The Effect of Enhancing Workers’ Employability on Small and Medium Enterprises: Evidence from Spain

In this paper, we analyse the effect of promoting workers’ employability on labour productivity. To this end, we adapt a simple efficiency-wage model that includes the employer’s decision on the provision of opportunities for enhancing workers’ employment prospects in a context of job insecurity. We show that (i) by facilitating workers’ employability, the firm increases its labour productivity; and (ii) the higher the job uncertainty the higher the productivity gains due to the increase in employability. One of the advantages of our model is that it is simply enough to allow us to formulate two testable hypotheses, namely (i) the increase of jobs’ potential to enhance workers’ employability results in higher level of workers’ effort, and (ii) the provision of employability is more profitable for small and medium enterprises (SMEs) than for large firms. More precisely, SMEs should obtain higher effort levels from employees by fostering workers’ employability than large firms. We provide some evidence supporting these hypotheses from a highly representative sample of Spanish manufacturing firms. This research has been funded by the Spanish Ministry of Education and Science, project SEJ2004-07242-C03-02.     

打开领导有效性的黑箱:领导行为和领导下属关系研究

This study is an integration of the leader-focused perspective and leader-follower exchange perspective, attempting to understand the relationship between leadership styles, leader-member relationship, and their joint impact on followers’ effectiveness, satisfaction, extra effort and organizational commitment. 615 respondents from five big pharmaceutical companies in China participated in this study. Results show that: (1) transformational leadership has positive influence on followers’ effectiveness, satisfaction, extra effort and organizational commitment; contingent reward has positive influence on effectiveness; management-by-exception leadership has negative influence on satisfaction; laissez-faire leadership has negative influence on effectiveness and satisfaction. (2) Leader-member exchange partially mediates the relationship between transformational, contingent reward, management-by-exception, laissez-faire leaderships and followers’ effectiveness, extra effort, satisfaction and organizational commitment. Translated and revised from Guanli shijie 맜理世界(Management World), 2006, (9): 87–93     

An IT professional’s dilemma: be an entrepreneur or a consultant?

Using a simple model, this paper examines the behavior of an IT professional who faces the choice between becoming an entrepreneur or an employee. To our knowledge, this is the first formal study of the dilemma facing an IT professional. IT professionals are somewhat unique in that they embody enough labor input/intellectual property that even a single professional can deliver a viable product/service. An incentive contract is auctioned to attract the highest bid in return for partial ownership from venture capitalists. Failure to raise venture finance results in the professional seeking employment. Both venture finance and employment are uncertain. The comparative-static effects of changes in project size and VC competition are determined. We find that under certain conditions a larger project is associated with a cost-plus contract, while greater VC competition results in a fixed-price contract being offered. The agent’s effort is lower in a larger project, but non-negative under greater VC competition.     

Private Equity and the Public Good

The dominance of agency theory can reduce our collective scope to analyse private equity in all its diversity and depth. We contribute to theorisation of private equity by developing a contrasting perspective that draws on a rich tradition of virtue ethics. In doing so, we juxtapose ‘private equity’ with ‘public good’ to develop points of rhetorical and analytical contrast. We develop a typology differentiating various forms of private equity, and focus on the ‘take private’ form. These takeovers are where private equity funds are used to buy all a firm’s publicly listed shares. Take private deals reduce reporting requirements and lessen the amount of public scrutiny a firm comes under. They allow greater control of a firm’s assets and resources but also have effects in terms of the wider social fabric. The ‘public good’ and virtue ethics offer an alternative basis for theorisation of these deals. This provides a needed contrast to accounts of private equity based on agency theory.     

