Firm heterogeneity, productivity and spatially bounded knowledge externalities

In this paper, we argue that conceptually disentangling the ‘context versus composition’ aspects of regional growth is a multilevel issue. By applying multilevel models (also called random-effects models), we show (1) the importance of considering firm-specific characteristics simultaneously with region-specific characteristics, as we find that a large part of what is traditionally assigned to the impact of the region should be assigned to firm-specific characteristics and (2) that existing single-level methodologies can be problematic, as they are vulnerable to the charge of estimating significance levels that are too liberally assigned and promote exaggerations. This is illustrated empirically by showing that single-level approaches would lead to the conclusion that innovation spillovers are highly significant in a setting of Dutch urban growth differentials, while multilevel analyses shows less liberally assigned significance levels. We conclude that multilevel-effect models better fit research questions that combine firm and spatial characteristics simultaneously, especially because they allow firm-specific characteristics to be differently linked to their regional contexts.     

Wheat variety yield data: Do commercial and public performance tests provide the same information?

Wheat yields from reported performance test results are of economic importance to wheat producers, since their profits depend on selecting the optimal variety for their location. However, our data shows differences in absolute and relative wheat yields between commercial and public wheat breeding program's performance test data in Kansas. Newly available data are used to test if the difference in yields arose from potential selectivity bias, and to determine the contribution of private and public wheat breeding programs to varietal yield improvement during 2007–2012. Both Heckman selection models and multiple regression showed no statistical evidence of the potential presence of selectivity bias rather, managerial practices, agronomic conditions, field location, and inherent genetic traits of the seed variety were identify as the source of yield differences.     

Making the ‘Invisible’ Visible: Redevelopment‐induced Displacement of Migrants in Shenzhen,China

Gentrification in China is intertwined with urban redevelopment, which causes the large‐scale displacement of rural–urban migrants from ‘villages in the city’ (ViCs). Because of the informality of ViCs, migrant renters have very insecure tenancy and during redevelopment they are treated as a negligible (‘invisible’) social group. As they are very difficult to locate after displacement, they are also literally invisible to researchers. To make the invisible visible, this study traced a sample of displaced migrants from Huangbeiling village in Shenzhen. The focus was on the displacement process and on identifying the consequences for the displaced. We found various forms of displacement during the redevelopment process. Nearby ViCs were prioritized by displaced migrants to minimize as much utility loss as possible. However, they generally suffer from decreased proximity, increased living costs, and the loss of social networks and job opportunities. Remarkably, some choose to return to the gentrifying village, enduring displacement in situ caused by increasing rents, drastic physical neighbourhood changes and declining liveability, in exchange for retaining their original social and economic networks. Large‐scale urban redevelopment is causing the rapid shrinkage of informal housing. Recognizing and addressing the housing needs of this impoverished social group is a matter of urgency.     

Sustainable Entrepreneurship: A Convergent Process Model

Sustainable entrepreneurship pursues a triple bottom line approach of economic, social and ecological goals. The main aim of this paper is to add to our understanding of the process of sustainable entrepreneurship. Since the field of sustainable entrepreneurship is in a nascent stage, we conduct a qualitative study. We employ a multiple case study design to build theory. Based on four case studies we develop a model, which describes the process of sustainable entrepreneurship, including six phases: 1) recognizing a social or ecological problem; 2) recognizing a social or ecological opportunity; 3) developing a double bottom line solution; 4) developing a triple bottom line solution; 5) funding and forming of a sustainable enterprise; 6) creating or entering a sustainable market. By developing a convergent process model with two pathways, we make theoretical contributions to the emerging fields of sustainable entrepreneurship and social entrepreneurship. A key finding is that the triple bottom line of ecological, social and economic goals is integrated sequentially, not simultaneously. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment.     

