Social support among heterogeneous partners: an experimental test

This paper studies how dyadic social support is affected by heterogeneity of the partners. We distinguish heterogeneity with respect to three parameters the likelihood of needing support; the benefits from receiving support; and the costs of providing support. Hypotheses are based on a game-theoretic analysis of an iterated support game. First, we predict that heterogeneity in one of the parameters hampers social support. Second, we predict that under heterogeneity with respect to two of the parameters, support is most likely if there is a specific heterogeneous distribution such that heterogeneity in one parameter ‘compensates’ for heterogeneity in the other parameter. If there is no compensation social support is even more hampered. The hypotheses have been tested by experimental data with a mixed within-subject, between-subject design. The data gives support to the hypotheses.     

Convergence as a heterogeneous process: what can be learnt about convergence in EMU from regional experiences?

We augment the existing literature on regional convergence by uncovering a number of stylized facts on the heterogeneity of regional convergence processes in the absence of currency devaluation as a key policy instrument, and use them to highlight reform strategies that are most likely to be conducive to a successful catching-up of the periphery countries of EMU. We show that regional convergence processes in Europe were extremely heterogeneous, highly discontinuous and strongly concentrated during the last two decades. These stylized facts question the focus of the traditional literature on average (β-)convergence and suggest substantial nonlinearities in regional convergence processes that have yet to be understood in detail. Our results further suggest that growth strategies based on increasing human capital investments and innovation capacities are the most likely to be successful in triggering convergence of lagging regions in currency unions.     

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The antecedents of SME innovativeness in an emerging transition economy

Understanding forces that contribute to the success of small and medium enterprises (SMEs) is very important, as these enterprises are vital for both developed and developing economies. Since innovativeness is among the most important means through which such businesses contribute to economic growth, numerous research studies were conducted to determine which factors positively impact SME's innovative efforts. This is an even more important issue for developing economies, where SMEs are often faced with inadequate infrastructure. Since there is a lack of studies on SME innovation in developing economies, often policy in such countries is based on findings from developed countries.In this paper, we explore factors that drive innovation activities in SMEs in a small emerging transition economy (Croatia), and compare it with findings from developed economies. In addition to factors used in most previous studies, we consider market scope, firm's market orientation and presence of strategic, managerial and marketing changes. We find that most factors that were found to be important in developed economies are important in developing economies as well. In addition to that, market scope was discovered to be a very important factor in both product and process innovation. Implementing corporate changes has positive impact on radical product innovation while implementing new organizational structures has positive effect on incremental innovation. When investigating determinants of product innovation, we distinguish new products of low novelty from new products of high novelty, and show that they need to be supported by different policies. To gain additional insight in innovation efforts, we examine obstacles to innovation. We find that firms that report facing obstacles are not less likely to innovate less, which suggests that innovators are able to work around obstacles without damaging effects to innovation. This study is based on a postal survey of 448 SMEs in Croatia, which was performed in 2004.     

Should the forensic accounting profession be regulated?

Adopting Huber’s (2012) argument that forensic accounting has become a profession, this paper examines whether the forensic accounting profession and the forensic accounting certification industry should be regulated. Several recent studies have uncovered significant problems within the forensic accounting profession and the forensic accounting certification industry. The failure of forensic accounting corporations to disclose either their legal status or the qualifications of their officers and directors, their failure to publish financial statements, and their failure to adopt or enforce a Code of Ethics or Standards of Practice, were among the most significant problems uncovered. The failures of the corporations were exacerbated by forensic accountants’ failure to investigate diligently the corporations that issued their certifications prior to obtaining their certifications. This resulted in a significant number of forensic accountants holding certifications from corporations that were inconsistent with their beliefs that a forensic accounting corporation should be not-for-profit, and their officers and directors should be qualified.Those studies suggested three alternatives for addressing the problems: voluntary action by the corporations, establishing an independent agency for accrediting the corporations and certifications, and regulatory intervention. However, the feasibility of the recommended alternatives was not sufficiently evaluated to be able to arrive at a conclusion for recommending which alternative should be implemented.This paper evaluates the feasibility of alternative solutions. It concludes that the most realistic alternative is for government regulation of forensic accounting in the form of legislation at the state level.     

The Role of Consumers' Trust in Online-Shopping

Many consumers are sceptical or suspicious about the functional mechanisms of electronic commerce, its intransparent processes and effects, and the quality of many products that are offered online. This paper analyses the role of consumer trust as a foundation for the diffusion and acceptance of electronic commerce. Starting from a functional perspective trust is seen as distinct but potentially coexisting mechanism for reducing the uncertainty and complexity of transactions and relationships in electronic markets. The analysis focuses on conditions of e-commerce transactions that are relevant for the formation of trust problems. Drawing on the theory of information two types of uncertainty are described: system-dependent and transaction-specific uncertainty. Finally different activities and instruments are described and categorized that Internet firms can use to establish and maintain trust.     

Empathic Relationships in Professional Services and the Moderating Role of Relationship Age

Empathy has been identified as a key success factor for employees who interact with customers. Despite its overall relevance, only a few studies have acknowledged its multidimensional nature. Knowledge remains scarce about the relative impact of cognitive and affective empathy on relational outcomes. In addition, few pieces of research have explicitly acknowledged empathy as theorized within stage‐models focusing on the communication of empathy. The authors conceptualize empathy as a multidimensional construct perceived by the client. Empathy has to be communicated to be effective, while customers’ perceptions of empathy may also be more complex as they distinguish between cognitive and affective empathy. This article investigates the effects of perspective taking, emotional concern, and emotional contagion on trust and commitment. Drawing upon relationship stage concepts, the authors further argue that the influence is moderated by relationship age. Finally, this study investigates if employees benefit from being perceived as empathic partners in terms of “hard facts” (objective sales performance). Based on a data set from 215 business clients of a large consulting firm, this study adopts a structural equation modeling (SEM) approach by using multigroup analysis. To test the empathy–performance link, the authors aggregate customer responses nested in 84 employees and link perceived empathy with performance data. The results show that within B2B relationships, perspective taking exerts the strongest influence on trust, whereas emotional concern is the strongest driver for commitment. The results also confirm the moderating role of relationship age and that perspective taking leads to an increase in actual sales performance. This study underpins the relevance of empathy within services marketing, while providing a more detailed approach to account for empathy as a relation building tool. Practical and academic implications are also addressed.     

Trading Hot-Air. The Influence of Permit Allocation Rules,Market Power and the US Withdrawal from the Kyoto Protocol

After the conferences in Bonn and Marrakech, it is likely that international emissions trading will be realized in the near future. Major influences on the permit market␣are the institutional detail, the participation structure and the treatment of hot-air. Different scenarios not only differ in their implications for the demand and supply of permits and thus the permit price, but also in their allocative effects. In this paper we discuss likely the institutional designs for permit allocation in the hot-air economies and the use of market power and quantify the resulting effects by using the computable general equilibrium model DART. It turns out that the amount of hot-air supplied will be small if hot-air economies cooperate in their decisions. Under welfare maximization, more hot-airis supplied than in the case where governments try to maximize revenues from permit sales.