Economic Success Factors in Spanish Small Retail Businesses. An Analysis Based on Sector-Relative Definitions

The purpose of this study was to carry out a sectorial analysis of the strategic profile of successful small businesses in Spanish retailing. First, a one-dimensional statistical formalisation of the concept of small business was proposed, based on yearly sales revenue and relative to the sector. Likewise, some statistical formalisations of the concept of economic success were proposed, based on profit margins and also relativised according to sector. Once a conceptual framework was established, a sectorial model of strategic characterisation of successful small retailing firms was developed. The results of applying these proposals to the Spanish retail industry confirmed the importance of a sectorial approach as opposed to an overall analysis. This revised version was published online in August 2006 with corrections to the Cover Date.     

The management perception of the strategic outsourcing of services: An empirical examination in the hotel sector

This work will analyse the strategy of outsourcing, or the predisposition on the part of a firm to entrust some of its services to a third party. The research will focus on discovering empirically the role that this strategy plays in hotels, and in order to do this we will carry out an analysis of hotel managers' perceptions regarding outsourcing based on the main advantages as well as the drawbacks and barriers which using the strategy can involve, with a view to determining which of these are related to a predisposition to outsource. The results of the research suggest that the main reasons which determine outsourcing are of a strategic rather that cost-reducing nature. Despite the fact that although current outsourcing is conditioned by the cost factor alone, any future increase in the use of the strategy will be determined exclusively by factors of a strategic nature. With respect to the disadvantages of outsourcing which tend to limit the use of the strategy, we will see that these are related to loss of control and autonomy together with a distrust of external suppliers. This work will enable us to assess the extent of the existing demand for outsourcing main services as well as those factors which determine and limit the outsourcing strategy and which have prevented a large number of services where outsourcing would be applicable from being outsourced to the present date. Finally we will present our main conclusions and recommendations.     

Motives for Corporate Philanthropy in El Salvador: Altruism and Political Legitimacy

This paper discusses how Salvadoran companies practice corporate philanthropy in El Salvador, and what might motivate it. First, I briefly discuss three principal theories of corporate philanthropy, and explore some current trends in international corporate philanthropy to highlight some of the motives Salvadoran companies may have to participate in charitable activities. Then, I discuss the history of the Salvadoran private sector to help us understand philanthropic activity today. Next, I suggest that philanthropic acts by Salvadoran firms are driven by altruistic and politically strategic motives, and reflect individualistic and paternalistic attitudes. In the discussion, I include examples of Salvadoran corporate philanthropy as it is practiced today, based on recent field research in El Salvador.     

What Drives Clarity of Central Bank Communication About Inflation?

This paper examines whether the clarity of central bank communication about inflation varies with the economic environment. Using readability statistics and content analysis, we study the clarity of communication on the inflation outlook by seven central banks across three continents during the recent decade. We uncover significant and persistent differences in clarity over time and across countries. However, identifying determinants of clarity that are robustly relevant across our sample of central banks proves elusive. Overall, our findings suggest that a single model for clarity of central bank communication is not appropriate. Rather, when studying clarity of communication, country-specific and institution-specific factors are highly relevant.     

Rose effect and the euro: is the magic gone?

This paper presents an updated meta-analysis of the effect of currency unions on trade, focusing on the euro area. Using meta-regression methods such as the funnel asymmetry test, evidence for strong publication bias is found. The estimated underlying effect for currency unions other than the eurozone reaches more than 60%. However, according to the meta-regression analysis, the euro’s trade promoting effect corrected for publication bias is insignificant. The Rose effect literature shows signs of the economics research cycle: reported t-statistic is a quadratic concave function of the publication year. Explanatory meta-regression (robust fixed effects and random effects), that can explain about 70% of the heterogeneity in the literature, suggests that results published by some authors might consistently differ from the mainstream output and that study outcomes are systematically dependent on study design (usage of panel data, short- or long-run nature, number of countries in the data set).     

Liquidity Pools, Risk Sharing, and Financial Contagion

This paper reevaluates the Allen–Gale (2000) analysis of interbank deposits to explain financial contagion. This paper modifies the pecking order of asset liquidation developed in Allen–Gale, which is essential in fragility analysis. Furthermore, we also provide a claim structure called liquidity pool that can both achieve risk sharing and prevent financial contagion across regions when asymmetric information about bank assets is absent. This model can partly explain why bank panics reduced substantially after the founding of the Fed and the role of IMF in regional financial crises.     

Intrapreneurship model in the software industry

Quality & Quantity - The complexity of business dynamics demands that companies search for alternative ways to ensure their growth and survival. Thus intrapreneurship emerges as an ad-hoc...