Transnational regulation of professional services: Governance dynamics of field level organizational change

This paper examines the role of large accounting firms in the emergence of a transnational regulatory field in professional services. We use neo-institutional theory to illuminate the process by which new fields are created. We observe a shift in the structural boundaries of professional regulation to include new actors, specifically Big Four accounting firms and non-governmental organizations. We also observe a shift in regulatory logics in which historical efforts to separate professional practice from commercial interest are embraced rather than suppressed. New logics also include pressures to adopt new occupational identities. Finally we describe a shift in institutional power structures from coercive structures of domination to inclusive power structures of membership and identity.     

Chasing Phantoms in a Hollow Defense of Coase

Patrick Gunning refuses to acknowledge the most salient arguments against the Chicago law and economics case for negligence made by Austrian economists. Because of this, he makes the same errors in his defense of Coase that permeate the Chicago paradigm. In particular, his defense of Coasean type analysis completely ignores Austrian cost theory, i.e., that all economically relevant costs are strictly subjective and therefore conceptually impossible to measure. He also fails to grasp the implications of disequilibrium market process theory for the use of any kind of least-cost-avoider rule in the economic analysis of the law. As a result, Gunning's defense of Coase suffers from the same pretense of knowledge as the analysis that he is defending.     

Decision-making time in organizational buying behavior: An investigation of its antecedents

This study reports an empirical investigation focusing on the length of time firms take in making major purchase decisions (DMT) and examines antecedents such as buyclass, firm size, decision-making unit (DMU) size, information sources, and size of the consideration set. Data were provided by a national sample of organizations involved in the purchase of telecommunications systems. Findings suggest that firm size, buyclass, DMU size, information sources, and size of consideration set all significantly affect DMT. Antecedent relationships among the independent variables were also largely as expected. This study provides a starting point for a fertile area of research with important implications for organizational buyers and sellers as well as researchers. She holds a B.S. in Marketing and an MBA from the University of California at Berkeley and a Ph.D. in Marketing from Northwestern University. Her research interests are in the areas of technology diffusion and management as well as consumer behavior, advertising, and macromarketing. She has published in theJournal of Consumer Research, Public Opinion Quarterly, Journal of Business Research, Journal of Macromarketing, European Journal of Marketing, IEEE Transactions on Engineering Management, Telematics and Informatics, andJournal of Economic Psychology. She is a member of the Editorial Policy Board of the Journal of Macromarketing and President of the International Society for Marketing and Development. She received her Ph.D. from the University of Nebraska. Dr. Johnson’s research interests focus on interorganizational relationships in marketing contexts, such as distribution channels or business-to-business marketing with emphasis on cross-culture interorganizational marketing relationships. Dr. Johnson’s research has appeared in theJournal of Marketing, Journal of International Business Studies, Journal of Business Research, andCurrent Issues and Research in Advertising, among other journals and conference proceedings. She has also presented her work at a variety of domestic and international conferences. He received his Ph.D. from the University of Massachusetts at Amherst. His research interests are in the areas of pricing, consumer behavior, and marketing research. He is coauthor ofConsumer Behavior: Concepts and Applications, currently in its fourth edition, and his research has been published inDecision Sciences, Journal of Marketing Research, Journal of Business Research, Journal of the Academy of Marketing Science, Journal of Macromarketing, Journal of Retailing, Journalism Quarterly, and other leading journals and publications of professional societies. He holds degrees in engineering and management from India and a Ph.D. in marketing from Northwestern University. Dr. Dholakia’s research deals with technology, innovation, market processes, globalization, and consumer culture. Dr. Dholakia has published over 70 papers in professional journals and proceedings in management, marketing, and technology. Among his books areEssentials of New Product Management (coauthored, Prentice-Hall, 1987).     

A note on hispanic values and subcultural research: An alternative view

This paper is offered as a constructive comment on a previously published article. Using two separate approaches, the authors reexamine data presented by Valencia (1989), and suggest an alternative interpretation of the cultural value orientations among Hispanic and White ethnic groups. Theoretical and methodological discussion is provided in an attempt to show how utilization of different methodologies can derive different conclusions, and result in different marketing strategy recommendations.     

Do Hispanic immigrants spend less on medical care? Implications of the Hispanic health paradox

ABSTRACT

The literature of the Hispanic heath paradox has found that in the U.S. Hispanic immigrants have better health than U.S. natives, even though they tend to have lower socioeconomic status. The main objective of the current study is to investigate whether Hispanic immigrants also use less medical care goods and services. Main contributions of the article include using a data set of older Americans from the Health and Retirement Study covering the period from 1992 to 2012 as well as using three new measures of health, rather than the more common use of morbidity or mortality. We estimate the impact of relevant factors including health, race, and immigrant status upon five different measures of healthcare usage. Even though Hispanic immigrants do have lower mean levels of most measures of healthcare usage, when controlling for other factors in our regressions we find some evidence of increased healthcare usage for Hispanic immigrants. Increased health care utilization may be one explanation for the Hispanic health paradox.     

