Outlier‐Robust Bayesian Multinomial Choice Modeling

A Bayesian method for outlier‐robust estimation of multinomial choice models is presented. The method can be used for both correlated as well as uncorrelated choice alternatives and guarantees robustness towards outliers in the dependent and independent variables. To account for outliers in the response direction, the fat‐tailed multivariate Laplace distribution is used. Leverage points are handled via a shrinkage procedure. A simulation study shows that estimation of the model parameters is less influenced by outliers compared to non‐robust alternatives. An analysis of margarine scanner data shows how our method can be used for better pricing decisions. Copyright © 2015 John Wiley & Sons, Ltd.     

Transition and agricultural labor

Reforms have strongly affected agricultural employment in transition countries but in remarkably different ways. We present a theoretical model and an empirical analysis to explain differences in labor adjustment during transition. We show that the differences are due to a combination of variations in initial conditions and differences in reform policies and effects. The removal of price distortions and subsidies caused wage and price adjustments during transition and a reduction in labor demand in agriculture. Surplus labor outflow from agriculture was further stimulated by the privatization of the farm assets as they improve incentives and remove constraints for optimal factor allocation and structural adjustment. The shift to individual farms, which was especially strong in labor‐intensive production systems with low labor productivity in agriculture, has reduced the outflow of labor from agriculture by improving farm governance and labor efficiency, although this effect was mitigated by losses in scale economies due to disruptions and market imperfections in transition. In general, labor outflow was considerably lower on individual farms than on corporate farms, due to a combination of factors related to human capital, access to finance, and physical capital. In the last section of the article we present a general framework for understanding labor adjustments in transition countries. Specifically, we show that there are several patterns of labor transition. In one pattern, followed by, e.g., the Czech Republic and Hungary, there is initially a strong survival of the restructured large‐scale corporate farms that have laid off many workers. In the second phase of transition, gradually the importance of individual farms increases. In other countries, such as Romania, the opposite has happened. In these countries there is an immediate strong shift to individual farms, while labor use increases on average in agriculture. After this initial phase, the shift to individual farms continues, albeit more slowly, and labor use in agriculture starts to decline. Finally, our analysis shows that in countries such as Russia and Ukraine much of the surplus labor is still employed by little‐reformed former collective and state farms. Major adjustments await more progress in agricultural and general reforms.     

Should SMEs get out of the building? Examining the role of customer co-creation on radical organizational creativity*

Facing the liability of smallness, SMEs face substantial challenges in internally developing solutions to spur the generation of new ideas that challenge existing practices. In this study, we point to co-creation with customers as an external solution to boost radical organizational creativity. Relying on a sample of SMEs in the Northern Netherlands, we examine the impact of co-creation on radical organizational creativity. Following insights from organizational learning theory, we also test the moderating effect of the nature of the organizational structure and the level of organizational creativity support. We find that customer co-creation has a positive impact on SME’s radical creativity. Surprisingly, we find that organizational creativity support negatively moderates this relationship. Together these findings enrich our theoretical understanding of the drivers of radical organizational creativity. Moreover, they provide SME managers specific guidelines on how to generate radically new ideas.     

Patenting Activities and Firm Performance: Does Firm Size Matter?

Whereas prior research has provided valuable insights into the willingness of small and medium‐sized enterprises (SMEs) and large firms to engage in patenting, a comparison of the performance implications of patenting activities across small and large firms is still lacking. This gap is important because SMEs and large firms, having different resources and capabilities, might benefit from patenting activities in different ways. In particular, SMEs can be expected to benefit less from patenting activities in terms of protection against imitators than large firms. On the other hand, the propensity and ability of SMEs to license out their patents and generate additional revenue streams might be relatively higher than that of their large counterparts. This paper studies the impact of patenting on licensing, innovation, and financial performance for both SMEs and large firms, using multiple‐group path analyses on a sample of 358 manufacturing firms. Contrary to expectations, this study demonstrates that not only large firms, but also SMEs benefit from patenting in terms of commercializing product innovations. Moreover, for both SMEs and large firms, such increased innovation performance in turn contributes to higher profit margins. Patenting activities also increase the ability of SMEs and large firms to license out knowledge to external parties, and this positive effect is significantly stronger for large firms. However, neither in SMEs nor in large firms, these outward licensing activities generate short‐term financial benefits. Finally, the study demonstrates that patenting activities do not trigger significant cost disadvantages for either SMEs or large firms. Jointly, these findings provide unique insights in the value‐generating and cost‐increasing effects of patenting, suggesting that not only large firms, but also SMEs should consider patenting as a viable strategy to fully reap commercial benefits from their innovation activities. At the same time, they temper open innovation scholars’ expectations regarding the financial benefits of licensing out knowledge. Overall, these findings point to opportunities for optimizing the intellectual property management of both SMEs and large firms.     

