First mover or higher quality? Optimal product strategy in markets with positive feedbacks

Conventional wisdom holds that in markets with positive feedbacks being first to market can matter more than product quality. In this paper, we test that intuition within a generalized Pólya urn model. We find that if we assume constant feedbacks, in the long run, higher quality products dominate the market regardless of initial market shares, contradicting the common wisdom. However, when we allow for variable feedbacks, initial advantages persist almost indefinitely. Thus, the choice of whether to rush to market or focus on quality depends on market characteristics such as whether the positive feedbacks result from more consistent returns to scale or from more variable social influences.     

Reaffirming the CEO effect is significant and much larger than chance: A comment on Fitza (2014)

A recent study by Fitza argued that the prior estimates of the Chief Executive Officer (CEO) effect are conflated with events outside the CEO's control, are largely the result of random chance, and that the true CEO effect is smaller than has been previously estimated. We suggest that the empirical methodology employed by Fitza to support these claims substantially overstates the “random chance” element of the CEO effect. We replicate Fitza's findings, highlight methodological issues, offer alternative conclusions, and using multilevel modeling (MLM), suggest that his analyses mischaracterize the CEO effect. Copyright © 2016 John Wiley & Sons, Ltd.     

Business models among SMTEs: identifying attitudes to environmental costs and their implications for sustainable tourism

This paper examines how environmental resources and costs feature in business models of small- and medium-sized tourism enterprises (SMTEs). Several studies have pointed to the generally positive nature of the relationship between the economic and environmental performance of tourism firms. Yet, although business models act as a vector between these aspects of firm performance, they have been overlooked in sustainable tourism discourse. The paper reports findings from discussion groups of SMTE businesses in South West England during the global economic downturn. Environmental costs and cost control were afforded relatively little importance in terms of value creation; conversely, there was a strong and predictable emphasis on revenue generation. Indirect tactics emerged for dealing with guests’ environmental behaviours which reflected this prevailing commercial logic. Green credentials were routinely de-emphasized, sometimes regarded as liabilities, in a form of greenhushing. Responses were framed by reference to social media and how online reviews may negatively impact on future value capture. Conceptually, the business model emerged as an important lens for understanding how environmental resources and costs were valourized. The paper highlights the need to ensure that contemporary approaches to environmental management in SMTEs reflect the current and fast-changing conditions that frame business models.     

Higher Highs and Lower Lows: The Role of Corporate Social Responsibility in CEO Dismissal

Research summary: Investing a firm's resources in corporate social responsibility (CSR) initiatives remains a contentious issue. While research suggests firm financial performance is the primary driver of CEO dismissal, we propose that CSR will provide important additional context when interpreting a firm's financial performance. Consistent with this prediction, our results suggest that past CSR decisions amplify the negative relationship between financial performance and CEO dismissal. Specifically, we find that greater prior investments in CSR appear to expose CEOs of firms with poor financial performance to a greater risk of dismissal. In contrast, greater past investments in CSR appear to help shield CEOs of firms with good financial performance from dismissal. These findings provide novel insight into how CEOs' career outcomes may be affected by earlier CSR decisions. Managerial summary: In this study, we examined a potential personal consequence for CEOs related to corporate social responsibility (CSR). We explored the role prior investments in CSR play when a board evaluates the firm's financial performance and considers whether or not to fire the CEO. Our results suggest that while financial performance sets the overall tone of a CEO's evaluation, CSR amplifies that baseline evaluation. Specifically, our results suggest that greater past investments in CSR appear to (a) greatly increase the likelihood of CEO dismissal when financial performance is poor, and (b) somewhat reduce the likelihood of CEO dismissal when financial performance is good. Thus, striving to deliver profits in a socially responsible manner may have both positive and negative personal consequences. Copyright © 2017 John Wiley & Sons, Ltd.     

<Emphasis Type="Italic">GTE Sylvania</Emphasis> and Interbrand Competition as the Primary Concern of Antitrust Law

Footnote 19 of the landmark U.S. antitrust decision in Continental T.V. v. GTE Sylvania, Inc. 433 U.S. 36 (1977) declares that “Interbrand competition … is the primary concern of antitrust law.” We trace the antecedents and influence of this declaration, argue that it is inappropriate, and conclude that it should be abandoned.     

