An empirical analysis of continuing improvements following the implementation of a performance-based compensation plan

Performance improvements subsequent to the implementation of a pay-for-performance plan can result because more productive employees self-select into the firm (selection effect) and because employees allocate effort to become more effective (effort effect). We analyze individual performance data for 3,776 sales employees of a retail firm to evaluate these alternative sources of continuing performance improvement. The incentive plan helps the firm attract and retain more productive sales employees, and motivates these employees to further improve their productivity. In contrast, the less productive sales employees’ performance declines before they leave the firm.     

A Cross-Cultural Investigation of the Ethical Values of Consumers: The Potential Effect of War and Civil Disruption

Past research has examined the ethical judgments of consumers in the U.S., but few studies have investigated such attitudes in foreign-market settings. The current study compares ethical attitudes of consumers in two countries (Ireland and Lebanon) which share a cultural similarity of ongoing war and terrorism. The findings reveal that both cultures exhibit low sensitivity to ethical issues. Furthermore, the findings show that the Irish consumers are less sensitive to consumer ethical practices, less idealistic, more relativistic, and more Machiavellian than Lebanese consumers. The authors recommend that other researchers need to further investigate this perplexing issue because ethics is a research topic which often discourages survey respondents to be candid.     

Informational Costs and Institutional Typologies: A Review Article

Books reviewed in this article:
Mark Casson, Information and Organisation. A New Perspective on the Theory of the Firm
Takao Shiba and Masahiro Shimotani (eds), Beyond the Firm. Business Groups in International Historical Perspective     

Employee Participation in Cause-Related Marketing Strategies: A Study of Management Perceptions from British Consumer Service Industries

The purpose of cause-related marketing (CRM) is to publicise and capitalise on a firm??s corporate social performance (CSP) by enhancing its legitimacy in the eyes of its stakeholders. This study focuses on the firm??s internal stakeholders ?C i.e. its employees ?C and the extent of their involvement in the selection of social campaigns. Whilst the difficulties of managing a firm that has lost or damaged its legitimacy in the eyes of its employees are well known, little is understood about the extent to which managers and their social partners listen to and involve their employees in the legitimation process. Through telephone interviews with non-profit organisations and senior managers of service sector firms, the extent of employee involvement in CRM campaigns and the perceived benefits of doing so are investigated.?Amongst other things, we find that (i) the extent of employee participation varies significantly across firms; (ii) larger CRM campaigns tend to be managed centrally with relatively less employee participation than smaller ones and (iii) financial services firms are more likely to make CRM decisions centrally, with relatively less employee participation than retail services firms.     

How Would an Appreciation of the Renminbi and Other East Asian Currencies Affect China's Exports?

China's global current account surplus equaled 9% of Chinese GDP in 2006 and 11% of GDP in 2007. Many argue that a renminbi appreciation would help to rebalance China's trade. Using a panel dataset including China's exports to 33 countries we find that a 10% renminbi (RMB) appreciation would reduce ordinary exports by 12% and processed exports by less than 4%. A 10% appreciation of all other East Asian currencies would reduce processed exports by 6%. A 10% appreciation throughout the region would reduce processed exports by 10%. Since ordinary exports tend to be simple, labor-intensive goods while processed exports are sophisticated, capital-intensive goods, a generalized appreciation in East Asia would generate more expenditure-switching towards US and European goods and contribute more to resolving global imbalances than an appreciation of the RMB or of other Asian currencies alone.