Dynamic Capabilities and Organizational Performance: A Meta‐Analytic Evaluation and Extension

We move the dynamic capabilities view (DCV) forward in two important ways by meta‐analysing prior empirical studies. First, we evaluate the two core theoretical tenets of the DCV: (1) Dynamic capabilities are positively related to performance, and (2) this relationship is stronger in industries with higher levels of technological dynamism. We find support for the former (r_c = 0.296) but not for the latter, though results suggest the existence of moderators. Second, we theorize and demonstrate empirically that higher‐order dynamic capabilities are more strongly related to performance than lower‐order dynamic capabilities, lower‐order dynamic capabilities partially mediate the relationship between higher‐order dynamic capabilities and performance, and dynamic capabilities contribute more to performance in developing economies than in developed economies. These findings illustrate how the nature of the dynamic capability and the economic context in which it is utilized shape its value, thus offering a more nuanced conceptualization of the dynamic capabilities‐performance relationship.     

Taxing air pollutants and carbon individually or jointly: results from a CGE model enriched by an emission abatement sector

We analyse the separate and collective impacts of emissions taxation to understand the internalisation effects of externalities. The analysis is carried out using a static computable general equilibrium model, with unemployment, bottom-up abatement technologies represented by a step function, and detailed emission coefficients. Environmental and health external costs are quantified using the ExternE’s Impact Pathway Approach. Emissions, as a result of environmental taxation, fall through reduced output, production factor substitution, and increased end of pipe abatement activity. The analysis shows that a full internalisation of environmental externalities can result in modest overall economic and environmental welfare gains. There are, however, differences in terms of employment and output, depending on what combination of taxes are applied, which sectors are covered, and how fiscal revenues are redistributed. Air quality benefits range from €35–75 per ton of CO₂ abated. Total environmental benefits always exceed GDP loss and the associated welfare loss.     

Components of cultural tourists’ experiences in destinations

Destinations provide a combination of products and services. Using these resources, tourists create their own experiences. Providing a pleasing tourist experience is crucial for destinations’ long-term success. Although travellers’ experiences have been subject to extensive research, various segments might perceive them differently based on their motivations. Despite the fact that cultural tourism is considered as an important segment for most urban destinations, factors affecting cultural travel experiences have not been clarified in the literature so far. Therefore, the primary purpose of this study is to determine the factors affecting cultural tourists’ overall travel experiences. In order to achieve this study's goals, we chose Istanbul as a research context. After interviewing 21 tourists and analysis of transcribed data, 64 items were merged under 5 dimensions emerging as the key constructs affecting cultural tourist experiences in a destination, namely social interaction, local authentic clues, service, culture/heritage and challenge. Theoretical and practical implications were discussed.     

Exploring the Effect of Store Characteristics and Interpersonal Trust on Purchase Intention in the Context of Online Social Media Marketing

This article explores the effect of store characteristics and interpersonal trust on formation of attitude and intention to purchase from online stores in the context of online social media marketing. Store Brand Knowledge, Store Reputation, Perceived Store Size, and Perceived Store Risk have been considered as antecedents of trust. Based on existing literature, a conceptual model is proposed and empirically tested with a sample (n = 424) of online social media users with the help of partial least square path modeling. This study is among the very few empirical investigations done in the context of trust in online social media marketing and focuses only on consumer-perceived store-controlled factors as antecedents of trust.     

Using Meta-Analysis and GIS for Value Transfer and Scaling Up: Valuing Climate Change Induced Losses of European Wetlands

There is growing policy and academic interest in transferring ecosystem service values from existing valuation studies to other ecosystem sites at a large geographic scale. Despite the evident policy demand for this combined transfer and “scaling up” of values, an approach to value transfer that addresses the challenges inherent in assessing ecosystem changes at a national or regional level is not available. This paper proposes a methodology for scaling up ecosystem service values to estimate the welfare effects of ecosystem change at this larger geographical scale. The methodology is illustrated by applying it to value the impact of climate change on European wetlands for the period 2000–2050. The proposed methodology makes use of meta-analysis to produce a value function. The parameters of the value function include spatial variables on wetland size and abundance, GDP per capita, and population. A geographic information system is used to construct a database of wetland sites in the case study region with information on these spatial variables. Site-specific ecosystem service values are subsequently estimated using the meta-analytic value function. The proposed method is shown to enable the adjustment of transferred values to reflect variation in important spatial variables and to account for changes in the stock of ecosystems.     

