Exploring the mediating role of innovation in the effect of the knowledge management process on performance

The aim of this study is to explore the mediating role of innovation components in the relationship between knowledge management processes and performance. The research questions were investigated through questionnaires with top-level managers of a firm operating in the Turkish telecommunication industry. The results of the study indicated that knowledge management processes affect all innovation components. In addition to the direct effects of the knowledge management process on firm performance, marketing, product and process innovation are mediators in the relationship between the knowledge management process and performance. Finally, this research sheds light on how firms can manage their knowledge to gain a competitive advantage based on innovation.     

Alleviating job stress to improve service employee work affect: the influence of rewarding

Firms strive to identify interventions that promote customer contact employee (CCE) well-being by mitigating job stress to encourage better service experiences for customers. Drawing on equity theory, this research examines the influences of alternative rewarding approaches on CCE job stress and work-related attitudes, by assessing the effects of intrinsic (social recognition) and extrinsic (monetary) rewarding on CCE job stress, commitment to the organization, and customer orientation. Results of a survey of 220 CCEs from multiple service organizations indicate that social recognition reduces CCE job stress but that, contrary to expectations, monetary rewarding increases it. Moreover, satisfaction with pay has a greater influence on CCE customer orientation than social recognition.     

An experimental analysis of moral self-regulation

This article examines the validity of the moral self-regulation hypothesis in a laboratory setting. The experiment is comprised of a public good game preceded or followed by a matrix task. The data show that the recall of an immoral action (cheating in the matrix task) motivates the individual to do morally right thing (contributing to group account) and the recall of a moral action (contributing to group account) motivates the individual to act out self-interest (cheating in the matrix task). Both moral licensing and moral cleansing hypotheses are confirmed by the results of the experiment. Additionally, the findings indicate that the subjects who had been given a chance to cheat ‘at first’ allocated more funds to the group account; and the subjects who had been given a chance to voluntarily contribute ‘at first’ cheated more in the matrix task.     

The Shocking Origins of Political Transitions: Evidence from Earthquakes

Do earthquakes trigger political transitions? Using a rich panel dataset of 160 countries observed over 1950–2007, we find that earthquake shocks, measured in terms of the effect of ground‐motion amplitude on death toll, have two contradicting effects on political change. On the one hand, earthquakes drive transitions into democracy due to an affective shock, which we interpret to be the reaction of citizens by which they hold the incumbent government responsible for earthquake damages. On the other hand, earthquakes indirectly hasten transitions into a less democratic regime because they increase the income level contemporaneously, possibly due to short‐term emergency response and recovery expenditures, and thus, raising the opportunity cost of contesting the incumbent government. Overall, we show that, while not leading to a full‐fledged regime transition, earthquake shocks open a new democratic window of opportunity, but this window is narrowed by improved economic conditions.     

Attitudes of Design Students Toward Computer Usage in Design

The success of efforts to integrate technology with design education is largely affected by the attitudes of students toward technology. This paper presents the findings of a research on the attitudes of design students toward the use of computers in design and its correlates. Computer Aided Design (CAD) tools are the most widely used computer applications in design. An instrument was developed and applied for the first time to relate computer attitude to design field through CAD. Interior architecture undergraduates of Bilkent University participated in the survey. As a result, students’ attitudes toward the use of computers in design were found to be positive. A significant gender difference in attitudes toward computers was observed with males having more positive attitudes than females. The results also revealed that students’ attitude toward computer usage in design was highly related to their general attitude toward computers, but it was not correlated with their perception of instructors’ attitude toward the use of computers in design.     

Nash Equilibrium and Decentralized Negotiation in Auctioning Divisible Resources

We consider the problem of software agents being used as proxies for the procurement of computational and network resources. Mechanisms such as single-good auctions and combinatorial auctions are not applicable for the management of these services, as assigning an entire resource to a single agent is often undesirable and appropriate bund sizes are difficult to determine. We investigate a divisible auction that is proportionally fair. By introducing the notion of price and demand functions that characterize optimal response functions of the bidders, we are able to prove that this mechanism has a unique Nash equilibrium for an arbitrary number of agents with heterogeneous quasilinear utilities. We also describe decentralized negotiation strategies which, with approrpate relaxation, converge locally to the equilibrium point. Given an agent with a sequence of jobs, we show how our analysis holds for a wide variety of objectives.     

