Considerations on “Research on non-market actions: A commentary essay”

This commentary is in response to the commentary, “Research on Non-Market Actions: A Commentary Essay” [Wang, C-J. Research on Non-Market Actions: A Commentary Essay. J Bus Res (2008)] on the paper, “First come, first served: How market and non-market actions influence pioneer market share” [Usero B, Fernández Z, First come, first served: How market and non-market actions influence pioneer market share. J Bus Res (2008), doi:10.1016/j.jbusres.2008.07.005]. The commentary responds directly to Wang's [Wang, C-J. Research on Non-Market Actions: A Commentary Essay. J Bus Res (2008)] comments and proposes further lines of research that integrate the competitive dynamic approach with studies of non-market actions.     

THE NUMÉRAIRE PROPERTY AND LONG‐TERM GROWTH OPTIMALITY FOR DRAWDOWN‐CONSTRAINED INVESTMENTS

We consider the portfolio choice problem for a long‐run investor in a general continuous semimartingale model. We combine the decision criterion of pathwise growth optimality with a flexible specification of attitude toward risk, encoded by a linear drawdown constraint imposed on admissible wealth processes. We define the constrained numéraire property through the notion of expected relative return and prove that drawdown‐constrained numéraire portfolio exists and is unique, but may depend on the investment horizon. However, when sampled at the times of its maximum and asymptotically as the time‐horizon becomes distant, the drawdown‐constrained numéraire portfolio is given explicitly through a model‐independent transformation of the unconstrained numéraire portfolio. The asymptotically growth‐optimal strategy is obtained as limit of numéraire strategies on finite horizons.     

The Impact of Outsourcing Strategies on Information Systems Capabilities in the Hotel Industry

This work analyses the strategy of outsourcing information systems and information technology (IS/IT), considering the different activities comprising the IS/IT area. The literature on IS contains numerous works that analyse outsourcing, very few of which examine the relationship with the different types of capabilities in the IS/IT area and their strategic value. Most works centre on the motives for, and advantages of, the strategy of outsourcing the IS/IT area, while scant attention has been paid to the study of the long-term consequences of outsourcing. This work develops a theoretical model which is applied to the hotel sector and which shows that hotels following a more intensive outsourcing strategy develop fewer managerial capabilities related to knowledge in the management of IS/IT resources. This negative relationship extends to other types of capabilities typical of the area and to certain organisational capabilities. A negative relationship is also observed between the level of outsourcing and the strategic value given to the IS/IT area, which may lead to a lower potential for the development of competitive advantage.     

Understanding the Solar Home price premium: Electricity generation and “Green” social status

This study uses a large sample of homes in the San Diego area and Sacramento, California area to provide some of the first capitalization estimates of the sales value of homes with solar panels relative to comparable homes without solar panels. Although the residential solar home market continues to grow, there is little direct evidence on the market capitalization effect. Using both hedonics and a repeat sales index approach we find that solar panels are capitalized at roughly a 3.5% premium. This premium is larger in communities with a greater share of college graduates and of registered Prius hybrid vehicles.     

Customer Satisfaction in Retail Banking

Professional services firms (PSFs) engaged in international operations present a unique challenge for governments. They directly and indirectly affect governmental policies and the agencies that enforce these policies through policy development, problem solving, and implementation. Yet, governments that seek to advance rational, forward thinking public policy have little, if any, regulatory control over the input and influence of these professional experts. International professional service firms face an increasingly competitive marketplace and complex challenges that demand skill sets that are markedly different from those characteristically required of consumer service companies. This study identifies the qualities of the best performing PSFs that engage clients worldwide. Implications are discussed for governments to ensure the greater public good.     

Are immigrants really attracted to the welfare state? Evidence from OECD countries

This paper examines the impact of fiscal policies on both the size and educational levels of immigrants in destination countries. We find that whether or not a country’s policies are attracting highly educated immigrants goes beyond the issue of the “welfare state”. Immigrants are making important distinctions between the different benefits provided by a receiving country’s government. Health and education spending are found to have a positive impact on the education levels of immigrants while the reverse is true for unemployment and retirement benefits. Welfare programs are found to be insignificant once other government programs/taxes and other factors are taken into account. These results imply that countries should be less concerned about whether they are a “big government” with regards to attracting immigrants, and more concerned with what types of benefits they offer.