Resource-based and institution-based approaches to biotechnology industry development in Malaysia

In this study, we use both resource-based and institution-based theories to examine potential sources of competitive advantage in the relatively new and rapidly growing biotechnology sector. We then use those theories as the basis for a multimethod study to assess the priorities, capabilities, and competitiveness of the emerging biotechnology industry in Malaysia. Multifunctional experts from a biotechnology industry organization in Malaysia identified the use of biotechnology for agriculture and biofuels as key country priorities, with access to funding and talent cited as key capabilities required for successful sector development. The gap between capabilities required and strategic priorities provides a “to do” list for industry development, with government institutions playing a central role in accelerating technology development and providing the capital flows necessary to bridge this gap. Implications include the need for public–private sector collaboration to enable biotech firms to efficiently obtain international investment and alliances to ensure sustainability, as well as to develop bold and creative approaches for developing and recruiting talent both at home and abroad.     

Information Effects on Consumers' Preferences and Willingness to Pay for a Functional Food Product: The Case of Red Ginseng Concentrate*

This paper elicits consumers' preferences associated with attributes of a very popular food product in Asia: red ginseng concentrate. The results of a choice experiment suggest that an asymmetric information problem can cause consumers' preferences and valuation for red ginseng concentrate to be significantly influenced by objective information about the product's attributes. The results imply that while objective information can result in differential changes in valuation for different product attributes, it can increase consumers' willingness to pay for red ginseng concentrate. The paper also discuss important policy and marketing implications from the results of the study.     

Multigeneration diffusion model for economic assessment of new technology

In the era of 21st century, development of emerging information technology is the essence of the advancement. This kind of new technology, however, often requires a great deal of amount of initial investment for both procedures of R&D and commercialization. As cost invested in developing the specified technology is increasing, investors are paying more attention to cost to benefit analysis (CBA). One of the basic elements of CBA for new technological development is the diffusion pattern of demand of such technology. Typically, it would be hard to presume the diffusion pattern of demand when the new product or the technology is under development. In this case, a simulation study is necessary. Many studies of technology evaluation have adopted a single generation model to simulate the diffusion pattern of demand. This approach, however, considers the diffusion of the new technology itself, not taking into account newer generation, which can replace the one just invented. In the real market situation, one must consider the competition and substitution phenomena between old and new technologies. In this paper, we show how multigeneration technology diffusion model can be applied for more accurate CBA for information technology. Additionally, Monte Carlo simulation is performed to find influential factors on the CBA of a cybernetic building system (CBS).     

Corporate governance and the sensitivity of investments to cash flows

We find very strong and consistent evidence that investments in Strong‐Governance firms (managers not entrenched) are strongly sensitive to availability of internal cash flows while such sensitivity is not different from zero for Weak‐Governance firms (entrenched management). We interpret this as evidence in support of Kaplan and Zingales' (1997) contention that sensitivity of investments to cash flows is not an adequate measure of financing constraints. More importantly, our findings are consistent with Kaplan and Zingales’ conjecture that the observed sensitivity of investments to cash flows in firms that do not face financing constraints may be driven by excessive risk aversion of managers.     

Market Power of Domestic Marketers and its Influence on the Consequences of the Korea–US and Korea–Australia FTAs on the Beef Market

Domestic, US and Australian beef, which are differentiated by country of origin, are sold in Korea. In this differentiated product market, tariff reductions through Free Trade Agreements (FTAs) are expected to strengthen the competitiveness of imported beef and, therefore, to mitigate the effects arising from the market power of domestic marketers. The present study develops a simulation model that evaluates this mitigating effect by explicitly reflecting the market structure that domestic beef marketers constitute. The simulation results indicate that the farm-retail marketing margin would decrease by 10.59% or 6.79% due to the Korea–US and Korea–Australia FTAs, respectively, if domestic beef marketers formed a cartel or an oligopoly market (i.e. the degree of market power is 0.5), while the marketing margin under a competitive market scenario is simulated to have no change. The value of beef production would decrease by 1009 million dollars if the marketers form a cartel and hence exercise monopoly power. The FTAs are simulated to reduce the value of beef production by 564 million dollars under the competitive market scenario.     

