A splitting strategy for the calibration of jump-diffusion models

Finance and Stochastics - We present a detailed analysis and implementation of a splitting strategy to identify simultaneously the local volatility surface and the jump-size distribution from...     

Design principles of hybrid approaches in new product development: a systematic literature review

Setting the right approach for new product development (NPD) in the presence of uncertainty remains an ongoing debate in innovation management. Stage-gate systems (SGS) and agile methodology (AM) are the dominant approaches. Recently, hybrid approaches (combining SGS and AM) have been proposed. Although these hybrid approaches represent a significant development in NPD, combining them without considering their design principles might lead to contradictory and competing conceptual formulations, thus increasing the difficulty of comparison among studies. Moreover, scholars and practitioners may struggle to understand when, why and how a certain configuration of the NPD process provides the right response to different manifestations of uncertainty. The current literature faces problems regarding the clarity of design principles (e.g. flexibility and adaptability), and this has led to research gaps concerning the uncertainty contingency and outcomes of hybrid approaches. This study combines bibliometric and content analyses to identify four design parameters and principles of NPD hybrid approaches: flexibility, adaptability, velocity and integration. Our findings might help advance the development and comparison of different hybrid approaches.     

Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models

In the last decade, business models for sustainability have gained increasing attraction by corporate sustainability scholars with international conferences and scientific journals encouraging the development of the debate on their design, use and innovation processes. Capitalizing on the basic principles, requirements, and methodological limitations found in the literature on sustainability‐oriented business model design, this paper aims to conceptualize a dynamic business modeling for sustainability approach, which combines an adapted sustainable business model canvas and system dynamics modeling. To this end, the paper also illustrates the key operating principles of the proposed approach through an exemplary application to Patagonia's business model. Findings suggest that dynamic business modeling for sustainability may contribute to sustainable business model research and practice by introducing a systemic design tool, which frames environmental, social, and economic drivers of value generation into a dynamic business model causal feedback structure, thus overcoming methodological gaps of the extant business model design tools.     

Coordination and the provision of incentives to a common regulated firm

This paper considers the problem faced by two regulators in providing incentives to a common (privately informed) regulated firm under various degrees of coordination. In the model, the firm exerts effort toward cost reduction and self-dealing, and incentives can be input-based (monitoring) and output-based (demanded cost targets). Full coordination between the regulators leads to the second best allocation. A setting in which the regulators do not fully coordinate leads to (i) higher overall monitoring (more aggressive input-based incentives) and (ii) higher demanded cost targets (i.e., more lenience in terms of output-based incentives). As a consequence of (i), in all possible equilibria, the effort toward cost reduction will be smaller when the agent reports to two regulators who do not coordinate. (i) and (ii) imply that the impact on the effort toward self-dealing activities is ambiguous. In our leading example, self-dealing will be larger if the regulators coordinate on monitoring levels but smaller if they choose monitoring levels independently.     

Repurchase intent antecedents of a competitive brand in the smartphones segment

This research has analyzed the influence of perceived value, affective commitment, normative commitment and positive word of mouth as antecedents of repurchase intention of smartphones of a particular brand. The analysis of the results was made by means of multivariate statistics, applying Structural Equation Modeling technique. The sample consisted of 283 valid cases. The results showed that perceived value positively influences the affective commitment and normative commitment; perceived value by customers does not positively influences positive word of mouth; affective commitment positively influences positive word of mouth; affective commitment positively influences repurchase intention; normative commitment positively influences repurchase intention; and positive word of mouth positively influences repurchase intention of a product of the same brand.     

A method to assess the eco-efficiency of a public bus transportation service

Brazilian Public Bus Transportation Service transports over 34.4 million passengers daily using approximately 107,000 urban buses. This service costs millions of dollars annually to the municipality and emits several pollutants to the atmosphere. Therefore, this paper proposes a method to assess the eco-efficiency of a Public Bus Transportation Service. The proposed method was tested in a medium-sized urban region in Brazil. Different scenarios representing changes in the vehicles engines and fuels were tested and analyzed. Six eco-efficiency indicators regarding emissions and fuel consumption were proposed to assess which mix of engines and fuels would bring the greatest eco-efficiency. The results were compared to targets based on Brazilian regulation and showed that the renewal of the fleet is necessary to meet the environmental targets, while also achieving fuel costs reduction.     

International trade,pollution, and economic structure: evidence on CO2 emissions for the North and the South

This study investigates the mechanics of international trade and CO₂ emissions in two blocs of countries (‘North’ and ‘South’) by analyzing data from the World Input–Output Database. We adapt the Miyazawa technique to estimate the linkages between international trade and the environment at a global scale. Therefore, this study is in line with the idea of highlighting the role of feedback effects as well as the nature and extent of extra-regional influences on an economy in response to an additional stimulus. This is a contribution that, to our best knowledge, has not yet appeared in the literature. Our results suggest that both the North and the South have become less pollution-intensive (technique effect) over the years. Interestingly and in contrast to much of the literature, we also find support to the hypothesis that the South has specialized in relatively more pollution-intensive activities (composition effect).     

Corporate social responsibility as cultural meaning management: a critique of the marketing of ‘ethical’ bottled water

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so-called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to provide drinking water for (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three-step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo-liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories.     

Using an educational video-briefing to mitigate the ecological impacts of scuba diving

Recreational scuba diving is rapidly increasing, and the negative impacts to marine reef biota are of conservation concern. Educational approaches have been tested to mitigate diver damage to benthic organisms, but logistical constraints impede their implementation in many locations. We investigated the behaviors of scuba divers in terms of their contacts with benthic organisms, and assessed how an educational video-briefing caused changes in diver behavior. The video provided environmental information to divers, and enhanced their use of low-impact diving techniques. Divers who received the video-briefing exhibited significantly lower rates of contact with and damage to the benthos, than did divers who did not receive a briefing. The level of diving experience did not correlate with the rate of benthic contact in either group of divers. Male divers and photographers both contacted the benthos significantly less, and female divers and photographers both caused significantly less damage when they viewed the video-briefing prior to diving. Our findings highlight the importance of easily implemented, standardized educational approaches such as the use of video-briefings to mitigate the impacts of scuba diving. This study adds to the framework of tested strategies available to support the sustainable use of marine areas by the diving tourism industry.