cultural management has to consider various cultural norms,” said Mary Ann Von Glinow, professor in the Department of Management and International Business in the College of Business Administration. “Typically, it involves people-related processes and activities such as human resource management, leadership, power and politics, decision-making, and organizational behavior.”

The challenge of managing a cross-cultural virtual team escalates when the international collaborators are peers from other companies or universities.

“For example, a person from a group of R and D scientists or highly-sophisticated engineers might encounter a situation in which he or she has to manage other very intelligent individuals unaccustomed to being told what to do,” Von Glinow said.

Stripped of the opportunity to offer rewards or to exert the pressure that comes with holding a position of authority within an organization, how can a project leader bring virtual team assignments to a successful conclusion?

A number of researchers have considered the subject, but in her recent study, done with two co-authors, Von Glinow was able to look at completed projects rather than at those still underway. As a result, the study offers insights and recommendations for every stage of a project’s life cycle—from initial vision through the publication of results, in the case of research.

“Although our focus was on academic international research teams (AIRTs), our observations may help promote the effective management of all multinational, globally-distributed teams of professionals,” Von Glinow said. “We note in our work that industry has long recognized that partnerships pay off: financially, strategically, and competitively. These lessons from industry apply in the world of academic research, and conversely, our observations of successful academic collaborations may bear on businesses and other enterprises, such as professional organizations.”

The study sets out the key activities, challenges, and success drivers for leaders of international teams. Among its suggestions:

• Develop a clear project vision, essential for guiding the team.
• Involve key experts with requisite skills to ensure that the team will complete project tasks.
• If the team is voluntary, have team members develop—and agree to—a formal social contract.
• Select members with multicultural team experience who are also good collaborators.
• Actively manage team interpersonal processes, paying particular attention to building and maintaining both trust and commitment.
• Interject chaos and conflict to focus team energy, especially when creativity is necessary, but nurture or control chaos and conflict when needed.
• Make sure communication is predictable, responsive, and initially social.
• Foster a culture of shared learning to create synergistic outcomes.

The research, titled “The Life Cycle of Academic International Research Teams: Just When You Thought Virtual Teams Were All the Rage, Here Come the AIRTS,” was recently published in the eighteenth volume of the series Managing Multinational Team s: Global Perspectives. Von Glinow was also one of the editors of the volume.

FOCUS ON

.: South Florida leaders join the Alumni Circle members on March 9th as they support the organization Teach For America.

  As part of its commitment to improving education in South Florida, the college’s Alumni Circle will be hosting a special reception for Teach For America—“Leading the Education Revolution”—to increase awareness about the important work of the organization.

This evening reception, to be held on March 9, 2006, at the Miami Children’s Museum, will feature live music and special guest speakers, including the college’s Executive Dean Joyce J. Elam, as well as corporate supporters of Teach For America: Maria Alonso, senior vice president at Bank of America; Jack Lowell, vice chairman of the Codina Group, and Mark Trowbridge, deputy executive director for business development at the Miami Parking Authority. Additionally, attendees will hear from a Teach For America Core Member (teacher) and principal in order to get a true picture of the important work they are doing in our local schools.

Among the sponsors are the Miami Children’s Museum, Outback Steakhouse, Dadeland Mall, Southern Wine and Spirits, Hoodiny Entertainment Group, and the Miami Parking Authority.

Teach For America is the national corps of outstanding recent college graduates who commit two years to teach in public schools in urban and rural areas and become lifelong leaders in expanding opportunities for children in low-income communities. Since 1990, more than 14,000 exceptional individuals have joined Teach For America. They have affected the lives of two million students and form a growing force of civic leaders committed to ensuring that our nation lives up to its ideal of opportunity for all.

For more information about the Alumni Circle or this specific initiative, please contact Director of Alumni and Partner Relations Monique Catoggio at 305-348-4227 or e-mail catoggio@fiu.edu.

.: Business Alumni Chapter welcomes Class of 2005.

