Cooperation versus competition in product innovation

This paper analyzes the optimal antitrust policy in the context of a patent race. In a simplified model, we identify the conditions under which allowing cooperation yields greater welfare than imposing competition. In view of our results, we discuss, critically, the current European policy towards R&D cooperation.     

Investment cash flow sensitivity and financial constraint: a cluster analysis approach

This article sheds light on the mixed empirical evidence concerning financial constraint and investment sensitivity to cash flow. The literature suggests that measuring financial constraint is far from straightforward, and we therefore propose a cluster analysis procedure to identify unambiguous groups of constrained firms. We found the investment results to be highly sensitive to cash flow for financial constraint firms. Moreover, in line with previous research, our results showed that the traditional criteria used to identify financially constrained firms led to ambiguous interpretations. Overall, our results propose that the cluster analysis can be used to encompass the various single-criterion approaches, thereby providing a finer measurement of the financial constraint construct and deeper insight into the relationship between investment sensitivity to cash flow and financial constraint.     

Proximity,networking and knowledge production in Europe: What lessons for innovation policy?

This paper aims at investigating the role of different types of proximity on the technological activity of a region within the context of a knowledge production function, where R&D expenditure and human capital are the main internal inputs. We thus assess to what extent the creation of new ideas in a certain region is enhanced by knowledge flows coming from proximate regions. In particular, we examine in detail different kinds of proximity by combining the usual geographical dimension with the institutional, technological, social and organizational proximity. The analysis is implemented for an ample dataset referring to 276 regions in 29 European countries (EU27 plus Norway, Switzerland) over the last decade. Results show that human capital and R&D are clearly essential for innovative activity with the former being much more effective in driving the production of knowledge. As for the proximity and network effects, we find that technological proximity outperforms the geographic one, whilst a limited role is played by social and organizational networks. As a result, the first policy message is that European regions still need to focus on policies aimed at increasing the endowments of well-educated labour force and therefore their knowledge base. Furthermore, we need innovation policies based on each region's specific innovation potential, due to the existing differences in geographical, cognitive, institutional, social and organizational structures and networks.     

A simple solution for sticky cap and sticky floor

We show an analytical approach to sticky cap and sticky floor according to the Bond Market Model, a recently introduced version of the multi-factor Gaussian Heath–Jarrow–Morton model that is particularly easy to manage and calibrate. This solution allows having a comprehensive approach even for this class of Interest Rates' exotic derivatives that are fully path-dependent.     

Nonlinearities in stochastic clocks: trades and volume as subordinators of electronic markets

This paper discusses the possibility of recovering normality of asset returns through a stochastic time change, where the appropriate economic time is determined through a simple parametric function of the cumulative number of trades and/or the cumulative volume. The existing literature argues that the re-centred cumulative number of trades could be used as the appropriate stochastic clock of the market under which asset returns are virtually Gaussian. Using tick-data for FTSE-100 futures, we show that normality is not always recovered by conditioning on the re-centred number of trades. However, it can be shown that simply extending the approach to a nonlinear function can provide a better stochastic clock of the market.     

Consumer motives for buying regional products: the REGIOSCALE

Marketing Letters - Consumers are increasingly turning towards regional products (RP). The Consumer Ethnocentric Scale (CETSCALE) has been widely used to examine consumer motives for buying...     

Managers' compassionate goals,innovation, and firm performance: an examination of mediating processes,and boundary conditions in small- and medium-sized enterprises

This study aims to examine the relationships of managers' compassionate goals with innovation and performance in small- and medium-sized enterprises (SMEs). By integrating social exchange theory with social information processing theory, we hypothesize a serial mediation model in which organizational cooperation and firm innovation sequentially mediate a positive relationship between managers' compassionate goals and firm performance. However, we predict that this positive indirect effect would occur only when managers have low self-image goals and there is a high innovation-supportive work environment. Based on survey data from a sample of 116 SMEs in France, our results provide support for our predictions. This study contributes to the literature by disclosing the mechanisms and boundary conditions of the relationship of managers' compassionate goals with SMEs' innovation and performance. Theoretical and managerial implications of this study are discussed.     

Influencers' “organic” persuasion through electronic word of mouth: A case of sincerity over brains and beauty

Despite the growing importance of influencers' word-of-mouth through audiovisual content, little is known about its effect on consumers' brand evaluation, purchase intentions, and decisions. Drawing on Ohanian's source credibility framework, we conducted two studies across different influencers, product categories, and respondents' gender and tested the hypotheses using covariance-based and partial least square structural equation modeling. Study 1 focuses on a mega-influencer of cosmetic and beauty brands and predominantly involves female respondents. The findings show that the influencer's attractiveness affects perceptions about source expertise and source trustworthiness but not brand attitude, while source expertise predicts source trustworthiness, and both mediate the effect of source attractiveness on brand attitude. In contrast, brand attitude predicts purchase intention and mediates the impact of source credibility dimensions. Study 2 focuses on various influencers of hedonic products (lifestyle, fashion, and beauty). The results confirm the influence of source attractiveness and expertise on source trustworthiness, which ultimately predicts consumer purchase decisions. This study reveals the interdependencies between different source constructs, contributing to source credibility theory. Furthermore, we show that the effect of source dimensions that are relevant in the celebrity endorsement literature, such as source attractiveness, do not directly influence consumers' intentions and decisions in the context of influencers' electronic word of mouth. Finally, the two studies confirm that only influencers perceived as honest and sincere can influence consumers' purchase decisions.     

The effect of utilitarian and hedonic motivations on mobile shopping outcomes. A cross-cultural analysis

Mobile devices are ubiquitous in the lives of modern consumers, who use them for information-seeking and purchasing activities, fostering the emergence of m-commerce. This trend has been exacerbated by the COVID-19 pandemic, which has boosted m-commerce growth in both developed and developing countries. Hence, there is a need for cross-cultural research concerning the factors affecting behavioural intentions. Drawing upon the hedonic information systems model, we measure the impact of utilitarian factors on satisfaction, repurchase intention, and eWOM through the mediation of enjoyment across two countries characterized by different stages of m-commerce readiness and culture: China and Italy. Findings suggest that the impact of utilitarian factors on satisfaction is stronger among Italian users than Chinese users. On the contrary, for Chinese users, who use their mobile phones as a primary device to shop online, the mediation effect of enjoyment on satisfaction and eWOM is stronger. With this study, we contribute to cross-cultural research in m-commerce and provide guidelines to mobile retailers operating in diverse international markets.