international business research past present and future the editors of the journal of international business studies jibs always try to publish the best international business research unfortunately there will probably never be a simple response to the question what constitutes excellent international business research we might make some progress however if we first attempt to define international business research and then identify several noteworthy examples

debt regimes and the effectiveness of monetary policy abstract this paper develops a medium scale non linear model of the us economy our proposed model a threshold vector autoregression with stochastic volatility assumes that changes in government debt to gdp ratios drive the transition between regimes capturing low and high debt regimes the introduction of hierarchical priors enables us to flexibly shrink the empirical model towards the moments implied by a dynamic stochastic general equilibrium model in the empirical application we analyze regime specific monetary policy shocks our findings indicate that the effect of monetary policy is less pronounced in high debt regimes pointing towards differences in the underlying monetary policy transmission mechanisms forecast error variance decompositions enable us to shed further light on the relative importance of monetary policy shocks within different debt regimes in terms of explaining the variance of forecast errors

calculating and using second order accurate solutions of discrete time dynamic equilibrium models we describe an algorithm for calculating second order approximations to the solutions to nonlinear stochastic rational expectations models the paper also explains methods for using such an approximate solution to generate forecasts simulated time paths for the model and evaluations of expected welfare differences across different versions of a model the paper gives conditions for local validity of the approximation that allow for disturbance distributions with unbounded support and allow for non stationarity of the solution process

the effects of energy prices on agricultural groundwater extraction from the high plains aquifer we examine the effects of energy prices on groundwater extraction using an econometric model of a farmer s irrigation water pumping decision that accounts for both the intensive and extensive margins our results show that energy prices have an effect on both types of margins increasing energy prices would affect crop selection decisions crop acreage allocation decisions and farmers demand for water our estimated total marginal effect which sums the effects on the intensive and extensive margins suggests that a 1 per million btu increase in the energy price would decrease water extraction by an individual farmer by 5 89 acre feet per year a decrease of 3 6 percent of the average annual extraction rate our estimated elasticity of water extraction with respect to energy price is 0 26

cognitive tendencies in international business research implications of a narrow vision some scholars have suggested that international business ib research suffers from a narrow vision this paper tests this thesis by extending principles of the cognitive sciences to study the ontological and epistemological features of ib research from 1970 through 1997 operationally ib scholars schematic representation of their logic of interpretation as indicated by 159 figures including 60 models conceptualization and frameworks culled from 27 years of jibs publication profiling these data by absolute and relative indicators of time shows that analog reasoning dominates present logics of interpretation in ib research the longitudinal profile and time series analysis of the structural features of schematic representations in jibs spotlights significantly decreasing comprehensiveness connectedness and complexity i close by nothing the intellectual merit of scholars call for dialectic inquiry and the task this imposes on the community of ib researchers particularly so within the academy of international business

a case for comparative entrepreneurship assessing the relevance of culture as international entrepreneurship gains momentum as a significant and relevant field of research scholars need to address methodological issues that can facilitate the triangulation of research results in this paper we examine the relationship between culture and four personality characteristics commonly associated with entrepreneurial motivation by demonstrating systematic variation in entrepreneurial characteristics across cultures we raise important questions about the boundaries of international entrepreneurship research and the challenges of transcending them

cultural values and international differences in business ethics we analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences we look into the firm s human rights policy its governance of bribery and corruption and the comprehensiveness implementation and communication of its codes of ethics we use a dataset on ethical policies of almost 2 700 firms in 24 countries we find that there are significant differences among ethical policies of firms headquartered in different countries when we associate these ethical policies with hofstede s cultural indicators we find that individualism and uncertainty avoidance are positively associated with a firm s ethical policies whereas masculinity and power distance are negatively related to these policies

building international business theory a grounded theory approach the field of international business ib is in need of more theory development as such the main focus of our manuscript was to provide guidance on how to build ib specific theory using grounded theory gt moreover we contribute to future theory development by identifying areas within ib where gt can be applied and the type of research issues that can be addressed using this methodology finally we make a noteworthy contribution by discussing some of gt s caveats and limitations particularly those relevant to ib this effort is intended to spur further interest in the development of ib theory

uncertainty across volatility regimes we propose a nonrecursive identification scheme for uncertainty shocks that exploits breaks in the volatility of macroeconomic variables and is novel in the literature on uncertainty this approach allows us to simultaneously address two major questions in the empirical literature is uncertainty a cause or effect of decline in economic activity does the relationship between uncertainty and economic activity change across macroeconomic regimes results based on a small scale vector autoregression with us monthly data suggest that i uncertainty is an exogenous source of decline of economic activity and ii the effects of uncertainty shocks amplify in periods of economic and financial turmoil

price elasticity of groundwater demand attenuation and amplification bias due to incomplete information measurement errors in both human and natural components of agricultural and environmental systems can be as much a source of estimation bias as omitted variables selfselection simultaneity and reverse causality nonetheless partly because of difficulties in obtaining data there is less literature on measurement error problems than on other endogeneity problems this article examines estimation bias in the price elasticity of groundwater consumption for irrigated agriculture on the intensive margin the price at issue is for the energy used in pumping and pressurizing water for delivery lacking the precise unit irrigation cost previous studies imputed irrigation costs we first consider groundwater irrigation costs and identify factors that can cause measurement errors in the process of imputation under incomplete information about the determinants of irrigation costs we follow this by systematically analyzing the potential bias caused by measurement errors using econometric theory along with monte carlo simulations where appropriate we then quantify actual measurement errors making use of a unique dataset in which energy and groundwater consumption data are matched for individual observations finally we compare regression results using exact irrigation costs as opposed to imputed ones we find evidence of substantial measurement errors resulting in attenuation and amplification bias in the price elasticity of irrigation water consumption on the intensive margin our results indicate that measurement errors in irrigation costs can lead to misleading policy implications related to water and energy pricing as a tool to conserve water we also show that estimating the energy price elasticity of groundwater use is not as straightforward as previously thought