    December 20th marked the day that hundreds of College of Business Administration students had eagerly been waiting for the last four years—graduation. Dressed in their caps and gowns, more than 400 seniors walked the floor of the Pharmed Arena while family and friends cheered on enthusiastically.

Graduates were surprised to find the merriment continued after they exited the arena doors—a tent with a DJ and complimentary drinks and appetizers. This year, the College, together with the Business Alumni Chapter, hosted the first ever post-graduation party welcoming graduates to the business alumni family.

Business Alumni Chapter student representatives Kenneth Rojas and Bill Wilson, worked throughout the fall semester to organize the reception.

“We wanted to provide a venue for graduates, family, friends, and professors to commemorate this exciting occasion,” said Maria Arguello, special events planner for the college.

“It was a great opportunity for graduates to learn how they can stay connected, network, and grow in their careers by becoming involved with the Business Alumni Chapter,” said Cristina Jaramillo, marketing manager for the college’s Office of Alumni and Partner Relations.

The Business Alumni Chapter hosts a variety of events throughout the year including professional development lectures, a CEO speaker series, and networking events. Recent graduates can join both the FIU Alumni Association and the Business Alumni Chapter for a special rate of $10. Membership forms are available on the web at http://cbalumni.fiu.edu.

The event marks the beginning of a tradition for the college,” said Wilson. The reception was so well received by graduates that the college plans to host a reception following each upcoming graduation ceremony.

.: Chapman School hosts first alumni holiday party.

The lobby of the MARC building at Modesto A. Maidique Campus was the scene for a holiday cocktail reception filled with red decorations, candles, and poinsettias marking the Chapman Graduate School’s first-ever alumni holiday networking party on December 7, 2005.

The event brought together Chapman School Dean José de la Torre, program managers, professors, and more than one hundred alumni from a range of classes— from recent graduates to Earl Rodney (MSM ’75), who represented the first-ever graduating class. Alumni were challenged to gather as many members of their classes to win a prize. Master of Science in Human Resources Management (MSHRM), Cohort 7 rose to the challenge and celebrated its victory with more than fifteen students present.

“This event launches what will be a series of Chapman alumni events and programs aimed at providing opportunities to reconnect with classmates and professors and to continue relationships with the Chapman School,” said Monique Catoggio (EMBA ’03), director of alumni and partner relations. “Our Chapman alumni have a special affinity to us and to each other; we want that affinity to remain strong and grow as the Chapman School continues to thrive.”

.: Nominate an extraordinary college alumnus/ae.

Each year, the College of Business Administration honors alumni and other members of our business community who have achieved distinction as founders and builders of new business enterprises by inducting them into the prestigious Entrepreneurship Hall of Fame. The college currently is accepting nominations for the 2006 Entrepreneurship Hall of Fame. For nominating criteria and/or to submit a nomination, visit our web site or contact Monique Catoggio, director of alumni and partner relations at 305-348-4227 or email catoggio@fiu.edu. The 2006 Entrepreneurship Hall of Fame Induction Ceremony and Luncheon will be held at The Parrot Jungle on May 17th.

.: Jump-start your career with the Career Leadership Conference on January 28th.

The college's Business Alumni Chapter will be hosting a Career Leadership Conference on Saturday, January 28 from 10:00 a.m. to 4:00 p.m. in the College’s Downtown Miami Center (Macy's at 22 E. Flagler, 6th floor).

The seminar Career Leadership: “You are the product. take the lead” is designed to provide alumni and guests with essential tools to market themselves successfully when starting a new career or changing industries. The innovative discussion will take individuals through the marketing process as though they are the product. Seminar topics will include product analyses, market research, marketing tools, product rollout, and successful sales and implementation.

The seminar will be spearheaded by prominent business community leaders and alumni, including Ruben Perczek, Perczek Leadership Institute; Barry Shiflett, Chapman Graduate School career services director; Augusto “Gus” Vidaurreta (BS ’80), principal, RAM Strategy Inc., and Howard Shore (BBA ’91;MBA’96,), partner, Elite Advisory Group. The cost of the seminar is $30 for Business Alumni Chapter members and $40 for non-members and includes breakfast, lunch, and parking. Registration forms are available online at http://cbalumni.fiu.edu/calendar.htm. Space is limited, so register today! Questions? Contact Cristina Jaramillo, jaramill@fiu.edu.

