Firm-hosted online brand communities and new product success

Many firms use online brand communities to support the launch of their new products. This study proposes a typology of firm-hosted online brand communities and examines whether such a classification system can improve predictions of new product success. A cross-industry analysis of 81 firm-hosted online brand communities shows that these communities reflect three archetypes. A subsequent survey of 170 community-hosting firms in the consumer durable goods industry reveals that the three types of communities are not equally important for new product success. Moreover, one archetype generally underperforms the other two as a new product support mechanism. Overall, the results demonstrate that firm-hosted online brand communities can be a predictor of new product success.     

The ‘Urban Age’ in Question

Foreboding declarations about contemporary urban trends pervade early twenty‐first century academic, political and journalistic discourse. Among the most widely recited is the claim that we now live in an ‘urban age’ because, for the first time in human history, more than half the world's population today purportedly lives within cities. Across otherwise diverse discursive, ideological and locational contexts, the urban age thesis has become a form of doxic common sense around which questions regarding the contemporary global urban condition are framed. This article argues that, despite its long history and its increasingly widespread influence, the urban age thesis is a flawed basis on which to conceptualize world urbanization patterns: it is empirically untenable (a statistical artifact) and theoretically incoherent (a chaotic conception). This critique is framed against the background of postwar attempts to measure the world's urban population, the main methodological and theoretical conundrums of which remain fundamentally unresolved in early twenty‐first century urban age discourse. The article concludes by outlining a series of methodological perspectives for an alternative understanding of the contemporary global urban condition.     

Corporate governance and incentive contracts: Historical evidence from a legal reform

This paper proposes to exploit a reform in legal rules of corporate governance to identify contractual incentives from the correlation of executive pay and firm performance. In particular, we refer to a major shift in the legal and institutional environment, the reform of the German joint-stock companies act in 1884. We analyze a sample of executive pay for 46 firms for the years 1870–1911. In 1884, a legal reform substantially enhanced corporate control, strengthened the monitoring incentives of shareholders, and reduced the discretionary power of executives in Germany. The pay–performance sensitivity decreased significantly after this reform. While executives received a bonus of about 3–5% in profits before 1884, after the reform this parameter decreased to a profit share of about 2%. At least the profit share that is eliminated by the reform most likely was incentive pay before. This incentive mechanism was replaced by other elements of corporate governance.     

Efficient Contests

In their seminal contribution, Lazear and Rosen (1981) show that wages based upon rank induce the same efficient effort as incentive‐based reward schemes. They also show that this equivalence result is not robust toward heterogeneity in worker ability, as long as ability is private information because it is not possible to structure contests to simultaneously satisfy self‐selection constraints and first‐best incentives. This paper demonstrates that efficiency can be achieved by a simple modification of the prize scheme in a mixed (heterogenous) contest where contestants learn their type after entry. If contestants know their type before entering the contest, rent extraction becomes an issue. Implications for optimal contest design are also explored. Finally, the relationship between effort maximizing contests and profit maximizing contests are discussed.     

Coevolutionary cycles of convergence: An extrapolation from the ICT industry

Convergence between technologies can be regarded as an increasingly emerging trend, and has received particular attention in the coming-together of previously distinct products and solutions within the information and communication technologies (ICT) industry. In previous research, the overall impact of the convergence phenomenon remains ambiguous. Whereas some scholars suggest convergence to be associated with disintegration, entry and growth, others relate the phenomenon to opposite effects, such as consolidation and shakeouts. This inconsistency in managerial conceptions on convergence formulates a need for an integrated understanding. Within a multi-case study approach, the convergence within ICT has been observed through examining the coevolution of actors in a converging environment, and patterns in innovation dynamics and managerial responses have been identified. In reflection with existing models of innovation cycles, a model for convergence innovation processes is elaborated and discussed. In particular, the reasoning within the ICT case set is transferred onto the currently emerging entrepreneurial activities in the intersection between nano- and bio-technologies (NBT), resulting in a comparison between ICT and NBT convergences, and deriving recommendations from a retrospective to a predictive context.     

DOES THE ECB HAVE A TIME‐INCONSISTENCY PROBLEM? A NOTE

A standard time‐inconsistency model of monetary policy, extended to include a time‐varying natural rate of unemployment, implies cointegration between the inflation rate and the unemployment rate. An application of the model to data for the EMU countries does not yield strong evidence of cointegration. In addition, the sign of the estimated coefficient of cointegration is not in line with a sign restriction imposed by the time‐inconsistency model.     

Integrating art as a trans‐boundary element in a radical innovation framework

Companies have learned that radical innovations (RIs) are a prerequisite to grow organically. However, companies struggle to identify and introduce RIs, as their inherent high uncertainties and novelty challenge established organisations and management routines. To address the first challenge, companies need to take a holistic approach and design a trans‐boundary environment of creativity, trans‐disciplinary and entrepreneurial spirit. This environment attracts and retains visionary people, fosters generation of new opportunities and cultivates adaptability. By adapting evaluation metrics for RI, setting up flexible processes, and promoting trans‐disciplinary exchange, the second challenge can be addressed. Increased research has concentrated on several aspects of RI lately, but so far a combining framework is missing. Our paper bridges this gap by developing an improved theoretical framework, enhancing the existing literature and introducing art as a method to advance trans‐disciplinary interchange. In a case‐study approach, we have applied our framework to the research and development department of Vodafone Research and Development, Germany, as they integrate art methodically in their research and development process. Analysing their RI capabilities, we identify the trans‐disciplinary exchange with artists as a novel initiator and driver of RI, which has not yet been adequately considered.     

A note on the anti-herding instinct of interest rate forecasters

With regard to interest rate forecasts, earlier researchers have found mixed evidence of forecaster herding. Using the Livingston survey data, we reexamined the case for forecaster herding. We did not find evidence of forecaster herding. On the contrary, we found strong evidence of forecaster anti-herding.     

Interest rates,distribution and capital accumulation – A post-Kaleckian perspective on the US and Germany

We analyse the effects of interest rate variations on the rates of capacity utilisation, capital accumulation and profit in a simple post-Kaleckian distribution and growth model. This model gives rise to different potential accumulation regimes depending on the values of the parameters in the investment, saving and distribution function. Estimating these core behavioural equations for the US and Germany in the period 1960–2007, we find significant and robust effects of interest payments with the expected sign in each of the equations. Our estimation results imply, both for the US and for Germany, that the effects of changes in the real long-term rate of interest on the equilibrium rates of capacity utilisation, capital accumulation and profits, are characterised by the ‘normal regime’: rising long-term real rates of interest cause falling rates of capacity utilisation, capital accumulation and profits, as well as redistribution at the expense of labour income and hence an increasing profit share in both countries.