Increasing correlations or just fat tails?

Increasing correlation during turbulent market conditions implies a reduction in portfolio diversification benefits. We investigate the robustness of recent empirical results that indicate a breakdown in the correlation structure by deriving theoretical truncated and exceedance correlations using alternative distributional assumptions. Analytical results show that the increase in conditional correlation could be a result of assuming conditional normality for the return distribution. When assuming a popular alternative distribution – the bivariate Student-t_r – we find significantly less support for an increase in conditional correlation and conclude that this is due to the presence of fat tails when assuming normality in the return distribution.     

Mapping the Impact of Social Media for Innovation: The Role of Social Media in Explaining Innovation Performance in the PDMA Comparative Performance Assessment Study

Social media (SM) allow users to easily create, edit, or share content. The vast numbers of individuals that converge around sites like LinkedIn, Facebook, or Twitter embody a rich source of external knowledge that could be utilized for new product development (NPD). Complementing other channels for open innovation (OI), SM can provide access to novel information about customer needs and technological solutions unknown to the firm. Anecdotal evidence suggests that there are considerable benefits from using SM during an innovation project, but empirical evidence is scarce. Contributing to the perspective of openness in search, a number of hypotheses propose how SM as a new channel for OI can contribute to firm performance. This model is tested using data from the PDMA Comparative Performance Assessment Study, identifying factors influencing the relationship between SM and NPD performance. The findings indicate that utilizing information from SM channels can lead to higher performance, but that this link is influenced by the formalization of a firm's NPD process. This study also finds that the ability of a firm to benefit from external search in SM strongly depends on complementary internal processes when organizing and conducting this activity. Furthermore, managers have to take care when utilizing information from SM channels in radical projects, as for this kind of project only a weak significant performance contribution of SM could be found.     

To distribute leadership or not? A lesson from the islands

There is a dearth of literature in the area of tourism leadership. This article identifies the theoretical aspects of distributed leadership which features collective responsibility and collective flexibility, and argues how it might be advantageous for tourism firms in general. A longitudinal qualitative case study is used to consider different forms of distributed leadership and their impact upon organisational outcomes. The analysis is presented in terms of the presence or absence of distributed leadership within the case organisation. Evidence is provided of where this style of leadership would support success, but also identifies why it has been so hard to recognise this and then maintain and support it over time. It is argued that it may prove advantageous for tourism firms to actively consider whether distributed leadership would potentially offer increased organisational performance.     

The attributes of a cruise ship that influence the decision making of cruisers and potential cruisers

A never ending challenge for the cruise industry is to convert potential cruisers to cruisers. Grounded in Attribute Knowledge Theory and studies on novelty seeking, this study addressed this challenge by examining the different attributes of a cruise ship that influence the decision making of cruisers and potential cruisers. Using a sample of cruisers and potential cruisers with similar socio-demographics, this study found that they perceive seven dimensions of onboard attributes, but attach different importance to some of them. These results, consistent with the theoretical prediction, provide evidence that the cruise industry should develop different marketing strategies for cruisers and potential cruisers.     

Quiet enjoyment in the National Parks of England and Wales: public understanding of the term and its influence on attitudes towards recreational activities

In response to concerns raised since the National Parks and Access to the Countryside Act 1949 established the National Parks, the National Parks Review Panel (1991) recommended that the term ‘quiet enjoyment’ be included in the Environment Bill to clarify the wording of the second purpose for National Parks. During parliamentary debate the term was removed, and some have subsequently claimed that this weakened the Environment Act 1995. This article describes the outcomes of a survey to establish the nature of public understanding of the terms ‘quiet enjoyment’ and ‘quiet recreation’ and to identify the nature of incidents perceived as interfering with ‘quiet enjoyment’ and ‘quiet recreation’. The results indicate that the terms ‘quiet enjoyment’ and ‘quiet recreation’ hold different meanings for the public, with ‘quiet enjoyment’ being a broader and more emotive concept than ‘quiet recreation’. However, despite differences in meaning of the two terms, similar factors were reported as interfering with both ‘quiet enjoyment’ and ‘quiet recreation’. Respondents were also asked about the perceived acceptability of a range of activities within National Parks, and about their own involvement in those activities. Links were found between perceived compatibility of recreational activities with the terms ‘quiet enjoyment/quiet recreation’ and their acceptance in National Parks. Those surveyed viewed some restrictions on activities as necessary.     

An examination of reference prices at factory outlet stores

The purposes of this research study were to (1) examine the use of reference prices by one segment of retailing – factory outlet stores and (2) explore related public policy considerations. The researchers found that there was a significant difference between advertised reference prices at factory outlet stores and the regular retail price found in department or specialty stores in the same market. Advertised reference prices in outlets were significantly higher – a 6.2 percent difference. For only two of the product categories studied were differences not significant – housewares and children's apparel. Since these comparative reference prices are not in line with the regular prices at traditional stores, there is a potential for deceptive price claims.     

Negotiating ‘Difference’: Representing Disabled Employees in the British Workplace

Drawing on qualitative interviews with disabled employees, union officers and disability‐related organizations, this article examines employee attempts to negotiate workplace adjustments and associated issues of workplace representation. UK employment law utilizes an individual medical model of disability, which conflicts with traditional collective approaches favoured by trade unions, which has implications for disabled employees and union representation. We explore the different strategies available to unions and conclude that, despite the role played by disability‐related organizations in supporting employees, unions are the only workplace actors who are capable of reconfiguring the ‘personal as political’ and integrating disability concerns into wider organizational agendas.