How do Expatriate Managers Draw the Boundaries of Moral Free Space in the Case of Guanxi?

Journal of Business Ethics - This paper explores expatriates’ ethical evaluations of and responses to guanxi in China through the lens of integrative social contracts theory. We conducted...     

The Rise of Fund Managers in Foreign Exchange:Will Fundamentals Ultimately Dominate?

This paper analyses the behaviour and motivation of fund managers in foreign exchange markets reflected in questionnaire evidence. We find that fund managers and FX dealers differ significantly. Fund managers rely more on fundamentals, basically due to their longer forecasting horizons, and reject non‐fundamental influences on exchange rates more than FX dealers. However, neither can fund managers be considered as pure fundamentalists. Non‐fundamentalist positions markedly influence short‐term decision‐making. They inspire ambivalent views about market imperfections and these views seem to become stronger over time. This latter change counterbalances the strengthening fundamental influences resulting from the rise of fund managers.     

Who Will Trigger the Bomb of Price in the Auto Market in 2003 in China?

Despite China's auto market is till immersed in the afterglow of its "great eruption of oil well," as if every model of cars, costing a high price or low price, would all sell well on the market, yet it can be predicted that the year 2003 will, no doubt, be a year of price for China's auto industry. As soon as a big equivalent "bomb of price" would blow off in the beginning of the year, the pricing in China's auto market is sure to go through a sweeping reshuffle, and an effect of the theory of domino is inevitable to follow. No wonder, the market will be shaken by a price downslide of some key model of car produced by a solid-founded enterprise, with a drastic price down of RMB50000 for each car!     

What is in the Mind of State-owned Enterprises?

foe World Top 500 and the Development ofChina's Large State--owned Enterprises wasa seminar sponsored by the China EnterpriseAssessment Association, which was participatedby more than one hundred leading figures fromthe Development Research Center of the StateCouncil, Peking University, the State Economicand Trade Commission, Economic RestructuringOtllce of the State Council, the State StatisticsBureau and the China Petro-Chemical Corp,Baoshan iron and Steel Company, Capital iron…     

What European Union in the “Age of Uncertainty”? Weathering the Geopolitical Storms in a World of Perpetual Crises

Intereconomics - A world of risks and uncertainties can also be a world of opportunities. How and how quickly the EU adapts to the socio-political, economic, energy and climate transitions at hand,...     

See What We Want to See? The Effects of Managerial Experience on Corporate Green Investments

How impartial are managerial decisions? This question is particularly concerning when it comes to making green investment decisions in the face of stakeholder pressures. When managers respond to stakeholder pressures, their personal cognition, judgment, and past experiences play a role in determining their responses. The salience of particular stakeholder claims may be determined by deeply rooted individual preferences. This research investigates how a manager’s past experiences can influence green investments. Data are gathered from 247 managers about their past experience and their employer’s performance data. These data are combined with managerial responses to a vignette-based experiment, which required managers to make green investments based on a decision scenario where they are exposed to different types and strength of stakeholder pressure (from consumers and the community). Results suggest that managers’ years of experience, their employers’ financial performance, and their employers’ market performance influence investment decisions even when making decisions under new and different set of circumstances. While the employers’ financial performance influences managers to invest more, the employers’ market performance only influences managers’ investment in the presence of either high consumer or high community pressure. Compared to less-experienced managers, experienced managers invest more in response to consumer pressure but less in response to community pressure. Practical and theoretical implications of these findings in green management are explored.     

Do You See What I See? A Simulation Analysis of Order Bundling within a Transparent User Network in Geographic Space

The Physical Internet (PI) concept presents a radical change with the aim to revert the unsustainable practices that are used for transporting goods. It identifies dedicated freight flows and transforms them into transparent open logistics networks which can be accessed by other users, such as shippers and carriers. In this paper, we test the universal network openness in which the users can tap into the PI network and place orders that will be assigned to the nearest available transport service and consequently delivered to the order sender. The objective of our paper is to investigate the impact of inserting extra service points into existing dedicated freight flows of a service‐driven company. We simulate different transparency levels and routings to new pickup locations and evaluate the impact in terms of altered lead times, covered distances, and fill rates. The novel aspects presented herein are (1) deliveries based on decentralized location detection of the nearest order sender, (2) dynamically changing speed parameters of agents within specific geographic clusters based on their geo‐locations in order to account for congestion levels, (3) more realistic routing strategies that consider the urban layout, and (4) transparent querying of nearest agents in space and time that meet specific conditions such as current ongoing processes, available capacity, and position. Finally, we identify the impact from a general/holistic perspective that emerges once extra orders are assigned to the service‐driven company's fleet.     

