Shareholders and stakeholders: How do directors decide?

This study examines how directors make decisions that involve shareholders and other stakeholders. Using vignettes derived from seminal court cases, we construct an index of directors' shareholderism as a general orientation on this issue. In a survey of the entire population of directors and CEOs in public corporations in one country, we find that directors' personal values and roles play an important part in their decisions. Directors and CEOs are more pro‐shareholder the more they endorse entrepreneurial values—specifically, higher achievement, power, and self‐direction values and lower universalism values. While employee representative directors exhibit a lower baseline level of shareholder orientation, they nonetheless often side with shareholders. Copyright © 2011 John Wiley & Sons, Ltd.     

Fish: Friend or foe? Food policy and subpopulation warnings for consumers

Fish is a healthy food that provides valuable nutrients for heart health and cognitive development. However, for some subpopulations, consuming fish containing higher levels of methylmercury may pose a health risk. This research seeks to identify the impact of including a seafood warning disclosure in the advertisement of a can of tuna fish on consumers’ purchasing behaviors. An experimental survey is employed to examine the resulting impact for two segments of the population – those considered at risk for methylmercury overexposure and all others. Findings indicate the use of warning disclosures increases respondents’ negative product perceptions without significantly altering positive product perceptions. Attention to the warning is short-lived and does not significantly impact perceived healthful levels of consumption. Modeling purchase behavior using a random utility choice framework indicates that the inclusion of a warning in an advertisement of a can of tuna fish has no adverse affect on purchase behaviors for the population not at-risk and may, in certain cases, serve to decrease tuna purchase likelihood for “at-risk” respondents. Communicating advisory statements on healthy products, such as fish, creates a public health challenge; message pre-testing is imperative.     

Are China’s regional agricultural productivities converging: How and why?

This article tests the hypotheses of convergence to a single level of total factor productivity (TFP), and a steady state of TFP growth rate in China’s agricultural sector. Based on multilateral TFP estimates we found that China’s agricultural sector has rebounded in recent years from a slower TFP growth in the 2005–2007 period. While convergence test results confirm a “catch-up” effect that provinces with lower TFP levels tend to grow faster than others, estimated rates of β convergence are conditional on how we capture the heterogeneity effect across regions. The rates of β convergence range from 0.016 to 0.039 under different model specifications. Estimates show that higher growth rates of educational attainment, R&D, and intermediate goods density (per unit of labor) can enhance TFP growth. Unfortunately, there is no evidence of an overall σ convergence, indicating that TFP levels are not converging except in the South region. It implies that to catch up with leading provinces, it would require extra efforts for those lagging behind by increasing their region-specific research investment, promoting rural educational attainment, and enhancing embodied technical change.     

Food security and public agricultural spending in Bolivia: Putting money where your mouth is?

This paper explores the reduction of food insecurity in Bolivia, adopting a supply-side approach that analyzes the role of agricultural spending on vulnerability to food insecurity. Vulnerability to food insecurity is captured by a municipal-level composite indicator for all 327 municipalities in 2003, 2006, and 2007. Econometric analysis indicates that levels of public agricultural spending are positively associated with high or very high vulnerability—especially investments in infrastructure and research and extension. The authors interpret this to indicate that agricultural spending allocation is driven by high or very high vulnerability levels, but has small effects on reducing high vulnerability.     

How does population density influence agricultural intensification and productivity? Evidence from Ethiopia

This study uses household-level panel data on smallholder farmers in Ethiopia to estimate how rural population density (RPD) affects agricultural intensification and productivity. Our results suggest that higher RPD is associated with smaller farm sizes, and has a positive effect on input demand, represented by increased fertilizer use per hectare. Overall, increased input use does not lead to a corresponding increase in staple crop yields, and thus farm income declines as population density increases. This suggests a situation where farmers in areas of high RPD may be stuck in place, unable to sustainably intensify in the face of rising RPD and declining farm sizes.     

Triple play: How do we secure future benefits?

Recent technological developments make it possible to provide all telecommunications services (TV, telephony and internet) via the TV cable and fixed telephony network. Moreover, a new infrastructure based on optical fibre (to the home) is emerging in some places, which may in the future replace both existing networks. Making use of the available economic literature, the paper analyzes some of the consequences of the emergence of one electronic communications market. It focuses on two policy issues: the consequences of convergence of technologies and competition between networks for regulation in the short and medium runs, and the role of public investment in the rollout of optical fibre. It concludes that the present state of regulation may have some undesirable effects in the face of convergence and that public investment in a new general purpose infrastructure may have important advantages.     

