Youth unemployment and terrorism in the MENAP (Middle East,North Africa,Afghanistan, and Pakistan) region

This paper builds on existing research investigating the root causes of terrorism by considering youth unemployment as a measure of economic deprivation. In particular, the study focuses on terrorism in Middle Eastern and North African (MENAP) countries and features terrorism incident count data for the period 1998–2012 using negative binomial regression models. In our exogenous model, we find that while youth unemployment tends to increase domestic terrorism, it does not have any significant effect on transnational terrorism. Given concerns about endogeneity of youth unemployment in these models, we use two kinds of corrections-instrumental variables and lagged variables. We control for endogeneity by using military expenditure, under-five mortality rate and foreign direct investment as instruments. We are not able to reject the null hypothesis that youth unemployment is exogenous. Using lagged variables, we find a similar result as noted in the exogenous specifications with regard to the effect of youth unemployment on domestic and transnational terrorism. We also find evidence that domestic terrorism tends to have a positive relationship with press freedom, religious and linguistic fractionalization, and area of the country. Transnational terrorism has a positive association with the quality of democracy and a negative association with political stability and regulatory quality. The amount of natural resources tends to be negatively associated with domestic terrorism and positively associated with transnational terrorism.     

Innovation for Inclusive Business: Intrapreneurial Bricolage in Multinational Corporations

It is often argued that multinational corporations (MNCs) are in a unique position to innovate business models that can help to alleviate poverty. This empirical study into intra‐organizational aspects of pro‐poor business innovation in two MNCs suggests, however, that certain elements of their management frameworks – such as short‐term profit interests, business unit based incentive structures, and uncertainty avoidance – may turn into obstacles that prevent MNCs from reaching their full potential in this respect. We introduce the concept of intrapreneurial bricolage to show how middle manager innovators may promote pro‐poor business models despite these obstacles. We define intrapreneurial bricolage as entrepreneurial activity within a large organization characterized by creative bundling of scarce resources, and illustrate empirically how it helps innovators to overcome organizational constraints and to mobilize internal and external resources. Our findings imply that intrapreneurial bricolage may be of fundamental importance in MNC innovation for inclusive business. In addition to the field of inclusive business, this study has implications for the study of bricolage in large organizations and social intrapreneurship, as well for managerial practice around innovation for inclusive business.     

The wisdom of demagogues: institutions,corruption and support for authoritarian populists

This article analyses the drivers of support for authoritarian populist parties in Europe. Such parties claim to represent the interests of ordinary people against greedy and out‐of‐touch elites. Simultaneously, they reject conventional constraints on democratic policymaking. In recent years, such parties on the political left and right have been gaining influence in countries across Europe. Using a panel data set from 1980–2016, we use semiparametric Tobit models with country fixed effects to explain support for authoritarian populists. We find that large vote shares of right‐wing – but not left‐wing – authoritarian populists are associated closely to corruption. Other commonly cited explanations such as unemployment, inequality and immigration perform poorly in predicting support for populist political platforms on the political right. While a full theoretical explanation of the link between corruption and right‐wing populism remains beyond the scope of this article, we suggest that the mechanism involves political trust. Corruption weakens trust in political institutions, which populists exploit. Curbing the rise of right‐wing authoritarian populism in Europe will thus require restoring trust in the integrity of politics.     

Subgame-perfect equilibria in stochastic timing games

We develop a notion of subgames and the related notion of subgame-perfect equilibrium – possibly in mixed strategies – for stochastic timing games. To capture all situations that can arise in continuous-time models, it is necessary to consider stopping times as the starting dates of subgames. We generalize Fudenberg and Tirole’s (Rev. Econom. Stud. 52, 383–401, 1985) mixed-strategy extensions to make them applicable to stochastic timing games and thereby provide a sound basis for subgame-perfect equilibria of preemption games. Sufficient conditions for equilibrium existence are presented, and examples illustrate their application as well as the fact that intuitive arguments can break down in the presence of stochastic processes with jumps.     

