Choose to Fight or Choose to Flee? A Network Embeddedness Perspective of Executive Ship Jumping in Declining Firms

Research summary: Executives in declining firms may engage in ship‐jumping behavior (i.e., voluntarily move to new employers before the failure occurs) to avoid the stigma of failure. However, it is unclear how executives decide whether or not to jump ship. Building on a network embeddedness perspective, we highlight how three network‐based indicators (i.e., executive social capital, the social capital of other peers in the declining firm, and the declining firm's alliance network) influence the executive‐level ship‐jumping decision by shaping its benefits and opportunity costs. Using data from executives at failing firms in China, we find support for our hypothesized relationships. Our research provides important insight into the network mechanisms driving the ship‐jumping decision. Managerial summary: Executives at failing firms have a choice: stay and attempt to rescue the firm from failure or exit and avoid the stigma of the failure (i.e., jump ship). Yet, little is known about what factors affect this choice. We propose that social capital plays an important role in the decision. Our evidence from specially treated (*ST) public firms in China finds that ship jumping is lowest at low and high values of social capital, and highest at moderate levels of social capital (an inverted U‐shaped relationship). In addition, higher levels of peer social capital (in the declining firm) as well as a well‐established firm‐level alliance network discourage the ship‐jumping choice. Copyright © 2017 John Wiley & Sons, Ltd.     

An integrated approach for ex-ante evaluation of public policies for sustainable agriculture at landscape level

An integrated methodological framework for ex-ante evaluation and planning of public policies for sustainable agriculture at agro-landscape level is proposed. The components of the framework are to: (1) determine the private, i.e. farmers’, and public benefits associated to agro-landscapes, consisting of an agricultural land-use system, according to its performance for several market and non-market functions. Market forces determine the market benefits and preferences of society the non-market benefits; (2) explore and select potential sustainable agro-landscapes based on the private and public benefits associated with possible land-use alternatives; (3) define efficient public policy mechanisms for improving social net benefit of agro-landscapes.The framework is illustrated with a case study in a small dairy farming dominated agro-landscape in The Netherlands, with gross margin, landscape quality, nature value and environmental health as the analysed ecosystem functions. Alternative landscapes consisting of hedgerow configurations and grassland management practices were explored, yielding a set of alternatives representing the solution space in terms of change in private and public benefits. Policy mechanisms were defined to move from the current to a desired landscape based on changes in social net benefits. Moreover, the necessity of a modification in the current agri-environmental support was analysed for each landscape. The analysis considered all farmers in the agro-landscape jointly. The results for the case study showed potential prototypes of landscapes and their performance compared to the current landscape. Extension was the most efficient policy mechanism to promote the change to the socially optimum landscape alternative.     

Reduced tillage and nitrogen effects on soil water dynamics and maize (Zea mays L.) yield under semi-arid conditions

Soil water and nutrients are critical drivers of crop production for smallholders of southern Africa. A three-year study was conducted to assess the effect of integrating single and double ploughing, ripping and planting basins with nitrogen fertilizer (0, 10 and 20?kg?N?ha^–1) on soil water dynamics and maize (Zea mays L.) yields. The experimental design was factorial with four tillage methods and three nitrogen levels as treatment factors. The study was conducted under semi-arid conditions of Zimbabwe. Tillage methods had similar soil water patterns in the profile and no tillage?×?N interaction effects were observed on soil water dynamics. Soil water penetrated deeper into the profile under ripper and basin methods than conventionally ploughed treatments. Nitrogen increased maize yields (14–96%) and rainwater-use efficiency (20–92%) regardless of tillage methods and growing season quality. However, more studies are required to explore complementary techniques that can improve rainwater capture and prolong soil water storage, and improve soil fertility.     

