What hinders innovation performance of services and manufacturing firms in Mexico?

Barriers to innovation are heterogeneous, of financial and non-financial nature. The importance of barriers to innovation and their actual influence on innovation depend on firms’ characteristics such as sectoral affiliation, technological behavior and their response to perceived obstacles to innovation. Firms either continue to engage in innovation, or they avoid the activity altogether. This paper explored the nature and perceived importance of the obstacles to innovation that firms confront, in a developing-country context; we build on survey data about firms in Mexico. Our findings suggest that two kinds of policy interventions should help offset a firm’s perception of barriers to innovation. On the one hand, policies should enhance the innovation capacity of firms interested in innovation; on the other hand, policies need to tackle factors that reduce the interest of firms in innovation. Policies that boost demand for locally generated innovations would assist in achieving both these goals.     

You can take it with you: Proposition 13 tax benefits,residential mobility,and willingness to pay for housing amenities

The endogeneity of prices has long been recognized as the main identification problem in the estimation of marginal willingness to pay (MWTP) for the characteristics of a given product. This issue is particularly important in the housing market, since a number of housing and neighborhood features are unobserved by the econometrician. This paper proposes the use of a well defined type of transaction costs–moving costs generated by property tax laws–to deal with this type of omitted variable bias. California's Proposition 13 property tax law is the source of variation in transaction costs used in the empirical analysis. Beyond its fiscal consequences, Proposition 13 created a lock-in effect on housing choice because of the implicit tax break enjoyed by homeowners living in the same house for a long time. Its importance to homeowners is estimated from a natural experiment created by two amendments that allow households headed by an individual over the age of 55 to transfer the implicit tax benefit to a new home. Indeed, 55-year old homeowners have 25% higher moving rates than those of comparable 54 year olds. These transaction costs from the property tax laws are then incorporated into a household sorting model. The key insight is that because of the property tax laws, different potential buyers may have different user costs for the same house. The exogenous property tax component of this user cost is then used as an instrumental variable. I find that MWTP estimates for housing characteristics are approximately 100% upward biased when the choice model does not account for the price endogeneity.     

Stock picking,market timing and style differences between socially responsible and conventional pension funds: evidence from the United Kingdom

As far as we are aware, this study presents the first comparative analysis of the stock picking and market timing abilities of managers of conventional and socially responsible (SR) pension funds, and of their use of superior information. For the United Kingdom, the results obtained show a slight stock picking ability on the part of SR pension fund managers (although it disappears if multifactorial models are considered), and a negative market timing ability on the part of both SR and conventional pension fund managers (these results hold for multifactorial models controlled by home bias). In relation to the management styles, both conventional and SR pension funds usually invest in small cap and growth values, although it is the SR pension funds that are the most exposed to these styles. We also observed that, while conventional pension fund managers make certain use of superior information to follow stock picking strategies, managers of SR pension funds use superior information to follow market timing strategies.     

Implications of perceived competitive advantages,adaptation of marketing tactics and export commitment on export performance

The aim of this exploratory paper is to fill an important gap in the international marketing literature by examining the influence of firm behavior in foreign markets (export commitment and adaptation of marketing tactics) on perceived competitive advantages and export performance. Using a sample of 150 Spanish export firms, the study found that firms that are more committed to their foreign markets are more willing to adapt elements of the marketing program. These firms also perform better in foreign markets. Moreover, the results also point out that adapting marketing tactics does not have direct effects on export performance, although it does have on the achievement of perceived competitive advantages in foreign markets, which positively influence export performance.     

Cross-Border Shopping: A Survey

The aim of this paper is to undertake a review of the most important literature on the phenomenon of fiscally induced cross-border shopping. Following the presentation of the principal theoretical models, the study concentrates on applied literature. Firstly, the elements common to the diverse applications are described, and then, a detailed analysis of the research undertaken into cross-border shopping for alcoholic drinks, tobacco, fuel, and lotteries is provided, concluding with a reference to the interaction between cross-border purchases and those effected over the internet. The results achieved by the empirical research coincide and support the principal result of the theoretical literature: the tax differentials between neighboring territories induce consumers to purchase in the territory where taxation is lower, on the condition that the tax saving compensates for the transport costs associated with the travel made by the purchaser in order to take advantage of the lower taxation.     

