FDI and Innovation: An Investigation into Intra- and Inter-industry Effects

It is often believed that transfer of technology and know-how resulting from foreign direct investment (FDI) goes beyond the actual projects undertaken by foreign investors and, spills over to domestic firms affecting their knowledge base and productivity. This paper is an endeavour to investigate the existence of spillovers and their impact on the innovative performance of domestic firms active in the manufacturing sector of India. By employing data on FDI by industry and merging it with information on time-variant buyer–supplier linkages obtained from a series of national input–outputs tables, the study develops intra-industry and inter-industry measures to capture the effects of FDI on innovation performance of the incumbent firms’ active in the same sector as the MNC and in upstream and downstream sectors. The econometric analysis after accounting for endogeneity issues reveals that FDI has a moderate impact on innovative performance of firms residing in identical industries. However, impact on the innovative performance of firms in supplying sectors appears to be statistically strong.     

Measuring service performance in mobile communications

With the rapid growth in the size of the cellular phone market, performance standards are emerging as the strategic imperative for the service providers in ensuring customer satisfaction. This article develops and validates a psychometrically sound multi-item measure of service performance in mobile communications. A pool of 16 items was developed to cover the hypothesised multiple aspects of service performance and tested using a sample of 120 customers. The construct validity of the multi-aspect service performance measure was evaluated through assessing convergent, discriminant and predictive validity.     

Exploring risk dimensions in the Indian software industry

The success of software projects is quite subjective in nature and is fettered by many risks, the perception of which varies from individual to individual and largely depends on the demographic characteristics of the executives and even the characteristics of the project. This study aims to identify and gauge the software risk dimensions and analyze the differences of perception among executives toward software risks. The contributions of this study untangle the issues underlying risks in the software industry and associates these issues with the perception of the “human” factor present in the industry.     

Cost-effectiveness of brentuximab vedotin plus chemotherapy as frontline treatment of stage III or IV classical Hodgkin lymphoma

Objective: The ECHELON-1 trial demonstrated efficacy and safety of brentuximab vedotin plus doxorubicin, vinblastine, and dacarbazine (A?+?AVD) vs doxorubicin, bleomycin, vinblastine, and dacarbazine (ABVD) as frontline therapy for stage III/IV classical Hodgkin lymphoma. This analysis evaluated the cost-effectiveness of A?+?AVD from a US healthcare payer perspective.

Methods: The incremental cost-effectiveness ratio (ICER), defined as the incremental costs per quality-adjusted life year (QALY) gained, was estimated using a non-homogenous semi-Markov cohort model with health states defined on progression following frontline treatment, and for those with progression, receipt of autologous stem-cell transplant (ASCT), and progression after ASCT. Patients undergoing ASCT were classified as refractory or relapsed based on timing of progression. Probabilities of progression/death with frontline therapy were based on parametric survival distributions fit to data on modified progression-free survival (mPFS) from ECHELON-1. Duration of frontline treatment and incidence of adverse events were from ECHELON-1. Utility values for patients in the frontline mPFS state were based on EQ-5D data from ECHELON-1. Other inputs were from published sources. A lifetime time horizon was used. Costs and QALYs were discounted at 3%. Analyses were conducted alternately using data on mPFS for the overall and North American populations of ECHELON-1.

Results: The ICER for A?+?AVD vs ABVD was $172,074/QALY gained in the analysis using data on mPFS for the overall population and $69,442/QALY gained in the analysis using data on mPFS for the North American population of ECHELON-1. The ICER is sensitive to estimated costs of ASCT and frontline failure.

Conclusion: The ICER for A?+?AVD vs ABVD based on ECHELON-1 is within the range of threshold values for cost-effectiveness in the US. A?+?AVD is, therefore, likely to be a cost-effective frontline therapy for patients with stage III/IV classical Hodgkin lymphoma from a US healthcare payer perspective.

Trial registration: ClinicalTrials.gov identifier: NCT01712490.     

