Intraregional Spillovers in South America: Is Brazil Systemic After All?

The high business cycle correlation between Brazil (the large neighbour in South America) and other countries in the region has been a frequent source of concern for policymakers, as it has been viewed as evidence of the large influence of the former country on its neighbours. This paper studies the importance of such influence, documenting trade linkages over the last two decades and quantifying spillover effects in a vector autoregression setting. We find that, after controlling for common external factors, spillovers from Brazil are only relevant for Southern Cone economies (especially Mercosur's members) and Peru, but not for the rest of South America, and these findings are consistent with the extent of trade linkages between these countries. We find also that spillovers can take two different forms: the transmission of Brazil‐specific shocks and the amplification of global shocks – through their impact on Brazil's output. Finally, we also find suggestive evidence that depreciations of Brazil's currency may not have significant impact on output of its key trading partners.     

Mediation effect of TQM technical factors in excellence management systems

This study seeks to examine the relationship between TQM social and technical factors and their effects on organizational results, and takes the EFQM model as a reference. Moreover, through structural equation modeling (Partial Least Squares), the study hypothesizes and tests a mediation model between social factors, technical factors and overall results. The study uses a sample of 116 Spanish firms undergoing complete assessment processes according to RADAR logic. The results show that: (1) an open, flexible and continuous improvement oriented culture, a committed and involved leadership, and efficient management of human resources (TQM social factors) exert a direct and significant impact on the effectiveness of the quality system deployed (TQM technical factors) and on the results; (2) the management and improvement of processes, the alliances with suppliers and other partners, and the management of resources (TQM technical factors) also directly influence results; moreover, (3) this variable partially mediates the effect of social TQM practices on organizational results.     

Inference on factor structures in heterogeneous panels

This paper develops an estimation and testing framework for a stationary large panel model with observable regressors and unobservable common factors. We allow for slope heterogeneity and for correlation between the common factors and the regressors. We propose a two stage estimation procedure for the unobservable common factors and their loadings, based on Common Correlated Effects estimator and the Principal Component estimator. We also develop two tests for the null of no factor structure: one for the null that loadings are cross sectionally homogeneous, and one for the null that common factors are homogeneous over time. Our tests are based on using extremes of the estimated loadings and common factors. The test statistics have an asymptotic Gumbel distribution under the null, and have power versus alternatives where only one loading or common factor differs from the others. Monte Carlo evidence shows that the tests have the correct size and good power.     

Conjoint Analysis of Tourist Choice of Hotel Attributes Presented in Travel Agent Brochures

The purposes of this study are to demonstrate how it is possible to determine which attributes are the most important in the final choices of tourists who use a travel agent brochure as a source of information and how these attributes influence perceived value in a pre‐purchase stage. We conduct the study in three phases: (i) a qualitative study, (ii) an experiment using choice‐based conjoint analysis by means of a fractional factorial experimental design and (iii) another experiment using a full factorial derived from the same design. Results suggest advertisement size, a hotel's starred rating and price influence perceived value at this stage. The presence of a positive combined effect of price and advertising was found. Implications and directions for future applications are offered, focusing particularly on marketing services. Copyright © 2012 John Wiley & Sons, Ltd.     

Regional relationships between inherent coffee quality and growing environment for denomination of origin labels in Nariño and Cauca,Colombia

International markets are increasingly signaling demand for quality-differentiated coffee, which the Colombian Coffee Growers Federation (FNC) proposed to exploit to identify those regional coffees that would fulfill the requirements to be classified as denomination of origin. The objective of this study was to develop and implement a sound, robust and repeatable approach with and for the FNC to identify regional causal relationships between coffee quality and environmental characteristics as bases for labels of denomination of origin. Environmental differences between coffee-growing areas in the departments of Cauca and Nariño were statistically significant for several characteristics, including the number of dry months, annual precipitation and diurnal temperature range. The dominant varieties (Caturra and Colombia) did not show major differences in quality attributes, and were pooled for the analyses with the environmental data. There are significant differences in biochemical and sensorial product characteristics between the two departments. The spatial patterns in product characteristics exhibit a non-random, regionally-changing structure that is related to those in the environmental data. The generated results provided ample evidence to support the application for regionally-based denominations of origin. Recommendations were derived to help mainstreaming the developed approach and thereby facilitate policy decisions for its use in other geographies and with other crops. Furthermore, the importance of systematic interdisciplinary institutional collaboration for large-scale denomination of origin projects was corroborated for food policy dialogue and decision making. It seems plausible that producers of high-quality products within other commodities are likely to follow the FNC in seeking denomination of origin for their goods. The presented approach is crucial to facilitate policy.     

Understanding the drivers of organizational innovations

Organizational innovations involve the implementation of significant changes in business practices, the workplace organization, and external relations. The article reports an analysis of organizational innovations' objectives and adoption in 240 Spanish healthcare businesses. Statistical tests find a dynamic behavior in healthcare organizations with 40.8% having developed an organizational innovation in the period from 2007 to 2009. The main objectives pursued are related to improved knowledge sharing and innovation skills. Results also reveal a close relationship between organizational and product/process innovations. Specifically, healthcare companies developing new organizational methods to improve innovation skills and knowledge sharing are more successful in adopting product and process innovations.     

The Use of Consumer-Generated Feedback in the Hotel Industry: Current Practices and Their Effects on Quality

Consumer-generated feedback is hard to ignore these days. Word-of-mouth has expanded beyond a customer’s immediate friends and family; with the help of technology it reaches thousands of current and prospective guests. In light of this, scholars and practitioners are exploring the subject of consumer-generated feedback. Today, most of the research regarding this subject focuses on the use of consumer-generated feedback to make purchase decisions. In contrast, the present study explores the use of such information for the purposes of improving hotel operations. This article examines the amount of value placed on consumer-generated feedback, the relative importance placed on positive and negative feedback, and its effects on perceived quality. Furthermore, this study inquires as to the specific uses given to consumer-generated feedback in the hotel industry. It is the researchers’ contention that valuing feedback has positive effects on perceived quality. The findings conclude that hotels can use consumer-generated feedback to take actions such as modifying training programs and operating procedures, as well as identifying patterns of complaint and praise.     

Remittances,monetary institutions,and autocracies

ABSTRACT

How do remittances affect the choice of exchange rate regimes? Previous research shows that remittances, by easing the ‘impossible trinity’, increase the probability of governments adopting fixed exchange rates. However, that research overlooks the conditioning effect of monetary and political institutions. We argue that remittances, by altering recipient governments’ incentives to use monetary policy counter-cyclically, make central bank independence a credible anti-inflationary tool in less credible regimes; that is, autocracies. Thus, autocracies that receive remittances do not need to rely on fixed exchange rates. In this way, remittances open policy alternatives for developing autocracies. Statistical tests on a sample of 87 developing and transitional countries between 1980 and 2010 support our argument.     

Putting sport into organizations: The role of the accountant

This paper examines how organizations can promote in their employees similarly high levels of interest, motivation, and fun that participants in sports commonly experience. Particular emphasis is placed on the role accountants can play in using what this paper terms hygiene and elevating factors. Hygiene factors ensure the fair and transparent recording of financial events; without them, the sport of work cannot occur. Elevating factors allow employees to experience their work as fun and enjoyable, and ultimately provide the basis for a high-quality game of work. In helping to put sport into work, accountants will find themselves creating systems that go well beyond what they have done in the past, and dismantling some of the systems they once worked so hard to construct and oversee.