How much do CEOs really matter? Reaffirming that the CEO effect is mostly due to chance

How much of the variance in firm performance can be attributed to CEOs? This question has been the focus of a long debate in management research. In a recent study, I showed that a large portion of the performance differences that are often attributed to CEOs might in fact be due to chance. In a recent article, Quigley and Graffin argue that my conclusions can be avoided if more advanced methodological approaches are applied. Here I show that this is not the case, in fact if more realistic assumptions of how chance can affect firm performance are made, the effect of CEO leadership is almost indistinguishable from the effect of chance, independent of the estimation methodology. Copyright © 2016 John Wiley & Sons, Ltd.     

Does agricultural trade liberalization increase risks of supply-side uncertainty?: Effects of productivity shocks and export restrictions on welfare and food supply in Japan

Agriculture is the focus of much contention in free trade negotiations. The Japanese government is against liberalizing the rice trade on the grounds that it would threaten “national food security” in the events of such shocks as crop failure and embargoes. Trade liberalization is expected to make the Japanese economy more dependent upon food imports and, thus, more susceptible to these risks. Using a computable general equilibrium model with a Monte Carlo simulation, we quantify the welfare impacts of productivity shocks and export quotas by major rice exporters to Japan and found little evidence of Japan suffering from such shocks.     

Knowledge management and coopetition: How do cooperating competitors balance the needs to share and protect their knowledge?

Coopetitors need to manage interorganizational knowledge flows to balance cooperative knowledge sharing and competitive knowledge protection. The question of how to balance these has received little research attention, with most studies analyzing knowledge sharing or protection separately. To address this gap, we develop a theoretical framework on coopetitive knowledge sharing and knowledge protection practices. This framework is based on a literature review of coopetitive interorganizational knowledge management. To complement and refine this initial framework, we build on insights from a qualitative study that gathered data from 11 semistructured interviews with key informants of Latin American firms. We show that a balance between knowledge sharing and knowledge protection in coopetition is facilitated when coopetitive interorganizational knowledge management helps coopetitors share general and project-specific knowledge while they withhold core knowledge about their firms and clients. To achieve this balance, firms combine formal and informal knowledge protection practices. As theoretical implications, we provide a fine-grained and synoptic understanding of the characteristics of knowledge management among coopetitors. As managerial implications, we call managers' attention to the need to find a balance between knowledge sharing and protection that will help clearly define what kind of knowledge is shared or protected when firms cooperate with rivals.     

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.     

An empirical study of manufacturing flexibility of exporting firms in China: How do strategic and organizational contexts matter?

Using evidence from exporting firms in China, this research aims to determine the conditions that foster manufacturing flexibility and the way in which firms support it. The contingency perspective and the competence and capability theory are utilized to develop a framework to enhance the knowledge of internal competence, external flexibility, and manufacturing performance, and the understanding of the moderating roles of strategic and organizational choice on the competence-flexibility and flexibility-performance relationships. Empirical evidence from a sample of 222 export product/market ventures confirmed the main effect that manufacturing, assembly outsourcing, and marketing competencies support a firm's manufacturing flexibility and in turn enhance manufacturing performance. Several notable moderating effects were also identified. Although a strategic emphasis on low-cost manufacturing and long-term contracting weakens a firm's transformation of core competencies into flexible capabilities, specific organizational choices regarding private ownership and direct exporting strengthen the conversion of manufacturing flexibility to superior manufacturing performance.     

Digitalization,business models,and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?

Digital transformation is requiring companies to rethink and innovate their business models (BMs). However, small- and medium-sized enterprises (SMEs) have scarce time and resources for experimenting with their BMs and implementing new strategies. This paper examines whether SMEs that undergo digital transformation perform better if they allocate more resources for BM experimentation and engage more in strategy implementation. An empirical study was conducted on 321 European SMEs that actively use social media, big data, and information technology to innovate their BMs. Furthermore, structural equation modelling showed positive overall firm performance effects of more resource allocation to BM experimentation and more engagement in practices of strategy implementation. These effects were mediated by BM experimentation practices and company innovativeness. Moreover, fuzzy-set qualitative comparative analysis (fsQCA) revealed the presence of equifinality by identifying different configurations in which these antecedent conditions affect overall firm overall performance. The results of two methodological approaches showed that SMEs may take different routes to improve their performance when digital transformation is changing their BM. This paper is one of the first to analyse how SMEs can handle the impact of digitalization by spending more time and effort on innovating their BMs. Practical and policy implications are discussed.     