.: Upcoming Alumni Chapter Events.

Traveling Happy Hour
Thursday, January 19th
6:30 to 9:30 p.m.
Bahia-Four Seasons Hotel
1435 Brickell Avenue
Enter a chance to win great travel prizes, including airfare for two to anywhere in the U.S. The first fifty individuals to arrive will receive complimentary drinks and appetizers.

Real Estate Alumni Affinity Council Happy Hour
Wednesday, January 25th from 6:30-9:00 pm
Mosaico Restaurant
1000 South Miami Avenue

.: Master of International Business graduate finds product ripe for increased production.

On a recent Farmer-to-Farmer assignment in Honduras, José Carlos Ortiz (MIB ’05) got his feet wet.

Literally.

As part of the College of Business Administration’s John Ogonowski Farmer-to-Farmer Program, funded by USAID, Ortiz was engaged to do a marketing study for PDA Valle in Nacaome, Honduras. He was to evaluate the production of cashew apples (marañons)—a fruit popular in juices—and the viability of establishing a small production plant. The cashew nut, which is popular around the world, is an appendage of the cashew apple, a soft fruit that looks like a pear. The cashew apple is highly perishable, making its commercialization a challenge.

“At the time I accepted the two-week assignment, little did I know that I would have to trudge through the mountains for hours looking for cashew apple producers and their plantations,” said Ortiz, who had previously completed a Farmer-to-Farmer assignment for chili sauce producers in Honduras, doing much of his research in supermarkets. “I only brought tennis shoes with me when I should have brought boots!”

When he started the assignment with its required travel on foot, it had been raining for more than a week.

“I kept getting my feet stuck in the mud on every step I took,” he said. “Luckily for me, there were small ponds of fresh water where I could clean my shoes.”

Luckily for his hosts, Ortiz was able to do more than tend to his footwear. He organized meetings to evaluate the producers’ skills, developed a SWOT analysis, noted how already-established plants in the region could be improved upon, and fashioned the techniques required to operate a successful plant.

Despite some skepticism on the part of local producers who have seen other projects fail, Ortiz developed a lengthy set of recommendations, from the kinds of specialists and staff members needed to the establishment of offices that could handle business issues. In addition to sharing with the producers what he had learned, he also learned from them.

“I acquired new knowledge about land treatment, fruit cycles, and other derivative products as well as people’s conduct, ways of living, and culture,” he said. “This assignment took me inside a real emerging market condition, which I personally think can only be understood through experience.”

He credits his previous assignment, as well as his solid academic background in the college, with helping him get the most out of the two weeks.

“Being in Honduras previously helped me a lot—with technical information and the do’s and don’ts of interacting with people,” he said. “Also, I’m glad I took so many marketing classes because I used a lot of marketing research techniques.”

And, he would eagerly take on another assignment.

“Opportunities like these cannot be matched by anyone,” he said. “To help the neediest while learning and putting your knowledge to work in the field is the most gratifying experience I have ever had.”

For more information about the program, visit www.entrepreneurship.fiu.edu/usaid. To learn how to participate, contact Carmen Algeciras, director, USAID Farmer-to-Farmer program in the College, at 305-348-0399 or e-mail algecira@fiu.edu.

.: Largest BBA+ Weekend fundraising attempt surpasses goal.

Ana Lorenzo and son

When students in the BBA+ Weekend program in the College of Business Administration embarked on a journey to raise nearly $20,000 for Project Thrive, the Infant & Toddler Stimulation Program of ARC (Association for Retarded Citizens of South Florida), they weren’t sure they’d reach their goal.

“It seemed like it could be very difficult,” Xiomara M. Alfaro, who was in charge of marketing, said of the largest fundraising attempt ever mounted by members of the “Business in Society” class in the program. “It was a lot of money.”