What is the value of corporate sponsorship in sports?

This paper investigates the stock market reaction to investor mood swings resulting from the Indian Premier League (IPL) cricket matches. We find that stocks listed on the Bombay Stock Exchange (BSE) that sponsor the IPL cricket are unaffected by the cricket matches. This finding is robust along two lines: (a) the effect is insignificant both statistically and economically which we demonstrate using a simple trading strategy; and (b) results hold across a wide range of portfolios. Our results, both statistical and trading strategy-based, suggest that the portfolios of companies that sponsor cricket in India are efficient. Our findings stand in sharp contrast to the evidence obtained by the broader sports literature suggesting that sports actually impact stock returns, driven principally by psychological factors.     

When Will the “Glass Door” Be Broken?

During the past year,Sinopec's Maotai spirit scandal and the state-run banks' unreasonable fee collection made reforming the monopolized sectors more desired.How to break monopoly is also one of the hottest topics among the representatives and members at this year's NPC and CPPCC.During the NPC and CPPCC,several representatives and members called for the earliest formulation of     

Decomposing the effect of advertising: What happens in the retail channel?

The diverging interests of manufacturers and retailers famously give rise to the double marginalization problem but have consequences far beyond pricing. Advertising is another marketing instrument that is under the control of the manufacturer but its ultimate effect on consumer demand also depends on retailers’ pricing decisions. We decompose the effect of advertising in the channel and highlight an additional route through which advertising affects sales, namely via the changes in the retail price that a strategic retailer makes in response to changes in demand following manufacturer advertising. The total demand effect of advertising thus comprises the direct effects of advertising on market shares, and the indirect effects coming through adjustments that the retailer makes to the in-store prices of all the brands in a given product category in response to the shifted demand due to advertising. We match advertising data for four different categories (both food and non-food) to store-level scanner panel data, which also include information on wholesale prices. Controlling for wholesale prices, we establish in a reduced-form model that the retailer reacts to manufacturer advertising by changing retail prices instead of simply imposing a constant markup on the wholesale price. To further explore the role of the strategic response of the retailer in a systematic fashion and quantify the effects derived in the decomposition, we estimate a discrete-choice model of demand and determine the magnitude of the direct and indirect effects. We find that the indirect effect of advertising through retailer prices is about half the size of the direct effect, and thus substantively affects advertising effectiveness.     

“Marketing Managers” in the Context of Global Supply Chains: Functional Versus Multiple IQ Competencies

Managerial scholars have suggested that “g” score (i.e., intelligence) tests are not enough to assess and select the appropriate candidates for some jobs. Other dimensions can play just as important a role in employee performance. Thus, the purpose of this article is to expand our view in terms of criteria that may be used as it relates to global supply chain managers. We present a nine-base typology to assist researchers and managers in assessing the true dynamics of global supply chain manager intelligence. The typology of intelligence includes the dimensions of cognitive, social, political, emotional, structural, intuition, experiential, creative, and network. We build our model by using intelligence dimensions from management, industrial organizational psychology, marketing and organizational behavior, and perspectives that include relational contracting norms, relationship marketing, networking, and communications. We propose that global supply chain managers need all nine bases to perform well in the global business arena.     

What Role for the EPAs in the Caribbean?

The aim of this paper is to consider the possible implications of an EPA between the EU and the Caribbean. The focus is on the Caribbean economies, and on the question of what form of EPA might be pro‐development and pro‐poor for the region. The discussion outlines the specificities of the Caribbean region, and some of the economies therein as well as detailing the key analytical issues which need to be considered. The empirical analysis focuses on examining patterns of trade by product and geographical source at a highly detailed level of disaggregation. The analysis suggests that future EPA arrangements are more likely to lead to significant trade diversion as opposed to trade creation or trade reorientation. MFN liberalisation would serve to minimise trade diversion, but in turn is likely to lead to greater adjustment costs. If the EPAs are to be pro‐development and pro‐poor than maintaining/increasing levels of market access to the EU, and ensuring appropriate levels of assistance and aid will be critical.     

