How to use instrumental variables in addressing endogeneity? A step-by-step procedure for non-specialists

Endogeneity issues in empirical research have received increasing academic attention. Tackling endogeneity problems effectively and using the appropriate estimation techniques are important quality benchmarks in the publication process of many academic journals. In this paper, we discuss the use of instrumental variables (IVs) in business and marketing research, with a particular focus on its implementation in STATA. We discuss several pre- and postestimation tests that researchers can use to implement various versions of IVs in STATA, including two-stage least squares regression, limited information maximum likelihood estimation, and generalized method of moments.     

Do firms leverage the FDA nutrient label rounding rules to generate favorable nutrition fact panels or health claims?

The increasing incidence of nutrition related health concerns has made food labeling an important policy issue. Previous work suggests the importance of communicating nutrition information to consumers through product packaging. This paper investigates the role of labeling guidelines, which allow the rounding of calorie and nutrient levels on nutrition fact panels and affects front of package claims. We examine ready-to-eat cereal products as a bundle of nutrient attributes, and estimate the likelihood and magnitude of the rounding of specific nutrients and calories. We find systematic rounding, both up and down, of several nutrients, which affects allowable health claims and may influence consumer product choice and health outcomes.     

Will they buy it? The potential for marketing organic vegetables in the food vending sector to strengthen vegetable safety: A choice experiment study in three West African cities

Considering the hazardous use of synthetic pesticides in vegetable production in urban West Africa, this research investigated the marketing potential of organic vegetables in the food vending sector of Cotonou (Benin), Accra (Ghana) and Ouagadougou (Burkina Faso). Certified organic production and marketing was examined as a potential strategy to improve chemical food safety. A stratified random sampling strategy was applied to study the preferences of food vendors (n = 180) and consumers (n = 360); vegetable use, risk perception, choice preferences and willingness-to-pay (WTP) for organic certification were specifically analyzed. The results showed that awareness of chemical contamination risks was generally low. Appearance of a product was central to vendor choice; consumers attributed similar utility to taste and organic certification. Consumer WTP was calculated to be a premium of 1.04 USD (per plate) if the food served contained only certified organic vegetables. In restaurants, this would mean an average premium of 19% for a meal. If certified organic vegetable production is to make a positive impact on food safety in urban West Africa, we suggest concentrating marketing efforts on the educated “elite” who frequent restaurants. However, considering that restaurant owners exhibited a lower preference for organic certification than lower class food vendors, the marketing situation is difficult. We therefore conclude that demand from the food vending sector alone will not institutionalize domestic certification mechanisms; this underlines the need for public commitment to facilitating such change.     

Wholesale broadband access to IPTV in an NGA environment: How to deal with it from a regulatory perspective?

Network operators are increasingly competing with triple play offers from cable providers for both broadcast customers and telecommunications customers. In recent years they have invested in IPTV platforms and launched their own IPTV services. This has brought a new question on the regulatory agenda: shall network operators be obliged to offer wholesale access to their IPTV platform? And if yes, should the new wholesale IPTV product be regulated in the same way as traditional wholesale access? Or should traditional regulation be modified? While the majority of countries have so far no regulatory rules in place, some national regulators have started to become active in this market segment.     

How does working-time flexibility affect workers' productivity in a routine job? Evidence from a field experiment

We conducted an experiment in which we hired workers under different types of contracts to evaluate how flexible working time affects on-the-job productivity in a routine job. Our approach breaks down the global impact on productivity into sorting and behavioural effects. We find that flexible arrangements that allow workers to decide when to start and stop working increase global productivity by as much as 50%, 40% of which is induced by sorting, and 60% represents a motivational effect, mainly driven by more effective working time, with workers reducing the length of their breaks. Our findings also suggest that part-time contracts can enhance global productivity, – though not significant at conventional levels –, and that this effect is also driven by a significant drop in the length of breaks taken. We hence contribute to the literature providing causal evidence of flexibility in routine jobs leading to higher productivity.     

Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China

Using the melamine contamination incident in China as an exogenous shock, this paper studies how the investors respond to corporate social responsibilities (CSRs) of listed firms in food industry. We find that investors’ or consumers’ concerns for CSR in the food industry could be significantly influenced by the mounting attention given to CSR-related events. This study offers important policy implications. First, the government, as well as supervisors, should release appropriate policies to improve various firms’ activities on CSR, especially in the food industry. Second, firms, particularly those in the food industry, can obtain long-term benefits by strengthening their CSR-related activities.     

What lies behind socio-economic inequalities in obesity in Spain? A decomposition approach

The expansion of obesity stands as a major food related health concern arguably driven by a socio-economic vector. However, alongside its prevalence, still scant evidence has examined on the underlying factors that explain the emergence socio-economic inequalities in obesity. This paper makes use of evidence form Spain to empirically address the hypothesis of the existence of income-related inequalities in the probability of suffering obesity in Spain using data from 2003. Besides quantifying inequalities, we take advantage of a concentration index methodology that allows a decomposition of the cross-section explanatory factors. Our findings provide suggestive evidence of significant socio-economic inequalities in the probability of being obese in Spain. However, in decomposing such inequalities we find that education attainment and other demographic covariates appear to have a prominent influence. Hence, rather than the so-called pure “income effect”, we conclude that socio-economic inequalities in obesity result from the additional influence of other confounding – observed and unobserved-effects.     