national business ideology and employees prosocial values employees prosocial values have been shown to foster helping cooperating and volunteering behaviors which in turn increase firm performance however despite the importance of prosocial values there is a general neglect of this area in the international arena as more trade occurs globally interest in cross cultural prosocial values is growing we therefore build on socialization theory and introduce national business ideology as a country level determinant of employees prosocial values we thus argue that transformational leadership and professional altruism are key elements of a national business ideology s stimulation of employees prosocial values while corporate corruption is considered to be an impediment based on 19 026 individuals from 17 countries our cross level analyses point to the national business ideology explaining national level variances above and beyond cultural aspects results support our hypothesis that national business ideology including transformational leadership and professional altruism is positively related to employees prosocial values the hypothesis on corporate corruption however was not supported instead results indicate that employees apply rationalization strategies to justify corruption with prosocial values being important for organizational performance as well as social welfare in general we thus draw attention to socialization processes in national corporate work contexts

one more time international business in a global economy this paper seeks to redirect the debate on the past present and future of international business ib it sets out to dispel prevailing myths pertaining to the field s disciplinary roots its domain and underlying bases of theory and knowledge ib is positioned as an integrative field whose competitive advantage and added value lie in the synergetic combination of global and local knowledge that is unavailable to and not imitable by its major competitors in particular economics and strategy

inflation persistence the nairu and the great recession the rate of inflation fell far less over the period 2007 2013 than in the period 1979 1985 despite similar large increases in the unemployment rate this paper asks why possible explanations include a change in the persistence of inflation changes in nairu and other shocks a change in the persistence of inflation with inflation more anchored in the period 2007 2013 than in the period 1979 1985 is found to be important the level and change in the nairu cannot be precisely estimated but the data suggest an increase of nearly 1 percentage point since 2007

institutional contributions to the leading finance journals 1975 through 1986 a note in a recent issue of this journal heck cooley and hubbard 2 provided several rankings of finance departments the various rankings were based on publications in the journal of finance since 1946 the year in which the journal began publication separate rankings were generated for the leading institutions on the basis of source of doctorate and current employment the employer rankings were provided for the past forty years 1946 through 1985 and for several ten year subperiods 1946 through 1955 1956 through 1965 1966 through 1975 and 1976 through 1985 the work by heck cooley and hubbard builds on earlier contributions by klemkosky and tuttle 3 4 schweser 6 ederington 1 and moore and taylor 5 in their two papers klemkosky and tuttle measured the contributions to two groups of journals for the period 1966 through 1975 they included the volume of scholarship published in the three leading finance journals journal of finance journal of financial and quantitative analysis and journal of financial economics they also included the contributions to eight leading business and economics journals that publish finance and finance related articles journal of business journal of money credit and banking american economic review review of economics and statistics econometrica quarterly journal of economics journal of political economy and journal of monetary economics in their first paper klemkosky and tuttle 3 measured research performance according to the institutional source of publications in their follow up paper 4 they ranked programs on the basis of the publication output of doctoral students in a related paper schweser 6 analyzed the doctoral origins of contributions to the journal of finance for 1964 through 1975 ederington 1 prepared rankings of the top twenty departments based on total pages published in the journal of finance and journal of financial and quantitative analysis and citations in the social science citation index for works in these journals for the period 1967 through 1972 moore and taylor 5 tabulated the number of articles and pages published during 1972 through 1978 in fifteen leading journals in five academic areas of business including finance marketing management science behavioral management and general business for each area three journals were included and in finance the journals were the journal of finance journal of financial and quantitative analysis and financial management publication performance rankings were provided for all fields combined and for each discipline individually

leader member exchange lmx paternalism and delegation in the turkish business culture an empirical investigation although businesses increasingly operate across cultures there is a paucity of research that examines the influence of national culture on leadership practices this study uses a structural equation modeling approach to investigate relationships among leader member exchange lmx delegation paternalism and job satisfaction in turkish business organizations results from a survey study of n 185 full time employees from turkish companies support the relationship of lmx to delegation and job satisfaction however the effect of lmx on job satisfaction is mediated by paternalism an emic cultural dimension results suggest that delegation might not be an effective management tool in the middle eastern context

nafta and franchising a comparison of franchisor perceptions of characteristics associated with franchisee success and failure in canada mexico and the united states abstract business format franchising which includes the product or service the brand name or trademark and the operating system developed by a franchisor has experienced significant growth over the past few decades international franchising also is growing at a rapid pace in part because of market opportunities that include new trade agreements the debate over north american free trade agreement nafta increased the focus on north american franchising in spite of this attention there are few if any comparative studies of franchising in canada mexico and the u s at the same time that international franchising growth is extolled there is an argument over the extent to which franchising increases business success a number of studies support the success thesis however recently critics claim that franchising does not significantly increase survival rates of franchisee owned units the objectives of this study are first to extend the study of franchisee success and failure by analyzing franchise executives perceptions of the importance of a number of characteristics associated with franchisee success and failure and second to examine differences among the executives perceptions of these characteristics based on the location of the franchisor canada mexico or the united states we also analyze the effects of franchise strategy type of franchise business and size of the franchise on executive perceptions of the characteristics associated with franchisee success and failure franchisor executives rated the relative importance of 39 statements taken from previous research that are associated with perceptions of success results from a factor analysis indicate that 30 of the variables load on 5 significant factors examination of the content of the factors indicates that the first factor system quality and the second factor brand name consist of variables that directly relate to the core of business format franchising the quality of the operating system and the brand name of the franchise the third factor local environment consists of statements that represent general characteristics of the local franchise environment the fourth factor communication consists of variables that link the franchisee with the franchisor and other franchisees the fifth factor franchise activities consists of variables that represent idiosyncratic characteristics or activities of a franchisee franchise executives also rated the relative importance of 16 statements associated with franchisee failure of these 6 statements associated with franchisor activities are combined to form a scale of franchisor failure and 10 statements associated with franchisee activities are combined to form a scale of franchisee failure the findings indicate that there are significant differences in most of the scales of success and failure among franchisor executives perceptions based on country location in addition there is also a significant effect of franchise strategy on perceptions there are no significant differences by type of franchise business or size of the franchisor this research contributes to two important areas of research in franchising the study of perceptions of the characteristics associated with franchisee success and failure and international franchising research the study also has practical applications knowledge about country differences in perceived characteristics of success and failure will help franchisors to identify aspects of the business system that require increased monitoring and investment awareness of country differences will also influence the selection of relevant training and development finally knowledge of differences in perceptions may assist franchisors in adapting systems and policies that are likely to increase the success of their international sites

