The more business owners, the merrier? The role of tertiary education

Policy in developed countries is often based on the assumption that higher business ownership rates induce economic value. Recent microeconomic empirical evidence may lead to a more nuanced view: Especially the top-performing business owners are responsible for the value creation of business owners. Other labor market participants would contribute more to economic value creation as an employee than as a business owner. The implied existence of an “optimal” business ownership rate would thus replace the dictum of “the more business owners, the merrier.” We attempt to establish whether there is such an optimal level, i.e., a quadratic relation between the business ownership rate and economic output rather than a linear or higher-order relationship, while investigating the role of tertiary education. Two findings stand out. First, by estimating extended versions of traditional Cobb–Douglas production functions on a sample of 19 OECD countries over the period 1981–2006, we indeed find robust evidence of an optimal business ownership rate. Second, the relation between business ownership and macroeconomic productivity is steeper for countries with higher participation rates in tertiary education. Thus, the optimal business ownership rate tends to decrease with tertiary education levels. This is consistent with microeconomic theory and evidence showing that business owners with higher levels of human capital run larger firms.     

New Voting Correspondences Obtained from a Distance-Based Framework

We focus on voting methods that can be described from the information contained in the paired comparison matrix, trying to minimize some type of distance with respect to unanimously good situations. In this context, we obtain a new Voting Correspondence family and, to a certain extent, a new voting method belonging to it, called the Lexicographic MaxMin, and we analyze them with respect to some individual rationality properties like Monotonicity and Participation.     

The Impact of Relational Variables on Value Creation in Buyer–Seller Business Relationships

Purpose: This research was aimed at attaining a deeper knowledge of how customer value creation can be improved in business markets. Although trust and commitment (as relational governance mechanisms) appear to have a positive effect on customer value creation, limited empirical evidence exists about the combined effect of the aforementioned variables on improving customer value creation. This article studies why trust and commitment are key precursors to improving customer value creation in commercial relationships among companies.

Methodology: Following a review of the literature, we introduce and contrast a conceptual model on a sample of 181 manufacturing companies located in Spain by means of a structural equation system.

Originality: The study of these causal relationships is relevant because it provides greater knowledge of the role played by the key relational variables of trust and commitment on improving customer value creation in business markets. These variables also have an important influence on the development and maintenance of a relationship in the long term and have been the focus of recent marketing research.

Findings: The empirical results reveal that: (1) distributor commitment is a direct and positive antecedent of value creation in a relationship, understood from a functionalist perspective; (2) distributor trust, the other relational variable, has an indirect effect on value creation through the distributor's commitment; and (3) this research does not tie in with previous studies that found that direct value-creating functions have a multiple-component nature representing a second-order factor.     

Upgrading and Competitiveness Within the Export Manufacturing Industry in Central America,Mexico, and the Dominican Republic

The competitiveness of the export manufacturing industry (EMI) in Central America, Mexico, and the Dominican Republic has been significantly eroded by increasing competition from Asian countries in the past decade. This paper examines technological upgrading strategies followed by export-oriented manufacturing firms that operate under various investment attraction and export promotion schemes such as maquila and free zones in order to face the increasing Asian competition. In particular, it aims to study why the strategies followed in the two main sectors of the EMI—electronics and apparel—have had significantly different impacts on export competitiveness. Although the empirical evidence shows that both sectors have mainly followed process upgrading strategies, and to a lesser extent functional and inter-sectoral upgrading, the type of governance of the global value chain, sector-specific characteristics, and corporate strategies help explain their diverging impacts on competitiveness.     

Identification,Reputation, and Performance: Communication Mediation

ABSTRACT

This study focuses on a possible mediation by communication in the identification-organizational performance and identification-corporate reputation relationships. The review of the literature indicates that (a) companies with good reputations have better performances, (b) the stronger employee identification is, the better the reputation and performance, and (c) communication plays an important role in emphasizing the mode in which the organization presents itself to its stockholders. This study reveals that communication is a partial mediator in the relationships studied, suggesting that managers early on establish the form of communication, emphasize to a greater degree managerial communication, and not concentrate all their attention on marketing communication. The study involved 1,025 employees in various organizations and applied modeling of structural equations and the method proposed by Baron and Kenny (1986 Baron , R. M. , and Kenny , D. A. ( 1986 ). “The Moderato-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations,” Journal of Personality and Social Psychology , Vol. 51 , No. 6 , pp. 1173 – 82 .[Crossref], [PubMed], [Web of Science ®] , [Google Scholar]) to evaluate the mediation between the variables.     

