Knowledge flows within multinational corporations

Pursuing a nodal (i.e., subsidiary) level of analysis, this paper advances and tests an overarching theoretical framework pertaining to intracorporate knowledge transfers within multinational corporations (MNCs). We predicted that (i) knowledge outflows from a subsidiary would be positively associated with value of the subsidiary’s knowledge stock, its motivational disposition to share knowledge, and the richness of transmission channels; and (ii) knowledge inflows into a subsidiary would be positively associated with richness of transmission channels, motivational disposition to acquire knowledge, and the capacity to absorb the incoming knowledge. These predictions were tested empirically with data from 374 subsidiaries within 75 MNCs headquartered in the U.S., Europe, and Japan. Except for our predictions regarding the impact of source unit's motivational disposition on knowledge outflows, the data provide either full or partial support to all of the other elements of our theoretical framework. Copyright © 2000 John Wiley & Sons, Ltd.     

Store environment and consumer purchase behavior: Mediating role of consumer emotions

This article presents a large-scale cross-sectional field study of the effect of store environment on consumer emotions and the resulting influence on aspects of consumer behavior with actual shopping behavior used as an example. Cast into a stimulus–organism–response framework, the results suggest that a consumer's emotions can be a mediating factor in the purchase process. In this study, we identify and explore how store environment and emotional states may influence various dimensions of purchase behavior. This research confirms that although cognitive factors may largely account for store selection and for most planned purchases within the store, the environment in the store and the emotional state of consumers may be important determinants of purchase behavior. This research has many pragmatic applications, because pleasure was associated with the amount of money spent and affinity for the store, whereas arousal was associated with money spent in the store, time spent in the store, and the number of items purchased in the store. © 1997 John Wiley & Sons, Inc.     

Testing spatial regression models under nonregular conditions

In time series context, estimation and testing issues with autoregressive and moving average (ARMA) models are well understood. Similar issues in the context of spatial ARMA models for the disturbance of the regression, however, remain largely unexplored. In this paper, we discuss the problems of testing no spatial dependence in the disturbances against the alternative of spatial ARMA process incorporating the possible presence of spatial dependence in the dependent variable. The problems of conducting such a test are twofold. First, under the null hypothesis, the nuisance parameter is not identified, resulting in a singular information matrix (IM), which is a nonregular case in statistical inference. To take account of singular IM, we follow Davies (Biometrika 64(2):247–254, 1977; Biometrika 74(1):33–43, 1987) and propose a test procedure based on the supremum of the Rao score test statistic. Second, the possible presence of spatial lag dependence will have adverse effect on the performance of the test. Using the general test procedure of Bera and Yoon (Econom Theory 9:649–658, 1993) under local misspecification, we avoid the explicit estimation of the spatial autoregressive parameter. Thus our suggested tests are entirely based on ordinary least squares estimation. Tests suggested here can be viewed as a generalization of Anselin et al. (Reg Sci Urban Econ 26:77–104, 1996). We conduct Monte Carlo simulations to investigate the finite sample properties of the proposed tests. Simulation results show that our tests have good finite sample properties both in terms of size and power, compared to other tests in the literature. We also illustrate the applications of our tests through several data sets.     

Mismatch between Material Deprivation and Income Poverty: The Case of Turkey

By employing cross-sectional data obtained from Survey of Income and Living Conditions for the years from 2007 to 2011, we analyze the identification problem of the poor by using both monetary and non-monetary measures. We classify the poor into the following categories: (i) poor in monetary and nonmonetary measures, (ii) poor in monetary measure only, (iii) poor in non-monetary measure only, and (iv) non-poor in both categories. We examine the determinants of each category by utilizing the probit model and find that the share of workers in adults — or the share of informal or agricultural workers — creates some disparities between poverty at a country and regional level.     

Modelling the National Greenhouse and Energy Reporting System's Energy Consumption Under‐Coverage

The new data source for the Australian Energy Statistics, the National Greenhouse and Energy Reporting System, does not require businesses using less than 200 terajoules to report their energy consumption. This results in a data gap in the total industry energy consumption. To estimate the gap, this study models business energy consumption using data from the Australian Bureau of Statistics' 2008–09 Energy, Water and Environment Survey and data from the 2008 to 2009 business activity statement unit record estimates. The article discusses the modelling approaches and methodological issues associated with the estimation of the National Greenhouse and Energy Reporting System's energy consumption under‐coverage. It provides estimation results and suggestions for future research, based on available data.

