<Emphasis Type="Bold">The Free-Market Innovation Machine - Analyzing the Growth Miracle of Capitalism</Emphasis>

Book Review

The Free-Market Innovation Machine - Analyzing the Growth Miracle of Capitalism     

Is ‘dependence’ a useful concept in analysing underdevelopment?

The concept of ‘dependence’ is being increasingly used as a comprehensive explanation of the state of underdevelopment. It is, however, impossible to define in terms either of static or dynamic criteria, and most of its arguments are aimed at the capitalist system in general rather than dependence as such. Many of its conclusions about the effect of dependence on development may apply to particular cases but cannot be generalised, and as an analytical tool ‘dependence’ is not conducive to a useful analysis of underdevelopment.     

Human capital formation under neo-liberalism: the legacy of vocational education training in Australasia and implications for the Asia-Pacific region

Abstract

This appraisal considers the role and impact of vocational education and training (VET) in Australia and New Zealand, and suggests directions such policy might take in other Asia-Pacific countries. It identifies key issues and constraints in making VET more responsive to emerging labour market needs in the region as an important factor in sustaining high economic growth. It focuses on the way in which the demands of the government, industry, trainees, and, in particular, shifts in political ideology that have influenced the education and training sectors in both countries. It addresses points of specific relevance for the delivery of VET in the broader Asia-Pacific context and concludes with a consideration of lessons and experiences of Australia and New Zealand with VET that may hold for other countries in the region in formulating priorities and implementing strategies in meeting their current and emerging needs for skills development.     

Colliding Employer‐Employee Perspectives of Employee Turnover: Evidence from a Born‐Global Industry

Set in the context of internationalization of the global division of labor, this article provides a deeper exploration of qualitative themes of conflicting accounts of employees’ reasons to quit and managerial strategies to prevent employee turnover in six business process outsourcing firms operating in India. Such differences in cognition and action between the two constituencies suggest that the decision to quit is not a linear and rational process as highlighted in most extant models of employee turnover. Our findings suggest that employees are attached more to a place or people they work with rather than the organization per se. Intergenerational differences between Generation Y knowledge workers and Generation X managers and the ineffectiveness of espoused human resource practices suggest the presence of “push” human resource management (HRM) systems. Our findings have implications for employee turnover models, intergenerational theory and high‐commitment HRM, and practitioners. © 2015 Wiley Periodicals, Inc.     

Effects of link placements in email newsletters on their click-through rate

Firms adopting email marketing strategy often complain about low click-through rate (CTR). Scarcity of attention in this digital economy requires including psychological aspects of consumer behavior into the design considerations of digital contents. In this study, we propose differential effects of link placements in email newsletter on their CTR. We explain the observed effects of link placements on CTR drawing concepts from psychology and visual heuristics. The empirical analysis confirms that when it comes to clicking on the links of a newsletter, the click-through follows a U-pattern, i.e. as users traverse the links placed on a U-path their responsiveness decreases gradually. Thus, links placed in the left region of an email newsletter have higher impact than those placed in the right region with links in the top-left region having highest impact. Insights gained from this study can be used in the design consideration of email newsletters.     

R&D and the patent premium

We analyze the effect of patenting on R&D with a model linking a firm's R&D effort with its decision to patent, recognizing that R&D and patenting affect one another and are both driven by many of the same factors. Using survey data for the U.S. manufacturing sector, we estimate the increment to the value of an innovation realized by patenting it, and then analyze the effect on R&D of changing that premium. Although patent protection is found to provide a positive premium on average in only a few industries, our results also imply that the premium varies across industries and with firm size. Patent protection also stimulates R&D across all manufacturing industries, albeit with the magnitude of that effect varying substantially.     

On the Portfolio Properties of Real Estate in Good Times and Bad Times1

Motivated by the theoretical results on strategic asset allocation, we examine the gains in portfolio performance when investors diversify into different asset classes, with particular focus on the timeliness of such gains. Although the various asset classes we analyze yield significant gains in portfolio performance, even in the presence of short‐sales constraints, the timeliness of the gains differs considerably across the asset classes. Our key result is that real estate and commodities and precious metals are the two asset classes that deliver portfolio gains when consumption growth is low and/or volatile, that is, when investors really care for such benefits. Our analysis highlights an important metric by which to judge the attractiveness of an asset class in a portfolio context, namely the timeliness of the gains in portfolio performance. Further, our results on the performance of real estate in both good times and bad times suggest that the typical institutional allocation to real estate may underweight the role of the asset class in a diversified portfolio context.     

How can mindfulness enhance moral reasoning? An examination using business school students

Given the comprehensive influence of mindfulness on human thought and behavior, and the importance of moral reasoning in business decisions, we examine the role of mindfulness as an antecedent to moral reasoning through two studies. In Study 1, we propose and test a theoretically derived model that links mindfulness and moral reasoning, mediated by compassion and egocentric bias using a survey design. In Study 2, we examine whether mindfulness training enhances moral reasoning using an experimental design with graduate students of business management. The findings of Study 1 substantiate the positive association of mindfulness with moral reasoning. We found that this relationship is fully mediated by compassion and egocentric bias. The results of Study 2 suggest that mindfulness meditation training has a positive impact on individuals' states of mindfulness, compassion, and moral reasoning, and decreases egocentric bias. We relate the findings of the study with contemporary neurological research and discuss the theoretical, pedagogical, and managerial implications.     

Investigating household choice for health and life insurance

The objective of this article is to investigate the joint determination of household choice for health and life insurance. Using the 2008–2009 Consumer Expenditure Survey data, we model household choice for health and life insurance assuming households consider purchasing them to manage financial risks in their life, after accounting for household characteristics, insurance characteristics, health status, and disability status. The model allows assessing the impact of health insurance choice on the choice of life insurance and the correlation between these two choices. The result suggests that health insurance choice positively affects the choice of life insurance and these two choices are positively correlated indicating complementary nature of these insurances in the basket of households’ risk minimising goods.     

A longitudinal micro-foundational investigation into ambidextrous practices in an international alliance context–A case of a biopharma EMNE

This paper explores the development of an ambidextrous context in a rapidly growing emerging market multinational (EMNE), thus unbundling cultural and structural complexities. We use the micro-foundational lens of ambidexterity to explore and identify different processes, structures and mechanisms that underpin the development of ambidextrous practices in the EMNE. We adopt a longitudinal case study design to trace the evolution of the EMNE, which during the initial phases of its existence focused on supplying industrial enzymes and refined its technical base. In subsequent years, it exploited its technical base to emerge as a full-fledged biopharmaceutical EMNE and adopted strategic partnerships with international companies to explore new knowledge. Our novel and rich research context also provides us with insights on how this EMNE exploited its technological knowledge, whilst utilizing strategic alliances to simultaneously engage in exploratory activities. Through the micro-foundational lens of ambidexterity, we uncover the critical role played by its leadership in addressing paradoxical tensions for simultaneously managing exploitation and exploration in an international strategic alliance context.