The changing consumer in Belgium

Centrally located at the cross-roads of the main European Cultures that constitute its roots, Belgium can in many respects be regarded as a miniature Europe. Indeed, most general economic and consumption tendencies that have a grip over Europe, also reign the Belgian society.Yet, Belgium's macro marketing mix exhibits a number of particular characteristics. The remarkably developed retail apparatus and extensive product assortments are typical of a small but rich consumption society. At the same time, promotional expenditures remain modest, and price competition in major sectors is fierce.In view of the future, the foregoing aspects characterize Belgium as a potentially attractive test market for internationally oriented firms. Conversely, it appears to be an interesting commercial arena only for marketers with high cost efficiency, or with superior targeting skills allowing them to cater to the needs of small market segments with considerable purchasing power.     

Championship Behaviors and Innovations Success: An Empirical Investigation of University Spin‐Offs*

Despite the flurry of scholarly research on champions, no prior article has explicitly addressed how different dimensions of championship behavior actually contribute to innovation success. In this article, based on an extensive literature review, the authors argue that champions display four behaviors, namely (1) pursuing innovative ideas, (2) network building, (3) persisting under adversity, and (4) taking responsibility for the idea. The authors use data from 123 university spin‐offs to test proposed linear and curvilinear relationships between the four behaviors and an objective measure of innovation success, namely a longitudinal measure of sales growth. The results indicate that network building has the desired positive relationship with sales performance. Surprisingly, pursuing the innovative idea is not related to sales growth. Furthermore, the present study also reveals some dysfunctional effects of champion behaviors. Persisting under adversity and taking responsibility have the hypothesized inverted‐U relationship with sales growth. The present study provides a more refined discussion of the benefits and dangers of championing behaviors. Our results show that linking technology to markets can be planned and controlled only to a very limited extent even if champions are working hard to sell the idea to potential customers. Moreover, any new idea is often competing with existing products and pursuing such ideas may result in opposition to the idea. In contrast, network building has the desired positive relationship with innovation success. Effective championing behavior keeps an innovative idea alive by mobilizing support and building coalitions around the idea with critical individuals or important third parties. Moreover, this study challenges the widespread “heroic” discussion of championing as fundamentally positive “across the board.” The results show that persisting under adversity and taking responsibility are desirable up to some levels. Beyond such critical levels, these two champion behaviors may actually become detrimental to the innovation process. Being too persistent in the face of adversity or taking too much responsibility for the innovative idea might undermine the power of the champion's justifications for an innovation and thereby increase resistance to change. An “over‐performing” champion may interpret opposing communications as an unwarranted and injurious response. By taking overmuch responsibility for the innovative undertaking, the champion is likely to discourage contributions from other team members who see no valuable opportunity to bring their expertise and knowledge to the idea.     

What Makes for a Contribution? Elaborating on Our Publication Expectations at JBL

This editorial elaborates on the expectations for research destined for publication in the Journal of Business Logistics (JBL). We explore the dimensions of topical coverage, theory, methods, and research implications. The purpose of expounding these expectations is twofold: (1) to inform prospective authors on how to best position their work for submission, and (2) to initiate our reviewers and associate editors (AEs) of the expectations for the evaluation of research. By better illuminating our expectations, authors will have a better experience with the journal, associated with higher levels of success. Also, reviewers and AEs will be better prepared to express their opinions in a constructive fashion, helping to nurture more impactful papers. The editorial concludes by introducing the articles appearing in the current issue of the journal.     

A positive model of tax structure

The model of tax structure developed in this paper is one in which the composition of revenues and the structure of specific taxes arise ‘naturally’ as the result of self-interested political behavior. It is assumed that political agents choose tax structure so as to minimize the political costs (or expected net loss in votes) associated with raising a budget of given size. Several hypotheses concerning the nature of political cost functions are developed and applied to an explanation of the differences among U.S. states in their reliance on income taxation. The empirical application emphasizes differences in political constraints across jurisdictions in the belief that much can be learned about the choice of policy instruments by studying structural adjustments in response to varying constraints. The paper discusses how the proposed approach differs from or is consistent with that adopted by other authors, and how the estimating equation relates to other empirical research in the literature.     

The Stochastic Volatility of Short-Term Interest Rates: Some International Evidence

This paper estimates a stochastic volatility model of short-term riskless interest rate dynamics. Estimated interest rate dynamics are broadly similar across a number of countries and reliable evidence of stochastic volatility is found throughout. In contrast to stock returns, interest rate volatility exhibits faster mean-reverting behavior and innovations in interest rate volatility are negligibly correlated with innovations in interest rates. The less persistent behavior of interest rate volatility reflects the fact that interest rate dynamics are impacted by transient economic shocks such as central bank announcements and other macroeconomic news.     

Long Memory In Futures Prices

This paper tests for fractional roots in the futures prices for selected commodities, foreign currencies, and stock indexes. The fractional testing method is the spectral regression method suggested by Geweke and Porter-Hudak (1983). The empirical results suggest the presence of a fractional exponent in the differencing process for several commodity and foreign currency futures prices. The returns series for these commodities and currencies exhibit long range positive dependence. However, differencing of exact order one is sufficient for the stock index futures prices. Implications are drawn concerning theoretical and econometric modeling and price forecasting.     

The Dodd‐Frank Wall Street Reform and Consumer Protection Act: Accomplishments and Limitations*

The Dodd‐Frank Wall Street Reform and Consumer Protection Act of 2010 is widely described as the most ambitious and far‐reaching overhaul of financial regulation in the United States since the 1930s. Together with other regulatory reforms introduced by regulatory agencies globally, the Act aims to put an end to the too‐big‐to‐fail problem and is expected to alter the structure of financial markets in profound ways. This article provides an overall assessment of the Act in three different ways: first, in light of first economic principles, or how theory suggests we should regulate the financial sector, given the systemic risk externality each financial firm imposes on other firms and the rest of the economy; second, from a comparative perspective that views the proposed reforms in relation to those undertaken in the 1930s following the Great Depression; and, finally, in the form of an assessment of how the proposed reforms would have fared in preventing and dealing with the crisis of 2007–2009 had they been in place at the time. The article also highlights key areas that are left wholly or partly unaddressed by the Dodd‐Frank Act—notably, the pricing of explicit and implicit government guarantees; dealing with inevitable opportunities for the financial sector to engage in regulatory arbitrage; and containing the systemic risk arising from collections of small institutions and markets such as money market funds and repo contracts.     

Translational benchmark risk analysis

Translational development – in the sense of translating a mature methodology from one area of application to another, evolving area – is discussed for the use of benchmark doses in quantitative risk assessment. Illustrations are presented with traditional applications of the benchmark paradigm in biology and toxicology, and also with risk endpoints that differ from traditional toxicological archetypes. It is seen that the benchmark approach can apply to a diverse spectrum of risk management settings. This suggests a promising future for this important risk‐analytic tool. Extensions of the method to a wider variety of applications represent a significant opportunity for enhancing environmental, biomedical, industrial, and socio‐economic risk assessments.