Why Does the Problem Persist? ‘Rational Rigidity’ and the Plight of Japanese Banks

One of the most perplexing factors in the Japanese financial crisis is the apparently non‐optimal and non‐rational behaviour of Japanese banks. We provide a “rational” explanation for bank behaviour based on a theory of community banking that incorporates Japanese institutional characteristics. We find three implications of community banking – a low lending rate, a low bankruptcy rate, and in particular, institutionalisation of ‘rational rigidity’ (an institutional pledge of no profit maximisation) – in Japanese banks. We argue that this type of banking is viable as long as the economy expands and asset prices go up, which was the case before the asset‐market crash in 1990. The stagnation and free‐fall of asset prices in the 1990s exerted tremendous pressure on Japanese banks but did not paralyse them completely in the 1990s, although there are indications that they failed to restructure distressed large corporations in some sectors, notably real estate. Thus, the problem is not that paralysed banks are blocking recovery, but that their current institutionalised rigidity in banking practices is no longer viable because private enterprises in the market economy are suffering from asset‐price deflation and economic stagnation.     

The State of Business Ethics in Israel: A Light Unto the Nations?

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations.     

Does the Impact of Employment Protection Legislation on Foreign Direct Investment Differ by the Skill Intensity of Industries? An Empirical Note

In line with previous literature, we find that strict employment protection deters foreign direct investment. This finding is consistent with the view that rigid labour markets result in high adjustment and exit costs which discourage firm investment. Moreover, our results are consistent with the view that the deterrent effect of rigid labour markets depends on the skill intensity of an industry.     

‘What's so special about family business?’ An exploratory study of UK and Irish consumer experiences of family businesses

While family‐owned businesses are considered to have specific advantages in customer relationships, limited research has been conducted into how these abilities are developed or understood by the public. Consumers may indeed perceive family businesses differently from non‐family businesses, but this aspect has received scant attention within the literature. This paper sets out exploratory work designed to gain an understanding of Irish and UK consumer perceptions of family‐owned businesses, within both urban and rural communities. The study provides insight into the meaning of ‘familiness’ in consumers' minds when linked to family businesses, and explores the relationships and experiences that respondents have of family firms. Emerging issues include family business heritage, community bonds and social stewardship, consumer loyalty and generational transfer, distinction, choice and retail heterogeneity. The findings of this exploratory study suggest that researchers should be paying more attention to the positive aspects of family businesses within communities, and concludes with suggestions for future research to further extend this area of study.     

Is the ‘Globalization’ of Science Always Good for Scientific Productivity and Economic Growth?

Modern science is characterized by an increasing trend in collaborations and interactions among researchers. This paper aims to analyse the effects of this phenomenon on the productivity of the science sector and on the growth rate of the economy. Basic research is modelled as a contest where only those who arrive first at an innovation obtain the reward and where the interactions among researchers do contribute to production of scientific knowledge. An important result is that when interactions are significant multiple steady states emerge. Hence the ‘science globalization’ process could have enhanced the heterogeneity among scientific sectors of different countries. When there are low interactions, policies that increase connectivity could have low or even perverse effect at improving the efficiency of science, the contrary happens in high connectivity environments.     

Why Do Responses to Age‐Based Marketing Stimuli Differ? The Influence of Retirees’ Group Identification and Changing Consumption Patterns

This study analyzes how retired consumers respond to age‐based marketing stimuli using survey data from 236 retirees over the age of 60 years. Specifically, it investigates the factors that influence retirees’ intentions to use senior discounts and intentions to accept exclusive offers for seniors (e.g., educational classes for seniors), as well as their evaluation of age‐related labels (e.g., “60+”). The results show that retirees who identify more strongly with other retirees and who generally change their consumption patterns following retirement are more likely to respond positively to age‐based marketing stimuli. Additionally, the data suggest that cognitive age negatively moderates the role of retirees’ identification with other retirees in terms of their responses to age‐based marketing stimuli. However, the influence of these variables differs significantly across the types of stimuli considered. The findings help to explain ambiguities in previous studies that did not consider differences among mature consumers beyond age and age‐group membership or among the types of stimuli. The implications of these findings with respect to effective marketing to retired consumers are discussed.     

Is it ‘you’ or ‘your workplace’? Predictors of job‐related training in the Anglo‐American world

This paper examines the determinants of job‐related training and workplace voice. Using data from a unique 2016 cross‐national survey of Australian, British, Canadian and American employees, the paper contrasts two classic formulations in the literature; (1) the neoclassical/human capital approach which predicts that individual characteristics (such as age and education) which increase the efficiency of learning, will have the largest impact on the allocation of training (i.e. younger and more educated employees will be afforded training) and (2) the traditional institutional approach which favors the structural characteristics present at the industry and firm level, the nature of the job itself and the strategic choices of firms as the major predictors of job‐related training. We find that age – a key factor in the human capital model – plays a significant role in the allocation of training but that education (in keeping with recent evidence) does not. In sum the human capital model provides, at best, only a partial explanation for the differences in training observed across individuals. In contrast, variables invoked by the institutional literature (i.e. occupation level; industry; ownership type; and market structure) are highly significant and account for a much greater proportion of the variance in training observed across workers. Other institutional factors such as the presence of a union and a human resource department were strong positive predictors of job‐related training. But most important were product‐market strategy and employee voice. Respondents working in firms utilizing a ‘high road/high quality’ product/service strategy and with a workplace consultative committee were significantly more likely to receive training than similar workers employed in observably similar firms. This last finding supports the industrial relations view of voice as an important channel by which training is optimally delivered inside the firm.     

