How passive ownership restrictions affect the rate of franchisee failure

What variables influence the adoption of passive ownership restrictions in franchise systems and what are the effects of these restrictions on the rate of franchisee failure of such systems? This article shows how standard performance models that do not account for self-selection of these contractual decisions can improperly suggest a negative relationship between the adoption of passive ownership restrictions and a performance outcome of franchise systems – the rate of franchisee failure. However, models that do account for self-selection of these restrictions indicate that these contractual decisions per se do not affect such a performance outcome. The findings also show that franchise systems with misaligned passive ownership restrictions show a higher rate of franchisee failure than their better-aligned counterparts.     

Exploring Individual Factors Affecting Business Students’ Willingness to Study Abroad: A Case Study From the Caribbean

Despite a low rate of student participation in study abroad programs in the Caribbean, there is insufficient research about the individual factors that help determine business students’ willingness to study or to participate in internship programs abroad. This study aims to explore business students’ attitudes toward study abroad. The positive perceptions of students toward study or internship abroad raises questions about individual factors for business students’ outflow to study or participate in an internship abroad. This study also explores business students’ preferences for short- and long-term international study or internship abroad, as well as certification programs in international business. Moreover, it provides some insight into the segments of business students that are more likely to support these programs.     

Study Abroad Programs as Tools of Internationalization: Which Factors Influence Hungarian Business Students to Participate?

The internationalization of higher education has been on the agenda for decades now all over the world. Study abroad programs are undoubtedly tools of the internationalization endeavors. The ERASMUS Student Mobility Program is one of the flagships of the European Union’s educational exchange programs implicitly aiming for the internationalization of European higher education. Despite the high level of support from the European Commission, the ERASMUS opportunity seems to be underused in several institutions. This study looks at the possible obstacles of internationalization at the institutional level through the lens of study abroad programs, and serves as a lesson for higher education institutions in the USA. Through desk research and a student survey, the author explores the encouraging factors and discouraging factors that affect business students in their decision whether to apply for a study abroad program or not.     

Coalition Formation: The Role of Procedure and Policy Flexibility

A spatial model of coalition formation is used together with data from Dutch elections and theoretical instances to study different procedures of coalition formation. The model shows that procedure plays an important role in reaching a coalition agreement and that political parties do not necessarily benefit from being a first-mover. Moreover, it is shown that a decrease in a party’s flexibility can be (dis)advantageous in coalition negotiations. Furthermore, certain power sharing tactics appear not always to lead to an agreement that is in a party’s advantage. The main message put forward is that the procedure of forming a coalition plays a more important role than is usually acknowledged in literature and practice.     

Estimating the effect of the Internet on international trade

In this article, we study the effect of North American Free Trade Agreement (NAFTA) on the responsiveness of Mexican economy to real exchange rate shocks. We argue that, by opening the US and Canadian markets to Mexican goods, NAFTA made it easier for domestic producers to take advantage of the opportunities brought by the depreciation of the real exchange rate. To identify this mechanism, we use plant-level data and compare the behavior of employment, production and investment after two big real exchange rate shocks: the first observed in the mid-1980s, the second the Tequila Crisis of 1994–1995. The evidence indicates that after passage of NAFTA exporting firms exhibited higher growth rates of employment, sales and investment vis-à-vis non-exporters. We confirm our results by analyzing the behavior of a control group of firms, that had complete access to the US market during both devaluations, and we show that they responded in a similar way in both events. Finally, we also provide direct evidence on the relationship between exports and tariff reductions brought by NAFTA. Our results support the view that NAFTA has allowed Mexican producers to respond more quickly to real exchange shocks.     

Differences in Perceived Image of Fruit and Vegetables from a Specific Origin: The Moderating Role of Familiarity

Only a small number of works in the literature examines the role of familiarity in the perception of products from a specific origin, despite the importance of this variable in the formation of product image and its effects on consumer behavior. The current work aims to fill this gap in the literature by carrying out a cross-national analysis of consumers' image of fruit and vegetables that includes a defined origin. For this purpose, the authors examine the influence of product cues on the formation of a global image of the product, and considers the moderating role of familiarity in this relation. The results indicate that product familiarity has an effect on the relation between the product cues and the image perceived by the consumer, and that differences exist between the nationalities considered.     

Multi-stakeholder platforms for linking small farmers to value chains: evidence from the Andes

Value chains linked to urban markets and agro-industry present new opportunities for adding value and raising rural incomes. Small farmers, who produce small volumes, struggle to enter these markets. A lack of trust among value chain actors increases transaction costs and short-circuits innovation. This paper explores how multi-stakeholder platforms have been used to address these problems in potato-based value chains in Bolivia, Peru and Ecuador. It uses the Institutional Analysis and Development (IAD) framework to understand how platforms work. Differences in characteristics of the value chains, the participating actors and institutional arrangements have led to the emergence of two types of platforms. The first type brings traders, processors, supermarkets and others together with farmer associations and research and development (R&D) organizations to foster the development of new market opportunities through commercial, institutional and technological innovation. The second type is structured around geographically delimited supply areas, meshing farmers and service providers to address market governance issues in assuring volumes, meeting quality and timeliness constraints and empowering farmers. Evidence from these cases indicates that platforms that bring stakeholders together around value chains can result in new products, processes, norms and behaviours that benefit poor farmers, which could not have been achieved otherwise.     

Consistency of some tests for multivariate normality

Summary We prove that the tests of Cs?rgő (1986) and of Baringhaus and Henze (1988) for multivariate normality, both based on the empirical characteristic function, are consistent. Work partially supported by the Hungarian National Foundation for Scientific Research, Grants No. 1808/86 and 457/88.