Capital Mobility in Open OLG Models of Neoclassical Growth

This paper explores whether the international mobility of physical and/or financial capital is essential for productive efficiency in each of three open OLG models of neoclassical growth that vary in terms of dimensional attributes. A tradeoff between capital mobility requirements and dimension has previously been established by example where, ceteris paribus , neither form of capital mobility is required with three productive sectors, only physical capital mobility is required with two sectors, and both forms of mobility are required with a single sector. This paper reconsiders that tradeoff using a generalization of the production and utility functions which introduces the potential for specialization along the transition path—an event which would imply inconsistent capital mobility requirements along the growth path for models with fixed dimension. Conditions are established under which the tradeoff between capital mobility requirements and dimension remains valid.     

When does incentive compensation motivate managerial behaviors? An experimental investigation of the fit between incentive compensation,executive core self-evaluation,and firm performance

We develop and test an integrative model that examines the fit between compensation schemes, executives' characteristics, and situational factors. We propose that a fit among all three factors is crucial to motivate desirable managerial behaviors. Using a specially designed management simulation, our study demonstrates that the effectiveness of incentive compensation to motivate managerial behaviors depends on executives' core self-evaluation and firm performance. Our results show that, relative to fixed salary compensation, executives with higher core self-evaluation respond to incentive compensation with greater perseverance, competitive strategy focus, ethical behavior, and strategic risk taking during organizational decline. However, these interaction effects are not present during organizational growth. Our theory and empirical evidence provide significant insights into the complex relationships among compensation schemes, executives' characteristics, firm performance, and managerial behaviors. Copyright © 2012 John Wiley & Sons, Ltd.     

Should I advertise on the interstate?

The highway logo signing program has existed for over 20 years. Since its inception, most motorists have become accustomed to relying on these blue signs to provide information on services available at each highway exit. However, there is little, if any, literature that examines the program as an advertising source, and no formal literature that addresses the signing program from the perspective of the independent business owner. This paper provides service business owners with information about the highway logo signing program, and is directed toward independent owners who are considering the signing program as an advertising source. A five step process is described that owners can follow to first determine if the venue is viable, and then if the investment is value-added for them.     

The Political,Economic, and Social Aspects of Katrina

In this paper, we examine the resiliency of community recovery after a natural disaster. We argue that a resilient recovery requires robust economic/financial institutions, political/legal institutions, and social/cultural institutions. We explore how politically and privately created disaster preconditions and responses have contributed to or undermined institutional robustness in the context of the Gulf Coast's recovery after Hurricane Katrina. We find that where postdisaster resiliency has been observed, private-sector responses contributing to the health of these institutional arenas are largely responsible. Where postdisaster fragility and slowness has been observed, public-sector responses contributing to the frailty of these institutional arenas are largely the cause. In other words, we engage in a comparative institutional analysis of civil society, entrepreneurial commercial society, and government agencies and political actors in the wake of a natural disaster.     

The Effects of Information and Cognitive Processes on Decision Making

This article examines the efficacy of a two-stage cognitive model of decision making within the context of loan decisions. A covariance structural analysis of the cognitive processes that loan officers and MBA students used to reach loan decisions was examined through measures designed to test the proposed two-stage processing model. The results indicated that, during the first stage of cognitive processing, conceptually-driven and data-driven perceptual biases caused different assessments of loan information. The results also indicated that judgments made during the second phase of processing significantly affected decision choice. The well documented conservatism bias was also evident in the results. The result was that experienced loan officers did not out-perform novice students on most of the loan decisions. The relative usefulness of the two-stage model is discussed and general suggestions for future decision making research are offered.     

Innovation in food service technology and its strategic role

Innovation in food service technology offers differentiation and cost leadership in strategic terms. The majority of food service businesses do not have research and development laboratories. At present, the innovations in equipment design and layout, packaging and service techniques are of a defensive or reactive nature. Examples of defensive innovation include faster and better preparation methods, improved temperature control, even heating, energy and labour savings, less waste, better sanitation, faster service and flexibility. In contrast, developments in offensive or pro-active innovation, which can radically change current practices, are rare. Novel food service processes can evolve as a result of adoption of technological breakthroughs in “high tech” fields of the economy. This justifies investments in offensive research and highlights the importance of technical competencies for a food service professional.