consumer stated purchasing preferences and corporate social responsibility in the wood products industry a conjoint analysis in the u s and china the impacts of disclosed level of corporate social responsibility csr domestic versus imported origin and type of construction on consumers stated wood product purchasing preferences were examined in the u s and china hierarchical logit models based on a bayesian framework were utilized to test the magnitude and statistical significance of each wood product attribute using survey data results indicate that u s and chinese respondents a were more likely to choose products from manufacturing companies with a higher level of csr rating compared with an unknown one b preferred domestically manufactured wood products compared to imported ones and c expressed higher interest in wood products made of solid wood compared with composites in terms of demographics respondents higher education levels corresponded with higher preferences for products from companies with the highest five star csr rating in the u s statistically significant income effects were detected only in the chinese sample when respondents indicated their purchasing preferences for wood products with three star or five star csr levels implications for improving wood products companies managerial performance and suggestions for future studies are provided

control and performance of international joint ventures control is a critical concept for successful management and performance of international joint ventures ijvs this paper reviews and synthesizes prior studies addressing the conceptualization and operationalization of control within ijvs as well as the ijv control performance relationship the paper also presents a new conceptualization of ijv control as well as a conceptual frame work for studying control of ijvs

formal schooling and workforce participation in a rapidly developing economy evidence from compulsory junior high school in taiwan abstract using 18 consecutive household surveys this study explores the impact of taiwan s extension of tuition free education from 6 to 9 years upon schooling and labor market outcomes participation sector class of activity and work income i estimate upward shifts relative to preexisting trends of more than 0 4 years of education for males and 0 25 years for females in the first six cohorts affected by compulsory junior high schooling utilizing inter cohort variation within an instrumental variables iv strategy i find larger effects of schooling on females workforce participation and total earnings even controlling for selection

micro processes of translation in the transfer of practices from mne headquarters to foreign subsidiaries the role of subsidiary translators recent research has increasingly emphasized the micro foundations of knowledge transformation in multi national enterprises mnes although the literature has provided ample evidence of the enablers of and barriers to the translation of practices less is known about the activities and efforts of translators that lead to specific types of translation in the context of the transfer of practices initiated at a mne s headquarters hq to foreign subsidiaries we apply a scandinavian institutionalist approach to examine the translation of corporate social responsibility reporting an hq initiated practice that is transferred to five foreign subsidiaries of a uk based mne our paper builds from a preliminary framework based on extant research to develop an extended framework of the micro processes of translation by theorizing the sequence of the micro processes undertaken by translators identifying the conditions under which they occur and connecting them to the three types of translation we provide a deep understanding of the micro foundations of translation when transferring practices from hq to subsidiaries our paper shows that translation is an evolving phenomenon and illuminates the importance of attending to the social spatial and temporal situatedness of translators it also brings insights into the individual experience of institutional distance and its effects on translation

bargaining power ownership and profitability of transnational corporations in developing countries as the bargaining power of the transnational corporations tncs in the sample increased relative to the bargaining power of the host country and as the desire of the tncs for a high level of equity ownership increased the percent equity ownership of the tncs in their subsidiaries increased the relationship between percent equity ownership and subsidiary success from the tncs viewpoint however was j shaped high and low levels of equity ownership were associated with high levels of success control of critical operational variables by the tnc was directly related to success

equilibrium growth of the hierarchical firm shareholder employee cooperative game approach in recent years an implication of a classic paper by wassily leontief 1946 that is the possible inefficiency of the profit maximization principle within a certain bargaining framework has attracted the attention of economists faced with the increased possibility of such inefficiency due to the emergence of firm specific employment structures in large enterprises explorations into the possible modes of efficient and or equilibrium bargains over wage employment constellations have become a topic of recent research by economists most notably robert hall and david lilien 1979 and ian mcdonald and robert solow 1981 among others this paper investigates a similar and related problem supposing that the firm internalizes its own employment structure organized on the seniority principle is the value maximization rule for investment decision making efficient if it is not can we determine the proper rule for striking a balance between the time preference of the shareholder body and that of the employee body this problem will be dealt with in the framework of the cooperative game model of the firm as developed in my 1980 paper it will be shown that lower investment rationing of new jobs and higher pay rates are the consequences of a shift in the power balance within the firm in favor of the incumbent employees vis a vis the shareholder body this analysis will attempt to provide an integrated micro explanation of a widely observed macro phenomena in the 1970 s that is the negative relationship between the real wage and capital accumulation or between the real wage and employment see for example edmond malinvaud pentti kouri and jeffrey sachs the plan of the paper is as follows section i describes the model of the corporate firm internalizing employment structure hierarchically ordered upon the seniority principle section ii derives the coalitional equilibrium values of the endogenous variables of the model as a cooperative game solution it is shown that in the determination of the equilibrium growth rate of the firm gains from growth of the firm accruable to employees in the form of possible promotions must be taken into account to a degree determined by the power balance between the shareholders and the incumbent employees but under what types of institutional mechanisms can the time preference of employees be incorporated into the corporate policymaking section iii describes three highly stylized institutional models of shareholderemployee manager relationships with a view to their efficiency implications the appendix gives some technical results

