Cultural distance and its implication for the duration of the international alliance in a high technology sector

This study examines the role of cultural distance in the duration of an international alliance in a high technology sector. The general view is that cultural distance between international partners can hamper the duration of the alliance. We propose the alternative argument that cultural distance can be a source of the alliance duration. We use cultural distance based on widely perceived five cultural dimensions (Hofstede et al., 2010). Overall, the result supports the proposition. The distance based on masculinity, uncertainty avoidance and long-term orientation tends to increase the duration of the alliance. The distance based on power distance and individualism tends to decrease the duration of the alliance. Nevertheless, the composite measure based on all five dimensions also shows a positive effect on the duration of the alliance. The study concludes that learning alliances prefer diversity of knowledge sources. Knowledge transfer is a context dependent phenomenon. The diversity of the context delays knowledge transfer. Therefore, learning alliances tend to be longer when there is a cultural distance between international partners. The article notes some implications and limitations for the future research.     

Particle filters for continuous likelihood evaluation and maximisation

In this paper, a method is introduced for approximating the likelihood for the unknown parameters of a state space model. The approximation converges to the true likelihood as the simulation size goes to infinity. In addition, the approximating likelihood is continuous as a function of the unknown parameters under rather general conditions. The approach advocated is fast and robust, and it avoids many of the pitfalls associated with current techniques based upon importance sampling. We assess the performance of the method by considering a linear state space model, comparing the results with the Kalman filter, which delivers the true likelihood. We also apply the method to a non-Gaussian state space model, the stochastic volatility model, finding that the approach is efficient and effective. Applications to continuous time finance models and latent panel data models are considered. Two different multivariate approaches are proposed. The neoclassical growth model is considered as an application.     

Distribution of product statistics from aPareto population

Summary Distributions are derived of the product of sample values, the sample geometric mean, the product of two minimum values from sample of unequal size and product ofk minimum values from sample of equal size from aPareto population. The distributions can be conveniently transformed tox ². Paper presented at the Eastern Regional meeting of the Institute of Mathematical Statistics, Upton, Long Island, New York, April 27–29, 1966. Work done when the author was on the faculty of Western Reserve University, Cleveland, Ohio, U.S.A.     

MACROECONOMIC ADJUSTMENT IN DEVELOPING COUNTRIES: A POLICY PERSPECTIVE

A comprehensive macroeconomic adjustment program is expectedto have the following objectives: a sustainable current accountposition, a stable and high rate of economic growth that wouldallow for a steady rise in per capita consumption, a reducedrate of inflation, and a manageable level of foreign debt. Thepackage designed to meet these objectives would typically includepolicy measures that simultatenously restrain aggregate demandand increase the availability of resources. These policies maybe grouped as follows: demand-management policies, structuralpolicies, exchange rate policies, and external financing policies.This article describes how these policies can be expected toachieve the goal of macroeconomic adjustment. The focus is primarilyon the theoretical and empirical links between policy instrumentsand ultimate objectives. An examination of these links is necessarybefore issues of the appropriate mix of demand-management, structural,exchange rate, and external policies, and the sequencing ofthese policies in a program, can be properly addressed.      

Product standardisation in the food service industry: post-purchase attitudes and repurchase intentions of non-Muslims after consuming halal food

In order to satisfy the Muslim market segment, many restaurant and fast food companies in Western countries have standardised their products by switching to halal. The purpose of this research is to discover the extent to which non-Muslim consumers in non-Muslim countries experience cognitive dissonance when they think about restaurants and fast food outlets having likely served them halal-produced food, and the extent to which these consumers intend to repurchase halal food. Data came from a total sample of 1097 non-Muslim consumers in Canada, Spain and the United Kingdom. The full model, with religious identity, ethnic identification and interest in animal welfare as antecedents of cognitive dissonance, explained 35% of the variance in consumers’ repurchase intentions. Our findings suggest that many non-Muslims do not have a particular issue with consuming halal food, but they may react negatively if they unintentionally consume halal food and perceive that they have been deprived of information, or worse still, deliberately deceived. The research makes a number of contributions to marketing knowledge with regard to the negative spillover effects that can result from faith-based product standardisation, and the influences of consumer interest in animal welfare and deprivation of product information on consumer behaviour.     

Forecasting value‐at‐risk in oil prices in the presence of volatility shifts

Recent evidence suggests shifts (structural breaks) in the volatility of returns causes non‐normality by significantly increasing kurtosis. In this paper, we endogenously detect significant shifts in the volatility of oil prices and incorporate this information to estimate Value‐at‐Risk (VaR) to accurately forecast large declines in oil prices. Our out‐of‐sample performance results indicate that the model, which incorporates both time varying volatility (without making any distributional assumptions) and shifts in volatility, produces more accurate VaR forecasts than several benchmark methods. We make a timely contribution as the recent more frequent occurrences of unexpected large oil price declines has gained significant attention because of its substantial impact on the financial markets and the global economy.     

Driving restrictions that work? Quito's Pico y Placa Program

Programs to reduce traffic congestion and air pollution by restricting use of motor vehicles on working days have generally not met with success, given existing studies of such programs. We conduct the first study of Quito, Ecuador's four‐year‐old Pico y Placa program and find that it has reduced ambient concentrations of carbon monoxide (CO), a pollutant primarily emitted by vehicles, by 9% to 11% during peak traffic hours. Given that ambient concentrations of CO generally track the spatial and temporal distributions of traffic, these reductions in pollution suggest similar reductions in vehicle flows. We find no significant evidence that traffic has shifted to other times of the day or week, or to other locations.     

Does Faith Matter in Mutual Funds Investing? Evidence from Saudi Arabia

This article investigates one of the most vital issues in the Islamic mutual fund literature: Are there any costs associated with investing in Islamic mutual funds? We used a unique sample of 143 Saudi mutual funds and grouped them into portfolios based on their geographical focus, Shariah compliance, and the Saudi market trend (overall, bull, bear, and the crisis period). Findings suggest there is a benefit from adhering to Shariah law in locally-focused Saudi mutual funds. However, there is a cost of this adherence in internationally-focused Saudi mutual funds. Finally, in Arab-focused Saudi mutual funds, there is neither a cost nor a benefit.     

Dual consumer–organisation identification in international alliances and partnerships: consumers’ supportive intentions towards local and foreign firms

This study investigates whether firms that are evaluating potential partners might benefit from considering how consumers view these organisations, specifically the extent to which consumer identification with local and foreign partners influences consumer satisfaction with a co-branded product and consumers’ post purchase/consumption supportive intentions towards each partner. Data came from institutions of higher education in Hong Kong and Sri Lanka that operate in collaboration with a foreign partner. A conceptual model was developed and then tested using structural equation modelling. Dual consumer–organisation identification was found to be a significant predictor of consumer satisfaction with the co-branded product and consumers’ supportive intentions towards each partner. Furthermore, the perceived identity attractiveness of each partner was significantly related to the consumers’ identification with each partner. The results suggest that organisations which indulge in collaborative arrangements with foreign firms should recognise that each partner plays a significant and distinct role in generating consumer satisfaction and positive post-purchase/consumption behaviours.