Does Culture Drive Innovation and Export Quality?

Quality upgrading is important for two reasons: it helps us understand the determinants of trade flows between countries and it promotes economic development. We study the cultural determinants of export quality using Hofstede's four original cultural dimensions to provide hypotheses on R&D spending, patents per capita and export quality. We then employ three-stage least squares analysis and confirm our hypotheses. For example, we find uncertainty avoidance encourages small-scale continuous improvement initiatives and substantially increases export quality. Power distance and individualism increase export quality, while masculinity has a small impact on quality. Finally, we provide implications for understanding the direction of trade and developing policy.     

A Case Study of a Variance Analysis Framework for Managing Distribution Costs*

Managing the distribution function as part of an overall supply‐chain management strategy has become increasingly important given rising fuel costs in recent years. This paper presents a comprehensive variance analysis framework developed by supply‐chain managers at Catalyst Paper Corporation as a tool for reporting and controlling distribution costs. The model decomposes the overall static‐budget variance into four primary variance categories: volume, customer mix, distribution mix, and carrier charges. The framework addresses key limitations in the coverage of variance analysis contained in many management accounting textbooks. Specifically, Catalyst's framework incorporates: (a) mix variance calculations where there is more than one mix factor within a single cost element; (b) the impact of unplanned and unrealized activities; and (c) multiple nested mix variance calculations. Although developed in the context of distribution costs, the framework can be applied to the analysis of other manufacturing and non‐manufacturing costs where multiple mix factors exist. L'importance de la gestion de la fonction de distribution dans le cadre de la stratégie globale de gestion de la chaîne d'approvisionnement s'est accrue avec la hausse des coûts du carburant des dernières années. Les auteurs présentent un cadre complet d'analyse des écarts, élaboré par les gestionnaires de la chaîne d'approvisionnement chez Catalyst Paper Corporation aux fins de la présentation et du contrôle des coûts de distribution. Le modèle décompose l'écart global du budget fixe en quatre grandes catégories d'écarts: les écarts sur volume, les écarts sur composition de la clientèle, les écarts sur composition de la distribution et les écarts sur frais de transport. Le cadre résout les principales limites de la couverture de l'analyse des écarts évoquées dans de nombreux manuels de comptabilité de management. Le cadre d'analyse de Catalyst Paper Corporation englobe: a) les calculs de l'écart sur composition lorsqu'il existe plus d'un facteur de composition dans un même élément de coût; b) l'incidence des activités non planifiées et non réalisées; et c) les calculs de l'écart sur composition à multiples critères de classification. Bien qu'il ait été élaboré dans le contexte des coûts de distribution, ce cadre peut être appliqué à l'analyse d'autres coûts liés ou non à la fabrication, lorsque les facteurs de composition sont multiples.     

Perception of authenticity of tourist art among Native American artists in Santa Fe,New Mexico

This study investigated the authenticity of tourist art from the perspectives of Native American artists in Santa Fe, New Mexico. In‐depth interviews with nine artists revealed that authenticity of art for the artists strongly relates to the traditional manufacturing process. Indeed, the artists alter their art piece's exterior to appeal to tourists while also adhering to the traditional process of manufacture. Rather than connoting a loss of authenticity, they identify the process as an “enlargement” of the culture. The challenge for the artists is to improve understanding of the significance of the manufacturing process among tourists and younger generations of artists. Copyright © 2008 John Wiley & Sons, Ltd.     

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

We used both stated preference and revealed preference data to estimate willingness to pay (WTP) for shade‐grown coffee as compared with conventionally grown coffee. Stated preference data was collected using contingent valuation studies. Revealed preference data came from an experiment where all survey participants received a personally identifiable voucher redeemable for a free bakery item when the holder purchased a coffee. We compared estimates of mean and median WTP a price premium for shade‐grown coffee from stated preference data with similar estimates from revealed preference data. We used a logit model to evaluate the effect of explanatory variables (measures of environmental attitudes, personal norms for pro‐environmental behaviour and demographic variables) on respondents’ WTP a price premium for shade grown coffee. Model parameters were estimated using the maximum likelihood approach. Respondents with higher scores on measures of environmental attitudes and personal norms for pro‐environmental behaviour were, on average, willing to pay more for shade‐grown coffee. While this paper examined a specific case, purchase of shade‐grown coffee, our results confirmed that stated environmental concern was a good predictor of pro‐environmental behaviour. We found that mean and median WTP estimates from stated preference methods were higher, but not significantly different than mean and median WTP estimates from actual purchases, indicating convergent validity between stated and realized preference methods. The majority of individuals both stated WTP a price premium and purchased shade‐grown coffee at a price premium. We did, however notice some interesting behaviour at the individual level where stated preferences under‐predicted realized preferences at low price‐premia and over‐predicted realized preferences at high price premia.     

