Simulating Price-Taking

In this article, the author presents a price-takers’ market simulation geared toward principles-level students. This simulation demonstrates that price-taking behavior is a natural result of the conditions that create perfect competition. In trials, there is a significant degree of price convergence in just three or four rounds. Students find this simulation to be a fun, educational experience that adds value to their understanding of competitive markets.     

Building the BoP Producer Ecosystem: The Evolving Engagement of Fabindia with Indian Handloom Artisans

Recent research on the base of the pyramid (BoP) has called on firms to initiate market‐driven interventions directed at the BoP population with the objective of identifying and pursuing mutually profitable means of attaining meaningful poverty alleviation outcomes. In response, firms as well as scholars have engaged at length with the creation of new products and services for the BoP consumer but paid far less attention to the BoP producer—a member of the BoP population who creates value by producing goods and services for sale in nonlocal markets. Additionally, extant studies have largely focused on snapshot views of BoP interventions by firms, thereby limiting our understanding of the emergence of meaningful poverty‐alleviating outcomes over time from these interventions. This paper seeks to redirect attention toward the dynamic of the long‐term engagement between the firm and the BoP producer. Using rich qualitative data from Fabindia—an Indian handloom retailer—this paper examines how the engagement between Fabindia and communities of handloom artisans in India has persisted over a period of five decades. We found that, even as it encountered changes in the external environment and pursued newer organizational goals, Fabindia repeatedly renewed its engagement with handloom artisans and facilitated progression in poverty‐alleviation outcomes. Building on the insights from the case study, this paper presents a process model that highlights the role of innovative management practices in sustaining engagements between firms and BoP producers over time. Additionally, this paper proposes the concept of the “bridging enterprise”—a business enterprise that originates at the intersection of specific BoP communities and the corresponding nonlocal markets—as an interpreter and innovator reconciling the interests of stakeholders across the pyramid.     

Approach and Avoidance Motivation: Investigating Hedonic Consumption in a Retail Setting

Retail shopping studies often conclude that desirable shopper behaviors, such as spending more money, indicate underlying approach motivation, while undesirable behaviors, such as leaving the store, indicate underlying avoidance motivation. However, hedonic consumption would seem to provide an opportunity not only for approaching fun and excitement but also for avoiding problems and stress in everyday life. This study investigates approach and avoidance motivations in a hedonic consumption context. Results show that both approach and avoidance motivation lead to heightened hedonic motivations for shopping and to more positive shopper evaluations. Additional investigation reveals several differences by gender and across four shopping contexts. Several theoretical and managerial implications are offered.     

Evaluating Advice: Self‐Presentational Biases between High and Low Self‐Monitors

Previous research has demonstrated that high and low self‐monitors sought advice from others who shared their underlying motivational dispositions. Here, three studies extend the prior research by exploring how consumers’ underlying motives direct the type of advice offered and how it is evaluated. In Study 1, high and low self‐monitors were asked to evaluate the advice they gave others. As predicted, high self‐monitors rated their advice more favorably than did low self‐monitors. The underlying motivation that caused high self‐monitors to evaluate their advice more positively was investigated in Study 2. Results indicated that high self‐monitors rated their advice higher because it appeared to be meeting a social‐adjustive function (i.e., self‐presentational needs). In Study 3, high and low self‐monitors created an advertisement that featured their advice on dating for a fictitious online matchmaking service. As expected, advertisements created by high self‐monitors contained advice that addressed social‐adjustive needs while those created by low self‐monitors contained advice that addressed value‐expressive needs. The results of these studies suggest that underlying motivations of the individual play an active role in how advice is crafted and evaluated.     

Predictive Power of Personal Factors in Studying Students' Perception of Sales Profession in Poland

Since Poland has become a member of the European Union, free market activities have increased dramatically. The purpose of this study is to explore university students' perceptions of personal selling as a career in Poland. Using logistic regression and Z-test methodologies, we analyzed the perceptions of 114 students. The results confirm the findings of previous studies that personal factors play a significant role in predicting students' perception of sales profession as a career. The findings presented in this study show that Polish students have a biased perception about sales as a career; however, interestingly, few dimensions show a significant effect. Understanding students' perceptions of the sales profession will help corporate recruiters achieve their goals by selecting those students most likely to excel in sales careers.     

