The Impact of Outsourcing Strategies on Information Systems Capabilities in the Hotel Industry

This work analyses the strategy of outsourcing information systems and information technology (IS/IT), considering the different activities comprising the IS/IT area. The literature on IS contains numerous works that analyse outsourcing, very few of which examine the relationship with the different types of capabilities in the IS/IT area and their strategic value. Most works centre on the motives for, and advantages of, the strategy of outsourcing the IS/IT area, while scant attention has been paid to the study of the long-term consequences of outsourcing. This work develops a theoretical model which is applied to the hotel sector and which shows that hotels following a more intensive outsourcing strategy develop fewer managerial capabilities related to knowledge in the management of IS/IT resources. This negative relationship extends to other types of capabilities typical of the area and to certain organisational capabilities. A negative relationship is also observed between the level of outsourcing and the strategic value given to the IS/IT area, which may lead to a lower potential for the development of competitive advantage.     

Geodemographic and socioeconomic characterization of the retail attraction of leading hypermarket chains in Spain

This paper aims at examining the impact on demand of the competitive positioning strategies developed by the leading hypermarket chains in Spain. Specifically, the purpose is to carry out a geodemographic and socieconomic characterization of the potential consumers of each chain. As retail attraction has traditionally been divided into three components, distance, mass and image, a gravitational model is proposed which distinguishes them and facilitates the evaluation of existing differences across any a priori segmentation base. The empirical test identifies significant geodemographic differences in the retail attraction of hypermarket chains. Chains seem to target the whole market by developing an image balanced against the advantages and disadvantages derived from the spatial coverage strategy. Social class is not as good an indicator of hypermarket choice as expected, although some interesting patterns have been detected.     

Valuing the implicit guarantee of the Federal National Mortgage Association

The paper analyzes the guarantee of the Federal National Mortgage Association (FNMA). Rather than try to price the guarantee, we used time-series estimates of its value from Kane and Foster to infer the behavior of FNMA in exploiting the guarantee. The results are consistent with a model that predicts that FNMA does not take as much risk as it might. Rather, it trades off risk and return, but it does increase risk and exploit the guarantee when it gets in trouble (as it did in 1981).We have received helpful research assistance from Peter Carr and Bruno Gerard.     

The effect of relative performance feedback on individual performance in team settings under group-based incentives*

This study reports the results of an experiment that analyses the behavioural effect of relative performance feedback (RPF) on individual performance when compensation is based on team performance. Specifically, it investigates whether RPF affects individual performance differently when the comparison focuses on other members of that individual’s team (within-group RPF) or on other teams (between-group RPF). We predict a negative effect of within-group RPF on individual performance. We also predict that between-group RPF moderates that negative effect, since it encourages individuals to focus on group goals rather than individual goals. Consistent with our predictions, results show that the negative effect of within-group RPF on individual performance is mitigated by between-group RPF. Our results can help accountants to better understand how the effects of relative performance feedback differ according to the predominant comparison target.     

Perceptions of pre-service teachers on seismic risk and their implications for science education: a comparative study between Spain and Portugal

Abstract

This study investigated the importance given by two groups of pre-service teachers of primary education from Spain and Portugal to seismic risk in a framework of different natural risks, both in personal terms and as future teachers. A questionnaire was used for data collection. Some questions about the seismic phenomenon were also included. The sample groups consisted of 110 students from an institution in Spain and 121 from one in Portugal. Both institutions are in cities affected by the historic Lisbon earthquake of 1755. The results showed that the risk of forest fire was the first choice for classroom study in both cases. The Spanish group was also more focused on the importance of other risks like flood and drought. The Portuguese group showed a greater concern with seismic risk, frequently referring to their own historic earthquake of 1755. A few gaps in knowledge concerning earthquake prediction and comparing seismic risk in different regions of their own countries were also found. In accordance with the results, it is suggested that training courses for primary school teachers should include Disaster Risk Education in Science Education for a better understanding of the impact of various hazards and a greater concern with seismic risk due to its particular features, especially in regions where the seismic pattern is characterized by long seismic cycles with major earthquake episodes.     

Liquidity Pools, Risk Sharing, and Financial Contagion

This paper reevaluates the Allen–Gale (2000) analysis of interbank deposits to explain financial contagion. This paper modifies the pecking order of asset liquidation developed in Allen–Gale, which is essential in fragility analysis. Furthermore, we also provide a claim structure called liquidity pool that can both achieve risk sharing and prevent financial contagion across regions when asymmetric information about bank assets is absent. This model can partly explain why bank panics reduced substantially after the founding of the Fed and the role of IMF in regional financial crises.