Argentina: Macroeconomic Crisis and Household Vulnerability*

Using panel data from the Argentine Permanent Household Survey, this paper analyzes which households were more vulnerable to the Argentine macroeconomic crisis during 1999–2002. Results suggest that the impact of the crisis was not uniform across households, which differed in their ability to cope with shocks. In particular, households with more children, and whose head was male, less educated, and employed in the private sector were the most vulnerable, suffering larger than average declines in income. Shocks to labor income were significant, with both unemployment rates and unemployment spells increasing throughout the period, particularly during the peak of the crisis towards the end of 2001. Individuals with low levels of human capital (proxied by education and experience), males, and self‐employed were more likely to lose their jobs. Public sector employees, in contrast, were more protected from the impact of the crisis on employment.     

A strategic contingency approach to expatriate assignment management

This exploratory study examines how expatriate management practices differ with respect to three international management strategies (local, centralised or global) in 27 mature multinational corporations. In particular, this study examines the categories of expatriate assignments, the strategic integration of expatriate assignments into leadership development and the types of human resource practices that firms utilise to manage expatriates. Results indicate that organisations differentially assign expatriates based on the firm's respective international management strategy. Firms with a global management strategy made greater use of developmental expatriates, had a greater number of senior managers with expatriate experience and had a stronger focus on leadership development through expatriation. Firms did not differ with respect to their use of expatriate management practices based on their international management strategy.     

Evaluating Industrial Relations Systems of OECD Countries from 1993 to 2005: A Two‐Dimensional Approach

This article uses both cross‐sectional and longitudinal methods to evaluate the national industrial relations systems of 30 Organisation for Economic Co‐operation and Development (OECD) countries from 1993 to 2005. We adopt a pluralistic view of industrial relations that gives equal weight to efficiency and equity, along with a general systems model consisting of input, process and output. We rank each country in terms of a combined score of efficiency and equity. We find that the 30 OECD countries can be separated into three distinct groups (high on both equity and efficiency; high on efficiency but low on equity; moderate on equity and low on efficiency), and that these groups exhibit considerable stability over time.     

Credit Chains and Mortgage Crises

Here I examine a production economy with a financial sector that contains multiple layers of credit. The latter constitute credit chains that include a simple mortgage market. The focus is on the nature and contagion properties of credit chains in an economy where the financial sector plays a real allocating role, and agents have a serious choice of whether to default on mortgages or not. Multiple equilibria with different rates of default are observed, due to the presence of strategic complementarities. A liquidity crunch is associated with higher rates of default that can trigger a financial crisis as well as constrain the purchase of production factors, leading to reductions in welfare, together with potentially serious effects on real economic activity with the potential of causing deep and widespread recessions.     

Shaping Ethical Perceptions: An Empirical Assessment of the Influence of Business Education,Culture, and Demographic Factors

Recent events at Enron, K-Mart, Adelphia, and Tyson would seem to suggest that managers are still experiencing ethical lapses. These lapses are somewhat surprising and disappointing given the heightened focus on ethical considerations within business contexts during the past decade. This study is designed, therefore, to increase our understanding of the forces that shape ethical perceptions by considering the effects of business school education as well as a number of other individual-level factors (such as intra-national culture, area of specialization within business, and gender) that may exert an influence on ethical perceptions. We found significant effects for business education, self-reported intra-national culture, area of specialization within business, and gender for some and/or all areas of ethics examined (i.e., deceit, fraud, self-interest, influence dealing, and coercion). One of our most encouraging findings is that tolerance for unethical behavior appears to decrease with formal business education. Despite the prevalent stereotype that business students are only interested in the bottom line or that business schools transform idealistic freshman into self-serving business graduates, our results suggest otherwise. Given the heightened criticism of the ethicality of contemporary managerial behavior, it is heartening to note that, even as adults, individuals can be positively affected by integration of ethics training.     

Corporate Frauds as Criminal Business Models: An Exploratory Study

In this article, we report on the findings of an exploratory, interpretive study of a notorious corporate fraud that occurred in Brazil from 1989 to 2005. We examine the process by which this scheme was created as well as how it was maintained for all those years. Our analysis covers both the substantive aspects (the actions fraud agents effectively perform) and the symbolic aspects (the resources of impression management that they use). We suggest that under certain circumstances, corporate frauds may be understood as the result of implementation of a criminal business model that focuses on a niche market of risk takers or greed investors, uses aggressive commercial practices and offers exclusivity, promotes the organization's image and personality cult of the entrepreneur, operates a management model that combines centralized control with fragmented systems, and uses complex fraudulent practices. This perspective allows us to understand the phenomenon of corporate fraud from a systemic point of view. We also suggest directions for future research and theory development on corporate frauds. © 2014 Wiley Periodicals, Inc.     

Unpacking the interplay between organisational factors and the economic environment in the creation of consumer vulnerability

ABSTRACT

Access to credit is a key enabler of modern life. Yet many consumers face factors beyond their control which sometimes render them unable to borrow from mainstream lenders. This paper documents how firm-related factors determine lending thresholds and shape who is, or is not, a creditworthy customer. The impact of the 2008 economic recession on lending decisions is explored, an aspect that has been insufficiently discussed even though recessions are cyclical events. Drawing on semiotics and using multiple case studies, the study captures not only the groups that were excluded but also the reasons for exclusion. Empirical support is offered for the notion of vulnerability as a fluid state and the role of the timing of decisions as a source of vulnerability is described.     

The mover’s advantage: The superior performance of migrant scientists

Migrant scientists outperform domestic scientists. The result persists after instrumenting migration for reasons of work or study with migration in childhood to minimize the effect of selection. The results are consistent with theories of knowledge recombination and specialty matching.     

Organizational innovation as an enabler of technological innovation capabilities and firm performance

This study assesses the relationship between organizational innovation and technological innovation capabilities, and analyzes their effect on firm performance using a resource-based view theoretical framework. The article presents empirical evidence from a survey of 144 Spanish industrial firms and modeling of a system of structural equations using partial least squares. The results confirm that organizational innovation favors the development of technological innovation capabilities and that both organizational innovation and technological capabilities for products and processes can lead to superior firm performance.