Music Piracy on the Web – How Effective are Anti-Piracy Arguments? Evidence from the Theory of Planned Behaviour

This article presents the results of an experiment in which three different types of anti-piracy arguments were tested among 139 young adult consumers susceptible to engage in swapping music over the Internet: (1) stressing the negative personal consequences of pirating music, (2) stressing the negative consequences for the artists, and (3) stressing the unethical nature of this behaviour. The psychological determinants of music piracy behaviour were modeled in part with (1991) Ajzen’s theory of planned behaviour. The results show that the intention to swap music on-line depended on one’s attitude toward music piracy, one’s perception that important others want that this behaviour be performed, and one’s perceived competency in doing so. In addition, having swapped music on-line in the past had a strong influence on one’s intention to do it again. Contrary to expectations, the anti-piracy arguments had no significant impact on the behavioural dynamics underlying on-line music piracy.     

Employee Loyalty: An Examination

This article presents and examines four different reconstructions of Ronald Duska’s argument for the thesis that employees’ loyalty to their employers is misguided. One of them is the reconstruction presented by John Corvino in this journal. The remaining three revolve around, respectively, employers’ failure to reciprocate employees’ (attempts at) loyalty, the commercial character of employment, and the instrumental character of employment. The result of the examination is that the argument does not withstand scrutiny in any of the four reconstructions. The failure of Duska’s argument, however, does not mean that employee loyalty is justified, because the burden of proof is on the defenders of the loyalty. Moreover, a different argument, which is also presented in the article, shows that the loyalty of most present-day employees to their employers is bound to be significantly limited, because of the radical changeability of corporations with publicly traded stock.     

The Chinese RMB: Its Value,Its Peg,and Its Future

The valuation of the Chinese renminbi (RMB) has drawn lots of attention lately and a great deal of pressure on the part of developed nations for revaluation. In addressing the issue of valuation, this paper develops a new purchasing power parity (PPP) index of China’s exchange rate and finds that the while undervalued, the undervaluation is neither unusual nor bad policy. Moreover, China’s overall external trade balance does not seem to be that far out of equilibrium. China’s desire to join the G-7 club is likely to result in abandoning its peg, however, despite the increased risk to its economic development.JEL Classification F310     

Outcome quality of small- to medium- sized enterprise–based alliances: The role of perceived partner behaviors

Proponents of transaction cost theory have assumed that alliance formation is motivated by environmental uncertainty, with the structure and outcomes of alliance relationships being determined by the costs versus benefits of opportunism on the part of alliance participants (Williamson 1985; Zaheer and Venkatraman 1995). Williamson argued that cooperative relationships driven by perceived efficiency are inherently prone to opportunism or “self-interest seeking with guile” (1975, p. 6). In alliance relationships, opportunism generally takes the form of negative departures from the behavioral norms established for the alliance and is usually motivated by the firm leader’s desire to improve the firm’s position, regardless of the cost to the alliance (Parkhe 1993a). The traditional focus of transaction cost theory has been on the norms established by the formal alliance relationship. These contractual mandates encompass both goal-based and relationship-based expectations. Failure to meet these types of expectations significantly, but not completely, explains the quality of outcomes for alliance relationships.A growing body of research on social control theory suggests that the social embeddedness of the alliance relationship may also establish behavioral norms against which opportunistic departures may be judged (Ouchi and Parkhe). Such norms are extracontractual or taken-for-granted expectations established by both the prior experience of the firms’ leaders and the placement of the firms’ alliance relationships within the network of interpersonal relationships maintained by the firms’ leaders. This study explores the relative impact of negative departures from both contractual and extracontractual behavioral norms on the quality of alliance outcomes, while controlling for a wide range of environmental and firm-specific factors suggested to have an impact on alliance outcome quality.Norwegian manufacturing firms that met the study’s size criteria and belonged to any one of 10 industry types were surveyed. From a list of over 7,000 small- to medium-sized enterprises (SMEs), we randomly selected and mailed surveys to the key decision leaders of over 2,500 firms, ultimately identifying, of the 433 (17.6%) owners and general managers responding, 252 (58%) that maintained alliance relationships.The results of this study challenge several assumptions regarding the determinants of alliance outcomes. A number of resource- and environment-based factors, including the firm’s industry, size, and financial strength, are not found to significantly influence alliance outcomes. The financial return provided by the SME’s alliance relationships, as an indicator of goal-based determinants, was found to be the most important factor related to outcome quality, but the results also suggested that contract noncompliance and the perceived behaviors of the SME’s alliance partners are significant as well. Additionally, the notion that SME-based alliance relationships are generally marked by assumptions of trust rather than opportunism was supported. When partner behaviors are seen or perceived to be inconsistent with either contractually mandated or socially obligated expectations, the outcomes of those relationships are negatively effected, even when the financial goals have been met. An additional finding of this study was that firm leaders make judgments regarding the quality of alliance outcomes in light of their cumulative experience with alliance relationships.     

