Parenting advantage in the MNC: An embeddedness perspective on the value added by headquarters

What determines the value an MNC's headquarters adds to its own affiliates? In this paper, we shed light on this question by linking the embeddedness view of the multinational corporation to the literature on parenting advantage. We test our hypotheses on an original dataset of 124 manufacturing subsidiaries located in Europe. Our results indicate that the external embeddedness of the MNC is an antecedent to headquarters' value creation. We find that headquarters' investments into their own relationships with the subsidiaries' contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded. We discuss implications for the MNC literature, embeddedness research, and the literature on parenting and headquarters' roles. Copyright © 2013 John Wiley & Sons, Ltd.     

Parallel imports and the lot of a starving artist

Abstract

This paper studies the role of copyright in the market for cultural output and how parallel imports effect the structure of incentives faced by artists. It demonstrates that parallel imports effect the distribution of income between generations of artists, raising the income of younger artists while reducing the income of superstars; the net outcome being a decline in the number of artists producing cultural output. Optimal subsidies to offset this decline can either involve a subsidy to starving young artists and no subsidy for superstars, or the opposite outcome depending on government attitudes towards the distribution of income.     

Digital based media design: the innovative contribution of design graduates from vocational and higher education sectors

Design is increasingly being recognised as a key source of competitive advantage in the innovation economy of many countries. The key objective of this research was to understand the contribution by design graduates to creative industries innovative activities. Primary research was conducted to understand barriers and limitations of graduate contributions to such activities. The attributes and skills of graduates from the university and Vocational Education and Training sectors were the subject of the study. Two focus groups, one with the education sectors and the other with representatives from design firms, government institutions and design associations were held. Though each group of graduates was praised for having certain skill sets graduates from both sectors were found to be lacking in three key areas: problem solving, communication skills and commercial knowledge. A range of suggestions for systemic improvement were proposed as a result of the study.     

Liberal Fair Value Accounting in Banks: A South African Case Study

Research findings on the role of fair value accounting (FVA) in the global financial crisis suggest that FVA is not applied neutrally by banks. The results of FVA are accepted when they contribute to higher profits and are actively resisted when they lead to losses. The aim of this article is to investigate how FVA is practically applied by banks in detail. The focus is on banks as most of their assets are financial instruments and thus potentially fair valued, and banks’ behaviour is significantly influenced by their regulatory environment. The research objective is pursued by using a case study of two South African banks. One of these is the largest and most systemically important bank in the South African system and the other is on the crossover between systemic and not systemic. It is found that FVA as applied by these two banks is not neutral. Also included is a demonstration of a method to derive the unrealised portion of profit and equity, the identification of the gap between assets and liabilities at fair value as the driver of where in a banking group FVA profits and losses are realised, and the finding that the restatement of comparative figures was used to circumvent the prohibition on reclassifications into and out of the ‘designated as at fair value’ category.     

The role of technology in transforming higher education

More than 100 years ago, John Dewey, a major influence in American education, argued for the need to “stimulate the spirit of inquiry into actual fact” (Dewey, 2002, p. 118). The debate among politicians and educators about the structure, purpose, and goals of education and inquiry continues. Yet the world has changed, largely because of widely accessible and versatile technologies. We are unclear how Dewey's spirit of inquiry will grow, die, or reinvent itself through boundaryless tools of inquiry such as the Internet, but the technology is here and will not disappear while educators debate best methods. Twenty‐first‐century society demands new ways to learn and understand, and these new ways of learning require new ways of teaching (McPheeters, 2009/2010). For many students, especially the younger generations, technology intertwines with almost all daily activities, including social contact. Many educators lag behind the technological curve and express frustration at the challenge to shift their educational paradigms toward increasingly technological means of communication and interaction, or entertain “virtual realities” as legitimate educational forums. The purpose of this symposium is to examine the role of technology in transforming higher education. The goal is to seek best methods of using technology more effectively to educate learners for the 21st century. The shifts in society's focus and the characteristics of learners going into the future are also critical, and part of this discussion.     

UNIONS,MONOPOLISTIC COMPETITION AND THE OPTIMAL MONETARY REGIME

This paper considers the optimal monetary regime in a monopolistically competitive economy where wages are set by non‐atomistic (i.e. large) unions. In such a context, the conduct of monetary policy is known to influence not only the equilibrium inflation rate, but also equilibrium employment. Previous contributions which have examined this scenario have commonly concluded that a low degree of accommodation of wages and prices is optimal. This study shows, however, that the framework's principal features imply a highly accommodating policy stance can potentially achieve a superior outcome and, indeed, despite its character, is able to both eliminate unemployment and deliver zero inflation.     

A Theoretical and Empirical Comparison of Free Agent and Arbitration-Eligible Salaries Negotiated in Major League Baseball

This paper presents a theoretical and empirical comparison of determination of negotiated salaries in baseball's free agent market to that in its final-offer arbitration (FOA) system. The theoretical bargaining model of each system is based on Nash (1950). It is argued that Farber's (1980) model of FOA is not fully applicable in explaining baseball's FOA process. The free agent market and the arbitration system each determine negotiated salaries that are dependent on the different disagreement outcomes of the negotiators in the respective systems. It is thus concluded theoretically that the two systems will determine salaries differently. The theoretical analysis also suggests that there may be selection bias present when one empirically analyzes only negotiated settlements. Using a straightforward regression model that controls for productivity, playing experience, and the potential selection bias, the empirical analysis substantiates the theory's results. A method is then developed to estimate the effect that free agent salaries have on salaries for arbitration-eligible players. It is found that there is a significant positive relationship between them, but the systems do not determine equal salaries for comparable players.     

Refining value-based differentiation in business relationships: A study of the higher order relationship building blocks that influence behavioural intentions

Research on the behavioural intentions (BI) of business-to-business customers has focused on the influence and the interactions among constructs driving BI, giving rise to two perspectives for the structural equation modeling of constructs influencing BI. In the first perspective, BI is impacted directly by relationship quality (RQ) and its antecedents such as relationship benefits (RB) and relationship sacrifices (RS). The second perspective suggests that antecedent dimensions of RB and RS may act indirectly through the construct of relationship value (RV), which drives RQ but also directly influences BI. The current study was undertaken to resolve the differences between these two perspectives. The findings indicate that RQ has a strong direct influence on BI while RV has a weak direct influence but a significant indirect influence on BI through the RQ construct. In addition, the constructs of RB and RS influence RQ directly, as well as through the RV construct.