demand specification for municipal water management evaluation of the stone geary form to specify demand in most water allocation problems researchers face a tradeoff between flexibility and parsimony flexible forms are less constraining on elasticity estimates but require large parameter sets that tend to cause poor out of sample forecasts and computational difficulties using a five year panel of texas municipalities the parsimonious stone geary form yields estimated demand functions that are comparable to flexible form results the stone geary specification also provides an estimate of the portion of water use that may not be responsive to price and is useful in analysing price structures and designing conservation policies

national culture and corporate investment we explore the relation between individualism and horizons and types of corporate investment based on individualism s implications for risk taking we find that firms in individualistic countries invest more in long term risky than in short term safe assets moreover the effect of individualism on long term investment hinges on rd and 2 firms in individualistic countries invest more in r d because they have higher investment efficiency or pick less risky r d projects we further find that individualistic firms tend to employ excess cash to increase r d rather than increase dividends and r d decisions are less reliant on internal financing but more responsive to growth opportunities in individualistic countries

a note on ranking the international business journals 2000 examined the relative quality of 30 international business ib journals the article s objectives were to present an objective analysis of journal quality for tenure and promotion decisions to guide researchers considering submission options and to provide the academic community with an enhanced understanding of ib publication outlets using citation analyses and a survey questionnaire journal rankings were developed as designed the study was carefully executed and provides a comprehensive list of journals that publish ib research within the ib research acad

a discrete continuous choice approach to residential water demand under block rate pricing reply waldman is quite correct in noting that the microeconomic theory of block rate pricing in hewitt and hanemann hh 1995 is given for the general case of a k block rate structure whereas the econometric theory is largely confined to the case of exactly two blocks the extension in waldman to the more general case of k blocks is correct although the extension itself could be even more general if it addressed the nonnegativity of demand as is demonstrated below that no apparent attention was paid to the nonnegativity of demand in hh may be attributed to the fact that the need to do so was negated by a fortuitous assumption in the earlier work although that assumption that the errors are multiplicative and lognormally distributed was only maintained and not tested in hh i now estimate two models with the more common assumptions of linear demand and additive and normally distributed errors both with and without a modification for

leadership and organizational justice similarities and differences across cultures international management scholars and practitioners agree that managers cannot simply assume that leadership behaviors effective in one culture can be readily transferred to other cultures this study examines the relationship of transformational leadership and leader member exchange to organizational justice and job satisfaction in five separate cultures results indicate that while there is consistent support for some of the proposed linkages there are also some interesting differences across cultures implications for theory and future research on international business are discussed

evidence on the validity of cross sectional and longitudinal labor market data this article investigates error properties of survey reports of labor market variables we use the panel study of income dynamics psid validation study a two wave panel survey of workers employed by a large firm that shared its detailed payroll records individuals reports of annual earnings are fairly accurate errors are negatively related to true earnings reducing bias due to measurement error when earnings are used as an independent variable biases are moderately larger for changes in earnings earnings per hour are less reliably reported than annual earnings biases in estimating earnings functions are relatively small but those in labor supply functions may be important

the role of family ownership in international entrepreneurship exploring nonlinear effects empirical research on international entrepreneurship is growing but results on the role of family ownership in this phenomenon are inconsistent we believe these inconsistencies owe to prior researchers having not yet investigated nonlinear relationships drawing on opposing perspectives of stewardship and stagnation we explore potential benefits and drawbacks of family ownership for international entrepreneurship and explore nonlinear relationships among these two variables using a sample of 1 035 us family businesses and applying ordinal regression analysis we find an inverted u shaped relationship between family ownership and international entrepreneurship international entrepreneurship is maximized when family ownership stands at moderate levels we discuss the implications of our findings for theory and practice and indicate avenues for future research

an architectural framework for global talent management a unique characteristic of the multinational corporation is that it comprises a geographically dispersed and culturally differentiated workforce that embodies both firm specific and location specific human capital this article takes an architectural approach to describe how different types of human capital develop from the individual level to the unit level and then to the firm level in order to build a talent portfolio for the multinational corporation depending on the company s strategy multidomestic meganational transnational different configurations of the talent portfolio tend to be emphasized and integrated to achieve competitive advantage implications for theory and practice are discussed and a research agenda is introduced

the demand for irrigation water in the high plains of texas 1957 80 a new method of calculating groundwater pumpage is used to estimate water demand these results are used via the gisser sanchez model to show that pumpage regulation is unlikely to be beneficial in the texas high plains a sensitivity analysis is performed on present value profits under optimal control and competitive schemes using different water demand slope and intercept values the results indicate that the gisser sanchez rule is useful in determining the divergence in pumpage time paths and percentage difference in profits under the two schemes but it is not insightful in determining the nominal difference in profits