Leveraging agriculture for nutrition in South Asia: What do we know,and what have we learned?

Despite significant improvements over recent decades, rates of undernutrition remain high in South Asia, with adverse impacts on morbidity and mortality. Overweight/obesity, among children and adults, is now an additional and major public health concern. While agriculture has the potential to improve nutrition through several pathways, this potential is currently not being realised in the region. The Leveraging Agriculture for Nutrition in South Asia (LANSA) research consortium (2012–2018) set out to improve understanding about how agriculture and related food policies and programs in South Asia (specifically in India, Bangladesh, Pakistan and Afghanistan) can be better conceptualised and implemented in order to enhance impacts on nutrition outcomes, especially those of young children and adolescent girls. This paper provides a snapshot of the agriculture-nutrition nexus in the region, outlines the pathways through which agriculture can influence nutrition outcomes, elaborates on the objectives of the LANSA research consortium within this context, and highlights the core findings of the six papers that form the body of this Special Issue. The paper ends with five key lessons that have emerged from this research, during this decade.     

What makes it so difficult? A systematic review on barriers to radical innovation

Radical innovation (RI) barriers are a complex phenomenon on which our understanding remains rather limited. Through a systematic analytical review on the extant research on RI barriers comprising a content analysis of 103 articles, this study develops a classification of barriers covering external barriers grouped by firms' influence potential, and internal barriers grouped by, for example, distinct RI competences. External barriers related to customer resistance and an undeveloped network and ecosystem, and the internal barrier relating to restrictive mindset have the widest influence. The results reveal that innovation barriers do not differ between radical innovations with different degrees of novelty, but that they vary according to the characteristics of firms, markets, and along the innovation process. This article contributes by generating an integrative framework of RI barriers, providing several propositions for further research, and developing implications for overcoming the barriers.     

Which types of multi-stage marketing increase direct customers' willingness-to-pay? Evidence from a scenario-based experiment in a B2B setting

The present study investigates empirically which types of multi-stage marketing by a business-to-business supplier affect its direct customers' willingness-to-pay. We conceptually develop comprehensive and selective multi-stage marketing as well as multi-stage awareness as distinct types of this concept. Their properties lead to differentiated hypotheses concerning their effects on direct customers' relationship value perceptions and perceived price importance which in turn influence willingness-to-pay. The paper also demonstrates how the direct customers' power position toward their own customers affects the effectiveness of a supplier's multi-stage marketing endeavors. We conduct a scenario-based, experimental study among 103 knowledgeable purchasing managers in customer companies to the adhesives industry, measuring willingness-to-pay, perceived relationship value, and price importance with a limit conjoint analysis. Multi-level modeling is used to test our hypotheses. The results show that comprehensive multi-stage marketing significantly increases purchasing agents' willingness-to-pay, mostly through their relationship value perception, and especially when the customer company is in a less powerful position toward its own customers. For managers, our study highlights the benefits of comprehensive multi-stage marketing over the other multi-stage marketing types.     

Taking a hit to save the world? Employee participation in a corporate social initiative

Research Summary: Companies often justify their corporate social initiatives by citing talent management benefits. We examine the extent of, and the reasons for, employee interest in such an initiative in a global management consulting firm. We find a large fraction of employees to be interested in participation in the initiative even when participation requires a personal sacrifice in the form of a salary cut. However, this interest is driven not just by prosocial motivation: Expectations regarding private benefits, such as improved career prospects from new skills acquired, also play a role. Considerations of social impact and private benefits are equally salient when no salary cut is required, but private considerations become more prominent when participating employees are asked to accept a salary cut. Managerial Summary: Many companies are moving from stand‐alone corporate social responsibility (CSR) projects to social initiatives integrated into strategy. Providing employees with the opportunity to participate in such initiatives is said to help attract, motivate and retain talent. In this study, carried out in collaboration with a management consulting firm, we examine how much and why employees value participation in a corporate social initiative. Based on interviews and survey data, we find that employees are not only interested in, but often even willing to accept, a temporary salary cut for the opportunity. However, altruistic motivation is not the only driver of this interest: Employees also expect and value the possibility that the experience would lead to private benefits, such as developing skills likely to enhance their career prospects.     

What drives smallholder farmers’ willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya

We use an incentive compatible experimental auction to measure demand for a new agricultural technology, a triple layered hermetic storage bag. When used properly, the bag creates an airtight seal that reduces storage loss from insect pests and neutralizes aflatoxin contamination in stored grain. We find that demand for this new technology is highly elastic (4.3) and that the wholesaler could increase profit by lowering the price. We also find that farmers’ valuation for the bag is not significantly different based on the medium through which information about it is communicated to them, either text, audio or video messages. This suggests that practitioners should use the cheapest option for disseminating information, which is text messaging in this context. In addition, we find that farmers who have prior awareness of the bag are willing to pay 20% more on average than those previously unaware of it. In total, the highly elastic demand for the improved bags, along with the fact that prior awareness of the bag leads to higher willingness to pay, suggests that a one-time price subsidy for the new technology could spur demand and increase future adoption.     

