Organizing for Commons-Enabling Decision-Making Under Conflicting Institutional Logics in Social Entrepreneurship

Social entrepreneurship develops innovative opportunities and solutions aimed to (re)generate the common good. This emerging organizational form poses unprecedented challenges to group decision and negotiation studies. This article leverages conceptual tools from the literature on the commons and institutional logics as it explores the organizational conditions of social entrepreneurship that trigger commons-enabling decision-making in its organizational field. Through an inductive analysis of a longitudinal case, this study proposes a model that highlights the critical role of the bridging organization that can be introduced by the social entrepreneur in a previously fragmented organizational field. This bridging organization is in the condition to develop an innovative co-creation logic that can serve as a common ground to enable collaboration between actors from diverse and even conflicting institutional logics. The proposed model suggests that a practice-driven path to the construction of such a common ground for decision-making is more effective than a disclosure-driven path, which is based on classical conflict analysis techniques. The ICT-enabled activity system developed by the social entrepreneur injects transparency and traceability into a previously opaque field, thus creating the conditions for distributed, flexible, and complementary sense- and decision-making processes that develop and protect the commons.     

Seeds of Corruption – Do Market Institutions Matter?

Ten years into the transition process, corruption is now recognized to be a pervasive phenomenon thatcan seriously jeopardize the best intentionedreform efforts. Because of the complex anddeep political economy dynamics surroundingthe process transition economies areundergoing it is essential for policy-makersto understand the causes of corruption. Thispaper develops an integrated analyticalframework of the role basic marketinstitutions play as determinants ofrent-seeking and illicit behavior intransition economies. Using data onlyrecently available on the incidence ofcorruption and institutional development inthese economies, we provide preliminaryevidence on both the systemic links betweendevelopment of market institutions andincentives for corruption and the relativeimportance of such institutions. The mainlesson from our analysis is that awell-established system of marketinstitutions – one characterized by clear andtransparent rules, fully functioning checksand balances, including strong enforcementmechanisms, and a robust competitiveenvironment – reduces rent-seekingopportunities and, in turn, the incentives forcorruption. The empirical results suggestthat high barriers to new business entrantsand soft budget constraints on incumbent firmsare particularly important institutionalfactors engendering opportunities andincentives for corruption. As in otherstudies, the empirical results also supportthe notion that economic development andmaturation of democratic processes both tempercorruption, as does, to a lesser extent,openness to trade.     

An explicitly solvable multi‐scale stochastic volatility model: Option pricing and calibration problems

We introduce an explicitly solvable multiscale stochastic volatility model that generalizes the Heston model. The model describes the dynamics of an asset price and of its two stochastic variances using a system of three Ito stochastic differential equations. The two stochastic variances vary on two distinct time scales and can be regarded as auxiliary variables introduced to model the dynamics of the asset price. Under some assumptions, the transition probability density function of the stochastic process solution of the model is represented as a one‐dimensional integral of an explicitly known integrand. In this sense the model is explicitly solvable. We consider the risk‐neutral measure associated with the proposed multiscale stochastic volatility model and derive formulae to price European vanilla options (call and put) in the multiscale stochastic volatility model considered. We use the thus‐obtained option price formulae to study the calibration problem, that is to study the values of the model parameters, the correlation coefficients of the Wiener processes defining the model, and the initial stochastic variances implied by the “observed” option prices using both synthetic and real data. In the analysis of real data, we use the S&P 500 index and to the prices of the corresponding options in the year 2005. The web site http://www.econ.univpm.it/recchioni/finance/w7 contains some auxiliary material including some animations that helps the understanding of this article. A more general reference to the work of the authors and their coauthors in mathematical finance is the web site http://www.econ.univpm.it/recchioni/finance . © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 29:862–893, 2009     

Financial development and the growth of cooperative firms

The purpose of this article is to empirically assess the relationship existing between local financial development and the growth of firms, with a special focus on cooperatives. Using Italian data, a multiplicative interaction model is specified, so as to allow the impact of local banking development to differ between cooperative and non-cooperative firms. The main finding is that although local banking development represents a determinant of firms’ growth, regardless of their legal structure, it plays a special role in boosting the growth of cooperatives. This result provides evidence in favor to the existence of an institutional complementarity relationship between the development of local banking institutions and cooperative firms.

