European Periphery Crises,International Financial Markets,and Democracy

This article analyzes the origin and causes of the recent economic and financial crises, mainly for the countries located in the periphery of the European Union (EU), as well as their evolution and transformation into social, political, and institutional crises. After explaining the differential impact of the crises on EU economies, we analyze how the economic policies developed thus far not only are unable to resolve the current crisis pattern but also actually entail a risk to the present democratic models by transferring the legitimate control over governments from citizens and democratic parliaments to unelected, nonrepresentative international financial markets.     

Multi‐period hedge ratios for a multi‐asset portfolio when accounting for returns co‐movement

This study presents a model to select the optimal hedge ratios of a portfolio composed of an arbitrary number of commodities. In particular, returns dependency and heterogeneous investment horizons are accounted for by copulas and wavelets, respectively. A portfolio of London Metal Exchange metals is analyzed for the period July 1993–December 2005, and it is concluded that neglecting cross correlations leads to biased estimates of the optimal hedge ratios and the degree of hedge effectiveness. Furthermore, when compared with a multivariate‐GARCH specification, our methodology yields higher hedge effectiveness for the raw returns and their short‐term components. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:182–207, 2008     

Environmental Respect: Ethics or Simply Business? A Study in the Small and Medium Enterprise (SME) Context

In recent years there have been ever-growing concerns regarding environmental decline, causing some companies to focus on the implementation of environmentally friendly supply, production and distribution systems. Such concern may stem either from the set of beliefs and values of the company’s management or from certain pressure exerted by the market – consumers and institutions – in the belief that an environmentally respectful management policy will contribute to the transmission of a positive image of the company and its products. Sometimes, however, ethics and market rules are not enough to deal with this situation and specific laws must be considered. This is the case when companies base their activity on the ‹ethics of self-interest’ concentrating their efforts on projecting an adequate image – e.g. environmental respect – rather than fundamentally behaving in environmentally respectful ways. This article, taking as reference the SME context, discusses the reasons for implementing environmentally friendly systems. Both ethics and business seem to be relevant and, therefore, a certain balance between market and interventionism seems to be necessary.     

The role of coworker support in the relationship between moral efficacy and voice behavior: The case of hospitality students in Ecuador

ABSTRACT

This article explores the relationships among employee moral efficacy, coworker emotional support, coworker instrumental support, and employee voice behavior regarding abusive supervision in the hospitality industry in Ecuador: a high power distance culture. The results indicate that employees’ moral efficacy predicted their voice behavior with regards to abusive supervision and that coworker emotional support strengthened this relation. However, an interaction effect between moral efficacy and coworker instrumental support on voice behavior was not found. This study provides a theoretical extension of the voice literature by introducing the roles of moral efficacy and coworker support, and has practical implications for the hospitality workplace.     

Understanding the Innovation Behavior of Family Firms

This paper examines innovation behavior in family firms, analyzing their innovation efforts, sources, and results. Its underlying premise is that innovation behavior depends on the firm's resource endowment and the level of risk inherent in the decision to innovate, factors that make family involvement an influential characteristic in innovation processes. Using a large sample of Spanish firms, the findings show that family firms perform fewer innovation efforts and are less inclined to turn to external sources of innovation—such as technological collaboration—than nonfamily firms. Finally, family firms are more likely to achieve incremental innovations than radical innovations.     

Sources and management of tension in co-opetition case evidence from telecommunications satellites manufacturing in Europe

Co-opetition is filled with tension due to inherent contradictory and opposing forces. In this research, we develop a multi-level conceptual framework that helps to understand key drivers of tension in co-opetition and key approaches to managing the tension. We combine literature-based conceptual arguments and insights from in-depth study of one exemplar case of co-opetition between Astrium (EADS group) and Thales Alenia Space (Thales group) within the sector of telecommunications satellites manufacturing in Europe. Our findings highlight multiple sources of co-opetitive tension at different levels. Further, our research shows that a mixed organization based on both separation and integration of competition and cooperation is helpful to understand and effectively manage tension in co-opetition. This paper offers case-based rich insights on the sources and management of tension and has important implications for the design and conduct of future empirical research.     

Technological opportunism effects on IT adoption,intra-firm diffusion and performance: Evidence from the U.S. and Spain

The paper pursues a joint analysis of the direct influence of the level of a firm's technology opportunism capability on performance and on the adoption and intra-firm diffusion of Internet-based technologies. The study here examines the mediating effect that intra-firm diffusion exerts on the relationship between capabilities and performance. This study uses the results from a survey of 100 Spanish and 109 American franchise firms. Results indicate that the firm's level technological opportunism influences the adoption and intra-firm diffusion of technology and also has a positive impact on performance. While intra-firm diffusion is a driver of performance, adoption has no influence. Finally the indirect impact of technological opportunism on performance differs across countries. While for American firms, the integration of technologies into activities that related to communication with partners has a positive impact on performance; Spanish managers should focus on the integration of these technologies into back-end functionalities.     

Optimal Border Policies for Invasive Species Under Asymmetric Information

This paper analyzes the problem faced by a border protection agency if endogenous exporter abatement activities affect invasive species risk, allowing for unobservable differences in abatement cost. We show how the optimal inspection/penalty regime differs from the symmetric information case. Departing from previous literature, we allow for technical assistance, a policy instrument specifically permitted and commonly employed under Article 9 of the World Trade Organization Sanitary and Phytosanitary Agreement. We find the information asymmetry can make it optimal for the importing country to provide technical assistance grants for exporter risk abatement, even if it would otherwise be inefficient. Further, we show that fungibility of technical assistance with inputs in other sectors of the exporting economy affects the qualitative nature of optimal policy. If technical assistance has no outside value in the exporter’s country, optimal policy is characterized by a menu of contracts balancing higher tariffs with lower penalties for being caught with an invasive. If technical assistance can be used in other sectors of the exporter’s economy, it can introduce countervailing incentives making a uniform tariff/penalty combination optimal.     

Measuring the Effects of Film and Television on Tourism to Screen Locations: A Theoretical and Empirical Perspective

It is generally believed that consumption of film and television products can induce tourism to destinations featured. We review the literature relating to this, examine it from the perspective of mass communications theory and develop a general causal model to measure the influence of screen products on visitor numbers. The model is quantified by way of a survey at two popular UK destinations. Our conclusions are that the contributions of screen products to visitor numbers are fractional, diffuse and substantial. We further find that the magnitude of the effect differs greatly between destinations and that this is related to background causes independent of screen effects.