IS CORPORATISM FEASIBLE?

This paper investigates the effects of cooperation (corporatism) on macroeconomic performance by considering a rather standard policy game between the government and a monopoly union. We stress the shortcomings of the traditional way used to model cooperation in policy games (the maximization of the weighted sum of players’ preferences), which only approximates the Nash product solution. We find that it is difficult to implement corporatism, although it generally increases social welfare, as it often reduces the union's utility. In particular, we show that an inflation‐neutral union will never find it profitable to cooperate with the government, unless side‐payments are considered. The study of this issue, however, is beyond the scope of this paper.     

Understanding the exploration–exploitation dilemma: An fMRI study of attention control and decision‐making performance

This paper studies the cognitive processes that enable decision makers to switch between exploitation and exploration. We use functional magnetic resonance imaging (fMRI) in a sample of expert decision makers to make two main contributions. First, we identify and contrast the specific brain regions and cognitive processes associated with exploitation and exploration decisions. Exploitation activates regions associated with reward seeking, which track and evaluate the value of current choices, while exploration relies on regions associated with attentional control, tracking the value of alternative choices. Second, we propose and test the idea that stronger activation of the brain circuits related to attentional control allows individuals to achieve better decision‐making performance as a result. We discuss the implications of these results for strategic management research and practice. Copyright © 2013 John Wiley & Sons, Ltd     

Understanding Responsible Leadership: Role Identity and Motivational Drivers

This article contributes to the emerging discussion on responsible leadership by providing an analysis of the inner theatre of a responsible leader. I use a narrative approach for analyzing the biography of Anita Roddick as a widely acknowledged prototype of a responsible leader. With clinical and normative lenses I explore the relationship between responsible leadership behavior and the underlying motivational systems. I begin the article with an introduction outlining the current state of responsible leadership research and explaining the kind of magnifying glasses used to examine the case. I continue with a brief summary of Anita Roddick’s development from childhood to adulthood, which provides the biographical background for exploring her motivational systems as a leader. Against this backdrop, I analyze the relationship between motivational drivers and a responsible leadership identity as revealed by Roddick in different behavioral leadership roles. I conclude the article by providing a number of lessons learned for responsible leadership and the development of future global leaders. Dr. Nicola M. Pless is a former Vice President of leadership development at a large financial services institution. Currently she is Reader in Responsible Leadership at the University of St. Gallen and Research Director of the HSG-INSEAD Initiative on Responsible Leadership. She holds a Ph.D. in organizational theory and social issues from the University of St. Gallen and a diploma in clinical organizational psychology from INSEAD where she is a Visiting Senior Research Fellow. She is editor of “Responsible Leadership”, published by Routledge in 2006.     

How should we divide the pie? Equity distribution and its impact on entrepreneurial teams

Drawing on a multiple case study approach and data on eight entrepreneurial teams observed over six months this article develops a dynamic model of the consequences of equity distribution among team members. Perceived justice of equity distribution emerged as a key variable influencing entrepreneurial team interactions and important entrepreneurial outcomes. High perceived justice triggered positive team interaction spirals, whereas low perceived justice triggered negative interaction spirals. Teams exposed to external threats drifted from a positive spiral to a negative spiral despite high perceived justice. We discuss the implications of our study for research on entrepreneurial imprints, justice, and exit.     

Growth in regions

We use a newly assembled sample of 1,528 regions from 83 countries to compare the speed of per capita income convergence within and across countries. Regional growth is shaped by similar factors as national growth, such as geography and human capital. Regional convergence rate is about 2 % per year, comparable to that between countries. Regional convergence is faster in richer countries, and countries with better capital markets. A calibration of a neoclassical growth model suggests that significant barriers to factor mobility within countries are needed to account for the evidence.     

Global Governance: CSR and the Role of the UN Global Compact

The article discusses the role of the UN Global Compact (UNGC) in the emerging global corporate social responsibility infrastructure. It evaluates the debate around the effectiveness and legitimacy of the UNGC alongside the arguments of its supporters and critics and thereby introduces the Thematic Symposium contributions. The article further identifies three theoretical perspectives that are used by scholars to discuss the performance of the UNGC: economic, socio-historical, and normative. It proposes that these perspectives can serve as generic distinctions with direct relevance for the evaluation of the UNGC. Once the perspective is chosen, it drives towards a certain purpose which implies assumptions and design features with regard to the UNGC. Finally, the article offers a future research agenda, emphasising the research needed on the UNGC in four areas: the identification of processes and influence mechanisms; legitimacy and effectiveness; local networks and regional development; and the interface of the UNGC and responsible leadership.     

Sticky cost behaviour: evidence from small and medium sized companies

This paper investigates whether cost stickiness occurs in small and medium sized companies using a sample of Italian nonlisted and listed firms during the period 1999–2008. Our findings show that cost stickiness emerges only for the total cost of labour and not for selling, general and administrative (SG&A) costs, cost of goods sold and operating costs. Stickiness of operating costs is only detected in a sample of listed companies. We further contribute to the literature on sticky cost behaviour by discussing critical issues associated with the extant approach of empirical analysis and interpretation of sticky cost behaviour.     

The determinants of mode of transport to work in the Greater Dublin Area

Rapid economic and demographic change in the Greater Dublin Area over the period 1996–2006, with associated increases in car dependence and congestion, has focused policy on encouraging more sustainable forms of travel. In this context, knowledge of current travel patterns and their determinants is crucial. Here we concentrate on travel for a specific journey purpose, namely the journey to work. Using data on the full population of working individuals from the 2006 Census of Population, we analyse the influence of travel and supply-side characteristics, as well as demographic and socio-economic characteristics on the choice of mode of transport to work in the Greater Dublin Area. The results indicate that household composition, public transport availability, journey time and work location are particularly significant in explaining the choice of mode of transport to work.     

Measurement Characteristics of Aaker's Brand Personality Dimensions: Lessons to be Learned from Human Personality Research

By referring to research on the measurement of the Big Five personality factors, this article investigates measurement characteristics of brand personality (BP) dimensions. The authors apply a meta‐analysis and investigate the intercorrelations and reliabilities of the BP dimensions of Sincerity, Excitement, Competence, Sophistication, and Ruggedness, as suggested by Aaker (1997). Similar to the Big Five personality factors, the measurement of BP reveals interdependence of the dimensions and one General Personality Factor. Furthermore, the reliabilities reveal instability across method characteristics, for instance, the use of facets as opposed to traits in measuring BP drives up the reliabilities of those dimensions with a larger number of items (e.g., Sincerity). Finally, as with the Big Five, the BP dimensions show differential effects on performance measures (as assessed by brand attitude) and thus support the predictive power of the single dimensions. The findings provide insights into the dimensional structure of BP and its stability, and support the transferability of the Big Five personality factors to nonhuman domains. Importantly, the article outlines relevant avenues for future research on BP measurement.