Universal intellectual property rights: Too much of a good thing?

Developing countries’ incentives to protect intellectual property rights (IPR) are studied in a model of vertical innovation. Enforcing IPR boosts export opportunities to advanced economies but slows down technological transfers and incentives to invest in R&D. Asymmetric protection of IPR, strict in the North and lax in the South, leads in many cases to a higher world level of innovation than universal enforcement. IPR enforcement is U-shaped in the relative size of the export market compared to the domestic one: rich countries and small/poor countries enforce IPR, the former to protect their innovations, the latter to access foreign markets, while large emerging countries free-ride on rich countries’ technology to serve their internal demand.     

Too much of a good thing? Absorptive capacity,firm performance,and the moderating role of entrepreneurial orientation

Absorptive capacity (ACAP) refers to a firm's ability to acquire, assimilate, transform, and exploit new knowledge. Research has yet to acknowledge the possibility of limits to the financial returns of this important strategic construct. This study suggests an inverted‐U shaped relationship between ACAP and financial performance. Based on data from 285 technology‐based small and medium enterprises, we observe gains within three prospective, secondary measures of growth to diminish beyond lower levels of ACAP, even turning negative and becoming harmful beyond intermediate levels. We find that entrepreneurial orientation (EO) moderates the ACAP‐performance relationship, enhancing financial gains at lower levels of ACAP and mitigating the decline in financial performance at higher levels of ACAP. Further, with higher EO, higher ACAP can be achieved before financial returns diminish.Copyright © 2012 John Wiley & Sons, Ltd.     

When is cash good or bad for firm performance?

Research summary: Cash can create shareholder value when used for adaptation to unfolding contingencies, but can also reduce value when appropriated by other stakeholders. We synthesize arguments from the behavioral theory of the firm, economic perspectives like agency theory, and the value‐creation versus value‐appropriation literatures to argue that the implications of cash for firm performance are context‐specific. Cash is more beneficial for firms operating in highly competitive, research‐intensive, or growth‐focused industries that are typical of contexts requiring adaptation in the face of uncertainties. Conversely, cash is more detrimental to performance in firms that are poorly governed, diversified, or opaque, as are typical of contexts where stakeholder conflicts, information asymmetries, or power imbalances can encourage value appropriation by other stakeholders. Managerial summary: Cash can create shareholder value when used for adaptation to unfolding contingencies, but can also reduce value when appropriated by other stakeholders. While cash‐rich firms have higher performance on average, with those in the 75th percentile having a market‐to‐book value 15 percent higher than those in the 25th percentile, we find that the performance benefits of cash depend on the context. Cash is more beneficial for firms operating in highly competitive, research‐intensive, or growth‐focused industries that are typical of contexts requiring adaptation in the face of uncertainties. Conversely, cash is more detrimental to performance in firms that are poorly governed, diversified, or opaque, as are typical of contexts where stakeholder conflicts, information asymmetries, or power imbalances can encourage value appropriation by other stakeholders. Copyright © 2015 John Wiley & Sons, Ltd.     

Doing the right thing? HRM and the angry knowledge worker

This paper explores the relationship between human resource (HR) practices, commitment, work and employment relations. Drawing on an in‐depth ethnography of knowledge workers within a global, high‐technology, knowledge‐intensive firm, the paper offers a multidimensional understanding of structures of influence and of commitment that interact in distinctive ways to shape the employee experience. In examining the context and content of ‘best practice’ HR in a ‘celebrated’, leading‐edge company, we have offered a more complex, grounded picture of the intent and outcome of commitment‐seeking policies. The paper demonstrates that, contrary to mainstream and critical scholarship, skilled technical workers in knowledge‐intensive firms can be uncommitted, angry and high performing at the same time.     