     

Understanding the Determinants of User Acceptance of Enterprise Instant Messaging: An Empirical Study

As modern organizations increasingly depend on information systems (IS) to enhance work productivity and seek new business opportunities, communication effectiveness has become one of the key factors that underlie the effective performance of IS implementations and applications. Instant Messaging (IM) presents a revolution in enterprise communication. As more organizations are findings ways to utilize this near-synchronous computing communication technology to enhance communication effectiveness in the workplace, there is a compelling need to understand the factors that are important for the adoption of enterprise IM. We have developed an integrative model based on constructs of the existing IT adoption models as well as theories on motivation, innovation diffusion, and critical mass. Using responses from 140 intended subjects, we have found the results of survey data support the contentions that perceived usefulness, compatibility, enjoyment, and security are significant predictors of intention to use enterprise IM. Although perceived connectivity did not predict the intention directly, it did indirectly through perceived usefulness and perceived ease of use. Implications and future research are discussed.     

Increasing school quantity versus quality in kenya: impact on children from low-and high-income households

A common dilemma facing educational planners engaged in educational reform in developing countries is the allocation of sharply-reduced resources to the expansion of school facilities versus improvement of existing school facilities (say, by raising the teacher/pupil ratio). The empirical results presented in this paper for Kenya suggest that the two interventions have diametrically opposite effects on poor and nonpoor children. An expansion of school facilities increases the enrollment of children in the poorest expenditure quintiles but has no impact on the enrollment of children in the top quintiles. On the other hand, an improvement in the teacher-pupil ratio increases the enrollment rate of children in the top quintiles, and actually reduces the enrollment of children in the poor quintiles. These findings suggest that in situations where there is less than universal primary enrollment (UPE) and the government has set a time-bound goal of UPE, such as in Kenya, policies that serve to expand the number of school facilities may make more sense than interventions that increase the teacher-pupil ratio.     

Beliefs,Economic Volatility,and Redistributive Preferences Across Developing Countries

Beliefs about social competition affect redistributive demands and the responsibility assigned to government regarding public provisions. Given the strong link between beliefs and the extent of support for social protection, it is important to explain the cross‐country differences. The paper analyzes the factors that are crucial in explaining redistributive demands across developing countries with a special emphasis on beliefs about social competition. While ideas about luck versus effort in determining economic prospects are explanatory in every country, our findings also suggest that in societies with high economic volatility the role of beliefs is amplified. Vast fluctuations in economic performance fuel the opinion that economic failure is a result of systemic characteristics, and individuals are not necessarily held fully responsible for their material faiths in such settings. Therefore, government is assigned a greater role in basic provisioning.     

Purchasing Power Parity and aggregation bias for a developing country: The case of Mexico

This paper investigates long-run Purchasing Power Parity (PPP) between the US and Mexico. We use a panel of disaggregated price data between the US and Mexico with a long time series to look at two types of aggregation bias. The first is examined in Imbs et al. — which we refer to as estimator aggregation bias — and the second is put forth by Broda and Weinstein — hereafter, data aggregation bias. The findings indicate substantial estimator aggregation bias and data aggregation bias. Although estimates using aggregate data and imposing homogeneous coefficients provide little evidence of PPP, findings with disaggregated data and heterogeneous coefficient estimators offer strong support. The results also suggest the presence of small-sample bias as examined in Chen and Engel, but with little effect on the qualitative results. Tradable goods and non-tradable goods show little distinction in convergence rates. Estimated half-lives are lower under flexible than fixed exchange rates and indicate rapid convergence during the Mexican peso crisis.     

Riskiness of Real Estate Development: A Perspective from Urban Economics and Option Value Theory

In this article, we define a new construct for urban economic and investment analysis, which revisits the conventional wisdom that investment in real estate development is riskier than investment in stabilized property assets. This new construct, referred as a “development asset value index” (DAVI), is a value index for newly developed properties (only) in a given geographical property market. It tracks longitudinal changes in the highest and best use (HBU) value of locations, and it reveals developer and landowner behavior taking advantage of the optionality inherent in land ownership. In particular, the DAVI reflects developers' use of flexibility in the exercise of the call option to (re)develop the property to any legal use and density. We empirically estimate a DAVI for commercial property (i.e., central locations) and compare it with a corresponding traditional transaction‐price‐based property asset price index (PAPI) corrected for depreciation. We believe that the difference primarily reflects the realized value of flexibility in land development. We find that the DAVIs display greater value growth and are smoother over time and less cyclical than their corresponding PAPIs for the same locations. This suggests that developers successfully use flexibility, and that development may be riskier than stabilized property investment due primarily only to leverage effects (construction costs). Practical implications are also discussed.