Relationships in business markets: Exchange episodes,value creation,and their empirical assessment

Conclusion David Wilson (1995) has provided us with much grist for thought with his integrated framework for customer-supplier relationship development. In focusing on which constructs are “active” and therefore most meaningful at each stage, he has opened a new vista for research in this area. Our models and empirical research ought to reflect this, but to date they largely have not. I have suggested qualitative, longitudinal research as a preferred next step in gaining the knowledge that we will need to make field-survey, longitudinal research worthwhile. Wilson also is to be lauded for drawing greater attention to value creation as a central undertaking in customer-supplier relationships. Understanding and actualizing value creation (and value sharing) are critical aspects of the market-sensing and customer-linking capabilities in market-driven organizations (Day 1994), yet the mechanisms underlying them and the methodologies for accurately assessing them remain largely unknown. Here, particularly for tool development research, it would seem to be an opportune time for business marketing academics and practitioners to form their own collaborative relationships for mutual gain. His research interests are in working relationships between firms in business markets and measurement techniques. His articles have appeared inHarvard Business Review, Journal of Marketing, Journal of Marketing Research, Management Science, Psychological Bulletin, andPsychometrika, among others. He has been vice president of the Business Marketing Division of the American Marketing Association and is a fellow of the American Psychological Association.     

Changes in the theory of interorganizational relations in marketing: Toward a network paradigm

The marketing environment in the 21st century promises to be knowledge rich and very turbulent. The classic, vertically integrated, multidivisional organization, so successful in the 20th century, is unlikely to survive in such an environment. The evidence indicates it will be replaced by new forms of network organization consisting of large numbers of functionally specialized firms tied together in cooperative exchange relationships. This article explores the characteristics of four types of network organization that may represent prototypes of the dominant organizations of the next century. These include the internal market network, the vertical market network, the intermarket network, and the opportunity network. The economic rationale and the types of coordination and control mechanisms driving network organizations are very distinct from those studied under the current exchange or dyadic paradigm. This article analyses the kinds of changes involved in key variables and their meanings in moving from a dyadic view of exchange to a network view. Prior to joining the faculty of The George Washington University in 1991, he was on the faculty of the University of Notre Dame. His areas of research interest include interorganization theory and marketing strategy. His articles have appeared in theJournal of Marketing, Journal of Marketing Research, Social Science Research, Journal of Business Strategy, Journal of Public Policy and Marketing, and various other publications. He is a member of the editorial review board of theJournal of Marketing.     

Consumer information cues in television advertising: A cross country analysis

This paper compares the number of consumer information cues found in television advertisements in three countries: Australia, Ecuador, and the United States. Earlier studies conducted by Resnick and Stern in the United States and Dowling in Australia were replicated in Ecuador. Content analysis of 108 Ecuadorian television advertisements evaluated the number and types of information cues in each commercial. Results indicate that a much greater proportion of Ecuadorian television commercials contain consumer information cues than those broadcast in the other two countries. The explanation suggested for this observation is that Ecuador, due to its level of economic development, has many more products in the introductory stages of the product life cycle. This situation, in turn, requires more extensive communication of consumer information to market the products effectively. This finding implies an additional dimension, information content level, which must be considered when adapting international campaigns to conditions in developing countries.     

Market clearing and derivative pricing

Summary. We develop a method of assigning unique prices to derivative securities, including options, in the continuous-time finance model developed in Raimondo (2001). In contrast with the martingale method of valuing options, which cannot distinguish among infinitely many possible option pricing processes for a given underlying securities price process when markets are dynamically incomplete, our option prices are uniquely determined in equilibrium in closed form as a function of the underlying economic data.Received: 14 April 2003, Revised: 7 January 2004, JEL Classification Numbers: G13, D52.This paper is dedicated to Birgit Grodal, whose strength and character we greatly admire. We are very grateful to Darrell Duffie, Steve Evans, Botond Koszegi, Roger Purves, Jacob Sagi, Chris Shannon, Bill Zame and an anonymous refereee for very helpful discussions and comments. The work of both authors was supported by Grant SES-9710424, and Andersons work was supported by Grant SES-0214164, from the National Science Foundation.     

