Effect of modern rice varieties and irrigation on household income distribution in Nepalese villages

Since high-yielding modern rice varieties (MVs) are adopted only in favorable production environments, significant regional productivity differentials have emerged in Nepal. This study explores the distributional consequences of such differential MV adoption based on an intensive survey of favorable and unfavorable villages. We found that MV adoption increased returns to land but decreased family labor earnings from rice production, as it facilitated the substitution of hired for family labor. As a result, the differential MV adoption did not significantly worsen the household income distribution according to the results of the counterfactual Gini decomposition analysis.     

Status and financial performance of organic vegetable farming in northeast Thailand

In line with the national sustainable agriculture development policy of the Government of Thailand, organic vegetable farming (OVF) promotion projects have been implemented in several provinces of the country. Based on data collected through a questionnaire survey of 172 sample vegetable farmers in Mahasarakham Province of northeast Thailand, this study firstly assessed the status of OVF and then, analyzed the financial performance of three main vegetables cultivated, namely: morning glory, green onion and Chinese kale. Finally, sensitivity analyses of the financial performances for all three vegetables were conducted under four assumed scenarios with respect to price of synthetic fertilizers and pesticides, and yield and price of organic vegetables. The findings of the analysis on the status of OVF revealed that organic vegetable farms accounted for very small percentage of the total area used for all vegetables in the study area. Results of the financial analysis also showed that OVF was much less financially attractive than conventional vegetable farming due to low yield which usually does not come with premium price of the vegetables. Still farmers are growing organic vegetables on small scale primarily for household consumption. The findings of the sensitivity analyses indicated that the removal of direct or indirect subsidies for synthetic fertilizers and pesticides, and appreciation in the yield and price of organic vegetables can enhance the financial performance of OVF. In view of the possible rejection of radical policies that encourage OVF by discouraging conventional vegetable farming, this study suggests appropriate policy measures that could directly provide incentives for organic vegetable production and consumption.     

Enterprise Risk Management and the Financial Reporting Process: The Experiences of Audit Committee Members,CFOs, and External Auditors

The recent financial crisis has brought to the forefront the need for companies to effectively manage their risks. In this regard, one approach that has gained prominence is enterprise risk management (ERM). Importantly, little is known about the link between ERM and the financial reporting process. This link is critical, because it is imperative that financial reporting adequately depicts the financial status (e.g., valuations, estimates) and associated risks of a company as revealed by ERM. Additionally, from an auditing perspective, ERM affects the risks of misstatement, which should impact audit planning. Accordingly, the objective of this study is to examine the experiences of audit partners, CFOs, and audit committee (AC) members (“the governance triad”) on the link between ERM and the financial reporting process. To determine whether members of the governance triad focus on monitoring, strategy, or both, we also examine their definition of and experiences with ERM with respect to agency and/or resource dependence theory. To address these issues, we conduct semistructured interviews of experienced individuals that form the governance triads from 11 public companies. There are three major findings from our study. First, importantly, all three types of participants see a strong link between ERM and the financial reporting process. Second, despite recognition of the broad nature of ERM, the predominant experiences of the actual roles played by triad members center on agency theory, while resource dependence may be relatively underemphasized by all triad members. Finally, CFOs and AC members indicate that auditors may be especially underutilizing ERM in the audit process, suggesting an “expectations gap.”     

Capability hierarchy in electronic procurement and procurement process performance: An empirical analysis

This paper examines the interrelationship between two hierarchically structured functional capabilities pertinent in the organizational procurement process, and the impact of these capabilities on procurement process performance. These functional capabilities operate at different levels in an organization's procurement process. We draw upon resource- and knowledge-based views of the firm to theorize that in this hierarchy of information technology-enabled procurement capabilities, the higher-level capability – procurement integration competence – enables firms to develop and deploy a lower-level capability – digital procurement competence. Further, we theorize that the lower-level capability impacts procurement process performance directly and completely mediates the relationship between higher-level capability and performance. Thus, although performance is impacted directly only by the lower-level capability, the higher-level capability facilitates the development and use of the lower-level capability. Our research model is tested using survey data from a large sample of 412 manufacturing firms. The results provide strong support for the proposed research model. In particular, we find that as hypothesized, the impact of procurement integration competence on performance is completely mediated by digital procurement competence. Our results suggest that when examined at the procurement process level, the impact of higher-level capabilities may be manifested completely through the lower-level capabilities. Theoretical and practical implications of the research are discussed.     

Experiments on strategic choices and markets

Much of experimental research in marketing has focused on individual choices. Yet in many contexts, the outcomes of one’s choices depend on the choices of others. Furthermore, the results obtained in individual decision making context may not be applicable to these strategic choices. In this paper, we discuss three avenues for further advancing our understanding of strategic choices. First, there is a need to develop theories about how people learn to play strategic games. Second, there is an opportunity to enrich standard economic models of strategic behavior by allowing for different types of bounded rationality and by relaxing assumptions about utility formulation. These new models can help us to more accurately predict strategic choices. Finally, future research can improve marketing practice by designing better mechanisms and validating them using experiments.     

Factors influencing mentors’ learning from mentoring relationships: insights from a serial mediation study in India

The primary objective of the present study is to understand mentoring relationships in Indian organizations from the mentors’ perspective. In particular, the study examines whether the learning goal orientation of a mentor can significantly influence the mentoring process and outcomes for the mentor in a mentoring relationship. Two hundred and thirty‐six participants were selected using purposive sampling. Data were gathered using standardized questionnaires. Mediating effects were investigated using the PROCESS model by Hayes, Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression Based Approach. The results indicate high levels of support for several hypotheses examining the direct effects of learning goal orientation on willingness to engage by the mentor, mentoring functions provided and mentor outcomes (personal learning and self enhancement). The overall findings of the study suggest that mentors are not only ‘providers’ but also ‘receivers of learning’. Limitations and directions for future research are also discussed in the paper.     

Access to information and international portfolio allocation

We examine whether foreign equity holdings of portfolio investors depend on the level of information accessibility between the investors’ home and host countries. Using a comprehensive data set, alternative measures of information accessibility and robust analytical techniques, we show that differences in access to cross-country information significantly influence investors’ portfolio allocation decisions. Furthermore, the results suggest that for a given level of access to information, investors prefer to invest more in countries with a higher quality of legal/macro-institutions. Finally, the findings also confirm that the implications of information accessibility are more pronounced when markets are turbulent.     

To Formalize or Not to Formalize: Women Entrepreneurs’ Sensemaking of Business Registration in the Context of Nepal

Journal of Business Ethics - Despite the depiction of decisions to formalize informal firms as rational and ethical, many entrepreneurs in developing countries continue to operate informally...