does culture affect behavior and performance of firms the case of joint ventures in china this study applies a resource based view of the firm to analyze data from a sample of 898 joint venture firms in china including both joint ventures established by overseas chinese and by firms from western cultures it is hypothesized that culture could influence the timing of entry of joint ventures their investment preferences and performance anovas and regressions were conducted and the results suggest the impact of cultural as well as technological resources this paper concludes with a discussion on the implications of the findings

the effect of information streams on capital budgeting decisions in this paper a new decision rule for capital budgeting is considered a firm has the opportunity to invest in a project of uncertain profitability over time the firm receives additional information in the form of signals indicating the profitability of the project the belief that the firm needs to have in a profitable project for investment to be optimal is calculated and analyzed it is shown that the probability of investing in a project with low profitability is larger when the firm uses a conventional rule like the net present value rule as a counterintuitive result it is obtained that it can be optimal to undertake the investment at a later point in time in case the expected number of signals per time unit is higher also an error measure is discussed that indicates the accuracy of capital budgeting rules in this stochastic environment

the international debt crisis and bank loan loss reserve decisions the signaling content of partially anticipated events the huge increases in loan loss provisions by major bank holding companies bhcs in 1987 were a signal of impending asset writedowns of loans to less developed countries ldcs 1 since loan loss reserve decisions like asset write downs are simply bookkeeping adjustments significant market reactions to such announcements should not be expected strong and meyer 1987 however found a positive and statistically significant cumulative average residual after the announcement of asset write downs 2 thakor 1987 argues that write downs have a price effect not because they mean much by themselves but because they signal events to come specifically he sees write downs as a signal of economic value enhancing corporate restructuring to come in the future p 662 we use event study methods to examine security returns for the twenty five largest u s bank holding companies surrounding citicorp s 3 billion loan loss

an institution based view of international business strategy a focus on emerging economies leveraging the recent research interest in emerging economies this perspective paper argues that an institution based view of international business ib strategy has emerged it is positioned as one leg that helps sustain the strategy tripod the other two legs consisting of the industry and resource based views we then review four diverse areas of substantive research 1 antidumping as entry barriers 2 competing in and out of india 3 growing the firm in china and 4 governing the corporation in emerging economies overall we argue that an institution based view of ib strategy in combination with industry and resource based views will not only help sustain a strategy tripod but also shed significant light on the most fundamental questions confronting ib such as what drives firm strategy and performance in ib

an empirical test of a cross national model of corporate social responsibility most models of corporate social responsibility revolve around the controversy as to whether business is a single dimensional entity of profit maximization or a multi dimensional entity serving greater societal interests furthermore the models are mostly descriptive in nature and are based on the experiences of western countries there has been little attempt to develop a model that accounts for corporate social responsibility in diverse environments with differing socio cultural and market settings in this paper an attempt has been made to fill this gap by developing a two dimensional model of corporate social responsibility and empirically testing its validity in the context of two dissimilar cultures australia and bangladesh the two dimensions are the span of corporate responsibility narrow to wider perspective and the range of outcomes of social commitments of businesses cost to benefit driven perspective the test results confirm the validity of the two dimensional model in the two environments the factor analysis revealed two leading dimensions cluster analysis pointed to two distinctive clusters of managers in both australia and bangladesh one consisting of managers with a broad contemporary concept of social responsibility and the other with a limited narrow view the paper concludes that corporate social responsibility is two dimensional and universal in nature and that differing cultural and market settings in which managers operate may have little impact on the ethical perceptions of corporate managers

a process model of capability development lessons from the electronic commerce strategy at bolsa de valores de guayaquil past literature using the resource based view of the firm has concentrated on attributes of firms capabilities and on strategies for exploiting existing firm specific assets comparatively little research has been conducted on how a firm develops manages and deploys capabilities to support its business strategy this study seeks to understand the process of capability development and to establish a model that has both theoretical and practical significance a longitudinal case study of the electronic commerce strategy formation and implementation at bolsa de valores de guayaquil an ecuadorian stock exchange yielded qualitative data that allowed inductive modeling of the capability development process the model reveals that capability development in support of a new strategy is a gradual process that is cumulative expansive and very dependent on the way that difficult to imitate resources and actions are combined at bolsa de valores de guayaquil actions that supported the development of the firm s capability to strategize seem to have contributed the most in the initial phase of the strategy formation and implementation actions that helped the development of the firm s capability to be flexible appear to have contributed the most during the middle phase and actions that supported the development of the firm s capabilities to integrate and engender trust seem to have contributed the most in the final phase in addition the key resources that supported the overall capabilities development process included leadership organizational culture information technology long term view and social networks implications of this model for both research and practice are discussed

information revelation incentives and the value of a real option the real options approach to capital budgeting focuses on valuing benefits of project flexibility this paper presents an incentive consideration in such valuation operating flexibility not only allows a firm to change course in response to new information but also allows interested observers to make inferences based on the change in course or lack thereof such information conveyance through refined operating choices can alter observers incentives as a result an option to delay may prove valuable because it allows a firm to prolong informational advantages

strategic responses to resource management pressures in agriculture institutional gender and location effects sustainable management of natural resources by farmers is under increasing public scrutiny in australia the case of water unsustainably used and stored by agricultural businesses has gained attention with communities in catchments potentially deprived of water and placed at downstream risk yet sustainable water management institutional policy mechanisms remain disjointed around the country the study reported here applies a strategic response typology to a survey of 404 farmers in four different institutional environments in australia to explore their responses to institutional pressures findings demonstrate a convergence in typologies that relate to farmers organising each other and communities influencing and networking for the benefit of agricultural resource management thereby questioning the traditional continuum of resistance furthermore the mid range typology avoidance emerges as a highly problematic typology for sustainable water management policymakers especially those in weaker institutional environments where there is a need to develop policy instruments that retain farmer water management decision making power and encourage networks the paper also extends the strategic response typology to enable understanding of how gender and location affect strategic responses to institutional pressures findings provide insight for policy design in times of increasing catastrophic flood and drought conditions exacerbated by poor water management practice

