Mixed up? that’s good for motivation

We show that career concerns can arise in the absence of ex ante uncertainty about an agent’s type, if his unobservable actions influence future productivity. Implementing effort in mixed strategies allows the principal to endogenously introduce uncertainty about the agent’s ex post productivity and generate reputational incentives. Creating such ambiguity can be optimal for the principal, even though this exposes the agent to additional risk and reduces output. This finding for an environment with imperfect commitment contrasts with standard agency models, where implementing mixed strategy actions typically is not optimal if pure strategies can also be implemented.     

Einzelbesprechungen

Ohne Zusammenfassung     

DEVELOPING A CONSTITUTION FOR A LIBERAL EUROPEAN UNION

In many ways the EU Reform Treaty represents an advance over the status quo: it streamlines decision-making and makes institutions more accountable. However, the Treaty ignores opportunities for important institutional reforms and is unlikely to provide strong constraints on institutional power or halt centralisation.     

Much more at stake than Gewürztraminer: The U.S. Supreme Court's wine decision

The U.S. Supreme Court struck down the laws of 11 states that permitted in-state wineries to sell wine directly to customers in those states, but prevented out-of-state wineries from doing the same. While the wine decision will help wineries that serve customers via the Internet, its economic implications are much greater for markets such as real estate and automobiles. The Court's broad interpretation of the Commerce Clause has the potential to eliminate many of the protectionist practices that states have developed to shield local firms from out-of-state competition, particularly that fostered by the Internet. Consumers will save an estimated $23.7 billion per year if these protectionist practices are eliminated.     

Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance

ABSTRACT

Purpose: This study examines the role of product development capability for transforming marketing intelligence activities into firm performance on industrial markets.

Methodology/Approach: The authors apply structural equation modeling to analyze survey data from 342 industrial manufacturing companies.

Findings: Results reveal that sales integration and holistic macroeconomic view are particularly important features of the marketing intelligence capability on industrial markets to gain additional insights in order to develop products successfully. Results also reveal that product development capability transforms the marketing intelligence activities into firm performance on industrial markets.

Research Implications: This study offers new insights on marketing theory by extending and concretizing the concept of market orientation to a broader concept of the marketing intelligence capability for industrial markets. Further, this research reveals that the product development capability serves as a mediator to business performance.

Practical Implications: This study’s systematic and tangible outline of the dimensions of marketing intelligence and its link to the product development capability helps firms to better understand how to capitalize on market orientation’s potential values.

Originality/Value/Contribution: This research (a) reveals the relevant dimensions of marketing intelligence on industrial markets and (b) shows how the product development capability tranforms marketing intelligence activities into firm performance on industrial markets.