organizational entrainment and international new ventures from emerging markets organizational entrainment captures the temporal fit in the activity cycles between exchange partners we argue that organizational entrainment between international new ventures invs and their most important international customers positively moderates the relationship between the degree scope and speed of internationalization and performance of invs we test our hypotheses on invs from china india and south africa the results support the contingent role of entrainment for degree and scope of internationalization but not for speed findings suggest that when invs attain temporal fit with their most important international customers they can implement their strategic goals in international markets more effectively

consequences of cultural practices for entrepreneurial behaviors although national culture is an important regulator of entrepreneurship there is a dearth of studies that 1 explore the effects of national cultural practices on entrepreneurial behaviors by individuals 2 use appropriate multilevel research designs 3 consider the effects of culture on different entrepreneurial behaviors such as entry and post entry growth aspirations we combined global entrepreneurship monitor gem and global leadership and organizational behavior effectiveness globe data from 42 countries for 2005 2008 to address these gaps using a multilevel design we found societal institutional collectivism practices negatively associated with entrepreneurial entry but positively associated with entrepreneurial growth aspirations uncertainty avoidance practices were negatively associated with entry but not with growth aspirations and performance orientation practices were positively associated with entry our analysis highlights the differential effects of cultural practices on entrepreneurial entry and growth aspirations and demonstrates the value of multilevel techniques in analyzing the effect of culture on entrepreneurship

new firms societal contribution versus survival potential abstract new business firms are now considered a major source of new jobs economic growth technical innovation and economic flexibility they may provide a major strategic advantage for the united states in world competition a more complete precise understanding of the dynamics of new firm development their societal contributions and factors affecting their survival has considerable policy and managerial significance a study of new firm contributions and survival was completed to determine whether the same factors would account for both they do not the research began with a substantial body of descriptive information on 551 new firms initiated in minnesota between 1978 and 1984 the initial data were collected in the summer of 1984 a one year follow up was completed in 1985 to determine new firm survival the sample was representative of all major industry sectors and all regions of the state about 60 were located in the minneapolis st paul urban area attempts to predict current 1984 contributions indicated that age was not a significant factor older new firms did not contribute more than younger new firms the developmental pattern primarily the average annual growth rate was highly related to sales or jobs provided in 1984 next most significant was the industry of the new firm manufacturing distributive services and business producer service new firms provided more significant contributions the one year follow up was able to determine the survival status of 548 of the 551 firms slightly less than 10 48 had not survived major factors related to survival appeared to be age high death rates at 2 3 years and attention to financial matters

the international transmission of volatility shocks an empirical analysis this paper proposes an empirical model which can be used to estimate the international transmission of volatility shocks using this model we estimate that a one standard deviation increase in the volatility of the shock to us real gdp leads to a decline in uk gdp of 1 relative to trend and a 0 7 increase in uk cpi relative to trend at the two year horizon using a nonlinear open economy dsge model we find that these empirical estimates are consistent with the response to a perturbation to the volatility of foreign supply type shocks while an increase in the volatility of demand shocks has a negligible impact

the globalization of our mental maps evaluating the geographic scope of jibs coverage this article analyzes patterns of country coverage in the journal of international business studies during the twenty five years of its existence the analysis shows a substantial expansion in the journal s geographic reach over the years but also a somewhat narrow mental map with many countries and areas receiving only minimal coverage explanations for country preferences among researchers are explored and implications for the future are discussed

the international effects of global financial uncertainty shocks abstract in this paper we study the impact of sudden rises in global financial uncertainty on small open economies to this end we extract a global factor from the realised volatilities of about 1000 risky asset returns from around the world we then analyse how shocks to this factor affect economic activity in 44 advanced and emerging small open economies by estimating local projections in a panel regression framework we find that shocks increasing global financial uncertainty have adverse consequences on output trade and unemployment while their impact on nominal variables is more heterogeneous across countries furthermore the effects are more severe in countries with a higher degree of trade or financial openness higher levels of vulnerabilities weaker institutions or during economic downturns

the importance of nongovernmental organizations ngos in global governance and value creation an international business research agenda the emergence of organized civil society and of nongovernmental organizations ngos as organizational manifestations of broader social movements has dramatically altered the global political economic landscape the increasing global reach of ngos challenges established international business ib research and highlights opportunities for broadening and adapting extant paradigms in the field in this article we introduce the concept of ngos and contrast them with their private sector firm and public sector government counterparts within the context of ib we discuss factors giving rise to ngos as important organizational entities that participate in global value creation and governance and identify limits to their efficacy and viability we identify important questions raised by incorporating ngos into our conceptualization of global context and we challenge three basic tenets of ib theory the definition and dynamics of an institutional field the relevance centrality of a firm government i e two sector bargaining model and the pre eminence of the firm as the global organization of interest within the field we conclude by offering suggested research directions that should serve as catalysts for this new and potentially rich area of future ib research

adaptation to an irrigation water restriction imposed through local governance abstract we estimate how farmers adapted to a water restriction imposed through local governance the restriction imposed a uniform quota on water use with a 5 year allocation and allowed trading of the quota within the restricted area our analysis exploits unique micro level data on irrigated water use irrigated acreage and crops we use a difference in differences econometric strategy that also includes farmer time fixed effects to estimate the response to the restriction where we exploit water rights between 2 and 5 miles of the policy boundary as a control group results indicate that farmers reduced water use by 26 due to the policy with most of the response due to reductions in water use intensity on the same crops rather than through reductions in irrigated acreage or changes in crops the results imply that the short run welfare impact of the policy was smaller than a policy that reduces irrigated acreage

