Social Entrepreneurship: The Role of Institutions

A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions for a variety of social problems. Because society tends to view “new” solutions as “the” solution, we are concerned that SE will soon be expected to provide answers to our most pressing social ills. In this paper we call into question the ability of SE, by itself, to provide solutions on a scope necessary to address large-scale social issues. SE cannot reasonably be expected to solve social problems on a large scale for a variety of reasons. The first we label the organizational legitimacy argument. This argument leads to our second argument, the isomorphism argument. We also advance three other claims, the moral, political, and structural arguments. After making our arguments, we explore ways in which SE, in concert with other social institutions, can effectively address social ills. We also present two examples of successful ventures in which SEs partnered with governments and other institutions.     

Smoothing the payoff for efficient computation of Basket option prices

We consider the problem of pricing basket options in a multivariate Black–Scholes or Variance-Gamma model. From a numerical point of view, pricing such options corresponds to moderate and high-dimensional numerical integration problems with non-smooth integrands. Due to this lack of regularity, higher order numerical integration techniques may not be directly available, requiring the use of methods like Monte Carlo specifically designed to work for non-regular problems. We propose to use the inherent smoothing property of the density of the underlying in the above models to mollify the payoff function by means of an exact conditional expectation. The resulting conditional expectation is unbiased and yields a smooth integrand, which is amenable to the efficient use of adaptive sparse-grid cubature. Numerical examples indicate that the high-order method may perform orders of magnitude faster than Monte Carlo or Quasi Monte Carlo methods in dimensions up to 35.     

A Global Approach to Identifying Expert System Applications in Compensation Practice

This paper reports the results of a study to determine the most cost-effective expert system application for the compensation practice of a large employee benefits consulting firm. The purpose of the expert system would be to help assure quality and consistency in practice and to assist in the training of less experienced experts. The study utilized a questionnaire to solicit input from experts in several locations. The questionnaire included a comprehensive listing of firm compensation tasks. Evaluation characteristics selected for the study emphasized business-related characteristics. Because of adverse economic circumstances in the consulting firm, the decision concerning an initial expert systems application was deferred.     

Perceived human resource system strength and employee reactions toward change: Revisiting human resource's remit as change agent

Although scholars have highlighted human resource's (HR's) important role as a change agent, we know little about the extent to which HR influences the change context to foster positive employee responses and support organizational changes. This study positions perceived HR system strength as an important internal context factor that influences employees' reactions toward change. Drawing on emotion theory and social exchange theory, we analyze the mechanisms through which employees' perceptions of HR system strength lead to positive employee responses to organizational change. Data from 704 employees in a UK police force showed that employees' perceptions of HR system strength were positively related to their ability to cope with organizational change and that this relationship was simultaneously mediated by state positive affect and perceived organizational support. Moreover, our findings demonstrated that coping with organizational change was positively related to employees' change‐supportive behavior. This study is important because it broadens the remit of HR's role as change agent and provides valuable insight into how HR positively influences employee outcomes during organizational change.     

Constructing the ScratchJr programming language in the early childhood classroom

This paper seeks to contribute to the growing literature on children and computer programming by focusing on a programming language for children in Kindergarten through second grade. Sixty-two students were exposed to a 6-week curriculum using ScartchJr. They learned foundational programming concepts and applied those concepts to create personally meaningful projects using the ScratchJr programming app. This paper addresses the following research question: Which ScratchJr programming blocks do young children choose to use in their own projects after they have learned them all through a tailored programming curriculum? Data was collected in the form of the students’ combined 977 projects, and analyzed for patterns and differences across grades. This paper summarizes findings and suggests potential directions for future research. Implications for the use of ScratchJr as an introductory programming language for young children are also discussed.     

Social Entrepreneurship: The Role of Institutions

A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions for a variety of social problems. Because society tends to view “new” solutions as “the” solution, we are concerned that SE will soon be expected to provide answers to our most pressing social ills. In this paper we call into question the ability of SE, by itself, to provide solutions on a scope necessary to address large-scale social issues. SE cannot reasonably be expected to solve social problems on a large scale for a variety of reasons. The first we label the organizational legitimacy argument. This argument leads to our second argument, the isomorphism argument. We also advance three other claims, the moral, political, and structural arguments. After making our arguments, we explore ways in which SE, in concert with other social institutions, can effectively address social ills. We also present two examples of successful ventures in which SEs partnered with governments and other institutions.     

Optimal borrowing constraints and growth in a small open economy

Chinese high growth has been accompanied by government restrictions on international borrowing (capital controls). In this paper, we ask: are such restrictions a useful policy tool to facilitate growth? We provide a theory of borrowing constraints on households as a tool to correct a learning-by-doing externality. Borrowing constraints operate as a policy tool through two channels: (i) increasing labor supply and (ii) reallocating labor towards traded goods. We find that welfare gains are closest to that of the First-Best Planner allocation when the externality is not too large. We compute the sequence of optimal constraints along the growth path and show how the use of this policy tool contributes to repressed wages, current account balance, and slow real exchange rate appreciation.     

An Integrated Approach to Assessing,Managing and Monitoring Campsite Im pacts in Warren National Park,Western Australia

The social and ecological impacts of camping were examined in Warren National Park, Western Australia. The main objective was to apply an integrated approach to assessing campsite degradation and feed this information into a management and monitoring strategy for campsites in the park. Biophysical data were used to establish a campsite profile, providing baseline information that enabled comparison of heavy-use formal campsites with low-use informal campsites. High-use formal campsites were more severely impacted than the low-use, informal campsites. Formal sites were also larger, had experienced more tree damage and erosion, had greater soil compaction, less vegetation cover and tree seedlings, less coarse woody debris, higher riverbank degradation and more walk trails radiating from the campsite. Additionally, the low-use, informal sites had also been degraded by recreation use. Potential indicators were identified, using a social survey that enabled identification of the standards of social and resource conditions in the Warren National Park. Desired conditions were then compared to existing conditions at the campsites and relevant managerial preferences acceptable to visitors were identified in the social survey. Most of the management preferences were considered very or extremely important influences on the quality of the visitor experience.     

Fast Ninomiya–Victoir calibration of the double-mean-reverting model

Abstract

We consider the three-factor double mean reverting (DMR) option pricing model of Gatheral [Consistent Modelling of SPX and VIX Options, 2008], a model which can be successfully calibrated to both VIX options and SPX options simultaneously. One drawback of this model is that calibration may be slow because no closed form solution for European options exists. In this paper, we apply modified versions of the second-order Monte Carlo scheme of Ninomiya and Victoir [Appl. Math. Finance, 2008, 15, 107–121], and compare these to the Euler–Maruyama scheme with full truncation of Lord et al. [Quant. Finance, 2010, 10(2), 177–194], demonstrating on the one hand that fast calibration of the DMR model is practical, and on the other that suitably modified Ninomiya–Victoir schemes are applicable to the simulation of much more complicated time-homogeneous models than may have been thought previously.     

High‐Growth Women’s Entrepreneurship: Fueling Social and Economic Development

High‐growth firms, often referred to as “gazelles,” are equated with entrepreneurial success and celebrated as the key to growing economies, and women’s entrepreneurship is a vehicle of economic and social development. This special issue publishes papers that address the general lack of research on high‐growth women’s entrepreneurship. In this introduction paper, we offer an adapted framework for the factors driving high growth across multiple levels: individual (entrepreneur and entrepreneurial team characteristics), venture (strategy, organizational structures, and systems), resources, location, and environment. We also introduce the papers in this special issue and present an overview of the contributions to this issue.