Sequential Betting Behavior: A Test of Asymmetric Inconsistencies in Group Decision Making

Previous research has shown that individual decision makers tend to bet more than initially planned after experiencing a loss but not after a gain. This research tests whether groups in consensus decision‐making contexts also demonstrate similar asymmetric inconsistencies. Two experiments, one at the individual level and one with three‐person groups, were carried out based on a gambling‐type betting task. Although individuals planned more conservatively than groups regarding their betting behavior after the first outcome, both individuals and groups misestimated their own betting behavior after losses but not after gains. Negative, but not positive, emotional reactions to previous decision outcomes were also misestimated, leading to incorrect predictions of future behavior. Implications for theory and future research are discussed.     

When do Firms Invest in Corporate Social Responsibility? A Real Option Framework

Digital piracy as a continuing problem significantly impacts various stakeholders, including consumers, enterprises, and countries. This study develops a three-level mechanism of determinants of consumer digital piracy behavior, with personal risk as an individual factor, susceptibility to interpersonal influence as an inter-personal factor, and moral intensity as a broad societal factor. Further, it explores the role of rationalization and future piracy intent as outcomes of past piracy behaviors. The authors use survey data from four countries in the European Union to test the system of structural relationships. With an exception of the effect of consumers’ susceptibility to interpersonal influence on piracy behavior, the conceptual model receives remarkably consistent support across the four countries. Specifically, perception of personal risk and moral intensity negatively affected the reported piracy behavior in all four countries. The results further support the negative influence of moral intensity and the positive influence of past digital piracy behavior on consumers’ use of rationalization. Lastly, personal risk, rationalization, and past digital piracy behavior directly influenced consumers’ intention to engage in digital piracy in the future. The study also discusses implications of the findings and identifies areas of future research.     

Estimation of Randomisation Mean Square Error in Small Area Estimation

In this article, we propose a new method for estimating the randomisation (design‐based) mean squared error (DMSE) of model‐dependent small area predictors. Analogously to classical survey sampling theory, the DMSE considers the finite population values as fixed numbers and accounts for the MSE of small area predictors over all possible sample selections. The proposed method models the true DMSE as computed for synthetic populations and samples drawn from them, as a function of known statistics and then applies the model to the original sample. Several simulation studies for the linear area‐level model and the unit‐level mixed logistic model illustrate the performance of the proposed method and compare it with the performance of other DMSE estimators proposed in the literature.     

How do new ventures grow? Firm capabilities, growth strategies and performance

While new venture growth performance has been studied extensively, little work has been done to examine the complex strategic choices through which growth is pursued and attained. Building on the resource-based view and social capital perspective, this study develops a conceptual framework that links combinations of ventures' (1) technological, (2) financial, and (3) networking capabilities to different growth strategies in terms of organic growth, partnership, and acquisition. We further assess the mechanisms through which a new venture's growth choices affect firm performance. Using data from 238 new high-tech ventures in China, we find that new ventures with different resource combinations follow different growth strategies. While partnership growth leads to greater product diversity, and acquisition is more effective in realizing firm internationalization, both lead to a better chance of survival of new ventures. In addition, the study explicates the role of technological capability in moderating the relationship between growth strategies and new venture performance.     

STRATEGY, STRUCTURE AND ENVIRONMENT: CONTEXT INFLUENCES UPON SOME BIVARIATE ASSOCIATIONS

In studying organizational adaptation most researchers tend to draw sample- wide conclusions about the relationships among strategic, structural, and environmental variables. More often than not, the findings of different investigators are in conflict. Particular variables are said by some to covary positively, while different studies demonstrate a negative relationship. This paper attempts to show that the direction and significance of bivariate product-moment correlations may vary significantly, logically, and systematically according to the adaptive approach used by firms. A sample of firms is segmented into four parts, which are internally homogeneous in the evolutionary patterns among environmental, organizational, and strategy-making variables. The findings from a correlational analysis of each sub-sample indicate how some common discrepancies in the literature show the promise of being resolved when the differences in the contexts of the bivariate relationships are examined.     

Author Index Volume 23 2002

Authors Index

Author Index Volume 23 2002     

Reviews

Regions. ERA 1998: 21st CENTURY REGIONS. London: Economic & regional analysis, 23. Buckingham Gate, London SW1E 6LB, £30 + £1 p&p paper.

Environmental management standards. Krut, R. and Gleckman, H. 1998: ISO 14001: A MISSED OPPORTUNITY FOR SUSTAINABLE GLOBAL INDUSTRIAL DEVELOPMENT. London: Earthscan Publications Ltd, £14.95 paper.

Environmental jobs. Hale, M. and Lachowicz, M. 1998: THE ENVIRONMENT, EMPLOYMENT AND SUSTAINABLE DEVELOPMENT. London: Routledge, £17.99 paper.

Sustainability and regeneration. Carley, M. and Kirk, K. 1998: SUSTAINABLE BY 2020? A STRATEGIC APPROACH TO URBAN REGENERATION FOR BRITAIN'S CITIES. Bristol: The Policy Press, £11.95 paper.

Gambling. Frey, J.H. (ed) 1998: GAMBLING: SOCIOECONOMIC IMPACTS AND PUBLIC POLICY. The Annals of the American Academy of Political and Social Science. London: Sage Publications, £14.99 paper.

Informal employment. Williams, C. C. and Windebank, J. 1998: INFORMAL EMPLOYMENT IN THE ADVANCED ECONOMIES: IMPLICATIONS FOR WORK AND WELFARE. London: Routledge, £15.99 paper.

TECS. Jones, M. 1999: NEW INSTITUTIONAL SPACES: TECS AND THE REMAKING OF ECONOMIC GOVERNANCE. London: Regional Studies Association, £27.50 paper.

The New Regional Agenda. Dungey, J. and Newman, I. 1999: THE NEW REGIONAL AGENDA. London: Local Government Information Unit, £15.00 paper.

Mutual aid and self-help. Burne, Danny and Taylor, Marilyn, 1998: MUTUAL AID AND SELF-HELP: COPING STRATEGIES FOR EXCLUDED COMMUNITIES. Bristol: The Policy Press, £10.95.     

On the Productivity of Public Forests: A Stochastic Frontier Analysis of Mississippi School Trust Timber Production

This paper presents the results of a stochastic frontier analysis on the technical efficiency of school trust timber production in Mississippi. The state of Mississippi has a 200‐year history of managing public trust lands designated to generate funds for public schools. Local school boards became the trustees of sixteenth section lands in the 1970s and have since supervised substantial increases in timber receipts. The majority of the timber management services are contracted to the Mississippi Forestry Commission (MFC)—a state agency responsible for, among other things, overseeing sixteenth section timber management. The school districts and the MFC are legally required to maximize revenue from these lands. However, school districts are also legally permitted to outsource forestry services to private vendors and do so on a regular basis by recommendation from the MFC. This paper finds that the average technical efficiency of the sixteenth section lands is 46%, and there is a positive and statistically significant increase in total timber receipts when a higher proportion of management services are outsourced. Le présent article présente les résultats d'une analyse frontière stochastique de l'efficacité technique de la production de matières ligneuses sur les lots réservés aux écoles publiques dans l'État du Mississippi. Cet État possède deux cents ans d'histoire en gestion de terres publiques destinées au financement des écoles publiques. Les conseils scolaires locaux sont devenus les administrateurs des lots numéro 16 dans les années 1970 et gèrent depuis des augmentations substantielles de revenus tirés de la forêt. La majorité des services de gestion des matières ligneuses sont confiés à la Mississippi Forestry Commission (MFC), agence d'État chargée, entre autres, de la gestion de la matière ligneuse des lots numéro 16. Les arrondissements scolaires et la MFC sont légalement tenus de maximiser les revenus de ces lots. Les arrondissements scolaires peuvent, en vertu de la loi, confier les services forestiers à des entreprises privées, ce qu'ils font régulièrement sur recommandation de la MFC. Les résultats du présent article ont montré une efficacité technique moyenne des lots numéro 16 de 46% et une augmentation statistiquement significative et positive des revenus totaux tirés de la forêt lorsqu'une grande partie des services de gestion étaient impartis.     

EVOLUTION AND REVOLUTION: A QUANTUM VIEW OF STRUCTURAL CHANGE IN ORGANIZATIONS

There may be hidden costs in making prompt incremental and piecemeal changes to organizational structure to cope with a new strategy or environment. We shall argue that changeless stable intervals punctuated by infrequent but revolutionary periods of ‘quantum’or multifaceted structural change may sometimes be the most economical strategy. Incremental structural changes may create severe and costly disharmonies as they destroy an integral structural configuration. These costs might outweigh the benefits of adapting structure to changes in strategy and environment. Because such costs may be high it might be necessary to delay changing until they can be justified. Such delays can require subsequent revolutionary structural changes. The applicability of this view of change for different contexts will be discussed.