Theory-Driven Choice Models

We explore issues in theory-driven choice modeling by focusing on partial-equilibrium models of dynamic structural demand with forward-looking decision-makers, full equilibrium models that integrate the supply side, integration of bounded rationality in dynamic structural models of choice and public policy implications of these models.     

Rethinking the new corporate philanthropy

More than ever, corporations are expected to practice “citizenship” by engaging in various community or social philanthropy programs. These corporate social responsibility (CSR) programs have broad appeal among business scholars, business executives, and the public. After first setting some theoretical boundaries for CSR as it relates to the legal and strategic management fields, the authors examine how CSR (both its implementation and expectations) can lead to unintended results, compromising the distinct roles business and government play in market-driven, democratic systems.     

The effect of multi-purpose shopping on pricing and location strategy for grocery stores

Though it is a well-accepted fact that consumers indulge in multi-purpose shopping, most previous models of store choice assume that grocery shopping trips are single-purpose trips. This paper provides the first empirical analysis of multi-purpose shopping using data on actual shopping trips. A latent class factor analytic logit model is proposed, which provides a representation of the market structure of grocery store competition, while integrating; multi-purpose shopping, retail pricing format and location strategy. We conclude that incorporating multi-purpose shopping trips provides a better understanding of the competitive market structure, and discuss the managerial implications for the selection of marketing strategies.     

Business Angel Networks and the Development of the Informal Venture Capital Market in the U.K.: Is There Still a Role for the Public Sector

Business angel networks (BANs) provide a channel of communication between private venture capital investors (business angels) and entrepreneurs seeking risk capital. Most operate locally on a not-for-profit basis with their costs underwritten by the public sector. However, the recent establishment of BANs by private sector organisations in the U.K. has led to a questioning of the government's continuing role in the financing of BANs. This paper demonstrates that there are significant differences between public sector and other not-for-profit BANs and private sector, commercially-oriented BANs in terms of the investments that they facilitate. Private sector BANs are primarily involved with larger, later stage deals whereas investments made through not-for-profit BANs are generally smaller, involve start-ups and other early stage businesses and are local. The emergence of private sector BANs has therefore not eliminated the need for public sector support for locally-oriented networks.     

Has the productivity of retail food stores really declined?

Despite the fact that other factors of production have been substituted for labor, and that scanner technology has come into widespread use, the BLS index of labor productivity for retail food stores has been declining for sometime. The purpose of this paper is to study this puzzling decline in measured productivity. The results indicate that the decline in the BLS index is due to changes in services offered by retail food stores that are not incorporated into the index, and that productivity increased if these services are accounted for.     

Corporate conscience and foreign divestment decisions

The rational-agent frame of reference for the analysis of corporate strategic decision-making may be expanded to a moral-agent perspective where decision content is seen as comprising both commercial and ethical factors. Relevant factors may then be classified on the basis of the ethical decision principles to which they relate: rational-egoism, self-referential altruism or deontology. This approach is then applied to the problem of decision support for strategic divestment by MNCs. Alan E. Singer is Senior Lecturer in Business Policy and Decision Sciences at the University of Canterbury, New Zealand. He has written several articles which have been published in journals like Accountancy, Decision Sciences, Journal of Business Ethics and Management Research News.Nicholas van der Walt is Lecturer at the University of Canterbury.     

The Influence of Entrepreneurial Risk Assessment on Venture Launch or Growth Decisions

Entrepreneurs are thought to engage in riskier behavior than nonentrepreneurs, yet little empirical evidence supports that intuitively appealing notion. We argue instead that differences in information, not risk aversion, may explain the decision to launch or grow a venture. We separately test risk taking propensity and risk assessment. We hypothesize that entrepreneurs will not differ from nonentrepreneurs on risk taking propensity. Additionally, we propose and test a model of risk assessment. The sample size for this exploratory study is n=53 with 30 respondents declaring themselves as entrepreneurs and 23 declaring themselves as nonentrepreneurs. The study’s design is a simulation. Each respondent is provided with data on a potential acquisition that would result in either the launch of a new venture or significant growth for an existing firm. Consistent with the hypotheses, the results show no difference between entrepreneurs and nonentrepreneurs on the risk taking measure. We also find that we can predict entrepreneurial behavior based on risk assessment. We close with a discussion of limitations and directions for future research.     

The combined effects of dependence and relationalism on the use of influence in marketing distribution systems

This study uses data from the automotive replacement tire industry to test the proposition that dependence and relationship structure interact to determine frequency of influence-strategy use in distribution systems. The findings support the expectation that dependence is positively associated with recommendations, information exchanges, promises, requests, legal pleas, and threats. However, increases in dealer dependence increase the use of requests, legal pleas, and threats only in systems characterized by trivial levels of relationalism.The authors would like to express their gratitude to John Burnett, Robert Dwyer, Jule Gassenheimer, and Allen Wilhite for their helpful comments on this project.     

Housing wealth,business creation and dissolution,in the U.K. regions

A number of recent studies have suggested that access to collateral in the form of housing assets may be an important factor in the process of new firm formation. In particular, it has been suggested that variations in housing wealth may be able to account for a substantial proportion of the variation in rates of business creation within and between the U.K. regions. Re-examining this issue, the paper finds that once appropriate allowance is made for the presence of dynamics in the formation process, the evidence for a positive relationship between housing wealth and regional rates of new business creation disappears. However, there is evidence in favour of the proposition that access to external collateral in this form may help established firms to stay in business.I am grateful to David Keeble and Peter Johnson for their helpful and timely comments. The usual disclaimer applies.