Regulative Distance,Cultural Distance,Host Country Risk,and the Choice of Subsidiary Activity: Evidence from Brazilian Multinationals

This study examines the relationship between regulative distance, cultural distance, and host country risk, as well as the choice of production or distribution activities by emerging country multinationals when establishing a subsidiary abroad. The study uses a sample of 280 subsidiaries of 133 Brazilian firms in 39 countries. Binary logistic regression was used to test the research hypotheses. The impact of regulative distance on the decision on subsidiary activity follows the predictions in the literature. However, findings on cultural distance and host country risk showed an inverted sign, suggesting that Brazilian firms tend to establish production facilities in countries with higher cultural distance and higher cultural risk.     

The signalling effect of eco-labels in modern coastal tourism

As the demand for environmentally sustainable tourism grows, eco-labels are becoming increasingly popular as a signal of environmental quality. However, the existence of a causal link between awarding a seaside eco-label and the increase in tourism flows is still under discussion in the literature. In this article, we gauge the signalling impact of a specific eco-label, the Blue Flag award, using detailed data on tourism flows to seaside Italian destinations during the period 2008–2012. We adopt a recent econometric modelling strategy – the synthetic control method – in shaping estimation results and testing the sensitivity and robustness of our results. We find that being awarded the Blue Flag increases the flow of domestic tourists for up to three seasons after assignment. However, we find no effect for the flow of international tourists. Investigating the mechanisms driving the results, we find that the award of a Blue Flag only positively affects the flow of domestic tourists when it is used as a driver of organisation, coordination and integrated management of the tourism supply.     

The Scenario of Lean Product Development in Brazilian Auto-industry

The purpose of this paper is to evaluate the impact of lean product development （LPD） in the Brazilian automotive sector. A mailed-questionnaire survey was used to examine 23 questions about LPD principles and practices. The target population for the study was Brazil＇s largest product development and design companies. The study identified that although the automobile sector is seen as a reference in the adoption of lean practices, there is still potential for improvement by establishing partnership relations with suppliers, and with those on the other points of the chain by identifying what provides value to clients. Set-based concurrent engineering is also a practice that needs to be better developed, as well as the value stream mapping tool to identify waste and activities that add value to the product development process. There has been no previous study of this nature in Brazil that characterizes the sector and highlights its importance in relation to the global scene, providing incentives to international investors. The value of the work is in the results that allow diagnosing the lean development practices that are most used in the automotive sector. Moreover, the survey questions can be applied in other economic sectors and at companies of other sizes. The study contributed to providing a systematic view of the product development process from the perspective of people, processes, and technology, and assists companies and academics manage change.     

The Adaptive Nature of the Neoliberal State and the State-led Neoliberalisation of Nature: Unpacking the Political Economy of Water in Lima,Peru

The neoliberalisation of water constitutes an emblematic illustration of the enduring encroachment of neoliberalism upon nature. Previous studies in Latin America have examined the transition from Keynesian water utilities to the neoliberal provisions of water services, but paid less attention to the adaptability of the state apparatus and the systematic adjustments required to sustain neoliberalising strategies. Addressing this gap in the literature, this paper examines two decades of change in the public water services of Lima, Peru, as one of the Latin American countries where neoliberal reforms have been more comprehensive and resilient. The analysis focuses on the water policies advanced by the national state and with the reconfiguration of the state apparatus as a result of extra-economic factors. The neoliberalisation of water may have improved the situation at the aggregate level, but inequalities, scarcities and vulnerabilities have been maintained and even reinforced. The achievements and failures of the neoliberalisation of water have ultimately depended on a range of politico-economic and socioecological interactions creatively mediated by the state apparatus. In the end, however, the neoliberal adjustments in the structure and operation of the state have replicated the double exploitation of nature and society that has long shaped Peruvian economic history.     

The antecedents of complaint behaviour for Brazilian and French consumers of services

Using a cross‐cultural approach, this study investigates customer satisfaction after a service failure and recovery experience, considering (i) the influence of perceived justice on satisfaction; (ii) the impact of satisfaction on consumer repurchasing and complaint intentions; (iii) the moderating role of the customer cultural orientation; and (iv) the relevance of contextual variables. Based on a survey of 298 consumers from Brazil and France, the results indicated that (i) distributive and interactional justice influenced satisfaction; (ii) satisfaction was a significant predictor of repurchase intentions; (iii) satisfaction influenced third‐party, private and voice responses; and (iv) the level of the customer relationship, the severity of the failure and the responsiveness of the firm were significant contextual variables. Moreover, the individual‐level analysis suggested that only power distance cultural orientation was a significant moderator.     

