Tourism and the Precautionary Principle

The precautionary principle is an emerging norm of international environmental policy affirmed in many treaties and laws. The principle, congruent to the ideal of sustainable development, is a controversial future-focused planning and regulatory mechanism which mandates that to protect against threats of serious and irreversible damage, precaution should be exercised even before harm can be scientifically demonstrated. The intent of this paper is to provide a literature review of the precautionary principle, examine the fundamental concepts underlying the principle and present an introductory discussion regarding its applicability to the tourism industry. Time and again numerous direct and indirect impacts are produced by the tourism industry, yet the potential for integrating precaution into tourism planning has not been examined. The authors consider the critical elements of the principle (uncertainty, risk, costbenefit analysis and science) in relation to the tourism industry, and provide examples of reference to the principle in the policy documents of non-governmental tourism organisations. An adapted framework is proposed for incorporating the precautionary principle into better tourism-industry decision-making. The precautionary principle is predicated as a viable tourism development tool and planning mechanism that safeguards environmental and human health by anticipating and controlling for future impacts of tourism.     

Intrinsic inflation persistence

Empirical evidence suggests that inflation determination is not purely forward-looking, but models of price setting have struggled to rationalize this finding without directly assuming backward-looking pricing rules for firms. This paper shows that intrinsic inflation persistence can be explained with no deviation from optimizing, forward-looking behaviour if prices that have remained fixed for longer are more likely to be changed than those set recently. A relationship between the probability of price adjustment and the duration of a price spell is shown to imply a simple “hybrid” Phillips curve including lagged and expected inflation, which is estimated using macroeconomic data.     

Using the social system of a supply chain to improve a focal organization’s operating performance

In this paper, we explore how a large organization, operating in a mature, asset-intensive industry, used the social system of a key supply chain to generate significant improvement in operating performance (e.g., inventory turnover ratio improved from 0.8 to 3.2 in 5?years). A case study approach was used to study a steel rail supply chain involving an Australian railway company as the focal company. This supply chain consisted of two other companies: a steel manufacturer and a bulk transporter. Multiple forms of data were collected and analyzed, including models and process maps of the supply chain, published and internal documents, Enterprise Resource Planning system reports, and in-depth interviews of 31 key personnel involved in the supply chain. We found that the organizations had invested heavily in formal systems, such as governance processes and information technology systems. However, it was the informal mechanisms across and within the social system which made the greatest contribution to the resulting improvements. This suggests that organizations may be able to achieve significant operating performance outcomes at far lower cost and in shorter time frames by working through the existing social systems instead of focusing excessively on formal governance and IT systems.     

NPD speed vs. innovativeness: The contingent impact of institutional and market environments

Whereas new product development (NPD) speed and product innovativeness are two critical strategic determinants of firm performance, previous studies show inconclusive findings about their effects. Drawing on institutional and contingency perspectives, this study elucidates value appropriation issues in NPD and examines how the effects of NPD speed and technological radicalness are contingent on institutional frameworks and market conditions. Results from 244 high-tech companies in China show that dysfunctional competition enhances the effect of NPD speed, but legal inadequacy hinders the impact of technological radicalness on firm performance. Market growth strengthens the performance effect of NPD speed but restrains the effect of technological radicalness. In addition, technological radicalness demonstrates stronger effects on firm performance when demand uncertainty is high.     

Brand Equity Management in a Multichannel,Multimedia Retail Environment

Today's multichannel, multimedia retail marketing environment presents a number of brand management challenges. From a micro perspective, marketers must manage each individual channel and communication option to maximize their direct sales and brand equity effects, as well as any indirect brand equity effects from being associated with a particular channel or communication option. From a macro perspective, marketers must design and implement channel and communication options such that sales and brand equity effects are synergistic. Concepts, frameworks, and future research directions are put forth to address these different challenges.     

Time-varying U.S. inflation dynamics and the New Keynesian Phillips curve

This paper introduces a form of boundedly-rational inflation expectations in the New Keynesian Phillips curve. The representative agent is assumed to behave as an econometrician, employing a time series model for inflation that allows for both permanent and temporary shocks. The near-unity coefficient on expected inflation in the Phillips curve causes the agent's perception of a unit root in inflation to become close to self-fulfilling. In a “consistent expectations equilibrium,” the value of the Kalman gain parameter in the agent's forecast rule is pinned down using the observed autocorrelation of inflation changes. The forecast errors observed by the agent are close to white noise, making it difficult for the agent to detect a misspecification of the forecast rule. I show that this simple model of inflation expectations can generate time-varying persistence and volatility that is broadly similar to that observed in long-run U.S. data. Model-based values for expected inflation track well with movements in survey-based measures of U.S. expected inflation. In numerical simulations, the model can generate pronounced low-frequency swings in the level of inflation that are driven solely by expectational feedback, not by changes in monetary policy.     

The relationship between job satisfaction and managerial remuneration in small and medium-sized enterprises: an empirical test of ‘comparison income’ and ‘equity theory’ hypotheses

The relationship between job satisfaction levels and the remuneration of non-owner managers employed by a sample of 97 UK small and medium sized enterprises (SMEs) is investigated. The main empirical findings are that relative remuneration levels appear to be largely explained by differences in human capital and job/firm characteristics and that job satisfaction is positively related to deviations from these estimated comparison-income levels. Moreover, the equity theory expectation that individuals with the least prospect of redressing payment inequities will have the greatest incentives to respond to payment inequities by congitive adjustment is also supported. The results indicate that job satisfaction levels for individuals expecting to remain in their current post are not significantly affected by current payment inequities. For those managers who expect to move firms, the amount of payment inequity has a significantly positive effect upon their job satisfaction.     

Impeding insurgent attacks: The information management agenda

Recent confrontations in Iraq between coalition forces and insurgents have caused much havoc in the way of economic and political reforms. Insurgents use a wide range of tactics, from suicide bombings to kidnappings, to cause tension between the local factions and the Iraqi populace, and between the locals and the coalition forces. The strength of the insurgent strategy emerges from the nature of their attacks: highly erratic, yet potent. All-out-assault on these insurgents is impossible as they cloak themselves and exploit the advantages of guerrilla warfare tactics. In this paper, we will highlight the informational issues that the coalition forces must appreciate in order to curb and curtail these insurgent attacks. While we do not aim to propose any grand strategy to eradicate all insurgent attacks, we do believe that the true weapon that needs to used optimally (effectively and efficiently) against such attacks is information. Whether the insurgents or the coalition forces, the side that is more successful at managing and deploying information potently and with intent will ultimately prevail.     

When punishment fails: Research on sanctions, intentions and non-cooperation

People can become less cooperative when threatened with sanctions, and previous research suggests both “intentions” and incentives underlie this effect. We report data from an experiment aimed at determining the relative importance of intentions and incentives in producing non-cooperative behavior. Participants play a one-shot investment experiment in pairs. Investors send an amount to trustees, request a return on this investment and, in some treatments, can threaten sanctions to enforce their requests. Decisions by trustees facing threats imposed (or not) by investors are compared to decisions by trustees facing threats imposed (or not) by nature. When not threatened, trustees typically decide to return a positive amount less than the investor requested. When threatened this decision becomes least common. If the request is large relative to the sanction then most trustees return nothing. If the request is small, trustees typically return the requested amount. These results do not vary with investors' intentions.