Has Devolution Injured American Workers? State and Federal Enforcement of Construction Safety

Although the issue of regulatory devolution has received muchscholarly scrutiny, rigorous empirical studies of its effectson important policy outcomes are scarce. This article exploresthe effects of partial regulatory devolution in the occupationalsafety arena by exploiting a unique historical anomaly wherebysome US states enforce protective labor regulations that areenforced elsewhere by the federal Occupational Safety and HealthAdministration. Analyzing data from the construction industry,this article contains several important findings. First, stateinspectors use traditional enforcement tools more sparinglythan their federal counterparts, typically citing fewer violationsand collecting lower fines per violation. Second, although federalenforcement significantly lowers the estimated frequency ofnonfatal construction injuries, it also predicts a significantincrease in occupational fatalities. I suggest that althoughhigher underreporting of nonfatal injuries in federally regulatedstates could explain this puzzling finding, it is equally possiblethat different regulatory styles have different "comparativeadvantages" in deterring nonfatal injuries on one hand and occupationalfatalities on the other. (JEL D73, D78, H73, I18, J08, J28,J88, K00, K23, K31, K32, L51, and L74)     

Four Long-Term Fiscal Realities

The United States faces a long-run fiscal imbalance because of rapid projected growth in Social Security, Medicare, and Medicaid spending. The policy response to the imbalance will be shaped by four long-term fiscal realities. First, revenue will rise as a share of GDP. Second, entitlement spending will be reduced, relative to current policies. Third, the middle class, broadly defined, will bear much of the burden of addressing the fiscal imbalance. Fourth, consumption taxation is likely to become a significant part of the federal tax system, probably through the partial replacement of the income tax by a value added tax.     

Optimal dividend policy and growth option

We analyse the interaction between the dividend policy and the decision on investment in a growth opportunity of a liquidity constrained firm. This leads us to study a mixed singular control/optimal stopping problem for a diffusion that we solve quasi-explicitly by establishing a connection with an optimal stopping problem. We characterize situations where it is optimal to postpone the distribution of dividends in order to invest at a subsequent date in the growth opportunity. We show that uncertainty and liquidity shocks have an ambiguous effect on the investment decision.      

Societal institutions and HRM practices: an analysis of four European multinational subsidiaries in Bangladesh

Using the ‘societal-effect’ approach, a variant of the institutional theory developed and tested in Europe, this study investigates the impact of societal institutions on human resource management (HRM) practices of European multinational subsidiaries in Bangladesh, which is now on the list of the Next-11 economies of the world. In-depth case studies of four European multinational subsidiaries revealed the presence of different degrees of influence – partly attributable to societal effect – on the human resource practices of these subsidiaries. Our study added a new dimension to the interface between the strong and weak institutions and how such interfacing accords both legitimacy and reverse legitimacy to MNC subsidiaries and their societal institutions respectively. Another interesting finding of the study is the emergence of political system as a societal institution and, hence, a determinant of HRM practices in these subsidiaries. The study's implications are given.     

AGENCY COSTS AND THE PERFORMANCE IMPLICATIONS OF INTERNATIONAL JOINT VENTURE INTERNALIZATION

Recent studies have examined the determinants of international joint venture (IJV) formations and stock market reactions to such investments. Less is known, however, about the evolution of IJVs and the attendant performance implications for parent firms. This paper examines one specific type of IJV evolution, IJV internalization, whereby one firm acquires the IJV by buying out its partner(s). Standard agency theory variables are hypothesized to influence parent firm valuation effects. The results indicate that parent firm valuation effects are positively related to the parent firm equity owned by insiders and the interaction of debt financing and free cash flow. © 1997 by John Wiley & Sons, Ltd.