erratum to how far the tbl concept of sustainable entrepreneurship extends beyond the various sustainability regulations can greek food manufacturing enterprises sustain their hybrid nature over time this study presents the design and selected results of a comprehensive research on measuring the concept of sustainable entrepreneurship we used the methodology of conjoint analysis and developed a hierarchical framework that lists all the multi attributes that exist in the triple bottom line concept in doing so we collected data from 150 greek food companies the multi attributes were categorized and ranked into the following four headings internal social values isv external social values esv environmental values env and economic values ecv specifically we found that the creation of values that improve the safety and hygiene issues of products to consumers is the most important attribute for the isv domain respectively the most important attribute for the esv domain is the creation of values that impact on the local economy accordingly the creation of values for minimizing environmental impacts was found as the most important attribute for the env domain and lastly the establishment of ecv that increase long run profitability was identified as the most important for the ecv dimension finally all the categorized values offer rich feedback for entrepreneurship scholars and parishioners and to that extent our findings are slightly different from those reported in previous researches to other contexts as we have managed to build an aggregated instrument that promotes the hybrid nature of food companies towards international development

responsible entrepreneurship in developing countries understanding the realities and complexities developing countries have recently experienced a burgeoning of small scale individual entrepreneurs sies who range from petty traders to personal service workers like small street vendors barbers and owners of small shops as a result of market based reforms rapid urbanisation unemployment landlessness and poverty while sies form a major part of the informal workforce in developing countries and contribute significantly to economic growth their potential is being undermined when they engage in irresponsible and deceptive business practices such as overpricing sale of underweight or substandard products or attempts to hoard goods to name a few despite the growing interest in corporate social responsibility csr initiatives of small businesses in developing countries the sies have received almost no attention to address this void in the literature we explore the reasons for the less than optimal level of social responsibility demonstrated by some sies in developing countries we do so by drawing upon the existing literature to develop a comprehensive framework of social responsibility of sies highlighting their unique characteristics and the different contextual factors that they encounter in developing countries based on this framework we then present a set of propositions specifying the influence of these contextual factors such as business environment cultural traditions socio economic conditions and both international and domestic pressures on the business practices of sies the framework offers an explanation for the lack of responsible entrepreneurship of sies and has important implications for promoting sustainable business practices in developing countries where businesses are striving hard to survive and compete

the spread of the multidivisional form among large firms 1919 1979 the multidivisional form is the favored form of organization for the large firms that dominate the american economy this study takes up the causes of the dissemination of that form among large firms from 1919 to 1979 five theories are initially proposed as possible explanations for the changes observed and these theories are operationalized and tested the model that seems most consistent with the data emphasizes the ability of key actors to alter structure under three circumstances when the firm has a product related or unrelated strategy which is consistent with chandler s 1962 theorizing when the corporate presidents have a background in sales or finance and when other firms in the industry alter their structures the implications of these results for theories of organizational change are discussed with special reference to the importance of conceiving how actors operate with varying rationalities in this process

mne institutional advantage how subunits shape transpose and evade host country institutions scholars increasingly emphasize the impact of institutions on multinational enterprises mnes but the opposite relationship has attracted less research that is mne agency in relation to institutions based on a comparative case study of six mnes from the united states and sweden this paper remedies this it explores and explicates mne subunits strategic responses to host country institutional constraints and opportunities in five different regions a new institutional approach is adopted which allows for an investigation of mne subunit agency in relation to normative and cognitive institutions as well as regulative ones this fine grained analysis reveals not only what kinds of responses mne subunits invoke but why and how they are able to respond we identify four strategic responses by which subunits shape transpose and evade institutions in the pursuit of competitive advantage innovation arbitrage circumvention and adaptation these responses are driven by three key enablers multinationality foreignness and institutional ambiguity that serve to enhance and heighten three mechanisms reflexivity role expectations and resources by linking the enablers and the mechanisms to specific types of strategic responses in a framework and typology the paper not only contributes to emerging research on the interplay between mnes institutions and strategy but to strategy practice

measuring the effects of regulation with stock price data this article examines the usefulness of stock returns in measuring the effects of regulation when the dates on which market expectations change are not known and standard sources e g the wall street journal are used to choose announcement dates twenty major changes in regulatory constraint since 1887 are considered tests using either monthly or daily data are found to have surprisingly little ability to detect the effects of regulation the evidence shows that formal regulatory announcements are generally anticipated in cases where it is unclear when expectations change

bank foreign lending mandatory disclosure rules and the reaction of bank stock prices to the mexican debt crisis this paper examines the effects of the mexican debt mora torium in august 1982 on bank valuation the mexican default resulted in the passage of regulations requiring public disclosure of bank fo reign lending exposure the authors find that even in the absence of public disclosure regulations investors were able to discriminate a mong banks with different levels of exposure copyright 1987 by the university of chicago

symmetric equilibrium strategies in game theoretic real option models with incomplete information this paper considers a real options model with incomplete information in a duopoly setting i show that even in the presence of a first mover advantage there are circumstances in which the preemption region is eroded entirely and the only equilibrium strategy is of simultaneous type both players should exercise together or not at all this outcome arises if the price paid by a player from exercising the option simultaneously with his competitor over exercising alone as a stackelberg leader is low such an outcome has not been previously recognised in the literature the underlying information structure has been applied in a one firm setting to a range of different contexts of late all of which have competitive pressures in practice as such the existence of this equilibrium under certain conditions ought to be recognised

bank portfolio exposure to emerging markets and its effects on bank market value abstract this study estimates a model of banking company equity returns taking into consideration book value and market value measures of their exposure to emerging markets debt in this estimation general systematic market factors such as the rate of return on the s p500 stock index and yields on a constant maturity 5 year treasury note are held constant such that the exposure variables are accounting for effects due to banks exposure to emerging market debt the results although not uniform among banking companies support the hypothesis that the extent of exposure to emerging market debt are factored into the valuation of banking company equity contemporaneously the inclusion of a market value indicator adds to the explanation of equity returns of some banks it is also clear that knowing the extent of the exposure on a book value basis is important information alone that may allow investors to take account of or evaluate the effects of changes in banking company equity valuation from ldc debt exposures we also perform an event study for three major debt crises to determine whether the market recognizes the effects of these events on bank valuation the event study results show that there is little information from identifying the time period of the crises on banking company equity returns explanations for this are that the information of these possible crises has been embedded in bank changes in exposure and that the market valuation of the emerging market debt is already accounted for by our model

