A Model of Value Creation: Strategic View

Value creation has long been hailed as the major objective of business firms by many management researchers. Some authors state that a firm must create value for its shareholders; some insist that value must be created not just for shareholders but also for all stakeholders. However, most discussions of value creation do not address an important question: "For whom the value is created?" The purpose of this paper is to take a first step to fill this void and propose a model of value creation along three dimensions: financial, nonfinancial, and time. It is hoped that the model will contribute to a better understanding of how strategic and operational decisions of managers may create value for some stakeholders while destroying it for others.     

Skill compression, wage differentials, and employment: Germany vs the US

Germany's more compressed wage structure is widely viewed asthe main cause of the German-US difference in employment andunemployment, but part of the compression is due to Germanyhaving a narrower distribution of skills than the US. Even adjustedfor skills, however, we find that Germany has a more compressedwage distribution than the US. But relatively little of theUS-German employment difference can be attributed to the compressedwage distribution. We find that jobless Germans have nearlythe same skills as employed Germans and look more like averageAmericans than like low skilled Americans, which runs counterto the wage compression hypothesis. Given these patterns, thepay and employment experience of low skilled Americans is apoor counterfactual for assessing how reductions in pay mightaffect jobless Germans.     

Attitudes toward Use of Advertising and Various Media Practices by Physicians

Advertising by physicians is a relatively recent phenomenon. The purposes of this study were to determine (a) consumers’ attitudes toward advertising by physicians; (b) whether certain potential consumer demographic variables account for any significant difference in attitudes toward physicians who advertise; and (c) which media consumers feel are appropriate for physicians’ advertising. The intent was to discover information that would be useful to physicians in planning promotional strategies and improving the quality of their advertising. The study seems to confirm the belief of many professionals that advertising and promotion clearly have a place in the future of health care services.     

FOREIGN TRADE AND THE EXCHANGE RATE IN BOTSWANA

Botswana is a success story of exceptional economic performance, sound development management, and good governance. A great deal of that success can be attributed to the country's export performance and the avoidance of the 'Dutch Disease' syndrome that has plagued other natural resource based African countries. This article documents and analyzes Botswana's trade and exchange rate relationship, during the past two decades, in the context of the country's economic performance, and examines the related issue of the value of the country's currency to determine whether it is overvalued or undervalued.     

Stakeholder-Sensitive Business Ethics Teaching

Well-established, well-intended and well-designed business ethics teaching can still have little effect. This is not surprising, as long as business ethics does not undertake a business-school-wide dialogue about goals and obstacles, not least as an example of stakeholder participation. The article elaborates such views in a systematic fashion and formulates a list of thirteen premises and nine recommendations in thesis format.