Will behavioral research on managerial decision making generalize to managers?

Research on managerial decision making (MDM) is often conducted using business students. By using students as subjects in experiments, researchers assume that the results generalize to managers. To test this assumption, the decision making of managers was compared to that of graduate and undergraduate business students using a complex decision task in which all subjects were equally naive. There were no significant differences between the managers and graduate business students. The undergraduate students, however, made more costly decisions, used less effective decision heuristics, and were more erratic than the managers and graduate students.     

To be entrepreneurial,or not to be entrepreneurial? Explaining differences in franchisee entrepreneurial behavior within a franchise system

Although franchising scholars largely acknowledge that franchisees may behave like entrepreneurs, little is known about whether and why franchisees differ in their entrepreneurial behaviors. Franchisees are semi-autonomous entrepreneurs running geographically dispersed units within established organizations. We therefore use corporate entrepreneurship (CE) literature to define and measure franchisee entrepreneurial behavior, and we build on an entrepreneurial motivation framework to develop an integrative set of hypotheses that explain differences in franchisee entrepreneurial behavior. We test these hypotheses using survey data on 119 franchisees within a single Dutch franchise system. Our results show that the extent of franchisee entrepreneurial behavior varies considerably, even within a single franchise system. The differences in franchisees’ entrepreneurial behaviors can be explained by differences in franchisees’ intrinsic goals, relational satisfaction and local competition.     

How do extended benefits affect unemployment duration? A regression discontinuity approach

This paper studies a targeted program that extends the maximum duration of unemployment benefits from 30 weeks to 209 weeks in Austria. Sharp discontinuities in treatment assignment at age 50 and at the border between eligible regions and control regions identify the effect of extended benefits on unemployment duration. Results indicate that the duration of job search is prolonged by at least 0.09 weeks per additional week of benefits among men, whereas unemployment duration increases by at least 0.32 weeks per additional week of benefits for women. This finding is consistent with a lower early retirement age applying to women.     

How well do EO measures and entrepreneurial behavior match?

The Entrepreneurial Orientation (EO) research stream is quite popular in investigating how companies act entrepreneurially and how EO relates to issues such as financial performance, innovation, and founder satisfaction. Part of EO’s popularity may be that it is measured using simple, widely-accepted items. Yet the idea of how to best measure EO has become a recent topic of debate. Part of that debate is that the items measure dispositions as much as behaviors and are self-reported, which means they are somewhat subjective. This paper investigates the relationship between subjectively-measured EO and actual entrepreneurial behavior as measured through objective data. To do so, the paper examines the relationship between EO dimensions and realized risk-taking behavior. Using a sample of 156 community banks headquartered in the southwestern United States, the paper uses banks’ risk-weighted asset ratio, which captures the riskiness of the bank’s portfolio, as a measure of sustained entrepreneurial behavior. The analysis finds that subjectively-measured EO risk-taking is strongly related to objectively-measured realized bank risk-taking. There was not a significant direct relationship with the other EO dimensions, though there was some evidence of a moderated relationship. The paper lends some credibility to current EO measures and suggests how additional research is needed to improve upon EO’s measurement.     

Skill and value perceptions: how do they affect entrepreneurial intentions?

This paper starts from Ajzen’s theory of planned behavior to test the role of different perceptions on the individual’s intention to become an entrepreneur. Support has most often been found for this theory in the field of entrepreneurship. However, little is yet known about the way in which perceptions are formed. It may be argued that social values regarding entrepreneurship, and also personal skill perceptions, would both affect entrepreneurial intentions. Our objective, therefore, is testing the existence and reach of both effects. Empirical analysis has been carried out on a sample of 249 university students. Structural equations models have been used to test our hypotheses. Results generally confirm them, since values and skills do play a significant role in explaining intention. However, the role of perceived skills seems to be more relevant. Implications may be derived in several areas, and especially regarding entrepreneurship education.     

How does changing age distribution impact stock prices? a nonparametric approach

The original article to which this Erratum refers was published in Journal of Applied Econometrics 2009.     

The management of international development projects: Moving toward a standard approach or differentiation?

International cooperation supplies international aid to developing countries and emerging economies, typically through projects; to manage these projects, a specific approach based on the “project cycle” was introduced in 1970. In recent decades, many development agencies have adopted the project cycle, but they have also changed it over time, and today agencies work with different standards. In this article, the history of project management systems in international cooperation is reported, and the approaches adopted by five of the main worldwide governmental development agencies are compared. The analysis shows both the common aspects and differences in order to highlight limits and propose further research.     

How can organizations use wikis for innovation?

Wikis were first developed over 15 years ago. Research has shown that organizational or corporate wikis are sustainable and can be beneficial to organizations particularly in improving work processes, collaboration and knowledge management. However, there has been little research done to show how organizations can use wikis to support innovation processes. To bridge this gap, this paper explores how wikis can be used in different stages of innovation. We review existing literature as well as analyze case studies of wikis deployed in four organizations in order to highlight how wikis can be used to address challenges of knowledge management and collaboration in different stages of innovation from idea generation to commercialization. In particular, we propose a model that explains how wikis require a clear purpose for their use, a culture of collaboration, and integration within a formal innovation process.     

