Lock in and switch: Asymmetric information and new product diffusion

Many new web-based services are introduced as free services. Depending on the seller??s business model, some remain free in the long run, while others switch to pay mode at some point in time. I characterize the relation between buyers and a new service seller when the former are uncertain about the latter??s business model and need to incur a one-time sunk cost before enjoying the new service. I derive a natural signaling equilibrium where the seller plays a ??lock-in-and-switch?? strategy, while buyers play a ??wait-and-see?? strategy. Specifically, a high-cost seller starts by pricing at zero and waits for a sufficient number of consumers to adopt the new service, at which point the seller switches to pay mode. In this gradual separation equilibrium, the signal is given not by the price level (which always starts at zero) but rather by the duration of the introductory offer. Finally, I show the equilibrium entails diffusion even though consumers are identical and equally aware of the new service??s existence.     

Networks of Value‐added Trade

Global value chains (GVCs) require new methods for evaluating interconnections among countries, which can no longer be accurately appraised by standard bilateral gross trade flows. This paper uses tools of network analysis to examine the evolution of value‐added trade from 1995 to 2011. GVCs are very centralised and asymmetric networks, with a few large economies acting as hubs, which exposes them to the propagation of idiosyncratic shocks. As GVCs expanded, the networks of foreign value added in exports became denser, more complex and intensively connected. The regional dimension of GVCs is still dominant but is progressively giving place to a more global network. Networks of foreign value added in goods exports outpace those of services exports. However, foreign inputs of services are important for exports of both goods and services. There is a striking rise of China as a supplier of value added, while Germany and the United States maintain a central role in GVCs over the whole period.     

Austerity measures in crisis countries — results and impact on mid-term development

Since the onset of the sovereign debt crisis, the crisis-stricken countries in Europe have been pushed to take drastic steps to consolidate their finances and reduce their budget deficits. Despite strong public opposition and largely damaging short-run effects, the countries have undertaken many of the internationally recommended/mandated reforms and spending cuts. In this Forum, authors from Greece, Ireland, Italy, Spain and Portugal report on the fiscal consolidation achieved in their respective countries — and the sacrifices that have made it possible. Furthermore, the authors detail what remains to be done to resolve the crisis.     

Enterprise Web Accessibility Levels Amongst the Forbes 250: Where Art Thou O Virtuous Leader?

The research team measured the enterprise web accessibility levels of the Forbes 250 largest enterprises using the fully automatic accessibility evaluation tool Sortsite, and presented the compliance of the evaluated websites to WCAG 1.0, WCAG 2.0 and Section 508 accessibility levels. Given the recent attention to organizational leaders having ethical duties towards their dedicated employees, we propose that ‘societal citizenship behaviour’ concerns ethical duties of organizational leaders towards society in general and in particular to those who have less means to assert their needs. In effect, we found enterprise website accessibility levels to be in need of significant improvement. An interpretation of a positive path forward to better enterprise website accessibility levels is put forth based on a focus-group interaction and using BNML—a novel Business Narrative Modelling Language.     

The influence of human resource management in savings bank performance

The aim of this article was to analyse the value of human resources (HR) for competitive advantage and their influence on the firm's performance in the service industry. To achieve our goal, we have first proposed a resource-based framework to discuss the circumstances under which human resources can be a source of competitive advantage. Then, an empirical research was developed in the Spanish savings bank sector to analyse the relationship between HR management and the firm's performance. Our results, suggest that those savings banks which better combine their HR practices to create and to develop a strategic human capital pool have shown better levels of profitability and productivity.     

Toward Consumption Reduction: An Environmentally Motivated Perspective

Faced with the threat of climate change, there is a challenge to promote more environmentally friendly consumption patterns. This work seeks to unearth psychographic and socio‐demographic factors that could trigger environmentally motivated reductions in consumption. The context of empirical investigation is the European Union (i.e., a large‐scale sample of European citizens), with a focus on two key types of environmentally motivated consumption reduction: domestic and “out‐of‐home” (purchasing) activities. The findings show the interrelated effects of environmental knowledge and ecological motivations (in both aggregated and disaggregated forms) on positive and negative environmental attitudes, which in turn influence consumption reduction. There is also evidence of significant moderating influences of perceived environmental threat, gender, age, education, and country value orientation—particularly on “environmental knowledge” links. The findings reported here contribute to theory and practice toward environmental sustainability.     

Convergence Rates to Output Growth in a Global World: The Roles of Openness and Government Size

In this article, we examine the effects of three openness measures on 54 industrial and emerging economies' output growth over the “globalization years” of 1986–2004. Controlling for standard determinants of the Solow growth model in panel data, we find positive effects of openness on real output growth. While we find support for higher convergence rates under the open economy, the convergence rates in this article for both samples are remarkably close to the 2% level documented in Mankiw et al. (1992) Mankiw, G., Romer, D. and Weil, D. 1992. A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics, 107(2): 407–437. [Crossref], [Web of Science ®] , [Google Scholar]. The inclusion of G/Y, however, reduces the speed of convergence more substantially in industrial economies.     

Evolving China Strategies: How the Japanese Compare

Taking a sceptical view of the ‘Asian miracles’ proposition that government failure is the main culprit behind development failure, this article reviews the Philippine development experience. The Philippine configuration consists of a weak state carrying out industrial promotion and a large private sector whose dynamics depend heavily on state-managed privileges. In the final section, the article proposes an alternative to the rent-seeking model, in which rents defined as returns contingent on political position and rivalry over political position determine private investment behaviour. In such a society, there is limited internal basis for structural change and growth is accidental to external developments.     

The evolving role of organisational and personal networks in international market venturing

In a study of 1304 Australian manufacturing industry SMEs, we investigate the relationships among networking (i.e., inter-personal and inter-organisational networks), international market venturing (i.e., export intensity), and family ownership. We find evidence that (1) inter-personal networking and inter-organisational networking positively influence SME international market venturing, but this relationship is contingent on a time lag effect, and (2) family ownership negatively moderates the effect of inter-organisational networking on international market venturing. Implications for managerial practice and public policy are discussed.