Identifying New Product Successes in China

To examine the generalizability of the work of Cooper regarding the correlates of new product success and failure, Mark Parry and Michael Song surveyed new product development managers at 129 state-owned enterprises in the People's Republic of China. Their analysis of 258 reported product successes and failures indicated that relative product advantage and the acquisition of marketing information were highly correlated with new product success, just as in Canada. In addition, several factors not significantly correlated with success in Canadian firms emerged as significant correlates of success in the PRC. These included the level of competitive activity, the timing of the product launch, and the level of proficiency in executing activities in the early stages of the product development process.     

Obtaining collaboration benefits: the role of collaboration-specific investment and absorptive capacity in China

This study examines the role of collaboration-specific investment and absorptive capacity on the attainment of interorganizational collaboration benefits. Grounded in the extended resource-based view, and using survey data from Chinese executives, we study the driver for, and test the impacts of, collaboration-specific investment and organizational learning on collaboration performance. Our findings indicate that resource similarity between the collaborative partners affects the level of collaboration-specific investment and learning, and demonstrate an approach that firms can use to obtain both abnormal common and private benefits from participation in an interorganizational collaboration. Specifically, the findings suggest that collaboration-specific investment has a direct effect on the enhancement of absorptive capacity and attainment of common and private collaboration benefits. Furthermore, due to the direct effect of absorptive capacity on attainment of collaboration benefits, commitment of collaboration-specific investment has an indirect effect on the attainment of common and private collaboration benefits. This study is the first to apply both the competence-capability framework and extended resource-based view to study interorganizational collaboration. In fact, this study aims to determine mechanisms for a collaboration-participating firm to obtain more benefit, whether common or private. Our findings provide support for the importance of learning capability as a factor in the acquisition of collaboration benefits.     

Theorizing Financial Crimes as Moral Actions

Abstract

The paper maintains that all acts of financial crimes can be explained within a general theory of moral action and analyzed as such. In this regard, the paper presents such a theory – Situational Action Theory (SAT) – and argues that acts of financial crimes result from a perception-choice process involving rational deliberation and experimental habituation, themselves being the outcomes of interactions between individuals and their environments. To examine this argument, the paper draws on two recent high-profile fraud cases to critically discuss the extent to which these crimes should be meaningfully and innovatively analyzed as moral actions and the moral context in which they occur. The findings indicate that the feature most relevant to a criminogenic is its moral context in relation to the opportunities and frictions that it generates. As such, environmental factors along with psychosocial processes of moral education become particularly important in the explanation of why certain moral contexts emerge in particular kinds of settings at a particular point in time. In this regard, SAT can be used as a powerful overarching framework to gain a more comprehensive understanding of peoples’ choice processes to breach moral rules and devise effective crime prevention strategies to combat fraud.     

The Evolution of Health Insurer Costs in Massachusetts, 2010–2012

We analyze the evolution of health insurer costs in Massachusetts between 2010 and 2012, paying particular attention to changes in the composition of enrollees. This was a period in which Health Maintenance Organizations (HMOs) increasingly used physician cost control incentives but Preferred Provider Organizations (PPOs) did not. We show that cost growth and its components cannot be understood without accounting for (1) consumers’ switching between plans, and (2) differences in cost characteristics between new entrants and those leaving the market. New entrants are markedly less costly than those leaving (and their costs fall after their entering year), so cost growth of continuing enrollees in a plan is significantly higher than average per-member cost growth. Relatively high-cost HMO members switch to PPOs while low-cost PPO members switch to HMOs, so the impact of cost control incentives on HMO costs is likely different from their impact on market-wide insurer costs.     

Personal Attachment to the Union in Small Bargaining Units

Union member attachment research has generally examined large unions organizing large employers. The present study presents a conceptual model and related data concerning various aspects of the union attachment expressed by individuals in small bargaining units. The results show differences among individuals in commitment based on their union experiences and demographic characteristics. Résumé Les études traitant de la loyatué qu'éprouvent les membres envers leur syndicats examinent généralement des syndicats importants au sein d'entreprises de taille. La présente étude offre un modèle conceptuel et les données relatives aux divers aspects de la loyauté exprimée par des individus appartenant à de petites unités de négociations. Les résultats démontrent les différences de loyauté chez les membres selon leur experience syndicale et les caractéristiques démographiques.     

