Finance Constraints and Firm Transition in the Informal Sector: Evidence from Indian Manufacturing

This paper focuses on the role of finance constraints in determining the lack of transition of firms in India from very small family firms, which are the predominant type of firms in the informal sector, into larger informal firms that employ non-family labour. Using a rich firm-level data-set drawn from nationally representative surveys of the Indian informal manufacturing sector, this paper tests for the role played by finance constraints in firm transition in the informal sector at the firm and district level. There is evidence that the difficulty that firms face in accessing external finance acts as a significant constraint to small firm growth in the informal sector. Looking at data from India's districts, it is found that the financial development in a given district increases the likelihood that firms in the district will make the transition from household enterprises into non-household enterprises.     

An environmental marketing system – a proposed model based on Indian experience

This paper is based on a study conducted in India on venvironmental marketing practices of Indian companies. The study was set in the backdrop of a new environmental‐friendly culture in India in the early 1990s, primarily due to the complex environmental problems encountered in different parts of the country. The increased awareness and interest shown by Indian companies in respect of environmental management and marketing was evident in the sharp increase of ISO14001 certified companies in the country. However, an important question at this context was how effectively Indian companies were practicing environmental marketing for the benefit of their customers and other stakeholders. The present paper is an attempt to trace the extent and nature of environmental marketing practice in india and to propose a model for guiding the practice. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

Constructing and Testing Alternative Versions of the Fama–French and Carhart Models in the UK

This paper constructs and tests alternative versions of the Fama–French and Carhart models for the UK market with the purpose of providing guidance for researchers interested in asset pricing and event studies. We conduct a comprehensive analysis of such models, forming risk factors using approaches advanced in the recent literature including value‐weighted factor components and various decompositions of the risk factors. We also test whether such factor models can at least explain the returns of large firms. We find that versions of the four‐factor model using decomposed and value‐weighted factor components are able to explain the cross‐section of returns in large firms or in portfolios without extreme momentum exposures. However, we do not find that risk factors are consistently and reliably priced.     

Strategic Online and Offline Retail Pricing: A Review and Research Agenda

In the increasingly complex retailing environment, more and more retailers operate in more than one channel, such as brick-and-mortar, catalogs, and online. Success in this dynamic environment relies on the strategic management and coordination of both online and offline pricing. This article provides an overview of findings from past research in both offline and online domains and presents an organizing framework, as well as an agenda to spur additional research.     

Can Quality‐Oriented Firms Develop Innovative New Products?

Research suggests that a strong focus on quality improvement can adversely affect exploration and thus the development of innovative new products. The focus on quality improvement including total quality management (TQM) has been termed quality orientation. The literature suggests that one way to reduce the adverse effect of a quality orientation on innovativeness is to adopt ambidextrous or dual organizational forms. However, dual organizational forms are cumbersome and expensive to implement. This paper argues that a less demanding structural arrangement for developing innovative products in quality‐oriented organizations involves the creation of cross‐functional teams that are explicitly encouraged to take risk and granted autonomy. In this model, the two dimensions of innovativeness—namely, novelty and appropriateness— are treated separately because quality orientation and encouragement to take risk can have differential effects on these two dimensions. A survey of 141 new product development projects reveals that quality orientation does not adversely affect product novelty in cross‐functional product development teams. However, encouragement given to cross‐functional teams to take risk leads to more novel products. On the other hand, while a quality orientation improves product appropriateness, encouragement to take risk affects it adversely. Quality orientation is able to mitigate the adverse effect of encouragement to take risk on appropriateness. But encouragement to take risk does not influence the relationship between a quality orientation and novelty. Autonomy improves the positive effect of encouragement to take risk on new product novelty but does not influence the effect of a quality orientation on novelty. Both novelty and appropriateness enhance a new product's performance, and both these dimensions of innovativeness partially mediate the effect of quality orientation and fully mediate the effect of encouragement to take risk on new product performance.     

A New Utility‐Consistent Econometric Approach to Multivariate Count Data Modeling

In the current paper, we propose a new utility‐consistent modeling framework to explicitly link a count data model with an event‐type multinomial‐choice model. The proposed framework uses a multinomial probit kernel for the event‐type choice model and introduces unobserved heterogeneity in both the count and discrete‐choice components. Additionally, this paper establishes important new results regarding the distribution of the maximum of multivariate normally distributed variables, which form the basis to embed the multinomial probit model within a joint modeling system for multivariate count data. The model is applied to analyzing out‐of‐home non‐work episodes pursued by workers, using data from the National Household Travel Survey. Copyright © 2014 John Wiley & Sons, Ltd.     

Inflation and the Dispersion of Relative Prices: A Case for 4 % Solution

Unlike earlier literature that documented positive association between inflation and the dispersion of relative prices over time, the empirical evidence from this study suggests that the relative price dispersion increases in response to the deviation of inflation from certain threshold/target level in either direction rather than inflation per se. The striking feature of the empirical evidence from United States and Japan is that the inflation rate at which the dispersion of relative prices is minimised turn out to be 4%; hence, supporting the proposal of 4% inflation target for both the countries.