Mars or Mercury redux: The geopolitics of bilateral trade agreements

We analyse the role of economic and security considerations in bilateral trade agreements. We use the pre‐World War I period to test whether trade agreements are governed by standard gravity variables, or by instead—or in addition—geopolitical factors. While we like others find support for standard gravity variables, we also find that defence pacts boost the probability of trade agreements by as much as 20 percentage points. Our estimates imply that were the U.S. to alienate its geopolitical allies, the likelihood and benefits of successful bilateral agreements would fall significantly. Trade creation from an agreement between the U.S. and E.U. countries would decline by about 0.6 per cent of total U.S. exports.     

Alternative balanced scorecards built from paradigm models in strategic HRM and employment/industrial relations and used to measure the state of employment relations and HR system performance across U.S. workplaces

This paper constructs alternative balanced scorecards based on high‐performance work system (HPWS) and employment relations system (ERS) models. The models are depicted and compared in diagrams and used as framework skeletons for building separate HPWS and ERS scorecards, intended to provide a detailed data picture of the operational health and performance of an organization's employment/HR system and its operations, processes, and inputs/outputs. The scorecards are filled in with nationally representative data from 2,000+ U.S. workplaces using more than 50 employment/HR indicators, as reported by separate panels of managers and employees. The indicators for each workplace are aggregated into an overall HR/employment system score, ranked from low‐to‐high, and graphed as frequency distributions. These distributions provide a unique snapshot picture of the mean and dispersion of the state of employment relations and HR system performance for companies across the United State. They also reveal that “models matter” since the HPWS and ERS scorecards provide distinctly different evaluation assessments.     

Moral hazard and subsidized crop insurance

Along with adverse selection, moral hazard is one of the major hurdles that private and public insurance plans must contend with. Moral hazard occurs if risks are endogenous to a producer's behavior and if the insurer is unable to properly monitor the insured. We review the role of moral hazard in the US crop insurance program. We conduct an empirical analysis of one important aspect of the US crop insurance program—prevented planting. This provision provides indemnity payments if conditions are not suitable for planting. The program has been the subject of considerable controversy, especially during 2019, when the rate of claims is expected to be especially high. Because loss adjustors may encounter difficulties in assessing the weather conditions associated with prevented planting claims, the program is susceptible to moral hazard. We consider the extent to which prevented planting claims may be endogenous to prices. We find significant evidence of moral hazard. The likelihood of prevented planting claims increases as the expected market price decreases or as fertilizer costs increase for corn and soybeans in the Prairie Pothole Region and for grain sorghum and cotton in all states.     

Pressure and the ability to randomize decision-making: The case of the pickoff play in Major League Baseball

In mixed strategy games, the ability to randomize decisions is a critical strategic necessity, yet studies show that such rational behavior is sometimes elusive. This paper examines mixed strategy play in a natural setting, by looking at a pitcher’s decision to throw the ball to home plate or to throw it to first base in a pickoff play. In the absence of significant pressure, we find that pitchers can effectively randomize their sequence of choices to remain unpredictable, as mixed strategy Nash equilibriums require. However, in the face of pressure, some pitchers are less able to randomize their choices. Our paper is the first empirical study in the English language literature to find that decision makers are unable to randomize their strategic decisions when they face an increased cognitive load due to pressure.

     

Thriving in the New Normal: The HR Microfoundations of Capabilities for Business Model Innovation. An Integrated Literature Review

Firms need to respond to the increasing competition and change of the current New Normal environment by being more innovative, and especially in developing new business models. This paper seeks to explore how microfoundations, particularly with respect to human resource management, play a key role in facilitating innovation in business models through the development of key needed capabilities. Four themes are identified with respect to business model innovation (BMI) in the New Normal: BMI as an enabler to create and operate across industries and product-markets; BMI as a mechanism for firms to better navigate changing institutional landscapes; BMI as giving rise to business model portfolios; and concurrent and cumulative innovations that can lead to BMI. This paper also develops a conceptual framework that presents a synoptic view of the five essential capabilities for BMI, which include analogical reasoning, sensemaking, dynamic capabilities, organisational ambidexterity, and organisational learning. Finally, it is shown how the microfoundations of a bespoke, development-oriented BMI HR architecture can support the advancement of these capabilities and thus contribute to the strategic HR literature.     

Can environmentally oriented CEOs and environmentally friendly suppliers boost the growth of small firms?

The core question addressed in the natural resource‐based view (NRBV) of the firm is how to develop and exploit resources beneficial for both the natural environment and firm performance. Due to the resource constraints and increased competition facing small manufacturing firms, achieving this is a challenge for such companies. Building on the NRBV and resource orchestration literatures, we examine the relationship between green purchasing capabilities (GPCs), CEO's environmental orientation (EO), and firm growth. Results from 304 Swedish small manufacturing firms indicate a significant relationship between GPC and growth, and this relationship is positively moderated by the EO of the CEO.     

A Review of New Evaluation Models for Strategic Communication: Progress and Gaps

After identification of “stasis” in evaluation of strategic communication including public relations and corporate communication despite intensive focus for more than 40 years, recent initiatives in measurement and evaluation on three continents highlight a number of important advances in theory and practice. Although studies have identified a lack of standards and a narrow focus on “activities” and “outputs” in traditional evaluation models and literature, a two-year international study, which examined a number of recently developed evaluation frameworks and models and accompanying implementation guidelines, identifies several new concepts and dimensions in evaluation, along with some remaining gaps for further research. Based on content analysis of evaluation literature, interviews, and ethnography, this article reports four key findings of recent research and explains how these can contribute to theory-building and practice to transform the planning, implementation, and evaluation of public relations and corporate, government, organizational and marketing communication.     

Can countries rely on foreign saving for investment and economic development?

Contrary to widespread presumption, a surprisingly large number of countries have been able to finance a significant fraction of their investment for extended periods using foreign finance. While many of these episodes are in countries where official finance is important, we also identify episodes where a substantial fraction of domestic investment is financed by private capital inflows. Although there is evidence of a positive growth effect of such inflows in the short run, that positive impact dissipates after 5 years and turns negative over longer horizons. Many such episodes end abruptly, with compression of the current account and sharp slowdowns in investment and growth. Summing over the inflow (current account deficit) episode and its aftermath, we find that growth is slower than when countries rely on domestic savings. The implication is that financing growth and investment out of foreign savings, while not impossible, is risky and too often counterproductive.     

Changing dynamics of the overseas marketplace for TV programming: The rise of international co-production

This article examines the recent strategy adopted by the US television production industry in coping with the changing worldwide media environment. Developments in the USA include the commercial networks' declining audience share, the increasing penetration of cable TV, and spiralling production costs; abroad, the coming of age and increased sophistication of the televesion industry and the strengthening of programme import regulations are significant. Access to foreign markets is becoming critical to the financial equation of US producers and distributors of high-budget TV programmes. International co-production is the response to the new dynamics of world-wide television programming and a product of economic necessities.