The inflation and inflation uncertainty relationship for Turkey: a dynamic framework

This article assesses the interaction between inflation and inflation uncertainty in a dynamic framework for Turkey by using monthly data for the time period 1984–2009. The bulk of previous studies investigating the link between inflation and inflation uncertainty employ Autoregressive Conditional Heteroskedasticity (ARCH)-type models, which consider inflation uncertainty as a predetermined function of innovations to inflation specification. The stochastic volatility in mean (SVM) models that we use allow for gathering innovations to inflation uncertainty and assess the effect of inflation volatility shocks on inflation over time. When we assess the interaction between inflation and its volatility, the empirical findings indicate that response of inflation to inflation volatility is positive and statistically significant. However, the response of inflation volatility to inflation is negative but not statistically significant.     

Credit growth,current account and financial depth

Exploring the determinants and dynamics of the current account balance is one of the priorities of academic literature and policy circles. Although the effects of structural variables are deeply analysed, a lesser attention has been paid to the impact of financial variables. Drawing on standard empirical current account models and with a large sample of industrial and developing countries, we report a significant deterioration in the current account balance in case of an increase in the credit growth. Moreover, we find that this link is substantially stronger for the developing ones motivating a closer examination. Therefore, we further advance our analysis and show that credit growth causes a stronger impact on the current account balance for lower levels of financial depth. In other words, at the early stages of financial development, acceleration in the credit growth might cause a larger deterioration in the current account balance; thus, it might be suggested that monetary policy and macro-prudential measures aimed at preventing financial excess might be more effective to reduce the external imbalances at the early stages of financial deepening.     

Tie the knot: building stronger consumers’ attachment toward a brand

Extant research has promoted the importance and seeking to establish a deeper understanding of brand loyalty. However, it still remains elusive and uncertain. A study with more than 1,500 CEOs worldwide believes that creating a bond with consumers and continuing to learn how to strengthen the bond are essential for realizing strategies and delivering on shareholder expectations. Not surprisingly, firms and researchers are seeking ways to build a stronger connection with consumers, because such attachment acts as a key requisite in a firm’s success. Consequently, understanding how marketers can intensify the attachment is important. This article offers a framework for building stronger consumers’ attachment and testing it based on a survey of 432 participants. Four factors are deemed to be important: ideal self-congruence, sensory experience, responsiveness, and CSR beliefs. Attachment influences loyalty and resilience to negative information. Additionally, attachment fully mediates ideal self-congruence and responsiveness to loyalty, as well as ideal self-congruence and sensory experience to resilience to negative information.     

Holdup,Knowledge Transferability,and Productivity: Theory and Evidence from Knowledge Workers*

This article studies how firing costs affect the productivity of knowledge workers. We develop a holdup model in which workers are essential to knowledge transfer between firms and show that if the worker's knowledge stock is sufficiently transferable to competing firms, an increase in firing costs inhibits the firm's ability to hold up the worker and thereby leads to higher effort. We consider the passage of the wrongful discharge laws in the US as an exogenous increase in firing costs and test our theory using data on patents filed at the United States Patent and Trademark Office (USPTO).     

The effect of inflation uncertainty on inflation: Stochastic volatility in mean model within a dynamic framework

This paper investigates the effect of inflation uncertainty innovations on inflation over time by considering the monthly United States data for the time period 1976–2006. In order to investigate the effect of inflation uncertainty innovation on inflation, a Stochastic Volatility in Mean model (SVM) has been employed. SVM models are generally used to capture the innovation to inflation uncertainty, which cannot be achieved in the framework of popular deterministic ARCH type of models. Empirical evidence provided here suggests that innovations in inflation volatility increases inflation persistently. This evidence is robust across various definitions of inflation and different sub-periods.     

Employee referrals as a screening device

This article develops a career‐concerns model to examine the screening function of employee referrals. First, I show that employees' reputational concerns provide them with an incentive to refer high‐ability applicants. This result explains how firms that offer fixed payments, rather than bonuses contingent on the referral's posthire performance, can elicit high‐ability referrals from their employees. Second, I consider the promotion competition as a potential mechanism that creates a conflict of interest between a firm and its employees concerning referral hiring. I show that referrals may still serve a screening function even when the promotion competition distorts employees' referral decisions.     

Performance evaluation of reverse logistics in food supply chains in a circular economy using system dynamics

Supply chains are composed of multiple stakeholders who have complex interrelationships. In addition, the forward and reverse flow of materials, information, human resources, and finance occurs among different stakeholders in closing the loop of supply chains. Reverse logistics (RL) activities are gaining importance in terms of size and quantity due to both economic and environmental concerns. These flows in RL in supply chains are both dynamic and complex in nature. Further, the environmental impact of RL activities has barely been considered in holistic way in available literature. In this study, a system dynamics model has been developed to analyze and comprehend the green performance of RL activities by predicting the environmental impact of RL activities. The proposed model has been validated by a case study in the context of a food supply chain. In the company where the case study is carried out, the environmental effects of RL activities have been analyzed. These activities in a food supply chain in terms of CO₂ (carbon dioxide), NO_x (nitrogen oxide), SO₂ (sulfur dioxide), and PM (particulate matter) emissions have been predicted through a system dynamics model for the years 2020 to 2024. The proposed methodology is applied in a food supply context, a major player in retail business, especially in emerging economies. According to our findings, the RL activities in a food supply chain can significantly contribute to green performance management by minimizing food waste and loss; hence, the environmental impacts of such activities should be closely examined from a managerial perspective.     

Using customer lifetime value to plan optimal promotions

The purpose of this study is to develop a methodology to guide managers in determining the optimal promotion campaigns to be directed towards different market segments in order to maximize the value of customers. For the purposes of this study, a two-step methodology is used, based on stochastic dynamic programming and the classification and regression tree. This methodology groups the customers according to their value. Within this framework, an experiment is conducted in which each of the different promotion campaigns is assigned to different randomly selected groups. The impact of each type of promotion on each type of market segment is analysed in order to find the optimal promotion campaigns appropriate for each. In contrast to previous research, this study takes into account a firm that provides more than one specific type of product or service. In addition, it analyses the impact of widely used types of promotion campaigns compared with the narrow scope of those investigated in previous studies. Therefore, this research presents important insights into managing relations with the customers in a more interactive and profitable way.     

The Interface between Organizational Learning Capability,Entrepreneurial Orientation,and SME Growth

This paper investigates the interface between organizational learning capability, entrepreneurial orientation (EO), and small business performance. It reports on the findings from 350 small and medium enterprises (SMEs) in North Cyprus operating in the services and retailing sectors. The findings indicate a positive relationship between EO and sales and market share growth, but not between EO and employment growth. There is also a positive relationship between organizational learning capability and EO. This paper contributes to the small business management literature by providing a holistic analysis of the interface between organizational learning capability, EO, and growth.