Trustworthiness and interest rates: an empirical study of Italian SMEs

Trust is expected to reduce transaction costs and agency costs and thus influence the cost of credit for small businesses. Assessments of trustworthiness are based on the ability, benevolence and integrity of the owner manager. The study examines whether lending managers’ assessments of the trustworthiness of small and medium-sized enterprise (SME) owner managers are associated with the interest rate charged. Data were obtained from a survey of lending managers from small banks in North East Italy. Control variables and a vector of trustworthiness factors were collected on a random sample of customers, resulting in data for 365 small firms (74% response rate). Multivariate regression analyses provided evidence of a negative association between trustworthiness and interest rates. Banks, owner managers, policy makers and researchers should recognise the potential of trust to influence lending decisions and behaviour.     

The impact of a product’s country-of-origin on compromise and attraction effects

Product information, such as country-of-origin (COO), often influences consumer choice. This research explores how valence of COO influences the magnitude of the compromise and attraction effects. The results of four experiments demonstrate that when a product’s COO denotes a negative image, the compromise and attraction effects decrease. The analysis also reveals asymmetric change of magnitude in the compromise and attraction effects.     

Product line competition and price promotions

Besides its familiar demand-redistribution effect, price promotion by a multi-product firm creates cannibalization, as lowering the price of one variety may erode the profits of its other varieties. We study endogenous product line selection and price promotions in a duopoly. In equilibrium, the ex ante symmetric firms may offer asymmetric product lines with unequal length. The two-product firm is more profitable. The single-product firm offers a larger mean discount and promotes more (less) frequently than its competitor when the former’s unit cost is relatively low (high).     

SME internationalization and performance: Growth vs. profitability

Lu and Beamish (2001) examined the effect of two internationalization strategies, exporting and foreign direct investment (FDI), on SME performance (ROA). We extend this research by examining the differential effects of these strategies on two other dimensions of SME performance: growth and ROS. We develop and test four sets of hypotheses using a sample of 164 Japanese SMEs. We find that exporting activity has a positive impact on growth, but negative impact on profitability. FDI activity has a positive relationship with growth, but a U curve relationship with profitability. Exporting activity has a positive moderating effect on the relationship between an SME’s FDI activity and firm growth, a negative moderating effect on the relationship between an SME’s FDI activity and firm profitability. An SME’s age when it starts to make FDIs has a negative moderating impact on the relationship between FDI and firm growth and profitability.     

供应商专项投资与感知的合作风险:关系发展阶段与控制机制的调节作用研究

This study examines the dynamic nature of suppliers’ perceived relational risks arising from transaction-specific investments (TSIs) in their relationship with manufacturers, and the moderating effects of contracts and relational norms, during the developmental process of manufacturer-supplier relationship. An empirical study was conducted with data collected from 261 suppliers and manufacturers in the Chinese consumer electronic appliances sector. We found that suppliers’ TSIs have a positive effect on their perceived relational risks, and in different phases of a relationship effect varies significantly. Results of the research also show that both contracts and relational norms have negative moderating effects on the relationship between suppliers’ TSIs and their perceived relational risks, and moderating effects during are different across various phases of a relationship. Translated from Zhongguo Guanli Kexue 中国管理科学 (Chinese Management Science), 2006, 14(1): 30–36     

Does Gibrat’s Law Hold? Evidence from Canadian Retail and Manufacturing Firms

This paper investigates the validity of Gibrat’s Law holding for firms in manufacturing and retail trade sectors. The object is to expand our knowledge of Gibrat’s Law to include non-manufacturing firms. A unique longitudinal firm-level database, which contains information on Canadian incorporated establishments, enables the inter-industry comparison. The findings of the analysis are that Gibrat’s Law is violated in both manufacturing and retail sectors. Violations of Gibrat’s Law for both sectors include (i) growth rates that depend on firm size (ii) growth variability that depends on firm size and (iii) a negative persistence of firm growth. Finally, age effects or selection effects are not the causes of these violations.      