But through a number of fundraisers—including raffles, lunches, and a flea market—and the generous donations of companies and individuals, the effort netted more than $26,000. The money was destined for the purchase of specialized computer equipment to improve the educational and developmental chances for children with disabilities.

“Donors qualified at various sponsorship levels from $250 up to $2,000 or more,” said Ana Lorenzo, who along with class president Melanie G. Barnick, served as project leaders. “Our success was also due to the incredible amount of work that everyone in the cohort put into the project.”

By mid-December, the Project Thrive center in West Kendall had installed the computers in its classrooms. The cohort members, a number of donors, the director of Project Thrive at the site, and the director of ARC South Florida attended a special ceremony, which included a tour of the facilities.

“Seeing the children at the computers was amazing,” Alfaro said.

Each BBA+ Weekend cohort undertakes a community service project, selecting from options presented by group members. Lorenzo made the successful pitch for the ARC project, which the cohort named “Spark for ARC.”

“I visited the West Kendall center and found out from the teachers exactly what they would need, then determined what it would cost, and included those details in my presentation,” she said. “To get one computer for each of the seven classrooms would come to $19,460, which became our goal.”

Lorenzo’s son is a student at the center and though he can control a standard mouse, she was aware that not everyone could.

“I would see my son working at the regular computer, but noticed that other children in the class weren’t able to,” she said. “That’s when I realized that specialized equipment could make a big difference in the kids’ lives.”

The units, including special software, have been designed to meet all the needs of these young learners. They come with a small mouse; touch screens; and special sight, sound, control, and durability features. The center will use the surplus funds to purchase additional software and other options—such as adaptors for children with physical disabilities—for the systems now in place.

The experience also made a big difference in the lives of the members of the BBA+ Weekend group. They have decided to get together and do a yearly project, even after they graduate.

“We learned that there are many organizations that need help,” Lorenzo said. “Now we have the tools in our hands to do provide that help.”

Fall Commencement took place on December 20, 2005. During the afternoon ceremony, 436 undergraduates from the Landon Undergraduate School programs, with the exception of the School of Accounting, received their degrees. The Chapman Graduate School and the School of Accounting ceremony took place in the evening, with a total of 338 students, including those from Hospitality Management, getting their diplomas.

Shahid Hamid, professor of finance, addressed attendees at the afternoon ceremony.

He emphasized that “transparency, integrity, and ethical practices are essential to the success of our great system of commerce and business.”

Hamid told the students, “Your individual behavior and choices will always matter, because one of the most important lessons we have learned from the Enron, Tyco, World Com, and Barings fiascos is that it takes only a few or even one to bring down a great house of business.”

Alumnus Joseph L. Caruncho Esq. (BBA ’81) received Florida International University’s Medallion. He is the CEO of Preferred Care Partners, a provider-sponsored health plan licensed by the state of Florida as an alternative to the traditional Medicare and Medicare Advantage HMO. Preferred Care is the first health plan of its type and the largest privately-owned Medicare Advantage Health Plan in South Florida.

An award-winning entrepreneur, in 2004 Caruncho was named the Florida 2005 Ernst & Young Entrepreneur of the Year in the health care category and was inducted into the College’s Entrepreneurship Hall of Fame. In 2005, he was recognized by the South Florida Business Journal as a “Heavy Hitter in Health Care.”

A member of the Dean’s Council in the College, he holds a law degree from Nova Southeastern University, is a member of the Florida Bar Association, and is a public arbitrator with the National Association of Securities Dealers.

Joseph L. Caruncho

Executive Dean Joyce J. Elam addressed both assemblies. She noted the value of the students’ degrees as the college continues to enhance its reputation with the goal of becoming recognized as one of the finest public business schools in the country. And she explained the importance of the Building for Business Campaign, which will result in a home for the college, and for which ground was broken in November, 2005.

“We were told, more than once along the way toward realizing our dream, that what we were seeking to do was impossible,” she said. “We’ve faced obstacles and experienced disappointments. But today, we are very close to making come true our vision for a business school community with a home we all can enjoy.”

