Learning patterns in early stage R&D projects: empirical evidence from the fibre raw material technology project in the Netherlands

Past research has reported that learning processes in early stage R&D are either chaotic, or absent. We challenge this finding by elaborating Van de Ven et al.’s trial‐and‐error learning model and explore an alternative conceptualization. We explored the combinations of positive and negative outcomes and action course continuation and modification. We use data gathered in an R&D setting of a 4‐years pre‐competitive knowledge generation project in the Dutch paper and board industry. Whereas the Van de Ven and Polley (1992) approach applied on our data also would lead us to conclude that ‘no learning’ would happen, our decomposed model identified three distinct learning patterns: (1) a virtuous pattern of positive outcomes resulting in continuations of action courses; (2) a vacuous pattern of negative outcomes resulting in modifications of action courses; and (3) a verification pattern of positive outcomes resulting in modifications of action courses. We observed the virtuous and verification patterns during the first 2 years and virtuous and vacuous learning in the second 2 years. These results might be useful for R&D managers since they provide insight into how an early stage R&D project can develop and where managers might intervene and adjust action courses.     

Foreign competition and the durability of US firm investments

How does the exposure to product market competition affect the investment horizon of firms? We study if firms have an incentive to shift investments toward more short‐term assets when exposed to tougher competition. Based on a stylized firm investment model, we derive a within‐firm estimator using variation across investments with different durabilities. Exploiting the Chinese World Trade Organization (WTO) accession, we estimate the effects of product market competition on the composition of US firm investments. Firms that experienced tougher competition shifted their expenditures toward investments with a shorter durability. This effect is larger for firms with lower total factor productivity.     

Motivators and barriers to sustainable food consumption: Qualitative inquiry about organic food consumers in a developing nation

The present research attempts to qualitatively explore the motivators and barriers of organic food consumption in the Indian context. The data were collected using semistructured in‐depth interviews and analyzed using grounded theory. The theoretical sampling technique was used to interview 34 consumers who have purchased organic food in the past. The findings reported health consciousness, environmental consciousness, social identity, consumer ethnocentrism, and concern for farmers as the factors that motivate organic food purchase among consumers. The factors such as high prices of organic food, unavailability, trust issues, and limited marketing communications from the firms were identified as major barriers to organic food purchase and consumption. The study is one of the initial attempts to qualitatively explore the consumers' motivation for organic food consumption in the Indian context. The findings will help policymakers to devise suitable strategies so that they can effectively target the organic food choices by understanding the motivators/barriers, and promote the sustainable lifestyle in the society, as food consumption plays a crucial role in achieving environmental sustainability.     

Unbiased estimation of expected return using CAPM

Estimation of expected return is required for many financial decisions. For example, an estimate for cost of capital is required for capital budgeting and cost of equity estimates are needed for performance evaluation based on measures such as EVA. Estimates for expected return are often based on the Capital Asset Pricing Model (CAPM), which states that expected excess return (expected return minus the risk-free rate) is equal to the asset's sensitivity to the world market portfolio (β) times the risk premium on the “world market portfolio” (the market risk premium). Since the world market portfolio, by definition, contains all assets in the world, it is not observable. As a result, an estimate for expected return is commonly obtained by taking an estimate for β based on some index (as a proxy for the world market portfolio) and an estimate for the market risk premium based on a potentially different index and multiplying them together. In this paper, it is shown that this results in a biased estimate for expected return. This is undesirable since biased estimates lead to misallocation of funds and biased performance measures. It is also shown in this paper that the straightforward procedure suggested by Fama and MacBeth [J. Financ. Econ. 1 (1974) 43] results in an unbiased estimate for expected return. Further from the analysis done, it follows that, for an unbiased estimate, it does not matter what proxy is used, as long as it is used correctly an unbiased estimate for expected return results.     

Dynamic linkages among equity markets in the Middle East and North African countries

The relaxation of security laws and regulations in emerging markets in the Middle East and North Africa (MENA) provides abundant opportunities for foreign investors. These markets exhibit high-expected returns and substantial volatility. In this paper, we investigate the lead/lag relationship between the MENA countries and regions. We find no market causality or spillover from one country to another in the North Africa region. Our results for the Levant region reveal that there are linkages between stock markets in this region. The results for the Gulf Cooperation Council (GCC) region show that there is more interaction and linkage in the GCC region than in the North Africa and Levant regions. An unexpected result is that UAE's stock market leads all the markets in this region. Finally, we investigate linkages among the three regions. We find that GCC influences the other two regions.     

A note on measuring political participation in comparative research

This article presents an application of Prezeworski and Teune's so-called “identity-equivalence method” to a large set of indicators of political participation. By relaxing commonly held assumptions about necessary distinctions among types of participation, it is found that the distinction between “conventional” and “unconventional” modes of participation is unnecessary, while the distinction between “government” and “nongovernment” has some merit. The findings also lend further support to the claims of Prezeworski and Teune that the identity-equivalence method is preferable to the identical indicator method.     

On Conditional Density Estimation

With the aim of mitigating the possible problem of negativity in the estimation of the conditional density function, we introduce a so-called re-weighted Nadaraya-Watson (RNW) estimator. The proposed RNW estimator is constructed by a slight modification of the well-known Nadaraya-Watson smoother. With a detailed asymptotic analysis, we demonstrate that the RNW smoother preserves the superior large-sample bias property of the local linear smoother of the conditional density recently proposed in the literature. As a matter of independent statistical interest, the limit distribution of the RNW estimator is also derived.     

Cognitive processing models in performance appraisal: evidence from the Malaysian education system

The effectiveness of the decision‐making process in appraisal has been of long‐standing interest. This paper reports the results of research exploring the extent to which those undertaking appraisals apply systematic processes to their decision‐making, represented in terms of the cognitive processing models applied by appraisers. Results of 22 cognitive mapping interviews exploring appraisal practice, undertaken with appraisers in the Malaysian education system, are described. The resultant cognitive maps have been explored for what they tell us about the cognitive processing models underlying appraisers' decision‐making. Results suggest that the practice of appraisal evidenced in interviews demonstrates the presence of cognitive processing that reflects theoretical cognitive processing models, although some differences are observed between less experienced and experienced appraisers' models. Implications from the interview findings for the practice of appraisal are identified.     

Social Scientific Explanations?

Generally valid scientific explanations of observable social phenomena are still hardly available. By applying philosophical insights generated by Quine and derived from semiotics to social research methodology three kinds of context dependencies accompanying theory formation within social science are identified. The third context dependency is mostly not attended in theory formation about social phenomena thereby producing a ``connotation fallacy', which leaves almost all social theories undetermined and fallible. These context dependencies should be taken into account in the research design and be tested for using statistical criteria comprising a new methodology presented in this article.