Research on effectiveness of technology transfer in technology alliances: evidence from Turkish SMEs

Many SMEs homed in newly industrialised countries are successful international players despite limited technological infrastructure and R&D resources. This study bridges a gap in the extant literature by examining the relationships between characteristics of partnership relationships, knowledge sharing and the effectiveness of technology transfer in partnerships between SMEs in developing countries and firms from developed countries. By studying data from Turkish SMEs and using partial least squares structural equation modelling, we find that explicit knowledge sharing forms the basis of technology transfer. Moreover, our findings demonstrate that explicit knowledge sharing is strongly contingent upon formalised technical support while trust and technical support seemed to be important antecedents of tacit knowledge sharing.     

The Japanese saving rate between 1960 and 2000: productivity,policy changes,and demographics

In this paper, we use an overlapping generations model to study the factors generating the saving rate in Japan between 1960–2000. The model economy allows for observed aging of the population, total factor productivity (TFP), and fiscal policy to affect the national saving rate. Our calibrated general equilibrium setup generates saving rates that are reasonably similar to the data during this period. Our counterfactual experiments indicate that observed TFP growth rates are the main reason for both the secular decline and the two humps in the saving rate during 1960–2000.      

A life cycle analysis of social security

Summary We develop an applied general equilibrium model to examine the optimal social security replacement rate and the welfare benefits associated with it. Our setup consists of overlapping generations of 65-period lived individuals facing mortality risk and individual income risk. Private credit markets, including markets for private annuities, are closed by assumption. Unlike previous analyses, we find that an unfunded social security system may well enhance economic welfare. In our benchmark economy, the optimal social security replacement rate is 30%, and an empirically more plausible replacement rate of 60% raises welfare compared with an economy with no social security system.We would like to thank Andy Atkeson, V. V. Chari, Steve Davis, Paul Evans, Lars Hansen, Tim Kehoe, Nobu Kiyotaki, Ed Prescott, José-Victor Ríos-Rull, Richard Rogerson, Tom Sargent, Nancy Stokey, Dick Sweeney, Robert Townsend, and the participants of the NBER Economic Fluctuations Small Group Workshop on Micro and Macro Perspectives on the Aggregate Labor Market in Palo Alto, the NBER General Equilibrium Theory Conference in Minneapolis, the Money and Banking Workshop at the University of Chicago, and the NBER Summer Institute. An earlier version of this paper was titled A Dynamic Stochastic General Equilibrium Analysis of Social Security. This material is based upon work supported by the National Science Foundation under Grant No. SES-9210291. We also thank the Minnesota and San Diego Supercomputer Centers for their support.     

Repeated moral hazard with persistence

Summary. This paper considers the optimal contract when the current (hidden) action of an agent has a persistent effect on the future outcome. The optimal contract in a two-effort choice, two-period setting is characterized analytically and numerically. In particular, we show that persistence tends to make compensation less responsive to the first-period outcome. At the extreme, there are cases where the agent is perfectly insured against the first-period outcome: the agent obtains the same utility regardless of the first-period outcome. The model is extended to three periods. We also present a computational method to characterize an N-period model with two-period persistence.Received: 9 December 2003, Revised: 13 February 2004, JEL Classification Numbers: D82, J31, J65. Correspondence to: Ayegül ahinWe are grateful to an anonymous referee, Jack Barron, Mark Bils, Hugo Hopenhayn, Per Krusell, Lance Lochner, Steve Williamson, and seminar participants at Concordia University, Purdue University, the applied theory meetings at University of Rochester, the Conference of the Society for the Advancement of Economic Theory 2003, the Rochester Wegmans Conference 2002, and the Society for Economic Dynamics Meetings 2003 for their comments and suggestions. We also wish to thank Vera Brencic, Nancy Marmon, and Roxanne Stanoprud for excellent research assistance.