Issue Networks, Value Structures and the Formulation of Accounting Standards: An Exercise in Theory Building

This study is an exercise in theory building. It begins from the premise that current theory with respect to the setting of accounting standards is inadequate. We advance current theory by incorporating new ideas from sociology (issues network theory, see Heclo (1978, In: King A (ed) The New American Political System. American Enterprise Institute, Washington, DC, pp 87–124) and social psychology (values structure ideas drawn from Shakun (1988, Evolutionary system design: policy making under complexity and group decision support systems. Holden-Day, Inc., Oakland, CA). In doing so, we extend previous theorizing on the accounting standard setting process (e.g., triocracy theory). Issue network theory holds that groups with intellectual, ideological and economic interests have interests in, and may exert efforts to influence, policy adoption. It is a natural outgrowth of, and important extension to, triocracy theory. We draw on Shakun’s (1988, Evolutionary system design: policy making under complexity and group decision support systems. Holden-Day, Inc., Oakland, CA) Evolutionary Systems Design theory to elucidate a theory of motivation. We argue that complex motivational structures influence the behaviors of the parties to the accounting standard setting process. As part of this effort, we categorize the guiding terminal values, instrumental values and operational goals that guide participant behaviors. We draw on previous literature to document parts of the model.     

Social Responsibility and the Olympic Games: The Mediating Role of Consumer Attributions

Current literature suggests that corporate social responsibility (CSR) can affect consumers’ attitudes towards an organization and is regarded as a driver for reputation-building and fostering sustained consumer patronage. Although prior research has addressed the direct influence of CSR on consumer responses, this research examined the mediating influence of consumer’s perceived organizational motives within an NGO setting. Given the heightened public attention surrounding the 2008 Beijing Olympic Games, data were collected from consumers of the Games to assess their perceptions of the International Olympic Committee’s (IOC) socially responsible initiatives. We hypothesized that consumers of the Games were likely to cognitively elaborate on CSR messages by way of three specific attribution effects derived from the literature. The results show that, contingent on CSR awareness, consumers responded positively to social efforts judged to be values-driven and stakeholder-driven; and a negative response was seen for efforts judged to be strategic. These attribution effects influenced various types of patronage and perceived organizational reputation.     

Entrepreneurship and Risk Aversion

Evans and Jovanovic (1989, Journal of Political Economy 97(4), 808–827) find that wealth is an important determinant of business startups due to liquidity constraints. However, Cressy (2000, Economic Letters 66, 235–240) argues that if risk aversion is a negative function of wealth, Evans and Jovanovic’s empirical results could be spurious and the positive effect of wealth could be due to the omission of risk aversion in the regression equation. In other words, according to Cressy, one’s wealth does not have any effect on business startups once the degree of risk aversion is accounted for. This paper attempts to investigate the validity of Cressy’s conjecture. We empirically examine the effect of wealth on the transition into self-employment, while allowing for the effect of risk aversion. Our empirical findings show that Evans and Jovanovic’s (1989) results are robust, i.e., wealth has a positive effect on business startups even allowing for the confounding effects of risk aversion.     

Study of Commitment Antecedents: The Dynamic Point of View

This study adopted a dynamic perspective in investigating the effects of employees’ perception of equity (PoE) and perception of organizational politics (POP) on their trust in organizations and the subsequent effect of such on their commitment. Data were collected from 216 employees from various industries. The positive effect of PoE and negative effect of POP on employees’ trust were confirmed in this study. It is also found that employees’ trust in organizations has a positive effect on their organizational commitment. This study also confirmed the mediation of employees’ trust on the relationships between POP, PoE, and organizational commitment. Besides, the moderation of employees’ trust on the relationships between POP, PoE, and organizational commitment was not confirmed. Implications and suggestions for future research are discussed.     

Can economic bonus programs jeopardize service relationships?

Research findings on the impact of economic bonus programs on service relationships are contradictory. While some studies find positive effects of economic bonus programs on customer’s relational behavior, other studies demonstrate negative effects. Building on self-determination theory, Dholakia (J Market Res 43(2):109–120, 2006) points at a possible explanation for these conflicting results, arguing that economic marketing programs have negative effects on self-determined customers when the program is perceived as controlling by them. By testing the effect of four different kinds of economic bonus programs on loyalty in an experimental setting using a nationwide representative sample of 768 participants, this research is the first that provides empirical evidence that economic bonus programs can indeed endanger service relationships by reducing customer’s self-determination. Implications of our findings for the abundance of economic bonus programs offered to service customers these days are highlighted.     

