Stock of downstream complementary assets as a catalyst for product innovation during technological change in the U.S. machine tool industry

Research summary : We investigate the effect of incumbents' stock of downstream complementary assets on their product innovation during a disruptive technological change. We theorize that a firm's stock of downstream complementary assets, by providing critical information about shifting demand conditions, will play a catalytic role in firm adaptation during such a change. Using the advent of disruptive computer numerical control machine tools in the U.S. machine tool industry during the 1970s and 1980s as the context, we find that firms with greater stocks of downstream complementary assets are likely to be product innovation leaders during such a change. Managerial summary : Disruptive changes are challenging firms across industries. We concentrate on the U.S. machine tool industry during the 1970s and 1980s when Japanese manufacturers with disruptive computer numerical control systems challenged the U.S. manufacturers. We find that, under the threat of disruption, the greater the stock of downstream complementary assets a U.S. machine tool manufacturer has, the more likely it is to be the product innovation leader with the disruptive technology. Our findings provide novel insights for managers in companies that face disruptive changes and can help them avoid the consequences of such changes as predicted by prior research. Copyright © 2016 John Wiley & Sons, Ltd.     

Visitors’ learning for environmental sustainability: Testing short- and long-term impacts of wildlife tourism experiences using structural equation modelling

Wildlife tourism experiences have the potential to positively impact tourists’ awareness, appreciation and actions in relation to the specific wildlife they encounter and the environment in general. This paper investigates the extent of such impact across multiple sites, and uses Structural Equation Modelling to identify factors that best predict positive long-term learning and environmental behaviour change outcomes. Three sets of variables were measured – visitors’ entering attributes (including pre-visit environmental orientation and motivation for the visit), salient aspects of the experience, and short- and long-term learning and environmental behaviour change outcomes. Although attributes such as pre-visit commitment and motivation to learn were among the best predictors of the long-term impact of the experience, there was evidence that aspects of the experience were also important. In particular, reflective engagement which involved cognitive and affective processing of the experience was found to be associated with short- and long-term environmental learning outcomes. The implications for wildlife tourism managers are discussed.     

Identifying the Effects of WIC on Food Insecurity Among Infants and Children

The Women, Infants, and Children (WIC) Program is considered a crucial component of the social safety net in the United States, yet there is limited supporting evidence on the effects of WIC on the nutritional well‐being and food security of infants and young children. Using data from the National Health and Nutrition Examination Survey, we apply recently developed partial identification methods to jointly account for unobserved counterfactual outcomes and systematic underreporting of WIC participation. Under nonparametric assumptions, we find that WIC reduces the prevalence of child food insecurity by at least 3.6 percentage points (20%).     

Leadership,Creative Problem‐Solving Capacity,and Creative Performance: The Importance of Knowledge Sharing

This article presents two studies that examine whether leader supportive behaviors facilitate knowledge sharing and employee creative problem‐solving capacity, thereby enhancing creative performance. The findings from both studies indicate that leader supportive behaviors are directly and indirectly related, through both internal and external knowledge sharing, to employee creative problem‐solving capacity. In addition, creative problem solving was related to the two dimensions of creative performance—fluency and originality. However, a test of the mediation model indicated that creative problem solving only mediated the relationship between internal knowledge sharing creative performance and originality. These findings highlight the complex process by which leaders facilitate both internal and external knowledge sharing and employee creative problem‐solving capacity, thereby improving employee creative performance.     

Dynamics of judicial service supply chains

Behavioral issues, coupled with temporary capacity imbalances, dictate the characteristics that a service supply chain assumes in the long run. The paper looks at a service chain in which two factors, backlogs and incentives, influence human agent processing times and, hence, service supply chain capacity. The paper finds that servers within the supply chain change their processing speeds in order to maintain a backlog of cases that is acceptable and credible. The backlog must not be too small, so as to avoid the impression that work is scant and there is idleness; but it must not be too large, so as to avoid the impression of laziness. Simultaneously, the paper finds that there are implicit incentives in the formal hierarchy that impinge upon throughput rates at certain stages of the supply chain: agents upstream try not to overwhelm their bosses' stations downstream with excess work. Hence, this paper looks at the effects of perceived backlogs within service supply chains and also at capacity unbalances that stem from such incentives. The study explores these issues in the context of a managerial intervention in a judicial service supply chain. The study identifies the structure of a seemingly unstructured decision execution that leads to the observed outcomes. The research results in a preliminary system dynamics model that suggests several operational steps to overcome bottlenecks and incompetency.     

Predicting Corporate Bankruptcy: An Evaluation of Alternative Statistical Frameworks

Corporate bankruptcy prediction has attracted significant research attention from business academics, regulators and financial economists over the past five decades. However, much of this literature has relied on quite simplistic classifiers such as logistic regression and linear discriminant analysis (LDA). Based on a large sample of US corporate bankruptcies, we examine the predictive performance of 16 classifiers, ranging from the most restrictive classifiers (such as logit, probit and linear discriminant analysis) to more advanced techniques such as neural networks, support vector machines (SVMs) and “new age” statistical learning models including generalised boosting, AdaBoost and random forests. Consistent with the findings of Jones et al. ( 2015 ), we show that quite simple classifiers such as logit and LDA perform reasonably well in bankruptcy prediction. However, we recommend the use of “new age” classifiers in corporate bankruptcy modelling because: (1) they predict significantly better than all other classifiers on both the cross‐sectional and longitudinal test samples; (2) the models may have considerable practical appeal because they are relatively easy to estimate and implement (for instance, they require minimal researcher intervention for data preparation, variable selection and model architecture specification); and (3) while the underlying model structures can be very complex, we demonstrate that “new age” classifiers have a reasonably good level of interpretability through such metrics as relative variable importances (RVIs).     

Nontraded Goods and Real Exchange Rates in a Multi‐Good Ricardian Model

The two‐country Ricardian trade model with discrete goods and uniform transport costs for tradable goods is applied to the decomposition of the real exchange rate into traded and nontraded components. The real exchange rate is driven almost entirely by changes in the productivity differentials in nontraded goods and also explains the Balassa–Samuelson effect of a lower cost of living in poor countries, but extraordinary transport costs for some nontraded goods are necessary to easily explain the Balassa–Samuelson effect.     

Media,Education and Corruption: Investigating the Associations

We study the interactive association of press freedom, access to media and education with a nation's corruption levels. A free press generates unbiased information that greater access to the media helps propagate; and a greater degree of education, in the same context, helps individuals apply that information. This entire process generates a vigilant and corruption‐free economy. It is therefore important to consider these factors in conjunction.     

Thailand as a tourist destination: Perceptions of international visitors and Thai residents

In the tourism industry, the perceptions of a tourist destination are critical to its image. Image can be either a mental image of a product created by a marketing department or an associative image of a product that is developed by the consumer. Tourism destinations must be careful about their image so the perception that they have is not different from the way that they are perceived by potential travelers. This study examines the perceptions of international visitors and Thai residents on the image of Thailand as a tourist destination. International visitors and Thai residents were both surveyed to determine their perceptions of the image of Thailand. Some results of the study found that Thai residents and international visitors felt cultural sightseeing, friendly people and food were significantly important when thinking of Thailand as a tourist destination, while international visitors felt that nightlife and entertainment were significantly more important than that of Thai residents.