Digging the backyard: Mining and quarrying in the UK and their impact on future land use

The future demand for land for mining and quarrying will be affected by a large number of economic, technological, environmental and social issues within the UK. Global developments also have a role to play. Although mining and quarrying account for only 0.9 per cent of the land area of England, the impact of this activity is considerable. Minerals are essential to the economy, for energy, construction, infrastructure and manufacturing, while their extraction has effects on the environment and on public perception. This paper examines current scientific understanding of the context of mining and quarrying, with particular reference to its impact on land use, along with the spatial relationship between minerals – which can only be worked where they occur – and other forms of land use and designation in the ‘post-industrial’ landscape of Britain. Looking out to 2060 and beyond, developments which may influence demand for minerals include climate change mitigation and adaptation; energy, food and raw material security; and new construction, manufacturing, recycling and re-use technologies. Factors influencing the supply side include the structure and ownership of the mining and quarrying industry, new extraction, processing and environmental technologies, ecosystem service provision, societal attitudes and land access. Although prediction carries a high level of uncertainty, continuous development of the regulatory framework is, and will remain, a major and pervasive factor in the relationship between mining and quarrying and land use.     

Antecedents, consequences, and mediating effects of perceived moral intensity and personal moral philosophies

This study uses responses from a survey of marketing professionals in a structural equation model linking antecedents and consequences of two dimensions of personal moral philosophies (idealism and relativism) and perceived moral intensity (PMI). Mixed support is found for hypothesized effects of gender, religiosity, education, experience, salary, and corporate ethical values on idealism and relativism. Idealism increases and relativism decreases PMI in four ethical scenarios. PMI increases perceptions of ethical problems, which reduce intentions to act unethically. The study tests whether relationships between variables, revealing that PMI has direct as well as indirect effects on intentions. Intentions are also influenced by gender: women have more ethical intentions than men, on average, and this effect is not mediated by other variables in the model. Anusorn Singhapakdi is an associate professor of marketing at Old Dominion University. He has also served on the marketing faculty at Lamar University, Texas, and at Thammasat University, Thailand. His papers on topics in marketing ethics and social responsibility have been published in theJournal of the Academy of Marketing Science, Journal of Business Ethics, Journal of Business Research, Journal of Macromarketing, Journal of Public Policy & Marketing, and various other journals and proceedings. Scott J. Vitell is the Phil B. Hardin Professor of Marketing at the University of Mississippi. He received his Ph.D. in marketing from Texas Tech University. His work has previously appeared in theJournal of the Academy of Marketing Science, Journal of Business Research, Journal of Macromarketing, Journal of Business Ethics, Research in Marketing, International Marketing Review, and in other journals and proceedings. George R. Franke is an associate professor and Reese Phifer Fellow of Marketing at the University of Alabama. His research interests include ethics, public policy, advertising, and research methodology. His publications have received best-paper awards from theJournal of Advertising, Journal of Marketing Research, American Marketing Association, and Southern Marketing Association.     

Brexit: How Will UK Agriculture Fare?

There is little doubt that Brexit would have significant implications for UK agriculture, a sector with strong trade links to the EU and strong reliance on CAP income support. This article reports preliminary results from employing a Computable General Equilibrium Model, a Partial Equilibrium Model and Farm Level Models to explore selected trade and domestic policy scenarios post‐Brexit. These allow for the estimation of changes in producer prices, production and farm incomes against a baseline scenario of continued EU membership. Under a Free Trade Agreement with the EU, agricultural impacts are relatively modest. By contrast, unilateral removal of import tariffs has significant negative impacts on prices, production and incomes. Adoption of the EU's WTO tariff schedule for all imports favours net importers (e.g. dairy) and harms net exporters (e.g. sheep). Given the strong dependence of most UK farms on direct payments, their removal worsens negative impacts of new trade arrangements and offsets positive impacts. Impacts vary across different types and sizes of farm, but also regionally. However, the period of adjustment to new trade and domestic policy conditions may prove very challenging for a large number of farm businesses.