Bank regulation under nonbinding capital guidelines

A one-period model of bank equity is presented in which the end of the period can be interpreted as the next regulatory examination. A capital guideline is in place that may or may not be met as the values of the bank's assets and liabilities fluctuate during the period. If the guideline is not met at the time of examination, however, equityholders bear some cost. The bank's risk-taking incentives between examinations are studied. The model suggests that higher capital guidelines may cause riskier bank behavior at some points in time, but do not imply a trend toward a riskier banking system.     

Game theory and open source contribution: Rationale behind corporate participation in open source software development

The rising participation of for-profit corporations in the development of open source software raises the question of why corporations are motivated toward this engagement. The increased participation is an observable phenomenon; many researchers and practitioners assume that the practice of community sharing does not improve the bottom line, but rather believe the practice is altruistic in nature. Our intuition is that participation offers tangible and intangible benefits to corporate participants. We show this by exploring a variety of models in game theory and use game theory as a methodological lens to explain the rationality of corporate participation in open source software development. Since game theory has evolved to include rational- and emotional-based reasons, we explore such lenses as cooperative games, metagames, coopetition, and Drama Theory. Our research question, “Why do for-profit corporations participate in the development of open source software?” was broad enough to adopt several useful perspectives to understand our data. One useful lens was game theory. In this article, we examine interview responses and field study data from corporate members of open source communities to determine how they justify devoting time and effort to community engagement. Our study makes a contribution to open source software literature by revealing that numerous rational and emotional reasons exist for corporate participation in open source software development.     

A taxonomy of business-level strategies in global industries

This study presents a taxonomy of business-level strategies in global industries. Empirical data suggest there are four broad strategies: domestic product niche, exporting high quality offerings, international product innovation, and quasi-global combination. A discussion of the characteristics and performance differentials of each strategy type is provided as well.     

Toward a contingent resource‐based theory: the impact of information asymmetry on the value of capabilities in veterinary medicine

The paper investigates the contingencies which define valuable resources in professional medical services. We identify activities with credence, experience, and search qualities in medical service industries in general, and in veterinary practices more specifically. We propose that different capabilities are needed to deliver different services and test whether the contingent combination of capabilities for particular services is linked to the performance of veterinary practices. For example, we expect that practice capabilities which help to retain clients are necessary for the successful delivery of services with experience qualities. We find evidence of performance benefits of client retention in a sample of 193 veterinary practices. We also find that in markets where competition from a new form of entrant is especially intense, an independent veterinarian’s credence activities combine with its experience and search activities to jointly improve practice profitability. Since the new entrants’ resources are mainly effective in the delivery of services with search qualities, the practice capabilities of the independent veterinarians that allow them to offer services with credence and experience qualities can be seen as a type of isolating mechanism. Copyright © 1999 John Wiley & Sons, Ltd.     

Seek or destroy? Examining value creation and destruction in behaviour maintenance in social marketing

This article presents an empirical investigation of how behaviour maintenance is supported or hindered through value creation and destruction in social marketing. Using a longitudinal, netnographic approach, we identify and examine the key facilitators and barriers encountered during the maintenance of physical and mental health behaviours. Data were collected over a 12-week observation period via Twitter from a sample of 242 participants. A total of 5212 tweets were analysed using content and thematic analysis facilitated by NVivo software program. The findings identify key barriers to and facilitators of behaviour maintenance at the individual level (downstream), meso level (midstream), and policy level (upstream) that have an influence on value creation and destruction in social marketing. These findings demonstrate the importance of employing a strategic and integrated approach to social change management.     

The Implications of Diverse Human Moral Foundations for Assessing the Ethicality of Artificial Intelligence

Journal of Business Ethics - Organizations are making massive investments in artificial intelligence (AI), and recent demonstrations and achievements highlight the immense potential for AI to...