The Self‐Help Myth: Towards a Theory of Philanthropy as Consensus Broker

This article presents a theoretical and methodological approach to studying how philanthropic power is maintained through the process of negotiating consensus between greatly unequal partners such as wealthy funders and social movement leaders. It is proposed that grant agreements between private foundations and social movement organizations construct idealized spaces of public participation and discursive theories of change that draw attention away from structural inequality and antagonism, ultimately generating consent. Drawing upon archival and ethnographic research on philanthropic investments in addressing migrant poverty in California's Central Valley, the article shows how consensus between foundation staff and farmworker and immigrant organizers promote funding frameworks that exclude questions that challenge relationships of power and systems of agricultural production that contribute to enduring poverty across the region. The Gramscian conceptual frames of “discursive power,” “hegemony as politics,” and “strategic articulation” are presented as a theoretical framework from which to understand the power of private philanthropy as consensus broker during historical moments of crisis.     

Gender differences in business performance: evidence from the Characteristics of Business Owners survey

This paper compares the technical efficiency of small and medium-sized enterprises (SMEs) with that of large firms and studies the factors influencing technical efficiency for Taiwan’s electronics industry. Unlike conventional studies, we use two alternative approaches to control for the influence of size effect. One is the two-stage switching regression to correct for endogenous size effect on technical efficiency and, the other is, a metafrontier production function for firms in different groups. The main results are as follows. First, the average technical efficiency for large firms is higher than that of SMEs, without considering the size effect, and lower when considering the endogenous choice on firm size. This study cannot, therefore, conclude that there is a negative size–technical efficiency relationship. It however, sheds light on the importance of size effect on the size–technical efficiency nexus. Second, the estimates on the determinants of technical efficiency show that being a subcontractor has a statistically significant positive influence on SMEs’ technical efficiency, but the effect decreases with firm size.

Community connectivity and heterogeneity: clues and insights on cooperation on social networks

While studies on the emergence of cooperation on structured populations abound, only few of them have considered real social networks as the substrate on which individuals interact. As has been shown recently [Lozano et al., PLoS ONE 3(4):e1892, 2008], understanding cooperative behavior on social networks requires knowledge not only of their global (macroscopic) characteristic, but also a deep insight on their community (mesoscopic) structure. In this paper, we look at this problem from the viewpoint of the resilience of cooperation, in particular when there are directed exogenous attacks (insertion of pure defectors) at key locations in the network. We present results of agent-based simulations showing strong evidence that the resilience of social networks is crucially dependent on their community structure, ranging from no resilience to robust cooperative behavior. Our results have important implications for the understanding of how organizations work and can be used as a guide for organization design. This work was supported by Ministerio de Educación y Ciencia (Spain) under grants FIS2006-13321-2 and MOSAICO and by Comunidad de Madrid (Spain) under grant. SIMUMAT-CM. S. Lozano was supported by URV through a FPU grant and by the EU Integrated Project IRRIIS (027568).     

History and Coordination Failure

An extensive literature discusses the existence of a virtuous circle of expectations that might lead communities to Pareto-superior states among multiple potential equilibria. It is generally accepted that such multiplicity stems fundamentally from the presence of positive agglomeration externalities. We examine a two-sector model in this class and look for intertemporal perfect foresight equilibria. It turns out that under some plausible conditions, positive externalities must coexist with external diseconomies elsewhere in the model, for there to exist equilibria that break free of historical initial conditions. Our main distinguishing assumption is that the positive agglomeration externalities appear with a time lag (that can be made vanishingly small). Then, in the absence of external diseconomies elsewhere, the long-run behaviour of the economy resembles that predicted by myopic adjustment. This finding is independent of the degree of forward-looking behavior exhibited by the agents.     

Evaluating the sustainability of the gray-whale-watching industry along the pacific coast of North America

This paper reports on the first study to critically examine the sustainability of whale-watching practices along the entire migratory range of a pelagic baleen whale species, the gray whale (Eschrichtius robustus). Commercial boat-based whale-watching operations along the west coast of North America were observed for sustainable practices. Data recorded aboard whale-watching vessels and collected via an online survey were integrated into the Lean Six Sigma quality-improvement tool, in order to review business processes and identify where inefficiency or ineffectiveness exists in specific phases within a process. Whale-watching practices were analyzed using this method for 24 whale-watching companies operating in Canada, the United States and Mexico. The results show a high level of variation in management regimes, and operator non-compliance with guidelines, and highlight avenues to eliminate, revise or reduce inefficiency, and improve practices in the interests of high-quality and sustainable operations. We recommend more specific and operational guidelines that allow operators to focus on high compliance with the most critical aspects of their business operation in order to build the sustainability of commercial tourist interactions with gray whales in their migratory range.     