The Nature of Managerial Work in Small Growth-Orientated Businesses

In this study we explore the daily managerial behaviour of managers of small growth-orientated businesses and contrast it to previous research of managers in large organisations. We also investigate if one background characteristic, the owner–managers functional experience, is related to daily managerial activity. More specifically, we seek to strengthen the ‘managerial work’ tradition through a replication of Mintzberg’s work (The Nature of Managerial Work, New York: Harper and Row 1973) and an extension of the ‘managerial work’ tradition to another contingency, that of small growth- oriented businesses. The study is based on direct observations of ten CEOs of small growth-orientated businesses. The research provides evidence that organisational size is an important determinant of the nature of managerial work. However, in exploring the variability that may occur in managerial work within a given size context, we failed to establish a relationship between the owner–manager’s functional experiences and daily functional work orientation. The article concludes by speculating why the nature of managerial work in small growth-orientated businesses may provide a template for management in larger (more bureaucratic) organisations.     

BEA's Regional Economic Accounts Program: Recent and Planned Improvements

This article highlights recent improvements and plans for further improvements to each of BEA’s major regional economic accounts programs. The improvements focus on the acceleration of release of the estimates and on the preparation of new and extended estimates. There also is a brief discussion on BEA’s research effort to improve the regional accounts.JEL Classification E010     

Reviving brand loyalty: A reconceptualization within the framework of consumer-brand relationships

This paper uses the perspective of interpersonal relationship theory to critically examine, reposition, and extend the notion of brand loyalty. Depth interviews among eight coffee-consuming adults who qualified as brand loyal by traditional criteria provide the data. The result is a deeper appreciation of the character of loyal consumer-brand relations and a sharper awareness of the limitations to understanding that current theoretical frameworks impose. Specifically, the authors suggest that: (1) not all loyal brand relationships are alike, in strength or in character; (2) many brand relationships not identified as ‘loyal’ according to dominant theoretical conceptions are especially meaningful from the cunsumer's point of view; and (3) current approaches to classification accept some brand relationships that, upon close scrutiny, do not possess assumed characteristics of ‘loyalty’ or ‘strength’ at all. Ideas stemming from a reframing of loyalty as one component in a multifaceted construct of relationship strength are put forth, encouraging a move from the metaphor of ‘loyalty’ to the broader notion of ‘relationships’ that encompasses it.     

Different paths to economic reform in Russia and China: causes and consequences

Economic reform in Russia has been described as ‘shock therapy’ because rapid industrial privatization, price liberalization and democratic reforms of the political system were introduced simultaneously. However, shock therapy led to insider control of most manufacturing firms, with important consequences for foreign investment. In contrast, China’s ‘gradualist’ reforms, without privatization or significant democratization, facilitated foreign joint ventures as the dominant means of reforming State-owned enterprises incrementally. This paper proposes an explanation for these contrasting reform paths in Russia and China and then traces their consequences for inward foreign domestic investment (FDI), exporting and for corporate governance in the short and long term. The impact of national level policies on enterprises is demonstrated in a matched pair of cases in Russia and China. Conclusions are drawn for policy, for practice and for future research.     