Is ‘NAFTA Plus’ an Option in the North American Agrifood Sector?

With the implementation of the North American Free Trade Agreement (NAFTA) nearly complete, there are concerns that the easy gains in efficiency have been achieved and that additional steps towards the economic integration of the member countries are required. This poses a distinct challenge to the NAFTA governments, since the agreement did not create trinational institutions with the supranational authority to facilitate the deepening of the new trading environment. In any initiative to further the economic integration of the NAFTA countries, agriculture will be a difficult sector in which to make progress. However, at an aggregate level, the support provided directly to agricultural producers by the NAFTA governments is similar, as are tariffs at an aggregate level. All three countries have devised income support programmes that contain a countercyclical element. In each of these areas, as well as in the operation of ‘green box’ programmes that are consistent with the member countries’ obligations to the World Trade Organization, cooperation and consultation among the NAFTA members would seem crucial if they are to achieve greater integration in the agrifood sector. This article examines the opportunities and challenges facing the NAFTA members as they seek further integration in the agrifood sector.     

Does a ‘care orientation’ explain gender differences in ethical decision making? A critical analysis and fresh findings

Over the past two decades there has been a great deal of research conducted into the question of gender differences in ethical decision making in organisations. Much of this has been based on questionnaire surveys, typically asking respondents (often students, sometimes professionals) to judge the moral acceptability of actions as described in short cases or vignettes. Overall the results seem inconclusive, although what differences have been noted tend to show women as 'more ethical' than men. The authors of this paper believe that attention should be paid to the insight, from Carol Gilligan and others, that women are more inclined than men to subscribe to an 'ethic of care', and that once this perspective is adopted a pattern is discernible. In a critical examination of previous research we pay particular attention to the detailed content of cases used in surveys, and the statistical analysis of findings. We advocate greater reflection on the results of quantitative surveys and sensitivity to different possible interpretations of findings. This we do with our own exploratory study, conducted with UK undergraduate students of accounting, the findings from which seem to support the original hypothesis that where a 'care' orientation is invited, women do indeed react differently to business ethics issues than do men.     

Consumer involvement in research using oral history: ‘What are people's experiences of health and well‐being in Halton?’

The purpose of this paper is to describe a qualitative oral history case study that involved consumers in research and followed a collaborative approach in the north‐west of England. This study had two aims: (1) to increase local voluntary groups research capacity through active involvement in research; and (2) to explore the community's historical perceptions of health and well‐being. The research team included four lay researchers from local voluntary groups supported by an academic researcher. Data collection used semi‐structured interviews based on oral history life stories that focused on health and well‐being. Thematic data analysis and mind maps were used to create a collective narrative. This paper will provide a brief synopsis of the findings from the main themes of health and well‐being, and reflect on the process of consumer involvement in research using oral history. Outputs have included dissemination at a local and national level, increased knowledge and confidence in the research process, and involvement in other related initiatives, such as Local Involvement Networks, partnership working with local libraries and collaboration with the regional archivist.     

Does the Individualist Consume More? The Interplay of Ethics and Beliefs that Governs Consumerism Across Cultures

Individualism leading to more consumerism seems to be a bit of truism nowadays in the media. The USA is particularly indicted for being too individualistic and consumerist. Past research has mostly indicated a positive relationship between the two. However, past research has not suggested a negative association between individualism and consumerism. This paper offers support for such a negative relationship by showing that an individual’s ethical values can temper the consumerist nature of individualists. Data were collected in the USA and Taiwan. Structural equation models demonstrate that our hypothesized model fits our data well. A key result over the global sample is the stability of the linear path from individualism to work ethic to consumer ethic to consumerism. The two-nation comparison also supports differences in how Taiwanese and Americans differ in their belief that consumption benefits society.     

What does ‘solidarity economy’ mean? Contours and feasibility of a theoretical and political project

The market relationships are being contested. This can be seen in the increasing number of alternative social experiments in the ‘North’ and the ‘South’ which propose to think out the present market relationships in a different way, in particular in establishing exchange value and in facilitating access to trade. These practical alternatives are supported by trends in academic circles that over the past three decades have opposed neoliberal capitalism and individualism in today's commercialised society. Calling for greater solidarity and social justice in economic relationships, in particular, partisans of social and solidarity economics (SSE), identifying with these trends, demand new forms of exchange. The objective of this article is to re‐examine these demands. What exactly do the SSE mean by ‘solidarity’ and ‘solidarity‐based economy'? We would like to trace the contours of this theoretical and political project and to assess the practicability of the proposed alternative to neoliberal capitalism.     

