Investigating the failure to best respond in experimental games

Experimental Economics - We examine strategic sophistication using eight two-person 3?×?3 one-shot games. To facilitate strategic thinking, we design a ‘structured’...     

Networks and network resources in technological innovation systems: Towards a conceptual framework for system building

Previous research has shown that formal networks can play a crucial role in the formation of technological innovation systems (TIS). Firms and other actors collaborate in formal networks not only to generate new knowledge but also to strategically create and shape supportive system resources such as technology specific R&D programs. This paper takes a closer look at the resources, which are developed and deployed by networks to facilitate the building up of a TIS. Networks rely not only on the organizational resources of their members but also on new resources developed at the network level including network governance structures, trust among network members, a common understanding of the strategic goals or a good reputation of the network. Our analysis shows that the capacity of networks to fulfill different tasks of system building especially depends on the network resources they are able to establish. With the differentiation of organizational, network and system resources we introduce a conceptual framework, which makes three important contributions. It highlights the strategic nature of (innovation) system building; it allows us comparing the contribution of different actors and formal networks in this regard; and it improves our understanding of how firm and system level processes are intertwined.     

The Impact of Sexual Harassment Policy in the Dutch Police Force

The aim of the present study was to evaluate the outcome of sexual harassment policy in the Dutch Police Force. Using a survey, sexual harassment was measured in 2000 and again in 2006 and we tested whether sexual harassment is associated with the comprehensiveness of policies. To be able to identify divisions with comprehensive policies, we interviewed 29 key persons in semi-structured interviews. It appeared that between 2000 and 2006 sexual harassment did not decrease: neither for women nor for men. Furthermore, the risk of sexual harassment was not lower in divisions that implemented comprehensive policies than in divisions with less comprehensive policies. The results suggest that sexual harassment is a workplace hazard that is very difficult to prevent in male dominated workplaces and implementing a comprehensive policy is not sufficient to prevent this workplace hazard.     

Environmentally Sustainable Development through Stakeholder Engagement in Developed and Emerging Countries

This cross‐country study investigates the antecedents and outcomes of corporate environmental responsibility (CER) practices in developed and emerging countries. Based on stakeholder and institutional theory, we conducted an empirical study among firms in Germany, USA, India and China. We found support for a significant positive relationship between regulatory, market and social stakeholder influences, CER practices and business outcomes in the total and individual country samples. Regarding country differences, our data reveal significant similarities and differences between developed and emerging countries. Market stakeholder influences are stronger in developed countries, whereas regulatory and social stakeholder influences do not differ significantly between the two country groups. The relationship between CER practices and positive business outcomes is stronger in emerging than in developed countries. Implications for institutional theory and organizations are outlined. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

The relationship between private investors and small firms: an agency theory approach

Many small firms in Sweden are characterized by a lack of equity capital. For several years measures to increase the equity capital have been discussed. In this discussion the private investors' market has received virtually no attention. This study presents some preliminary results of the private investors in Sweden.

The research in small firms financing is characterized by a lack of theoretical framework. One basic assumption in the study is that agency theory can provide an essential framework to explain the interaction between the private investor and entrepreneur. Twenty-five hypotheses generated from agency theory are formulated and tested on 62 small unlisted firms in Sweden. Multiple regression analysis is used for the causal analyses.

The empirical results in the study show inter alia that the geographic distance and the private investor's knowledge about the portfolio firm's transformation process seem to be the most influential factors for determining the private investor's involvement in the portfolio firms. It is also interesting to notice that none of the variables, frequency of contacts and the private investor's operational work in the portfolio firm affect the performance of the firm. Contrary to conventional wisdom, private investors do not add value to their portfolio firms through their interaction with the entrepreneurs.

The theoretical conclusion is that agency theory does not provide any satisfactory framework to explain the private investor - entrepreneur relationship. Some of the basic assumptions in agency theory seem to be invalid. A model for the relationship between private investors and entrepreneurs is developed in which four interaction strategies are identified. The model gives implications on two levels: the portfolio level and the individual case level.     

Intangibles and credit decisions: results from an experiment

The question in this paper is whether the inclusion of intangibles is meaningful in a credit decision context. To examine this issue we conducted an experiment with forty loan officers. The loan officers were presented with a situation of a company that required a credit of 5 million Swedish kronor. Half of the loan officers were given a traditional annual statement in which intangibles were treated as costs while the other half received a balance sheet in which brand, R&D and education were capitalized. The loan officers were asked to give their opinion regarding the credit decision and the importance of extra information. They were also confronted with four short cases where extra information about the company appeared. Statistical analysis revealed that none of three hypotheses relating to the statement that ‘accounting for intangibles does not matter’ could be falsified. Still, the acquired qualitative data that emerged from the study makes it possible to suggest another finding. The study shows that accounting for intangibles is accepted if the accounts were seen as reliable. The conclusion is that if it is possible to create reliable data about intangibles, accounting for intangibles is meaningful for credit decisions.     

Security in a sea of insecurity: job security and intention to stay among service sector employees in Turkey

This article examines the association between job security and intention to stay for those who are employed in Turkey. There is a high level of unemployment in the country and many workers there are concerned about their job security. Job security refers to the objective dimensions of continuous contract, working full-time hours and paid and unpaid overtime. Job security also refers to the subjective dimension of perceived job security. We surveyed 407 employees in banking and related sectors' call centres, five-star hotel front-line staff and airline cabin crews. Results show that objective dimensions of job security are not associated with intention to stay. However, perceived job security is significantly and positively associated with intention to stay. We recommend that human resource managers focus on the perceived job security aspect of employment to keep valuable employees with the company.     

Do employees reciprocate to intra-firm trainings? An analysis of absenteeism and turnover rates

This article contributes to the debate on the link between reciprocal motives of employees and HRM practices by studying the behavioral effects of intra-firm trainings on absence behavior and turnover probability. We apply the gift-exchange framework and offer a behavioral perspective that helps to explain why firms invest in trainings that provide mainly general skills. We argue that employees may reciprocate the gift of firm-sponsored training with higher levels of costly effort or commitment. We employ a stringent methodological approach based on panel data of a large multinational firm and find that, in contrast to human capital predictions, general trainings lead to a decrease in turnover rates. Most notably, we find the strongest effect for employees with the lowest levels of firm tenure. This is a quite novel result as this group should face the lowest separation costs, for instance, due to the accumulation of firm-specific human capital. Hence, intra-firm trainings are an important retention device, especially for newly or recently hired employees. Furthermore, a short-term decrease in absenteeism indicates a temporary, reciprocal reaction by employees.     

Diffusion of environmental business practices: A network approach

The purpose of this research is to build a conceptual foundation that examines network effects on the diffusion of environmental business practices (EBP) among suppliers. This research extends a network perspective to adoption of an environmental business practice across a large network of suppliers. The context of EBP is used to better understand adoption of a complex business practice, with perceived costs that are often greater than the perceived benefit. Variation in the level of structural and relationship embeddedness affect network diffusion of environmental business practices differently. Increased levels of structural and relational embeddedness are proposed to be positively associated with diffusion of EBP. From a practical standpoint, firms that leverage embeddedness may facilitate higher diffusion and adoption of environmental business practices. This facilitation may lead network actors to engage in EBP, and leverage benefits that may stem from these practices. This research introduces the concept of embeddedness to the environmental supply chain literature. Practicing managers can use the findings in this research to better position themselves within a network to diffuse EBP. This research also helps managers understand how supply chain members that are weakly connected to the primary network are important for introducing new ideas and innovations.