Changing Patterns of Industrial Relations in Taiwan

This article examines changing patterns of industrial relations (IR) in Taiwan. Although trade unions have become more autonomous since the lifting of martial law in the mid-1980s, trends such as the privatization of state-owned enterprises, industrial restructuring, flexible employment practices, and importation of foreign workers hinder union development. The millennium may represent a turning point for workers and their organizations because the Democratic Progressive Party (DPP) replaced the Kuomintang (KMT) as the ruling party. This may further union independence and power because the DPP tends to be a more pro-labor party. However, balancing the interests of workers and employers will still be a challenge for the DPP, particularly given employer opposition to many of the DPP's labor policies.     

Arrogance can be a virtue: Overconfidence,information acquisition,and market efficiency

In behavioral finance, overconfidence has been established as a prevalent psychological bias, which can make markets less efficient by creating mispricing in the form of excess volatility and return predictability. In this paper, we develop a model in which overconfidence causes investors to overinvest in information acquisition when this information could improve market efficiency by driving prices closer to true values. We study the impact of overconfidence on mispricing and information acquisition, comparing their net effect on prices. We derive several novel implications. First, overconfidence generally improves market pricing provided the level of overconfidence is not too high. Pricing can also improve even when overconfidence is arbitrarily high, depending on the amount of private information acquired relative to publicly available information.     

Knowledge Stocks and Information Flows in New Product Development*

Although firms increasingly invest in systems (e.g. ISO, knowledge centres, IT systems) for utilizing stored knowledge and acquiring market information during new product development, few manage to benefit from these investments. To explore this issue, we suggest that firms rely on two distinct types of knowledge stocks– procedural and declarative memory – that affect new product short‐term financial performance and creativity in distinct ways. Additionally, we suggest that internal or external information flows can have distinct moderating impact on the memory types–product outcomes relationship. Our empirical study of product development activities indicates that there is an inverted U‐shaped relationship between procedural memory and product outcomes as well as a positive relationship between declarative memory and financial performance. Also procedural and declarative memory may work in a complementary fashion enhancing both outcomes. Finally, procedural memory is found to reduce the value of internal or external information flows for product creativity. These findings have important implications for the organizational knowledge, capabilities, and product development literatures as well as for practice and they open ways for future research.     

Research joint venture with technology transfer

Kamien et al. (1992) show that an industry-wide research joint venture (RJV), compared to the case without any RJV, does not lead to better technological development or a higher consumer surplus. In contrast, we show that every non-industry-wide RJV leads to strict improvements in both measures and it also results in higher production efficiency. Furthermore, when technology transfer is possible after making R&D investment, our results continue to hold, and when research efficiency is low, these improvements are further magnified. Governments should encourage innovation through independent collaboration with technology transfer as an alternative to establishing industry-wide research consortiums.     

Perceptions,attitudes, and behaviors toward sustainable fashion: Application of Q and Q‐R methodologies

While sustainability has increasingly attracted the attention of scholars and practitioners, consumer attitudes and behaviors toward sustainable consumption have not yet been elucidated. The decision‐making process around sustainable consumption involves diverse and complex considerations including some forms of compromise (tradeoff). In addition, sustainability is a broad and subjective concept, and is not a primary attribute of a product Impacting the choices of consumers. Therefore, it is necessary to apply new methods to overcome the limitations of conventional evidence‐based research. This research uses Q and Q‐R methodologies to identify consumers' subjective viewpoints toward sustainable fashion and to present socio‐demographic differences across segments of sustainable fashion consumers. Study 1 uses Q methodology to interview 26 consumers and to identify four types of decision makers: doubtful egoists, single‐minded bystanders, wavering intellects, and opinion leaders. Study 2 uses Q‐R methodology to verify the psychological and socio‐demographic variables among 328 consumers. The research provides useful suggestions for selecting and approaching target consumer segments in the sustainable fashion industry.     

Non-Asian Tourists' preferred attributes: a choice experiment

This study aims to identify non-Asian tourists' preferred attributes for a one-day Seoul tour package by examining theoretical frameworks of values related to tourists' heterogeneity of choice behaviors. The study applies a choice experiment (CE) to capture the systematic heterogeneity of preferences in a non-Asian tourist group and examines whether different individuals' value orientations relate to heterogeneous preferences regarding the tour packages. The CE derives the preferences as a form of marginal willingness to pay (MWTP), a pecuniary value for additional units of the attributes. Historical/cultural destinations displayed the highest MWTP value of all tour sites in Seoul, which was estimated to be $74.32. The results also show that a respondent who emphasizes “money and enjoyment” and “authenticity” values is more likely to choose a tour package that includes more opportunities to visit shopping and historical/cultural sites, respectively.     

Forming a firm innovation strategy through commitment-based human resource management

In this paper, we argue that commitment-based human resource management (CHRM) enables firms to form an innovation strategy, enriching the literature focused on the subordinate role of HRM in a given strategy. In CHRM, employees are hired based on their knowledge, their expertise is developed, and they are empowered to take reasonable risks in the interest of long-term outcomes. These HRM policies, which mediated by innovative work practices, enable firms to realize their strategic intention to engage in innovation. Analyses of time-lagged data from 445 firms support our hypotheses, and implications are discussed.     

Evaluating spatial and temporal variation in agricultural output elasticities in Turkey

This study evaluates spatial variation in the relationship between agricultural output and input use across Turkey. The potential impact of the national agricultural policy reform introduced in 2001 on the spatial variation in agricultural output elasticities across the country was explored. By applying a spatial production function to the province‐level data in 2000 and 2007, spatial heterogeneity in the variance of provincial total factor productivity and the input factor‐output elasticities was identified across the country. Results show that the disparities in agricultural activities and geographic conditions affected return from input factors. Empirical findings from a spatial spillover model also suggest that changes in the input factor‐output elasticities varied significantly across Turkey between 2000 and 2007, after the policy reform. Results suggest that future policy reform that recognizes regional comparative advantage through understanding the geographic heterogeneity of the agricultural sector is important for enhancing Turkey's agricultural output.     

Direct and indirect effects of FDI in emerging European markets: A survey and meta-analysis

We review a large body of literature dealing with the effects of Foreign Direct Investment (FDI) on economies during their transformation from a command economic system toward a market system. We report the results of a meta-analysis based on the literature on externalities from FDI. The studies on emerging European markets covered in our survey report direct and indirect FDI effects weakening over time, similarly as in other FDI destination countries. This is imputable to a publication bias that is detected and to the fact that more sophisticated methods and more controls can be used once a sufficient time span is available. Panel studies are likely to find relatively lower spillover effects. The choice of the research design (definition of firm performance and foreign firm presence) matters. More specific to the sampled studies is the role played by forward and backward spillovers which dominate other channels in driving FDI externalities.