Construct validity and second-order factorial model

Three second-order factorial models are defined, using the LISREL notation, to assess the univocity of a construct. The first model assumes that the constructs are heterogeneous, the second that they are homogeneous. The third model introduces the notion of partial homogeneity between constructs. Partial homogeneity is defined in terms of a LISREL second-order factor model. In some cases, this model offers a viable alternative to the collapsing of items into a unique scale. An example is given of scales which fit the partial homogeneity model.     

In eigener Sache

Ohne Zusammenfassung     

Belonging,believing, bonding,and behaving: the relationship between religion and business ownership at the country level

This cross-country study adopts a competing theories approach in which both a value perspective and a social capital perspective are used to understand the relation between religion and a country’s business ownership rate. We distinguish among four dimensions of religion: belonging to a religious denomination, believing certain religious propositions, bonding to religious practices, and behaving in a religious manner. An empirical analysis of data from 30 OECD countries with multiple data points per country covering the period 1984–2010 suggests a positive relationship between religion and business ownership based on those dimensions that reflect the internal aspects of religiosity (i.e., believing and behaving). We do not observe a significant association for those dimensions that reflect more external aspects of religion (i.e., belonging and bonding). These results suggest that the social capital perspective prevails the value perspective, at least when internal aspects of religiosity are concerned. More generally, our study demonstrates the importance of distinguishing between different dimensions of religion when investigating the link between religion and entrepreneurship.     

The influence of value perceptions on tourist souvenir purchase decisions

Shopping is an important activity impacting the travel and tourism industry. This research explores the influence of value perceptions on tourists' souvenir purchase decisions. A convenience sample of 380 respondents from a southeastern US university completed a survey regarding value perception towards the destination visited, type of shopping venue, and souvenir purchase intention. Through structural equation modeling, results revealed that functional and social value significantly influenced tourists' purchase intentions. This result provides valuable insight suggesting destination marketers should focus on these two indicators in future planning and promotion strategies. Limitations and directions for future research are provided.     

R&D subsidiary isolation in knowledge-intensive industries: evidence from Austria

We investigate R&D subsidiary isolation within Multinational Corporations (MNCs) competing in knowledge-intensive industries. For such MNCs, accessing knowledge and nurturing the innovative potential of R&D subsidiaries is vital for on-going competitiveness. This, according to conventional thinking, requires integration of the subsidiary within the host country as well as internally within the MNC. Recent studies have shown, however, that overseas subsidiaries can become isolated (i.e., losing requisite integration), even in high-technology sectors. We tackle this issue by focusing on organizational factors at corporate and subsidiary levels that have the potential to explain subsidiary isolation. We analyze a sample of 45 foreign-owned Austrian subsidiaries undertaking R&D in knowledge-intensive industries using a combination of questionnaire and secondary data. The results suggest that parent and subsidiary experience, the degree of early-stage research conducted by the subsidiary and the use of training and rotation practices by the subsidiary, all act to counter isolation. Interestingly, we find that proximity between parent and R&D subsidiary does not play a significant role in predicting isolation. We also show how these factors influence communication frequency between the R&D subsidiary and various actors within the internal and the external networks in different ways.     

Development costs capitalization and debt financing

This study investigates debt market effects of research and development (R&D) costs capitalization, using a global sample of public bonds and private syndicated loans issued by public non‐financial firms. Firstly, we show that firms capitalize larger amounts of R&D in a year when they exhibit a propensity for issuing bonds, rather than borrowing funds privately from the syndicated loan market, in the subsequent year. Secondly, we provide evidence that capitalized R&D investments reduce the cost of debt. We infer that debt market participants are able to identify firms’ motives for R&D capitalization, as we find a reduction in the cost of debt only for those firms that do not show indications of employing R&D capitalization for earnings management reasons. Indeed, only for this sub‐sample of firms, the amount of capitalized R&D contributes positively to future earnings. We confirm that R&D capitalization is positively associated with audit fees and thus can be deemed to be a signaling device. Lastly, we find that it is the amount of R&D a firm is expected to capitalize and not the discretionary counterparts, which facilitates a firm's access to public debt markets, reduces bond and syndicated loan prices, and contributes to future benefits.     

The Significance of Mineral Processing Activities and their Potential Impact on African Economic Development

The question of transforming primary products for export, including local mineral processing has been addressed by successive development plans in African countries. Few projects have been realized so far. This study examines the potential impact of mineral processing activities on industry linkages and growth prospects for countries in Africa. Lessons from ‘success stories’ among developing nations confirm that the choice of mineral processing as an industrialization strategy will be associated with large, complex, and long-term investments, which call for sound macroeconomic policies and adequate legislative frameworks, if the potential development benefits of such activities are to be realized. Effective implementation also requires the avoidance of over-rapid absorption of export earnings. Strongly enforced policies are needed to ensure that export earnings effectively contribute to growth through domestic investments and savings. Also, a call can be made for greater involvement of the private sector or to privatization in order to quickly respond to ever increasing market demands. Moreover, opportunities for greater transformation of mineral commodities seem to be limited by a number of interrelated factors, which reduce to questions of market access, financing, management, long-term domestic supplies of inputs such as skilled labour and technology, and most importantly, the difficulty of making profitable investments, given high import costs. The analysis thus suggests that given the right combination of domestic conditions, gains from trade are likely to follow from expanding mineral processing capabilities as well as from improving related processing technologies. L’importance de la transformation des matières premières pour le développement économique africain y compris la valorisation locale des minerais a été soulignée dans divers programmes de développement. Cependant, peu de réalisations concrètes ont jusqu’à ce jour suivies. Cette étude vise à promouvoir la relation existant entre la valorisation locale des minerais et la croissance économique. Plusieurs leçons positives ont été retenues des pays en développement “modèles”. Tout d’abord, la réalisation que le choix d’une telle option économique ne peut se faire sans la mise-en-oeuvre de politiques macro-économiques saines et la création d’un cadre réglementaire approprié. Ensuite, ce choix devra être associéà une meilleure gestion des ressources favorisant l’accroissement de l’épargne et les investissements locaux. De même, une participation accrue du secteur privé aux activités minières, ainsi que la privatisation des sociétés minières étatiques permettraient de mieux faire face aux exigences modernes du marché. Certes de nombreux obstacles demeurent tels que ceux liés à l’accès aux grands marchés mondiaux, aux larges besoins en financement souvent associés à ce type d’investissement, aux problèmes de gestion et à la pérennitéà long-terme de l’offre de deux intrants majeurs au processus de transformation: une force de travail qualifiée et une parfaite maîtrise de la technologie adoptée. Au vu de ce qui précède, le doute est souvent émis concernant la viabilité financière réelle de la valorisation locale des minerais face, de surcroît, aux besoins souvent coûteux en importations qu’elle requiert. Il en demeure que le succès d’une telle stratégie d’industrialisation dépendra d’une maîtrise de tous les paramètres importants permettant d’engendrer les bénéfices escomptés sur le plan économique et technologique.