what determines principle based standards implementation reporting on global compact adoption in spanish firms international accountability standards have proliferated in the last 20 years with the un global compact gc as the most widely accepted principle based standard catalyzing voluntary participation by firms this study aims to improve understanding about the factors that determine companies progress in adopting principle based standards drawing on the resource based view of the firm we examine the direct and combined influences of different organizational resources firm specific resources innovative capability length of participation and internationalization of the firm on standard implementation as perceived by 213 spanish gc signatories our results reveal that the level of firm specific resources has a positive effect on the extent of gc principles implementation and that innovative capability and length of gc participation strengthen this effect contrary to our expectations we find that the internationalization of firms does not have an effect on gc principles implementation we discuss the implications of these findings for scholars and practicing managers

a search theoretic approach to monetary economics the essential function of money is its role as a medium of exchange the authors formalize this idea using a search theoretic equilibrium model of the exchange process that captures the double coincidence of wants problem with pure barter one advantage of the framework described here is that it is very tractable the authors also show that the model can be used to addre ss some substantive issues in monetary economics including the potenti al welfare enhancing role of money the interaction between specializat ion and monetary exchange and the possibility of equilibria with multip le fiat currencies copyright 1993 by american economic association

jack of all trades or a master of one specialization trade and money we consider a model of decentralized exchange where individuals choose the set of goods they produce specialization involves producing a smaller set of goods and doing it more proficiently in doing so agents reduce production costs but also reduce the ease of trading their output we derive the equilibrium degree of specialization and examine how it is affected by underlying fundamentals due to the existence of a hold up problem individuals specialize too little relative to the social optimum introducing money leads to more specialization relative to barter and increases welfare

corporate sustainability reporting index and baseline data for the cruise industry sustainability policies and corporate reports demonstrate the impacts cruise companies acknowledge as their responsibility and the actions put in place to address them this paper develops a corporate social responsibility index based on the global reporting initiative with industry specific additions including labor and human rights health and safety and environmental and economic aspects companies disclose more management than performance data which is typical of early stages of development companies disclosing less information focus on soft indicators which are easy to mimic and demonstrate posturing items disclosed tend to be marginal to the core of the business have a positive economic impact or pre empt sector regulation reports echo the voice of the corporations and not the demands of stakeholders institutional isomorphism has not influenced a homogenization in reporting with only the largest firms reporting at this stage

search bargaining money and prices the goal of this paper is to extend existing search theoretic models of fiat money which until now have assumed that the price level is exogenous by explicitly incorporating bilateral bargaining this allows us to determine the price level endogenously and leads to additional insights concerning the role of money for example we find that monetary equilibria are generally inefficient in the sense that output and prices differ from the solution to a social planner s problem although the difference can become small as the discount rate or search friction vanishes we also find that there exist nonstationary inflationary equilibria

the signaling effect of corporate social responsibility in emerging economies what signals do firms in emerging economies send to stakeholders when they adopt corporate social responsibility csr practices we argue that in emerging economies firms that adopt csr practices positively signal investors that their firms have superior capabilities for filling institutional voids from an institution based view we hypothesize that the institutional environment moderates the signaling effect of csr on a firm s financial performance based on a sample of firms from ten asian emerging economies we find a positive relationship between csr practices and financial performance this positive relationship is stronger in the less developed capital market than in the more developed one the financial benefits of csr practices are also more salient in the low information diffusion market than in the high one we emphasize that signaling theory and the institution based view can jointly contribute to the csr literature

