Modularity in making: simplifying solution space for user innovation

An increasingly popular form of open innovation in the digital age is ‘making,’ where users innovate across multiple disciplines and make products that meet their needs, using mechanical, electronic, and digital components. These users have at their disposal, a wide solution space for innovation through various modular toolkits enabled by digital‐age technologies. This study explores and outlines how these users simplify this wide solution space to innovate and make tangible products. Following a modularity theory perspective, it draws on case studies of users and their innovations: (1) Users with initial prototype product designs based on the Internet of things (IoT) from a maker event and (2) users with established product designs from the online community platform Thingiverse. The studies found that users reused the design in the form of existing off‐the‐shelf products and utilized digital fabrication and low‐cost electronics hardware as a ‘glue’ to create physical and informational interfaces wherever needed, enabling bottom‐up modularity. They iteratively refined their innovations, gradually replacing re‐used designs with own integrated designs, reducing modularity, and reducing wastage. The study contributes to open innovation and modularity with implications on the design of products and toolkits enabled by the digital age.     

Smile and default: the role of stochastic volatility and interest rates in counterparty credit risk

In this research, we investigate the impact of stochastic volatility and interest rates on counterparty credit risk (CCR) for FX derivatives. To achieve this we analyse two real-life cases in which the market conditions are different, namely during the 2008 credit crisis where risks are high and a period after the crisis in 2014, where volatility levels are low. The Heston model is extended by adding two Hull–White components which are calibrated to fit the EURUSD volatility surfaces. We then present future exposure profiles and credit value adjustments (CVAs) for plain vanilla cross-currency swaps (CCYS), barrier and American options and compare the different results when Heston-Hull–White-Hull–White or Black–Scholes dynamics are assumed. It is observed that the stochastic volatility has a significant impact on all the derivatives. For CCYS, some of the impact can be reduced by allowing for time-dependent variance. We further confirmed that Barrier options exposure and CVA is highly sensitive to volatility dynamics and that American options’ risk dynamics are significantly affected by the uncertainty in the interest rates.     

Structural Breaks,Biased Estimations,and Forecast Errors in a GDP Series of Canada versus the United States

International Advances in Economic Research - A structural break was suspected for the Canadian gross domestic product (GDP) time series when the reporting system switched from the Standard...     

Intra‐firm transfer of best practices in moral reasoning: a conceptual framework

In this paper, we develop a conceptual framework of the intra‐firm transfer of best practices in moral reasoning by integrating three streams of literature: internal knowledge transfer in strategic management, moral reasoning and epistemology in philosophy and business ethics, and leader–member exchange in human resource management. We propose that characteristics of moral reasoning (nature of moral knowledge, tacitness of moral reasoning and causal ambiguity), source characteristics (moral development of leaders), target characteristics (integrity capacity and moral development of subordinates), leader–member exchange and internal ethical climate influence the transfer of best practices in moral reasoning.     

The time profile of public expenditure growth in India: An emprical investigation

Empirical tests confirm that the major social upheavals produced interfunctional and intrafunctional ‘displacements’ in government spending and thereby changed the character of public expenditure in India. There was a strong resurgence in the growth of public expenditure on social and development services; the State governments gained a greater role in this area in the post-disturbance period. Perhaps this could be inferred as a disturbance-generated ‘decentralization process’ giving a greater scope for the State governments in dealing with social and development services.     

Perceptions of Corporate Social Responsibility Among Indonesian College Students

Ethical consumption studies in developed countries suggest consumers are becoming more ethically minded, as manifested in the shift toward purchasing ethical products. However, little is known about ethical consumption in developing countries, which is problematic because these countries host the greatest share of the world’s youth population. In this study, the authors examine the perceptions and motivations of Indonesian college student consumers toward corporate social responsibility (CSR). The authors find that despite the country-based differences, Indonesian college students express perceptions of CSR similar to those of consumers in developed countries. Furthermore, female consumers have stronger intentions to support ethical products than their male counterparts.     

