Practical wisdom as an adaptive algorithm for leadership: Integrating Eastern and Western perspectives to navigate complexity and uncertainty

In this paper, we integrate Eastern and Western perspectives of practical wisdom to answer the question, how can practical wisdom transfer across cultural boundaries in a world of increasing interconnection? We describe key properties of practical wisdom in early Western and Eastern schools of thoughts and explain how the concept of practical wisdom in ancient philosophy aligns with modern-day complex system science. We identify seven qualities of complex adaptive systems as a universal pattern that underlies both Eastern and Western perspectives. From these qualities, we develop an integrated conceptual framework of practical wisdom as factors both internal and external to the self that promote continuous coupling with the broader operating environment. We propose that practical wisdom functions as an adaptive algorithm capable of continuously evaluating its processing rules to maintain fit with the operating environment while generating ongoing novelty. This generativity expands developmental potential across multiple levels and fosters open-endedness, evolvability, and antifragility. With this functional understanding, ethics can no longer be marginalized—it must be recognized as the foundation for sustainable organizing because it reliably creates a network topology that makes innovation and long-term success possible. We close with actions leaders can take to foster practical wisdom.     

Strategic uncertainty and equilibrium selection in stable matching mechanisms: experimental evidence

Experimental Economics - We present experimental evidence on the interplay between strategic uncertainty and equilibrium selection in stable matching mechanisms. In particular, we apply a version...     

An empirical assessment of proposed solutions for resolving scale problems in value relevance accounting research

We implement the most common empirical specifications, with different approaches to control for scale problems, used in studies on the value relevance of accounting information. We study whether the results offered by these specifications are consistent with the residual income valuation model and with the Burgstahler and Dichev option-style valuation framework. Undeflated and per-share specifications offer results that are more in line with both benchmarks. Other deflated specifications and approaches deviate, to different extents, from the expectations of both frameworks. We interpret these deviations as signs of misspecification.     

Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

The rise of e‐commerce over the past 20 years has created an increased need for responsive omnichannel distribution to meet the last mile challenge. Some companies are experimenting with the use of the sharing economy business model to augment distribution strategies. The use of so‐called “Crowdsourced Logistics” (CSL) is becoming more prevalent in practice, but the role in logistics strategy of this new phenomenon has not been thoroughly investigated and understood. Using a contingency theory lens, this research contributes a nascent understanding of how CSL performs in terms of logistics effectiveness by simulating same‐day delivery services from a distribution center to 1,000 customer locations throughout New York City under dynamic market conditions and by comparing the results to those of a traditional dedicated fleet of delivery drivers. The findings are analyzed to suggest how firms may find strategic benefit using CSL. An agenda for future research is provided to explore these strategic implications and to deepen knowledge about the CSL phenomenon.     

COMPARATIVE EFFICIENCY OF RICE FARMS IN CENTRAL LUZON,THE PHILIPPINES

The purpose of this paper is to estimate a bias-free agricultural production function with a view to examining efficiency differences among small rice farmers. Simultaneous equation bias is avoided if we assume that farmers maximise expected profits; specification bias, which commonly occurs when a management input is omitted from such functions, is circumvented by introducing farm-specific dummy variables into a combined cross-sectional and time-series data set. Applying this model to data for 32 Philippine rice farms between 1970 and 1979, rather small production-elasticities are obtained for the conventional inputs and an efficiency ranking of the farms is presented. Second stage analysis shows that differences in soil type, land tenure, education and access to credit are important factors explaining these efficiency differences.     

Debt Tax Shields Around the OECD World

Taxes affect a company’s optimal capital structure, value, and cost of capital, but their impact depends on the tax regime of the country where the company operates. The OECD classifies the tax regimes of its member countries in seven groups. In this paper we offer a general model that encompasses those seven groups. We show that tax benefits of debt vary significantly across tax systems, and that using either Modigliani and Miller’s (1963) or Miller’s (1977) formulas in other tax regimes can lead to quantitatively important mistakes. We also find a significantly positive relationship between average leverage in OECD countries and our indicator of tax shields.     

The Value Relevance of Accounting Numbers Under International Financial Reporting Standards

We study the market reaction to the mandatory adoption of International Financial Reporting Standards (IFRS) in Spain by examining the value relevance of the information contained in the IFRS reconciliation adjustments in relation to the local generally accepted accounting principles (GAAP). The two‐staged IFRS disclosure in the transition period is specific to Spain: the aggregated numbers of accounting differences are disclosed in stage 1, and the IFRS individual adjustments on book value of equity and earnings are disclosed in stage 2. This unique reporting timeline provides an opportunity for the market both to assess the impact of those new accounting policies adopted by firms and to assess differences when compared to the previous GAAP. We find no evidence of increased value relevance after IFRS adoption. However, our results from the incremental value relevance test show that investors consider the individual reconciliation adjustments in the second stage to be valuable and significant, specifically in relation to marked‐to‐market adjustment to financial instruments, adjustments to intangibles, provisions and impairment adjustments to property, plant and equipment, adjustments to inventories, and adjustments to pension benefits. Moreover, the results are significantly higher for low leverage firms. Our findings indicate that the market prices the informativeness of the reconciliation adjustments once the transition to IFRS disclosure cycle is complete.     

Stakeholders' perceptions of tourism development in Cape Verde,Africa

The perceptions of tourism stakeholders regarding the effects of tourism development in their communities are essential in ensuring the proper design and implementation of sustainable tourism development strategies in an area. We designed a survey to gather data about the attitudes of three stakeholders: tourists, residents, and business owners. The respondents were from the island of Sao Vicente in the African archipelago of Cape Verde, which is currently under expansion. The results showed that the three groups positively view increased tourism development in the area, with virtually no differences found between business owners and the other groups, although tourists had a more favourable opinion than residents. Engaging the three groups is essential for the success of tourism development.     

An algorithm to reduce the occupational space in gender segregation studies

This paper presents an algorithm based on the bootstrap to select an admissible aggregation level, that is, the minimum number of occupational categories that yield a gender segregation value not significantly smaller than that obtained from the large number of occupational categories usually available in any data set. The approach is illustrated using labour force survey data for Spain for the comparison of gender segregation in 1977 and 1992, as well as 1994 and 2000. To measure gender segregation, an additively decomposable segregation index based on the entropy concept is used. Despite a substantial simplification in the size of the occupation space, the decrease in the segregation index is very small and not significant, regardless of the year. Consequently, intertemporal changes in gender segregation can be studied using a greatly reduced classification of occupations that permits an easier interpretation of results. Copyright © 2005 John Wiley & Sons, Ltd.     

Nonuniform DIF Detection using Discriminant Logistic Analysis and Multinomial Logistic Regression: A comparison for polytomous items

This study focused on the effectiveness in nonuniform polytomous item DIF detection using Discriminant Logistic Analysis (DLA) and Multinomial Logistic Regression (MLR). A computer simulation study was conducted to compare the effect of using DLA and MLR, applying either an iterative test purification procedure or non-iterative to detect nonuniform DIF. The conditions under study were: DIF effect size (0.5, 1.0 and 1.5), sample size (500 and 1000), percentage of DIF items in the test (0, 10 and 20%) and DIF type (nonuniform). The results suggest that DLA is more accurate than MLR in detecting DIF. However, the purification process only improved the correct detection rate when MLR was applied. The false positive rates for both procedures were similar. Moreover, when the test purification procedure was used, the proportion of non-DIF items that were detected as DIF decreased for both procedures, although the false positive rates were smaller for DLA than for MLR.