Moving forward quantitative research on innovation management: a call for an inductive turn on using and presenting quantitative research

Whereas innovation scholars have mainly relied on survey designs, secondary data and experiments to engage in deductive theory-testing research, I highlight that quantitative data can also be viable sources to induce theoretical insights into emerging innovation phenomena. In this paper, I discuss how scholars can use quantitative data for inductive innovation management research. First, I point to quantitative data as viable complements to enrich qualitative inductive research. Second, I point to the presence of alternative methods (e.g., cluster analyses and fsQCA) that allow using quantitative data as the core data for inductive research. Finally, I highlight the need to reduce the existing gap between how quantitative research on innovation management is executed and how it is presented in paper publications. In particular, I advocate an alternative mode of reporting that embraces the surprises and counterintuitive insights, which often emerge as scholars engage in a quantitative research journey. Together, my arguments aim to stimulate an inductive turn on quantitative research in innovation management, which can complement the existing deductive research tradition.     

Environmental leaders: making a difference. A typology of environmental leaders and recommendations for a differentiated policy approach

In the literature, environmental leaders are often implicitly considered as a homogeneous group of companies. In addition, this proposition underlies much public policymaking that is aimed at supporting companies that go green'. A recent exploratory study conducted in the Netherlands however revealed that environmental leaders are often rather heterogeneous – even if they operate in the same sector. Differences are particularly related to incentives for and barriers to environmental leadership. In this paper we develop a typology of environmental leaders and provide recommendations for a differentiated and more effective public policy approach to supporting environmental leaders. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

A count-amount model with endogenous recording of observations

This paper discusses some of the problems which are encountered if an event ? is only recorded if its value satisfies a recording criterion A. It follows that we get an incorrect idea of the frequency of the events and of its true distribution. In order to solve these problems, an econometric model has been constructed by means of which consistent estimation of the true parameters is possible. The model is estimated on consumer purchases, where the number of purchases is assumed to be NEGBIN-distributed and the purchase amounts obey a lognormal distribution. Purchases are only recorded if their value exceeds Dfl. 10. It is shown that ignoring the recording condition will result in biased estimates and invalid predictions. Apart from this, the model is, among others, relevant for insurance problems, marketing surveys and criminological and epidemiological phenomena.     

Cost-effectiveness of 3-month paliperidone therapy for chronic schizophrenia in the Netherlands

Background: A new depot formulation of paliperidone has been developed that provides effective treatment for schizophrenia for 3 months (PP3M). It has been tested in phase-3 trials, but no data on its cost-effectiveness have been published.

Purpose: To determine the cost-effectiveness of PP3M compared with once-monthly paliperidone (PP1M), haloperidol long-acting therapy (HAL-LAT), risperidone microspheres (RIS-LAT), and oral olanzapine (oral-OLZ) for treating chronic schizophrenia in The Netherlands.

Methods: A previous 1-year decision tree was adapted, based on local inputs supplemented with data from published literature. The primary analysis used DRG costs in 2016 euros from the insurer perspective, as derived from official lists. A micro-costing analysis was also conducted. For the costing scenario, official list prices were used. Clinical outcomes included relapses (treated as outpatients, requiring hospitalization, total), and quality-adjusted life-years (QALYs). Rates and utility scores were derived from the literature. Economic outcomes were the incremental cost/QALY-gained or relapse-avoided. Model robustness was examined in scenario, 1-way, and probability sensitivity analyses.

Results: The expected cost was lowest with PP3M (8,781€), followed by PP1M (10,325€), HAL-LAT (11,278€), RIS-LAT (11,307€), and oral-OLZ (13,556€). PP3M had the fewest total relapses/patient (0.36, 0.94, 1.39, 1.21, and 1.70, respectively), hospitalizations (0.11, 0.46, 0.40, 0.56, and 0.57, respectively), emergency room visits (0.25, 0.48. 0.99, 0.65, and 1.14, respectively) and the most QALYs (0.847, 0.735, 0.709, 0.719, and 0.656, respectively). In both cost-effectiveness and cost-utility analyses, PP3M dominated all other drugs. Sensitivity analyses confirmed base case findings. In the costing analysis, total costs were, on average, 31.9% higher than DRGs.

Conclusions: PP3M dominated all commonly used drugs. It is cost-effective for treating chronic schizophrenia in the Netherlands. Results were robust over a wide range of sensitivity analyses. For patients requiring a depot medication, such as those with adherence problems, PP3M appears to be a good alternative anti-psychotic treatment.