The Structure of Labour Markets in the Hotel and Catering Industry: What do Employment Law Cases Indicate?

The allocation of labour in the hotel and catering industry remains an under-researched and little understood process. Direct empirical observation of the labour market involves methodological difficulties requiring a major research project. An attempt is made to explore the labour market by analysing the facts of employment law cases which must be considered as secondary sources of data. The main conclusions are that the labour market approximates to the neo-classical model and that recent legislation has not provided statutory protection for employees at work.     

How Reliable Are the Findings of ‘Foreign’ Investor Studies That Use TIC Data? A Look from the Host Market

Empirical literature on foreign investors' trading in stock markets heavily relies on US Treasury International Capital (TIC) data. Biases in TIC data and the fact that it represents only one source country raise questions on how reliable the conclusions based on TIC data are. Employing novel data of complete foreign flows compiled at destination, we answer these questions. Although the correlations between net flows derived from TIC and destination‐compiled data are low, and visible differences exist in some individual country results, TIC findings are not far off in central tendency. Notably, however, net foreign flows' persistence, positive response to world returns and positive contemporaneous correlation with local returns are more significant than TIC data suggest. Measurement noise in TIC data appears to result in underestimation of these key features.     

Why Small Enterprises Can (Still) Operate at the Top of the Pyramid? Evidences and Interstices' Theory in the Automotive Industry

The paper questions the widely accepted vision of an automotive supply chain with a very pyramidal structure that works to mega suppliers' benefit. Mobilizing an original survey of 750 French SMEs, we show that SMEs can still operate at the very top of the pyramid and that the different tiers remain porous. The first section explains why the modularization of the automotive industry has led to a pyramidalization of supply chains, enabling the emergence of mega suppliers. The second section shows how some SMEs are still able to rise to the top tier of the supply chain, a process explained in the third section. Using the notion of interstices initially formulated by Penrose, an explanation is provided as to why mega suppliers leave certain market spaces unoccupied, with SMEs subsequently filling in the gaps. The ensuing analytical grid then leads to a conclusion that will highlight two main managerial and political implications.     

Jingle bells or ‘green’ bells? The impact of socially responsible consumption principles upon consumer behaviour at Christmas time

Socially responsible consumption (SRC) behaviours have progressed over the last few years and appear to show signs of a lasting trend. Situations of atypical consumption such as Christmas time, however, raise an important and as of yet unexplored question: What are the influences of unusual situations upon the relationship between people's socially responsible profile and their socially responsible purchase intentions (SRPI)? The objective of this article is thus to use the theory of planned behaviour (Ajzen, 1991 ) and environment‐based variables, called ‘atmospherics’, to answer to this question. A Web survey on a total sample of 301 Canadian consumers, shows that people's past SRC behaviours are positively related to their SRPI in unusual situations. Moreover, the atmosphere of the place consumers are situated in has a negative moderating influence upon this relationship. This result is explained by a change in people's attitude toward SRC. However, this negative moderating effect of atmosphere is contained and constrained by social desirability in the form of subjective norms on SRC and the level of behavioural control consumers perceive.     

Does the Starting Point Matter? The Literature‐Driven and the Phenomenon‐Driven Approaches of Using Corporate Archival Data in Academic Research

Despite recent and perhaps myopic criticisms of archival data with regard to supporting causal theoretical claims, it would be folly to disregard the exploratory and grounded theory development potential that these substantial, rich, and timely archives hold. The question then becomes one of how academics might tap into such archives. This paper considers this issue from a pragmatic perspective, drawing on the experiences of various academics with extensive experience in constructing data‐access relationships with industry. With the support of scholars who published their work using corporate archival data in leading academic journals, we suggest a phenomenon‐driven approach paralleled with the traditional literature‐driven approach in academic studies. This paper highlights best practices, pitfalls, and future opportunities, with the aim of serving as a guide for intrepid scholars interested in capitalizing on contemporary big data initiatives supported at many firms.     

Are Trade Preferences more Effective than Aid in Supporting Exports? Evidence from the ‘Everything But Arms’ Preference Scheme

This study examines the effect of the ‘Everything But Arms’ (EBA) trade preferences regime on exports from the African, Caribbean and Pacific countries (ACP) to the European Union (EU). With this aim, an augmented gravity model is estimated for exports from the 79 ACP countries to the EU‐15 for the time period of 1995—2013 using panel data techniques. The results are used to quantify the effect of the eligibility for EBA preferences on the export performance of the ACP least developed countries (LDCs) and to relate it to the impact of official development assistance on exports. In addition to their separate effects, the combined impact of EBA and aid flows is examined. The main results do not provide evidence for an additional positive effect of the EBA agreement on the export performance of the ACP LDCs. However, receiving aid shows a significant and positive effect on exports from EBA‐eligible ACP countries to the EU‐15, supporting an EU development strategy that includes both sorts of assistance, aid and trade preferences.