corporate social responsibility and family business in spain despite the economic relevance and distinctiveness of family firms little attention has been devoted to researching their nature and functioning traditionally family firms have been associated both to positive and negative features in their relationships with the stakeholders this can be linked to different orientations toward corporate social responsibility thus this research aims to identify the approaches that spanish family firms maintain about social responsibility based on the model developed by quazi and o brien journal of business ethics 25 33 51 2000 an empirical study carried out for 112 spanish family firms gives support to our initial assumption about these organizations not being a homogeneous group in terms of their orientation towards corporate social responsibility the differences in perceptions do not seem to be associated to biographical characteristics these results lead to some relevant academic and practical implications that suggest interesting lines for future research

conditioning the return generating process on firm specific events a discussion of event study methods empirical investigations into the codetermination of security prices and eco nomic events are called event studies there are several ways of estimating the codetermination of interest since fama fisher jensen and roll 8 it has been general practice to first translate variables into rates of return then net out gen eral market movements and finally examine the relationship between residual returns and events the methodology in all of its variants fails under the rubric of 4 residual analysis empirical methods used in residual analysis deviate from the structure and terminology generally found in classical econometrics while this is not a criticism of residual analysis it results in a communication problem that is more than simply pedantic in nature a broad body of econometric literature dealing with parameter estimation statistical inference and hypothesis testing often goes untapped by empiricists in finance who within internally consistent sets of as sumptions have created a separate body of statistical methods in this paper a union of the two disciplines is advocated to provide a forum for comparing and contrasting alternative empirical methods the event study problem is broken down into three phases the parameterization of informa tion arrival applicable to the problem an examination ofthe relationship between parameters in the information arrival process and the estimates resulting from alternative estimation methods and aggregation across firms experiencing simi

sustainable competitive advantage combining institutional and resource based views this article suggests that the context and process of resource selection have an important influence on firm heterogeneity and sustainable competitive advantage it is argued that a firm s sustainable advantage depends on its ability to manage the institutional context of its resource decisions a firm s institutional context includes its internal culture as well as broader influences from the state society and interfirm relations that define socially acceptable economic behavior a process model of firm heterogeneity is proposed that combines the insights of a resource based view with the institutional perspective from organization theory normative rationality institutional isolating mechanisms and institutional sources of firm homogeneity are proposed as determinants of rent potential that complement and extend resource based explanations of firm variation and sustainable competitive advantage the article suggests that both resource capital and institutional capital are indispensable to sustainable competitive advantage 1997 john wiley sons ltd

sustainable entrepreneurship is entrepreneurial will enough a north south comparison based on an analysis of 44 cases in canada tunisia and cameroon this research attempts to determine the fundaments of sustainable entrepreneurship se in an international perspective and to shed the light on the potential impact of economic institutional and cultural dimensions upon diverse levels of sustainability in small and medium size firms smes neo institutional and entrepreneurship theories were combined in an integrative conceptual model to fully embrace the meanings and practices of se and to question the culture free argument of some prescriptions as well as some international programs the analysis of the rationale behind entrepreneurs committed to sustainability in the three countries compared to less engaged firms shows that entrepreneurs individual values are crucial in all cases socio cultural specificities and institutional realities can however be more or less inductive to the adoption of sustainable practices in smes this study also demonstrates that external stimuli are needed in tunisia and cameroon to reach the same environmental involvement as found in canada moreover support programs to assist smes with the adoption of sustainable practices and communication about the issue have to be tailored to the entrepreneur s motives the firms levels of openness to sustainability the socio cultural practices already embedded and the countries priorities implications for policy management and research are also discussed

the impact of voluntary disclosure on a firm s investment policy in this paper we provide a model which describes how voluntary disclosure impacts on the timing of a firm s investment decisions a manager chooses a time to invest in a project and a time to disclose the investment return in order to maximise his monetary payoff we assume that this payoff is linked to the level of the firm s stock price prior to investing the profitability of the project and the market reaction to the disclosure of the investment return are uncertain but the manager receives signals at random points in time which assist in resolving some of this uncertainty we find that a manager whose objective can only be achieved through voluntarily disclosing the return is motivated to invest at a time that would be sub optimal for an identical manager with a profit maximising objective

a resource based perspective on corporate environmental performance and profitability drawing on the resource based view of the firm we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship with the returns to environmental performance higher in high growth industries we tested these hypotheses with an analysis of 243 finns over two years using independently developed environmental ratings results indicate that it pays to be green and that this relationship strengthens with industry growth we conclude by highlighting the study s academic and managerial implications making special reference to the social issues in management literature

the emergence of corporate social responsibility in chile the importance of authenticity and social networks little is known about how and why corporate social responsibility csr emerged in lesser developed countries in order to address this knowledge gap we used chile as a test case and conducted a series of in depth interviews with leaders of csr initiatives we also did an internet and literature search to help provide support for the findings that emerged from our data we discovered that while there are similarities in the drivers of csr in developed countries there are distinct differences as well in particular we found that different sectors drive csr in chile in contrast to other geographies where consumer demand and government regulation provided the impetus for csr efforts multinational companies mncs and non governmental organizations ngos are key actors in chile mncs imported their csr beliefs skills and processes into chile their efforts resulted in a virtuous cycle once large domestic firms felt pressured by their mnc rivals they too adopted csr initiatives the ability to manage relationships with multiple stakeholders and perceptions of authenticity were also critical to the success of csr in chile using network theory as a lens we suggest that network density and centrality largely determine whether csr efforts will be authentic based on these contentions we suggest avenues for future research

