Stephen J. O'Connor,Vice President,University Relations and Property Staffing,Marriott International

ABSTRACT

Leader-member exchange (LMX) is a multidimensional construct seeking to identify the quality of the relationship between the leader and immediate subordinate. An instrument developed by Schrie-sheim, Neider, Scandura, and Tepper (1992) was utilized to determine the LMX score of 798 non-managerial employees in a casual restaurant chain. The dimensions of perceived contribution, affect, and loyalty were examined. Results demonstrate that LMX quality was high among the surveyed employees of a restaurant chain. The scores of LMX on age, gender and job tenure differed among employees while LMX scores on job status, education, and job type did not differ significantly.     

Non-binding sequential exchange between discounting agents

When exchange is sequential, and no binding agreements can be written, the agent acting first is exposed to the possibility that even if he honors the agreement his trading partner might not. Repeated interaction of this nature is modeled. Exchange will successfully occur when there are ample gains from trade for the second agent, implying that the first agent may be better off with less bargaining power. Thus, the first agent may want to bargain at less than his full ability in order to ensure that an otherwise unsuccessful transaction will successfully occur. Additionally, if the first agent can facilitate exchange by hiring an escrow service, he will do so when his bargaining advantage is sufficiently large.JEL subject classification C70, D40, L14     

An International Analysis of Earnings, Stock Prices and Bond Yields

Abstract:  This paper assesses the contemporaneous relationship between stock prices, earnings and long-term government bond yields for a large number of countries. The time period of our data spans several decades. In a time series framework our analysis first tests the presence of a long-term contemporaneous relationship between these three variables (the so-called Fed model). Next, we assess if government bond yields play a significant role in the long-run relationship. Our empirical results question the validity of the Fed model in the sense that we show that long-term market movements are mainly driven by the earnings yield and not the differential between bond and earnings yields. As such, our analysis validates the results of Asness (2003) for a much larger collection of countries while using a dynamic time series (cointegration) framework. Finally, we also show that changes in long-term government bond yields have a short-term impact on stock prices.     

Geographic dissemination of information

Urban companies are located near millions more potential investors and sophisticated money managers than non-urban companies. More investors are familiar with urban companies and have access to informal information about them. The stock of urban companies is also more liquid than the stock of non-urban companies. We hypothesize that these factors lead information to be spread from urban companies to other companies. Urban stock returns lead rural/small city stock returns even controlling for size, industry, and analyst coverage. Closer examination of the lead–lag relation reveals that urgent trades, which are likely to reflect short-lived information, are much more common for urban firms. Information appears to be uncovered through informal means more easily available to people physically near a company. We discuss the corporate finance implications of our findings.     

Relationships in the purchasing of business to business professional services: The role of personal relationships

There has been a shift from transactional to relational exchange and relationship marketing both in the business to business and professional services contexts. This paper seeks to explore the manner in which personal relationships affect the process and outcomes of purchasing of professional business services. Specifically, it focuses on the role of the professional service providers as boundary spanners in the formation of personal relationships. These personal relationships constitute the underlying basis of long-term relationships between the purchasing and provider organizations in such complex service settings. The findings of this study demonstrate that the manner in which the boundary spanners cultivate relationships support the concept of relationship specific tasks. It extends this conception by use of the data to outline the chronological process over time Understanding the roles, function, and ultimately importance, of these relationships facilitates the identification and development of appropriate strategies to manage these relationships.     

Concerning trust and information

Communication and the associated information exchanges are key drivers of the development of relationships and of the trust embedded within them. This paper considers the development of business relationships in terms of the continuing co-evolution of trust and information exchange and the issues associated with researching these processes. The interconnections of trust and information exchange are examined in a survey of business relationships involving information exchange (n = 355). Analysis of variance shows few, if any, of the aspects of the standard conceptualizations of information exchange are associated with increased levels of trust. It is information exchange norms that have the greatest (positive) association with the level of trust. These norms emerge as part of the long term co-production of the relationship itself. This has important managerial implications. We conclude there are few managerial actions involving managing communication that can “manufacture” trust and improve or develop relationships in the short term. The paper concludes with a discussion of alternative ways of envisaging communication and relationship management and the nature and future of research into the evolution of business relationships.     

Strategic responsiveness and Bowman's risk–return paradox

One of the most enduring puzzles in the strategy literature is the negative association between risk and return known as the Bowman paradox. This paper formalizes a model of strategic conduct based on the concept of strategic fit and the heterogeneity of firm strategic capabilities. This model is shown mathematically to yield the negative association of the Bowman paradox. Furthermore, the model makes several other testable predictions. To examine these predictions, simulated data from the model are compared with a large empirical study of 45 industries during 1991–2000. The predictions of the model are consistent with the empirical data. Copyright © 2007 John Wiley & Sons, Ltd.     

Supply Chain Citizenship: Investigating the Antecedents of Customer Interorganizational Citizenship Behaviors

Research has consistently established the strategic importance of supply chain collaboration. As a result, interfirm behavioral dynamics and relationships have emerged as key topics for both the academic and practitioner communities. This paper explores an interpersonal exchange tactic that is inherent to many collaborative initiatives—interorganizational citizenship behaviors (ICBs). The study specifically investigates why retail customers in business‐to‐business exchange relationships would exhibit ICBs, and explores how they assess and respond to the ICBs of suppliers. Findings of the study suggest that customers generally interpret and value the various types of ICBs differently, resulting in differential effects regarding the supply chain performance and relational implications of the behavior. These results not only inform managerial practice but also provide future research opportunities in the area of ICBs and the broader realm of interpersonal supply chain dynamics.     

The effect of social conflict on relationship loyalty in business markets

This study examines the impact of perceived social conflict on existing buyer-seller relationships. The results indicate that as the level of social conflict increases, perceptions about the loyalty of the relationship decrease. Perceived importance of the relationship had no impact on conflict or relationship loyalty. Ramifications of these findings for selling, sales management, and sales training are discussed.