Citizen participation in public administration: investigating open government for social innovation

In recent years, public sector organizations have increasingly focused on citizen contribution by adopting instruments known from open innovation. By collaborating with the periphery and leveraging external knowledge, government institutions initiate social innovation and stimulate a positive change for society. This article examines the involvement of citizens in an ideation platform initiated by a local government and investigates the motivations affecting participation intensity. Drawing on self‐determination theory, we analyze what motivates citizens to participate in an open government platform and how these motivations influence participation quantity. Based on a survey among platform users and the analysis of usage data from the platform operator, we find that motivations of citizen participation in public administration greatly vary across forms of participation. Whereas, intrinsic motivation is positively associated with producing and consuming platform content, external and introjected regulation negatively relate to individuals’ active contribution. At the same time, external regulation is positively associated with evaluation behavior.     

Only the Brave: Product Innovation,Service Business Model Innovation,and Their Impact on Performance

Recent empirical findings concerning the performance effects of service business model innovation (servitization) and its interplay with product innovation are mixed. Using the lenses of the demand‐based view on value creation and complementarity, the performance impact of two key service business models is examined: the product‐oriented model and the customer‐oriented model, implemented jointly with product innovation. Results indicate that the interplay between service business model innovation and product innovation results in long‐term performance benefits coupled with a degree of short‐term performance sacrifice. Service business model innovation in isolation from product innovation results in short‐term profit gains but long‐term knowledge loss and, thus, market performance decline. Our study suggests that firms need to look beyond the evidence on short‐term effects in order to achieve superior performance in the long run.     

Climate Change and Asset Prices: Are Corporate Carbon Disclosure and Performance Priced Appropriately?

This paper empirically assesses the relevance of information on corporate climate change disclosure and performance to asset prices, and discusses whether this information is priced appropriately. Findings indicate that corporate disclosures of quantitative greenhouse gas (GHG) emissions and, to a lesser extent, carbon performance are value relevant. We use hand‐collected information on quantitative GHG emissions for 433 European companies and build portfolios based on GHG disclosure and performance. We regress portfolios on a standard four factor model extended for industry effects over the years 2005 to 2009. Results show that investors achieved abnormal risk‐adjusted returns of up to 13.05% annually by exploiting inefficiently priced positive effects of (complete) GHG emissions disclosure and good corporate climate change performance in terms of GHG efficiency. Results imply that, firstly, information costs involved in carbon disclosure and management do not present a burden on corporate financial resources. Secondly, investors should not neglect carbon disclosure and performance when making investment decisions. Thirdly, during the period analysed, financial markets were inefficient in pricing publicly available information on carbon disclosure and performance. Mandatory and standardised information on carbon performance would consequently not only increase market efficiency but result in better allocation of capital within the real economy.     

Communicating a company's positive impact on society—Can plausible explanations secure authenticity?

Organizations could prosper by delivering products and services that make society a better place. However, they face the challenge of successfully communicating what they contribute to society, especially if their contributions are closely related to their core business activities. The thin line between genuine societal engagement and the pursuit of profitability may feed society's increasing skepticism about the genuineness of organizations' care for societal issues. This study addresses the question of how a for-profit organization can successfully communicate what it intends to contribute to society while still coming across as authentic. If customers can explain the organization's envisaged societal contributions in terms of characteristics of the organization, they can see more clearly how its contributions fit the organization and will perceive the organization as more authentic. Perceived authenticity, in turn, increases customer loyalty and perceived fit enhances stakeholders' attitudes toward the organization's societal engagement.     

CPA credential perceptions: a case study of Hispanic accountants

One of the recommendations of The Pathways Commission report was to increase the number of diverse entrants into the accounting profession. While the Commission’s recommendation is commendable, the lack of diversity in the accounting profession is not a new problem. Hence, the accounting profession has attempted to address the underrepresentation of minority Certified Public Accountants (CPAs) for many years. To this end, organizations such as American Institute of CPAs (AICPA), National Association of Black Accountants (NABA), Association of Latino Professionals in Finance and Accounting (ALPFA), and the Ph.D. Project have provided different types of support to alleviate the problem. However, the numbers are still disturbingly low. This is particularly true for Hispanic accountants. Therefore, the purpose of this study was to examine Hispanic accountants’ perception of the CPA credential. While the results indicate that gender, exam affordability, and job incentives are positively associated with the likelihood of being a CPA, the 150-hour requirement was not perceived as a hindrance for certification.