Who pays for whom? Elements of a macroeconomic approach to income inequality

National income is generated through national production in the form of ‘value added’; it is expended on goods and services in the form of ‘disposable’ or ‘net’ income. In this paper, I investigate what happens in between. The circuit of income flows generated in this way is comparable to the circuit of product flows, in its complexity. It can be analysed, so the tenet of the paper, in a similar way, by means of well-known tools of input–output (IO) analysis; this on the pre-condition, however, that you draw out the institutional framework of an economy in similar detail as is now customarily done for production units in IO analysis. Existing data do not suffice for the purpose, at present; this paper shows, by way of some exemplary calculations, what insight into the mechanism of national income distribution is gained if the necessary data, normally in the form of a large social accounting matrix, are provided.     

Can beneficial antecedents to self‐employment be detrimental to entrepreneurial performance?

We hypothesize that risk aversion, plasticity, stability, and locus of control have different effects on a person's decision to enter entrepreneurship and the person's entrepreneurial performance. Empirical results reveal that plasticity and risk tolerance have positive effects on selection but negative effects on income derived in entrepreneurship. Stability, on the other hand, deters entry but has an inversely u‐shaped relation with income. Locus of control has a positive impact on the decision but an insignificant effect on entrepreneurial income. These new insights may guide policy makers on how to help aspiring entrepreneurs overcome the negative effects of their personality traits.     

How to stimulate supplier innovation? Insights from a multiple case study

Drawing on the literature on supplier innovation, supplier development, and the relational view, we bring forward the concept of stimulation of supplier innovation, which refers to the buyer company's actions which aim to enhance its suppliers' innovativeness, guide its suppliers' innovation processes, and/or encourage its suppliers to share their innovations. Through four case studies about purchasing categories in three companies, we study how the stimulation focus is determined and what methods can be used for stimulating supplier innovation. We propose that stimulation comprises indirect and direct forms of knowledge-sharing and governance with an emphasis on indirect methods and suggest that the concept sheds light on the research gap on the push model of supplier innovation. We also elaborate the literature on supplier development and relational view in the context of supplier innovation.     

How Does a Covenantal Approach to Developing Organizational Leadership Affect Innovation?

As organizations grow, they become more hierarchical and less adaptive; thus, innovation and intrapreneurship suffer. A covenantal approach to organizational behavior and leadership can facilitate organizational flexibility and adaptability to foster further innovation by engendering empowerment and deeper, more meaningful engagement among leadership and followers. A covenant is a morally informed agreement among two or more parties who commit to care for one another and protect one another's rights. Noncentralization, participative decision making, active dialog and big picture thinking are all encouraged by a covenantal approach, which in turn helps to foster innovation.     

The tests of just cause: What price predictability in arbitral decision making?

The common law of just cause consists of the accumulated decisions of the arbitration profession rendered on the basis of commonly accepted principles of right and wrong. It constitutes the rules of the arbitration game pertaining to just cause, and, as such, guides decision making in disciplinary dispute resolution. Presumably it brings predictability to this aspect of arbitral decision making much as the principles of contract law bring predictability to nondisciplinary contract construction disputes. The best known component of this body of law is the checklist of seven tests devised by Carrol R. Daugherty. This article examines this element of common law, its origins, and whether it does, in fact, bring grater predictability to the disciplinary phase of arbitral decision making and, if so, at what cost. Besides questioning the degree of predictability achieved by Daugherty's tests, the paper cautions that greater predictability may only be possible at an unacceptably high cost: the sacrifice of those characteristics that make arbitration the preferred dispute resolution technique.     

“Do incentives matter to promote high technology-driven entrepreneurial activity?”

A productive human capital is a necessary but not sufficient condition for regional economic growth. An additional condition is the adequate allocation of talented people in innovative entrepreneurial activities, which according to previous literature have a higher social value than traditional ones. Using a large and representative sample of small and medium enterprises (SMEs) located in the Basque Autonomous Community (Spain), we empirically analyze, separately in manufacture and services, whether individual incentives and market conditions are aligned in such a way that the talent is properly allocated in innovative entrepreneurial activities. Through a novel use of existing empirical methods we find that (i) entrepreneurs operating in high-tech sectors have, on average, more entrepreneurial talent and private returns than their counterparts; and that (ii) entrepreneurial talent and private returns are positively and significantly correlated. These novel insights suggest that private and social incentives are adequately aligned.     

How would Eurozone equities respond to a bond sell‐off?

• We have developed a new model to measure the impact on Eurozone equities of a global bond sell‐off as the Fed starts to tighten its monetary stance later this year. We show that the most affected countries would be Greece, Finland and Portugal: the cumulated equity loss compared to the baseline ranges from between 35% to more than 50% in the case of Greece at the end of 2017. Under this scenario, Belgium, Ireland and Austria are less impacted by the global re‐pricing of risk.
• In light of global risk being skewed to the downside (China, Greece, risk‐off), it is essential to have a framework that is able to generate consistent responses of Eurozone stock indices to global macro shocks in stress test scenarios. The approach assesses first the co‐movements of Eurozone stock indices and aims to explain them with macro variables such as the US S&P index, the oil price, the euro/dollar exchange rate and short‐ and long‐term interest rate differentials between the Eurozone and the US.
• We find a high degree of co‐movement in Eurozone equity returns. This matters from an asset management perspective, as it reveals limited potential for diversification benefits of an equity portfolio invested across Eurozone countries.