By sharing this story and examples of successful business people like Ray Kroc, Walt Disney, and Dick Clark, she encouraged graduates to realize their dreams.

“It seems to me that it is only those who risk going too far who truly discover how far they can go,” she said. “All of us are free to make a difference in this world—to pursue and fulfill our dreams.”

She also reminded them to stay involved.

“You don’t have to do it alone,” she said. “The college will continue to be a valuable resource to you throughout your career.”

.: Building for Business Campaign reaches hearts, then wallets.

“I truly love Florida International University,” said Francisco Camposano Jr. (BBA ’02), president of C & C Appraisers, Inc. “I have wonderful memories that will live with me forever.”

Camposano’s emotional attachment to the university and the College of Business Administration is exactly what the Building for Business Campaign organizers wanted to touch when they launched a fundraising effort among faculty, staff, students, and alumni.

“We aimed for the heart,” said Annabelle Rojas, the college’s director resource development and external relations. “We asked these constituencies to leave a legacy, to support an effort for a place they love.”

Much to the delight of Rojas and Joyce J. Elam, executive dean, the groups opened their hearts and their wallets. A “Wall of Stars” will acknowledge contributions of varying sizes.

“The new building looked good,” said Camposano, who majored in international business and whose donation was prompted by a direct mail piece. “I also believe that it is just fair to give back to a school that helped me come out to the real world and become successful. I enjoy applying in the real world what was taught to me in the college’s classes—such as being able to work in groups and come to reasoning together.”

One

Constantine "Gus" Kalogeras

of the university’s original faculty members, Constantine “Gus” Kalogeras, clinical professor of finance, used the Campaign to honor the university, his current students, and those who will be able to enjoy the business complex in the future.

“I am impressed with the quality of the university’s management, reflected in its phenomenal growth, and with the faculty, which is very dedicated and professional,” said Kalogeras, who rejoined the Department of Finance at “63 years young” after more than a twenty-year absence.

Not only did Kalogeras make a substantial personal donation, but also he funded a star for the Financial Management Association student chapter, for which he serves as advisor, and provided half the funds for another star for Phi Mu Alpha, the finance honor society.

“I admire these mainly first-generation students and their willingness to work hard, yet who they try to help others at the same time,” he said. “Many of them have difficulty buying books, let alone donating to a building fund. I thought that maybe I could help them get a star for their organization in the new building. I know that it means a lot to them.”

“These kinds of stories make us especially proud of our Campaign,” Rojas said. “We came in with hope. Now, we have built momentum and have gotten significant financial support.”

Based on the Campaign’s success, organizers are considering applying to the Kresge Foundation, which gives grants to institutions that run internal campaigns for brick and mortar.

“The Foundation needs to see that financial support is there and with nearly $70,000 in donations from faculty, staff, students, and alumni, we feel we can demonstrate that it is,” Rojas said.

A virtual tour of the Building Complex can be viewed—and donations made—at http://business.fiu.edu/web/donate/index.htm. Anyone interested in being part of this fundraising initiative can also contact Rojas at 305-348-3339, Bill Levin at 305-348-0473, or stop by Suite 310 in the Ryder Building. The state will match every donation dollar for dollar, doubling the value of each contribution. Donations are tax deductible.

“The wall can only accommodate a limited number of stars, and with the great response we’ve gotten so far, people might want to make their donations sooner rather than later to ensure that a star with their names will be permanently on view,” Rojas said.

.: Jamaica advisory board has successful launch.

Since 1999, the College of Business Administration has had a strong commitment to Jamaica and recently took the next step by establishing an advisory board for its two programs there: the International Executive MBA (IEMBA) and the Master of Science in Human Resources Management (MSHRM). Courses are taught at the University College of the Caribbean (UCC) in Kingston, enabling students to gain a graduate degree from Florida International University without having to interrupt their careers.