corporate environmental citizenship variation in developing countries an institutional framework this study focuses on why some companies in developing countries go beyond environmental regulations when implementing their corporate environmental social responsibilities or citizenship behavior drawing mainly upon the new institutional theory this study develops a conceptual framework to explain three institutional factors companies market orientations industrial characteristics and corporate identities accordingly we suggest that companies from developing countries that are oriented to markets in developed countries operate in highly concentrated industries and have missionary identities adopt corporate environmental citizenship behavior by going beyond environmental regulations the study also discusses the theoretical policy and managerial implications of the conceptual framework

intertemporal dynamics of corporate voluntary disclosures while empirical evidence alludes to the intertemporal nature of corporate voluntary disclosures most of the existing theory analyzes firms voluntary disclosure decisions within single period settings introducing a repeated multiperiod disclosure setting we study the extent to which firms strategic disclosure behavior in the past affects their prosperity to provide voluntary disclosures in the future our analysis demonstrates that by voluntarily disclosing private information firms make an implicit commitment to provide similar disclosures in the future and therefore are less willing to voluntarily disclose information in the first place this effect is expected to be of larger magnitude for firms 1 with a long history of absence of voluntary disclosures and an impressive past operating performance or 2 that operate in a relatively stable and predictable business and information environment or 3 whose managers have a long time horizon and a high degree of risk aversion

capabilities as a mediator linking resources and the international performance of entrepreneurial firms in an emerging economy this study investigates an under researched topic the relationships between capabilities resources and international performance among entrepreneurial firms in an emerging economy we combine the resource based view of the firm and the capability building perspective of rent creation to shed light on the crucial role of firm specific capabilities that transform key resources into performance outcomes employing a large sample of chinese entrepreneurial firms our investigation demonstrates that while the resources of institutional capital and managerial ties are important in the internationalization effort their effects on international performance are channeled through each firm s adaptive capability this adaptive capability is the firm s ability to coordinate recombine and allocate resources to meet the different requirements of foreign markets specifically our research is able to demonstrate support for the mediating role of capabilities in the relationship between resources and international performance the implications of these findings for theoretical development and future research are discussed

selective disclosures in the presence of uncertainty about information endowment abstract this paper analyzes a setting where firms could have private information from various sources and disclose a selective subset of that information investors have uncertainty about how much information firms have using a stylized model where there are two signals about a firm s future value and the firm may be privately informed of none one or all of those signals this paper establishes an equilibrium link between the cutoff value characterizing the partially informed firm s disclosure strategy and the partition of the signal space characterizing the fully informed firm s disclosure strategy the paper also discusses potential extensions of the model

comments on competitive responsiveness marketing science features many and diverse articles that analyze competitive responsiveness although recent marketing science editorials e g shugan 2002 suggest that competitive responsiveness is only a part of a comprehensive competitive marketing strategy it remains a vital part for that reason and many others marketing science is particularly proud of this special issue edited by david j reibstein and dick r wittink before introducing and vigorously applauding both the editors and authors of this excellent special issue we emphasize that competitive responsiveness raises numerous issues including whether one can forecast outcomes of new policies based on past observations made under old policies i e the lucas critique and decisions regarding which variables should be considered endogenous shugan 2004 i e determined within the model perhaps normative models are inherently perishable evolution in market structure requires modifications over time also although complete consistency within the world of the model is aesthetically pleasing imposing industry specific exogenous constraints that might appear unrelated to the modeling assumptions is sometimes necessary

pro market institutions and global strategy the pendulum of pro market reforms and reversals we review the literature analyzing the impact of pro market institutions on firms global strategy we propose that the ideological tension between whether the government or the market should drive economic development results in a pendulum of pro market reforms and reversals that drive changes in firm strategy and performance much progress has been made in the analyses of pro market reforms and their impact on firms international strategies and performance however there is a need to further learn about four areas 1 the concept of pro market institutions in particular the variety of institutional dimensions the measures and the influence of informal institutions on firm strategies 2 the drivers of changes in pro market institutions especially firms influences and the co evolution of firm strategies and institutional changes 3 the implications of changes in pro market reforms for the interactions among integration diversification and internationalization strategies the causality chains connecting institutions and strategies and the reconfiguration of activities globally and 4 the non traditional moderators that alter the impact of pro market institutional dynamics on firms strategies such as country level political systems industry level competitor reactions and individual level managerial capabilities and perceptions

an evolutionary approach to understanding international business activity the co evolution of mnes and the institutional environment this paper examines the co evolution of mne activities and institutions external and internal to the firm we develop a theoretical framework for this analysis that draws on the more recent writings of douglass north on institutions as a response to complex forms of uncertainty associated with the rise in global economic interconnectedness and of richard nelson on the co evolution of technology and institutions we link historical changes in the character of mne activities to changes in the institutional environment and highlight the scope for firm level creativity and institutional entrepreneurship that may lead to co evolution with the environment we argue that the main drivers for institutional entrepreneurship are now found in the increasing autonomy of mne subsidiaries thus mne agency derives from more decentralized forms of experimentation in international corporate networks which competence creating nodes of new initiatives can co evolve with local institutions unlike most other streams of related literature our approach connects patterns of institutional change in wider business systems with more micro processes of variety generation and experimentation within and across individual firms this form of co evolutionary analysis is increasingly important to understanding the interrelationships between mne activities and public policy

environmental respect ethics or simply business a study in the small and medium enterprise sme context in recent years there have been ever growing concerns regarding environmental decline causing some companies to focus on the implementation of environmentally friendly supply production and distribution systems such concern may stem either from the set of beliefs and values of the company s management or from certain pressure exerted by the market consumers and institutions in the belief that an environmentally respectful management policy will contribute to the transmission of a positive image of the company and its products sometimes however ethics and market rules are not enough to deal with this situation and specific laws must be considered this is the case when companies base their activity on the ethics of self interest concentrating their efforts on projecting an adequate image e g environmental respect rather than fundamentally behaving in environmentally respectful ways this article taking as reference the sme context discusses the reasons for implementing environmentally friendly systems both ethics and business seem to be relevant and therefore a certain balance between market and interventionism seems to be necessary

