MNC strategies and linkage effects in developing countries

The study addresses the implications MNC strategies have for linkage effects in developing countries. Two contrasting MNC strategies, which reflect an integration-responsiveness dichotomy, are scrutinized in terms of their effects on jobs among local linkage partners in developing countries. It is hypothesized that the investments of MNCs pursuing local responsiveness create more jobs among local linkage partners, but imply less job upgrading, when compared to investments undertaken by MNCs following strategies of global integration. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries.     

Plural governance: The effect of internal production on supplier performance

We suggest that both making and buying the same product or service has several effects on supplier performance. A model is developed and tested by use of answers gathered from the Danish municipalities. The results support the three hypotheses that (1) the negative effects of technological uncertainty on supplier performance decrease when buyers combine internal production and external sourcing, (2) the negative effects of performance uncertainty on supplier performance decrease when buyers combine internal production and external sourcing, and (3) the negative effects of asset specificity on supplier performance decrease when buyers combine internal production and external sourcing. However, the moderating effects depend on how the plurality is measured. The results indicate that internal production may facilitate effective governance of the relationships with external suppliers. Implications for research on make-or-buy decisions and for practice are also discussed.     

The influence of positive affect on consideration set formation in memory-based choice

Although prior research has examined whether positive affect can impact consideration set size in stimulus-based choice, unknown to this point is whether affective influences also characterize memory-based consideration processes. This distinction is important insofar as consideration in memory-based choice entails psychological processes (including those involving the accessibility of brands) that are unique to choice undertaken in memory-based settings. Experiment 1 provides an initial demonstration of positive affect’s ability to shape memory-based consideration by documenting that positive (versus neutral) affect leads to larger consideration sets. Two additional experiments extend these findings by showing that the influence of positive affect on consideration set size is moderated by characteristics of brands (typicality) and consumers (regulatory focus). Experiment 2 demonstrates that this increase in memory-based consideration set size is attributable to a greater number of atypical, but not typical, brands being considered under positive affect. Experiment 3 documents the moderating effect exerted by consumers’ regulatory focus by showing that the ability of positive affect to increase consideration set size is more likely for consumers high (but not low) on promotion focus. The theoretical and managerial implications of these findings are discussed as are suggestions for future research.     

The Potential for Nitrogen Abatement Trading in Agriculture: A Hypothetical Market Experiment

The effectiveness of nitrogen abatement trading as a policy measure relies on both heterogeneity in costs and environmental effectiveness across landscapes. Cost‐efficient implementation may therefore critically depend on spatial distributions of farm and farmer characteristics in water catchments. We use a spatially specific hypothetical market experiment to analyse the likelihood of farmers’ enrolment into nitrogen abatement trading contracts, and derive demand and supply functions for farmers’ nitrogen abatement. We find that farm characteristics influence both the decision whether to supply or purchase nitrogen abatement, as well as the amounts being traded. The derived demand and supply functions for farmers’ N abatement, using hypothetical market experiment data, can be used to reveal the variability in costs of abatement within a market. This provides valuable information to test potential trading schemes ex ante, to evaluate potential economic gains from policy implementation.     

Comparative performance of backpropagation networks designed by genetic algorithms and heuristics

The design of neural network models involves numerous complexities, including the determination of input vectors, choosing the number of hidden layers and their computational units, and specifying activation functions for the latter. The combinatoric possibilities are daunting, yet experience has yielded informal guidelines that can be useful. Alternatively, current research on genetic algorithms (GA) suggests that they might be of practical use as a formal method of determining ‘good’ architectures for neural networks. In this paper, we use a genetic algorithm to find effective architectures for backpropagation neural networks (BP). We compare the performance of heuristically designed BP networks with that of GA-designed BP networks. Our test domains are sets of problems having compensatory, conjunctive, and mixed-decision structures. The results of our experiment suggest that heuristic methods produce architectures that are simpler and yet perform comparatively well. © 1998 John Wiley & Sons, Ltd.     

Short and long translations: Management accounting calculations and innovation management

Management accounting calculations relate innovation to the firm through translations where both can change. Based on examples of the management of innovation from three firms the study shows how management accounting calculations rather than describe the properties of innovation add perspective to them mediating between innovation concerns and firm-wide concerns. This mediation happens through short and long translations. In short translations, management accounting calculations extend or reduce innovation activities via a single calculation. In long translations innovation activities are problematised via multiple calculations. When calculations challenge each other in long translations they problematise not only what innovation should be, but also where it should be located in time and space. In the three examples, calculations mobilised alternative propositions about the relevance of technical artefacts and linked this to innovation strategy and sourcing strategy in the firm’s inter-organisational relations. Tensions between calculations associated with technological, organisational and environmental entities framed considerations about the value of innovation to the firm strategically differently. All this happens because management accounting calculations are partial rather than total calculations of firms’ affairs and value.     

On the information role of stock recommendation revisions

We examine the information transmission role of stock recommendation revisions by sell-side security analysts. Revisions are associated with economically insignificant mean price reactions and often piggyback on recent news, events, long-term momentum, and short-run contrarian return predictors, typically downgrading after bad news and upgrading after good news. However, the revisions are usually information-free for investors. The findings go against the long-standing view that recommendations are an important means by which analysts assimilate information into stock prices. They disagree with the view of policymakers that analysts’ stock picks materially impact stock prices.     

Estimating the Income Elasticity of Demand for Housing: A Comparison of Traditional and Lorenz-Concentration Curve Methodologies

This paper provides a comparative analysis of traditional and Lorenz concentration curve (LC) approaches to estimating the income elasticity of demand for housing. Using data from the 1989 American Housing Survey, we compare LC results with those obtained from a traditional model in which tenure choice and housing demand are jointly determined, and which includes non-income determinants of demand. The comparison is intended to provide researchers with information concerning specific differences in empirical results obtained using the two approaches.