The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship: an attention-based view

Despite a growing interest in corporate entrepreneurship, we know little of how managers can better utilise their firm’s absorptive capacity to increase levels of corporate entrepreneurship. Building on the attention-based view, we investigate entrepreneurial management as an attentional driver to channel absorptive capacity towards corporate entrepreneurship. From the analysis of a sample of 298 supplier companies providing products and services to the mining industries in Australia and Iran, we observed that absorptive capacity fosters corporate entrepreneurship. Our findings also demonstrate that the dimensions of entrepreneurial management differentially affect the relationship between absorptive capacity and corporate entrepreneurship. The results show that a firm’s absorptive capacity in tandem with other organisational factors may generate higher levels of corporate entrepreneurship.     

Bilateralism, multilateralism, and the quest for global free trade

We develop an equilibrium theory of trade agreements in which both the degree and the nature (bilateral or multilateral) of trade liberalization are endogenously determined. To determine whether and how bilateralism matters, we also analyze a scenario where countries pursue trade liberalization on only a multilateral basis. We find that when countries have asymmetric endowments or when governments value producer interests more than tariff revenue and consumer surplus, there exist circumstances where global free trade is a stable equilibrium only if countries are free to pursue bilateral trade agreements. By contrast, under symmetry, both bilateralism and multilateralism yield global free trade.     

The Relationship of Individual Capabilities and Environmental Support with Different Facets of Designers' Innovative Behavior

Theoretical perspectives on employee creativity have tended to focus on an individual's capability to generate original and potentially useful ideas, whereas definitions of innovation also include the process of putting those new ideas into practice. This field study therefore set out to test how theoretically distinct types of individual knowledge and skills are related to different aspects of employees' innovative behavior in terms of both their new idea generation and idea implementation. Using a sample of design engineers (n = 169) in a multinational engineering company, measures were taken of different aspects of innovative work behavior (patent submission, real‐time idea submission, idea implementation) and a range of individual capabilities (creativity‐relevant skills, job expertise, operational skills, contextual knowledge, and motivation) and environmental features (job control, departmental support for innovation). Analyses showed that creativity‐relevant skills were positively related to indices of idea generation but not to idea implementation. Instead, employees' job expertise, operational skills, and motivation to innovate demonstrated a stronger role in idea implementation. In terms of environmental factors, job control showed no positive relationship with innovative work behavior while departmental support for innovation was related to employees' idea generation but not idea implementation. The theoretical perspective that correlates of idea generation differ in certain aspects to those for idea implementation are confirmed by the study. Practical implications for organizations wishing to improve their innovativeness are discussed in terms of tailored training, development, motivational, and environmental interventions designed to improve the capabilities of individuals to engage in all parts of the innovation process.     

Expense preference behavior in trucking: An empirical note

This note offers a statistical model which points out that the goal of publicly regulated firms often deviates from profit-maximization. Using a large firm-level panel data set from the trucking industry, we offer estimates which suggest that firm managers of the more heavily regulated common carriers practice utility maximization through higher salaries and more lucrative benefits than the managers (CEOs) of less regulated contract carriers. Our results add to the body of empirical work which supplements the theory of the firm developed by Ronald Coase.     

Hospital costs associated with intraoperative hypotension among non-cardiac surgical patients in the US: a simulation model

Objective: Recent studies indicate intraoperative hypotension, common in non-cardiac surgical patients, is associated with myocardial injury, acute kidney injury, and mortality. This study extends on these findings by quantifying the association between intraoperative hypotension and hospital expenditures in the US.

Methods: Monte Carlo simulations (10,000 trial per simulation) based on current epidemiological and cost outcomes literature were developed for both acute kidney injury (AKI) and myocardial injury in non-cardiac surgery (MINS). For AKI, three models with different epidemiological assumptions (two models based on observational studies and one model based on a randomized control trial [RCT]) estimate the marginal probability of AKI conditional on intraoperative hypotension status. Similar models are also developed for MINS (except for the RCT case). Marginal probabilities of AKI and MINS sequelae (myocardial infarction, congestive heart failure, stroke, cardiac catheterization, and percutaneous coronary intervention) are multiplied by marginal cost estimates for each outcome to evaluate costs associated with intraoperative hypotension.