Leader–member exchange,subordinate stewardship,and hierarchical governance

In this article, by integrating the institutional theory, leader–member exchange (LMX) theory, and stewardship theory, we propose a model of subordinate stewardship behaviors in organizational hierarchies and the resultant hierarchical governance structures. First, we develop propositions suggesting that the quality of LMX (supervisor–subordinate) is determined by three antecedents: leader characteristics, subordinate characteristics, and internal organizational context. The quality of LMX, in turn, affects the subordinate stewardship behaviors. Second, by integrating institutional theory and stewardship theory, we propose that the interaction between isomorphic pressures and the level of subordinate stewardship behaviors may result in four distinct types of hierarchical governance structures: isomorphic stewardship, isomorphic controls, firm-specific controls, and firm-specific stewardship. These governance mechanisms reflect the internal drive toward subordinate stewardship, while complying with the external norms of isomorphism. Thus, different types of governance structures may exist between and within firms. Implications of this model are discussed here.     

CEO Optimism and the Credibility of Open-Market Stock Repurchase Announcements

Given their low-cost and low level of commitment, open-market stock repurchase announcements are often viewed by the market with a degree of skepticism, leading to a weak initial market reaction followed by positive stock price drifts. The authors argue that the repurchase announcements made by optimistic CEOs should be more credible than those made by nonoptimistic CEOs. Our results show that optimistic CEOs are more likely to actually buy back their shares after the announcements and the abnormal returns following repurchase announcements are larger for optimistic CEOs. This evidence suggests that CEO optimism is an important factor that the market seems to overlook while evaluating the credibility of open-market repurchase announcements. Our main contribution is to link one of the most important managerial traits, optimism, to the open-market repurchases.     

Healthcare resource utilization with ixazomib or placebo plus lenalidomide-dexamethasone in the randomized,double-blind,phase 3 TOURMALINE-MM1 study in relapsed/refractory multiple myeloma

Aims: The aim of this analysis was to assess healthcare resource utilization in the pivotal phase 3 TOURMALINE-MM1 study of the oral proteasome inhibitor ixazomib or placebo plus lenalidomide and dexamethasone (Rd) in relapsed and/or refractory multiple myeloma (RRMM).

Methods: In this double-blind, placebo-controlled, randomized study (NCT01564537), 722 patients with RRMM following 1–3 prior lines of therapy received Rd plus ixazomib (ixazomib-Rd; n?=?360) or matching placebo (placebo-Rd; n?=?362) until disease progression or unacceptable toxicity. Healthcare resource utilization data were captured on Day 1 of each 28-day cycle, every 4 weeks during follow-up for progression-free survival, and every 12 weeks during subsequent follow-up, and included medical encounters (length of stay, inpatient, outpatient, and reason) and number of missing days from work or other activities for patients and caregivers.

Results: Exposure-adjusted rates of hospitalization were similar between the ixazomib-Rd and placebo-Rd arms, at 0.530 and 0.564 per patient year (ppy), respectively, as were outpatient visit rates (3.305 and 3.355 ppy). Mean length of hospitalization per patient was 10.0 and 10.8 days, respectively. In both arms, hospitalization and outpatient visit rates were higher in patients with two or three prior lines of treatment (ixazomib-Rd: 0.632 and 3.909 ppy; placebo-Rd: 0.774 and 3.539 ppy) compared with patients with one prior line (ixazomib-Rd: 0.460 and 2.888 ppy; placebo-Rd: 0.436 and 3.243 ppy). Patients and their caregivers who missed any work or other activity missed a median of 7 and 5 days in the ixazomib-Rd arm, respectively, vs 8 and 4 days with placebo-Rd.

Limitations: The study was not powered for a statistical comparison of healthcare resource utilization between treatment arms, nor did it capture costs associated with utilization of the identified healthcare resources.

Conclusions: This pre-specified analysis demonstrated that the all-oral triplet regimen of ixazomib added to Rd did not increase healthcare resource utilization compared with placebo-Rd.