Lock in and switch: Asymmetric information and new product diffusion

Many new web-based services are introduced as free services. Depending on the seller??s business model, some remain free in the long run, while others switch to pay mode at some point in time. I characterize the relation between buyers and a new service seller when the former are uncertain about the latter??s business model and need to incur a one-time sunk cost before enjoying the new service. I derive a natural signaling equilibrium where the seller plays a ??lock-in-and-switch?? strategy, while buyers play a ??wait-and-see?? strategy. Specifically, a high-cost seller starts by pricing at zero and waits for a sufficient number of consumers to adopt the new service, at which point the seller switches to pay mode. In this gradual separation equilibrium, the signal is given not by the price level (which always starts at zero) but rather by the duration of the introductory offer. Finally, I show the equilibrium entails diffusion even though consumers are identical and equally aware of the new service??s existence.     

Organizational Citizenship Behaviour for the Environment: Measurement and Validation

While the importance of employee initiatives for improving the environmental practices and performance of organizations has been clearly established in the literature, the precise nature of these initiatives has rarely been examined (particularly the issue of their discretionary or mandatory nature). The role of organizational citizenship behaviour in environmental management remains largely unexplored. The main objectives of this paper were to propose and validate an instrument for measuring organizational citizenship behaviour for the environment (OCBE). Exploratory (Study 1, N?=?228) and confirmatory (Study 2, N?=?651) analyses were conducted to examine the factor structure of OCBEs. The factor structure that emerged from Study 1 indicated that the three main types of OCBEs were eco-initiatives, eco-civic engagement and eco-helping. The factor structure found in Study 1 was confirmed by Study 2. Analysis of the three types of OCBEs highlighted the complexity of discretionary initiatives for the environment in the workplace and points to a number of avenues for further research.     

Corporate Social Responsibility as a Vehicle to Reveal the Corporate Identity: A Study Focused on the Websites of Spanish Financial Entities

This study explores the relevance of corporate social responsibility (CSR) as an element of the corporate identity of Spanish financial institutions. Specifically, it aims to analyze the CSR actions developed by financial entities through the analysis of all the available information disclosed in their websites. A content analysis applied to 82 banking institutions, followed by different quantitative analyses, reveals the multidimensionality of CSR. Findings show that, while the number of entities institutionalizing CSR values as core elements of their identities is still reduced, most organizations disclose CSR information to construct communicated identities and legitimate behaviours. Besides, these dimensions are classified depending on the stakeholder the action is aimed to, and that entities favour the generation of distinctive identities through the implementation and communication of more visible CSR actions like those involving their customers or the community. In any case, results indicate that organizations with certain characteristics are more likely to construct distinctive identities through CSR activities and to establish ethical and social values within their corporate statements and cultures.     

How does working capital management affect the profitability of Spanish SMEs?

This paper analyzes the relation between working capital management and profitability for small and medium-sized enterprises (SMEs) by controlling for unobservable heterogeneity and possible endogeneity. Unlike previous studies, we examine a non-linear relation between these two variables. Our results show that there is a non-monotonic (concave) relationship between working capital level and firm profitability, which indicates that SMEs have an optimal working capital level that maximizes their profitability. In addition, a robustness check of our results confirms that firms?? profitability decreases as they move away from their optimal level.     

The impact of individualism on buyer–supplier relationship norms,trust and market performance: An analysis of data from Brazil and the U.S.A.

This study focuses on the impact of the cultural dimension of individualism, face-to-face communication and the effect of relational norms such as supplier involvement and trust on the market performance of buyer firms. We use the culture literature and social exchange theory to test hypotheses using a sample of Brazilian and US manufacturing firms. The data were analyzed using variance-based structural equation modeling, employing nonlinear partial least squares regression. Our findings indicate that individualism is negatively related to the involvement of suppliers in the production process but is not associated with trust in suppliers. In addition face-to-face communication seems to have a positive effect on supplier involvement and trust.     

When hedonic products help regulate my mood

This paper analyzes how affect mechanisms work when consumers form their attitude toward and intention to purchase a hedonic product. The first of two studies shows that when products have the potential to improve moods, affect regulation dominates affective evaluation in forming purchase intentions. In other words, the need to repair one??s mood overrides mood-congruent reviews. However, the affect regulation mechanism is not very stable, and study two shows that introducing a competing source of information, such as product reviews, overwhelms the effect. Results show that when consumers are in a bad mood, product reviews significantly influence their attitude and purchase intention regarding a hedonic product. However, this effect is not significant for consumers in a positive mood because they generate both arguments and counterarguments that compensate for the information received from a third party.     

Non-profit organizations,entrepreneurship, social capital and economic growth

Traditional economic growth literature focuses mainly on the neoclassical approach. According to this view, firms try to maximize their benefits so that there is no place for non-profit organizations (NPOs). However, the activity of NPOs has a higher relevance in society, and it is necessary to analyze its effects on economic growth. These effects are not direct, but occur through other variables that directly promote economic growth, such as entrepreneurship activity and human capital, and through the improvement of education. We engage in an empirical analysis of these issues using data from 11 countries.     

Social enterprises and social markets: models and new trends

Strengthening of the “disinterested” is key in the current economic situation (Bourdieu 1986). It can provide new values and ways of managing the markets and enterprise organizations; social enterprises are emerging as instruments to make this possible. This work studies the different traditions and analyzes social enterprises and social entrepreneurs, with particular attention to Spain. It also examines trends deriving from the new emerging models, first making an approximation of social markets: a market experience based on building a production, distribution, financing, and responsible consumption network that overcomes the limits of individual companies, engaging all the market’s economic agents. Finally, the risks and opportunities that these models present for a supportive and Social Economy are analyzed.     

The Immigrant Earnings Disadvantage across the Earnings and Skills Distributions: The Case of Immigrants from the EU's New Member States

We analyse the earnings of immigrants from the EU's new member states (NMS) using a large‐scale dataset with information on employees in Ireland. We find that the average earnings difference between these immigrants and natives is between 10 and 18 per cent, depending on the controls used. However, the difference is found to be lower for people at the lower end of the earnings distribution. It is also generally lower for people at the lower end of the education distribution. We find mixed evidence on whether unions have an impact on the wages of immigrants from the NMS, although such immigrants appear to suffer a wage penalty as a result of being in firms that provided training to a significant proportion of their workforce.     

Regulation and competition in the European mobile communications industry: An examination of the implementation of mobile number portability

Over the past two decades, the mobile communications industry has seen a considerable drop in the consumer switching charges made by service providers in order to promote effective competition and ensure a level playing field for new market entrants. Mobile Number Portability (MNP) is an important regulatory measure taken to reduce switching costs, and it is believed to play an important role in fostering competition in the mobile market. MNP implementation has varied significantly across European Union countries, particularly with respect to porting time and customer fees, both of which are important factors when deciding whether to switch to another provider. The research examines the effects of MNP implementation on competition in the European mobile communications industry. The study findings indicate that subscriber churn rates are negatively affected by both the level of charges levied on subscribers wishing to maintain their current number (porting) when switching mobile providers and the length of time required to switch. The implications of the effectiveness of MNP regulation for competition in the mobile communications industry are discussed.