Challenges for the floriculture industry in a developing country: a South African perspective

The increasing numbers of global floriculture producers, and changes in the basis of competition in this international industry, make it important to evaluate the South African floriculture industry's competitive position. The industry employs more than 17 500 people and provides opportunities for rural employment. This article assesses the challenges facing the South African floriculture industry in the competitive global market, using a framework based on global value chain (GVC) and global commodity chain (GCC) analyses. An empirical study showed that the industry is insufficiently competitive and does not participate to its full potential in the global market. It is recommended that floriculture producers shift their focus from the domestic to the international market, as the domestic market is becoming saturated and its turnover is small. However, as enhancing the industry's competitiveness is a complex endeavour, the industry first needs to address the weaknesses identified.     

Multiple facets of budgeting: an exploratory analysis

This paper investigates four potential reasons for budgeting in organizations (operational planning, performance evaluation, communication of goals, and strategy formation), their antecedents (e.g., organizational strategy and structure), and several budgeting characteristics (e.g., target difficulty and budget emphasis) that potentially influence these reasons-to-budget's performance. While the idea of multiple uses of budgets in organizations is not new, the rationale for this study is that prior research has tended to look at the same (one) reason for budgeting (primarily performance evaluation), or at only one reason in isolation. Based on survey data from 57 managers responsible for preparing the budget for their organizational unit, our analyses suggest that while the four reasons-to-budget exhibit overlap, they are also substantively unique in their own use. Moreover, we demonstrate that the reasons-to-budget arise in different circumstances and that each reason-to-budget's performance is associated with different budgeting characteristics. We also demonstrate a link between the performance of the individual reasons-to-budget and overall budget satisfaction and organizational unit performance.     

The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth

Drawing on socioemotional wealth (SEW) literature, this paper revisits the established entrepreneurial orientation (EO)–performance relationship in a family business context. The main idea in entrepreneurship literature is that EO leads to increased firm performance. We question this logic in a family business context because family related non-financial goals, like SEW, may prevent the firm to reap the fruits of their entrepreneurial efforts. Specifically, we argue that SEW engenders inefficiencies that place constraints on the realization of the benefits of entrepreneurship. Therefore, we propose that a high level of SEW preservation hinders the transmission of the family firm’s EO into positive performance effects. To test this hypothesis, an empirical study was developed using a sample of 232 Belgian private family firms. Robust linear regression analysis reveals that the positive effect of EO on financial performance decreases as the level of SEW preservation increases.     

Self‐similarity in long‐horizon returns

Asset returns incorporate new information via the effects of independent and possibly identically distributed random shocks. They may also incorporate long memory effects related to the concept of self‐similarity. The two approaches are here combined. In addition, methods are proposed for estimating the contribution of each component and evidence supporting the presence of both components in both the physical and risk‐neutral distributions is presented. Furthermore, it is shown that long‐horizon returns may be nonnormal when there is a self‐similar component. The presence of a self‐similar component also questions positive equity biases over the longer term.     

Socio‐Emotional Wealth Separation and Decision‐Making Quality in Family Firm TMTs: The Moderating Role of Psychological Safety

Socio‐emotional wealth (SEW), defined as the firm's non‐financial aspects meeting the family's affective needs, has become the dominant paradigm in family firm research. Recent debate acknowledges potential SEW heterogeneity within family firms. This study considers the effect of polarizing opinions on SEW preservation among TMT members as a source of separation in the TMT. More concretely, we study the effect of SEW separation on TMT decision‐making quality, while taking into consideration behavioural integration as a team process and psychological safety as a team context. Based on a unique multiple respondent sample of 300 managers from 55 Belgian private family firms, we find that behavioural integration mediates the negative effect of SEW separation on TMT decision‐making quality. In addition, we find that the negative effect of SEW separation on behavioural integration is mitigated by psychological safety and even turns into a positive effect at high levels of psychological safety.     

Age of Menarche,Adolescent Sexual Intercourse and Schooling Attainment of Women

We use data from the 1970 British Cohort Study to measure the effect of adolescent sexual intercourse on female schooling attainment. We emphasize the appropriate use of menarcheal age as an instrumental variable (IV) for early intercourse. Our analysis suggests that developmental trajectories vary with menarcheal age and, therefore, capturing variations in individual cognitive capacities induced by pubertal timing is crucial for the validity of the IV identification strategy. Our empirical results indicate that adolescent sexuality reduces full‐time education by approximately one year. Given that 37 percent of females in our data exited virginity in adolescence, the aggregate loss of human capital as measured by average years of female schooling could be up to one‐third of a year.     

The effect of spatiotemporal resolution on predictive policing model performance

Being able to anticipate crime such that new crime events can be dealt with effectively or prevented entirely, leads police forces worldwide to look at applying predictive policing, which provides predictions of times and places at risk for crime, such that proactive preventative measures can be taken. Ideally, predictive policing models predict crime at a high spatio-temporal level, while also providing optimal prediction performance. The main objective of this paper is therefore to evaluate the impact of varying grid resolution, temporal resolution and historical time frame on prediction performance. To investigate this, we analyse home burglary data from a large city in Belgium and predict new crime events using a range of parameter values, comparing the resulting prediction performances. Given the potential prediction performance costs associated with prediction at a high spatio-temporal resolution, consideration should be given to balance practical requirements with performance requirements.     

Collateral,relationship lending and family firms

Prior research suggested that relationship lending could play a role in solving asymmetric information problems between borrower and lender. Other studies suggest a relationship between family ownership and the shareholder–bondholder agency conflict. The present paper investigates the impact of relationship characteristics, family ownership and their interaction effects upon the use of collateral in SME lending. We examine the determinants of collateral as well as the determinants of the choice between business and personal collateral using decision tree analysis. The results reveal that relationship characteristics have a significant influence, but not always in the direction as expected. Moreover, they do not seem to be the primary determinants in our classification models. The most important determinants in both classification models seem to be the loan amount, total assets and the family versus non-family firm distinction. In addition, we differentiate between line-of-credit and non-line-of-credit loans and find significant differences between these decision trees.     

A Meta‐Analysis of the Investment‐Uncertainty Relationship

In this article we use meta‐analysis to investigate the investment‐uncertainty relationship. We focus on the direction and statistical significance of empirical estimates. Specifically, we estimate an ordered probit model and transform the estimated coefficients into marginal effects to reflect the changes in the probability of finding a significantly negative estimate, an insignificant estimate, or a significantly positive estimate. Exploratory data analysis shows that there is little empirical evidence for a positive relationship. The regression results suggest that the source of uncertainty, the level of data aggregation, the underlying model specification, and differences between short‐ and long‐run effects are important sources of variation in study outcomes. These findings are, by and large, robust to the introduction of a trend variable to capture publication trends in the literature. The probability of finding a significantly negative relationship is higher in more recently published studies.