Who is who

Praxis / MagazinNews

Who is who     

Product sophistication and spillovers from foreign direct investment

Foreign direct investment (FDI) in developing countries is often associated with higher economic growth due to knowledge and technology spillovers to local firms. One way that FDI speeds up growth is by facilitating the manufacturing of more sophisticated products by local firms. So far, there is a lack of firm‐level evidence how the presence of multinational firms affects the product sophistication of firms in a developing country. The aim of this paper is to fill this gap. We compile an extensive firm–product‐level data set of Indian manufacturing firms, which we complement with information on product sophistication and spillovers from FDI. We then explore different channels through which spillovers from multinationals to local Indian firms foster the manufacturing of sophisticated products. We find evidence that spillovers through supplier linkages strongly increase the manufacturing of sophisticated products in India.     

Behavioral Effects of Sustainability‐Oriented Incentive Systems

Companies increasingly extend their existing incentive systems by integrating several sustainable performance indicators. Although these ‘sustainability‐oriented’ incentive systems clearly highlight which business objectives should be attained, little is known about the effects that these incentive systems have on employee behavior. Based on signaling theory, social identity theory and a person–organization fit (PO‐fit) perspective, we assume positive relations between sustainability‐oriented incentive systems and employee attraction, motivation and cooperation. Furthermore, we examine whether these relations are moderated by personal attitudes toward corporate sustainability activities as well as the underlying mechanisms at the moderation (mediated moderation). Our experimental results (with students as future employees) do not give support for a general positive relation between sustainability‐oriented incentive systems and employee behavior. However, our data show that a person's attitude toward corporate sustainability activities moderates the link between sustainability‐oriented incentive systems and employee behavior. Additionally, we find PO‐fit perceptions to mediate the interaction effects. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Punishing Abortion: Duty,Morality, and Practicality in Early 20th‐Century France

Debates over the legality and morality of abortion in Europe, especially France, were quite different in the early 20^th century than they became in Europe and America after widespread legalization. Instead of focusing on the potential rights of the unborn, politically powerful pro‐natalist activists and their less influential neo‐Malthusian adversaries debated the need for larger populations, the role of abortion in facilitating sexual immorality, and the economics of single motherhood. The fetus was largely ignored as most French people continued to hold pre‐modern views of abortion prior to fetal movement as the morally neutral act of restoring delayed menstruation. French juries often showed leniency to women who aborted, although they more frequently voted to convict abortionists, especially midwives.     

Predicting new product success with prediction markets in online communities

The prediction of new product success is still a challenging task. Traditional market research tools are expensive, time consuming, and error prone. Prediction markets have been introduced as a viable alternative. Utilizing inputs from various participants in game‐like environments, they have been shown to produce accurate results by combining dispersed knowledge via market‐based aggregation mechanisms. While most previous studies use employees or experts as a sample, we test whether online consumer communities can be used to predict the sale of new skis via prediction markets. Sixty‐two users took part in the study. The prediction market was open for 12 days before the main skiing season 2010/2011 began. The outcomes of the prediction markets were compared with the actual sales numbers provided by the ski producers. The mean average errors were between 2.74% and 9.09% in the four markets. Overall, it can be concluded that the prediction markets based on consumer communities produce accurate results.     

Agents to the Rescue?

The advent of electronic environments is bound to have profound effects on consumer decision making. While the exact nature of these influences is only partially known it is clear that consumers could benefit from properly designed electronic agents that know individual users' preferences and can act on their behalf. An examination of the various roles agents perform is presented as a framework for thinking about the design of electronic agents. In addition, a set of goals is established that include both outcome-based measures, such as improving decision quality, as well as process measures like increasing satisfaction and developing trust.