Dimensions of service quality and satisfaction in healthcare: a patient’s satisfaction index

The assessment of patients’ satisfaction levels, and the knowledge of what factors influence satisfaction are very important for healthcare managers as it influences healthcare results and healthcare institutions financial results. The objective of this research is to analyse patients’ satisfaction levels in a set of four Portuguese primary Healthcare Centres, through the estimation of a satisfaction index, which simultaneously explains which dimensions of healthcare quality influence that satisfaction the most. For that, a conceptual model of patients’ satisfaction in primary healthcare was tested using data from a sample of 414 patients. Partial Least Squares path modelling (PLS) was the technique chosen to evaluate the proposed model. The results show that patients’ satisfaction is 60.887 in a scale from 1 to 100, revealing only a medium level of satisfaction. It is also possible to conclude that the most important positive effects on satisfaction are the ones linked to the patient/doctor relationship, the quality of facilities and the interaction with administrative staff, by this order.     

The Relationship Between Competition and Incumbent’s Innovation

A static model is developed to analyse the incumbent’s innovation strategy under monopoly and duopoly. A number of potential objectives for the incumbent are modelled here, including the maximization of revenue, profit, and welfare (which are common among the network industries). Its marginal cost depends upon investment in new technologies and processes. The incumbent chooses its price and its level of investment in innovation. The incumbent’s elasticity of demand under both market structures and the incumbent’s market share under duopoly determine which market structure creates more incentives to innovate. For certain values of these variables, duopoly provides more incentives to innovate than monopoly. As expected, the incentives to innovate increase when the incumbent places greater weight on social welfare.     

A note on endogenous competition mode with managerial‐unionized firms

We analyse the endogenous choice of the competition mode (price vs. quantity) in a duopoly model with managerial delegation and unionized labor markets. Depending on the unions' relative bargaining power and the degree of product differentiation, the set of possible outcomes proves to be very rich, including alternatively a unique quantity or price equilibrium as well as multiple asymmetric‐type equilibria.     

Collateral,relationship lending and family firms

Prior research suggested that relationship lending could play a role in solving asymmetric information problems between borrower and lender. Other studies suggest a relationship between family ownership and the shareholder–bondholder agency conflict. The present paper investigates the impact of relationship characteristics, family ownership and their interaction effects upon the use of collateral in SME lending. We examine the determinants of collateral as well as the determinants of the choice between business and personal collateral using decision tree analysis. The results reveal that relationship characteristics have a significant influence, but not always in the direction as expected. Moreover, they do not seem to be the primary determinants in our classification models. The most important determinants in both classification models seem to be the loan amount, total assets and the family versus non-family firm distinction. In addition, we differentiate between line-of-credit and non-line-of-credit loans and find significant differences between these decision trees.     

In Search of the Harried Leisure Class in Contemporary Society: Time-Use Surveys and Patterns of Leisure Time Consumption

In trying to understand the contemporary work-leisure paradoxes, we go in search for today’s harried leisure class and its equanimous counterpart. We apply the relative new method of optimal matching on the continuous time-use data of the pooled Flemish time-use survey of 1999 and 2004, in order to identify different time-use patterns based on one’s leisure time consumption. We then analyse these time-use patterns by combining a multiple classification analysis with socio-demographic measures and (leisure) time-use characteristics, which allows us to identify today’s harried leisure class on the one hand the opposite “equanimous leisure class” on the other hand. It turns out that the members of today’s harried leisure class combine a great amount of cultural and material resources with the experience of time pressure and voracious and volatile leisure time consumption, whereas the members of the equanimous leisure class mainly consume their leisure time in front of the TV. Typifying these groups based on their consumption characteristics provides useful evidence for the integration of time use in the research field of consumer policy.