Cross‐border acquisitions by state‐owned firms: How do legitimacy concerns affect the completion and duration of their acquisitions?

Research summary: Cross‐border acquisitions may raise legitimacy concerns by host‐country stakeholders, affecting the acquisition outcomes of foreign firms. We propose that theorization by local regulatory agencies is a key mechanism that links legitimacy concerns with acquisition outcomes. Given that theorization is time consuming and its outcome is uncertain, we argue that state‐owned foreign firms experience a lower likelihood of acquisition completion and a longer duration for completing a deal than other foreign firms. Moreover, we introduce a set of firm characteristics (target public status, target R&D alliances, and acquirer acquisition and alliance experiences) that may affect the threshold level of legitimacy, thereby altering the proposed relationships. Our framework and findings provide useful implications for institutional theory on its core concept of legitimacy. Managerial summary: Cross‐border acquisitions by state‐owned foreign firms may lead to national security concerns and thus debates and discussions among local regulatory agencies. We argue that such institutional processes may reduce the likelihood of acquisition completion and prolong the duration of acquisition completion. Using cross‐border acquisitions in the United States, we find that acquisitions by state‐owned foreign firms are not less likely to be completed than acquisitions by other foreign firms, but they take more time to be completed. Moreover, state‐owned foreign firms are less likely to complete an acquisition when the target firm has more R&D alliances. However, their acquisition experience and alliance experience in the host country increase the likelihood of acquisition completion, whereas their alliance experience alone shortens the acquisition duration. Copyright © 2016 John Wiley & Sons, Ltd.     

A ‘Common Food Policy’ for Europe: How governance reforms can spark a shift to healthy diets and sustainable food systems

More than half of adults in the European Union (EU) are now either overweight or obese (53%). Non-communicable diseases (NCDs), many of which are diet-related, account for 70% of mortality in Europe and a growing share of healthcare costs. While eating habits have an important role to play in NCD prevention, consumption patterns across the EU are diverging significantly from recommended diets. There is growing consensus on the solution: a series of coordinated and wide-ranging policy interventions to build healthy ‘food environments’.This article argues that EU governance structures remain ill-adapted to the systemic nature of this and other challenges in food systems (e.g. climate change, biodiversity loss, food poverty): conflicting objectives and missed synergies are identified between different policy areas (agriculture, trade, health, environment, etc.) and between different levels of governance (EU, national, local). An integrated food policy framework – a ‘Common Food Policy’ – is therefore required to meet the EU’s public health and sustainability objectives. It identifies four distinct aspects of the governance shift required to promote healthy diets and build sustainable food systems in Europe: (i) coherence across policy areas; (ii) coherence across governance levels; (iii) governance for transition; and (iv) food democracy. Blueprints for a Common Food Policy are already emerging, and are ripe for consideration, development, and implementation by the European institutions.     

How much energy will your NGN consume? A model for energy consumption in next generation access networks: The case of Spain

The contribution to global energy consumption of the information and communications technology (ICT) sector has increased considerably in the last decade, along with its growing relevance to the overall economy. This trend will continue due to the seemingly ever greater use of these technologies, with broadband data traffic generated by the usage of telecommunication networks as a primary component. In fact, in response to user demand, the telecommunications industry is initiating the deployment of next generation networks (NGNs). However, energy consumption is mostly absent from the debate on these deployments, in spite of the potential impact on both expenses and sustainability. In addition, consumers are unaware of the energy impact of their choices in ultra-broadband services. This paper focuses on forecasting energy consumption in the access part of NGNs by modelling the combined effect of the deployment of two different ultra-broadband technologies (FTTH-GPON and LTE), the evolution of traffic per user, and the energy consumption in each of the networks and user devices. Conclusions are presented on the levels of energy consumption, their cost and the impact of different network design parameters. The effect of technological developments, techno-economic and policy decisions on energy consumption is highlighted. On the consumer side, practical figures and comparisons across technologies are provided. Although the paper focuses on Spain, the analysis can be extended to similar countries.     