Heterogeneity in Food Demand among Rural Indian Households: The Role of Demographics

Food expenditures, influenced by social, demographic, and economic factors, constitute a significant proportion of the typical rural Indian's household income. Based on cross‐sectional household data, this study employs the Quadratic Almost Ideal Demand System to estimate food demand among rural Indian households. Special attention is given to the rural household's two‐stage budgeting in total food expenditure and then to a demand for a specific food item. Conditional and unconditional expenditure and price elasticities for seven food groups are estimated. Results indicate that own‐price elasticities for each group are negative ranging from fairly inelastic to elastic range. Expenditure elasticities indicate that food items are a normal necessity to luxury goods. Additionally, socio‐demographic factors play a significant role in food consumption patterns. Based on our unconditional expenditure elasticities, we also project food demand from rural Indian households for next two decades. Les dépenses alimentaires, qui sont influencées par des facteurs socioéconomiques et démographiques, absorbent une partie considérable du revenu des ménages ruraux typiques en Inde. Dans la présente étude, nous avons utilisé le modèle de demande quasi idéal quadratique pour estimer, à l'aide de données transversales sur les ménages, la demande alimentaire des ménages ruraux en Inde. Nous avons accordé une attention spéciale à la budgétisation en deux étapes des dépenses alimentaires totales et à la demande d'un produit alimentaire particulier du ménage rural. Nous avons estimé les dépenses conditionnelles et inconditionnelles et l’élasticité‐prix de sept groupes alimentaires. Les résultats de notre étude indiquent que l’élasticité‐prix de chaque groupe est négative et qu'elle varie de plutôt inélastique à divers degrés d’élasticité. L’élasticité des dépenses indique que les produits alimentaires varient de nécessités de base à produits de luxe. Les facteurs sociodémographiques jouent également un rôle important dans les habitudes de consommation alimentaire. D'après les élasticités des dépenses établies dans notre étude, nous avons estimé la demande alimentaire des ménages ruraux en Inde pour les deux prochaines décennies.     

The Importance of taste in experimental auctions: consumers’ valuation of calorie and sweetener labeling of soft drinks

A majority of purchases that consumers make are classified as repeat purchases. One of the main reasons why consumers make repeat food purchases is the food's taste. Therefore, we examined the importance of including taste testing in nonhypothetical experimental auctions. Specifically, we used two experiments to determine consumers’ willingness to pay for soft drinks labeled with different calorie and sweetener information. In Experiment 1, participants tasted the soft drinks prior to the bidding rounds. In Experiment 2, participants did not taste the soft drinks prior to the bidding rounds. Bidding behavior for the soft drinks was significantly different between Experiment 1 and Experiment 2. Results suggest that including taste testing in the design of experimental auctions is important to accurately capture consumers’ willingness to pay for foods that are purchased repeatedly. Results also imply that policies aimed at combating obesity by making the calorie content of foods more visible may not produce desired outcomes.     

Why Are Themed Brandstores So Powerful? Retail Brand Ideology at American Girl Place

Although there is growing interest in themed brandstores, we still know very little about the source of these retail environments’ power to affect consumers profoundly. Utilizing an ethnographic study of American Girl Place, a culturally rich and highly successful retail environment, we find that effective retailing in these contexts is an intensely ideological affair. In our participant-observation of, and on-site interviews with, consumers at American Girl Place we find that the ideology of the brand manifests powerfully through a variety of different and distinct areas within the store: the Museum, the Library, the Café, the Salon, the Theater, and the Photo Studio. Ideological expression is central to each of these places. Tracking the influence of brand ideology through consumers’ retail experiences, we theorize about the centrality of retail place in ideological branding. Although the confluence of ideology and retailing has been referenced in prior research, this paper focuses on and systematically develops the theoretical interconnection between the two. The physical immediacy of themed brandstore experience acts as a quilting point that links together related cultural concepts into a strong retail brand ideology. The implications of this theory draw our attention to ideological and morally-bound retail brand expressions, emphasize the importance of a variety of retail formats within a single store, and provide practical guidelines for retailers eager to build successful brands of their own.