What drives cross-segment diversity in returns and risks? Evidence from Japanese and U.S. firms

The usefulness of segment reporting is grounded on the presumption of diversities of returns and risks across reported segments. We examine the effect of country-specific factors, reporting incentives, and choices on an ANOVA-based measure of cross-segment diversities (CSD) in risk and returns for a sample of Japanese and U.S. multi-segment firms. We find that, in contrast to our expectations, Japanese firms exhibit greater CSD than U.S. firms. Moreover, we find that in both countries CSD is driven especially by reporting incentives associated with profitability and foreign sales, but not by proprietary costs. Further, the manager's choice of the number of reported segments is an important factor affecting CSD.     

Evaluating a Framework for Multi-Stakeholder Decision Support in Water Resources Management

In this paper we describe a framework for multicriteria modeling and support of multi-stakeholder decision processes. We report on its testing in the development of a new water level management policy for a regulated lake-river system in Finland. In the framework the stakeholders are involved in the decision process from the problem structuring stage to the group consensus seeking stage followed by a stage of seeking public acceptance for the policy. The framework aims at creating an evolutionary learning process. In this paper we also focus on the use of a new interactive method for finding and identifying Pareto-optimal alternatives. Role playing experiments with students are used to test the practical applicability of a negotiation support procedure called the method of improving directions. We also describe the preference programming approach for the aggregation of the stakeholder opinions in the final evaluation of alternatives and consensus seeking.     

‘It's almost like taking the sales out of selling’—Towards a conceptualization of value-based selling in business markets

While the creation of superior customer value is regarded as fundamental to a firm's long-term survival and growth, little is known about the effective implementation of a firm's value orientation at sales force level. As the sales force plays a pivotal role in implementing marketing strategies, this study adopts a discovery oriented approach and conceptualizes value-based selling as an effective sales approach in business markets. Based on in-depth interviews with sales managers in a variety of industries, we identify and portray three salient dimensions of value-based selling, namely (1) understanding the customer's business model, (2) crafting the value proposition, and (3) communicating customer value. The selling behavior entails a mutual orientation and focuses on the value-in-use potential of the offering for the customer's business profits. We argue that value-based selling is a unique concept that differs from the established selling approaches and propose a conceptual model linking value-based selling to performance outcomes. To further advance our knowledge about the effective implementation of a firm's value orientation, we identify future research avenues embracing qualitative and quantitative research methodologies.     

Contributions from mood research

In this article definitions of mood and the behavioral effects of negative moods are reviewed and scrutinized. This is an important task for two reasons. First, in prior studies, consumer researchers have treated concepts such as affect, mood, feeling, and emotion vaguely and arbitrarily. This has resulted in confusion regarding the substance of mood. In an attempt to dispel a part of this confusion, this article offers a conceptual analysis of mood. Second, a large part of prior consumer behavior‐ and advertising‐related mood research has addressed the relation between mood and mental constructs. The relation between mood and actual consumer behaviors is a more neglected research area. The behavioral effects of negative moods are an especially interesting phenomenon, because past studies have produced mixed and contradictory results. Thus, to offer novel insights, the key conclusion of the conceptual analysis of mood is harnessed to explain the inconsistent findings regarding the negative mood–(consumer) behavior relation. Another theoretical contribution is the provision of starting points for conceptualizing mood‐alleviative consumer behavior. Suggestions for future research are also briefly outlined in the concluding section of this article. © 2000 John Wiley & Sons, Inc.     

The effect of demand-driven structural transformations on growth and technological change

The paper analyses the effect of the dynamics of consumption preferences on the dynamics of macro–economic growth. We endogenously derive micro–dynamics of consumption behavior as a result of the increase in the number of income classes. The different degrees of inertia in the adjustment of consumption levels to income changes affect firm selection and the dynamics of market structure, which is ultimately responsible for different regimes of macro–economic growth. We find, first, that higher heterogeneity in consumption preferences amplifies and accelerates market dynamics, leading to a swift shift from a Malthusian to a Kaldorian growth pattern. Second, consumption smoothing mainly affects the timing of such a take–off. Inertia in consumption delays the occurrence of a Kaldorian engine for growth.     

Co-evolution of trust and dependence in customer–supplier relationships

The relational and dynamic aspects of interfirm trust and dependence produce a crucial, but insufficiently addressed, challenge for successful relationship coordination. In this paper we concentrate on this issue by examining how trust and dependence co-evolve in customer–supplier relationships. Building on a case study, we develop propositions and a model that illustrates how interorganizational trust and dependence co-evolve through the different phases of customer–supplier relationships and how we may distinguish cooperative and trustworthy actors from those who will behave opportunistically. Theoretical and practical implications are offered.     

Estimating productivity and returns to scale in the US textile industry

In light of the textile industry's growing foreign competition, trade deficit and job loss, we estimate its productivity and efficiency for the period 1975–93 utilizing a variable elasticity of substitution production function. The results indicate that, despite job losses, the industry adjusted by increasing labor productivity and maintaining fairly stable profits. This performance does not warrant protectionist policies. However, with an elasticity of factor substitution less than one and decreasing, the impact of factor price increases could result in higher apparel prices and preference for cheaper imports. Furthermore, with an elasticity of capital output rapidly decreasing, significant technological improvements will be required to improve competitiveness since textile production is capital intensive. Recently revised rules on trade liberalization could increase competition in the industry. First version received: October 1999/Final version received: August 2000     

A strategy framework for performance measurement in the public sector

This paper looks at a little-studied question: what are the strategic choices behind the selection and implementation of performance measurement practices in public sector entities? The paper presents a new strategy framework which provides a structured approach to the many options available for measuring performance effectively. The framework is primarily intended for large public sector organizations, such as municipalities, but will also be useful in smaller entities.