The Role of Local Context in Headquarters–Subsidiaries Relationships: A Global Analysis of the Literature

This study reviews the literature on multinational corporations’ headquarters–subsidiaries relationships, focusing on the role of the local context and its influence on subsidiaries in developed and emerging markets or countries. The author searched the literature using several terms directly related to these issues. The findings demonstrate that subsidiaries can only operate successfully in foreign locations by adjusting their policies to fit into the local environment because there are multiple contexts. Multinational corporations manage the local context by integrating their home behavior and that of the subsidiaries’ operating environments. A framework for identifying and managing different local contexts is proposed.     

Angels or Sharks? The Role of Personal Characteristics in Angel Investment Decisions

We use actual negotiations between angel investors and entrepreneurs to study the impact of personal characteristics on investment outcomes. We construct a unique data set with 707 investment requests led by 1,089 entrepreneurs and find that the personal characteristics of the entrepreneur, including gender, race, and age, are correlated with requested valuations, the likelihood that an offer is received, and the implied valuation when an angel investor extends an offer. Shared personal characteristics between entrepreneurs and investors also affect the likelihood that an investor makes an offer, the entrepreneur accepts an offer, and the implied valuation when an offer is extended.     

Cannibalization or synergy? Consumers' channel selection in online–offline multichannel systems

This paper develops and empirically validates customer shopping motives taking account of customer channel selection in multichannel systems. As each channel is associated with certain advantages and disadvantages from a customer's perspective, we develop – based on behavioral considerations – a customer typology to classify different segments of customers. This enables us to empirically analyze the interrelationship between distinct shopping motives prior marketing research has suggested and cannibalization and synergetic effects in online–offline multichannel systems. Our results show that a higher degree of customers' convenience orientation in contrast to the degree of risk aversion and service orientation encourages the selection of the online channel over the offline channel. In addition, we develop and empirically analyze a typology of customers to classify distinct segments of consumers, highlighting the associated interrelationship of individual shopping motives and cannibalization and synergetic effects. Our results indicate that the desire for service, rather than risk aversion, could potentially cannibalize customers away from the online channel.     

The Role of Asia in World Economy

With the upgrading of Asia‘s global role, she also shows her care about her role in international organizations.     

How Does Consumers' Financial Vulnerability Relate to Positive and Negative Financial Outcomes? The Mediating Role of Individual Psychological Characteristics

Vulnerable consumers are at particular risk of financial detriment due to, for example, low financial literacy or numeracy, high debt, low income, or impactful changes in personal circumstances. We introduce a comprehensive and formative measure of financial vulnerability that integrates these risk factors and is grounded in definitions of vulnerability from financial regulation bodies and government agencies such as the Consumer Financial Protection Bureau. Across three studies of US individuals, we assess the nomological validity of this measure of financial vulnerability through its relationship with positive and negative financial outcomes (e.g., savings levels, paying credit card balances in full each month, being in arrears) as well as relevant psychological characteristics (e.g., personal savings orientation [PSO], money management skills, financial self‐efficacy). Moreover, we examine whether and how these psychological characteristics mediate the relationship between financial vulnerability and financial outcomes. We conclude with an overview of implications for policy makers and business practitioners.     

Local Heroes,Regional Champions or Global Mandates? Empirical Evidence on the Dynamics of German MNC Subsidiary Roles in Central Europe

SUMMARY

In this paper we analyze the influence of a subsidiary's external environment, of its task and of its mode of ownership and its mode of market entry on the development of its role for the case of German subsidiaries in Central Europe. We define a subsidiary's role as a three-dimensional construct, consisting of a subsidiary's tasks, its value chain activities and its respective geographical scope. Drawing on a sample of 99 subsidiaries from the Czech Republic, Hungary, and Poland, we find that a subsidiary's host country, its tasks and its mode of market entry influence the development of its role. We find no evidence for the influence of subsidiary's mode of ownership. Especially, “geographical market proximity seeking”-subsidiaries seem to follow a different path of development than subsidiaries where this task is of minor importance as they tend to perform a smaller number of value chain activities and tend to expand these value chain activities with regard to their geographical scope more incrementally.     

