Terms of trade risk with partial labor mobility

We examine the welfare consequences of terms-of-trade risk in a small open economy in which it is costly for workers to move between sectors. Relocation costs lead to partial labor mobility, sectoral wage gaps and income risk exceeding that of an economy in which relocation is costless. Using observed wage differentials and standard values for volatility and preferences, we find that the welfare cost of partial labor mobility alone is unlikely to be very large, even in the absence of self-insurance arrangements. In addition, modest consumption substitution elasticities significantly reduce these welfare costs.     

Seven challenges to combining human and automated service

We introduce this special issue by addressing seven key challenges associated with managing hybrid human-automated service systems. These consist of the following:

• 1 What strategic and tactical issues arise when managing hybrid service systems?
• 2 How should the core “value proposition” be set?
• 3 What special considerations arise in the design and implementation phases?
• 4 How can service delivery be managed to identify systemic problems and to address service breakdowns?
• 5 How can communications with clients improve the functioning of service systems?
• 6 What performance measures should be used to monitor process, outputs, client perceptions, and financial outcomes?
• 7 How can we coordinate the various interdisciplinary activities needed to address the previous six issues?

We consider these challenges after first characterizing the historical evolution of service delivery, reviewing some of the literature in the administrative sciences, and proposing a conceptual framework. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.     

Ethics and Economics in International Business Education: A Comparison of Kuwaiti and U.S. Students Using an Ultimatum Game Scenario

In the past 20 years a body of research in behavioral and experimental economics has challenged classical economic theory. Yet, this body of research seems relatively unknown in business education. One behavioral test with implications for international business education has been the use of ultimatum games, which has more recently expanded to cross-cultural studies. Yet, virtually no cross-cultural studies have been conducted for subjects in Middle Eastern countries. One of the central findings from ultimatum game research and other variations is that individuals place a high value on fairness in transactions, a fundamentally ethical concept. This article reports a preliminary study of Kuwaiti and U.S. business students. Results are consistent with previous studies, showing Kuwaiti subjects to be in line with subjects from developed economies. Discussion includes the implications for management and business educators.     

Intercollegiate Athletics as an Institutional Fundraising Tool: An Exploratory Donor-Based View

Previous research has indicated that intercollegiate athletics programs may be successful at attracting new donors to higher education institutions. Research has also shown that major donors who support both athletic and academic programs at an institution give more total dollars to the institution than other donors and are retained at higher rates. Through 65 in-depth interviews with donors making gifts to both athletic and academic programs at NCAA FBS (top athletic division) institutions, this exploratory research seeks to understand how intercollegiate programs influence donor decisions. Donors were questioned as to their motives for giving, specific changes in their historical giving patterns, and their future giving intentions. Several consistent themes emerged from donor interviews that provide insight into previous empirical findings and direction for both fundraising practice and future research.     

Theoretical Perspectives on Corporate Social and Environmental Disclosure: Evidence From China

Using a data set of top 56 corporate social and environmental reporting (CSER) disclosing firms with 112 observations on the H-share and Red-chip lists of the Hong Kong Stock Exchange, results suggest that charitable donations, firm size, and the Songhua River incident response are positively related to the CSER disclosure, whereas debt–equity ratio, profit margin, and firm age revealed counterdirectional relationships. Other variables including media attention and market risk were found to have no impact. Findings imply that the Chinese government and its agencies need to prescribe CSER guidelines and make them mandatory for listed firms.     

Consumers’ Intent: In the Organic Food Market

ABSTRACT

This paper examines the determinants that influence consumers' intention to purchase organic products. Ajzen's theory of planned behaviour (TPB) provides the conceptual framework of the research and the appropriateness of the theory is tested. A survey of 144 consumers was used to determine the beliefs which determine consumers’ intent to purchase organic food. Furthermore, attitudes, subjective norm, and perceived behavioral control were examined to determine whether they affect consumers’ intention to make organic products purchases. The findings offer considerable support for the robustness of the TPB in explaining intention in the sample. In addition, empirical evidence suggest that price, availability of organic products, product information and the subjective opinions of others are important determinants of consumers intent to buy organic products. The results are consistent with previous research.     

Creative Strategies in Highly Creative Domestic and International Television Advertising

The author gives an ITV Company view of the research environment of the eighties.