Building flexibility into multi-national human resource strategy: a study of four South African multi-national enterprises

The study describes four approaches for configuring corporate HR strategy by firms from an emerging market when dealing with the integration-differentiation dilemma. Most research on strategic international HRM is on the perspective of the affiliate or discusses the degree of isomorphism between the HRM practices of the parent and affiliate. The authors apply a cross-case analysis of the cases of Nando's International, MTN International, Sasol and SABMiller, focus on the implementation of corporate HR strategies from the parent's perspective and show that MNEs differ in the scope and level of abstraction of their corporate HR strategies. It is further suggested that this is primarily due to differences in business model, the need to accommodate national culture, the type and role of organizational culture in the MNE, which impact on the level of convergence of HR management practices. In all of the cases, there is a large degree of variance in these factors.     

Forecasting realised volatility using ARFIMA and HAR models

Recent literature provides mixed empirical evidence with respect to the forecasting performance of ARFIMA and HAR models. This paper compares the forecasting performance of both models using high frequency data of 100 stocks representing 10 business sectors for the period 2000-2010. We allow for different sectors, changing market conditions, variation in the sampling frequency and forecasting horizons. For the overall sample and using the 300 sec sampling frequency, the forecasting performance of both models is indistinguishable. However, differences arise under different market regimes, forecasting horizons and sampling frequencies. ARFIMA models are superior for the crisis and pre-crisis sub-samples. HAR forecasts are less sensitive to regime change and to longer forecasting horizons. Variations in forecasting performance could also be explained using differences in the levels of persistence underlying each model.     

The Signaling Effect of Corporate Social Responsibility in Emerging Economies

What signals do firms in emerging economies send to stakeholders when they adopt corporate social responsibility (CSR) practices? We argue that in emerging economies, firms that adopt CSR practices positively signal investors that their firms have superior capabilities for filling institutional voids. From an institution-based view, we hypothesize that the institutional environment moderates the signaling effect of CSR on a firm’s financial performance. Based on a sample of firms from ten Asian emerging economies, we find a positive relationship between CSR practices and financial performance. This positive relationship is stronger in the less developed capital market than in the more developed one. The financial benefits of CSR practices are also more salient in the low information diffusion market than in the high one. We emphasize that signaling theory and the institution-based view can jointly contribute to the CSR literature.     

Improving Made-in-China Management Research

Made-in-China products have a country-of-origin image of “low cost, cheap price, but only passable quality.” What are the characteristics of Made-in- China management research? Passable (but not outstanding) quality seems to be a reasonable and accurate characterization of such research. How can the quality of Made-in-China management research be improved? I point out five common but fixable problems typically associated with such research, and offer actionable solutions to solve them. Finally, I argue that management scholars have a social responsibility to help improve China’s country-of-origin image, by pursuing scholarly excellence and not tolerating sloppiness in management research.     

Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models

In repeated choice modelling studies, it is often the case that individuals always select the status quo option. Although this pattern may reflect considered choices, they may also be the result of alternative decisions about whether to participate in the choice process at all. Alternative methods of dealing with this behaviour, each with associated implications for estimates of economic values, are presented. In particular we consider the alternative strategies of excluding such individuals from the data, using hurdle models to explicitly model this group, and propose the use of latent class models to endogenously allow for different preference structures. An advantage of the latent class approach is that the form of the non-participation need not be defined in advance. These approaches are considered using UK choice experiment data on food choices where the attributes include genetic modification of food. The latent class approach reveals the presence of two forms of non-participation in the data. This paper draws work commissioned by UK Department of Environment Food and Rural Affairs (DEFRA). The views presented in this paper are those of the authors alone and should not be regarded as those of DEFRA or of individuals within DEFRA.     

Competition Tests with a Non-Structural Model: the Panzar–Rosse Method Applied to Germany's Savings Banks

Abstract. In this paper we adopt the Panzar–Rosse approach to assess the competitive conditions in the German banking market for the period from 1993 to 2002. We suggest several improvements to the empirical application of the approach and show that frequently used empirical models that apply price rather than revenue functions lead to biased results. Using disaggregated annual data from more than 400 savings banks (Sparkassen) the empirical findings indicate monopolistic competition, the cases of monopoly and perfect competition are strongly rejected. Furthermore, small banks seem to enjoy even more market power than larger institutions.     

Resources access needs and capabilities as mediators of the relationship between VC firm size and syndication

Drawing from the resource-based view and transaction costs economics, we develop a theoretical framework to explain why small and large firms face different levels of resource access needs and resource access capabilities, which mediate the relationship between firm size and hybrid governance. Employing a sample of 317 venture capital firms, drawn across six European countries, we empirically assess our framework in the context of venture capital syndication. We estimate a path model using structural equation modeling and find, consistent with our theoretical framework, mediating effects of different types of resource access needs and resource access capabilities between VC firm size and syndication frequency. These findings advance the small business literature by highlighting the trade-offs that size imposes on firms that seek to manage their access to external resources through hybrid governance strategies.     

Managerial ties,organizational learning,and opportunity capture: A social capital perspective

From a social capital perspective, this article investigates how entrepreneurs in new ventures utilize their managerial ties (consisting of ties with other firms and ties with government) to capture opportunity. We also explore the moderating role of organizational learning (via exploratory learning and exploitative learning) in this process. Drawing on a sample of 159 new ventures, we find that ties with other firms have a stronger positive effect on opportunity capture than ties with government. We also find that organizational learning moderates the relationship between managerial ties and opportunity capture. Overall, our contributions center on an integrated view of organizational learning, social relationships, and opportunity capture.