Searching for the Causal Structure of a Vector Autoregression*

We provide an accessible introduction to graph‐theoretic methods for causal analysis. Building on the work of Swanson and Granger (Journal of the American Statistical Association, Vol. 92, pp. 357–367, 1997), and generalizing to a larger class of models, we show how to apply graph‐theoretic methods to selecting the causal order for a structural vector autoregression (SVAR). We evaluate the PC (causal search) algorithm in a Monte Carlo study. The PC algorithm uses tests of conditional independence to select among the possible causal orders – or at least to reduce the admissible causal orders to a narrow equivalence class. Our findings suggest that graph‐theoretic methods may prove to be a useful tool in the analysis of SVARs.     

Meta‐Analytic Research in Management: Contemporary Approaches,Unresolved Controversies,and Rising Standards

Early meta‐analyses in management research sought primarily to resolve seemingly conflicting findings by estimating a relationship’s population‐level effect size. Since then, management researchers have adopted increasingly sophisticated approaches that permit new theorizing, testing and comparing sophisticated models, and identifying boundary conditions. We summarize three of these approaches – i.e., qualitative meta‐analysis (QMA), meta‐analytic structural equation modeling (MASEM), and meta‐analytic regression analysis (MARA) – along with the special issue papers that adopt each approach. We conclude by raising three unresolved controversies that we believe deserve more attention and by offering our thoughts about how to maximize a meta‐analytic study’s chances for publication and impact.     

Celebrating Organization Theory

In this paper, we respond to recent critiques about the state of organization theory that have characterized it as being anachronistic, overly theoretical, or lacking the right kind of theory. We argue that organization theory is extremely vibrant and highlight several areas where there are flourishing and generative developments – institutional logics, categorization, networks, performance feedback, and strategy‐as‐practice. We also note the growing internationalization of organization theory as exemplified in the shifting demography of the Organization and Management Theory division at the Academy of Management as well as at the European Group on Organization Studies. As engaged organization theory supporters and scholars, we additionally argue for a more balanced appreciation of not only the weaknesses in the field, but also its strengths, and urge a re‐engagement in more productive conversations about the important role of theory and theorizing.     

MANY INSTRUMENTS AND/OR REGRESSORS: A FRIENDLY GUIDE

This paper surveys the state of the art in the econometrics of regression models with many instruments or many regressors based on alternative – namely, dimension – asymptotics. We list critical results of dimension asymptotics that lead to better approximations of properties of familiar and alternative estimators and tests when the instruments and/or regressors are numerous. Then, we consider the problem of estimation and inference in the basic linear instrumental variables regression setup with many strong instruments. We describe the failures of conventional estimation and inference, as well as alternative tools that restore consistency and validity. We then add various other features to the basic model such as heteroskedasticity, instrument weakness, etc., in each case providing a review of the existing tools for proper estimation and inference. Subsequently, we consider a related but different problem of estimation and testing in a linear mean regression with many regressors. We also describe various extensions and connections to other settings, such as panel data models, spatial models, time series models, and so on. Finally, we provide practical guidance regarding which tools are most suitable to use in various situations when many instruments and/or regressors turn out to be an issue.     

Inhabited Actors: Internalizing Institutions through Communication and Actorhood Models

We argue that accounts of relationships among actors, actorhood and institutions are predominantly based on a spatial metaphor of actors operating within institutions. We outline how an inversion of this metaphor – i.e., the perspective that institutions inhabit actors – may prove generative for theory, particularly with respect to recent discussions about the microfoundations of institutions. We outline how communication and actorhood models function as transmission mechanisms of institutions from one actor to another. We conclude with a discussion of how the inverted metaphor of institutions inhabiting actors can be useful for future theoretical developments.     

