Environmental context,managerial cognition,and strategic action: an integrated view

This study addresses an apparent disconnect between two views of strategic action: the ‘economic view,’ which contends that industry structure is the primary influence on strategic action, and the ‘cognitive view,’ which suggests that managerial cognition drives strategic action. We argue that this disconnect has created artificial boundaries between the two perspectives and has limited our ability to develop holistic explanations of strategic action. In response, we develop an integrated model that answers two questions: 1) Does industry context affect managerial cognition? 2) Does managerial cognition mediate the relationship between industry context and strategic responses to environmental changes? To examine these questions, we study the relationship between industry velocity, the structure of top management's cognitive representation of the environment, and the speed of response to environmental events. We find that industry velocity influences the structure of cognitive representations, which in turn influence the speed of response to environmental events. These results support our contention that both industry and cognition variables are critical in developing explanations of strategic actions. These results have implications for our understanding of the development of top managers' beliefs, the relationship between beliefs and action, and the nature of the complex relationship between industry context, managerial cognition, and strategic action. Copyright © 2008 John Wiley & Sons, Ltd.     

Collectivism,individualism, and outgroup cooperation in a segmented China

A consistent theme in cross-cultural management research is that collectivists are more cooperative than individualists. We use Hofstede's measure for individualism–collectivism and combine it with an experimental measure of cooperation to test this relationship in China. In contrast to the established paradigm, we find that groups with higher individualistic scores are more cooperative than those groups with higher collectivistic scores. We attribute these results to groups being composed of outgroup members. In addition, we find that subjects from the more developed coastal area are more individualistic and cooperative than are subjects from inland China.

Innate and discretionary accruals quality and corporate governance

This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger relation between sound governance mechanisms and innate accruals quality than discretionary accruals quality.     

Coping with a natural disaster: Losses, emotions, and impulsive and compulsive buying

Using data collected from 427 US Gulf Coast residents who were impacted by Hurricane Katrina, a structural model based on life event theory is proposed and empirically tested. Results show that perceived lack of control and loss of possessions contribute directly to stress, and event-induced stress impacts depression. Depressive states, in turn, lead to impulsive and compulsive buying behaviors. Multi-group analysis reveals that income moderates the relationship between depression and compulsive buying, but age, gender, and insurance coverage do not. The depression–impulsive buying relationship is not moderated by any of these factors. Disaster victims engage in distinct purchasing behaviors to manage emotional states, recoup losses, and restore their sense of self. In the aftermath of a traumatic event, impulsive buying appears to be a rational and beneficial behavior; compulsive buying does not. The results heed valuable ethical and social responsibility implications to marketers and public policy makers.

The Influence of Trust and Attitudes on the Purchase Frequency of Organic Produce

Growth in organic food sales is mainly due to consumers becoming more aware of health issues and environmental concerns. Understanding the drivers of organic consumption is crucial to predict future market outcomes. In this analysis, the authors expand previous research by including general and institutional trust variables in addition to consumer attitudes to examine organic food purchases. Food production is unobservable and hence, consumers need to exhibit trust with respect to organic production and certification. A bivariate ordered probit model applied to U.S. survey data confirms that organic purchases are determined by health, nutrition, and taste. In some cases, general trust and trust in media are statistically significant. Trust in institutions that are involved in the organic certification process is not statistically significant. A hierarchical cluster analysis grouping consumers based on trust and attitudes shows that (dis)trust in the organic certification and supply chain does not hinder organic food market growth.     

Understanding Why Consumers Don't Skip Pre-Roll Video Ads

Pre-roll advertising is a novel form of online video advertising that provides consumers with an option to skip after viewing a brief forced segment. Pre-roll ads are unique from other forms of online advertising because pre-roll ads play in exactly the space in which consumers are expecting to view their intended content. Such interruption and obstruction not only heightens consumer irritation but also causes attention-getting tactics, which are redundant in a highly attentive state, to backfire. For these reasons, existing ad avoidance literature may not adequately address this unique format. Employing a large industry data set of pre-roll ads representing multiple countries and product categories, we empirically examine skipping behavior using a broader range of ad characteristics than previous research. We propose that less complex affective ad characteristics increase skipping by failing to engage cognitive resources and therefore leaving cognitive resources available to experience irritation. We further posit that, in a pre-roll context, attention-getting ad characteristics are not only superfluous but actually increase the likelihood consumers recognize pre-roll content as advertising and skip. Our empirical findings support these assertions, identifying new factors driving ad avoidance, and calling into question the applicability of attention-getting advertising approaches in the novel pre-roll environment.     

Austerity and Hospitals in Deficit: Is PPP Termination the Answer?

While austerity is commonly presented as a necessary, although undesirable, reduction in public expenditure, this framing may disguise a re-imagining of the state whereby governments seize the opportunity of economic difficulties to shrink the state. This paper offers a critical examination of the nature of austerity by exploring the case of the UK's National Health Service (NHS), which according to political rhetoric is protected from austerity cuts. However, in the context of eight years of historically low funding growth coupled with increasing demand pressures from a growing and ageing population, the NHS has for several consecutive years faced substantial overspending by NHS provider organizations. With the Government intent on continuing its deficit and debt reduction path within a framework of ‘austerity’ focused almost exclusively on the expenditure side, NHS organizations have begun to explore radical solutions for reducing their costs. Following reported savings obtained by the early termination of a PPP contract at the Hexham General Hospital, politicians and some NHS managers have considered whether this experience might be repeated elsewhere. Our aims in this paper are to examine the financial feasibility of responding to the pressures created by austerity in this particular way, and to challenge the notion that the NHS has been protected from austerity. We extend the evidence base on PPP contract termination and analyze statistical information and financial statements in the public domain to highlight the legal and financial realities of early PPP termination.     

Searching hospital discharge records for snow sport injury: no easy run?

When using hospital discharge data to shape sports injury prevention policy, it is important to correctly identify cases. The objectives of this study were to examine the ease with which snow-skiing and snowboarding injury cases could be identified from national hospital discharge data and to assess the suitability of the information obtained for shaping policy. Hospital discharges for 2000-2004 were linked to compensated claims and searched sequentially using coded and narrative information. One thousand three hundred seventy-six eligible cases were identified, with 717 classified as snowboarding and 659 as snow-skiing. For the most part, cases could not be identified and distinguished using simple searches of coded data; keyword searches of narratives played a key role in case identification but not in describing the mechanism of injury. Identification and characterisation of snow sport injury from in-patient discharge records is problematic due to inadequacies in the coding systems and/or their implementation. Narrative reporting could be improved.