“Our stay in Jamaica demonstrates the college’s commitment to this market as well as something more altruistic: a willingness to assist the country in the nobler goal of economic development fueled by individuals with a quality business education,” said Donald Roomes, faculty director, IEMBA. “The establishment of an advisory board is critical to the viability and delivery of a high-quality and competitive program in Jamaica.

“The advisory board will help us to maintain the program curriculum’s relevance to the Jamaican community,” said Flavia Iuspa, program manager for the Jamaica programs. “We would like their help in marketing the programs and facilitating job placement for our graduates as well as in volunteering as guest speakers in our courses.”

The contingent from the university was impressed by the caliber of advisory board members, who are among the key business leaders in the country.

“The initial meeting was a success, as we were able to make a connection with some of the very best in the country,” Roomes said.

Similarly, the board members were impressed by the contingent from the Chapman Graduate School.

“What stood out for me was the clear signal of seriousness that the university communicated by the number and level of persons it sent to the meeting,” said Jerome Miles (IEMBA ’01), director of business development, Grace Kennedy and Company.

In addition to Roomes, who presented the IEMBA curriculum and discussed the program’s learning objectives, and Iuspa, who did the same for the MSHRM, José de la Torre, dean of the Chapman School, set out the goals for the advisory board; Barry Shiflett, director, career management services, discussed what Career Management Services offers graduate studens and alumni, and Monique Catoggio (EMBA ’03), director, alumni and partner relations, presented alumni services. Natalia Echeverría, corporate relations manager for the Chapman School handled logistics for the meeting stateside; she coordinates the activities of all the Chapman School’s program advisory boards.

“As a member of the first IEMBA graduating class in Jamaica, I found the program excellent and am happy for the opportunity to contribute to ensuring that it remains that way,” said Miles. “I hope the profile of the members and the quality of their input will give the Jamaican graduates of the university a distinct advantage over other regional graduates for employment in Jamaica and the Caribbean.”

Stephen Dawkins ( IEMBA ’03), trade marketing manager, Wray & Nephew Limited and currently president of the Jamaica Business Alumni Association, shared Miles’s view.

“I see the advisory board as a way to ensure that the curriculum is designed to fit the needs of our people and provides opportunities to many who have not had them,” Dawkins said. “The IEMBA program—offered here in Jamaica where I could work and still continue my education—was a key ingredient in my success.”

He recognizes the special role that alumni can play.

“The support of the Alumni Association is a critical success factor, targeting groups that will recognize the school as a premium choice,” he said. “It is the alumni who are the most effective marketing communicators to a prospective group as we are the ones who can speak to the program’s benefits.”

According to Catoggio, “The presence of alumni like Jerome and Stephen on the board will ensure that all board members understand the importance of alumni relations and help us as we aim to improve and grow our relationships with our alumni in Jamaica.”

Winston Adams, principal/CEO; Geraldine Adams, CEO; Rhena Williams,dean of international programs, Everton Pryce, director of distance learning, Yvonne Bignall, vice president of academic affairs, and Trish Steger, director of the UCC Foundation, represented UCC at the meeting.

.: College researchers win recognition.

Sumit K. Kundu

Faculty members of the College of Business Administration continue to make significant contributions to Florida International University’s reputation as Miami’s public research university.

Researchers at Michigan State University identified Ingersoll-Rand Professor of International Business Sumit K. Kundu as one of the 89 most prolific researchers in international business between 1996 and 2005. The team examined five top journals—Journal of International Business Studies, Management International Review, Journal of World Business, International Marketing Review, and Journal of International Marketing—that included the work of 1900 authors. The study is currently under review by the Journal of International Business Studies, the premier journal in international business, for possible publication this year.

Steve Zanakis

Also, the college has tied U.S. schools such as Columbia University, Indiana University, Northwestern University, The Ohio State University, Princeton University, Southern Methodist University, and Yale University as well as non-U.S. schools such as the London School of Economics and the University of Warwick in the sixth Interfaces’ rankings of universities for contributions to practice literature in the past seven years. These institutions ranked 34th in the listing.