GENERALIZED AUTOREGRESSIVE SCORE MODELS WITH APPLICATIONS

We propose a class of observation‐driven time series models referred to as generalized autoregressive score (GAS) models. The mechanism to update the parameters over time is the scaled score of the likelihood function. This new approach provides a unified and consistent framework for introducing time‐varying parameters in a wide class of nonlinear models. The GAS model encompasses other well‐known models such as the generalized autoregressive conditional heteroskedasticity, autoregressive conditional duration, autoregressive conditional intensity, and Poisson count models with time‐varying mean. In addition, our approach can lead to new formulations of observation‐driven models. We illustrate our framework by introducing new model specifications for time‐varying copula functions and for multivariate point processes with time‐varying parameters. We study the models in detail and provide simulation and empirical evidence. Copyright © 2012 John Wiley & Sons, Ltd.     

TESTS OF EQUAL FORECAST ACCURACY FOR OVERLAPPING MODELS

This paper examines the asymptotic and finite‐sample properties of tests of equal forecast accuracy when the models being compared are overlapping in the sense of Vuong (Econometrica 1989; 57 : 307–333). Two models are overlapping when the true model contains just a subset of variables common to the larger sets of variables included in the competing forecasting models. We consider an out‐of‐sample version of the two‐step testing procedure recommended by Vuong but also show that an exact one‐step procedure is sometimes applicable. When the models are overlapping, we provide a simple‐to‐use fixed‐regressor wild bootstrap that can be used to conduct valid inference. Monte Carlo simulations generally support the theoretical results: the two‐step procedure is conservative, while the one‐step procedure can be accurately sized when appropriate. We conclude with an empirical application comparing the predictive content of credit spreads to growth in real stock prices for forecasting US real gross domestic product growth. Copyright © 2013 John Wiley & Sons, Ltd.     

Inter‐industry Wage Differences and Individual Heterogeneity*

Two well‐established findings are apparent in the analyses of individual wage determination: cross‐section wage equations can account for less than half of the variance in earnings and there are large and persistent inter‐industry wage differentials. We explore these two empirical regularities using longitudinal data from the British Household Panel Survey (BHPS). We show that around 90% of the variation in earnings can be explained by observed and unobserved individual characteristics. However, small – but statistically significant – industry wage premia do remain, and there is also a role for a rich set of job and workplace controls.     

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

Recent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy‐set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low‐cost orientations. In stable, non‐munificent environments, dynamic capabilities are effective in support of a low‐cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.     

NON‐LINEAR DYNAMICS,COMPLEXITY AND RANDOMNESS: ALGORITHMIC FOUNDATIONS

Abstract In this paper I make an attempt to describe, discuss and extend a few aspects of the rich mathematical tapestry that can be woven with rigorous notions of non‐linear dynamics, complexity and randomness, in terms of algorithmic mathematics. It is a tapestry that I try to weave with economic analysis, economic theory and economic modelling in mind. All three notions – that is, non‐linear dynamics, complexity and randomness – have a rich conceptual, modelling or analytic tradition in core areas of economic theory, both at the micro and macro levels. It is the algorithmic foundation I try to provide for them that could be considered the novel contribution in this paper. Once the algorithmic foundations are in place, it is, for example, almost natural to consider the famed difficulties of obtaining closed form solutions for non‐linear, complex or random dynamic models in economics almost a trivial vestige of a pre‐simulation era in mathematical modelling.     

Researching Corporate Social Responsibility Communication: Themes,Opportunities and Challenges

Growing recognition that communication with stakeholders forms an essential element in the design, implementation and success of corporate social responsibility (CSR) has given rise to a burgeoning CSR communication literature. However this literature is scattered across various sub‐disciplines of management research and exhibits considerable heterogeneity in its core assumptions, approaches and goals. This article provides a thematically‐driven review of the extant literature across five core sub‐disciplines, identifying dominant views upon the audience of CSR communication (internal/external actors) and CSR communication purpose, as well as pervasive theoretical approaches and research paradigms manifested across these areas. The article then sets out a new conceptual framework – the 4Is of CSR communication research – that distinguishes between research on CSR Integration, CSR Interpretation, CSR Identity, and CSR Image. This typology of research streams organizes the central themes, opportunities and challenges for CSR communication theory development, and provides a heuristic against which future research can be located.     