Mean-Variance Hedging for Stochastic Volatility Models

In this paper we discuss the tractability of stochastic volatility models for pricing and hedging options with the mean-variance hedging approach. We characterize the variance-optimal measure as the solution of an equation between Doléans exponentials; explicit examples include both models where volatility solves a diffusion equation and models where it follows a jump process. We further discuss the closedness of the space of strategies.     

Intersectoral labour reallocations and unemployment in Italy

The Italian labour market, like most European labour markets and unlike the US, shows a greater cyclical sensitivity of the service sector with respect to manufacturing and firing costs higher than hiring costs. This accounts for the negative relationship between sectoral employment shifts and Italian unemployment in the post-war period and, correspondingly, for the pro-cyclical pattern of the Lilien index, in contrast with the US experience.By applying the Lilien index to the Italian context, this paper analyses the relative importance of sectoral regional and national factors in the explanation of changes in industrial structure, and their impact on unemployment. The econometric exercise illustrates that, given the structural features of the Italian labour market, the decline in intersectoral and interregional labour reallocations has significantly contributed to the increase of unemployment in Italy. New hires, the pull of new sectors, sectoral shifts and regional mobility can keep unemployment down, while at the same time maintaining some of the structural features of the “European model” (high employment security and stability).     

A routing and location model for food waste recovery in the retail and distribution phase

This paper presents a routing and location (R&L) model able to help design an efficient reverse logistics channel for food waste, with particular attention to the waste generated at the retail stage of a food supply chain (FSC). The model, developed in Microsoft Excel^TM, is detailed along with its application in the Emilia-Romagna region of Italy, which is currently the location of a research project aimed at finding alternative ways to recover food waste rather than disposing of it in landfill sites. Several analyses are carried out exploiting the model, to derive some findings about the economic profitability of setting up a reverse logistics channel to recover food waste in the targeted region, and divert it to alternative use. As there are currently no studies that examine the problem of recovering food waste in Italy, this paper is expected to represent an interesting addition to the literature on this issue.     

Dynamic Embeddedness in Chinese Firm Internationalization

This article presents a multilevel framework to analyze the motivations and location choices of Chinese OFDIs. We contribute to theory‐integration on Chinese OFDI flows and patterns by suggesting a framework that combines country‐, industry‐ and firm‐level analyses and by reflecting aspects from the resource‐based view (firm‐specific advantages), institutional‐based view (push/pull home‐ and host‐­country factors), and network‐based view (network relations). We also explicitly incorporate “time” as a variable into our framework by introducing and explaining the concept of dynamic embeddedness as an interaction dimension to reflect the inherent dynamics on all levels and actors. © 2017 Wiley Periodicals, Inc.     

Perceptions of food quality: Evidence from a survey in Shanghai

Recent food scandals in China significantly decreased the level of consumer trust toward the food chain, and, at the same time, increased the demand for food quality and safety. This paper investigated perceptions and determinants of food quality among a sample of households in Shanghai. Survey questionnaires were collected between June and December 2014, and a total of 509 interviews were completed. Questions asked about food purchasing behaviours, dietary habits, and the importance of food quality when food shopping. Socio‐demographic and socio‐economic variables were also collected. We used ordered logit regressions to investigate the most significant factors associated with food quality. We found that respondents who frequently bought vegetables were 31% more likely to look for quality attributes (p < .1) and respondents who often bought rice 28% more (p < .01). Branding was also positively associated with the demand for food quality. In particular, consumers considering brand an important element were 25% more likely to believe that the product was of high quality (p < .05). Among socio‐economic variables, higher income and education were significantly associated with food quality demand. Our results indicated that consumers in Shanghai paid increasing attention to food quality, and they especially associated it with traditional foods and brand. We suggested that policy makers and stakeholders in the food chain should strengthen food quality certification systems, and help consumers make better and more informed choices.