Bank efficiency in the new European Union member states: Is there convergence?

We employ the stochastic frontier approach and estimate a common frontier in order to examine cost and profit efficiency in the banking systems of the ten new European Union member states over the period 1998-2003. The results indicate a generally low level of cost and an even lower level of profit efficiency, whilst we do not observe marked differences of inefficiency scores across countries. Foreign banks outperform both state-owned and domestic private-owned banks in terms of profit efficiency, though results are less clear in the case of cost efficiency. In addition, β- and σ-convergence criteria indicate some convergence in cost efficiency across the new member states, yet no convergence appears to have been achieved in terms of profit efficiency.     

The structure of wages during the economic transition in Romania

I use cross-sectional individual data from the 1994 Integrated Household Survey (IHS) of Romania to analyze the determinants of male and female wages in public and private enterprises. Using quantile regression I estimate the rate of return to education and experience at different quantiles of the wage distribution. Higher levels of education are significantly associated with higher wages for both males and females in public firms. In private firms, only college education is correlated with significantly higher wages. I also find that there are no significant differences in the returns to human capital at the median and at the upper and lower tail of the distribution of gender-specific wages in each sector. Differences in individual characteristics are found to explain the highest portion of the male–female wage differential in Romania in both sectors.     

Organisational culture in the age of the Internet: an exploratory study

Through an exploratory study of a large financial services organisation, this study finds that the idiosyncratic nature of the Internet and Internet operations point to a range of implications for both the interaction of organisational subcultures and the internal and external perceptions of organisational culture.     

R&D Subsidies versus R&D Cooperation in a Duopoly with Spillovers and Pollution

We introduce pollution, as a by‐product of production, into a non‐tournament model of R&D with spillovers. Technology policy takes the form of either R&D subsidisation or pre‐competitive R&D cooperation. We show that, when the emissions tax is exogenous, the optimal R&D subsidy can be negative, i.e. there should be a tax on R&D, depending on the extent of the appropriability problem and the degree of environmental damage. In a wide class of cases, depending on the parameter values, welfare in the case of R&D cooperation, is lower than welfare in the case of R&D subsidisation.     

Service sabotage: A study of antecedents and consequences

Although much of the existing research on employee sabotage and deviance focuses on the manufacturing sector, studies have also found evidence of deliberate employee misbehavior in a variety of service settings. In this study, the authors conceptualize and test a model of service sabotage dynamics that incorporates both the antecedents and the consequences of such behaviors. In doing so, the study contributes contemporary empirical evidence of factors associated with the deliberate sabotage of service by frontline customer-contact personnel. Using a survey-based approach, the authors collected data from 259 respondents from a sample of 1,000 respondents. The findings largely support the hypothesized antecedents of service sabotage and show that a range of individual characteristics, management control efforts, and perceived labor market conditions are linked with service sabotage. Furthermore, the analysis suggests that service sabotage behaviors are associated with individual and group rewards, effects for customers, and other performance measures. Lloyd C. Harris (Harris@Cardiff.ac.uk) (PhD, Wales) holds the Sir Julian Hodge Chair in Strategic Marketing at Cardiff Business School. His main research interests include dysfunction at work, the marketing-organizational behavior interface, market orientation, dysfunctional behavior during consumption, e-loyalty, and organizational culture. His work has been published in theJournal of Retailing, theJournal of Service Research, theJournal of Business Research, theJournal of Management Studies, theInternational Journal of Human Resource Management, and theJournal of Services Marketing. Emmanuel Ogbonna (Ogbonna@Cardiff.ac.uk) (PhD, Wales) is a professor of management and organizational behavior at Cardiff Business School. His major research interests are in the areas of organizational strategy, culture, human resource management, and the U.K. food retail sector. His other research interests cover all aspects of race discrimination on government-sponsored training programs. His work has been published in theJournal of Business Research, theJournal of Service Research, theJournal of Management Studies, theBritish Journal of Industrial Relations, andWork, Employment and Society. He serves on the review board of several international journals.     

SAVINGS IN THE ABSENCE OF FUNCTIONING PROPERTY RIGHTS1

Nigeria is a prime example of a developing country with ill‐defined property rights. However, people still manage to save, mostly through traditional and informal means, facilitated by strong family and community institutions. This paper argues that the government should concentrate on strengthening these institutions rather than weakening them by imposing an inappropriate, Western‐style, formal pensions system on the country.     

Can information and communication technologies be pro-poor?

There is over 20 years of accumulated cross-country evidence on the link between telecommunications provision and economic growth. Looking at micro-studies from a range of countries including Bangladesh, Botswana and Zimbabwe, there is also some evidence that provision of telephony has a dramatic effect on the income and quality of life of the rural poor. This paper examines cross-country evidence to discover if teledensity (the number of telephones per capita) has a pro-poor growth impact—fostering increased average incomes while reducing inequality. It also examines the impact of telecommunications rollout on quality of life variables including infant mortality and literacy. It finds that, historically, telecommunications rollout has had a positive and significant impact on increasing inequality and little impact on quality of life variables. A reason for this is tested and preliminarily confirmed that rollout has (historically) only benefited the wealthy. The paper will then turn to emerging evidence on the role of the Internet in poverty relief and statistics on the access gap in provision between rich and poor, suggesting that this new ICT will also be a force for income divergence. Using the results of the cross-country analysis on telecommunications, the paper will conclude with a discussion of potential policy responses (such as sector reform and universal access programs) to turn telecommunications from a source of growth that also increases inequality to a source of growth that diminishes it.