the performance of cross border units in china a test of natural selection strategic choice and contingency theories this study tests the explanatory power of three theoretical frameworks for the performance of cross border affiliates by examining the experience of 615 hong kong firms managing operations in mainland china the frameworks tested are the natural selection approach focused on the influence of the environment the strategic choice approach focused on managerial action and the contingency approach which emphasises the fit between environmental contingencies and internal organisation the results show that natural selection and strategic choice have a role to play even when controlling for each other they also support a simple approach to contingency but not a more complex version involving interactions although the business and institutional environments do have a significant influence on the performance of cross border affiliates in a transition economy performance can be improved through strategic managerial action in particular leveraging local resources by developing trust between parent and affiliate and maintaining close control and integration with the parent are associated with enhanced performance

research on international business problems and prospects this paper reflects on the general problems and specific opportunities faced by contemporary research on multinational enterprise the general problems include controlling properly for the firm s opportunities when testing the effectiveness of its policy choices avoiding biases that result from studying surviving business units and ignoring those that disappeared and mobilizing longitudinal data and exploiting the many census based data sets now coming available

relationship between individualist collectivist culture and entrepreneurial activity evidence from global entrepreneurship monitor data this paper examines how one dimension of national culture an individualist collectivist orientation is related to total entrepreneurial activity depending on the level of economic development measured by gdp per capita researchers have traditionally associated individualism with high rates of firm creation arguing that an orientation towards achievement and the pursuit of personal objectives dominant aspects in individualist cultures are determinants of entrepreneurial activity the current analysis shows that a country s culture correlates to entrepreneurship but cannot uphold the idea that higher levels of individualism mean higher rates of entrepreneurship using data from the global entrepreneurship monitor on 52 countries the results show that a country s entrepreneurship rate is negatively related to individualism when development is medium or low and positively related to individualism when the level of development is high thus individualism is not related to entrepreneurship in the same way in countries with differing levels of development

an assessment of the measurement of performance in international business research a sizeable body of international business ib research is devoted to building knowledge about the determinants of organizational performance a key precursor to accurately diagnosing why some organizations succeed in the international marketplace while others struggle is operationalizing performance appropriately yet to date no systematic investigation has considered how well ib research measures performance we examine the measurement of performance in 96 articles published in the academy of management journal administrative science quarterly journal of marketing journal of marketing research journal of international business studies management science organization science a nd thestrategic management journal between 1995 and 2005 the findings reveal that most studies do not measure performance in a manner that captures the multifaceted nature of the construct we describe the implications of these results and offer suggestions for improving future practice journal of international business studies 2008 39 1064 1080

common and country specific economic uncertainty abstract we use a factor model with stochastic volatility to decompose the time varying variance of macroeconomic and financial variables into contributions from country specific uncertainty and uncertainty common to all countries we find that the common component plays an important role in driving the time varying volatility of nominal and financial variables the cross country co movement in volatility of real and financial variables has increased over time with the common component becoming more important over the last decade simulations from a two country dsge model featuring epstein zin preferences suggest that increased globalisation and trade openness may be the driving force behind the increased cross country correlation in volatility

innovation in international business research a call for multiple paradigms scholars disagree on ib s domain and future prescription yet agree that research will engage topics dealing with dynamic change and hard to explain phenomena this paper builds on these views endorsing a multiparadigmatic perspective that complements ib s scientific and humanist paradigms with that of chaos theory the latter we argue is instrumental in studying the non normal patterns of nonlinear far from equilibrium systems we illustrate our ideas in the context of ngos

investment shocks and business cycles abstract the origins of business cycles are still controversial among macroeconomists this paper contributes to this debate by studying the driving forces of fluctuations in an estimated new neoclassical synthesis model of the u s economy in this model most of the variability of output and hours at business cycle frequencies is due to shocks to the marginal efficiency of investment imperfect competition and to a lesser extent technological frictions are the key to their transmission although labor supply shocks explain a large fraction of the fluctuations in hours at very low frequencies they are irrelevant over the business cycle this finding is important because the microfoundations of these disturbances are widely regarded as unappealing

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

the study of international business a plea for a more interdisciplinary approach scholastic efforts to study and teach international business is entirely dependent on our capability to marshal and organise the necessary human and other assets so as to supply a range of end products which are acceptable to the academic community of which we are part our paymasters and the main purchasers of our products viz the business community of course the determinants of success of the practice and study of ib are interrelated and in our particular pursuit for excellence there is no unique or sure fire recipe for success but i observe that in an ever increasingly complex world of international business which is dominated by rapid and far reaching changes in technology and by environmental turbulence this is no less true of successful practitioners rarely in seeking to identify the reasons for business achievement is one able to find a single common denominator sometimes excellence is primarily based on innovatory ingenuity sometimes on the access to or control of key inputs or markets sometimes on aggressive or novel methods of advertising and marketing sometimes on super efficient capital budgeting sometimes on dynamic and imaginative entrepreneurship sometimes on the diversity of operational experiences and capabilities and sometimes on an unusual aptitude to manage human relationships but in most cases success is founded on some amalgam of these and it is the way in which these discrete though increasingly interdependent advantages are ombined with each other and with complementary assets in different countries and cultures which contemporary research suggests is the key competitive advantages of international firms call it what you will e g

is the international business research agenda running out of steam this research note challenges international business researchers to think of their future work in terms of the past achievements of their discipline it identifies three key research areas corresponding to attempts to tackle crucial empirical questions the explanation of foreign direct investment the multinational firm and the globalization of business it ends by considering the future research agenda

common drifting volatility in large bayesian vars the general pattern of estimated volatilities of macroeconomic and financial variables is often broadly similar we propose two models in which conditional volatilities feature comovement and study them using u s macroeconomic data the first model specifies the conditional volatilities as driven by a single common unobserved factor plus an idiosyncratic component we label this model bvar with general factor stochastic volatility bvar gfsv and we show that the loss in terms of marginal likelihood from assuming a common factor for volatility is moderate the second model which we label bvar with common stochastic volatility bvar csv is a special case of the bvar gfsv in which the idiosyncratic component is eliminated and the loadings to the factor are set to 1 for all the conditional volatilities such restrictions permit a convenient kronecker structure for the posterior variance of the var coefficients which in turn permits estimating the model even with large datasets while perhaps misspecifi

