Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective

Despite environmental sustainability being identified as one of the key drivers of innovation, extant literature lacks a theoretically sound and empirically testable framework that can provide specific insights into green product innovation from a capability perspective. This study develops a theoretical framework from a sustainability‐oriented dynamic capability (SODC) perspective. We conceive SODCs as consisting of three underlying processes (external resource integration, internal resource integration, and resource building and reconfiguration) that influence the change/renewal of sustainability‐oriented ordinary capabilities (SOOCs) (green innovation capability and eco‐design capability). This study answers two key questions: which SODCs are needed to develop green innovation and eco‐design capabilities? Which of these capabilities lead to better market performance of green products? We test a structural model linking SODCs to market performance in 189 Italian manufacturing firms. First, we find that the nature of the SODC–performance link (direct or indirect) depends on the SODC type. Specifically, resource building and reconfiguration is the only SODC with a direct effect on market performance. Second, all three types of SODC affect the eco‐design capability, which mediates the link between SODCs and market performance. Third, we find that external resource integration is the only SODC affecting the green innovation capability, which mediates the link between external resource integration and market performance. Resource building and reconfiguration is the SODC with the overall (direct and indirect) highest impact on market performance. This study, among the first to consider capabilities for green product innovation under a dynamic capability perspective, provides implications for scholars, managers and policy makers. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Improving Firm Environmental Performance and Reputation: The Role of Employee Green Teams

This paper examines the link between a firm's organization environmental management capability, represented by the development of green teams made up of employees, and its performance. In particular, two categories of firm performance will be analysed: environmental performance and environmental reputation. This link has been investigated in a sample made of the largest publicly traded US companies. Data about green teams have been collected through the content analysis of firm environmental/sustainability/corporate social responsibility reports and/or their websites, whereas data about environmental performance and reputation are those reported in the US 500 Newsweek's 2010 Green Ranking. Regression analysis results show that the creation of employee green teams positively affects both environmental performance and environmental reputation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

The Consumption/Wealth and Book/Market Ratios in a Dynamic Asset Pricing Contex

This paper addresses new insights into the predictability of financial returns. In particular, we analyze two aspects of the controversial forecasting literature. On the one hand, we demonstrate a positive and contemporaneous link between aggregate book/market and consumption/wealth ratios. On the other hand, we show that real estate and human capital, as the present value of all future salaries, are key components of the consumption/wealth ratio in Spain. Specifically, we find that the cointegrating residuals of consumption, asset holdings, real estate holdings, and our measure of human capital provide a better forecast of future returns than does the standard proxy of the consumption/wealth ratio. This result is important because it clarifies the importance of country-specific components of wealth for cases in which the consumption/wealth ratio is employed as an instrument in conditional asset pricing models.Belén Nieto: Financial support from the Ministerio de Ciencia y Tecnología grant SEJ2005-09372 is gratefully acknowledged.Rosa Rodríguez: Financial support from the Ministerio de Ciencia y Tecnología grant SEC2003-06457 is gratefully acknowledged.     

Breaking the law when others do: A model of law enforcement with neighborhood externalities

A standard assumption in the economics of law enforcement is that the probability of a violator being punished depends only on the resources devoted to enforcement. However, it is often true that the productivity of enforcement resources decreases with the number of violators. In this paper, an individual who violates the law provides a positive externality for other offenders because the probability of being punished decreases with the number of individuals violating the law. This externality explains the existence of correlation between individuals’ decisions to break a law. The model evaluates the implications when determining the socially optimal enforcement expenditure, focusing specifically on the case of neighborhood crime. In particular, using a parametrized functional form, I show that neighborhood externalities will enhance or impede enforcement, depending on the crime rate.     

The logical status of risk – to burnish or to dull

Presented here is an elaboration of the fundamental features of the meaning of risk. It distinguishes between analytic approaches grounded in realism and postmodern (including constructionist) epistemologies and the presuppositions of each. It argues that attempts to fuse the ontology of risk with epistemological considerations into a common definition is both internally contradictory and a weak foundation for a theoretically justified definition of risk. In place of a fused definition of risk, it re‐affirms a definition risk as a state of the world, independent of percipient actors.     

How Campanian Small and Medium Enterprises (SMEs) Can Compete in the Global Agro-Food Industry

Importance of the agro-food industry in Italy and in Campania led us to investigate industry structure and small and medium enterprises' (SMEs) strategies for competing in the global scenario. We first analyzed the relevance of the Campanian agro-food system. Then we presented the results of face-to-face interviews to some SMEs. Through the interviews, we highlighted the SME value chain structures and their strategies to face global challenges. Most of the Campanian SMEs internationalize their activity by exporting their products abroad. Firms export in markets oriented to a high level of product quality—the main factor of Campanian agro-food SMEs' competitive advantage.     

The Use of Metaphor in the Exploration of the Brand Concept

The use of metaphor in research and in marketing is discussed. A typology is presented for the structure of the use of metaphor in understanding the brand concept. Three underpinning or ‘root’ metaphors are identified together with fourteen associated branch or submetaphors. The three root metaphors are: brand as diferentiating mark, brand as person and brand as asset. A number of issues surrounding the use of metaphor in the literature on branding are identified. These include the mixing of metaphors and attempts to treat metaphors as if they are terms or constructs capable of separate definition, instead of devices by which we can understand more about the brand concept. Certain metaphors, such as brand loyalty, have become terms and have then taken on a separate meaning from the original entity they were meant to illuminate. An emergent root metaphor, brand as role, is identified as having potential to develop a broader understanding of the brand concept.

A life stage model is derived to explain how the role and use of individual metaphors evolves or changes over their life. Metaphors may pass through as many as four life stages: creation, when the metaphor is first used; a second stage in which the metaphor may become dormant; a life stage when the metaphor is at its most active; and a death stage when the metaphor becomes a term.     

The importance of the Logistics Performance Index in international trade

Logistics and transport increasingly play a pivotal role in international trade relations. The Logistics Performance Index (LPI) analyses differences between countries in terms of customs procedures, logistics costs and the quality of the infrastructure for overland and maritime transport. The aim of this article is to analyse the impact that each of these components has on trade in emerging economies using a gravity model. Furthermore, the study also attempts to detect possible advances in logistics in developing countries, which are grouped into five regions (Africa, South America, Far East, Middle East and Eastern Europe) by comparing the first LPI data published in 2007 with the most recent data, released in 2012. The results obtained reveal that improvements in any of the components of the LPI can lead to significant growth in a country’s trade flows. Specifically, LPI components are becoming increasingly important for international trade in many countries in Africa, South America and Eastern Europe.     

Bayesian prior elicitation in DSGE models: Macro- vs micropriors

Bayesian approaches to the estimation of DSGE models are becoming increasingly popular. Prior knowledge is normally formalized either directly on deep parameters' values (‘microprior’) or indirectly, on macroeconomic indicators, e.g. moments of observable variables (‘macroprior’). We introduce a non-parametric macroprior which is elicited from impulse response functions and assess its performance in shaping posterior estimates. We find that using a macroprior can lead to substantially different posterior estimates. We probe into the details of our result, showing that model misspecification is likely to be responsible of that. In addition, we assess to what extent the use of macropriors is impaired by the need of calibrating some hyperparameters.