Developing a financial conditions index for a post-transition country: the case of Croatia

The interconnection between financial and business cycles and the importance of surveillance over financial markets emphasise the need for the development of indicators that could trace financial conditions in a country. In this paper, we focus on developing a financial conditions index for a post-transition country – Croatia. Since financial conditions indices for post-transition markets differ from those for developed markets due to differences in the development of their financial systems and the availability of data, we show that financial conditions indices constructed for post-transition markets need to be tailored to the specifics of such markets.     

BAYESIAN PERSUASION WITH PRIVATE EXPERIMENTATION

This article studies a situation in which a sender tries to persuade a receiver by providing hard evidence that is generated by sequential private experimentation where the sender can design the properties of each experiment contingent on the experimentation history. The sender can selectively reveal as many outcomes as desired. We determine the set of equilibria that are not Pareto‐dominated. In each of these equilibria under private experimentation, the persuasion probability is lower and the receiver obtains access to higher quality information than under public experimentation. The decision quality improves in the sender's stakes.     

International Students: Linking Education and Travel

Despite growing research interest in international students, potential links between international tourism and education have received little attention to date. A survey among full-degree foreign students at an Australian university aims to fill this gap. The identified links between travel and study and the conversion of desired into actual travel lead to a proposed conceptual framework of information sources, destination image, and a continuum of study and tourism activities. Further research is proposed to better understand mutual influences of education and travel, their relative importance for international students, and the opportunities for cooperation and exploitation of synergies among respective authorities.     

Manual dishwashing process – a pre‐assigned behaviour?

Global studies have observed many techniques of manual dishwashing causing different levels of performance and using quite different amounts of water, energy, time and detergent. It is not known, however, if these techniques are pre‐assigned to a person and persist when dishes are washed under different conditions, or are adapted to the specific type of dish‐cleaning process. Here we explored this question in a study with 40 test subjects selected equally from Germany and East European countries by asking them to wash two place settings of dishes with different amounts of soil three times. The results showed that the test subjects did not adapt their washing‐up behaviour to the amount of soil. In general, no significant differences were found in the water, energy and detergent consumption for all test subjects. Only the time used by the German test subjects to wash the fully soiled dishes was significantly longer compared with the dishes with only a quarter the quantity of soil, and no significant difference was observed for all other parts. The only significant difference found between the level of soiling of the dishes was the cleaning result achieved: The less soiled the dishes were, the better the final cleaning result was, and this related to all test subjects. This lends support to the proposition that the consumers did not adapt their washing‐up behaviour to the specific circumstances of the dishwashing job to be done but retained some pre‐assigned behaviour.     

Patent pools and innovation in substitute technologies—evidence from the 19th‐century sewing machine industry

Patent pools, which combine complementary patents of competing firms, are expected to increase overall welfare but potentially discourage innovation in substitutes for the pool technology. This article exploits a new historical data set on changes in patenting and firm entry for a clearly defined pool technology and substitutes in the 19th‐century sewing machine industry. This analysis reveals a substantial increase in innovation for an—albeit technologically inferior—substitute technology. Historical evidence suggests that the creation of a pool‐diverted innovation toward an inferior substitute technology by creating differential license fees and litigation risks.     

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.     

International Group Heterogeneity and Students’ Business Project Achievement

In business higher education, group project work plays an essential role. The purpose of the present study is to explore the relationship between the group heterogeneity of students’ business project groups and their academic achievements at both group and individual levels. The sample consists of 536 freshmen from an International Business School in a Dutch University. The research has revealed that students’ academic performances are positively correlated with their achievement in group projects at both individual and group levels. However, the group ethnic heterogeneity is negatively related with students’ project scores. The findings may enable education practitioners to gain more insights into students’ project work and manage students’ group work more effectively.     

Is Corporate Responsibility Converging? A Comparison of Corporate Responsibility Reporting in the USA, UK, Australia, and Germany

Corporate social reporting, while not mandatory in most countries, has been adopted by many large companies around the world and there are now a variety of competing global standards for non-financial reporting, such as the Global Reporting Initiative and the UN Global Compact. However, while some companies (e.g., Henkel, BHP, Johnson and Johnson) have a long standing tradition in reporting non-financial information, other companies provide only limited information, or in some cases, no information at all. Previous studies have suggested that there are, country and industry-specific, differences in the extent of CSR reports (e.g., Kolk et al.: 2001, Business Strategy and the Environment 10, 15–28; Kolk: 2005, Management International Review 45, 145–166; Maignan and Ralston: 2002, Journal of International Business Studies 33(3), 497–514). However, findings are inconclusive or contradictory and it is often difficult to compare previous studies owing to the idiosyncratic methods used in each study (Graafland et al.: 2004, Journal of Business Ethics 53, 137–152). Furthermore, previous studies have relied mainly on simple measures, such as word counts and page counts of reports, to compare the extent of reporting that may not capture significant differences in the content of the reports. In this article, we seek to overcome some of these deficiencies by using textual analysis software and a more robust statistical method to more objectively and reliably compare the CSR reports of firms in different industries and countries. We examine a sample of leading companies in four countries (US, UK, Australia, and Germany) and test whether or not membership of the Global Compact makes a difference to CSR reporting and is overcoming industry and country specific factors that limit standardization. We conclude that GlobalCompact membership is having an effect only in certain areas of CSR reporting, related to the environment and workers, and that businesses from different countries vary significantly in the extent to which they promote CSR and the CSR issues that they choose to emphasize in their reports. These country differences are argued to be related to the different institutional arrangements in each country.     

Goal Multiplicity and Innovation: How Social and Economic Goals Affect Open Innovation and Innovation Performance

Integrating insights from the strategic goal literature and the knowledge‐based view of the firm, this article proposes that the pursuit of social and economic strategic goals by commercial firms affects their innovation performance through different knowledge sourcing activities. The strategic goals, knowledge sourcing practices, and innovation performance of 1257 Belgian firms are investigated. Results show that both social and economic strategic goals are associated with the use of external information sources, but only the pursuit of social goals inspires firms to engage in external collaboration. No evidence is found of an inherent conflict between social and economic strategic goals. Instead, the two types of goals are independent of each other, that is, an emphasis on social goals does not preclude an emphasis on economic goals and vice versa. Moreover, firms’ external knowledge sourcing and innovation performance benefit most when strongly held social goals align with strongly held economic goals. These findings offer new insight into the nature and the effects of goal multiplicity among commercial firms. They open up a new perspective on the potential positive effects of the joint pursuit of social and economic strategic goals instead of seeing them as inherently conflicting, as past research has typically done. We illustrate how social strategic goals can deliver unique benefits to a firm, independently of and in addition to economic strategic goals. Our findings also contribute to the open innovation literature by revealing strategic goals as a driver of firms’ knowledge sourcing practices. Our findings suggest that solely emphasizing economic goals may be one reason why firms struggle to implement open innovation practices and do not reap their full benefits. The practical implications of our research are discussed.     

Customer Behaviour and B2C Client Segmentation in Data-Driven Society

International Advances in Economic Research -