the changing transmission of uncertainty shocks in the u s this article investigates if the impact of uncertainty shocks on the u s economy has changed over time to this end we develop an extended factor augmented vector autoregression var model that simultaneously allows the estimation of a measure of uncertainty and its time varying impact on a range of variables we find that the impact of uncertainty shocks on real activity and financial variables has declined systematically over time in contrast the response of inflation and the short term interest rate to this shock has remained fairly stable simulations from a nonlinear dynamic stochastic general equilibrium dsge model suggest that these empirical results are consistent with an increase in the monetary authorities antiinflation stance and a flattening of the phillips curve supplementary materials for this article are available online

stability vs flexibility the effect of regulatory institutions on opportunity type how entrepreneurial opportunities are formed and exploited depends upon the institutional environment in which they are embedded the varying amounts of risk and uncertainty across and within heterogeneous institutional environments have important implications for the types of opportunity developed while the international business and entrepreneurship literatures consider the effect of environmental risk and uncertainty on firms risk and uncertainty are often treated as interchangeable or synonymous and rarely are both considered to be present together to address this we develop a new theoretical model based on institutional economics describing how institutional arrangements promoting stability thus supporting an entrepreneur s ability to assess risk will lead to more imitative opportunities while institutions promoting flexibility thus supporting an entrepreneur s ability to respond to uncertainty by iterating will foster more innovative opportunities we test this framework using cross national data across 40 countries from the gem survey finding that institutional arrangements that promote stability do lead to more imitation while institutions that promote flexibility foster more innovation by treating risk and uncertainty as distinct constructs our study makes theoretical contributions to research on institutional environments and opportunity types with implications for future research on subsidiary initiatives the evolution of mnes and born global firms

water demand under alternative price structures we estimate the price elasticity of water demand with household level data structurally modeling the piecewise linear budget constraints imposed by increasing block pricing we develop a mathematical expression for the unconditional price elasticity of demand under increasing block prices and compare conditional and unconditional elasticities analytically and empirically we test the hypothesis that price elasticity may depend on price structure beyond technical differences in elasticity concepts due to the possibility of endogenous utility price structure choice observed differences in elasticity across price structures may be due either to a behavioral response to price structure or to underlying heterogeneity among water utility service areas

the changing landscape of jibs authorship in this study we examine the landscape of jibs authorship over time to assess 1 the accessibility of jibs to new contributors and 2 the diversity of authors contributing to jibs our analysis of author data from 1972 to 2014 shows that jibs is becoming more accessible as indicated by the high and sustained proportion of first time contributors to the journal this is also evident from the recent decline in the share of authors with multiple past jibs publications with regard to diversity our findings show that jibs has a much wider geographic scope of authors on its landscape in comparison to previous decades this may be attributed partly to increasing travel and communication in scholarly communities and partly to the increased migration of scholars in the recent decades our analysis of migration patterns of jibs authors suggests that about 51 of prominent international business scholars are employed outside their country of birth of the 49 employed in their country of birth 12 are return migrants in our sample china south korea and canada have the highest number of returnees the usa the uk germany the netherlands and china have the highest number of natives whose country of birth country of phd granting institution and country of university affiliation are identical

an econometric estimation of industrial water demand in france this study investigates the structure of industrial water demand byestimating the derived demand for water on a sample of industrialestablishments located in the south west of france productiontechnologies are represented by short term variable cost functions andapproximated by a translog form industrial water use is modeled ashaving three components the quantity of water bought to a waterutility the quantity of autonomous water and the quantity of watertreated prior to use we include in this framework water effluents which are considered as a by product of the production process emittedby firms each of the three water components is treated as a separateinput and all are estimated as a system of simultaneous equations themodel is estimated on a sample of 51 industrial plants in the girondedistrict observed from 1994 to 1996 using seemingly unrelated regression sur and feasible generalized least squares fgls results ofestimations show that industrial firms are sensitive to water priceinputs network water elasticity is estimated at 0 29 it variesfrom 0 10 to 0 79 according to the type of industryconsidered autonomous water price elasticity is not significant elasticity for treated water is evaluated at 1 42 at themean sample and varies from 0 90 to 2 21 according to theindustry considered

international business education programs in american schools how they are ranked by members of the academy of international business the academy of international business members were polled to elicit their opinions of the relative quality of international business programs in american schools they were also asked for their criteria

an analysis of significant contributions to the international business literature the growing interest in international business has been accompanied by a dramatic rise in the volume of international business research this note examines the international business publication records for both authors and academic institutions for the ten year period 1980 1989 nine separate publications were reviewed containing some 659 international business articles weighted and unweighted rankings are reported

national context and individual employees trust of the out group the role of societal trust out group trust is a crucial driver of international business performance however employees from different countries vary in their levels of out group trust the aim of this study is therefore to capture national forces driving out group trust based on kramer s theorizing on the multiple bases of trust we argue that at the societal level dispositional categorization based and rule based trust influence employees out group trust in particular we argue for dispositional and rule based societal trust to increase and for categorization based societal trust to decrease employees out group trust through different types of socialization using data on 25 622 employees from 42 countries we find partial support for the coexistence of these bases of societal trust disentangling trust forming and trust impeding models we find support for dispositional and rule based societal trust as drivers of employees out group trust and for categorization based societal trust as impeding employees out group trust in a combined model however rule based trust is not significantly related to employees out group trust considering the coexistence of trust and distrust employees out group trust develops through socialization effects conveying general trust in others i e high dispositional trust and the equality of social groups i e low categorization based trust