Culture, entrepreneurial orientation, and global competitiveness

Based on Lumpkin and Dess’s conceptualization of entrepreneurial orientation (EO), this paper presents a cultural model of entrepreneurship. We propose that a society’s propensity to generate autonomous, risk-taking, innovative, competitively aggressive and proactive entrepreneurs and firms will depend on its cultural foundation. The role of economic, political/legal, and social factors as moderators of the relationship between culture and entrepreneurial orientation (EO) are also considered. Overall, it is proposed that only those countries with specific cultural tendencies will engender a strong EO, hence experiencing more entrepreneurship and global competitiveness. Specific country examples are discussed.     

The effect of experience and absorptive capacity on foreign market knowledge

Learning about foreign markets often occurs through collaboration with other firms who have this knowledge. In this paper, we focus on one aspect of foreign market knowledge, which is the knowledge a partner in a dyadic relationship, has of the other partner and of their respective business network relationships. The concept ‘absorptive capacity’ [Admin. Sci. Q. 35 (1990) 128] is used to describe the firm’s ability to use its prior related knowledge and diverse background to identify the value of new information and to develop this into something creative. We develop and empirically test a model of how depth and diversity of experience affect absorptive capacity, and how this absorptive capacity affects the way a lack of foreign market knowledge is perceived as an obstacle in carrying out the ongoing business activity.The results show that the lack of foreign market knowledge in the ongoing business is determined both by the firm’s absorptive capacity generated in dyadic relationships with foreign customers and the customer’s network. The dyadic and network absorptive capacities, however, appear to be used differently in the ongoing business. Dyadic absorptive capacity seems to decrease the lack of foreign market knowledge, whereas customer network absorptive capacity seems to increase it.     

Green and competitive? An empirical test of the mediating role of environmental innovation strategy

This study examines links between the adoption of an environmental innovation strategy and firms’ business performance. It illustrates ways in which an environmental innovation strategy is itself influenced by significant environmental pressures, including government environmental regulation, perceived importance of stakeholder pressures, and managerial environmental concerns. Survey data from the chemical industry in Jordan show that (1) environmental innovation strategy is associated with improved perceived firms’ business performance; (2) the adoption of an environmental innovation strategy is influenced by certain environmental pressure forces, and (3) environmental innovation strategy fully mediates between certain environmental pressure forces and firms’ business performance.     

The emergence of corporate governance in Russia

This article tracks the emergence of corporate governance through four stages of the Russia’s transition to a market economy from the mid-1980s to the present: commercialization, privatization, nomenklatura, and statization. For each stage, the government’s economic objectives are summarized, as well as the foundations for the development of and inhibitors to corporate governance. The problems of nondisclosure and nontransparency that made Russia one of the riskiest countries for investment are discussed. The article emphasizes the substantial progress made recently, culminating in the 2002 Corporate Code of Conduct. The article concludes with prospects for corporate governance to be considered by investors, including foreign executives and managers interested in direct investment in Russia.     

Innovative international strategies

The analysis of practitioners’ narratives in four industries—cables and wires, paint, footwear chocolate, and sugar confectionery—shows that innovative international strategies drive the dynamics of international competition. The four industry case studies suggest an empirical classification of innovative international strategies based on four main dimensions: nature of the firm’s competitive advantage, process of internationalization, segment scope, and level of coordination across borders. From these dimensions derive six types of innovative international strategies that change the rules of competition. The findings support a proactive view of economic development and strategic management. This framework can inspire decision makers in charge of crafting consistent and effective international strategies, as it shows that strategic choice can transform industry structure.     

Teaching Business Ethics: Targeted Outputs

Business ethics is once again a hot topic as examples of improper business practices that violate commonly accepted ethical norms are brought to our attention. With the increasing number of scandals business schools find themselves on the defensive in explaining what they are doing to help respond to the call to teach ‘‘more’’ business ethics. This paper focuses on two issues germane to business ethics teaching efforts: the ‘‘targeted output’’ goals of teaching business ethics and when in the curriculum business ethics should be taught.     

