Equity‐based incentive contracts and behavior: Experimental evidence

Equity ‐ based incentive contracts provide managers with dual incentives, motivating both effort and fraud. We report the results from an experiment in which manager subjects make effort and fraud decisions that affect a firm's value. The main treatment variable is the incentive contract, which can be of either the simple equity or stock option type. We find that both effort and fraud are increasing in a manager's share of equity and decreasing in the strike price of an option. Interestingly, the stock option contract induces relatively more fraud than the simple equity contract, even though the two induce the same effort.     

Korean American Males’ Serious Leisure Experiences and Their Perceptions of Different Play Styles

This study examined Koreans Americans’ serious leisure experience with different racial groups. Interviews were conducted with 15 Korean male basketball and soccer players. A key finding was that participants recognized different styles of play between Korean Americans and other racial groups. While some participants cared little about other players’ race/ethnicity, other participants played exclusively with Korean Americans and preserved or promoted their ethnic identity. While Stebbins (1982) argues that serious leisure provides eight durable benefits, our findings suggest self-identification may be another durable benefit, at least among ethnic and/or racial minorities.     

The Implication of Bourdieu's Theory of Practice for Leisure Studies

The purpose of this article is to illustrate the effectiveness of Pierre Bourdieu's sociological theory and encourage more holistic use of his concepts of habitus, capital, field, and symbolic violence in leisure research. We briefly review the manner in which leisure researchers have utilized Bourdieu's work. Second, we apply Bourdieu's notions of habitus, capital, field, and symbolic violence to understand inequitable participation in hunting activities in American society. We conclude by offering recent issues in recreational hunting and recommendations for practitioners based on interpretations of Bourdieu's concepts.     

Disruptive innovation for social change

Countries, organizations, and individuals around the globe spend aggressively to solve social problems, but these efforts often fail to deliver. Misdirected investment is the primary reason for that failure. Most of the money earmarked for social initiatives goes to organizations that are structured to support specific groups of recipients, often with sophisticated solutions. Such organizations rarely reach the broader populations that could be served by simpler alternatives. There is, however, an effective way to get to those underserved populations. The authors call it "catalytic innovation." Based on Clayton Christensen's disruptive-innovation model, catalytic innovations challenge organizational incumbents by offering simpler, good-enough solutions aimed at underserved groups. Unlike disruptive innovations, though, catalytic innovations are focused on creating social change. Catalytic innovators are defined by five distinct qualities. First, they create social change through scaling and replication. Second, they meet a need that is either overserved (that is, the existing solution is more complex than necessary for many people) or not served at all. Third, the products and services they offer are simpler and cheaper than alternatives, but recipients view them as good enough. Fourth, they bring in resources in ways that initially seem unattractive to incumbents. And fifth, they are often ignored, put down, or even encouraged by existing organizations, which don't see the catalytic innovators' solutions as viable. As the authors show through examples in health care, education, and economic development, both nonprofit and for-profit groups are finding ways to create catalytic innovation that drives social change.     

A grounded theory of World Wide Web search behaviour

The behaviours and underlying motivations of consumers and business people surfing the World Wide Web (WWW) are presently not well understood. Furthermore, until now no empirical studies have offered any scientifically sound guidance to marketing communication strategists as to using this interactive medium. Therefore, the authors have conducted an exploratory multiple-case study of this interactive behaviour and its underlying motivations. Consumers and business people were observed unobtrusively while navigating the WWW. During a retrospective in-depth interview, the underlying motivations were probed and the respondent was confronted with video images of his/her own navigation behaviour. The analysis and interpretation of these two sources of data resulted in the development of a grounded theory of search and surf behaviour on the WWW by linking the behaviour and motivations with the visited websites. The following five behavioural search scenarios were discovered from the data: exploratory surfing, window surfing, evolved surfing, bounded navigation and targeted navigation. Marketing guidelines are outlined allowing the marketing communication strategist to enhance the effectiveness of the company's website.     

Creating Psychological and Legal Contracts Through HRM Practices: A Strength of Signals Perspective

We integrate the concept of signaling theory to propose that organizations create psychological and legal contracts through their human resource management practices (HRM). Focusing on the strength of the signal generated by HRM practices, we develop a framework for contract creation. Specifically, we define and outline how weak signals generate psychological contracts and strong signals develop legally binding contracts. We provide several examples of HRM hiring practices, the weak and strong signals which they emit and the psychological and legal contracts which they create. Our key contribution is to provide a precise model for understanding the distinction between a psychological and legal contract.     

Relative price volatility under Sudden Stops: The relevance of balance sheet effects

Sudden Stops are associated with increased volatility in relative prices. We introduce a model based on information acquisition to rationalize this increased volatility. An empirical analysis of the conditional variance of the wholesale price to consumer price ratio using panel ARCH techniques confirms the relevance of Sudden Stops and potential balance sheet effects as key determinants of relative price volatility, where balance sheet effects are captured by the interaction of a proxy for potential changes in the real exchange rate (linked to the degree of external leverage of the absorption of tradable goods) and a measure of domestic liability dollarization.     

INTEGRATING MARKETING AND R&D PROJECT PERSONNEL WITHIN INNOVATION PROJECTS: AN INFORMATION UNCERTAINTY MODEL*

Technological innovation within the firm can be modelled as a process of uncertainty reduction. The four major sources of uncertainty are user needs, technological environments, competitive environments, and organizational resources. Reducing these uncertainties is the responsibility of the marketing and R&D functions within the firm. Because these functions are reciprocally interdependent, their success in reducing uncertainty requires integration and collaboration between them. A contingency framework is developed which shows the effect and the determinants of interfunctional information transfer. It is argued that the synergistic results of integration can best be understood as a within-role increase of uncertainty reduction, and a between-role convergence of functional uncertainty reduction. The implications of the model are discussed.