Perceptions of Material Resources in Innovation Projects: What Shapes Them and How Do They Matter?

Studies on the role of material resources for team performance in innovation projects have provided inconclusive results. This paper focuses on team members' perceptions of the provided material resources' adequacy to address this gap. Understanding what drives perceptions of material resource adequacy may not only reconcile conflicting results in the literature, but may also provide much‐needed guidance for project funding, so as to maximize innovation project performance. Further, the analyses in this paper differentiate between two outcome dimensions of innovation project performance, namely, the degree of new product quality and new product novelty, and thus offer a more fine‐grained analysis of the relationship between perceptions of material resource adequacy and innovation project teams' performance. The posited hypotheses are tested using a sample consisting of survey data from 121 innovation projects in the electronics industry. To avoid common source bias, data from different respondent groups, that is, team leaders, team members, and team external managers of the examined innovation projects, were used. The results of the regression analyses identify team potency and workload as socio‐cognitive drivers of innovation project teams' perceptions of material resource adequacy. Moreover, it is found that perceived material resource adequacy relates positively to new product quality, while it relates negatively to new product novelty. This paper thus provides an important step toward disentangling the ambiguity surrounding the relationship between material resource adequacy and innovation project teams' performance, showing that a key finding of cognitive psychology seems to hold also on the team level of inquiry: the significant influence of socio‐cognitive factors on perceptions. This finding paves the way for putting more attention in research on innovation and project management on cognitive aspects, in particular considering mechanisms behind the formation of team perceptions. Further, the results provide evidence for differential effects of perceived material resource adequacy on innovation project performance, depending on the indicators used for measuring the outcomes of an innovation project. This contributes necessary detail to studying the relationship between material resource adequacy and innovation project performance, which so far has produced inconclusive results, suggesting that these contradictions might result to a large degree from different operationalizations of innovation project performance. On a practical level, the findings of this paper suggest that material resource adequacy seems not to be a catch‐all variable, influencing innovation project outcomes in a uniform way. It appears to be a useful lever for influencing team outcomes depending on the desired result, which may be manipulated by shaping team variables that exert a systematic influence on perceptions of material resource adequacy.     

Network resource stocks and flows: how do alliance portfolios affect the value of new alliance formations?

We examine how new network resources accessed through alliance formations interact with network resources present in a firm's alliance portfolio. We test our theoretical model using event study methodology and data from the global air transportation industry. We find that the market rewards firms forming alliances that contribute resources that can be synergistically combined with firms' own resources as well as with network resources accessed through their alliance portfolios. Our results also indicate that the market penalizes firms entering into alliances that create resource combinations that are substitutes to resource combinations deployed by existing alliance partners. Copyright © 2011 John Wiley & Sons, Ltd.     

Reflections on the interplay between cognition,action and outcomes in industries and business markets: What have we learned so far and where might we go next?

This essay traces the genesis and evolution of research pertaining to the interplay between cognition, action, and outcomes in industries and business markets and offers suggestions for the advancement of theory, research, and practice. Through a process of autobiographical self-reflection, covering the period from the mid-1980s–present, the author offers his views on developments and progress, first at a philosophical level, and then in terms of theory development and empirical advances, the development and application of methods for mapping actors' representations of strategic knowledge, and what this body of work has contributed and might contribute, going forward, to the design and evaluation of intervention tools and practices to aid strategic adaptation.     

Contemporaneous Loan Stress and Termination Risk in the CMBS Pool: How “Ruthless” is Default?

This study analyzes the impact of contemporaneous loan stress on the termination of loans in the commercial mortgage‐backed securities pool from 1992 to 2004 using a novel measure, based on changes in net operating incomes and property values at the metropolitan statistical area‐property‐type‐year level. Employing a semi‐parametric competing risks model for a variety of specifications, we find that the probability of default is extremely low even at very high levels of stress, although the coefficient estimates of greatest interest are very statistically significant. These results suggest substantial lender forbearance and are consistent with previous research that models default as a “gradual dynamic process” rather than a “ruthless” exercise once “in the money.”