Competition and Corporate Social Responsibility under Creative Capitalism

This article focuses on the changing nature of market competition and on responsible business conduct on the global stage. The article explores the concept of creative capitalism and seeks to address whether or not corporate social responsibility (CSR) is better realized under creative capitalism. This study is conceptual in nature. While it identifies the forces that facilitate and sustain creative capitalism and strengthen executives' commitment to CSR, it proposes a model that can enhance the possibility of a thriving CSR under creative capitalism. The article advocates that under creative capitalism it is more likely to easily channel executives' passion into broad and purposefully driven endeavors; thereby strengthening executives' capacity for understanding how CSR creates value both for their organizations and for society.     

The Concept of “Free Agency” in Monotheistic Religions: Implications for Global Business

The current debate on “free agency” seems to highlight the romantic aspects of free agent and considers it a genuine response to changing economic conditions (e.g., high-unemployment rate, importance of knowledge in the labor market, the eclipse of organizational loyalty, and self pride). Little attention, if any, has been given to the religious root of the free agency concept and its persistent existence across history. In this paper, the current discourse on free agency and the conditions that have led to its emergence are briefly discussed. The paper focuses on the theological perspectives of Judaism, Christianity, and Islam on the concept. Implications for management and business organizations are provided.     

Macroeconomic consequences of increased productivity in less developed economies

This paper examines the impact of improvements in productivity on prices, output, the real wage rate and the balance of payments. Within the context of the model used in this paper, an improvement in productivity can take two alternative forms: (1) a cost saving for a given output and (2) an increase in production without a direct decrease in employment. The results presented are based on a simple model of a small open economy that includes some key features of less developed economies. It is shown that, in the presence of monetary and fiscal restraints, an improvement in productivity leads to increases in output, employment and the real wage and the effect on the balance of payments, in the short and the medium runs, is also positive. We find that whether or not improvement in productivity is import saving plays a crucial role in both comparative static and simulation exercises.     

Do all institutions benefit from leadership training? Challenging tradition through systems inquiry

There is a fascination in the business community with leadership. There is an endless stream of training and development programs on how to become effective leaders to the extent that leadership training is now a big business. But the fascination is not restricted to the business community. People are enthralled by the idea of leadership, search for more information on it, and truly believe that by becoming a leader, they can reach a more desirable future. The purpose of this article is to demonstrate that all organizations do not benefit universally from their investment in employees' leadership training. After reviewing the leadership literature and systems concepts, it is recommended that the redesign of an organization in a social systemic framework will lead to optimization of benefit from leadership training.     

Does national culture affect international corporate cash holdings?

The current literature frequently examines the effects of shareholder rights protection on corporate cash holdings in the context of agency theory. In this study, we show that national culture influences corporate managers’ cash holding behavior beyond the effects of corporate governance and financial market developments in each country through the perception of agency costs and value of financial flexibility. Using Hofstede's cultural dimension indices, we find that corporations hold larger cash and liquid balances in countries where the people tend to avoid uncertainty more, are culturally more masculine, and have longer term orientation.     

A process-oriented perspective on customer relationship management and organizational performance: An empirical investigation

Research on the CRM-performance link has been fragmented due to various perspectives on CRM. This study, considering different concepts of CRM, proposes a process-oriented framework for examining the relationship among CRM resources, CRM process capabilities, and organizational performance. Based on the resource-based view (RBV) of the firm, CRM resources are classified as “technological CRM resources” and “infrastructural CRM resources”. Data from 77 Iranian Internet service provider firms were gathered in a field survey. The empirical work indicates that the measured constructs demonstrate key psychometric properties including reliability and validity. The results reveal that CRM processes are more affected by infrastructural CRM resources rather than technological CRM resources. Moreover, the findings indicate that firms with improved CRM process capabilities enjoy better organizational performance.     

Asymmetric responses of house prices to changes in the mortgage interest rate: evidence from the Australian capital cities

We examine the dynamic and asymmetric responses of house prices to changes in mortgage interest rates in Australia from January 1995 to November 2017. We propose a threshold intervention model to distinguish between the effects of positive versus negative changes in the standard variable interest rate. The results indicate that rising interest rates decrease house prices more than falling interest rates increase them. For example, a 1% decrease in interest rates increases Sydney’s house prices by 0.7%, whereas a 1% increase leads to a 1.5% fall. The findings also support the view that when interest rates are on the rise, house prices in larger capital cities such as Sydney and Melbourne fall faster than in their smaller counterparts. Our findings imply that a rise in interest rates may thus lead to sharp, fast and significant falls in house prices, a phenomenon which will not simply be a symmetric unwinding of earlier price increases.     

An integrative framework for customer switching behavior

Due to increased intensity of competition, retention of customers has become a major concern in many service industries. Although researchers have investigated customer switching intention and its influential factors, the complex structural mechanisms that reduce the likelihood of switching intention in the field of financial services, especially in the banking context, have remained understudied. This paper addresses the role of customer satisfaction, customer loyalty, customer trust, and customer perceived value within a new conceptual model for customer switching intention in the banking services. In particular, the paper contributes to examine the potential moderating effect of switching barriers on the relationship between customer loyalty and switching intention as well as the relationship between satisfaction and switching intention of customers in the banking services. Data are collected through a questionnaire survey, and partial least squares-structural equation modeling is used for data analysis. Empirical results confirm the proposed model and hypotheses and show that switching barriers strengthen the impact of both customer loyalty and satisfaction on switching intention. The findings of this research offer a unified view of the structural relationships that contribute to reduced switching intention and provide more in-depth insights into the role of switching barriers in the banking context.     

An empirical study of an interactive,session-oriented computerized Negotiation Support System (NSS)

Negotiating is one of the four major decisional roles played by managers. In fact, resolving conflict is said to occupy 20% of a manager's working hours. This growing frequency of negotiation scenarios coupled with the increasing complexity of the issues which need to be resolved in a negotiation make the possibility of computer enhancement for negotiation very appealing. Implementations of computerized Negotiation Support Systems (NSS) in the business world, international affairs, labor law, and environmental and safety disputes have demonstrated their potential for making negotiation problems more manageable and comprehensible for negotiators. Still, pioneers in NSS research have expressed their dismay at the lack of rigorous empirical research and evaluation of NSS. In particular, research is needed which will determine how and under what circumstances negotiation processes can be enhanced by NSS support.This article describes empirical research on the effects of a highly structured, interactive NSS on the outcome of face-to-face issues resolution and the attitudes of negotiators in both low- and high-conflict situations. In a laboratory experiment, bargaining dyads played the roles of manufacturers negotiating a four-issue, three-year purchase agreement for an engine subcomponent in conditions of high and low conflict of interest. The results of the study showed that NSS support did help bargainers achieve higher joint outcomes and more balanced contracts, but that the NSS support increased negotiation time. Satisfaction was greater for NSS dyads in both conflict levels, and perceived negative climate was reduced in low conflict.One primary implication of the results of this study is that NSS developers should keep in mind the importance of providing users with a system with interactive qualities which not only enhance the decision-making process but also provide them with a sense of participation in reaching the solution, as was done in this study.