density dependence in the evolution of populations of newspaper organizations a model of density dependence is proposed to explain regularities in the growth and decline of organizational populations density the number of organizations is assumed to be a function of the social processes of legitimation and competition at low density the model predicts that the legitimation process will dominate and will lead to high organizational founding rates and low organizational mortality rates at high levels of density competition will dominate and consequently founding rates will decline and mortality rates will rise the model is tested with hazard function models using data from nine newspaper populations spanning the 19th and 20th centuries and covering over 5200 newspapers analysis offounding rates provides strong empirical support for the model analysis of mortality rates reveals that the model holds for large populations

evaluation of firm s loss due to incomplete information in real investment decision abstract we investigate the effect of incomplete information in a model where a start up with a unique idea and technology pioneers a new market but will eventually be expelled from the market by a large firm s subsequent entry we evaluate the start up s loss due to incomplete information about the large firm s behavior we clarify conditions under which the start up needs more information about the large firm the proposed method of evaluating the loss due to incomplete information could also be applied to other real options models involving incomplete information

the driving forces of process eco innovation and its impact on performance insights from slovenia this study endeavors to explore the driving forces of process eco innovation and its effect on company performance by adopting an integrative approach we focus on process eco innovation which pertains to technological and non technological solutions that result in a reduction of material and energy costs for companies in this regard the study sheds light on the drivers and outcomes of process eco innovation adoption using data collected from 223 slovenian companies the results reveal that certain determinants i e competitive pressure customer demand managerial environmental concern command and control instrument and economic incentive instrument are conducive to the deployment of process eco innovation empirical evidence reveals competitive pressure as the most influential driving force of process eco innovation followed by managerial environmental concern and customer demand effectiveness in spurring process eco innovation is also found to be a command and control instrument and an economic incentive instrument while expected benefits do not spur process eco innovation pertaining to the outcomes of process eco innovation adoption we can conclude that it pays to be eco process eco innovation is worthwhile in terms of company profitability growth and competitive benefits these findings suggest several courses of action for both policy makers and companies hence we conclude by providing implications for both

the future of stakeholder management theory a temporal perspective we propose adding a temporal dimension to stakeholder management theory and assess the implications thereof for firm level competitive advantage we argue that a firm s competitive advantage fundamentally depends on its capacity for stakeholder management related transformational adaptation over time our new temporal stakeholder management approach builds upon insights from both the resource based view rbv in strategic management and institutional theory stakeholder agendas and their relative salience to the firm evolve over time a phenomenon well understood in the literature and requiring what we call level 1 adaptation however the dominant direction of stakeholder pressures can also change namely from supporting resource heterogeneity at the firm level to fostering industry homogeneity and vice versa when dominant stakeholder pressures shift from supporting heterogeneity towards stimulating homogeneity in industry the firm must engage in level 2 or transformational adaptation stakeholders typically provide valuable resources to the firm in an early stage without these resources which foster heterogeneity in line with rbv thinking the firm would not exist at a later stage stakeholders also contribute to inter firm homogeneity via isomorphism pressures in line with institutional theory thinking adding a temporal dimension to stakeholder management theory has far reaching implications for this theory s practical relevance to senior level management in business

the marketing challenge towards being profitable and socially responsible this article reviews the history of marketing thought in relation to social responsibility and business ethics the main objective of the article is to show that business can be profitable and socially responsible at the same time by practising the societal marketing concept more specifically it presents the development of a marketing philosophy discusses the influence of consumerism on the marketing concept and deals with ethics and social responsibility in marketing it is argued that organisations who adopt the societal marketing concept will be the ones most likely to make long run profits as well as be beneficial to society as a whole

transforming sustainability challenges into competitive advantage multiple case studies kaleidoscope converging into sustainable business models abstract recent tendency has been pushing organizations to rethink their role in society and making organization reflect that profit may not be the only and foremost important business performance criteria thus recent literature has been exploring the sustainable business models sbm s as a way to insert sustainability goals into the core of business decisions this research aims to advance in this body of knowledge and proposes a theory and practice based framework to support organizations towards more sbm making explicit main elements to align business to sustainability performance goals to support the argument that there is no unique solution to design sbm this research performs a multiple case studies in eleven organizations from diverse sectors situated in brazil and in the united kingdom results show that sbm is not an attempt to deny business as usual perspective but rather it seeks to complement this view by adding a more axiological and systemic approach in particular three convergent aspects were identified in the case studies as relevant efforts support the integration of sustainability into sbm s value creation and delivery system 1 the connection between business purpose and employees values and believes 2 the pro active and clear engagement in solving sustainability problems and 3 the need for system level changes to enable successful sbm s this systemic thinking is highlighted by the concept emerged from the research the cascaded sustainable value captured representing that as sbm s are part of a value network value delivered by the organizations is captured not only by stakeholders to which they have direct contact but rather this is also deployed to stakeholders of focal company s stakeholders this distinction is not always trivial for companies so the proposed concept can support advances in sbm discussions further studies are called to the challenge of making explicit that sbm s are not only companies that directly addresses a specific social and or environmental problem but rather is an emerging paradigm on how to manage efficient businesses in any sector to add positive value to the globe

the reaction of bank stock prices to the international debt crisis abstract in this paper we develop a cross sectional regression approach to estimate the impact of foreign loan exposure on the pricing of u s bank stocks a new approach is required because news about foreign loan problems may arrive incremently over time rather than reaching the market on a few specific dates the way earnings and dividend announcements do consistent with this interpretation we find that foreign loan exposure had a significant impact on the pricing of u s bank stocks during the years 1982 and 1983 but that the stock prices adjusted continually over the two year period rather than jumping on a few particular days

bank capital regulation and the valuation effects of latin american debt moratoriums abstract we examine effects of the mexican and bolivian debt moratoriums on bank share prices and analyze whether bank capital regulation influences these returns we hypothesize that investors perceived that capital deficient banks with exposure to this debt would sustain greater regulatory costs due to increased pressure from regulators to strengthen their capital bases or to reduce leverage consistent with this hypothesis we find that the impact of these debt moratoriums on bank stock returns is more unfavorable for capital deficient banks than for banks that met regulatory standards of capital adequacy