cuba in transition tourism industry perceptions of entrepreneurial change abstract the cuban government is working to create a climate conducive to a strong and sustainable private sector as state employment declines many residents are exploring the potential of tourism cuban entrepreneurs are interested in expanding beyond packaged mass tourism to develop more creative tourism products however the success of cuban entrepreneurs is dependent on a number of conditions external to the entrepreneur known as the entrepreneurial climate ec building on previous entrepreneurship research this study utilizes interviews of a small group of tourism stakeholders in cuba to address the research question what are the perceptions of tourism stakeholders of both barriers to and factors encouraging private enterprise it concludes with recommendations for planning and policy based on these perceptions that may cultivate entrepreneurial tourism development in cuba including improved internet access development of both wholesaling and financing systems business education and legalization of additional tourism professions recommendations from the informants also align with recent initiatives in other centrally governed nations e g china singapore and bolivia that have introduced private enterprise to their economies recently these initiatives could serve as models for cuba moving forward

publishing international business research a survey of leading journals this paper argues that given the proliferation of journals within which to publish international business research authors need to identify objectives for their research and develop a publishing strategy to ensure the appropriate and timely publication of their work based on archival data and a survey of journal editors this study provides information about seventy nine english language business publications to help authors develop such as strategy

a new approach to identifying the real effects of uncertainty shocks this article introduces the use of the sign restrictions methodology to identify uncertainty shocks we apply our methodology to a class of vector autoregression models with stochastic volatility t

mapping world cultures cluster formation sources and implications this paper extends and builds on ronen and shenkar s synthesized cultural clustering of countries based on similarity and dissimilarity in work related attitudes the new map uses an updated dataset and expands coverage to world areas that were non accessible at the time cluster boundaries are drawn empirically rather than intuitively and the plot obtained is triple nested indicating three levels of similarity across given country pairs also delineated are cluster adjacency and cluster cohesiveness which vary from the highly cohesive arab and anglo clusters to the least cohesive confucian and far eastern clusters exploring predictors of cluster formation we draw on the ecocultural perspective and other inputs and examine the combined role of language religion and geography in generating cluster formation we find that these forces play a prominent yet complex role for instance the religion and language brought by the spanish fail to create a singular cohesive latin american cluster akin to the anglo cluster the role of economic variables is similarly considered finally comparing the current map with that of 1985 we find strong support for the divergence vs convergence argument implications for international business are delineated

towards a renaissance in international business research big questions grand challenges and the future of ib scholarship in this article we review critiques of international business ib research with a focus on whether ib scholarship tackles big questions we identify three major areas where ib scholars have addressed important global phenomena but find that they have had little influence outside of ib and only limited effects on business or government policy we propose a redirection of ib research towards grand challenges in global business and the use of interdisciplinary research methods multilevel approaches and phenomena driven perspectives to address those questions we argue that ib can play a more constructive and vital role by tackling expansive topics at the business societal interface

the ranking of masters programs in international business several years ago donald ball and wendell mcculloch carried out an opinion survey of members of the academy of international business as to the ranking of international programs in u s business schools jibs spring summer 1984 it included 79 schools in the results

translation in cross language international business research beyond equivalence in this paper we problematise the way translation has been treated in international business ib research we start by conducting an interpretive content analysis of both qualitative and quantitative cross language studies published in four core ib journals over the course of a decade our analysis shows the dominance of a technicist view of translation associated with the equivalence paradigm in contrast we advocate a shift to a more contextualised approach informed by theoretical developments in translation studies more specifically we focus on two theoretical perspectives skopos theory and cultural politics which offer related but distinct approaches to rethinking equivalence we conclude by advocating that the translation process be reframed as a process of intercultural interaction rather than a lexical transfer of meaning this reconceptualisation would we argue open up what is currently a black box in most ib studies the contextualised approach that we offer has the potential not just to enrich the findings of studies but also provide insights that are of multidisciplinary relevance

source or storer ib s performance in a knowledge network the absence of systematic assessment of ib s performance as a reference discipline prolongs questioning of the contribution that ib scholarship makes to other business fields put simply do ib journals export more ideas to allied disciplines than they import from them difficulty in evaluating the merits of let alone the need for solutions offered to boost interdisciplinary relevance slows validation of the ontological principles and epistemic standards of ib research this paper begins to fill this gap it establishes a knowledge network composed of 39 high impact journals that represent the domains of management marketing finance economics operations it accounting human resources organizational behavior and ib we collected citation exchanges among these 39 journals from 2000 through 2007 a log multiplicative model evaluated multiple dimensions of association to determine the sources and storers of knowledge within the network the network from pathfinder analysis was used to determine each journal s contribution to network entropy these analyses indicate that ib journals functioned as storers not sources of ideas within the sampled knowledge network over the studied period the results help interpret opposing proposals to fortify ib studies highlight the tradeoff between exploitation and exploration in knowledge development and dissemination and elaborate jibs s boundary spanning performance within the sampled network

do residential water demand side management policies measure up an analysis of eight california water agencies abstract to assess the potential of price and alternative demand side management dsm policies as an urban water resource management tool an econometric model of residential demand is formulated and estimated this econometric model incorporates alternative dsm policy instruments such as water allocations use restrictions public education and increasing block pricing schedules the analysis relies on cross sectional monthly time series data for eight water agencies in california representing 24 of the state s population 7 1 million people results suggest that both price and alternative dsm policies were effective in reducing demand however the magnitude of the reduction in demand varied among policy instruments