Adherence to WHO’s nutrition recommendations in the UK: Dietary patterns and policy implications from a national survey

Analysis of dietary patterns has largely focused on their association with diseases or risk factors, but limited research has been conducted on the heterogeneity of population dietary patterns and their adherence to international or national nutritional guidelines. As a result, the aim of this study is to identify latent dietary patterns of UK residents and to assess how well different segments comply with WHO dietary norms.To achieve this objective, the UK’s National Diet and Nutrition Surveys for 2011–12 dataset was analysed performing a latent class analysis on energy (kcals) derived from selected food groups. To assess adherence to different dietary patterns of the British population to nutritional guidelines, a traffic light system and a composite conformity index were developed to establish how well the identified segments comply with current dietary WHO norms regarding salt, free sugars, total fat, saturated fat, fruit and vegetables and dietary fibre.Results show four different segments which on the basis of heterogeneity of dietary patterns were named ‘high sugar/high fat consumers’, ‘prudent eaters’, ‘high fat consumers’ and ‘junk food eaters’. These segments show significant differences within and between groups in terms of dietary calories intakes and their adherence to WHO norms. Although ‘prudent eaters’ are closer to WHO dietary guidelines than other segments, none of the identified segments fully comply with dietary WHO norms. Policy implications of these findings are fully discussed in the conclusions arguing how current, future and potential dietary demand and supply measures affect consumers’ compliance with WHO norms.     

Public Private Partnerships in food industries: A road to success?

Recent food safety crises have led to the development of new collaborations between public authorities and food operators in monitoring food safety. To date, most of the literature has analyzed these collaborations as linked to a regulatory process and as a mean to comply with regulatory standards. In this paper, we take another stand and consider them as specific embedded institutions (meso-institutions) analysing them as Public Private Partnership specific to food safety provision. This new perspective allows us to take into account both information asymmetries and the industry-wide dimension of such programmes. Our overall intention is to provide a general enriched theoretical framework to highlight aligned incentive mechanisms in such partnerships. We then apply our framework to two case studies in order to better understand the main mechanisms at work that could explain their specific functioning and resilience. The two case studies are the cattle traceability system in Quebec (Canada) and monitoring programmes for pesticide residues in the French imports industry of fresh produce.     

Women’s agricultural work and nutrition in South Asia: From pathways to a cross-disciplinary,grounded analytical framework

In this systematic review, we aim to examine the impact of women’s work in agriculture on maternal and child nutrition in South Asia. Building on previous reviews supported under the Leveraging Agriculture for Nutrition in South Asia (LANSA) consortium, and recent published literature, we include findings from new LANSA research. While mapping literature onto the gender-nutrition pathways linking agriculture to nutrition (Kadiyala et al., 2014), we also point to conceptual and methodological directions for further exploration emerging from our work. Key amongst these are a focus on seasonality, poverty, and gender relations, moving beyond both an exclusive focus on women as a unified and homogenous group, and agriculture as an unchanging and common set of activities and production processes. Our analysis suggests the need for a more contextualised approach, and for a richer cross-disciplinary framework for effectively addressing the ways in which women’s work mediates agriculture’s role in improving child and maternal nutrition in South Asia.     

The effect of smileys as motivational incentives on children’s fruit and vegetable choice,consumption and waste: A field experiment in schools in five European countries

To assess whether smiley stamps work as a motivational incentive to promote fruit and vegetable eating among children, we conducted a field experiment in ten primary schools in five European countries using one control and one treatment school per country. The six-week experiment was split into three two-week phases before, during and after the smiley was implemented. During the smiley phase, the children received a smiley stamp for choosing a portion of fruits or vegetables. We find an increase attributed to the smiley stamp on children’s fruit and vegetable choice and consumption, but also waste. Comparing the effects across countries, we observe significant variations in the smiley effect. This study thus demonstrates, in general, that a low-cost, easy-to-implement incentive such as a smiley stamp has the potential to motivate school children to increase their fruit and vegetable consumption; the study simultaneously underscores the high relevance of context for the effects of incentives.     

What makes a good case study? A positivist review of qualitative case research published in Industrial Marketing Management, 1971-2006

Business-to-business marketing research has a long tradition of using qualitative case studies. Industrial Marketing Management (IMM) has actively encouraged the use of case methods, resulting in many important theoretical advances in the field. However, debate still rages over what constitutes “good case research”. This article addresses this issue from a positivist standpoint. We examine the how authors address issues of quality in the 105 qualitative case studies published in IMM between 1971 and 2006. Four periods were identified: 1971-1979, 1980-1989, 1990-1999, and 2000-2006. Findings demonstrate that, from a positivist viewpoint, there has been a steady improvement in how authors addressed issues of research quality in published qualitative case studies. Suggestions for changes in data presentation, reviewer expectations, the IMM reviewer feedback form, and the use of web-based appendices containing data pertinent to reader judgments of research quality are suggested.