bank runs and currency run in a system without a safety net argentina and the tequila shock abstract this paper tests the random withdrawals vs informed based theories of bank runs in the context of the bank panic that took place in argentina as a consequence of the mexican devaluation of december 20 1994 this evidence is unique in several ways it is the case of a contemporary banking system with virtually no explicit safety net a currency board with no deposit insurance scheme and a case in which the bank runs were triggered by a currency run the findings of the paper provide support to the informed based theories and show that depositors are concerned with the impact of a currency run on bank solvency

how can responsible family ownership be sustained across generations a family social capital approach responsible family ownership rfo is a combination of the family s commitment to the family firm s ff s stakeholders in the long term and the explicit behaviour of the family members associated with the firm however families are not individuals but rather a system of relationships among family members in such a context misunderstandings in communication anachronistic mentalities and different value systems can block the intergenerational transmission of rfo consequently the responsibility of the family towards the ff s stakeholders may be damaged and the firm s socially responsible behaviour hindered this paper aims to identify how rfo is transferred across generations and to ascertain the role that family social capital fsc plays in preserving the transmission of rfo from generation to generation our research is based on three in depth case studies of mexican family owned small and medium sized enterprises first the paper identifies and contrasts a set of fsc specific factors and problems which play a relevant role in the transmission of rfo while recognizing the influence of the mutually reinforcing dynamics of fsc dimensions secondly the family s honourableness a lander in j bus ethics 116 4 751 767 2013 is identified as a key driver for sustaining the transmission of rfo finally the paper identifies rfo institutionalization required to face the intrinsic problems of transmitting rfo in growing families

causes of the difficulties in internationalization we study the causes of the difficulties faced by firms when they internationalize in search of new markets we build on the resource based theory to argue that the difficulties in internationalization can be separated into three main sets based on their relationship to advantage loss of advantage provided by resources transferred abroad creation of a disadvantage by resources transferred abroad and lack of complementary resources required to operate abroad in each set we further distinguish difficulties that are specific to a firm from those that are common to a set of firms we argue that only a few of the resulting types of difficulties of internationalization are exclusive to the cross border expansion and propose solutions that address the root cause of each type

extending environmental management beyond the firm boundaries an empirical study of dutch food and beverage firms consumer demand for environmental sustainability and for affordable prices calls for cooperation and information exchange in food chains to reduce joint environmental impact known as externally oriented environmental management e em e em is increasingly regarded as a management tool to simultaneously improve environmental operational and business performance understanding the factors that influence managers to develop e em helps to design environmentally and economically sustainable food chains the prior research regarding these factors is not exhaustive and demanded a multi period approach this study expands the understanding of the factors that influence managers to develop e em with a multi period empirical research we address the effects of external institutional pressures regulative normative and culturally cognitive and the level of in company environmental management i em on e em which involves information exchange in the chain cooperation with suppliers and customers the analysis relies on survey data of 255 and 96 dutch food and beverage f b processors from 2002 and 2010 respectively the findings indicate that respondents have considerably improved i em over time i em requires in company pzrocedures ranging from environmental strategy formulation to the managerial review of achieved results to assure continuous improvement of environmental performance f b processors that had already achieved a high level of i em are more likely to develop e em also growing normative and culturally cognitive pressures from supply chain partners and increasingly from long term public private environmental covenants significantly influenced e em implementation however regulative pressure from public authorities had no impact it appeared that e em is influenced mostly by institutional pressures when the firms are less experienced with i em

the international debt crisis and bank security returns in 1982 this research investigates the reaction of bank security returns to the 20 august 1982 mexican request for the rescheduling of its external debt empirical results show that the reaction of bank stocks was rapid and significantly negative within six days of the published announcem ent prices had adjusted to reflect levels of individual bank exposure which re futes the much longer time impliedin other studies of this event the authors c onclude that the marketreaction was essentially efficient rational and orderly copyright 1987 by ohio state university press

on the efficiency of least squares regression with security abnormal returns as the dependent variable monte carlo procedures are used to compare the finite sample performance of several estimators that may be used in cross sectional regressions with security abnormal returns as the dependent variable alternative models of event induced increases in stock return variance are examined for the event clustering scenario event clustering implies crosssectional correlation and heteroskedasticity in market model prediction errors violating one of the fundamental ordinary least squares ols assumptions i i d disturbances nonetheless provided that the conditions for asymptotic validity derived by greenwald 1983 are met the ols estimator is well specified in finite samples further for sufficiently large cross sections there is no advantage to several other more complex estimators

depositor behavior under macroeconomic risk evidence from bank runs in emerging economies depositor behavior has been associated with bank specific characteristics random runs or contagion episodes using evidence on the 2000 02 bank runs in argentina and uruguay this paper shows that macroeconomic risk is also important few macroeconomic shocks can quickly cause large runs macroeconomic risk affects deposits regardless of traditional bank specific characteristics furthermore bank exposure to macroeconomic factors can explain differences in deposit withdrawals during crises the evolution of bank specific characteristics is mainly driven by macroeconomic factors while the informational content of bank specific variables declines overall depositors seem responsive to risk in a broader sense than that often considered by the literature

the impacts of uncertainties in a real options model under incomplete information abstract this paper examines the impact with respect to the uncertainty of the underlying state variable profit uncertainty on the real options model in a situation of incomplete information profit uncertainty has not incorporated into the real options model under incomplete information in that the underlying state variable is not formulated as the stochastic process see e g bernardo a e chowdhry e b 2002 resources real options and corporate strategy journal of financial economics 63 211 234 we extend the model developed by bernardo and chowdhry to formulate the underlying state variable as the stochastic process we conclude that profit uncertainty has the same type of impact on the real options value and its triggers both under complete and incomplete information