Impact of Market Concentration on Employment and Wages: a Look at the Insurance Industry

Atlantic Economic Journal - The falling share of labor in national income is a global concern. This study examined the impact of changes in market concentration ratios in the insurance industry on...     

Measuring personal cultural orientations: scale development and validation

Cross-cultural studies using Hofstede’s national scores to operationalize his five cultural factors at an individual level suffer from ecological fallacy, and those using self-report scales treat cultural factors as unidimensional constructs and provide little or no evidence of the construct validity and measurement equivalence of these scales. This paper reconceptualizes Hofstede’s five cultural factors as ten personal cultural orientations and develops a new 40-item scale to measure them. It also establishes the validity, reliability, and cross-cultural measurement equivalence of the new scale, and discusses its advantages over other scales.     

Leveraging the social welfare chain to provide resilience during disaster

Due to the rampant increase in disasters globally, resilience in supply chain and logistics is receiving greater research attention in various parts of the world. This paper considers the role and contribution of social welfare supply chains in providing resilience. This is a causal phenomenon which has been studied through an exploratory research by building a framework from extant literature, a case study on an Indian non-governmental organization and tested through a social network analysis. We show how in the wake of a disaster, these social welfare supply chains become enablers. The paper provides an inkling into how to improve community resilience in times of disaster. Further, we show how these supply chains use social cohesion embedded in the structure to provide efficiency, diversity and adaptability, thereby bringing resilience into the supply system. Another contribution of this study is the use of visualisation and analysis of social media representation tools for social network analysis in operations.     

The antecedents and consequences of customer-centric marketing

As we enter the twenty-first century, the marketing function remains concerned with serving customers and consumers effectively. The authors propose that just as the marketing function gradually shifted from mass marketing to segmented marketing in the twentieth century, it will increasingly move toward customer-centric marketing in the next century. In the practice of customer-centric marketing, the marketing function seeks to fulfill the needs and wants of each individual customer. The antecedents of customer-centric marketing are the increasing pressure on firms to improve marketing productivity, increasing market diversity in household and business markets, and technology applicability. On the basis of the shift toward customer-centric marketing, the authors expect increased importance of marketing as a “supply management” function, customer outsourcing, cocreation marketing, fixedcost marketing, and customer-centric organizations. This article highlights the implications of customer-centric marketing as well as the boundary conditions that will affect its adoption. Jagdish N. Sheth is the Kellstadt Professor of Marketing in the Gouizeta Business School at Emory University. He has published 26 books and more than 200 articles in marketing and other business disciplines. His book,The Theory of Buyer Behavior (with John A. Howard), is a classic in the field of consumer behavior and is one of the most cited works in marketing. His other books includeMarketing Theory: Evolution and Evaluation (with David Gardner and Dennis Garrett) andConsumption Values and Market Choices: Theory and Applications (with Bruce Newman and Barbara Gross). Rajendra S. Sisodia is Trustee Professor of Marketing at Bentley College. Previously, he was an associate professor of marketing and director of executive programs at George Mason University and an assistant professor of marketing at Boston University. He has a Ph.D. in marketing from Columbia University. He has published more than 40 articles in journals such asHarvard Business Review, Journal of Business Strategy, Marketing Letters, andMarketing Management. He has also authored about two dozen cases, primarily on strategic and marketing issues in the telecommunications industry, as well as a number of telecommunications industry and company analyses. Arun Sharma is an associate professor of marketing at the University of Miami. He has published more than 30 articles in marketing and his interests are in the area of market and marketing evolution.     

Credit Default Swaps: Risk Hedge or Financial Weapon of Mass Destruction?

Credit default swaps (CDSs) are contracts between buyers and sellers of protection against default. They are a form of debt insurance, or more precisely derivatives contracts that investors buy to either insure against or profit from a default. In this way CDS contracts act as a form of debt insurance in that they provide a means of protection against credit risk. In the aftermath of the global financial crisis, the CDS earned the reputation of a ‘financial weapon of mass destruction’. Why? Is this charge justified? This paper shows that the reality is more complex: CDSs carry benefit as well as costs, and the risks associated with them can be mitigated through prudent supervision.