Connecting strategic orientation,innovation strategy,and corporate sustainability: A model for sustainable development through stakeholder engagement

This paper aims to enhance our understanding of the relationship between organizations' strategic orientation (i.e., instrumental, equidistant, and stewardship) and their innovational strategy (i.e., organizational ambidexterity and open innovation), and this relationship's influence on their sustainability performance. We expected organizations' strategic orientation to influence their innovational strategy and exhibit better corporate sustainability. We focused on 12 different multinational organizations in the Eurozone and found that inbound open innovation acts as a driver for corporate sustainability while simultaneously positively enabling organizations to pursue both financial and social initiatives. After suggesting open innovation as a new corporate sustainability antecedent, we only found empirical evidence of inbound open innovation. However, we would suggest that if organizations incorporated outbound open innovation in their strategy, they could likely improve their corporate sustainability. Also, we found that achieving an equidistant or stewardship orientation paves the way for sustainability to become an integral part of an organization's innovational culture and actualizes the organization's strategic behavior. Our findings further contribute to a deeper understanding of organizations' characteristics as their sustainability commitment grows and as they move from an instrumental to a stewardship orientation and implement an open innovational strategy.     

The influence of user-supplier relationship on innovation dynamics of Oil & Gas industry

ABSTRACT

This paper analyses the role of user-supplier relationships in the innovation dynamics of the Oil and Gas (O&G) industry, from an analysis supported by R&D and patent application data. This paper points to some recent interesting phenomena in the O&G sector, such as: (i) the remarkable advancement of two Chinese oil companies; (ii) the significant growth in O&G companies’ technological engagement in exploration and production (E&P) from the 2000s; (iii) the non-negligible increase in the application of O&G companies’ patents for renewable energy. Moreover, by working with the oil and gas chain complete, we show that the performance of the companies oil and gas equipment and services industry (O&GES) is restricted to the upstream activities. Finally, we bring up some arguments that have as objective relativise the typology of R&D intensity adopted by OECD.     

A survey of network-based analysis and systemic risk measurement

The financial crisis led to a number of new systemic risk measures and a renewed concern over the risk of contagion. This paper surveys the systemic risk literature with a focus on the importance of contributions made by those emphasizing a network-based approach, and how that compares with more commonly used approaches. Research on systemic risk has generally found that the risk of contagion through domino effects is minimal, and thus emphasized focusing on the resiliency of the financial system to broad macroeconomic shocks. Theoretical, methodological, and empirical work is critically examined to provide insight on how and why regulators have emphasized deregulation, diversification, size-based regulations, and portfolio-based coherent systemic risk measures. Furthermore, in the context of network analysis, this paper reviews and critically assesses newly created systemic risk measures. Network analysis and agent-based modeling approaches to understanding network formation offer promise in helping understand contagion, and also detecting fragile systems before they collapse. Theory and evidence discussed here implies that regulators and researchers need to gain an improved understanding of how topology, capital requirements, and liquidity interact.     

Do Cultural and Generational Cohorts Matter to Ideologies and Consumer Ethics? A Comparative Study of Australians,Indonesians, and Indonesian Migrants in Australia

We explore the notion that culture influences people’s values, and their subsequent ideologies and ethical behaviors. We present the idea that culture itself changes with time, and explore the influence of culture and generational markers on consumer ethics by examining differences in these ethical dimensions between Australians, Indonesians, and Indonesian Migrants in Australia, as well as differences between Generation X versus Generations Y and Z. The present study addresses the need to investigate the role that culture plays in consumer ethics, and the interaction between culture and generational attitudes in determining consumer ethics. Results established a distinct multiculturality in our three cultural samples, including a generational cohort differences. This suggests that culture and generational markers influence ethical beliefs, ideologies, and consumer ethics. It further indicates that Indonesian Migrants have acculturated to Australian society both in terms of their values and consumer behaviors, illustrating a crossvergence effect; scores indicate that these Migrants have the highest cultural intelligence among our samples. Implications of the findings for consumer ethics theory and practice are considered and future directions identified.     

The Demand for Life Insurance Policy Loans

Previous research has examined the demand for life insurance policy loans using aggregate policy loan data. In contrast, we use a detailed household survey data set containing life insurance and policy loan information to alternatively, and in some cases more directly, examine the four hypotheses traditionally associated with policy loan demand. Our research provides the first U.S. evidence (in the post–World War II period) in support of the policy loan emergency fund hypothesis. In particular, we find that the more detailed emergency fund proxies used here reveal a significantly positive relation between loan demand and recent expense or income shocks.     

Determinants of Corporate Diversification: Evidence From the Property–Liability Insurance Industry

This article analyzes variations in line‐of‐business diversification status and extent among property–liability insurers. Our results show that the extent of diversification is not driven by risk pooling considerations; insurers operating in more volatile business lines do not diversify more. Diversification can rather be explained by the benefits of internal capital markets and barriers to business growth like market size and concentration. In our analysis, we distinguish between related and unrelated diversification. Using a measure of unrelated line‐of‐business diversification we find the first support for the diversification prediction of the managerial discretion hypothesis that mutual insurers should be less diversified than stock insurers. While mutual insurers tend to exhibit higher levels of total diversification, they engage in significantly less unrelated diversification than do stock insurers.     

