An analysis of commonality in the twin metropolitan areas of San Diego, California, and Tijuana, Mexico

A new application of spatial analysis is developed and applied to study the international twin metropolitan region of Tijuana, Mexico, and San Diego, California. Information on 16 variables from the US and Mexican censuses are merged in a common framework. A two-stage cluster analysis is applied to small area samples to determine metropolitan zones with common sets of characteristics. The results of the cluster analysis are spatially mapped and analyzed. This is done for all 16 variables, as well as for four variable groups that are determined through literature review and experience, and for an alternative set of variable groups derived from the data. The extent of commonality, defined as the similarity between socioeconomic and demographic profiles of the population in the San Diego-Tijuana region, is examined through the development of a commonality index that is determined by the extent of cluster overlap on both sides of the border. The findings are interpreted with respect to the research literature. The methods can be applied within academic research or in the planning of border cities having consistent data sets on both sides.     

CEO Power and Firm Performance under Pressure

Are powerful chief executive officers (CEOs) more effective in responding to pressure from the economic environment? Concentrating decision‐making power may facilitate rapid decision making; however, the quality of decision making may be compromised, with severe consequences for the firm if a powerful CEO is less likely to receive independent advice or to have her decisions scrutinized. We empirically investigate the performance of firms with powerful CEOs when industry conditions deteriorate. We focus on industry downturns as these represent an exogenous shock to a firm's environment and on settings in which CEO power and access to quality information is likely more consequential: innovative firms, firms with relatively little related‐industry board expertise, firms operating in competitive industries, and firms operating in industries characterized by relatively greater managerial discretion. In each of these settings we find powerful CEOs perform significantly worse than other CEOs, suggesting contexts in which centralized decision making is potentially of greater concern.     

Payout policies and closed-end fund discounts: Signaling, agency costs, and the role of institutional investors

The adoption of a managed distribution policy or plan (MDP) by closed-end funds appears effective in dramatically reducing, even eliminating, fund discounts. We investigate two possible explanations: the signaling explanation proposed in the literature, that the MDP serves as a positive signal of future fund performance, and an alternative explanation based on agency costs. Our results indicate that signaling is, at best, only part of the explanation and that the evidence is generally more consistent with the agency cost hypothesis. For funds adopting aggressive payout targets of 10% (median target) and above, discounts tend to disappear, though there is no discernible improvement in NAV performance. Consistent with the agency cost hypothesis, it is often pressure from institutions/large shareholders that leads to the adoption of aggressive payout policies. Moreover, aggressive-MDPs are associated with a decrease in fund size and managerial fees. Suggestive of their activist role in MDP adoptions and/or informed trading, institutions – especially ones that are Value oriented – tend to build-up their holdings in a fund prior to the adoption of an aggressive-MDP, and liquidate their positions once the price rises.     

The Conceptualization and Measurement of Suppliers' Reputation Display in Asymmetric Marketing Relationships

In asymmetric buyer-supplier relationships, suppliers typically possess more information about the object of an exchange. To ameliorate customers' evaluation problems, suppliers use signals to promise the delivery of a certain quality level to the market. A commonly used supplier signal in asymmetric markets is the manner in which reputation is displayed to buyers. While the marketing literature recognizes the role of reputation in structuring such asymmetric buyer-supplier relationships, relatively little research effort has been directed at the conceptualization and measurement of suppliers' reputation display. To address this gap, I adopt an interdisciplinary perspective and conceptualize suppliers' reputation display as a multi-dimensional construct. Specifically, I argue that suppliers' reputation display represents a latent consisting of three distinct dimensions; (i) specific investments, (ii) advertising intensity, and (iii) certification. The preceding conceptualization implies that reputation display signals a suppliers' past and future conduct to the marketplace. For example, by displaying certification, suppliers expect the market to infer certain firm attributes based on past actions. Likewise, suppliers' investments in advertising and specific assets may provide a signal of future honest behavior to the marketplace. I empirically validate this three factor conceptualization of reputation display by utilizing the technique of Latent Variable Structural Equations Modeling (LVSE). Empirical tests conducted on data obtained from 287 automotive service managers via mail survey support the three factor model of reputation display.     

The determinants of foreign giving: An exploratory empirical investigation of US manufacturing firms

To date, there is ample evidence on the determinants of domestic charitable contributions made by US firms. However, to the best of our knowledge, no one has investigated the determinants of foreign charitable contributions made by US firms. Using the Socrates KLD database and the US M&A data for the 2004–2010 period, we find evidence that foreign giving by US manufacturing firms is linked to certain key variables. Specifically, we find evidence that variables found significant in the domestic giving literature (pre entry return on assets, size, debt to asset ratio, market to book ratio, and research and development expense as a function of sales) are also found significant for foreign giving. However, and notably, cultural distance and foreign sales percentage have been found to be important discriminators between manufacturing firms who give abroad and those who do not. It appears that high international business experience (proxied by the foreign sales ratio) and operations in culturally distant countries motivate foreign giving. Finally, subsample analysis involving developed and developing countries suggests that cultural distance matters for developing countries, but does not for the developed country subsample. Firm level profitability matters for developed countries, but not for developing countries. Future research may be expanded to include the dollar amounts of giving and a bigger sample size. Differences in foreign giving patterns between manufacturing and non-manufacturing firms, and by firms in countries other than the US, may also be explored.     

Optimal freeware quality in the presence of network externalities: an evolutionary game theoretical approach

New software products often face difficulty in achieving market penetration. A potential remedy is to offer a freeware version of the software to encourage initial adoption and establish a larger user base for the software, thereby increasing the commercial version's value to adopters in future periods. However, to avoid complete cannibalization of the commercial version, the freeware version's quality must be sufficiently low and the price of the commercial version must not be too high. We model the effect of these two decision variables, price and freeware quality, on the adoption of software using static and evolutionary game theory.     

Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry

This study explores the importance of cross‐border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and local entrepreneurs in India's software industry. We find that local entrepreneurs who have previously lived outside India rely significantly more on diaspora networks for business leads and financing. This is especially true for entrepreneurs who are based outside software hubs—where getting leads to new businesses and accessing finance is more difficult. Our results provide micro‐evidence consistent with a view that cross‐border social networks play an important role in helping entrepreneurs to circumvent the barriers arising from imperfect domestic institutions in developing countries.     

In the Name of the Practical: Unearthing the Hegemony of Pragmatics in the Discourse of Environmental Management*

abstract A prominent feature of the rapidly growing field of Environmental Management (EM) is its strong emphasis on pragmatic considerations. Much of EM's legitimacy stems from its own identity as having practical relevance in resolving contemporary environmental problems. With the help of Critical Discourse Analysis, our paper engages closely with the language of practicality in Environmental Management. We show how the message of practicality emerged through three core messages in the discourse, viz. economic utilitarianism, compromise and inter‐organizational collaboration. We further contend that in the actual material context of the complex biospheric environment, these messages may have less than pragmatic implications. We conclude with a discussion of ecological rationality in redefining the discourse of pragmatics in Environmental Management.