The effects of external and internal shocks on total factor productivity

This paper examines structural changes that occur in the total factor productivity (TFP) within countries. It is possible that some episodes of high economic growth or economic decline are associated with permanent productivity shocks; therefore, this research has two objectives. The first one is to estimate the structural changes present in TFP for a sample of 77 countries between 1950 (1960) and 2000. The second one is to identify possible explanations for breaks. Two sources were analyzed: (i) episodes in political and economic history; (ii) changes in international trade – a measure of absorption of technology. The results suggest that about one-third of the TFP time-series present at least one structural break. Downwards breaks are more common, indicating that after a break the TFP has much difficulty to recover. When we investigated factors related with structural change, developed countries presented a break near the first oil shock while the developing countries’ breaks are more spread along the decades. Thus, external strikes seem to be more relevant for developed countries. However, for each country and break date, it was possible to find an event close to the break date endogenously detected. Last, the relevance of international trade, measured by trade share percentage of GDP, seems to be limited to explain abrupt changes in TFP.     

The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior

Some firms in internationally oriented industries are internationalized while other comparable firms in the same sector or industry do not. Observing this difference in strategic behavior among small firms led us to consider how differences in CEOs’ attitudes, international orientation, and mindset might explain it. Therefore, this study adopts a cognitive perspective on management to explore the formation of the global mindset and the relationship between the global mindset of small-firm decision makers and their firms’ internationalization behavior. A theory-based conceptual model and measurement instrument are developed and—using structural equation modeling—the model is estimated based on empirical data from cross-sectional samples of small Norwegian and Portuguese firms. The study finds: (1) a strong causal relationship between the global mindset and firms’ internationalization behavior; (2) the combination of the findings and substantive theory indicates that the main driver of firms’ internationalization operates through the global mindset. This study also covers the factors that strongly influence the formation of a global mindset, especially the decision makers’ work experience and personal characteristics in terms of propensity to interdisciplinary collaboration, cognitive flexibility, and networking capability. Based on these findings, suggestions are made for policies that can foster the internationalization of small firms.     

Project Manager Profile Characterization in the Construction Sector in Bogotá, Colombia

This study aims to describe and evaluate the characteristics (educational background, training, skills, and experience) that make up the project manager profile in the construction sector in Bogotá, Colombia. This study is based on a project management literature review, expert interviews and surveys with a group of project managers in the construction sector, and comparisons between them. This evaluation aims to contribute to the development of a clearer de?nition of the project manager profile in the Colombian context. The identified project manager profile satisfies the essential desired characteristics with some particular weaknesses related to education and training in project management.     

Demand for reinsurance： Evidence from Australian insurers

Reinsurance is widely recognised as important in insurer risk and capital management. This paper examines the factors that determine insurer demand for reinsurance using Australian data. The Australian situation is interesting because of the tax imputation system and the prudential regulations that were in force during the period of the study. As far as the authors are aware, this is the first paper to empirically analyse the demand for reinsurance in Australia. A panel-data set （1996-2001） is used, which provides 543 observations. The authors provide a careful approach to econometric diagnostic testing and the choice of the most appropriate panel-data model and the authors show how failure to do so may generate misleading results. Based on a robust estimation procedure, the authors find strong evidence of a positive relation between variables related to company size and the demand for reinsurance in Australia. The impact of leverage, taxes, and return on investments are not statistically significant.     

Narrow Replication of Yogo (2004) Estimating the Elasticity of Intertemporal Substitution when Instruments are Weak

This narrow replication exercise of Yogo (Review of Economics and Statistics 2004; 86 (3): 797–810) finds results identical to the original paper, and provides results on overidentification tests for specifications that do not suffer from the weak instruments problem. The null hypothesis of the Sargan test is rejected in several cases, in particular for US and UK quarterly data. When other combinations of instruments are used the null of the Sargan test is rejected again in several cases. These rejections cast doubts on either instrument validity or model specification. Copyright © 2011 John Wiley & Sons, Ltd.