Interest rate volatility,asymmetric interest rate pass through and the monetary transmission mechanism in the Caribbean compared to US and Asia

We analyse asymmetric interest rate pass through, the impact of interest rate volatility on interest rates and the monetary transmission mechanism in the countries of the CSME² using the Asymmetric TAR and MTAR cointegration models by Enders and Siklos (2001) and the EC-EGARCH(1, 1)-M model by Wang and Lee (2009), who examined the same issue for the US and nine Asian countries. The CSME is a unique case of study given that it contains within it a monetary union: the OECS². First, our results show that there is complete pass through in the retail lending rate for Trinidad and Tobago and for St. Lucia and therefore, by extension, in all the countries of the OECS³ but not the other countries of the CSME. In contrast, Wang and Lee (2009) found complete pass through for the US deposit rate but not in the rates of the other nine Asian countries. Second, in Wang and Lee (2009) the results of the TAR and MTAR models show asymmetric cointegrating relationships in the lending rate of three Asian countries and the deposit rate of five Asian countries. Comparatively, our results show asymmetric cointegrating relationship in the lending and deposit rate of only three countries out of six: Jamaica, Guyana and St. Lucia. Third, the results from the conditional mean equation in the EC-EGARCH(1, 1)-M model in Wang and Lee (2009) show that for the countries with asymmetric cointegrating relationships, the lending rate displays downward adjustment rigidity and the deposit rate displays upward adjustment rigidity. In contrast, our results show that both rates for Jamaica display upward adjustment rigidity and both rates for Guyana and St. Lucia display downward adjustment rigidity. Finally, similarly to Wang and Lee (2009), our results from the EC-EGARCH(1, 1)-M models show that the effect of interest rate volatility on interest rates varies among countries. Three out of the Asian countries from Wang and Lee (2009) support the collusive pricing arrangement hypothesis while in our case it happens only in two countries out of six from the CSME: Guyana and St. Lucia. Moreover, the leverage effect exists in the lending rate for two out six countries in the CSME as it happens in Wang and Lee (2009) in two out of their Asian countries. Along the same lines, the leverage effect exists in the deposit rate of three countries in the CSME, contrary to Wang and Lee (2009), who do not find any evidence at all. This shows evidence of an important heterogeneity in the behaviour of the CSME countries and that Trinidad and Tobago and St. Lucia (showing the effect of belonging to a monetary union) are our only analysed countries where, as in the US, there is complete pass through and the central bank can transfer all the cost associated with an increase in its policy rate to the retail rates.     

Are directors’ dealings informative? Evidence from European stock markets

Are directors’ dealings reports informative for outside investors? We analyze short-term announcement effects for 2782 companies from eight European countries between January 2003 and December 2009. We find significant announcement effects in four out of eight countries after directors’ dealings reports have been disclosed. For most countries, the magnitude of the announcement effect depends on transaction size, firm size, book-to-market ratio, and multiple trades by different insiders on the same trading day. The results are stronger for purchases than for sales. For France, Ireland, and Sweden, we find tentative evidence that the corporate position of an insider is connected to the size of the announcement effect.     

How Can We Better Understand Current and Future Workforce Values in the Global Business Environment?

Our study tested the predictive power of socioeconomic development theory and age differences theory to explain work values across cultures and across age groups. We compared the values orientations of future managers, business students under the age of 25, with those of current managers and professionals, who we split into three decade groups (30 to 39, 40 to 49, and 50 to 59). Our respondents (n = 1,518) come from six diverse societies: Brazil, Germany, Indonesia, Russia, the United States, and Vietnam. Our findings indicate that both theories contribute to our understanding of work values and behaviors. One implication is that while socioeconomic development theory makes an important contribution, it is clearly not sufficient by itself to explain work values/behavior differences in the global context. The study findings and the discussion of them will hopefully provide multinational managers with a clearer assessment of current and future workforce values/behavior. © 2012 Wiley Periodicals, Inc.     

Are Authentic Leaders Always Moral? The Role of Machiavellianism in the Relationship Between Authentic Leadership and Morality

Drawing on cognitive moral development and moral identity theories, this study empirically examines the moral antecedents and consequences of authentic leadership. Machiavellianism, an individual difference variable relating to the use of the ‘end justifies the means’ principle, is predicted to affect the link between morality and leadership. Analyses of multi-source, multi-method data comprised case studies, simulations, role-playing exercises, and survey questionnaires were completed by 70 managers in a large public agency, and provide support for our hypotheses. Our findings reveal that Machiavellianism offsets the positive relationship between moral reasoning and authentic leadership. Specifically, we show that when Machiavellianism is high, both the positive relationship between moral reasoning and authentic leadership, and the positive relationship between authentic leadership and moral actions, are reversed. This study offers new insights on the underlying processes contributing to the emergence of leaders’ authentic behavior and moral action. Implications for the moral development of leaders, and directions for improved leadership training are provided.