Factorial and discriminant analyses of environmental sensitivity and initiative of Nigerian firms

The issue of environmental protection has been of interest to Africa just as it is to the rest of the world. Such rising interest in environmental protection has resulted in a number of environmentally friendly initiatives, such as landscaping, by firms in Nigeria. This article adopts the organizational buying behavior theory to study a comprehensive list of potential facilitators of landscaping adoption and to discriminate between organizational adopters and nonadopters in Nigeria. The data were factor‐analyzed to determine the key dimensions of facilitators. On the basis of the resulting dimensions, discriminant analysis was conducted. The results show that environmental factors, organizational factors, and managerial factors are important discriminants. The findings are salient in environmental management in Africa, and in designing strategies for landscaping services marketing and landscaping diffusion. © 2011 Wiley Periodicals, Inc.     

Monetary policy for an open economy: an alternative framework with optimizing agents and sticky prices

The 'new open-economy macroeconomics' seeks to provide an improvedbias for monetary and exchange-rate policy through the constructionof open-economy models that feature rational expectations, optimizingagents, and slowly adjusting prices of goods. This paper promotesan alternative approach for constructing such models by treatingimports not as finished consumer goods but rather as raw-materialinputs to the home economy's productive process. This treatmentleads to a clean and simple theoretical structure that has someempirical attractions as well. A particular small-economy modelis calibrated and its properties exhibited, primarily by meansof impulse response functions. The preferred variant is shownto feature a pattern of correlations between exchange-rate changesand inflation that is more realistic than provided by a morestandard specification. Important recent events are interpretedin light of the alternative models.     

Linking Product Development Outcomes to Market Valuation of the Firm: The Case of the U.S. Pharmaceutical Industry*

The purpose of this research was to examine empirically the effects of new product development outcomes on overall firm performance. To do so, first product development and finance literature were connected to develop three testable hypotheses. Next, an event study was conducted in order to explore whether the changes in the stock market valuation of firms are influenced by the outcomes of efforts to develop new products. The pharmaceutical industry was chosen as the empirical context for the present study's analysis largely because the gate‐keeping role played by the Food and Drug Administration (FDA) provides a specific event date on which to focus the event study methodology. As such, this study's events were dates of public announcements of the FDA decisions to approve or to reject the New Drug Applications submitted by the sponsoring firms. Consistent with the efficient market hypothesis, this study's results show that market valuations are responsive strongly and cleanly to the success or failure of new product development efforts. Hence, one of this study's key results suggests that financial markets may be attuned sharply to product development outcomes in publicly traded firms. This study also finds that financial market losses from product development failures were much larger in magnitude than financial market gains from product development successes—indicating an asymmetry in the response of financial markets to the success and failure of new product development efforts. Hence, another implication of this study's results is that managers should factor in a substantial risk premium when considering substantial new development projects. The present study's results also imply that managers should refrain from hyping new products and perhaps even should restrain the enthusiasm that the financial community may build before the product fully is developed. The effect on firm value is severe when expectations about an anticipated new product are not fulfilled. Managers in effect should take care to build reasonable and realistic expectations about potential new products.     

Innovation Leaders: How Senior Executives Stimulate, Steer, and Sustain Innovation by Jean-Philippe Deschamps

I am honored to have been chosen as the Journal of Product Innovation Management's ( JPIM 's) new book review editor. First and foremost, I want to thank Preston Smith for making the transition an easy one. Preston's experience and insights have helped bring me up the learning curve. His patience was much appreciated.
Second, managing the book review process is certainly more complicated than I had imagined but is fascinating nonetheless. As in the development of any product or service there are many people involved in the creation process, and considerable planning takes place prior to actual publication.
Last but not least is my admiration for our JPIM book reviewers. The care and effort taken to create the quality book reviews that meet JPIM 's high standards requires critical thought and experience in new product development. We will continue to make our book reviews insightful, critical, and practical for you, our readers.
Books reviewed in this issue:

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  Innovation Leaders: How Senior Executives Stimulate, Steer, and Sustain Innovation
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  Understanding A3 Thinking: A Critical Component of Toyota's PDCA Management System
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  Value Merchants: Demonstrating and Documenting Superior Value in Business Markets

     

Demand responsive transport: towards the emergence of a new market segment

This paper focuses on recent British experience with telematics-based Demand Responsive Transport (DRT) services in rural areas. In recent years, the ability of DRT concepts to provide efficient, viable transport services has been greatly enhanced by the use of transport telematics as demonstrated in a variety of environments across Europe. The success of British local authorities in winning substantial funding under the Rural and Urban Bus Challenge programmes for the implementation of DRT has resulted in widespread interest in flexible forms of transport. It is thus timely to evaluate the impact of this substantial investment. Drawing on the experience of a number of UK schemes, the paper assesses the reasons for the new-found success of what is becoming a relatively well-accepted mode by concentrating on a variety of factors including: service characteristics (particularly route flexibility, flexibility of booking method and pre-booking regime), emerging markets and the overall contribution of DRT to increased social inclusion and intermodality. Impediments to the development of DRT services are highlighted. The paper also discusses current research into the next generation of DRT services and concludes by identifying some key issues for policy-makers concerned with the future implementation of DRT services.     

The evaluation of demand responsive transport services in Europe

Over the last decade Demand Responsive Transport (DRT) services have grown in popularity for several reasons including: the shortcomings of conventional regular bus and taxi services; shortcomings of special transport services; and new developments in community transport. Traditional dial-a-ride services have often been criticised because of their relatively high cost of provision, their lack of flexibility in route planning and their inability to manage high demand. The potential for overcoming these limitations may be realised through the introduction of telematics-based DRT and this has been widely demonstrated, for example, in recent research funded by the European Commission (e.g. the DGXIII-funded SAMPO and SAMPLUS projects). This paper provides an introduction to the concept of telematics-based DRT services and presents the results of the evaluation of a set of DRT technologies and operations at urban and rural sites across Europe. The paper offers discussion in terms of the key issues that influence the introduction of DRT services.