Unethical and Fraudulent Financial Reporting: Applying the Theory of Planned Behavior

This research applies the theory of planned behavior to corporate managers’ decision making as it relates to fraudulent financial reporting. Specifically, we conducted two studies to examine the effects of attitude, subjective norm and perceived control on managers’ decisions to violate generally accepted accounting principles (GAAP) in order to meet an earnings target and receive an annual bonus. The results suggest that the theory of planned behavior predicts whether managers’ decisions are ethical or unethical. These findings are relevant to corporate leaders who seek to improve ethical work climates of organizations and to many regulators, accountants, corporate governance officials and investors.     

Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program

The focus of this study is the determinants of customer loyalty among members of retail loyalty programs. With data collected from a DIY loyalty program in a Central European country (a preliminary sample of 116 club members and a representative sample of 416 members), the study empirically tests the nature of the effect of the quality of personal interactions and perceptions of the quality of the loyalty program on customer loyalty through the mediating variable of customer satisfaction. Although the findings suggest that the quality of personal interactions bears no direct influence on members’ loyalty, it has a stronger influence on members’ satisfaction than the perceived quality of the loyalty program does. Influence on members’ loyalty is stronger from the mediating variable of customer satisfaction than from perceived quality of the loyalty program. This finding confirms the role of customer satisfaction as an important determinant of customer loyalty in the DIY setting. Offering a diagnostic tool in terms of selected direct and indirect determinants influencing customers’ loyalty, the paper also contributes to comprehension of loyalty programs’ effectiveness and members’ responses to the quality of loyalty programs, which contribution provides important implications for management and development of retail loyalty programs.     

Ethical Entrepreneurship and Fair Trade

Due to several recent scandals, Business Ethics is now firmly embraced. Whereas in the 1980s and early 1990s there were serious doubts expressed about combining ethics and business, the link now seems to have become self-evident. Fundamental questions about the tensions between business and ethics however continue to receive little attention. In this paper, based upon a debate concerning the Fair Trade company, the strains between business and ethics are analyzed. The article shows how several great thinkers have already considered this tension. Three ways to conceptualize the tension between business and ethics have been distinguished, and these are outlined in the paper. In one approach, ethical entrepreneurship, value tensions are perceived as a source for entrepreneurship. However, this approach presupposes pluralistic ethics. Thinking only in terms of black and white is seen as blocking the ability to adequately handle the tension between business and ethics. Opting for ‘‘ethical entrepreneurship’’, as by Fair Trade, has fundamental and important consequences for the company’s communication policy.     

The role of interdependent self-construal in consumers’ susceptibility to retail salespersons’ influence: A hierarchical approach

Based on a sample of 300 consumers, this paper develops and tests a hierarchical model that examines the effect of interdependent self-construal on consumers’ susceptibility to salespersons’ influence. Structural equation modeling shows that the relationship between the two constructs is mediated by several situational factors via two prediction paths. Along one path, interdependent self-construal positively affects consumers’ susceptibility to interpersonal influence, which is positively connected to consumers’ susceptibility to salespersons’ influence through the mediation of consumers’ susceptibility to store atmosphere influence. Along the other path, interdependent self-construal is positively correlated with public self-consciousness, which is then positively associated with consumers’ susceptibility to salespersons’ influence. Discussions on theoretical, practical and future research implications are provided.     

The impact of different kinds of knowledge for the internationalization process of Born Globals in the biotech business

This study explores how different kinds of knowledge of founders and managers at Born Globals are related to the firms’ discovery and exploitation of foreign market opportunities. Based on data from eight biotech Born Globals, we dichotomized Born Globals into two subsets: Born Industrials and Born Academics. The study shows that the founders’ and managers’ different combinations of technological and international knowledge impact the firms’ proactive or reactive behavior in discovering foreign market opportunities. The results indicate that different kinds of Born Globals follow different internationalization processes and that Born Globals, therefore, should not be analyzed as a homogenous group, which has been the common perspective in previous research.     

An Economic Approach to Business Ethics: Moral Agency of the Firm and the Enabling and Constraining Effects of Economic Institutions and Interactions in a Market Economy

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and institutional, libertarian thought, on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory.