Hired hooves: Transactions in a south Indian village factor market

Bullocks are an important resource in Indian agriculture where they are used as draft animals. Previous research suggests that farmers who do not own bullocks, or own bullocks in insufficient numbers relative to their land holdings, adjust bullock-land ratios through transactions in the land market, rather than by hiring bullock services. The reasons given for this behaviour are that there are 'inhibited' or 'missing' village markets for bullock services. Results from a survey of the activities and transactions of six bullock contractors during an entire cropping period show that village markets for bullock services exist continuously and are far from being inhibited. Close monitoring of the bullock contractors' transactions supplied rich evidence of the manifold contractual arrangements used in this village market for bullock services.     

A Comparison of Models Describing the Impact of Moral Decision Making on Investment Decisions

As moral decision making in financial markets incorporates moral considerations into investment decisions, some rational decision theorists argue that moral considerations would introduce inefficiency to investment decisions. However, market demand for socially responsible investment is increasing, suggesting that investment decisions are influenced by both financial and moral considerations. Several models can be applied to explain moral behavior. We test the suitability of (a) multiple attribute utility theory (MAUT), (b) theory of planned behavior, and (c) issue-contingent model of ethical decision making in organizations. In an experimental setting, 141 participants traded company shares in a computerized asset market. Over 12 periods, companies varied in morality (i.e., treatment of employees) and in profitability (i.e., expected dividends per share). Participants’ bids and asks for shares were recorded. Results indicate that moral considerations influence investment decisions, controlling for profit. Differences between the three models are discussed.     

Governance and Globalisation

Unlike the large literature on ‘democracy and trade’, there is a much smaller literature on the effect of the level of democracy in a nation on the level of its foreign direct investment (FDI) inflow. These few studies reveal mixed empirical results, and surprisingly only one study has examined bilateral FDI flows. Moreover, few of these studies use multiple governance indicators separating the ‘pluralism’ effect of democratic institutions from the ‘good governance’ effect, there are no studies on democratic institutions’ various effects on the level of FDI relative to trade, and there are no studies of democratic institutions’ various effects on the selection of countries into FDI. We focus on three contributions. First, we examine the simultaneous effects of the World Bank's (six) Worldwide Governance Indicators (WGIs) – which allow separating the effects of pluralism from those of five other good governance measures – on bilateral trade, FDI and FDI relative to trade using state‐of‐the‐art gravity specifications. Second, we find strong evidence that – after accounting for host governments’ effectiveness in various roles of good governance – a higher level of pluralism as measured by the WGIs’ Voice and Accountability Index reduces trade levels, likely by increasing the ‘voice’ of more protectionist less‐skilled workers, but not FDI levels. Moreover, we find qualitatively different effects of other WGIs – such as political stability – on trade versus FDI flows. Third, we account for firm heterogeneity alongside a large number of zeros in bilateral FDI flows using recent advances in gravity modelling. We distinguish between the (country) intensive and extensive margins and show that pluralism affects FDI inflows negatively at the intensive margin, but positively at the extensive margin.     

Born global or local? Factors influencing the internationalization of university spin-offs—the case of Halmstad University

A wealth of research in the past decades has examined born globals or international new ventures, which are firms that from inception view the whole world as a market and as a source to access resources. Many of these firms build their competitive advantage on high-tech knowledge. However, although many studies have shown how born globals can achieve success if they access resources through their relationships from actors in their networks, few studies have explored the relationship between born globals and universities. Universities are important actors in creating new technology knowledge, and many studies have shown how new firms, or so-called university spin-offs (USOs), are formed around universities. The current study explores why some USOs are successful in their international growth strategy and discusses the factors that influence and facilitate the internationalization process. The study investigates 10 USOs around the newly established Halmstad University in Sweden and finds that universities have a positive effect on firm creation and initial international growth. The regional competence base increases from the establishment of a local university, primarily by strengthening the regional human capital and by increasing university research. This study shows that researcher entrepreneurs’ ventures start as born globals, but that these firms do not continue to grow. Born global business models, per se, do not lead to competitive advantage and successful internationalization. Instead, a strategy built on customer focus and an ability to adapt to different customer demands lead to growth, and the location of growth is dependent on the size of the home market. This study also shows that student entrepreneurship can be a successful growth strategy for USOs focusing on both international and local markets.     

The Impact of Price Level and Appeal Type in Hotel Advertising: A Pilot Study

Limited extant experimental research on advertising appeal effectiveness in the presence of price cues in a service offer provides the motivation for this study. While past research has found support for the effectiveness of both rational and emotional appeals in services marketing, this research, in the context of hotel advertising, shows that appeal type effectiveness may vary with the price level of the service. More specifically, this study finds that rational appeals are more effective than emotional appeals for low-priced hotels, but for high-priced hotels, rational and emotional appeals show no significant difference in influencing consumer evaluations of the offer.     

The innovation trajectory of eco-cement in the Netherlands: a co-evolution analysis

In this article, we scrutinize the innovation trajectory of eco-cement in the Netherlands by examining the innovation nexus of eco-cement manufacturers, scientists/researchers, waste producers and policymakers as part of a broader analysis of markets, policy and society, with special attention to standards and regulations. The influence of policy and innovation interactions are substantiated by policy documents, media news, patterns of eco-cement use, and in-depth interviews conducted with relevant eco-cement actors. Our analysis brings forward empirical evidence of how policymakers are involved in the innovation trajectory of eco-cement in multiple ways through building regulations, sector policies, waste policies, and science and innovation policies. Political economy aspects of regulation and innovation in cement industry (e.g. the cooperative approach of waste authorities with regard to re-use of waste, absence of policies to put a price on CO₂ emissions from cement production) are being described, together with the specificities of the cement market. Bans on the disposal of fly ash and sewage sludge resulted in the use of those materials either as a supplementary cementitious material or a fuel. Demand for green cement from is presently growing but meets with several obstacles. Carbon policies are shown to constitute a weak influence. Innovation in eco-cement co-evolved with policy, through mutual dependencies, as a theoretical finding for innovation studies.     

Organic as a Heuristic Cue: What Spanish Consumers Mean by Organic Foods

One of the strategies employed by companies to differentiate themselves from others, in the food market, has been to market organic products according to the assumption that environmental values are an important influence on people's behavior. However, studies of the behavior of organic food consumers show that there is some debate on this subject. Although some studies associate organic food consumption with motives and attitudes in which the environment plays a predominant role, a greater number conclude that the motives for consuming this type of food are basically egoistic (related to health, food safety, or the quality or flavor of the food). This can lead to problems in deciding the central thrust of the marketing strategy. The purpose of this paper is to analyze the meaning and interpretations placed on the term “organic,” and how they are integrated, as a way to explain consumption behavior. Qualitative research methods were adopted for this purpose. Four focus group sessions with different sociodemographic profiles, held in the cities of Madrid and Seville, in Spain, displayed two evident paradoxes, which could indicate that environmental motives are not important for consumers in this market. It is concluded that the term “organic” plays an important role as a heuristic cue to superiority, irrespective of the consumer's knowledge about the real features of organic food. Three alternative models are presented to explain consumer behavior. These results could be useful to food companies, largely in connection with positioning this type of product and with their communications policy.     

Market-Channel Choices of Indonesian Potato Farmers: A Best–Worst Scaling Experiment

We present an empirical analysis of how buyer (and trader) attributes influence decisions of market participation and channel choice among smallholder potato farmers in West Java, Indonesia. We use a best–worst scaling experiment to evaluate the determinants of these decisions and gauge the influence of buyer attributes. Our latent-class cluster analysis reveals that producers have heterogeneous preferences for buyer attributes, which address classic smallholder constraints such as access to inputs, credit, and information. This heterogeneity can be somewhat explained by household characteristics and assets. The broad mass of our sample sought buyers whose attributes imply lower market risk for farmers. Yet roughly a quarter of our sample, a portion that included farmers with large, specialised farms, sought buyers who could provide inputs such as high-quality seeds.     

IFRS framework-based case study: DaimlerChrysler – Adopting IFRS accounting policies

This instructional case applies a framework-based approach to explore the concept of comparability in financial reporting and retrospective application of new accounting policies. The DaimlerChrysler (DC) case provides an opportunity for you to research key financial reporting concepts, analyze accounting policy differences between U.S. GAAP and IFRS, determine adjustments necessary to convert financial statements from U.S. GAAP to IFRS, and compute and discuss key ratio impacts following financial statement conversion. This case demonstrates that transitioning to IFRS is more than an accounting issue; it provides opportunities for financial restructuring (e.g., Daimler’s amendments to pension plans and its 2007 sale of Chrysler). It also illustrates the importance of professional judgment when initially adopting IFRS accounting policies. Also, despite FASB and IASB convergence efforts, you learn that most of the key differences between U.S. GAAP and IFRS identified in DC’s reconciliations continue today. This case helps you to: (1) develop skills to interpret and apply the requirements on first-time adoption of IFRS to a real-world setting; (2) research key differences between U.S. GAAP and IFRS and their effects on the financial statements and ratios; and (3) understand significant impacts of the transition to IFRS on businesses and financial statements. Completing the case develops your critical thinking and research/technological skills.