External transparency or internal capture? The role of third‐party statements in adding value to corporate environmental reports11

The paper seeks to evaluate the extent to which verification statements appearing in published corporate environmental reports promote organizational transparency and the empowerment of external parties. To this end, a detailed content analysis was performed on such statements appearing in reports short‐listed for the Association of Chartered Certified Accountants Environmental Reporting Awards for the first seven years of the scheme since its inception in 1991/92. Key issues focused upon included those of verifier independence, degree of rigour applied to verification work, whether the performance dimension is meaningfully addressed in verification statements and the extent to which such statements may be considered to ‘add value’ for external constituencies. Our analysis of the basic characteristics of these ‘leading edge’ statements raises fundamental questions concerning the independence of verification. There is much evidence of auditee control over the process, with an overriding emphasis on the environmental management systems at the expense of commentary on performance‐based ‘first order’ audit. The disturbing conclusion revealed is that current verification practice exhibits a ‘managerial turn’ rather than representing corporate commitment to external transparency and accountability. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment     

Perceptions of service delivery and happiness

An important task for students of development is to monitor progress in bringing basic services to all South Africans, one of the major objectives of the Reconstruction and Development Programme (RDP). This article reports on a subjective indicator study which began in February 1995, nine months after the April 1994 elections. The study, commissioned by Information Update, a Human Sciences Research Council research publication, inquired into personal happiness and assessments of local public services including access to water, education, electricity, health care, roads and transport. Over 5 700 South Africans were polled during 1995 in three nationally representative sample surveys. Secondary data analysis showed that perceived improvements to local services were closely associated with increases in happiness among all sectors of the population, including rural dwellers and the poor. The article discusses the policy implications of this finding for future voting behaviour and efficient local government.     

Removing biases in computed returns

This paper presents a straightforward method for asymptotically removing the well-known upward bias in observed returns of equally-weighted portfolios. Our method removes all of the bias due to any random transient errors such as bid-ask bounce and allows for the estimation of short horizon returns. We apply our method to the CRSP equally-weighted monthly return indexes for the NYSE, Amex, and NASDAQ and show that the bias is cumulative. In particular, a NASDAQ index (with a base of 100 in 1973) grows to the level of 17,975 by 2006, but nearly half of the increase is due to cumulative bias. We also conduct a simulation in which we simulate true prices and set spreads according to a discrete pricing grid. True prices are then not necessarily at the midpoint of the spread. In the simulation we compare our method to calculating returns based on observed closing quote midpoints and find that the returns from our method are statistically indistinguishable from the (simulated) true returns. While the mid-quote method results in an improvement over using closing transaction prices, it still results in a statistically significant amount of upward bias. We demonstrate that applying our methodology results in a reversal of the relative performance of NASDAQ stocks versus NYSE stocks over a 25 year window.     

Industrial Relations Climate,Employee Voice and Managerial Attitudes to Unions: An Australian Study

This article examines how employee voice arrangements and managerial attitudes to unions shape employees' perceptions of the industrial relations climate, using data from the 2007 Australian Worker Representation and Participation Survey (AWRPS) of 1,022 employees. Controlling for a range of personal, job and workplace characteristics, regression analyses demonstrate that employees' perceptions of the industrial relations climate are more likely to be favourable if they have access to direct‐only voice arrangements. Where management is perceived by employees to oppose unions (in unionized workplaces), the industrial relations climate is more likely to be reported as poor. These findings have theoretical implications, and significant practical implications for employers, employees, unions and the government.