Beneficiaries or policyholders? The role of women in Swedish life insurance 1900–1950

In the second half of the nineteenth century, women were depicted as dependents and beneficiaries and men as breadwinners and policyholders in Swedish life insurance sales promotions. Furthermore, life insurance was assumed to be a middle-class concern. The notion of the life insurance policyholder as ‘middle class’ and ‘male’ was first contested with the introduction of industrial life insurance, i.e. life insurance for the working classes and also, to a large extent, the rural population in Sweden. The industrial life insurance business contributed to the growth of a large proportion of female life insurance policyholders from the rural and working classes. This article illuminates the contrast between ideological representations of women as the opponents of life insurance in sales promotions and the real actions and roles of women in business history.     

Who Feels Credit Constrained in Europe? The Role of Social Capital

This paper analyzes the influence of social capital in consumers' perceptions of their borrowing constraints, which affect numerous financial decisions. Social capital is a multidimensional concept that concerns consumers' ability to obtain benefits from their engagement in social activities and social networks. To test the hypotheses, we rely on data from the European Social Survey. The results indicate that the four indicators of social capital (bonding capital, bridging capital, trust in people, and trust in institutions) are negatively associated with perceived borrowing constraints, and that some of these associations are moderated by income. The relationship of bonding capital with perceived borrowing constraints appears to be stronger than that of bridging capital, and trust in people reveals a stronger association with the outcome variable than trust in institutions. These results suggest several implications for practice and theory.     

Political Marketing Segmentation–The Case of UK Local Government

SUMMARY

This article considers the nature and use of segmentation in political marketing. The importance of an awareness of political marketing at a more local level will become particularly important with the onset of regional government. The article particularly concerned with segmentation in local government where there has been little empirical research. The results of a survey amongst local government officers are presented. The article concludes that a significant minority of local government officers use segmentation. The key factors facilitating the use of segmentation were found to be education, experience, the role of the chief executive and central government pressure.     

Consumer Bankruptcy: A Right or a Privilege? The Role of the Courts in Establishing Moral Standards of Economic Conduct

The Norwegian Consumer Bankruptcy Act was passed 17 July 1992 to give persons with "serious debt problems (. . .) the possibility to gain control over their economy." The Act contains provisions for negotiations between the debtor and the creditors, for court rulings on repayment plans, and for a discharge of the debts not covered by the plan. The origin of the Act was a social welfare approach to the problem of overindebtedness. However, the Act embodies an inherent contradiction in that it also includes moral elements in order to prevent it from exerting a negative influence on the perceived obligation to pay one's debts. This contradiction has given the courts a wide scope of discretion in the application of the Act. As a result, cases are treated differently in different jurisdictions. Some judges put more emphasis on moral evaluations than others. This situation also gives room for strategic action from creditor groups who typically are repeat players in cases of consumer bankruptcy. In this way the more objective, social welfare approach of the Act is undermined.     

European Competition in Woollen Cloth, 1870–1914: The Role of Shoddy

It has long been recognised by historians that Quakers are overrepresented in the ranks of successful businessmen during the formative phases of Britain's industrialisation in the eighteenth and early nineteenth centuries. This article uses primary records to confirm the validity of Raistrick's pioneering work on Quaker networks as an important source of capital funding. It extends Raistrick's work by focusing attention on the Meeting House system as an institution conducive both to the internal surveillance of business conduct and the maintenance of commercial confidence. The article concludes with a case study of Quaker entrepreneurship in the early railway sector.     

Fostering Consumer–Brand Relationships in Social Media Environments: The Role of Parasocial Interaction

As brands solidify their place in social media environments, consumers' expectations have amplified, thus spurring the development of technologies to assist with the engagement process. Understanding the ways in which brands can preserve the one-to-one characteristics and intimate relationship qualities offered by social media while still meeting consumer expectations amidst the escalating volume of interactions has become essential. Drawing on the communications literature, this research proposes that parasocial interaction (PSI) theory may be used as a theoretical lens for designing successful social media strategies. Three studies, using a multi-method approach, provide evidence of PSI's role in the development of positive relationship outcomes. Mediation analysis reveals that this sense of feeling connected with the brand goes beyond the interaction itself and drives increased feelings of loyalty intentions and willingness to provide information to the brand. Evidence from this research suggests that these effects may not hold when consumers are aware of the possibility that the brand's social media response may be automated. These findings offer marketers theoretical guidance for fostering relationships in social media environments.     