measuring corporate social responsibility for competitive success at a regional level abstract the relevance of corporate social responsibility in the business world is enhanced by its linkage with other variables of strategic nature in the firm s activity for this purpose the objective of the paper is to define an overall scale to cover their different dimensions social economic and environmental by analyzing the cause effect relations with performance and competitive success this under researched topic has been studied in a sample of 67 medium and big firms within a specific regional context a pioneer region in europe which is starting to promote responsible business behaviour by the regional government for that structural equation methodology based on partial least squares path modelling has been applied the results show the positive direct and significant effect of social responsibility orientation of firms to competitive success and the mediating effect of performance the established set of indicators that define corporate social responsibility provides a simple and useful guidance for responsible actions implementation to upgrade regional competitive success

human resource management in us subsidiaries in europe and australia centralisation or autonomy we explore determinants of subsidiary autonomy in setting human resource management hrm practices within us parented multinational enterprises mnes in europe and australia we examine both the effect of strategic context and the effect of the institutional location of the subsidiary we find that us mnes show greater centralisation of control over hrm where the subsidiary faces global markets in coordinated market economies vs liberal market economies and where union density is low

an approach to statistical inference in cross sectional models with security abnormal returns as dependent variable several recent event studies test hypotheses about the association between event related abnormal security returns and firm characteristics using a three step procedure first forecast model parameters are estimated usually parameters of a market model second prediction errors or residuals are computed over an event period third prediction errors are regressed cross sectionally on firm characteristics hypothesized to influence the impact of the event on share values results of these regressions are used to draw inferences about the relation between abnormal returns and firm characteristics researchers who employ three step procedures acknowledge that crosssectional ols regressions lead to valid inferences if the disturbances are iid normal in cross section see for example leftwich 1981 p 23 and lustgarten 1982 p 138 while sufficient assumptions to draw valid inferences from ols regressions are clear these assumptions are violated if there is cross correlation and cross sectional heteroscedasticity in the firm return processes from which the prediction errors are estimated assumptions about the processes generating these prediction

banks as monitors of other banks evidence from the overnight federal funds market this study provides evidence that banks are effective monitors of their peers by showing that the interest rate paid on federal funds transactions reflects differences in credit risk across borrowers in addition the size and relative importance in the funds market of the trading institutions are shown to affect the rates charged for overnight borrowing thereby providing insight into the nature of competition in the federal funds market transaction volume and size of transaction effects are uncovered as is evidence of relationship banking between banks these results are made possible by unique data identifying individual federal funds transactions copyright 2001 by university of chicago press

the brazilian default announcement and the contagion effect hypothesis abstract in this paper we use stocl market data to test several hypotheses regarding possible investor reaction to the february 20 1987 brazilian default both the traditional event study approach and a generalized least squares regression using brazilian exposure as an explanatory variable for abnormal returns are used a sample of 46 bank holding companies all listed on the new york or american srock exchanges is divided into groups of no low and high brazilian exposure we find that the initial stock market reaction to the default represents a rational investor response to new bank specific information however the stock market reaction also reveals that not all relevant information was contained in the disclosure announcement further we find some evidence of a contagion effect related to size

state governance and technological innovation in emerging economies state owned enterprise restructuration and institutional logic dissonance in china s high speed train sector can state governance spur firm innovation in an emerging economy and transform state owned enterprises soes from dying dinosaurs to dynamic dynamos we seek an answer to this question by investigating the innovative performance of restructured soes in china s high speed train sector we expect that soe restructuration will improve firm innovation but that the degree of improvement will depend on how the state conducts firm governance building on institutional theory we distinguish state governance via equity ownership and administrative affiliation in an emerging economy with market hierarchy institutional conflicts under such conflicts restructured soes experience institutional logic dissonance which hinders organizational change for technological innovation we hypothesize that state ownership exacerbates institutional logic dissonance at a restructured soe thus limiting innovation improvement from restructuration in contrast state affiliation mitigates firm dissonance and hence augments such improvement we find empirical evidence for these hypotheses in a comprehensive panel of high speed train manufacturers in china between 1989 and 2015 this study contributes to the institution based theory of technological innovation in emerging economies on the practical front our findings suggest that emerging states may adopt arms length governance to spur soe innovation and unleash these dynamic dynamos to fuel sustainable economic growth

cross cultural reliability and validity of a scale to measure firm entrepreneurial orientation abstract this study presents a foreign language version of a popular scale for measuring entrepreneurship and tests the instrument s utility in cross cultural settings as a means of validating it for use abroad entrepreneurship refers to the pursuit of creative or novel solutions to challenges confronting the firm including the development or enhancement of products and services as well as new administrative techniques and technologies for performing organizational functions entrepreneurship is a fundamental posture instrumentally important to strategic innovation particularly under shifting conditions in the firm s external environment and is applicable to any firm regardless of its size and type scholars note that entrepreneurial activity is critical because it stimulates superior performance and may well be the key fundamental element in the procurement of advantages relative to competitors researchers have developed a popular scale for measuring entrepreneurship at the firm level which has been found to be highly valid and reliable this scale the entrescale examines eight items reflecting the innovative and proactive disposition of management at a given firm however as the entrescale s measurement properties have never been comprehensively assessed in a cross cultural setting the instrument lacks strong evidence of international validity and reliability accordingly the cross cultural correspondence between the entrescale and the construct it is supposed to measure is unknown as is the extent of its utility to international practitioners this situation reflects a problem common to measuring instruments developed in the united states and is particularly troublesome for scales intended to measure foreign phenomena of interest in international business the researcher who assumes that a scale developed at home will function with equal efficacy abroad is most likely asking for trouble there is a risk that such assumptions will lead to invalid inferences an outcome potentially disastrous for the practitioner seeking to design appropriate strategies for international success sound measures of entrepreneurship are especially critical for managers attempting to understand the construct s cultural dynamic at both the organizational and country levels within subsidiaries agencies and other such entities presently representing or offering to represent the firm s interests abroad by understanding the entrepreneurial dynamic in foreign settings the multinational firm may be able to structure operations in ways that better suit existing local conditions and thereby avoid potentially adverse consequences further it is useful to discern by means of national studies the entrepreneurial characteristics of management at firms including existing or potential competitors across entire countries as a means of addressing this issue this study seeks to test the measurement properties of the entrescale using samples of english and french speaking managers results indicate that the scale performs well in terms of both reliability and validity and possesses a unique factor structure in concrete terms this implies that the entrescale is suitable for measuring the entrepreneurship construct abroad it is hoped that these results will 1 contribute to improving future research endeavors of scholars studying the role of entrepreneurship in the increasingly global environment of business 2 provide practitioners with a scale that can be used to measure the extent of entrepreneurial orientation among main operations subsidiaries and potential partner firms in foreign lands and 3 raise the standard by which measuring instruments are designed and used for research in cross cultural contexts