How Could the South Respond to Secular Stagnation in the North?

Developed countries face the risk of a sustained lack of aggregate demand, that is, secular stagnation. Demand‐oriented growth models emphasising the balance‐of‐payments constraint raise concerns about attendant adverse growth impacts on developing countries from reduced export growth. These concerns are well‐founded, albeit less serious than the simplest versions of these models would imply. Relaxing their assumptions and emphasising cumulative causation forces from domestic‐demand growth and relative price effects indicates how developing countries can combine export and domestic‐demand based strategies and how changed policies can maintain rapid growth while reducing the income elasticity of import demand.     

Will he buy a surprise? Gender differences in the purchase of surprise offerings

In the last few years, retailers have introduced numerous products that intentionally conceal some information from the consumer at the time of decision making. While prior research has identified contexts in which customers are attracted to such offerings in the aggregate, heterogeneity in customer proclivities is not well-understood. In the present paper, we examine the effect of gender on choice of surprise (vs. certain) offerings at the point of purchase. We propose and find that, on average, men are less likely to opt for a surprise offering compared to women. We examine multiple mechanisms that could explain this effect – emotionality, desire for exploration, and desire for control – and find the strongest support for the latter, demonstrating that it is men's stronger desire for control over the purchase outcome that drives their preference for certain (vs. surprise) offerings. Consequently, contexts or product categories that make it acceptable for men to let go of control attenuate the observed gender difference. We present data from a travel services firm, an online product catalog, and both field and lab studies, providing robust support for this theory across multiple product categories and participant populations. This work concludes with a discussion of the potential boundary effects of the observed gender difference, a managerial roadmap that delineates the ways in which marketers can offer surprise offerings more fruitfully to both men and women, and recommendations for future research.     

What is the best proxy for liquidity in the presence of extreme illiquidity?

This paper aims to indicate the best daily proxy for unobserved liquidity in the presence of extreme movements on the market. We apply copulas to investigate the dependence between benchmarks based on intraday prices and proxies based on daily data. We focus on the tail dependence between both types of measures. Our results show that when the market experiences extreme illiquidity, the Closing Quoted Spread (CQS) based on daily closing bid and ask prices is superior to other percent-cost low-frequency proxies. We find the highest tail dependence coefficients for CQS and either the Percent Effective Spread or the Percent Quoted Spread.     

“Deal of the Day” Platforms: What Drives Consumer Loyalty?

“Deal of the Day” (DoD) platforms have quickly become popular by offering savings on local services, products and vacations. For merchants, these platforms represent a new marketing channel to advertise their products and services and attract new customers. DoD platform providers, however, struggle to maintaining a stable market share and profitability, because entry and switching costs are low. To sustain a competitive market position, DoD providers are looking for ways to build a loyal customer base. However, research examining the determinants of user loyalty in this novel context is scarce. To fill this gap, this study employs Grounded Theory methodology to develop a conceptual model of customer loyalty to a DoD provider. In the next step, qualitative insights are enriched and validated using quantitative data from a survey of 202 DoD users. The authors find that customer loyalty is in large part driven by monetary incentives, but can be eroded if impressions from merchant encounters are below expectations. In addition, enhancing the share of deals relevant for consumers, i.e. signal-to-noise ratio, and mitigating perceived risks of a transaction emerge as challenges. Beyond theoretical value, the results offer practical insights into how customer loyalty to a DoD provider can be promoted.     

What in the World is Going On?

Advertisers grappling with the vagaries of a global marketplace require a perspective that is comprehensive of the issues affecting their craft. The trade press is one information source that is commonly mined by agency researchers seeking to remain current on the international front. This article attempts to transform impressions gained from such casual reading into a more systematic and useful framework for interpreting the global marketplace. Drawing on a content analysis of information presented in the pages of the "International" section of the trade paper Advertising Age, a perspective of international marketing is advanced, the utility of that perspective to advertising researchers is explored, and the implications of that perspective for international advertising strategy are examined.