cross cultural competence in international business toward a definition and a model many international business failures have been ascribed to a lack of cross cultural competence cc on the part of business practitioners however the international business literature appears to lack an adequate conceptualization and definition of the term cc focusing instead on the knowledge skills and attributes that appear to be its antecedents in this conceptual study we propose a definition of cc as it applies to international business and develop a model for understanding how cc is nurtured in individuals linking our definition to the concept of cultural intelligence we discuss the components of the model and suggest that there are environmental and contextual impediments to the effective application of the requisite skills knowledge and attributes that have been identified as necessary for cc resulting in a gap between knowing and doing we conclude by discussing the implications of the model for practitioners and by suggesting appropriate directions for further research

changing ib scholarship via rhetoric or bloody knuckles a case study in the boundary conditions for persuasion papers challenging institutionalized fields to change are rare and those not extinguished by neglect are rarer shenkar understands his target audience those in that target community of ib scholars studying cultural distance s cd associations with foreign direct investment fdi might read this paper as relatively radical culture scholars sometimes interpret the discussion of cultural friction cf as competing with even slighting by omission their corpus of work on contact and interaction both readings are false and forced comparison with two later papers reveals retrospective bias at work it further reveals cf as a metaphor not theory it is not a research agenda assigned to the field even if it becomes a personal project for the author rhetorical theory is the basis to compare the reasoning of appeals and emotion the discussion considers whether academic change agents might consider more use of emotion bringing shenkar into focus enriches our appreciation for its impressive craftsmanship as well as its scholarship i discuss implications for impact as a concept currently stuck with looking for citation over substance and offer suggestions for reviewers and editors to lower the barriers for impact

manufacturer governance of foreign distributor relationships do relational norms enhance competitiveness in the export market research on international marketing channels accentuates the importance of relational norms and trust building activities between buyers and sellers indeed cultural and country differences may limit the use and effectiveness of traditional tools such as market incentives and authoritative control that govern the relationship between an exporting manufacturer and its foreign distributor consequently exporting manufacturers need to emphasize relationships with their foreign distributors this research finds evidence that supports both direct and indirect effects between the manufacturer s use of governance via relational norms and its competitiveness in the export market the indirect effect results from the mediating role of trust a finding that makes a key contribution to the understanding of the role of relational governance in cross border relationships

an analysis of twenty five years of research in the journal of international business studies the article analyzes the twenty five years of research published in the journal of international business studies jibs since its inception in 1970 the article reviews the authors their institutional affiliations and the discipline content of the published articles

multicrop production decisions in western irrigated agriculture the role of water price applying a model of the multioutput firm econometric results are reported for irrigated production in four multistate regions of the american west cross sectional microdata from the farm and ranch irrigation survey and limited dependent variable methods are used to estimate crop choice supply land allocation and water demand functions for field crops farm level water demand is decomposed into the sum of crop level water demands and crop level demands are further separated into an extensive margin land allocations and intensive margin short run water use response to water price measured as groundwater pumping cost occurs primarily at the extensive margin

contributing to an international business curriculum an approach from the flank i have an uneasy feeling that in responding to the invitation of jibs editors to recount how i stumbled into the field of international business i am providing very sparse fare for many of jibs readers particularly for those who want to gain hints of what it takes to make a success in the teaching of international business but i could not resist the editors challenge to look back at my years as a teacher of international business from 1959 to 1978 in order to learn perhaps for the first time what the experience may have taught me

membership of editorial boards and rankings of schools with international business orientation using 4 year data 1990 1994 1998 and 2002 we have provided a ranking of schools with international business ib orientation based on the membership of editorial boards of 30 leading international business journals participation on the editorial boards of quality journals is highly selective and should provide a quality indication of the schools both quality unadjusted and adjusted board membership based ranking are calculated in this study several interesting findings are worth noting first us schools play a significant leadership role among the leading ib programs second the findings of this study also show the major contribution of non us schools which confirms the importance of the global nature of the ib discipline third the top ranked schools share a number of characteristics finally the correlation among different ranking criteria can be low particularly for the top ranked schools suggesting that care should be exercised in interpreting school ranking

uncertainty shocks and unemployment dynamics in u s recessions abstract what are the effects of uncertainty shocks on unemployment dynamics we answer this question by estimating non linear smooth transition vars with post wwii u s data the relevance of uncertainty shocks is found to be much larger than that predicted by standard linear vars in terms of i magnitude of the reaction of the unemployment rate to such shocks and ii contribution to the variance of the prediction errors of unemployment at business cycle frequencies the ability of different classes of dsge models to replicate our results is discussed

fragility and the effect of international uncertainty shocks abstract when economic systems are fragile even modest shocks for example a shock to international capital movements can have strong negative effects on key macroeconomic fundamentals this paper proposes a large scale bayesian vector autoregression with factor stochastic volatility to investigate the macroeconomic consequences of international uncertainty shocks in g7 countries and shows that uncertainty increases fragility the factor structure enables us to identify an international uncertainty shock by assuming that it is the joint volatility process that determines the dynamics of the variance covariance matrix of the common factors to allow for first and second moment shocks we moreover assume that the uncertainty factor enters the var equation as an additional regressor our findings suggest that an international uncertainty shock has negative effects across all economies and variables under consideration leading to strong declines in output prices exports interest rates and equity prices the precise degree of fragility varies across countries a simple correlation exercise suggests that structural differences may be partially responsible for the observed differences

time varying impact of uncertainty shocks on the us housing market abstract this paper investigates the impact of uncertainty shocks on the housing market of the united states using the time varying parameter factor augmented vector autoregression tvp favar we use a comprehensive quarterly time series dataset on real economic activity price and financial variables besides housing market variables covering the period 1963 q1 to 2014 q3 in addition to housing prices we also consider variables related to home sales permits and starts in general the results of the cumulative response of housing variables to a one standard deviation positive uncertainty shock at the one four eight and twelve quarter horizon tends to change over time both in terms of sign and magnitude with the uncertainty shock primarily negatively affecting the housing variables in particular prices permits and starts in longer runs i e two and three years ahead horizons