Informed trading in the index option market: The case of KOSPI 200 options

This study examines if informed trading is present in the index option market by analyzing the KOSPI 200 options, the most actively traded derivative product in the world. The spread decomposition model developed by Madhavan, Richardson, and Roomans (1997) is utilized and the adverse‐selection cost component of the spread estimated by the model is then used as a proxy for the degree of informed trading. We find that adverse‐selection costs constitute a nontrivial portion of the transaction costs in index options trading. Approximately one‐third of the spread can be accounted for by information asymmetry costs. A further analysis indicates that adverse‐selection costs are positively related with option delta. Our regression analysis shows that option‐related variables are significantly associated with estimated information asymmetry costs, even when controlling for proxies for informed trading in the index futures market. Finally, we find the evidence that foreign investors are better informed compared to domestic investors and that domestic institutions have an edge in terms of information over domestic individuals. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:1118–1146, 2008     

The adoption of sustainable laundry technologies by US consumers

The adoption of sustainable laundry technologies by US consumers has lagged behind that of other countries and even behind the projections for adoption made by the US government. Most US household currently own and use the top‐loading vertical axis (v‐axis) agitator type washers, which use large amounts of water as well as additional energy to heat the water. More sustainable laundry practices include the use of energy‐ and water‐efficient front‐loading horizontal‐axis (h‐axis) washers. These washers have been demonstrated to use 38% less water and 58% less energy than the standard top‐loading v‐axis models. The adoption of more energy‐efficient washing technologies is of interest to many, including policy makers, because of their water‐ and energy‐saving potential. Little is known about the attributes and issues consumers use in their decision to adopt high‐efficiency washers for their home. This study uses Roger's Diffusion of Innovations Theory to understand the adoption of h‐axis washers by US consumers. An online survey of 330 consumers who own washing machines found that 23% currently own h‐axis washers and 24% of consumers intend to purchase an h‐axis when they replace their top‐loading vertical (v‐axis) washers. Energy and water savings are the most frequently cited reasons overall for adopting the h‐axis washer and cost was the main reason for not adopting the technology. Other issues, such as dissatisfaction with cleaning power and problems with machine cleanliness and maintenance, did not play a major role in adoption. Specific marketing and education channels, where US consumers are looking for information about h‐axis washers, are also identified. Overall, the results suggest that the rate of h‐axis adoption in the US is accelerating, but that many of the benefits of the technology are not easily observed by non‐owners.     

Corporate social responsibility signaling,evaluation, identification,and revisit intention among cruise customers

Abstract

Improvements in customer knowledge and interest in cruise tourism have facilitated the growth of the cruise industry. However, the cruise industry has limited research attention from tourism and hospitality scholars. Furthermore, in the cruise setting, although a large number of corporate social responsibility (CSR) messages are sent to customers, it seems reasonable to suspect that not all CSR activities are effective to achieve the sustainable growth of the company. Therefore, this study aims to expand the existing knowledge of cruise CSR by examining the impact of customers’ perceived value of socially responsible consumption behavior on brand-related outcomes. Data from 292 cruise customers in the United States are collected through online surveys. Findings support the evidence that CSR signaling influences customers’ positive evaluation and identification with a cruise brand, but no direct impact on their behavioral intention is observed. Also, the mediating role of evaluation and identification in the relationship between CSR signaling and revisit intention is examined. In this study, the signaling and social identity theories are supported by an empirical study to addresses the importance of customers’ socially responsible consumption trait in sustainable growth.     

A Note on Testing the Nested Structure in Multivariate Regression Models

In this article we propose a simple method of identifying, at an earlier stage of analysis, the nested structure among the coefficient matrices in multivariate regression models. When the limiting distribution of the estimators of the coefficient matrices are jointly normal, the Wald type statistics based on the proposed method is asymptotically a chi-squared random variable. A numerical example that arises in cointegration analysis is provided to illustrate the method and a small simulation study is provided to illustrate its effectiveness.