Offshoring and backshoring: A multiple case study analysis

Motivations underscoring offshoring and backshoring are typically investigated as separate entities in the academic literature. This separation undermines a deeper comprehension of the two phenomena, and implicitly denies the conceptualization of backshoring as a possible step of the firm internationalization process. Our paper seeks to fill this gap by (1) understanding the relations (if any) among offshoring and backshoring motivations at firm level; (2) exploring whether backshoring is a “failure” of the offshoring initiative, or rather the evolution of the firm's competitive and location strategies. A content-based literature review provides the base for the identification of the key motives for offshoring and backshoring, which are then organised using a theory-grounded framework. Next, we conduct a multiple case study analysis based on four companies, searching for common patterns in offshoring and subsequent backshoring initiatives. Cases allow understanding how the motivations (Why) connect with the governance modes (How), and the location choice (Where). Building on the case findings, the paper presents some propositions for future empirical research.     

Endogenous debt maturity and rollover risk

We empirically study the nature of rollover risk and show how banks manage it. Having to roll over debt does not lead to higher default risk per se. Only banks that lose significant access to new funding while having to roll over debt display higher default risk. We identify a factor that determines this buildup of risk: specifically, debt maturity shortening (forcing debt to be more frequently rolled over) and reduced access to new funding are both driven by market pessimism about banks’ future performance. We also provide evidence consistent with dynamic coordination risk.     

Gaussian models for Euro high grade government yields

This paper tests affine, quadratic and Black-type Gaussian models on Euro area triple A Government bond yields for maturities up to 30 years. Quadratic Gaussian models beat affine Gaussian models both in-sample and out-of-sample. A Black-type model best fits the shortest maturities and the extremely low yields since 2013, but worst fits the longest maturities. Even for quadratic models we can infer the latent factors from some yields observed without errors, which makes quasi-maximum likelihood (QML) estimation feasible. New specifications of quadratic models fit the longest maturities better than does the ‘classic’ specification of Ahn et al. [2002. ‘Quadratic Term Structure Models: Theory and Evidence.’ The Review of Financial Studies 15 (1): 243–288], but the opposite is true for the shortest maturities. These new specifications are more suitable to QML estimation. Overall quadratic models seem preferable to affine Gaussian models, because of superior empirical performance, and to Black-type models, because of superior tractability. This paper also proposes the vertical method of lines (MOL) to solve numerically partial differential equations (PDEs) for pricing bonds under multiple non-independent stochastic factors. ‘Splitting’ the PDE drastically reduces computations. Vertical MOL can be considerably faster and more accurate than finite difference methods.     

Dynamic factor model with infinite‐dimensional factor space: Forecasting

The paper compares the pseudo real‐time forecasting performance of three dynamic factor models: (i) the standard principal component model introduced by Stock and Watson in 2002; (ii) the model based on generalized principal components, introduced by Forni, Hallin, Lippi, and Reichlin in 2005; (iii) the model recently proposed by Forni, Hallin, Lippi, and Zaffaroni in 2015. We employ a large monthly dataset of macroeconomic and financial time series for the US economy, which includes the Great Moderation, the Great Recession and the subsequent recovery (an update of the so‐called Stock and Watson dataset). Using a rolling window for estimation and prediction, we find that model (iii) significantly outperforms models (i) and (ii) in the Great Moderation period for both industrial production and inflation, and that model (iii) is also the best method for inflation over the full sample. However, model (iii) is outperformed by models (ii) and (i) over the full sample for industrial production.     

Seasoned equity offering announcements and the returns on European bank stocks and bonds

We analyse, by means of appropriate event studies, the returns following seasoned equity offering announcements made by western European banks between 2008 and 2014. Consistently with the pertinent literature on non-financial companies, we find that shareholders experience negative returns. We highlight that the same occurs for bondholders, although not surprisingly to a smaller extent. Overall, our results show that seasoned equity offering announcements play an important signalling role also in the banking industry, despite the tight regulation and supervision by banking authorities, which should in principle reduce the impact on pricing of the information asymmetries about banks’ financial conditions.     

Experience as a catalyst of export destinations: The ambidextrous connection between international experience and past entrepreneurial experience

This paper examines how different forms of accumulated exploitable knowledge—i.e., export experience with the current firm and past entrepreneurial experience—stimulate export destinations, defined as the number of foreign markets where businesses sell their products/services. The proposed hypotheses are tested on a unique sample of Costa Rican entrepreneurial businesses for 2017. Results from the sequential deductive triangulation analysis (QUAN → qual) reveal that the ambidextrous connection between export experience with the current firm and past entrepreneurial experience is an essential prerequisite for explaining export destination figures. Also, the positive effect of export experience with the current business on export destinations is more prevalent among firms created by serial entrepreneurs. These findings corroborate our argument line on the importance of generative-based learning processes. Furthermore, the results of the qualitative analysis suggest that task-specific international experience and experience gained through past business venturing are relevant micro-foundations of international business expansion in the context of the export destinations of entrepreneurial firms.     

Sorry,could you repeat the question? Exploring video‐interview recruitment practice in HRM

HRM has embraced video interviewing through verbal computer‐mediated communication (VCMC) technology. However, empirical research in recruitment remains scant. Drawing on communication theories to analyse data from three studies, we present a conceptual framework explaining VCMC adoption and practice. We argue that VCMC technology has a larger effect on recruitment and selection outcomes than presumed. We broaden signalling theory to video recruitment and posit that interaction effects due to characteristics of the technology and a candidate's personality may affect recruitment outcomes. We also broaden media richness theory by uncovering memory effects arising from multiple interview modes. HR managers should be mindful of these and others limitations highlighted in the study before fully embracing this technology.     

Are green consumers really green? Exploring the factors behind the actual consumption of organic food products

The increasing interest in sustainable consumption has lead several scholars to investigate the determinants that drive the consumption of organic food. Most of this research is based on consumers' self‐reports of their purchasing behavior by exploring declared behavioral intentions. There is a lack of understanding concerning the determinants of organic food consumption based on actual purchasing behavior. To fill this gap, this study is based on a combination of actual purchasing data and self‐reported data from a sample of 79 Italian consumers. The determinants of organic food consumption are explored by analyzing the effects of subjective norms, attitude, perceived behavioral control, intention to buy, organic knowledge, and health consciousness on actual purchasing behavior. Our results suggest that actual purchasing behavior is positively influenced by intention to buy and negatively by subjective norms. Although attitude towards buying organics is positively affected by health consciousness and perceived behavioral control, consumer knowledge about organics is found to influence purchase intentions. Theoretical and managerial implications, along with avenues for future research, are discussed.     

A consumption-based approach to environmental Kuznets curves using the ecological footprint indicator

Recent research suggests that consumption-based measures offer an insightful perspective on the debate on the relationship between economic growth and the environment. In this article we deepen the consumption-based line of inquiry by investigating the empirical evidence in support of the environmental Kuznets hypothesis using 2001 ecological footprint data for 141 countries. We perform Ordinary Least Squares and Weighted Least Squares analysis on linear, quadratic and cubic functions, in standard and logarithmic specifications, as candidate models to represent the relationship between per capita income and environmental pressure. We replicate the cross country analysis also by estimating the regression function directly, through a nonparametric regression. In our analyses, with and without weighing data by population, the results do not show evidence of de-linking.