inflation and variety economies undergoing high inflation often experience a reduction of product variety in the marketplace existing models study how inflation affects quantity but very few have studied how inflation affects variety in a monetary model with explicit microfoundations i analyze how inflation affects variety as well as quantity i consider two pricing mechanisms bargaining and price posting with directed search i show that inflation reduces both quantity and variety under both pricing mechanisms quantitatively the model implies that the total welfare cost of 10 inflation ranges from 4 77 to 8 4 under bargaining and is 1 52 under price posting

partner contributions as predictors of equity share in international joint ventures the type of expertise that a company contributes to a joint venture may affect the amount of equity that it owns this research observes the ownership patterns associated with four common combinations of partner expertise in international joint ventures the results rank company assets with respect to the contributor s ability to negotiate majority ownership in the original joint venture contract and that company s tendency to buy up equity from the partner later on

generalized search theoretic models of monetary exchange abstract virtually all simple search models of money assume agents with money cannot produce and so everyone has either 0 or 1 units of money in steady state we alternatively assume agents can always produce and simply restrict money inventories to 0 or 1 this seems better for many issues for example in the standard model it is difficult to interpret increases in the money supply because increasing the fraction of agents holding money decreases the economy s productive capacity our model avoids these problems and thus delivers more natural and simpler implications in many contexts we compare results on existence multiplicity and welfare across models

an integrated anti opportunism system in international exchange building on economic and social exchange theories this study develops an integrated model in which curtailing opportunism in international joint ventures ijvs requires four interrelated sets of suppressing forces 1 contractual ordering contractual inclusiveness and contractual obligatoriness 2 structural ordering managerial governance and equity captiveness 3 relational ordering interparty attachment and boundary spanner ties and 4 justice ordering procedural justice and distributive justice using a sample of 192 ijvs in an emerging market this study finds general support for our theoretical model our research validates that countering opportunism involves a system wide effort that integrates economic and social mandates unifies ex ante and ex post mechanisms controls both egoistic and non egoistic motivations and combines organizational level and individual level forces for partners from individualist cultures economic ordering forces contractual and structural are stronger than social ordering forces relational and justice in relation to opportunism resistance whereas for partners from a collectivistic culture social ordering forces are relatively stronger than economic ordering forces for this end

role conflict and role ambiguity of chief executive officers in international joint ventures this study examines the organizational and personal correlates of role conflict and role ambiguity of chief executive officers heading international joint ventures role conflict was found to be lower when the number of parent firms was higher and when the ceo had spent more years with the organization role ambiguity was found to be lower when the ceo had more years of education when the power distance and masculinity femininity gap between parents were lower and when the individualism collectivism and uncertainty avoidance gaps were higher the implications of these findings for role theory and international management are discussed

endogenous market formation and monetary trade an experiment the theory of money assumes decentralized bilateral exchange and excludes centralized multilateral exchange however endogenizing the exchange process is critical for understanding the conditions that support the use of money we develop a traveling game to study the emergence of decentralized and centralized exchange theoretically and experimentally players located on separate islands can either trade locally or pay a cost to trade elsewhere so decentralized and centralized markets can both emerge in equilibrium the former minimize trade costs through monetary exchange the latter maximizes overall surplus through nonmonetary exchange monetary trade emerges when coordination is problematic whereas centralized trade emerges otherwise this shows that to understand the emergence of money it is important to amend standard theory such that the market structure is endogenized

internal bargaining labor contracts and a marshallian theory of the firm the theme of this paper is due to alfred marshall who states that nearly the whole income of a business may be regarded as a composite quasi rent divisible among different persons in the business by bargaining supplemented by custom and by notion of fairness and the division of quasi rents entails de facto some sort of profit loss sharing between almost every business and its employees principles of economics 8th ed book vi ch viii sec 10 pp 520 21 marshall emphasizes that a significant portion of composite quasi rent is derived from the organization of business and would be lost if employer employee connections were dissolved in this view bargaining can even be tacit insofar as there is an organizational basis which ensures agreement among the concerned parties consequently internal bargaining models of the firm may be applicable to the analysis of european style codetermination and japanese style labor management also as the relative bargaining strength between labor and management changes such a view of the firm admits as its extrema the organization of a labor managed firm lmf and the textbook case of a profit maximizing firm pmf masahiko aoki 1980 1982 and jan svejnar 1982 have recently explored models of an internal bargaining firm their analyses however consider the firm s long run behavior only under restricted circumstances without market uncertainty the relevance of the internal bargaining approach to profit sharing and labor management would be enhanced if we integrated the firm s short run wage employment policies with its long run plans for the rate of growth and capital labor substitutions this i do by underscoring the firm s organizational basis which is essentially a long term contractual association between workers and management i combine costas azariadis 1975 and martin baily s 1974 apparatus of labor contracting with efficient bargaining to investigate the effect of varying degrees of labor s bargaining power upon the firm s shortand long run policies under uncertainty these results are then contrasted with the empirical findings of collective bargaining for example richard freeman and james medoff 1981 conventional results of lmf models jaroslav vanek 1970 benjamin ward 1958 and the recent macroeconomic approaches to wage employment adjustments ian mcdonald and robert solow 1981

