Breakthrough innovation in international business: The impact of tech-innovation and market-innovation on performance

The literature suggests that the greater the perceived novelty of a firm’s products and markets, the greater the potential value to the user (Lepak et al., 2007). In this study we analyze the extent to which breakthrough innovation (both tech-innovation and market-innovation) has a positive impact on both economic and strategic export performance. Tech-innovation incorporates technological developments to improve customer benefits versus existing alternatives in the market. Our findings reveal that tech-innovation has a positive impact on the economic and strategic export performance of firms. This relationship becomes stronger when more human resources are available and the exporter becomes more oriented toward the importer. In less competitive markets, the positive relationship between tech-innovation and both types of export performance becomes even stronger.Market-innovation occurs when the product concept or benefits depart from serving existing or conventional markets. Market-innovation was found to be negatively associated with strategic export performance, as it requires major learning effort by importers. This suggests that to create value, exporters need to develop solutions jointly with importers. Overall, these findings suggest that value creation in terms of both tech-innovation and market-innovation needs to involve importers to achieve expectations, thereby leading to improvement in a firm’s short-term and long-term export performance.     

TOURISM,RESIDENTS’ WELFARE AND ECONOMIC CHOICE: A LITERATURE REVIEW

Over the past decades, tourism development has raised economics, social and environmental issues, particularly for host communities. This paper provides a wide ranging review of the existing literature aimed at underpinning empirical tourism research with a robust economic framework. So far, tourism research has mostly focused on either quantitative or qualitative approaches that lack a strong economic theoretical setting. Most of the literature on resident's welfare analysis concentrates on their attitudes and perceptions without taking explicitly into account their preferences about policy development based on a cost‐benefit assessment. Hence, the purpose of this paper is to draw connections within the current body of research to explain the relationship between residents and tourism activity, as well as consumer theory and economic choice. In this way, it is possible to construct a multidimensional framework that allows one to analyse residents’ welfare in a systematic and more comprehensive manner.     

Exports,investment and production growth: A dynamic heterogeneous firm model with learning and entry costs

We analyze a firm’s joint decision to export and invest using a model that incorporates the essential features of self-selection and learning-by-exporting theories of firm-level dynamics. We calibrate the model to 2002–2007 Chilean manufacturing plant data and simulate it under different assumptions, finding that neither self-selection nor learning-by-exporting alone can adequately explain the observed cross-sectional relationship between firm level exports and capital, favoring instead a model that allows both mechanisms to work in tandem.     

A geographically weighted approach to measuring efficiency in panel data: The case of US saving banks

This paper discusses a new approach to controlling for the environment when estimating efficiency. In response to the literature on the international comparison of bank efficiency, we draw the attention to a local dimension of comparison. By introducing geographical weights and estimating local frontiers for each US savings bank in the 2001–09 period, we find that the bank technical performance is higher for most banks in comparison to a fixed-effects approach. This result highlights the importance of taking into account the local environment and constraints while analyzing banks’ performance, so as not to consider the factors that are exogenous to these institutions as inefficiencies. Further analysis could improve the weighs calculation by employing other measures of interconnectedness besides geographical distance.     

Granger-causality in peripheral EMU public debt markets: A dynamic approach

Our research aims to analyze the possible existence of Granger-causal relationships in the behavior of public debt issued by peripheral member countries of the European Economic and Monetary Union (EMU), with special emphasis on the recent episodes of crisis triggered in the eurozone sovereign debt markets since 2009. With this goal in mind, we make use of a database of daily frequency of yields on 10-year government bonds issued by five EMU countries (Greece, Ireland, Italy, Portugal and Spain), covering the entire history of the EMU from its inception on 1 January 1999 until 31 December 2010. In the first step, we explore the pair-wise Granger-causal relationship between yields, both for the whole sample and for changing subsamples of the data, in order to capture the possible time-varying causal relationship. This approach allows us to detect episodes of significant increase in Granger-causality between yields on bonds issued by different countries. In the second step, we study the determinants of these episodes, analyzing the role played by different factors, paying special attention to instruments that capture the total national debt (domestic and foreign) in each country.     

Uneasy Alliances: Tradition and ICT Transformation in the Value Chain

Information and Communication Technology-enabled transformation in modern organizations continues to attract managerial and academic attention. One of the less explored aspects of this kind of initiative is the impact of organizational transformations on the culture of employees and the impact of the diverse workforce cultures on transformation initiatives. Set against the backdrop of acculturation theory, this paper examines the delicate balance between aggressively modernizing the competitive profile of the firm on one hand and nurturing the firm's various organizational cultures and historical traditions on the other. We contribute to the literature by presenting a case of a large, high-profile firm that experienced the problems of disaggregated cultures arising from small business amalgamation when attempting to transform its value chain operation.     

Trade-offs between consumer concerns: An application for pork supply chains

This paper studies, by means of customized conjoint analysis, the trade-offs that Dutch consumers make between multiple pork-production attributes, and their relation to consumer concerns. Results show that attributes that deal with animal welfare and food safety are on average perceived as the most important pork-production attributes. Not surprisingly, they are less important than the product attributes taste and price. Still, a number of market segments can be identified in which taste and price are relatively less important. Results support the implementation of differentiated chain designs with distinct and innovative decisions on trade-offs to be made, such as with respect to the housing of pigs and the use of genetic modification.