Feature selection methods involving support vector machines for prediction of insolvency in non‐life insurance companies

We propose two novel approaches for feature selection and ranking tasks based on simulated annealing (SA) and Walsh analysis, which use a support vector machine as an underlying classifier. These approaches are inspired by one of the key problems in the insurance sector: predicting the insolvency of a non‐life insurance company. This prediction is based on accounting ratios, which measure the health of the companies. The approaches proposed provide a set of ratios (the SA approach) and a ranking of the ratios (the Walsh analysis ranking) that would allow a decision about the financial state of each company studied. The proposed feature selection methods are applied to the prediction the insolvency of several Spanish non‐life insurance companies, yielding state‐of‐the‐art results in the tests performed. Copyright © 2005 John Wiley & Sons, Ltd.     

Higher education and firms: on the interaction between research and regional policies

In the European Union, a series of competencies are shared between a central agency called the European Commission, and the governments of the Member States. This paper focuses on two of those policies: research and regional development. Here, we model and discuss how the level of commitment of a central authority toward poor regions affects the design of the best decision-making process. We explore cases of full centralization and full decentralization, and situations where the two levels of government are allowed to take decisions, either simultaneously or sequentially. In the latter case, we make a distinction between a situation where the central agency decides first as in most federations, and one in which it decides second, then being an agent of national governments. This setting is especially relevant for the European Union. We show, in particular, that when the degree of commitment of the center is high, assignment of redistributive competencies to both levels of power is a proxy for centralization. Additionally, the poorer region may find its best interest in an institutional design where the regions decide first.     

Behaviour‐Based and Outcome‐Based Control Systems: A Meta‐Analytic Study

Sales control systems are instruments used by firms to improve performance and other organizational outcomes. To understand their antecedents and consequences, this paper conducts a meta‐analysis based on 104 studies. The results showed significant relationships between behaviour‐ and outcome‐based control systems and the complexity of the products, bonuses, financial performance, sales innovation, organizational support and satisfaction with supervisors. The outcomes revealed that behaviour‐based control systems were the most effective mechanism in turbulent markets and for determining financial performance. However, outcome‐based control systems were the most efficient instrument for complex products.     

Regaining Missed Opportunities: The Role of Tourism in Post-war Development in Sri Lanka

Sri Lanka had the opportunity to become one of the best tourism countries (TCs) in Asia immediately after independence in 1948. However, it missed opportunities on a number of occasions due to inappropriate economic policies, continuous political violence and war. Between 1983 and May 2009 the Sri Lankan tourism sector was seriously affected by nearly three decades of separatist war. Immediately after the end of the war, tourism in Sri Lanka bounced back and it has now become one of the main engines of economic growth in post-war Sri Lanka. In this article, a historical analysis has been undertaken to demonstrate how, despite its large tourism potential, Sri Lanka missed opportunities and fell far behind its Asian counterparts on a number of occasions. This article demonstrates that opportunities exist for the Sri Lankan tourism sector to play a vital role in the current post-war inclusive development strategy in terms of generating much needed foreign exchange, poverty alleviation via employment generation, accelerating economic growth and uplifting living standards of all Sri Lankans.     

An Alternative Approach to the Measurement of Emotional Attachment

Emotional attachment (EA)—the emotional bond connecting an individual with a specific target—has been identified as an important construct within the marketing domain. Despite all the research, there is no consensus on how the construct should be measured. A major factor contributing to this confusion is that current definitions and, consequently, scales of EA focus on describing reactions toward specific referents of attachment rather than on capturing the extent of emotion an individual feels; hence, hindering construct validity. In this article, the authors scrutinized the concept validity of EA. After defining the construct, scale development procedures were followed to propose an alternative one‐dimensional scale that reflects the abstract nature of EA. Three studies support the scale's reliability as well as the discriminant, convergent, criterion, and nomological validity of the measure. The studies tested the scale under different marketing contexts. Moreover, by employing the new measure, the findings showed that EA and self‐concept maintenance (SCM) are related, yet different constructs. Specifically, the results showed that these constructs interact to predict willingness to pay (WTP) for a brand such that when SCM is low, WTP is predicted by EA. However, when self‐concept is high, the effect of EA on WTP is not that strong. This new scale will help researchers extend research on EA to a broader set of contexts, explore the relationship between EA and related constructs, develop nomological networks, and prevent the confounding of terms.