The Role of Business Schools in Ethics Education in Iceland: The Managers’ Perspective

This article explores managers’ views on various ways in which business schools can contribute to providing solid ethics education to their students, who will ultimately become the next generation of business leaders. One thousand top level managers of Icelandic firms were approached and asked a number of questions aimed at establishing their view on the relationship between ethics education and the role of business schools in forming and developing business ethics education. Icelandic businesses were badly hurt by the 2008 crisis, and therefore Iceland provides an interesting foundation for an empirical study of this sort as the aftermath of the crisis has encouraged managers to consciously reflect on the way their business was and should be conducted. Based on the results of the survey, a few main themes have developed. First, it appears that according to practicing managers, business schools should not be held responsible for employees’ unethical behavior. Nevertheless, managers believe that business schools should assist future employees in understanding ethics by including business ethics in teaching curricula. Second, managers believe that the workplace is not where ethics are learned, while also insisting that former students should already have strong ethical standards when entering the workplace. Third, managers call for business schools not only to contribute more to influencing students’ ethical standards, but also to reshape the knowledge and capabilities of practicing managers through re-training and continuous education. Based on the results of the study, the article also offers some recommendations on how to begin reformulating the approach to business ethics education in Iceland, and perhaps elsewhere.     

The Role of Implicit Theories in Evaluations of “Plus-Size” Advertising

In this research, we examine plus-size female consumers' reactions to the use of plus-size female models in advertising. We demonstrate that not only objective body size but also implicit beliefs about the malleability of one's size affect attitudes toward a product advertised by a plus-size model. Further, we find that this interactive effect is mediated by perceived similarity to the model, and appears only when the plus-size model is used to advertise a body-relevant product. These findings contribute to the burgeoning study of larger-sized female models in advertising and suggest that “plus-size” is not a one-size-fits-all label.     

The Influence of Christian Identity on SME Owner–Managers’ Conceptualisations of Business Practice

This paper reports on the findings of a qualitative study to understand how active adherence to the Christian faith influences the way SME owner–managers conceptualise their business practices. The study was based on in-depth interviews with 21 Christian SME owner–managers in Germany and the UK. Using a socio-psychological approach, the data analysis yielded a range of linguistic and conceptual resources that are peculiar to Christian discourse and that have the potential to influence business activity in rather distinctive ways. This paper particularly focuses on those Christian concepts that could be regarded as distinct ‹frames’ for action. It outlines what effect these concepts had on the respondents and how they were related to business practices. The paper also discusses how this study could inform further research into the influence of other socio-cultural forms of identity on economic actors’ conceptualisations of their own practice.     

The geography of public services employment in Europe: concentration or dispersion?

It is widely known that the location of public services generates, directly and indirectly, important economic effects. The objective of this article is to examine the spatial distribution of employment in public services in 124 European regions in order to detect the existence of some pattern of spatial location. To do so we employ various exploratory spatial analysis techniques, such as the calculation of the Moran's I and the Geary's C statistics. The results obtained highlight the existence of remarkable differences among the European regions, and more concretely between the Scandinavian and the Mediterranean regions, differences that deserve further study.     

What Explains the Gender Gap in Financial Literacy? The Role of Household Decision Making

Using newly collected data from the RAND American Life Panel, we examine potential explanations for the gender gap in financial literacy, including the role of marriage and who within a couple makes the financial decisions. Blinder–Oaxaca decomposition reveals the majority of the gender gap in financial literacy is not explained by differences in the characteristics of men and women—but rather differences in coefficients, or how literacy is produced. We find that financial decision making of couples is not centralized in one spouse although it is sensitive to the relative education level of spouses.     

The Roles of HRM in CSR: Strategic Partnership or Operational Support?

As the implementation of corporate social responsibility (CSR) strategy requires promoting employee participation and initiating meaningful changes in organisational culture, the involvement of the human resource management (HRM) function in policy formulation and implementation is highly desirable. The relationship between the HRM and CSR functions is, however, under-investigated than other areas. Hence, there is a lack of clarity concerning HRM roles and the conditions under which they may be strategic or operational in nature. By drawing on data from interviews with 29 CSR and HRM professionals of large organisations in New Zealand, this paper argues that the role and contribution of the HR function in CSR is contingent on organisational variables such as the CSR structure, the scope and application of CSR and the nature of the HR functions. It concludes that in such contexts HRM is more likely to offer operational support in executing CSR rather than strategic input.