What is this thing called organic? – How organic farming is codified in regulations

Organic farming is one of the fastest growing sectors of world agriculture. Although it represents only 1% of world agricultural area, organic is one of the most recognized food labels and most people in developed countries consume some amount of organic food today. There is a wide range of interpretations of what organic means by different actors in the sector. Here we examine eight different organic regulations from across the world to understand how they have codified the large diversity of ideas inherent in organic agriculture. Our analysis shows that organic practices and regulations do not differ substantially between countries – across the board organic regulations define organic mainly in terms of 'natural' vs. 'artificial' substances that are allowed (or not) as inputs. This interpretation of organic as “chemical-free” farming, largely void of broader environmental principles, does not fully incorporate the original ideas of organic theoreticians who conceived it as a holistic farming system aimed primarily at improving soil health, thereby leading to improved animal, human, and societal health. This narrow focus of organic regulations can be explained by the interest of organic consumers who predominantly buy organic because they believe it is healthier and more nutritious due to the absence of harmful substances. Organic regulations need to place more emphasis on environmental best practices in order to ensure that organic agriculture can contribute to sustainability objectives.     

What is a good reputation? Career concerns with heterogeneous audiences

When an agent faces audiences with heterogeneous preferences, it is non-trivial to determine what a “good” reputation means, and the return to reputation can be a non-monotonic function. We illustrate this through standard IO examples, and discuss some implications for reputation-building in a simple two-period career concerns framework. We conclude by discussing other observations concerning the impact of heterogeneous audiences on reputation-building.     

Change is good!? Analyzing the relationship between attention and nutrition facts panel modifications

Many consumers do not pay attention to nutrition information, a necessity to make healthy food choices. We measure attention to a Nutrition Facts Panel (NFP) currently used in the U.S. and to a modified NFP that emphasizes key information, using eye-tracking in a between-subjects experiment. We test for differences between attention to the current and modified NFP but also for differences across food items. We find asymmetric effects, depending on the product. For healthier items more attention is paid to the modified NFP than to the current NFP. For less healthy items less attention is paid to the modified NFP than to the current NFP. Results suggest that a single modified design may not be uniformly effective.     

Are family ownership and control in large firms good,bad, or irrelevant?

Family ownership and control play an important role in large firms in Asia. There is a puzzle regarding the relationship between concentrated family ownership and control on the one hand and firm performance on the other hand. Three positions suggest that such concentration may be good, bad, or irrelevant for firm performance. This article reports two studies to shed further light on this puzzle. Study 1 uses 744 publicly listed large family firms in eight Asian countries (Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, and Thailand) to test competing hypotheses on the impact of family ownership and control on firm performance. On a country-by-country basis, our findings support all three positions. On an aggregate, pooled sample basis, the results support the “irrelevant” position. Using 688 firms in the same eight countries, Study 2 endeavors to answer why Study 1 obtains different results for different countries. We theorize and document that Study 1 findings may be systematically associated with the level of (minority) shareholder protection afforded by legal and regulatory institutions. Study 2 thus provides critical insights on a cross-country, institution-based theory of corporate governance.     

Which one is more valuable in coordinating the online and offline distribution? Service support or online price coordination

Nowadays effective mechanisms to coordinate the online and offline distribution become increasingly important in the business market. In this research, we first propose two mechanisms (i.e. the offline service to the retailer and the online price coordination) for the manufacturer and the retailer to employ. Our results show that the online price coordination does help coordinate the online and offline distribution and bring higher profits to the manufacturer-retailer supply chain and thus both the manufacturer and the retailer, while the offline service to the retailer does not; comparing to the offline service to the retailer, the online price coordination is a better strategy to be utilized to alleviate the online to offline competition. Furthermore, we investigate if a novel coordination mechanism, which combines the offline service to the retailer with the online price coordination, can help coordinate the online and offline distribution better and becomes the optimal coordination mechanism. Surprisingly, our results show that compared to both the offline service to the retailer and the online price coordination, this combination coordination mechanism does show a dominant competitive advantage to bring highest profits to all parties.     

A Switch or a Process? Disentangling the Effects of Union Membership on Political Attitudes in Switzerland and the UK

The paper examines the effects of union membership on individual political attitudes using panel data for Swiss and British workers. Considering union membership as an on/off switch (member vs. non-member), as it is often done, it is only possible to distinguish between a selection effect (unions attract like-minded individuals) and a molding effect (the experience of membership has a transformational impact on the individual). Exploiting the longitudinal structure of the data reveals that union membership is best characterized not as a switch, but as a dynamic process involving anticipation effects (which start well before becoming affiliated) and maturation effects (which become noticeable only after a certain duration of membership and may not dissipate after leaving the union). Empirically, the selection effect appears the most important in the two countries we focus on, while the molding effect is less pronounced. Anticipation and maturation effects are also non-negligible and hitherto unexplored.     