“Interfaces is the practitioners’ journal of the Institute for Operations Research & Management Sciences (INFORMS), most of whose 12,000 members are managers, engineers, or analysts, generally with graduate degrees,” said Steve Zanakis, professor, decision sciences and information systems, two of whose articles were on the list. “Refereed articles in the journal must document substantial monetary savings or clear benefits/impacts on business or governmental organizations and society at large.”

.: Greek press showcases College researchers' studies of import-export irregularities.

How does a mink coat for under $13.00 sound? Or a dozen men’s jackets for $53.50? Perhaps a pair of women’s shoes for $3.37?

According to research by Steve Zanakis, decision sciences and information systems professor, and John Zdanowicz, finance professor, who has long studied pricing anomalies in international trade, that’s what invoices for these products imported from Greece revealed. And the numbers were just as surprising for items exported to Greece, including telephone sets for $7,586 each and a dozen pair of sunglasses for $7,534.

Steve Zanakis

During a recent visit to Greece, Zanakis briefed congressmen and the deputy minister of finance and his staff about the multi-millions in annual revenue lost by the Greek Treasury from abnormally priced trade transactions between Greece and the United States. He pointed to research results that used 1995 U.S. Department of Commerce data as well as a subsequent study using 2001 data that confirmed the previous findings. Some of this shift may be due to money laundering, terrorist financing, or income tax evasion.

The potential financial impact of reining in the illegal trade between the two countries is staggering.

“I presented our revised study estimates that $200 million was moved illegally in 2001 trades between the two countries,” Zanakis said. “Extrapolated to the total trade of Greece with the world, the $4.3 billion total annual capital flight results in a $1.5 billion annual tax revenue loss. This amount (about one percent of its gross domestic product, or GDP) could substantially reduce the Greek public deficit of 6.1 percent of GDP, which is the highest among the European Union’s member countries.”

According to the researchers, if authorities audited only a very small number of the top 25 export and 25 import income-shifting items flagged by the alert system, they could capture more than fifty percent of all income shifted from these trades.

John Zdanowicz

The Greek media picked up on the story. Detailed coverage of the professors’ studies appeared in two important Greek newspapers in May, 2005. Nea (News), the largest-circulation daily newspaper, devoted a full-page article titled “Tax Evasion of 1.2 Billion Euros via Over-Under Invoicing.” “Electronic Blockage in Tax Evasion,” another full-page article, appeared in Kathimerini (Daily) newspaper, showing women in mink coats.

“Prompted by the publicity, a Greek senator posted an inquiry to the parliament,” Zanakis said.

Zdanowicz and Zanakis’s original article, “Detecting Abnormal Pricing in International Trade: The Greece-USA Case,” written with another co-author, was published in 2003 in Interfaces, the practitioners’ journal of the Institute for Operations Research & Management Sciences (INFORMS).

.: IMBA advisory board zeroes in on scholarships.

The

Dana Farrow

International MBA (IMBA) advisory board held its fall meeting, delayed by Hurricane Wilma and its aftermath, in early December. Albert Couto, the board's chairman, welcomed the members. Paola Moreno, IMBA program manager, and Barry Shiflett, director, career management services, then shared program statistics comparing the new class with prior ones; Dana Farrow, professor of management and the program's faculty director, updated attendees on the new curriculum and the China track and explained the program's re-accreditation and learning objectives; and José de la Torre, dean of the Chapman Graduate School of Business, presented the results of a strategic review.

"The group had a very spirited discussion about pursuing scholarship funds, which Dean de la Torre has made a priority for 2006," said Natalia Echeverría, corporate relations manager for the Chapman Graduate School.

.: Renowned researcher presents Presidential Lecture.

David L. Birch

David L. Birch, business demography and public policy consultant, recently lectured in Florida International University’s prestigious Presidential Lecture Series. The talk, titled “Entrepreneurship in a Transformed Society,” drew an enthusiastic audience that included university President Modesto A. Maidique.