Human resource management–well‐being–performance research revisited: Past,present, and future

The authors provide an up‐to‐date theoretically based qualitative review of research dealing with the relationship between HRM, employee well‐being, and individual/organisational performance (HRM‐WB‐IOP research). The review is based on a systematic critical analysis of all HRM‐WB‐IOP studies (N = 46) published in 13 core HRM and management journals in the 2000 to 2018 period. The authors first identify different theoretical models of the HRM‐WB‐IOP relationship, which they then use to map research in the area. The results show that mutual gains conceptualisations play a dominant role in extant HRM‐WB‐IOP research, at the expense of alternative conflicting outcomes and mutual losses models, which are also shown to receive very limited empirical support across the 46 studies. As part of this mapping exercise, the authors identify important knowledge gaps in the area and conclude by setting out a number of key recommendations for future research to address these gaps.     

Modeling and Forecasting Large Realized Covariance Matrices and Portfolio Choice

We consider modeling and forecasting large realized covariance matrices by penalized vector autoregressive models. We consider Lasso‐type estimators to reduce the dimensionality and provide strong theoretical guarantees on the forecast capability of our procedure. We show that we can forecast realized covariance matrices almost as precisely as if we had known the true driving dynamics of these in advance. We next investigate the sources of these driving dynamics as well as the performance of the proposed models for forecasting the realized covariance matrices of the 30 Dow Jones stocks. We find that the dynamics are not stable as the data are aggregated from the daily to lower frequencies. Furthermore, we are able beat our benchmark by a wide margin. Finally, we investigate the economic value of our forecasts in a portfolio selection exercise and find that in certain cases an investor is willing to pay a considerable amount in order get access to our forecasts. Copyright © 2016 John Wiley & Sons, Ltd.     

Too Little or too much? Exploring U‐shaped Relationships between Corporate Environmental Performance and Corporate Financial Performance

Despite 40 years of research on the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP), there is no generally accepted theoretical framework that explains the contradictory results that have emerged. This unsatisfactory status may be attributed to the fact that linear models dominate the research. Based on an international sample of 2361 firm‐years from 2008 to 2012, we find empirical evidence of a non‐linear, specifically a U‐shaped, relationship between carbon performance and profitability as well as between waste intensity and profitability. The same result holds for the relationship between carbon performance and stock market performance, but solely for manufacturing industries. Our empirical findings provide evidence for the theoretical framework of a ‘too‐little‐of‐a‐good‐thing’ (TLGT) effect, which indicates that the type of relationship (positive, negative) depends on the level of CEP. More precisely, there is a negative CEP–CFP relationship for companies with low CEP and a positive association for high CEP. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

A cross‐cultural examination of the relationships among human resource management practices and organisational commitment: an institutional collectivism perspective

Previous research has shown that human resource management (HRM) practices vary across cultures. However, little research has empirically compared the effects of various HRM practices on firm‐level or individual‐level outcome variables across cultures. Drawing upon psychological contract theory and the literature on cultural values, the present study examined the effects of three organisational‐level HRM practices on individual organisational commitment in a survey of 2424 individuals in 120 organisations located in four countries and three industries. Based upon the GLOBE study, we classified the four countries into two groups – high versus low institutional collectivism. The results of our hierarchical linear modelling (HLM) analyses found significant differences in the effects of organisational‐level HRM on individual organisational commitment across cultures for two of the three HRM practices included in our model: training and teamwork. We also found partial support for differences across cultures for the effects of the third HRM practice: employee involvement in decision making. Overall, our results support the utility of theoretical and empirical models that address multiple levels of analyses to better understand the mechanisms through which the HRM‐performance link takes place across national cultures.