start up sustainability an insurmountable cost or a life giving investment abstract an outstanding question in the entrepreneurship literature reigns given recent emphases on sustainable business practices and corporate social responsibility if small start ups are generally stretched for time and resources does it enhance their chances for survival and success to be sustainable and socially responsible new firms can aid in rectifying pressing environmental and social issues by being more sustainable while many entrepreneurs like a sustainable business model and or mission investment may not follow so willingly this paper examines a sample of 300 start ups across thirty cities around the world to consider whether sustainability is rewarded by investors investors signal confidence in start ups when they infuse life extending investments into them this analysis also considers whether a more sustainable national context affects investor confidence and whether a sustainable firm within a sustainable national context gains more investor attention and investment results show that investors avoid sustainable firms particularly those that are environmentally sustainable moreover investors enjoy national contexts that are socially responsible but pay no attention to those that are environmentally conscious in addition firms that are sustainable in a sustainable national context are not better off for attracting investment insights for policy are that mainstream investors are attracted by national social policies but these investors are unlikely to be the main force behind sustainable venture growth under today s conditions

does the japanese stock market price bank risk evidence from financial firm failures the ability of the japanese stock market to appropriately price the riskiness of japanese financial firms has been frequently questioned particularly in light of japan s widespread financial distress in recent years and poor disclosure requirements this paper examines the response in equity returns of japanese banks to the failure of four commercial banks and two securities firms between 1995 and 1998 using event study methodology the analysis finds that share prices of surviving banks on the whole responded unfavorably to the failures and that financially weaker survivors were more adversely affected this suggests that despite the distress and alleged opaqueness bank shareholders were able to use available indicators of financial condition both to incorporate new information quickly into stock prices and to differentiate among banks

the alert and creative entrepreneur a clarification israel m kirzner is the 2006 winner of the international award for entrepreneurship and small business research the fsf nutek award in this prize lecture he argues that a number of those who have commented on his work have misunderstood certain aspects of his theoretical system and as a result the common distinction in the literature between schumpeterian and kirznerian entrepreneurs is flawed he also argues that his understanding of the market process set in motion by entrepreneurial decisions provides a theoretical underpinning for public policy vis a vis entrepreneurship professor kirzner s main contributions to the economics of entrepreneurship were also presented and evaluated by douhan et al small business economics 29 1 2 213 223 2007

default and liquidation timing under asymmetric information abstract we consider a dynamic model in which shareholders delegate the running of a firm to a manager who observes private information about the firm s running and liquidation costs we analytically derive the optimal compensation scheme contingent on the firm s cost structure information asymmetries can change the high cost firm s bankruptcy choice and timing most notably even if the liquidation value is higher than the face value of debt the high cost firm can choose default rather than liquidation to reduce the manager s information rent this can lead to the counterintuitive result that the debt value increases beyond the face value as the firm approaches default and that it jumps upward at the default time information asymmetries accelerate negative liquidation and delay positive liquidation whereas they accelerate default the optimal leverage ratio of the asymmetric information case becomes higher than that of the symmetric information case because more debt mitigates the loss due to information asymmetries our results can potentially account for many empirical findings

the impact of social structure on economic outcomes s ocial structure especially in the form of social networks affects economic outcomes for three main reasons first social networks affect the flow and the quality of information much information is subtle nuanced and difficult to verify so actors do not believe impersonal sources and instead rely on people they know second social networks are an important source of reward and punishment since these are often magnified in their impact when coming from others personally known third trust by which i mean the confidence that others will do the right thing despite a clear balance of incentives to the contrary emerges if it does in the context of a social network economists have recently devoted considerable attention to the impact of social structure and networks on the economy for example see the economists chapters in rauch and casella 2001 and the illuminating review essay of this volume by zuckerman 2003 as well as dutta and jackson 2003 and calvoarmengol 2004 however i focus here on sociologists contributions sociologists have developed core principles about the interactions of social structure information ability to punish or reward and trust that frequently recur in their analyses of political economic and other institutions i begin by reviewing some of these principles building on these i then discuss how social structures and social networks can affect economic outcomes like hiring price productivity and innovation

the contribution of environmental and social standards towards ensuring legitimacy in supply chain governance increasingly companies implement social and environmental standards as instruments towards corporate social responsibility csr in supply chains this is based on the assumption that such standards increase legitimacy among stakeholders yet a wide variety of standards with different requirement levels exist and companies might tend to introduce the ones with low exigencies using them as a legitimacy front this strategy jeopardizes the reputation of social and environmental standards among stakeholders and their long term trust in these instruments of csr meaning that all expenses for their implementation are of no avail for the companies therefore this paper highlights which criteria are important for the selection implementation and improvement in order to achieve a company s aim but also to strengthen the legitimacy of social and environmental standards this research is based on conceptual thought and some existing empirical research comparing four different social and environmental standards revealing weaknesses and strengths it exposes the basic conditions for the success of such standards among stakeholders and identifies the need for more empirical data

the corporate social performance financial performance link strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management rather than traditional arenas of strategic management using a greatly improved source of data on corporate social performance this paper reports the results of a rigorous study of the empirical linkages between financial and social performance corporate social performance csp is found to be positively associated with prior financial performance supporting the theory that slack resource availability and csp are positively related csp is also found to be positively associated with future financial performance supporting the theory that good management and csp are positively related 1997 by john wiley sons ltd