Results: The unadjusted (adjusted) model found hypotension control lowers the absolute probability of AKI by 2.2% (0.7%). Multiplying these probabilities by the marginal cost of AKI, the unadjusted (adjusted) AKI model estimated a cost reduction of $272 [95% CI?=?$223–$321] ($86 [95% CI?=?$47–$127]) per patient. The AKI model based on relative risks from the RCT had a mean cost reduction estimate of $281 (95% CI?=?–$346–$750). The unadjusted (adjusted) MINS model yielded a cost reduction of $186 [95% CI?=?$73–$393] ($33 [95% CI?=?$10–$77]) per patient.

Conclusions: The model results suggest improved intraoperative hypotension control in a hospital with an annual volume of 10,000 non-cardiac surgical patients is associated with mean cost reductions ranging from $1.2–$4.6 million per year. Since the magnitude of the RCT mean estimate is similar to the unadjusted observational model, the institutional costs are likely at the upper end of this range.     

Examining the Relationship Between Advertising Expenditures and Sales of Quick-Service Restaurants in the United States

The United States fast-food industry represents an important business sector with respect to national and international economics. Due to the low levels of product differentiation and high industry competition, fast-food companies heavily engage in advertising and branding activities. Quick-service restaurants (QSR) are the largest and growing segment of the fast-food industry. The current study examined the longitudinal relationship between advertising expenditures and sales revenues for the QSR industry and leading QSR brands in the United States from 1986 to 2007. Hypotheses were tested using a time-series regression analysis. Managerial, research, and policy implications of the results are provided.     

Origin of Foreign Direct Investment and Firm Performance: Evidence from Foreign Acquisitions of Chinese Domestic Firms

Using a newly created panel of domestic Chinese firms who receive foreign direct investment (FDI), this paper finds that Organisation of Economic Cooperation and Development (OECD)‐acquired firms outperform those acquired by investors from Hong Kong, Macao and Taiwan (HMT). To control for possible endogeneity of the FDI decision, I employ propensity score matching combined with a difference‐in‐differences approach. The results indicate that relative to HMT‐acquired firms, OECD‐acquired firms experience significantly higher productivity in the initial year of acquisition and this productivity differential persists in subsequent years, reaching 27.8 per cent by the third year. Further, OECD‐acquired firms exhibit higher profits, average wages and capital per worker compared to HMT‐acquired firms. These results suggest that the origin of the foreign investor differentially affects target firm performance.     

Cost-minimization comparison of darunavir plus ritonavir and lopinavir/ritonavir in HIV-1 infected treatment-naïve women of childbearing age

Background:

Guidelines from the Department of Health and Human Services in the US recommend ritonavir-boosted lopinavir (LPV/r) as a preferred protease inhibitor (PI) for HIV-positive antiretroviral-na?ve pregnant women. These guidelines also cite ritonavir-boosted darunavir (DRV?+?RTV) as an alternative PI in this clinical scenario. The purpose of this analysis was to compare economic outcomes for regimens based on these two treatments.

Study design:

An existing discrete event simulation (DES) model was adapted to conduct a cost-minimization analysis comparing the two regimens in HIV-infected women of childbearing age (WOCBA), from the perspective of a healthcare payer in the US.

Methods:

The DES model was used to represent disease states, health events, healthcare encounters, pregnancy, and treatment choices in HIV-infected WOCBA starting treatment with regimens based on either LPV/r or DRV?+?RTV. It also incorporated parameters for individual patient characteristics, and for antiretroviral (ARV) treatment effectiveness, treatment sequencing, clinical progression, and resource use. Potential events included scheduled physician visits; viral suppression; viral rebound; AIDS-related complications; CHD events; treatment discontinuation and switching; ARV treatment side-effects (SE); and death. The primary outcomes were discounted 5-year and 10-year healthcare costs. Alternative scenarios considered different rates of switching from DRV?+?RTV to LPV/r upon conception.

Results:

Compared with DRV?+?RTV, LPV/r was associated with similar clinical outcomes while offering savings at the 5- and 10-year horizons (of $24,904 and $43,502 per patient, respectively), and in extensive sensitivity analyses. The main driver of the savings was the difference in cost between PIs.

Conclusions:

Starting HIV-infected ARV-treatment-na?ve WOCBA on an LPV/r-based regimen is cost-saving and provides similar patient outcomes compared to a DRV?+?RTV-based regimen.