The Subprime Panic*

Understanding the ongoing credit crisis or panic requires understanding the designs of a number of interlinked securities, special purpose vehicles, and derivatives, all related to subprime mortgages. I describe the relevant securities, derivatives, and vehicles to show: (1) how the chain of interlinked securities was sensitive to house prices; (2) how asymmetric information was created via complexity; (3) how the risk was spread in an opaque way; and (4) how trade in the ABX indices (linked to subprime bonds) allowed information to be aggregated and revealed. These details are at the heart of the origin of the Panic of 2007. The events of the panic are described.     

Influence of demographic factors and ownership type upon organizational learning culture in Chinese enterprises

This empirical study, using Western concepts incorporated into the Dimension of Learning Organization Questionnaire (DLOQ) instrument and data collected from 919 employees in nine companies located in Guangdong Province, China, explored organizational learning culture in Chinese business settings. Findings suggest that the DLOQ is applicable to the Chinese context, and demographic variables, such as age and educational level, and the type of ownership of Chinese companies (state‐owned enterprises and privately owned enterprises), show differences in organizational learning culture. Discussions and implications are provided.     

Music format effects in radio advertising

Radio advertising performance was experimentally investigated to determine whether music format can moderate the persuasive effect of ads for low involvement type products. Recall, attitude toward the product, attitude toward the advertisement, and behavioral intention scores each provide support for the research hypothesis. As predicted, a highly involving music format produced the most consistently favorable effects for the products tested.     

An evolving theory of hybrid distribution: Taming a hostile supply network

Suppliers attempting to expand markets through hybrid distribution have created a complex, potentially hostile environment that reaches beyond dyads to network relationships. We offer a multi-theoretic paradigm that uses the network, social capital, structural holes and distributive fairness literatures to guide suppliers in the transition of governing hybrid channels so that when markets do overlap, cooperation and competition can effectively co-exist within the supply network. Specifically, we propose that social capital, structural holes, trust, and distributive fairness can be used to govern the effectiveness of cooperation and competition among hybrid channels and yield higher performance within the supply network. A corresponding propositional inventory is offered.     

Hoarding behavior among consumers: Conceptualization and marketing implications

In the western world, and in the United States in particular, there has been an abundance of food, materials and fuel over the past several decades. However, many futurists suggest this condition will soon change and a wide range of scarcities will result. Conditions in underdeveloped countries suggest one probable reaction to shortages in hoarding. In light of the predicted shortages this paper (1) develops definition and conceptualization of what constitutes hoarding, and (2) examines the influence hoarding activities have on channel decisions. An overriding purpose of the paper is to generate interest and research into the topic before conditions necessitate that concern.     

Learning to Build a Car: An Empirical Investigation of Organizational Learning

abstract    This study provides a longitudinal empirical examination of the basic elements of Nonaka's (1994 ) dynamic theory of organizational knowledge creation. First, the data illustrate the notion that knowledge creation in organizations proceeds through an intertwined four-phase process: (1) socialization (tacit knowledge amplification); (2) externalization (tacit knowledge is transformed into explicit knowledge); (3) combination (explicit knowledge amplification); and (4) internalization (explicit knowledge is transformed into tacit knowledge). Second, the study extends Nonaka's theory by comparing the relative amount of intra-organizational knowledge transfer occurring during periods of product redesign with the amount of knowledge transfer occurring during steady-state periods. The questionnaire data suggest that the overall level of knowledge transfer is higher during periods of product redesign than it is during the steady state, whereas the interview data indicate that there were more mentions of knowledge transfer during the steady state. Third, the data suggest that there may be benefit in adding tacit error correction as a fifth phase in the learning cycle. This phase is characterized by a dual emphasis on externalization and internalization. Implications of these findings are discussed.     

Noncash Income Transfers and Agricultural Land Values

Several studies have considered the impact of government cash income transfers to agricultural producers on agricultural land prices. This study examines the effects of a noncash income transfer on agricultural land prices. The impact of the U.S. sugar program on irrigated land prices in Montana is evaluated using a hedonic regression model. The model considers the impacts of sugar beet price and land characteristics on land prices. The results indicate that noncash income transfers generated by the U.S. sugar program have been capitalized into cropland prices.