An analysis of the impact of adopting IFRS 8 on the segment disclosures of European blue chip companies

Amidst the IASB's post-implementation review of IFRS 8, we examine how the standard's adoption changed the reporting of segments by European blue chips (i.e. companies comprising the top tier index of 14 European stock exchanges). We focus on anticipated benefits articulated in the IASB's Basis for Conclusions and concerns expressed by IFRS 8 opponents.In addition to convergence with U.S. GAAP, IFRS 8 results in the reporting of significantly more operating segments on average. However, most companies report the same number or fewer segments. Refuting claims regarding the loss of geographic data at the entity-wide level, we identify an improvement in the fineness of disclosures and a significant increase in the disclosure of geographic groupings. We do not identify an improvement in consistency of segment disclosures with other sections of the annual report, which is due to the consistency already achieved under IAS 14R.IFRS 8 results in a significant decline in the number of reportable segment information items (notably liabilities) and a significant decline in the reporting of capital expenditures at the entity-wide level. Furthermore, adoption of the standard produces a lack of comparability in segment profitability measures and extensive reporting of non-IFRS measures. However, almost all companies report a measure of segment profitability tied to a number on the consolidated income statement or reconciled to the income statement.     

Managerial Problem-Solving Styles: A Cross-Cultural Study

ABSTRACT

The literature suggests that North American business-people differ from their Latin American counterparts with respect to specific behavioral traits. Our particular interest is in problem solving and in effecting changes in behavior to achieve better problem-solving capability. The purpose of the present study is to assess whether there are differences in problem-solving styles between two culturally different groups of managers registered in MBA Programs: Anglo American and Latin American. Using Kolb's (1984 2006) Learning Style Inventory, it was found that Anglo American managers tended to be relatively action-oriented, “Convergers” (they emphasize decision-making and use deductive reasoning), while Latin American managers tended to be reflection-oriented, “Assimilators” (they emphasize planning and like to create models in their analyses) in their problem-solving styles. The positive and negative aspects of each style are discussed and suggestions for improved decision-making are offered.

RESUMEN. La literatura sugiere que los empresarios norteamericanos difieren de sus contrapartes latinoamericanos, en lo que atañe a ciertos trazos comportamentales específicos. Nuestro interés particular se orienta a la solución de problemas e implementación de cambios comportamentales, con el propósito de adquirir habilidades específicas para la solución de problemas. El propósito de este estudio es evaluar si existen diferencias entre los estilos empleados para solucionar problemas entre diferentes grupos culturales de gerentes matriculados en Programas MBA angloamericanos y latinoamericanos. Usando el sistema de estilos de Kolb (1984 2006) denominado Learning Style Inventory, descubrimos que los gerentes angloamericanos tienden a orientarse con bastante frecuencia en la acción, los llamados ‘Convergentes’ (que hacen hincapié en la toma de decisiones y el uso del razonamiento deductivo), mientras que los gerentes latinoamericanos tienden a volcarse a la reflexión, los llamados ‘Asimiladores’ (que hacen hincapié enplanear y les gusta crear modelos en sus análisis), como característica de sus estilos para solucionar problemas. Discutimos los aspectos positivo y negativo de cada estilo, y hacemos sugerencias para mejorar la toma de decisión.

RESUMO. A literatura sugere que os homens de negócios norte-americanos diferem de seus colegas latino-americanos em traços comportamentais específicos. Nosso interesse particular recai sobre a resolução de problemas e a introdução de mudanças de comportamento para obter uma melhor capacidade de resolução de problemas. O objetivo deste estudo é avaliar se existem diferenças nos estilos de resolução de problemas de dois grupos culturalmente diferentes de gerentes matriculados em cursos de MBA: anglo-americanos e latino-americanos. Utilizando o inventário LSI (learning style inventory) de Kolb (1984 2006), constatou-se que os gerentes anglo-americanos tendiam a ser relativamente orientados para a ação, “convergentes” (eles enfatizam a tomada de decisões e o raciocínio dedutivo), enquanto os gerentes latinoamericanos tendiam a ser orientados para a reflexão, “assimiladores” (eles enfatizam o planejamento e gostam de criar modelos em suas análises) em seus estilos de resolução de problemas. Os aspectos positivos e negativos de cada estilo são discutidos, e sugestões para melhorar a tomada de decisões são oferecidas.