Do employees value strategic CSR? A tale of affective organizational commitment and its underlying mechanisms

Virtually all studies that focus on the relationship between CSR perceptions and employees’ organizational commitment have not taken into consideration the fit between social and environmental activities and a firm’s business‐unit strategy. This is essential to inquire because scholars have argued that when companies ingrain CSR activities into their strategy‐making process (i.e., in their vision, mission, and overall business model), this might send a more compelling message that resonates closer to workers’ personal standards, and actually enhance employee‐level outcomes. Nevertheless, there is no certainty “if” and “how” these evaluations could affect employees’ organizational commitment. To address this issue, we use cue consistency theory and social identity theory as overarching frameworks to develop a model where we conceptually link perceptions of strategy‐CSR fit with a particular type of organizational commitment: affective. In addition, we posit and test three mediators to understand the underlying psychological mechanisms of this relationship: perceived external prestige, organizational identification, and work meaningfulness. Through structural equation modeling, and using a heterogeneous final sample of 579 employees, we find compelling evidence to support the fact that strategy‐CSR fit enhances employees’ affective organizational commitment through the proposed mediators. Academic contributions and practical implications are then discussed.     

The need for new theoretical conceptualizations on National Systems of Innovation,based on the experience of Latin America

ABSTRACT

The peripheral condition of Latin America has changed but persists in spite of a long decade of favorable economic conditions and heterodox policies. A renewed conceptualization of underdevelopment and of Innovation Systems is needed. Here it is connected with Sustainable Human Development, with the dynamics of power and with the transformative change framework. The ‘triangle paper’ is a main guide. Special attention is given to innovation heuristics forged in the South. If combined with advanced knowledge and high qualifications, they may contribute worldwide to the urgent transitions to less inequality and higher sustainability. Some elements for a related research agenda are sketched.     

A Selective Review of the Economic Analysis of Animal Health Management

Economists and veterinarians use similar approaches to analyse animal health threats, but veterinarians are concerned primarily with providing practical guidelines to peers and/or policy‐makers, while economists focus more on understanding the benefits to society as a whole and often provide only general guidelines to policy‐makers and little specific direction to practicing veterinarians. Despite the benefits of working together, differences in perspective and analytical approach often cause economists and veterinarians to struggle in dialogue and to lose some of the mutual gains that could be achieved through collaboration. This article discusses the use of economics in animal health management, identifies several useful literature reviews, and analyses a number of recent studies to explore the advantages and disadvantages of different conceptual and methodological approaches.     

The impact of commodity price shocks among regional economies of a developing country

Volatile commodity prices have become commonplace in the world economy. Although is widely accepted that commodity‐rich countries are affected by this phenomenon, information about how commodity price shocks impacts their regional economies is scarce. This work analyses how shocks in copper prices impact the economies of the major copper‐producing regions in a developing country, such as Chile. To achieve this goal, a two‐step method is implemented. First, we estimate long‐term copper prices using the Wets and Rios approach (2015) and these estimates are then contrasted with those forecast by the Chilean public advisory committee. Second, a general equilibrium model is implemented to simulate the effects of both expansive and restrictive copper price cycles within major producing regions in Chile. Our results show that the proposed approach yields more homogeneous price projections than those made by the Chilean Government, which, in turn, are very close to variations in response to negative shocks. The price simulations confirm that price cycles affect the savings of government and business, which directly dampens regional production, mainly via investment, capital mobilisation and diversification of production. Because of this, fiscal revenues generated by copper sales act as a trade cycle term multiplier in regional economies. Overall, within copper‐producing regions, we suggest implementing long‐term policies to improve profit distribution efficiency.     

Determinants of early internationalization of new firms: the case of Chile

The aim of this article is to analyze the factors related to the early internationalization of new firms in Chile. We grouped the internationalization driver factors into three categories: individual, organizational, and firm-environmental factors. Using a sample of 374 entrepreneurs from Global Entrepreneurship Monitor data and performing a logistic regression model, we found that owner-manager’ high educational levels, opportunity-oriented motivation, new technology use, and activities related to extractive sectors (e.g., farming, forestry, fishing, and mining) contribute to a higher likelihood of early firm internationalizing. The implications for theory and practice are discussed.     

The Financialization of A Social Housing Provider

Why does a social housing provider bet on interest rate fluctuations? This article presents a case study of the financialization of both housing and the state. Social housing in the Netherlands is provided by non‐profit housing associations that have since 1989 been set apart from the state. Many associations started developing housing for profit, borrowing on global capital markets or buying derivatives. Whereas other semi‐public institutions moved into the world of finance due to financial constraints, housing associations did so to capitalize on the possibilities offered by their asset‐rich portfolios. Vestia, the largest of them all, is an extreme––but not exceptional––case of what can happen when public goals are left to be realized by inadequately supervised and poorly managed private organizations. As a result of gambling on derivatives, Vestia had to be bailed out to the tune of over 2 billion euros. To recoup the losses, housing was sold off and rents were raised. Almost half of Dutch housing associations used derivatives, although most refrained from using them purely speculatively. The changes in the housing sector that led to its financialization cannot be separated from the wider financialization of the state.     

Modeling different penetration rates of eco-driving in urban areas: Impacts on traffic flow and emissions

Climate change and air quality are two main environmental challenges in metropolitan areas. As road transportation is one of the main contributors, public administrations are facing these problems with a number of complementary policy measures: shift to cleaner modes, new fuels and vehicle technologies, demand management, and the use of information and communication technologies (ICT) applied to transportation. Eco-driving is one of the measures that present large fuel savings at individual level. Although these savings are well documented in the literature, few studies focus on how eco-drivers driving patterns affect the surrounding vehicles and the traffic in general, and more particularly what would be the impact when the number of eco-drivers grows. Using a traffic microsimulation tool, four models in urban context have been built, corresponding to the different types of urban roads. Both the base-case and the parameters setting to simulate eco-driving have been calibrated with real data collected through floating vehicles performing the trips with normal and eco behaviors. In total, 72 scenarios were simulated, varying the type of road, traffic demand, and the percentage of eco-drivers. Then, the CO₂ and NO_x emissions have been estimated through a microscopic emission model. The results show that in scenarios with low or medium demand levels and increasing number of eco-drivers, the effects are positive in terms of emissions. On the other side, with high percentage of eco-drivers and high traffic demand, the emissions rise. Higher headways and smooth acceleration and decelerations increase congestion, producing higher emissions globally.     

Is Family Control Relevant for Corporate Cash Holding Policy?

This empirical research examines the effect of family control on firms’ cash holding policy. Using a sample of Western European firms, we confirm the precautionary motive for holding cash as family‐controlled firms’ desire to perpetuate the family legacy for future generations motivates them to accumulate more cash than their non‐family counterparts. We also show that, given family‐controlled firms’ long‐term perspective, they focus on cash flow volatility rather than cash flow level. Finally, the relation between financing constraints and cash holdings is not homogeneous: financially constrained family‐controlled firms hold higher levels of cash than financially constrained non‐family firms. Overall, these results suggest that family firms’ cash holding policy is the result not of a specific financial outcome but rather on the strategic objectives of the firm.     

The Reaction of Coffee Futures Price Volatility to Crop Reports

Analysis of prices and volatility plays an important role in coffee market, especially for developing countries, whose small producers and economies rely heavily on income generated by coffee trade. This study explores the impact of coffee crop reports on price volatility for coffee futures contracts during 2004–2014. Overall, results indicate that crop reports generally affect price volatility. The impact is particularly stronger when they provide information following the flowering periods in Colombia, Brazil, and Vietnam, world’s major producers.