Heterogeneous Firms,Globalisation and the Distance Puzzle

Despite the strong pace of globalisation, the distance effect on trade is persistent or even growing over time (Disdier and Head, 2008). To solve this distance puzzle, we use the recently developed gravity equation estimator from Helpman et al. (2008) (HMR henceforth). Using three different data sets, we find that the distance coefficient increases over time when ordinary least squares (OLS) is used, while the non‐linear estimation of HMR leads to a decline in the distance coefficient over time. The distance puzzle, thus, arises from a growing bias of OLS estimates. The latter is explained by an increase in the importance of the bias from omitting the number of heterogeneous exporting firms relative to the bias from omitting zero trade flows. Furthermore, we show that including zero trade flows cannot solve the distance puzzle when using HMR. The HMR estimates are strongly correlated with the time pattern in freight costs reported by Hummels (2007).     

Social Capital or Ethnic Enclave Location? A Multilevel Explanation of Immigrant Business Growth

The rapid increase in migration into host countries and the growth of immigrant‐owned business enterprises has revitalized research on ethnic business. Does micro (individual)‐level social capital, or meso (group)‐level location within the ethnic enclave lead to immigrant business growth? Or do you need both? We analyze quantitative data collected from 110 Chinese restaurants in Australia, a major host country. At the micro level we find that coethnic (same ethnic group) networks are critical to the growth of an immigrant entrepreneur's business, particularly in the early years. But non‐coethnic (different ethnic group) social capital only has a positive impact on business growth for immigrant businesses outside the ethnic enclave. Our findings are relevant, not only to host‐country policymakers, but also for future immigrant business owners and ethnic community leaders trying to better understand how to promote healthy communities and sustainable economic growth. © 2015 Wiley Periodicals, Inc.     

The ethical profile of global marketing negotiators

As international trade and business opportunities grow globally, insight into trading partners’ strategies is essential. One of the major strategies that impact trading partners’ relationships is negotiation strategy employed by each partner. These strategies assume even greater importance when these strategies have ethical content. This study examines the effects of marketing executives’ preferred ethical ideologies (relativism and idealism), opportunism and Machiavellianism on their perceived appropriateness of unethical negotiation tactics. Utilizing a sample of 995 marketing executives from six countries, cluster analysis and multivariate analysis of variance revealed two types of marketing negotiators: principled and corrupt negotiators. Corrupt negotiators tend to be more Machiavellian, more relativist, more opportunistic and less idealistic than their principled counterparts. Principled negotiators tend to perceive unethical negotiation tactics less favorably than their corrupt counterparts. Implications of these results for practitioners and directions for future research are discussed.     

Is the cardholder an efficient alarm system to detect credit card incidents?

There is a growing tendency in credit card industry to increase the contribution of the smallest players, the cardholders, in the detection of card incidents. This article examines whether cardholders are efficient at detecting/communicating incidents of theft, loss or fraudulent use of their cards. The analysis focuses on whether they demonstrate enough speed of response to support a risk control subsystem by the issuer. The research follows a completely new approach showing how the issue can be handled by applying the concept of elasticity, a notion just recently exported from economics to the field of statistics by linking it with the reverse hazard rate. The issue is focused on the analysis of the characteristics of the elasticity function of the random variable that measures the delay of cardholders in reporting incidents. This study is illustrated with an application to a real data set of 1069 incidents.     

Who will make an indulgent food choice after having fulfilled their healthy eating goal?

This research considers how subjective nutrition knowledge and calorie consciousness moderate the effects of eating goals on indulgent vs. healthy consumers and their on subsequent choices. A two between‐subjects design (an eating goal invoked by a main course: healthy vs. indulgent) was conducted, where the choice of salad dressing (healthy or indulgent) was a dependent variable. Two individual traits (subjective nutrition knowledge and calorie consciousness) were considered as moderators between eating goals and food choices. The results indicated that individuals with high levels of subjective knowledge about nutrition or with a high level of consciousness about calories were more likely to choose a healthy option when their indulgent goal had been invoked. However, they were more likely to make indulgent choices when their healthy goal had been fulfilled by the main course. In contrast, for those with low levels of subjective nutrition knowledge or with a low level of consciousness about calories, food choices were not influenced by the eating goal which had been invoked. The findings could help practitioners in the food industry to develop different food combinations with which to satisfy their customers through understanding personality traits.     

Linking Unlearning with Work–Life Balance: An Initial Empirical Investigation into SMEs

The use of work–life balance (WLB) supporting cultures to provide and support the welfare of both the individuals and their families is expected to improve organizational outcomes by enabling company members to improve levels of job satisfaction and commitment to work. However, creating or introducing another culture in the company frequently generates internal problems when it conflicts with the current culture in terms of the beliefs, habits, and things managers take for granted. In this paper, we develop a framework for modeling how the unsuitable knowledge may be mitigated in order to strengthen a WLB culture. It is based on the idea that the presence of an unlearning context that fosters the updating of knowledge is likely to be essential for small and medium‐sized enterprises (SMEs) that are trying to implement a WLB culture. The research model and hypothesized relationships are empirically tested using the structural equation modeling approach, validated by factor analysis of 229 SMEs in the Spanish metal industry. Our findings show that in order to strengthen a WLB culture and thus positively influence innovation‐related outcomes, SMEs meet the challenge of developing an unlearning context to counteract the negative effects of the outdated knowledge in relevant areas and to facilitate the replacement of out‐of‐date or obsolete knowledge.     

The Moderating Effect of Perceived Effectiveness of SMEs' Marketing Function on the Network Ties—Strategic Adaptiveness Relationship

This study examines the critical role of perceived effectiveness of the Marketing function (MF) in small and medium‐sized enterprises (SMEs) in leveraging entrepreneurial network ties to improve strategic adaptiveness (SA). The study tests whether a MF perceived as effective by SMEs’ managers/owners moderates the relationship between SMEs network ties and SA required for improved performance. Findings of a moderated regression analysis on a sample of 263 Croatian SMEs indicate that network ties contribute significantly to their SA, and that a MF perceived as effective only moderates the impact of customer and competitor ties on SMEs’ SA. Research and practical implications are discussed.