Analysing the risks of adopting circular economy initiatives in manufacturing supply chains

The concept of circular economy (CE) has proven its worth due to the scarcity of natural resources and huge amounts of wastage which impacts the environment. Thus, the adoption of the CE concept in the supply chain becomes critical. However, due to the complex nature of processes/activities in the circular supply chain (CSC), managing risk has become a priority to avoid disruption. In current literature, no discussion has been conducted on how to analyse the risks in the context of CSC. Therefore, to fill this literature gap, this study concentrates on identifying and analysing the risks to promote effective circular initiatives in supply chains in the context of the manufacturing industry, thus minimising the negative environmental impact. A total of 31 risks were identified through an extensive literature review and discussions with experts. A grey-based decision-making trial and evaluation laboratory (DEMATEL) method is applied by incorporating the experts' knowledge to compute prominence and cause/effect scores to develop an interrelationship map. Finally, a vulnerability matrix for risk categories is developed using the average of prominence and cause/effect scores of risks. The results show that transparent process is the most prominent risk and branding is the least significant risk. By using the average prominence and cause/effect score, a risk category, namely, financial risk, is identified as most vulnerable to CSC. These findings will help industry managers not only to prepare business strategies in the adoption of CE initiatives in supply chains by eliminating risks but also in minimising negative environmental impact.     

Sovereign Wealth Funds: A Growing Global Force in Corporate Finance

Sovereign wealth funds (SWFs) have emerged as among the most important players in global financial markets. With an estimated $3 trillion at present, the collective assets at their disposal are expected to reach or surpass $7.5 trillion by 2012. SWFs have shown a wide range of investment objectives, along with continually evolving time horizons and risk appetites. For example, some SWFs have become increasingly active in corporate acquisitions and other strategic transactions. Though many of these funds prefer to invest in debt or non‐controlling equity positions, a small but growing number are seeking substantial minority and controlling equity stakes. SWFs have also recently become major participants in the financial institutions and alternative investment industries, with several high profile investments in well‐known private equity firms and financial services companies. In certain corporate transactions, their longer time horizons and willingness to employ larger percentages of equity have made them attractive alternatives to established private equity. At the same time, however, the rising prominence and perceived lack of transparency of SWFs have raised concerns among governments and other market participants in countries where companies have been targeted for investment. For this reason, companies intent on obtaining funding from or investing with SWFs are advised to prepare for media and regulatory scrutiny, particularly if a transaction is perceived to involve a country's strategic or security interests. Government policymakers are urged to balance the perceived threats of SWFs against their potential benefits, particularly their ability to provide a stabilizing source of global liquidity in the current economic environment.     

Dividend policy determinants of Indian FMCG sector： A factorial analysis

Profitability has always been considered as a primary indicator of dividend payout by a company. There are factors other than profitability namely cash flows, debt equity ratio, retained earnings, sales growth, share prices of a company, capital expenditure and beta etc. that also affect dividend decisions of an organization. Existing literature suggests that dividend payout is positively related to profits, cash flows while CAPEX （capital expenditure） retained earnings, sales growth, share prices, beta, interest paid and debt equity ratio have inverse relationship. A set of 21 key variables have been identified that affect the dividend payout of a firm. Researchers in the past have used several proxies to represent these determinants. Authors have tried to find out which proxy variable is most relevant in the present scenario. The paper attempts to give a focused overview of the important dividend theories and empirically analyze the determinants of dividend behavior of Indian FMCG （Fast moving consumer goods） sector. The relationship between key variables has been explored with the aid of statistical techniques of factor analysis. Thus, the main theme of this study is to examine the various factors that influence the dividend policy decisions of FMCG firms in India.     

Managing Pension Risks: A Corporate Finance Perspective

Defined benefit (DB) pension plans of both U.S. and European companies are significantly underfunded because of the low interest rate environment and prior decisions to invest heavily in equities. Additional contributions and the recovery of stock markets since the end of the crisis have helped a bit but pension underfunding remains significant. Pension underfunding has substantial corporate finance implications. The authors show that companies with large pension deficits have historically delivered weaker share price performance than their peers and also trade at lower valuation multiples. Large deficits also reduce financial flexibility, increase financial risk, particularly in downside economic scenarios, and contribute to greater stock price volatility and a higher cost of capital. The authors argue that the optimal approach to managing DB pension risks relates to the risk tolerance of specific companies and their short and long‐term strategic and financial priorities. Financial executives should consider the follow pension strategies:

• Voluntary Pension Contributions: Funding the pension gap by issuing new debt or equity can provide valuation and capital structure benefits—and in many cases is both NPV‐positive and EPS‐accretive. The authors show that investors have reacted favorably to both debt‐ and equity‐financed contributions.
• Plan de‐risking: Shifting the pension plan's assets from equity to fixed income has become an increasingly popular approach. The primary purpose of pension assets is to fund pension liabilities while limiting risk to the operating company. The pension plan should not be viewed or run as a profit center.
• Plan Restructuring: Companies should also consider alternatives such as terminating and freezing plans, paying lump sums, and changing accounting reporting.