money and specialization in a neoclassical growth model this paper studies the links between money specialization and capital accumulation in a neoclassical growth framework for tractability the transactions role of money is introduced through a cash in advance constraint in contrast to the standard cash in advance model an individual s reliance on money balances for transactions is endogenous through the choice of specialization although the cash in advance constraint only applies to consumption the model exhibits a reverse tobin effect we conclude by discussing the implications of the model for the welfare costs of inflation

inter partner credible threat in international joint ventures an infinitely repeated prisoner s dilemma model we use an infinitely repeated prisoner s dilemma model to examine the role of inter partner credible threat in international joint ventures ijvs inter partner credible threat refers to the certainty of either partner s retaliation given the other partner s earlier cheating we argue that inter partner credible threat represents the first order determinant and partners management control represents the second order determinant of partner payoffs when inter partner credible threat is present both partners achieve balanced payoffs whereas when it is absent partners relative control will determine their relative payoffs in depth interview data from four ijvs in china provide preliminary support for our theoretical arguments

models of modern sector labor market institutions in developing countries abstract the paper argues that policy conclusions derived from existing theories of economic development may be seriously flawed because the theories do not model correctly the modern sector labor market the paper first presents evidence that trade unions and governments frequently exert positive influence not only on firms wages but also on their employment levels it then presents models that capture this phenomenon and permit one to determine whether the observed levels of employment are insufficient optimal or excessive from the private and social standpoints the paper concludes with a discussion of how the analysis could be implemented in empirical studies and in practical policy work

bargaining power fear of disagreement and wage settlements theory and evidence from u s industry the paper develops and estimates a theoretical model of wage determination and union nonunion wage differentials in order to overcome the institutional ctiticisms of the formal bargaining literature the paper generalizes the nash zeuthen harsanyi model by linking the solution to the institutional concepts of bargaining power and fear or cost of disagreement and by making the outcome depend not only on endogenous but also on exogenous factors an operational specification of bargaining power and fear of disagreement allows the model to be estimated with data covering twelve companies and trade unions during the period from mid 1950 s to the late 1970 s while giving limited support to the nashzeuthen harsanyi solution the empirical analysis indicates that the bargaining outcome usually deviates from the nash zeuthen harsanyi point and in accordance with the institutionalist claim that it varies significantly with exogenous factors contrary to the traditional labor economics view the results do not support the general conclusion that the bargaining solution lies on the marginal revenue product curve of labor instead the relevant coefficients suggest that for many firms and unions the outcome might be better characterized by the efficient contract vertical contract curve

measuring performance of international joint ventures international joint ventures ijvs are increasing in frequency and strategic importance however efforts to identify variables associated with ijv performance have been constrained by disagreements regarding the comparability and reliability of alternative performance measures and methods this study tests several hypotheses regarding the reliability and comparability of a range of objective and subjective measures of ijv performance as well as evaluating the relative utility of different data collection approaches

company delistings from the un global compact limited business demand or domestic governance failure while a substantial amount of the literature describes corporate benefits of corporate social responsibility csr initiatives the literature is silent concerning why some companies announce csr initiatives yet fail to implement them the article examines company delistings from the un global compact delistings are surprising because the csr agenda is seen as having won the battle of ideas the analysis proceeds in two parts i first analyze firm level characteristics focusing on geography while controlling for sector and size i find that geography is a significant factor while small firms are more likely to be delisted than large firms and some sector characteristics determine delistings next i proceed to uncover country level characteristics including the degree of international economic interdependence as well as the quality of governance institutions multivariate regression analysis shows that companies are less likely to be delisted from countries where domestic governance institutions are well functioning to a lesser extent i find that firms from countries with international economies are more willing to comply with the un global compact requirements countries with a high share of outward fdi capita have a lower share of delisted firms as do countries that are internationally competitive