Assessing the Effectiveness of Financial Coaching: Evidence from the Boston Youth Credit Building Initiative

Since the 2008 financial crisis, there has been renewed interest in providing financial education to improve consumer financial decision making, especially among youth. Using a randomized controlled trial, we estimate the causal effects of a financial coaching program for young adults from linked individual‐level administrative credit reports and self‐reported survey responses. Within six months, the treatment group was 10 percentage points more likely to have access to credit compared to the control group. After 18 months, the average credit score was 26 points higher for the treatment group versus the control group, raising the likelihood of achieving a “good” credit rating by 8 percentage points. Consequently, the treatment group was less likely to rely on alternative financial services and paid lower interest rates on car loans. These impacts are largely driven by improvements in self‐efficacy, offering important insights for policymakers seeking to incorporate financial education into youth workforce development programs.     

The Structural Pension Reform in Chile: Effects, Comparisons with Other Latin American Reforms, and Lessons

Chile pioneered a structural reform in Latin America that privatizedits public pension system and influenced similar reforms inanother nine countries. Twenty-five years later, this articleevaluates the macroeconomic, microeconomic, and social effectsof this reform in Chile and the other countries in the region,and extracts lessons from those experiences. Fiscal costs ofthe reform have been high and prolonged, exceeded capital accumulation,and had a negative impact on national savings, but Chile's reformhas contributed to the development of capital markets; employer'scontributions were eliminated or reduced in half of the countriesand the worker's share in the total contribution averages 65per cent; competition is afflicted by a small number of administratorsand a high level of concentration; administrative costs arehigh and stagnant; capital returns are fair but declining; portfoliodiversification has been achieved only in Chile and Peru; labour-forcecoverage has declined in all ten countries, and gender and incomeinequalities have expanded. Footnotes ¹ E-mail addresses: aarenas{at}dipres.gob.cl; cmesa{at}usa.net     

Gender differences in firm performance: Evidence from new ventures in the United States

Prior studies examining the performance of female- and male-owned firms have generally reported that female-owned firms underperform male-owned firms. However, it is conceivable that the performance measures used by previous studies and/or their inability to control for key demographic differences may have contributed to this finding. For example, few studies use size adjusted performance measures and yet we know that female-owned firms tend to be smaller than their male counterparts. Similarly, risk is typically not considered even though evidence suggests that women tend to be more risk averse than men. We use a longitudinal (five-year) database of more than 4000 new ventures that began operations in the U.S. in 2004 to determine whether potential differences in the performances of female- and male-owned firms disappear when appropriate performance measures are used and important demographic differences are controlled for in the models. The performance measures we examine include: 4-year closure rates; return on assets (ROA); and a risk-adjusted measure (Sharpe ratio). Univariate test results confirm our expectation (based on both liberal and social feminist theory) that there is no difference in the performance of female- and male-owned new ventures provided performance is appropriately measured. Further, these results are supported by our multivariate analyses, which control for demographic differences such as industry, experience and hours worked. Our findings should be of interest to researchers, financiers, advisors and policy makers. Perhaps more importantly, our findings should also ensure that women who are contemplating starting a new venture are not discouraged from doing so by a false belief that new ventures initiated by women are less likely to succeed than those initiated by men.     

Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective

The present study applies the lens of Institutional Theory to analyze the impact of a country’s entrepreneurial legitimacy on its entrepreneurial activity as well as on entrepreneurs’ access to financing. By creating a structural equation model of entrepreneurship in innovation-driven countries, the authors show that countries with greater entrepreneurial legitimacy have more entrepreneurial activity. The model was tested over a 5-year period, from 2009 to 2013. Results suggest that innovation-driven countries with more entrepreneurial legitimacy obtain greater rates of entrepreneurial activity. Further distinguishing among legitimacy types, cognitive legitimacy is shown to exert a stronger influence than regulative or normative legitimacy. The model also confirms a positive relationship between a country’s entrepreneurial legitimacy and access to financing. This occurs principally through regulative legitimacy. This study enlarges our knowledge of the existing differences in entrepreneurial activity among countries. It contributes to the literature on the country-level determinants of entrepreneurship, such as institutional conditions or financial access.