Low-wage country competition and the quality content of high-wage country exports

We study how competition from low-wage countries in international markets affects the quality content of high-wage country exports. We focus on aggregate quality changes driven by a reallocation of sales from low- to high-quality exporters, within industries. Two alternative indicators are used on firm-level data to measure quality changes. Both lead to similar conclusions. Namely, we show that the mean quality of French exports increased by 10–15% between 1995 and 2005. Quality improvement is significantly more pronounced in markets in which competition from low-wage countries has increased the most. This holds true for various specifications including two different identification strategies. The results are consistent with competition from low-wage countries leading developed countries to specialize within industries in the production of higher quality goods.     

The Relationship of Persuasion Knowledge,Identification of Commercial Intent and Persuasion Outcomes in Advergames—the Role of Media Context and Presence

Across two studies, the authors investigate the extent to which children’s persuasion knowledge of an advertising tactic (advergame and TV commercial) and their level of engagement with the medium (presence) influence their identification of commercial content and persuasion outcomes. In line with theoretical predictions of the persuasion knowledge model, results showed that those children who had more knowledge about advertisers’ tactics were more likely to identify brands and commercial content in the advergame and less likely to be influenced. However, a high level of presence in the medium moderated the effect of persuasion knowledge on persuasion outcomes.     

Analysis of efficiency and profitability of franchise services

The present study analyses the relative efficiency of franchise services and characterises the best companies, confirming the relationship between efficiency and profit. These companies are from ‘the trade and other services sector', the main group of service-providing companies in the Spanish economy. The methodology calls for first comparing the relative efficiency of franchisers and ownership enterprises. Second, the focus turns to the most efficient franchise services, using a super-efficiency model to rank them. The paper then goes on to cover the analysis of the main characteristics of the best franchise enterprises, the number of own establishments in a franchise business and the profitability of the company. This paper presents arguments as to why companies from the trade and other services sector are included. The main conclusion is that, whilst the number of establishments is irrelevant in achieving greater efficiency, many of the most efficient enterprises have high returns.     

A Ten-Year Study of the Effectiveness of an Educative Programme in Ensuring the Ecological Sustainability of Recreational Activities in the Brisbane Ranges National Park,South-Eastern Australia

Managing the spread of cinnamon fungus, an exotic root-rotting pathogen which kills a wide range of native plants, is an over-riding management concern in the Brisbane Ranges National Park of south-eastern Australia. Parks Victoria has implemented a suite of approaches for informing recreational users about the disease and its ecological impacts. To assess longitudinal changes in the effectiveness of the educative programme, recreational users were surveyed in 1993 and in 2003. 81% were not aware of cinnamon fungus dieback in 1993; the proportion in 2003 was almost unchanged at 83%. Despite the lack of awareness of cinnamon fungus dieback, a large majority (76% in 1993; 74% in 2003) of respondents replied that they had viewed information boards in the park or read visitor guides with information on the disease and its ecological impacts. When recreational users were informed of the impact of infection, there was unanimous support for track closures for quarantine purposes. Our findings indicate that current methods of educating recreational users about cinnamon fungus dieback are not effective. Recommendations are made to improve the penetration of the educational and interpretive information, including the incorporation of affective and cognitive approaches.     

Book reviews

Recent regulatory initiatives stress that an independent oversight board, rather than the management board, should assume the role of auditors' client. In an experiment, we test whether the type of client affects auditors' independence. Unique features of the German institutional setting enable us to realistically vary the type of auditors' client as our treatment variable: we portray the client either as the management preferring aggressive accounting or the oversight board preferring conservative accounting. We measure auditors' perceived client retention incentives and accountability pressure in a post-experiment questionnaire to capture potential threats to independence. We find that the type of auditors' client affects auditors' behaviour contingent on the degree of the perceived threats to independence. Our findings imply that both client retention incentives and accountability pressure represent distinctive threats to auditors' independence and that the effectiveness of an oversight board in enhancing auditors' independence depends on the underlying threat.     