Consumers' experiences of cold chain food packaging: A qualitative study among women in South Africa

Food packaging defines a product's uniqueness and strengthens consumers' relationship with a brand, in this way offering functional and experiential benefits. Although cold chain food is predicted to become even more important to consumers, consumers' experiences of the packaging of these products have been neglected in the literature. Thus, this exploratory study investigated these experiences of female participants in Potchefstroom, South Africa, using semi‐structured interviews and a projective technique assisted by ambiguous mock packaging. The findings reveal that despite marketers' intention to use packaging to lure consumers to purchase food products, participants also valued functionality and quality in cold chain food packaging. This study also identified a dislike of carton boxes and preference for plastic bottles for this kind of packaging, as well as further negative and positive characteristics for consideration by manufacturers. Although brand loyalty and price sensitivity were stronger considerations for some participants than the packaging, the latter seemed to play a pre‐eminent role in most participants' purchasing decisions. Therefore, it is recommended that when designing packaging for frozen and refrigerated foods, product developers and manufacturers should take into account consumers' experiences, requirements and needs of the packaging specific to cold chain food. Our research offers a starting point for designing cold chain food packaging that complies as closely as possible with consumers' expectations.     

What Governance Roles do Municipalities use in Dutch Local Social Support Networks?

Abstract

Until now, there is no consensus about variations in governance roles. This consensus is necessary to enable researchers to examine how network are governed well. In this article, the governance roles are considered to be clusters of consistent choices on a top-down versus bottom-up continuum, regarding nine governance activities. Our results reveal that three governance roles can be discerned: top-down, intermediate and bottom-up governance roles. Furthermore, these roles are applied by municipalities with specific (network) characteristics. Our results open the black box of network governance and might facilitate municipalities to make choices regarding their role in the new network era.     

Public Management and Network Specificity: Effects of colleges’ ties with professional organizations on graduates’ labour market success and satisfaction

Abstract

Research on managerial networking in the public sector reports positive effects of network activity on performance. However, little is known about which network relations influence different aspects of performance. We argue that for specific organizational goals, organizations should direct their networking activities towards specific types of organizations. We explore how different types of network relations of Dutch colleges for nursing studies affect the performance of these colleges. We analyse the effect of ties with professional organizations on: (1) graduates’ program satisfaction, (2) graduates’ wages and (3) graduates’ employment (n = 1,484 graduates). Multilevel analyses show that colleges’ ties with professional organizations positively affect graduates’ wages and employment.     

Entrepreneurial intervention in electronic markets: the influence of customer participation

In electronic markets, web 2.0 is emerging in a disruptive way. In this work we conceptualize web 2.0, identifying all its functionalities and firm applications. We describe technological and social changes that should brought in the firm to take benefit of the advantages of the web 2.0, as well as its relationship with knowledge management. We explain how knowledge transfer in the firm can create value through web 2.0 applications. Finally we develop a model who relates the web 2.0 and its potential to create value in the firm, adapting Amit and Zott (Strategic Management Journal 22: 493–520, 2001)’s dimensions to the web 2.0 particular case.     

GENERALIZED AUTOREGRESSIVE SCORE MODELS WITH APPLICATIONS

We propose a class of observation‐driven time series models referred to as generalized autoregressive score (GAS) models. The mechanism to update the parameters over time is the scaled score of the likelihood function. This new approach provides a unified and consistent framework for introducing time‐varying parameters in a wide class of nonlinear models. The GAS model encompasses other well‐known models such as the generalized autoregressive conditional heteroskedasticity, autoregressive conditional duration, autoregressive conditional intensity, and Poisson count models with time‐varying mean. In addition, our approach can lead to new formulations of observation‐driven models. We illustrate our framework by introducing new model specifications for time‐varying copula functions and for multivariate point processes with time‐varying parameters. We study the models in detail and provide simulation and empirical evidence. Copyright © 2012 John Wiley & Sons, Ltd.