Dr. Birch, formerly an MIT senior research scientist and the first winner, in 1996, of the coveted FSF-NUTEK Award—The International Award for Entrepreneurship and Small Business Research, which is the equivalent to the Nobel Prize in entrepreneurial research—wrote a seminal study, The Job Generation Process, in 1979. This pioneering work—in which he argued that small- and medium-sized firms create most of the jobs—prompted global research, much of which supported his assertions. As a result, his ideas have influenced research and public policy throughout the world.

In addition to laying the foundation for further explorations on the subject of job creation, his views have contributed to the research community’s examinations of many other economic issues.

“Perhaps the biggest lesson from Dr. Birch’s outstanding lecture was the confirmation that entrepreneurship is a difficult, time-consuming, and perilous journey,” said, Alan L. Carsrud,executive director of the Eugenio Pino and Family Global Entrepreneurship Center. “He reiterated that real entrepreneurs need to acknowledge this and learn from their failures so they can ultimately succeed. This is a journey many wish they could take, and only a small proportion does. But without them, no economy could exist.”

Since 2001, the Presidential Lecture Series, begun with the help of a generous donation by President Maidique, has fulfilled three goals: first, to expose students to “the world at the forefront of science;” second, to accelerate education and research in scientific disciplines via interaction with world-renowned scientists; and third, to increase the university’s visibility.

The College of Business Administration’s own Paul Reynolds, professor of entrepreneurship in the Department of Management and International Business and director of the Entrepreneurship Research Institute within the Pino Center, won the FSF-NUTEK award in 2004. The Swedish Foundation for Small Business Research (FSF) and the Swedish Business Development Agency (NUTEK) present the award.

.: Chilean leader touches two audiences during his Miami stay.

During his distinguished career, Dr. José Piñera, Chile’s former minister of labor and social security, and architect of the Chile’s social security reform, has spoken one-on-one with international leaders—including U.S. presidents and top Latin American officials—about the Chilean model that revolutionized the state pension system and created personal retirement accounts (PRAs). Recently, he galvanized two new audiences—both affiliated with the Chapman Graduate School of Business—during a short, but intense visit to Miami.

Upon

José Piñera

his arrival, he presented a lecture titled “Empowering Workers: The Privatization of Social Security in Chile” to the Latin American Forum, an invitation-only group of chief executive officers for Latin America—or their equivalents—of major multinational corporations.

“Dr. Piñera’s riveting talk to the Latin American Forum was incredibly well attended and very enthusiastically received,” said Natalia Echeverría, corporate relations manager for the Chapman Graduate School of Business, whose office coordinates the activities of the Forum. “What he had to say then generated a great deal of discussion among the Forum’s members.”

On the following day, he addressed students, faculty, and staff in the Executive MBA (EMBA) program. Ruben Cespedes, who is an executive at LAN Airlines and an EMBA student, was instrumental in arranging for LAN to co-sponsor Piñera’s visit by paying for his flight. Cespedes also coordinated with Echeverría to make the presentation on the Modesto A. Maidique Campus possible.

“It was a truly wonderful opportunity—and an honor— to be able to listen to a legend in his time, a man who single-handedly reformed Chile’s social security system and who has made a tremendous difference in the world” said Cathy M. Pareto (BA '95), senior financial advisor and certified financial planner, Investor Solutions, Inc. and an EMBA student. “He also shed light onto our country’s struggle with social security.”

Among his many accomplishments, Piñera is responsible for the Social Security Act of 1980 that created a fully-funded pension system in Chile, for the Labor Code that regulated trade union activity and decentralized collective bargaining, and for the opening of the health sector to private provision. He is the founder and president of the International Center for Pension Reform (www.pensionreform.org), a non-profit initiative that promotes the reform of state pension systems along the lines of the Chilean model.

“I was able to speak with him briefly after his talk and have corresponded with him by e-mail,” Pareto said. “He has an open-door policy and thrives on sharing his experiences.”

“Dr. Piñera’s visit is an example of how the Chapman School partners successfully with its students and the corporate community, such as LAN Airlines, to sponsor internationally-acclaimed figures of great stature who have many valuable insights to share,” Echeverría said.