Ethics and Religion: An Empirical Test of a Multidimensional Model

Although it seems that ethics and religion should be related, past research suggests mixed conclusions on the relationship. We argue that such mixed results are mostly due to methodological and conceptual limitations. We develop hypotheses linking Cornwall et al.’s (1986, Review of Religious Research, 27(3): 266–244) religious components to individuals’ willingness to justify ethically suspect behaviors. Using data on 63,087 individuals from 44 countries, we find support for three hypotheses: the cognitive, one affective, and the behavioral component of religion are negatively related to ethics. Surprisingly, one aspect of the cognitive component (i.e., belief in religion) shows no relationship. Implications for research and practice are discussed. K. Praveen Parboteeah (Ph.D. Washington State University) is an Associate Professor of International Management in the Department of Management, University of Wisconsin - Whitewater. Parboteeah’s research interests include international management, ethics, religion and technology and innovation management. He has published articles in numerous academic journals including Academy of Management Journal, Organization Science, Decision Sciences, Small Group Research, Journal of Business Ethics, Journal of World Business, Management International Review, International Journal of Human Resource Management, R&D Management and Journal of Engineering and Technology Management Martin Hoegl (Ph.D. University of Karlsruhe, Germany) is Professor at WHU – Otto Beisheim School of Management, where he holds the Chair of Leadership and Human Resource Management. Before joining WHU, he served on the faculties of Washington State University and Bocconi University (Milan, Italy). His research interests include leadership and collaboration in organizations, management of R&D personnel, knowledge creation in innovation processes, and the management of geographically dispersed collaboration. He has published in leading international journals, including the Academy of Management Journal, Organization Science, the Journal of Management, Decision Sciences, and others. John B. Cullen is Professor of Management at Washington State University. He has also served on the faculties of the University of Nebraska, the University of Rhode Island, Waseda and Keio Universities in Japan (as a Fulbright lecturer), and the Catholic University of Lille in France. Professor Cullen is the past president of the Western Academy of Management. Professor Cullen is the author or co-author of four books and over 60 journal articles. His publications have appeared in journals such as Administrative Science Quarterly, Academy of Management Journal, Journal of International Business Studies, Journal of Management, Organizational Studies, Management International Review, Journal of Vocational Behavior, American Journal of Sociology, Organizational Dynamics, and the Journal of World Business. He currently serves on the editorial board of the Journal of Leadership and Organizational Studies and has served on the editorial boards of the Academy of Management Journal and Advances in International Comparative Management Journal.     

To divide or not to divide? The impact of partitioned pricing on the informational and sacrifice effects of price

Firms often partition a product??s price into two mandatory parts (e.g., the base price of a mail-order DVD and the surcharge for shipping and handling) instead of charging one all-inclusive price. This study examines whether and to what extent partitioned pricing (compared to one all-inclusive price) influences the informational and sacrifice effects of price. We empirically show that partitioned pricing oppositely affects these two distinct roles of price: the informational effect of price (i.e., price as an indicator of quality) increases, while the sacrifice effect (i.e., price as a measure of sacrifice) becomes more negative. In product categories with substantial price?Cquality inferences, the positive impact of partitioned pricing on the informational effect can overcompensate for its negative impact on the sacrifice effect, making partitioned prices the preferable strategy.     

Short-Term Field Study Programs: A Holistic and Experiential Approach to Learning

For business schools, AACSB and Middle States’ call for more experiential learning is one reason to provide study abroad programs. Universities must attend to the demand for continuous improvement and employ metrics to benchmark and evaluate their relative standing among peer institutions. One such benchmark is the National Survey of Student Engagement (NSSE, 2013) which outlines 10 “Engagement Indicators” classified under four dimensions representing broad aspects of the student experience. These dimensions and engagement indicators are addressed in this article and may serve as a litmus test of the value and impact of study abroad programs.