Determining the scope and impact of market orientation profiles on strategy implementation and performance

Strategy implementation and performance in organizations are influenced by its market orientation. Market orientation is the collective of employee behaviors that affects strategy implementation, how an organization interacts with its environment and adjusts to changes within that context. The relationship between market orientation, strategy implementation, and performance is robust across environmental contexts. This study identifies ideal behavioral profiles for organizations seeking to maximize performance by considering the scope and impact of market orientation on strategy implementation. This is accomplished by considering market orientation and strategy profiles in relation to performance in a holistic coalignment perspective, corresponding to competitive contexts characterized by varying degrees of market turbulence and competitive intensity. Important strategic and performance implications of this dynamic are revealed that should be considered by academics and practitioners alike. Copyright © 2003 John Wiley & Sons, Ltd.     

The potential benefits of herbicide-resistant transgenic rice in Uruguay: Lessons for small developing countries

In many developing countries, the potential benefits from adopting a transgenic variety developed by a multinational corporation are limited by the crop’s small production base. This paper presents an ex-ante evaluation of the economic impact of herbicide resistant transgenic rice in a small developing country, Uruguay. To fully account for the multinational’s market power, the firm’s seed markup is assumed to affect the adoption rate for the variety. Stochastic simulation techniques are employed to understand how potential benefits may vary with changes in technology, yield, costs, and adoption parameters. The results indicate a $1.82 million mean net present value for producers from the development and utilization of transgenic rice in Uruguay and $0.55 million for the multinational. These relatively small multinational firm benefits suggest that a firm will not undertake significant efforts to develop transgenic varieties adapted to local conditions without either strategic partnerships with local institutions or access to wider regional markets.     

A comparative analysis of perception of dividends by financial managers

This paper is a report about the perception of dividends by Chief financial officers (CFOs). The research encompasses five countries, on three continents, and covers three types of economies. Our cross-sectional study is concerned with both inter- and intra-societal differences that may or may not exist regarding the perception of dividends by those who are in charge of making such decisions in the firm. Using a survey instrument, we find that both similarities and dissimilarities exist inter- and intra-culturally. Perhaps the most important conclusion we reach is that dividend research must take a different track than it has been following so far.     

Two Views of Accounting Measurement

The two views to be addressed here are the Chambers/Sydney view that accepts only one measurement method—current net realizable price—and the Staubus/mainstream view that accepts several measurement methods in the same financial report. These two views became well-established in the literature of accounting in the 1960s and their proponents have clung tenaciously to their oft-criticized positions for some forty years. However commendable their original expositions may have been, their continuing existence does no credit to the small coterie of accountants now interested in theory.
This article is aimed at 'narrowing the areas of difference' between adherents to the two views by isolating fundamental bases for them and exposing the reasoning supporting their structures. In a nutshell, they differ in their objectives and they can be expected to survive unless their adherents agree on the objectives of financial reporting.     

REAL OPTIONS WITH COMPETITION AND REGIME SWITCHING

In this paper, we examine irreversible investment decisions in duopoly games with a variable economic climate. Integrating timing flexibility, competition, and changes in the economic environment in the form of a cash flow process with regime switching, the problem is formulated as a stopping‐time game under Stackelberg leader‐follower competition, in which both players determine their respective optimal market entry time. By extending the variational inequality approach, we solve for the free boundaries and obtain optimal investment strategies for each player. Despite the lack of regularity in the leader's obstacle and the cash flow regime uncertainty, the regime‐dependent optimal policies for both the leader and the follower are obtained. In addition, we perform comprehensive numerical experiments to demonstrate the properties of solutions and to gain insights into the implications of regime switching.     

Crude oil price forecasting based on internet concern using an extreme learning machine

The growing internet concern (IC) over the crude oil market and related events influences market trading, thus creating further instability within the oil market itself. We propose a modeling framework for analyzing the effects of IC on the oil market and for predicting the price volatility of crude oil’s futures market. This novel approach decomposes the original time series into intrinsic modes at different time scales using bivariate empirical mode decomposition (BEMD). The relationship between the oil price volatility and IC at an individual frequency is investigated. By utilizing decomposed intrinsic modes as specified characteristics, we also construct extreme learning machine (ELM) models with variant forecasting schemes. The experimental results illustrate that ELM models that incorporate intrinsic modes and IC outperform the baseline ELM and other benchmarks at distinct horizons. Having the power to improve the accuracy of baseline models, internet searching is a practical way of quantifying investor attention, which can help to predict short-run price fluctuations in the oil market.     

The Role of Media Coverage in Explaining Stock Market Fluctuations: Insights for Strategic Financial Communication

This study investigates the reciprocal relationships between the fluctuation of the closing prices of three companies listed on the Amsterdam exchange index, namely ING, Philips and Shell and online media coverage related to these firms for a period of two years (2014–2015). Automated content analysis methods were employed to analyze sentiment and emotionality and to identify corporate topics related to the companies. A positive relation of the amount of coverage and emotionality with the fluctuation of stock prices was detected for Shell and Philips. In addition, corporate topics were found to positively Granger cause stock price fluctuation, particularly for Philips. The study advances past research in showing that the prediction of stock price fluctuation based on media coverage can be improved by including sentiment, emotionality, and corporate topics. The findings inform strategic communication, and particularly investor relations, in suggesting that media attention, sentiment, and certain corporate topics are crucial when managing media relations and with regard to securing a fair evaluation of listed companies. Furthermore, the innovative research methods are useful for researchers and practitioners alike in showcasing how media coverage related to firms and their stock fluctuations can be identified and analyzed in a reproducible, hands-on and efficient manner.