ECONOMIC EFFECTIVENESS OF BRAND ADVERTISING PROGRAMMES FOR U.S. ORANGE JUICE IN THE EUROPEAN MARKET: AN ERROR COMPONENT ANALYSIS

An econometric model is used to measure the impact of the Three-Party Programme on European demand for U.S. orange juice. The results show that the programme has helped expand the demand for orange juice in European countries and, from the viewpoint of the U.S. citrus industry, is an economically preferred way of generating additional exports compared with using price reductions to achieve additional sales.     

Social Interaction Effects in Disability Pension Participation: Evidence from Plant Downsizing*

We estimate the magnitude of social interaction effects in disability pension participation among older workers in Norway. The problem of omitted variable bias is addressed using the exposure of an individual's neighbors to plant‐downsizing events as an instrument for the disability entry rate among the individual's previously employed neighbors. Our instrumental variable (IV) estimates suggest that an increase of one percentage point in the participation rate of previously employed neighbors increased the subsequent four‐year entry rate of older workers by about 0.4 percentage points. Numerous robustness and specification tests appear to support the validity of the identifying assumption in our IV strategy.     

On Education and Democratic Preferences

We make the point that preferences for democracy are positively correlated with level of education. This correlation is robust even after controlling for a range of personal characteristics, including country of residence, income, age, or using different definitions of preferences for democracy or using instrumental variables. Interestingly, the results hold across countries with different level of democracy. We use data from World Values Surveys and show that our results are consistent with a simple theoretical model in which education makes political accountability easier.     

Institutional framing and perceptions of fairness

This paper's goal is to construct a positive theory of economic fairness. Using the theoretical schema developed by Hurwicz and others, the paper makes precise the notions of an “institution,” “fairness fraiming,” and “institutional framing.” Four fairness propositions yield an important corollary: the economic environment, the operative institution and history give meaning to the often used FORMAL PRINCIPLE OF DISTRIBUTIVE JUSTICE (“equals should be treated equally, and unequals unequellay, in proportion to relevant similarities and differences”). We support these four propositions and corollary by an analysis of laboratory, survey, and anecdotal evidence. Finally we describe a number of areas for future research. The authors would like to thank Allen Buchanan, James Buchanan, Joel Feinberg, Elizabeth Hoffman, David Schmitz, Linda Schnabel Stizer, Vernon Smith, Richard Wagner, the participants in the Aspen Institute's Conference on “Local Justice and Fair Allocation”, the members of the Industrial Organization Workshop of the Department of Economics at the University of Arizona, and panel participants at the Public Choice Society Meeting for their help and comments at various stages of this paper's preparation. Responsibility for errors is the authors' alone.     

Towards Trade Equalisation: A Network Perspective on Trade and Income Convergence Across the Twentieth Century

An enduring dynamic of the twentieth century is the dramatic expansion of global trade with increased partners, goods, frequency and volumes. Most trade explanations such as the Heckscher–Ohlin, new trade theory, gravity models, and Ricardo and Sraffa focus on how bilateral import and export volumes and intermediate input goods are driven by decreased financial and information transaction costs. Extending work on trade flows and economic development, we derive several network measures of degree, betweenness and eigenvector centrality from dyadic trade flows from 1960 to 2009. We then empirically explore the interactive effects of trade connectivity, economic production and stages of development on income convergence and trade equalisation. We empirically find clear patterns towards a new phenomenon, both sigma levels and beta rates trade convergence and equalisation for our entire sample. Visualising sigma and beta convergence for seven major trading nations from 1920 to 2010, we believe offers new insights into economic development theory if only beginning to loosen the knot of trade, growth and globalisation.