Ethics,gratuities, and professionalization of the purchasing function

This study investigated (1) whether potential future purchasing agents were predisposed to accept gratuities or whether the practice of gratuity acceptance is a manifestation of the job itself, (2) whether the existence of a code of ethics forbidding gratuity acceptance curtails the occurrence, and (3) whether disparities in ethics policies between the sales and purchasing functions affect gratuity acceptance. Hypotheses based upon the concepts of organizational concern and institutionalized ethics are developed and empirically tested. Results suggest that future purchasing agents are predisposed to accept gratuities and that formal written ethics policies decrease the acceptance of gratuities. Disparities in ethics policies between the sales and purchasing functions concerning gratuities failed to affect gratuity acceptance significantly.Gregory B. Turner is assistant professor of marketing at Livingston University. He has published inThe International Journal of Logistics Management and theTransportation Journal.G. Stephen Taylor is Associate Professor of management at Mississippi State University. His research interests include ethics in computer usage, performance appraisal, and turnover control.Mark F. Hartley is Assistant Professor and National Association of Purchasing Management/Carolinas-Virginia chair of Purchasing at the College of Charleston. His research interests include ethics and professionalization of the purchasing function.     

A First Assessment of Some Measures of Core Inflation for the Euro Area

Abstract. Core inflation plays an important role in the deliberations of monetary policy-makers. In this paper we evaluate a number of measures of core inflation constructed using euro-area data. In addition to the traditional exclusion-type core measures, we examine two newer ones, documenting their properties and evaluating their performance in terms of their ability to track underlying or trend inflation in real time. We focus on core measures derived from the Harmonized Index of Consumer Prices (HICP) as the European Central Bank has chosen to define its mandate for price stability in terms of this index, and because this is the only index of consumer prices that is compiled in a comparable manner across all members of the European Union. We document significant excess kurtosis in the cross-section distribution of price changes in the euro area, and show that several categories of prices are more volatile than those typically excluded from traditional measures of core inflation. Contrary to what one might expect, traditional measures of core inflation are not significantly less volatile than headline measures. We document the superior performance of alternative measures of core inflation in tracking trend inflation on average, but show that none of the various measures of core gave significant advance warning of the pickup in trend inflation at the beginning of 1999.     

E-Consulting in Virtual Negotiations

In the e-world where many of us live and work, virtual work arrangements will become increasingly commonplace. This paper reports on an exploratory study into the way in which consultants can ply their trade virtually with clients whom they never meet. US-located e-consultants provided advice to Hong Kong-located web site developers on the interface and content aspects of a website that was being developed for an international audience. Extensive analyses of the communication between the consultants and developers is undertaken, in parallel with an analysis of survey data obtained from the two sets of stakeholders. Lessons are drawn for future research and practice.     

The effectiveness of different mechanisms for integrating marketing and R&D

The integration of marketing and R&D is a major concern for companies that want to improve their new product performance (NPP). For this integration, companies are using mechanisms such as physical proximity, cross-functional teams, and job rotation. This study examines the effectiveness of these mechanisms by developing a model that distinguishes between indirect effects of mechanisms on NPP (i.e., through a higher level of integration) and direct effects. The model is tested with data collected from 148 pharmaceutical companies. We were able to measure and compare the effectiveness of seven different integration mechanisms, which produced insights that are interesting and relevant for theory as well as practice.
We found that housing marketing and R&D closer to each other and using an influential cross-functional phase review board are the most effective mechanisms to foster integration. Equal remuneration and career opportunities for marketing and R&D and cross-functional teams are somewhat less effective, whereas personnel movement and informal social group events contribute little. ICT appears to be a very effective tool for enhancing NPP. ICT not only fosters integration between marketing and R&D, but it also has an independent direct positive effect on NPP. Through ICT the day-to-day communication between the different parties in the companies becomes much easier, and we think that this fosters the knowledge creation process within marketing and R&D. For cross-functional phase review boards we found a negative direct effect on NPP. Notwithstanding its strong positive effect on integration, a price is paid in terms of NPP. This may be related to the amount of formalization and complexity accompanying this mechanism.     

Entrepreneurial Intentions and Outcomes: a Comparative Causal Mapping Study

This paper uses a causal map methodology to consider the contrasts between entrepreneurial intentions and outcomes. In evaluating a series of propositions drawn from the extant literature the study finds that the elicited causal maps are consistent with contrasts in entrepreneurial intentions, but not outcomes. This suggests that the existing emphasis on entrepreneurial strategies being deliberate, conscious processes may be misplaced: non-deliberate, emergent strategies may be just as influential in producing entrepreneurial outcomes. The study develops a series of output propositions suggesting that entrepreneurial outcomes are associated with causal maps which connect the internal operations of the business with the external environment. This implies that entrepreneurial success may be a result of intuitive systems thinking in which connections are made between the environment and the internal operations of the business.     

Characteristics of Risk and Return in Risk Arbitrage

This paper analyzes 4,750 mergers from 1963 to 1998 to characterize the risk and return in risk arbitrage. Results indicate that risk arbitrage returns are positively correlated with market returns in severely depreciating markets but uncorrelated with market returns in flat and appreciating markets. This suggests that returns to risk arbitrage are similar to those obtained from selling uncovered index put options. Using a contingent claims analysis that controls for the nonlinear relationship with market returns, and after controlling for transaction costs, we find that risk arbitrage generates excess returns of four percent per year.     

University-Provided Retirement Planning Support and Retiree Financial Satisfaction During Retirement: Differences by Gender, Job Classification, and Planning Behavior

Sound financial planning and financial advice is necessary to achieve retirement income adequacy. The shift from defined benefit to defined contribution pension plans and the recent bankruptcy of Enron Corporation underscore the importance of managing retirement accumulation and liquidation risks. This study analyzes the effectiveness and adequacy of institutional-provided information and advice on employees' retirement planning decisions and their satisfaction with financial resources during retirement. Results suggest that retirement planning should begin earlier in an employee's career and that employer-provided retirement information and advice is a highly valued service. Gender, planning practices, job classification, and age are all significant predictors of satisfaction with financial resources during retirement. Targeting women and union employees with retirement information and advice that focuses on allocating contributions using a balanced portfolio approach should result in significant increases in satisfaction with financial resources during retirement. Regulatory objectives should focus on reducing retirement accumulation and liquidation risks, improving the delivery of professional financial advice to plan participants, and expanding qualified retirement plan choice for all labor force participants. To encourage employer participation in employee retirement planning, employers acting in "good faith" should be federally protected from liability for providing retirement planning information and advice to employees.     

When haste makes sense: Cracking down on street markets for illicit drugs

This paper presents an analytical approach to the tactical question: ‘What level of enforcement over time allows one to eliminate a street market for illicit drugs while expanding the least possible total effort?’ The analysis is done in the context of Caulkins' model [6] which predicts the rate of change of dealers as a function of enforcement level and several market parameters. Our analysis suggests that the simple strategy of using the maximum available enforcement intensity until the market has been eliminated minimizes the total enforcement effort required.