firm ownership preferences and host government restrictions an integrated approach two approaches may explain how multinational enterprises mnes select ownership structures for subsidiaries the first argues that mnes prefer structures that minimize that transaction costs of doing business abroad the second argues that ownership structures are determined by negotiations with host governments whose outcomes depend on the bargaining power of the firm this paper presents a framework integrating these two approaches and uses statistical methods to separate their effects empirically

money and prices a model of search and bargaining abstract this paper makes commodities divisible and incorporates bargaining into the search theoretic model of money to determine the purchasing power of money or price it is shown that two monetary equilibria always coexist where fiat money is universally accepted the two equilibria differ in price output welfare and the velocity of money sunspot monetary equilibria exist in which money is universally accepted in all states of the economy multiplicity has novel implications on the effectiveness of currency substitution and exchange market intervention journal of economic literature classification numbers c78 e40

contested exchange versus the governance of contractual relations there is much in the paper by samuel bowles and herbert gintis with which i agree but there are also real differences which is to be expected since they and i examine economic organization through very different lenses thus whereas they view economic organization through the lens of power and contested exchange i believe that economizing and governance is for most purposes a more productive perspective i also have a variety of minor differences with their paper i begin with our agreements next consider conceptual differences and then run through the more minor matters

the united nations global compact as a facilitator of the lockean social contract the united nations global compact ungc has difficulties in attracting new voluntary members and inciting them to implement its ten principles the present article analyzes this implementation deficit from the perspective of lockean social contract theory and derives new strategies for reducing it on this view the ungc presents itself as the attempt to realize a set of moral norms typically enforced by an impartial minimal state protecting its citizens from violations of their natural rights negative externalities and discrimination by bribed officials it will only succeed in facilitating the realization of those norms on a strictly voluntary basis if it manages to overcome the underlying n person prisoner s dilemma this requires the existence of a critical mass k n of conditionally moral firms which are willing to observe the ungc principles and to resist the temptation to free ride on their observance by others if it does not disadvantage them in comparison to their situation in a state of universal non observance four contracting problems can impede the conclusion of this lockean social contract the ungc has a slim chance of overcoming its implementation deficit on a non coercive basis by cultivating four institutional capabilities assisting conditionally moral firms in surmounting those four problems of voluntary norm compliance

corporate social responsibility in europe and the u s insights from businesses self presentations the paper compares the extent and content of businesses communications about corporate social responsibility csr in france the netherlands the u k and the u s in particular the study investigates the nature of csr principles processes and stakeholder issues discussed in web pages the results show that businesses in the four countries do not display the same eagerness to appear as socially responsible and employ diverse means to convey social responsibility images

liquidity a new monetarist perspective this essay surveys the new monetarist approach to liquidity work in this literature strives for empirical and policy relevance plus rigorous foundations questions include what is liquidity is money essential in achieving desirable outcomes which objects can or should serve in this capacity when can asset prices differ from fundamentals what are the functions of commitment and collateral in credit markets how does money interact with credit and intermediation what can and should monetary policy do the research summarized emphasizes the micro structure of frictional transactions and studies how institutions like monetary exchange credit arrangements or intermediation facilitate the exchange process

modes of foreign entry a transaction cost analysis and propositions a frontier issue in international marketing is the appropriate choice of entry mode in foreign markets the objective of this paper is to offer a transaction cost framework for investigating the entry mode decision this framework provides 1 a theoretical basis for systematically interrelating the literature into propositions 2 propositions about interactions which resolve the apparently contradictory arguments advanced to date specifically the paper illustrates the feasibility of clustering 17 entry modes into the degree of control the mode provides the entrant proposes that the most appropriate i e most efficient entry mode is a function of the tradeoff between control and the cost of resource commitment advances testable propositions delimiting the circumstances under which each mode maximizes long term efficiency

specialization and efficiency with labor market matching abstract this paper constructs a labor market matching model with heterogeneous workers due to matching frictions there may be a mismatch of talents within a production team forcing a worker to specialize in a task at which she is not talented we consider a partnership model where production takes place in teams consisting of two workers we characterize the steady state of the matching equilibrium the constrained efficiency of the matching equilibrium depends on the distribution of talents the constrained efficient allocation can always be implemented by a type specific tax we also examine an alternative model with diamond mortensen pissarides type matching between firms and workers

the effects of national culture on corporate social responsibility disclosure a cross country comparison this article presents a cross country analysis of the influence of national culture on corporate social responsibility csr disclosure we analyse the relationship between the hofstede s cultural