Where is the opportunity in opportunity zones?

In December 2017, the U.S. Congress passed into law the Opportunity Zone (OZ) program. As an OZ, designated low-income census tracts provide considerable tax breaks to property investors, intending to attract investments and spur economic growth. As the success of the program is dependent on investors' responses, we analyze market reactions in a difference-in-differences framework. We identify two potential effects on property markets: tax breaks for investors and expected land value appreciation. Our results show that tax breaks are priced efficiently. Qualified properties increase by 7–20% in price, while vacant land increase up to 37%. In contrast, we find limited signs of expected land value appreciation.     

Competition law and regulation in the Turkish telecommunications industry: Friends or foes?

The interaction between national competition authorities (NCAs) and national regulatory authorities (NRAs) plays a vital role in institutionalizing competition policy during regulatory reforms. Questions about jurisdictional authority over competition policy are far from settled     

What is the function of a figurine? Can the repertory grid technique tell?

Teaching design and product development at upper secondary school level in Sweden is a matter of interdisciplinary considerations. Education in product development, at this level, prepares students for further studies and career in engineering or industrial design. Knowledge of artefacts is an important element in the education. In coherence with the visual and rhetorical strategies characterising the knowledge field, students learn how to develop an idea to a final product. In this study twelve engineers and industrial designers, professionals representing the knowledge field of product development are studied regarding their interpretations of eight pre-selected artefacts. Data is collected and analysed using repertory grid technique. The aim of the study is to examine whether/what we can learn from the informants’ experiences and knowledge that is relevant to education in design and product development at upper secondary school level. Findings show that four of the artefacts appear to be carriers of attributes that reveal the interviewees’ definitions of the artefacts’ functional nature. From these findings it is shown that the interviewees’ definitions of concepts concerning aesthetics/decoration and function can be seen as cultural expressions. How the repertory grid technique is used in this particular study is thoroughly described and the results relevance for education is discussed.     

Vietnam in Mutation: Will it be the Next Tiger or a Future Jaguar?

The article describes Vietnam's economic prospects. Using the World Bank model (1993), the study is based on a documentary research and interviews carried out in Vietnam. The inadequate business environment in Vietnam which is highlighted, implies that Vietnam far from being a tiger should be described as a young jaguar, following in the footsteps of Thailand or Indonesia, all of which are trying to catch up with the four tigers.     

What is driving increases in dietary quality in the United States?

Over 1994–2010, adult dietary quality in the United States increased by 10 percent. We find a shift in consumption between at-home and away-from-home food played a relatively minor role as compared to changes in demographics and educational attainment. The two largest contributors we identify include an increased usage of nutritional information and a shift away from relying heavily on price, taste, storability and ease of preparation when shopping for food. Our findings suggest nutrition policy discussions could focus on further shifting attitudes/preferences towards healthier diets while allowing consumers to better extract nutrition information when making food choices.     

Why is the food traceability system unsuccessful in Taiwan? Empirical evidence from a national survey of fruit and vegetable farmers

Food traceability systems allow the consumers or administrative authorities to trace the origins or ingredients of food products. Given the expressed concerns for food safety, the promotion of food traceability systems has occurred in many countries. Although a considerable body of literature has examined the consumer responses in regard to food traceability, relatively little is known about the producers’ adoption behaviors. To fill this knowledge gap, this paper investigates Taiwanese farmers’ participation decision in relation to the Taiwan Agriculture and Food Traceability (TAFT) program; special attention is paid to understanding the roles of the farmers’ program awareness and pesticide residue testing adoption in regard to TAFT participation. Using a national representative sample of the fruit and vegetable farmers in Taiwan, the results indicate that program awareness and pesticide residue testing adoption are the significant determinants of TAFT participation. An awareness of the government’s promotion of the TAFT program and adoption of pesticide residue testing has significantly reduced TAFT non-participation by 28.2% and 21.9% points, respectively.