The effect of labor market monopsony on economic growth

In this endogenous growth model, a minimum efficient scale of production and workers’ home-to-work travel costs combine to give firms monopsony power, and this monopsony power leads to slower growth. Monopsony drives the wage below the marginal product of labor. This lower wage leads to lower investment in human capital and thereby to a lower growth rate. This makes investment in human capital – and therefore the growth rate – suboptimal. We provide evidence from a cross-country panel to support our model: Urbanization, which we assume is determined by a country’s exogenous population density and cropland area, positively impacts the wage share of output; the wage share positively impacts educational attainment; higher-income countries have higher wage shares; and within-country upticks in the wage share have a positive lagged effect on the growth rate.     

JOINT VENTURES, POLLUTION AND ENVIRONMENTAL POLICY

We examine the impact of emission taxes on the pollution level in a duopoly framework with endogenous market structure. We demonstrate that an increase in emission taxes could trigger a regime switch from joint ventures to Cournot competition, causing the pollution level to increase. Such a phenomenon is likely to happen when the concerned industry is reasonably profitable, and the synergistic gain between joint venture partners is not too strong. Moreover, emission taxes can implement the first best outcome if and only if the industry is not too polluting. In case it is, the second best level of taxes may or may not equal the optimal tax under either joint venture or Cournot competition.     

The impact of the bird flu on public willingness to pay for the protection of migratory birds

In this paper, we present the results of a unique time series analysis of contingent values and models for migratory bird protection based on an identical contingent valuation (CV) survey carried out over a three year time period since the first bird flu outbreak in 2003. Although there exists no scientific evidence for a direct relationship, migratory birds are believed to play an important role in spreading the bird flu virus worldwide. The time series analysis allows us to test the temporal stability of stated preferences for migratory bird protection and at the same time examine indirectly the possible impact of increased media attention and public awareness levels regarding the bird flu. We test the impact of the bird flu on public willingness to pay (WTP) for migratory bird protection in the final 2005 survey whilst accounting for procedural variance introduced by sequencing and question ordering-effects, but we are unable to demonstrate a direct negative relationship. A novelty of the study presented here is that respondents in the CV surveys are given the opportunity to pay an annual money amount or a one-time-off lump-sum. Annual WTP values appear to be significantly higher than one-time-off WTP values, suggesting a negative implicit discount rate. Self-selection bias is an important reason for the observed differences. We find that respondents who agree to pay annually differ significantly from respondents who wish to pay a lump-sum in terms of their underlying preferences and motivations towards migratory bird protection.     

Uncertainty avoidance and the rate of business ownership across 21 OECD countries, 1976–2004

Persistent differences in the level of business ownership across countries have attracted the attention of scientific as well as political debate. Cultural as well as economic influences are assumed to play a role. This paper deals with the influence of cultural attitudes towards uncertainty on the rate of business ownership across 21 OECD countries. First, the concepts of uncertainty and risk are elaborated, as well as their relevance for entrepreneurship. An occupational choice model is introduced to underpin our reasoning at the macro-level. Second, regression analysis using pooled macro data for 1976, 1990 and 2004 and controlling for several economic variables, yields evidence that uncertainty avoidance is positively correlated with the prevalence of business ownership. According to our model, a restrictive climate of large organizations in high uncertainty avoidance countries pushes individuals striving for autonomy towards self-employment. Regressions for these 3 years separately show that in 2004, this positive correlation is no longer found, indicating that a compensating pull of entrepreneurship in countries with low uncertainty avoidance may have gained momentum in recent years. Third, an interaction term between uncertainty avoidance and GDP per capita in the pooled panel regressions shows that the historical negative relationship between GDP per capita and the level of business ownership is substantially weaker for countries with lower uncertainty avoidance. This suggests that rising opportunity costs of self-employment play a less important role in this cultural environment, or are being compensated by increasing entrepreneurial opportunities.

Rethinking value in health innovation: from mystifications towards prescriptions

Debates over value in health innovation in the U.S. and Europe have become increasingly dominated by “value-based pricing”. We examine this prevailing narrative and its weaknesses and then present an alternative framework for rethinking value in health. Drawing on scholarship from the political economy of innovation, we argue that value in health must be considered in terms of both value creation as a collective process amongst public and private actors, as well as value extraction that occurs due to financialization. In building this alternative framework, we pose three questions that present areas for further research and public policy change.