The Tipping Point of Design: How Product Design and Brands Interact to Affect Consumers’ Preferences

Existing research on product design has demonstrated the importance of aesthetics in generating favorable consumer responses. However, the literature has only recently begun to explore if and to what extent the impact of product design is influenced by brand strength. Whereas some research indicates that strong brands may benefit less strongly from aesthetically attractive designs, other research suggests that attractive designs are more persuasive when they are paired with a strong brand. In this research, these two competing predictions were tested through three studies with German car buyers. In Study 1, participants were exposed to a fictitious car that was paired with a randomly chosen brand name. In Study 2, participants were presented with a set of existing cars and were asked to choose one. Both studies yield converging evidence and show that product design and brands interact in a positive fashion, suggesting that attractive designs exert a greater influence on consumers’ decision processes when they are accompanied by a strong brand. Study 3 extended these findings by demonstrating that strong brands only increase the impact of attractive designs when perceived risk is high but not when it is low.     

Why they moved — Emigration from the Swedish countryside to the United States, 1881–1910

Swedish emigration rates were among the highest in Europe in the late nineteenth century. The majority of the emigrants originated from the countryside. In the article the determinants of emigration from the Swedish countryside to the United States are explored using panel regression methods on a newly constructed dataset consisting of yearly observations for 20 counties over the period 1881–1910. Amidst sharp fluctuations the emigration rate declined over the long term, which is explained by a rise in the standard of living and improved employment opportunities at home. Persistent regional differences in the emigration rate are explained by regional differences in population density and emigration tradition.     

Information in generalized method of moments estimation and entropy-based moment selection

In this paper, we make five contributions to the literature on information and entropy in generalized method of moments (GMM) estimation. First, we introduce the concept of the long run canonical correlations (LRCCs) between the true score vector and the moment function f(_vt,_θ0)$f(v_t,{\theta }_0)$ and show that they provide a metric for the information contained in the population moment condition E[f(_vt,_θ0)]=0$\mathrm{E}[f(v_t,{\theta }_0)]=0$. Second, we show that the entropy of the limiting distribution of the GMM estimator can be written in terms of these LRCCs. Third, motivated by the above results, we introduce an information criterion based on this entropy that can be used as a basis for moment selection. Fourth, we introduce the concept of nearly redundant moment conditions and use it to explore the connection between redundancy and weak identification. Fifth, we analyse the behaviour of the aforementioned entropy-based moment selection method in two scenarios of interest; these scenarios are: (i) nonlinear dynamic models where the parameter vector is identified by all the combinations of moment conditions considered; (ii) linear static models where the parameter vector may be weakly identified for some of the combinations considered. The first of these contributions rests on a generalized information equality that is proved in the paper, and may be of interest in its own right.     

Real call options to enlarge foreign subsidiaries – The moderating effect of irreversibility on the influence of economic volatility and political instability on subsequent FDI

This paper develops a real option model to explain the decision of enlarging a new foreign subsidiary by subsequent investment. The model is tested on a panel of 1148 subsidiaries in 22 host countries. The findings complement the traditional process model of firm internationalization. Rather than abiding by an incremental pattern of investment, internationalizing firms seem to keep foreign investment strategies flexible and build up their subsidiaries contingent upon the interaction of economic volatility and irreversibility of investment. However, the moderating effect of irreversibility on the relationship between uncertainty and investment may not hold for downside risks such as political instability.     

Financial amplification of foreign exchange risk premia

Theories of financial frictions in international capital markets suggest that financial intermediaries' balance sheet constraints amplify fundamental shocks. We present empirical evidence for such theories by decomposing the U.S. dollar risk premium into components associated with macroeconomic fundamentals, and a component associated with financial intermediary balance sheets. Relative to the benchmark model with only macroeconomic state variables, balance sheets amplify the U.S. dollar risk premium. We discuss applications to financial stability monitoring.     

Social media? Get serious! Understanding the functional building blocks of social media

Traditionally, consumers used the Internet to simply expend content: they read it, they watched it, and they used it to buy products and services. Increasingly, however, consumers are utilizing platforms—such as content sharing sites, blogs, social networking, and wikis—to create, modify, share, and discuss Internet content. This represents the social media phenomenon, which can now significantly impact a firm's reputation, sales, and even survival. Yet, many executives eschew or ignore this form of media because they don’t understand what it is, the various forms it can take, and how to engage with it and learn. In response, we present a framework that defines social media by using seven functional building blocks: identity, conversations, sharing, presence, relationships, reputation, and groups. As different social media activities are defined by the extent to which they focus on some or all of these blocks, we explain the implications that each block can have for how firms should engage with social media. To conclude, we present a number of recommendations regarding how firms should develop strategies for monitoring, understanding, and responding to different social media activities.     

Markets as networks: implications for strategy-making

Based on empirical studies of firm exchange activities in business markets, this paper outlines a business network view of the firm-market relationship, which differs fundamentally from the view assumed by neo-classical economic theory. We define business networks as sets of connected business relationships. Thus business relationships and connections between relationships are the critical elements in the business network view. It is assumed, as suggested by the Uppsala internationalization process model, that an interplay between knowledge and commitment development is the mechanism that drives the relationship and network development process. Against this background the paper discusses how strategic change is analyzed in literature on alliances and networks. In conclusion the paper presents a set of propositions about strategy-making in business network settings.     

Measuring risky adolescent cycling behaviour

Adolescents are at a greater risk of being involved in traffic accidents than most other age groups, even before they start driving cars. This article aims to determine the factor structure of a self-report questionnaire measuring adolescent risky cycling behaviour, the ACBQ (Adolescent Cycling Behaviour Questionnaire). The questionnaire's structure was based on the widely used Driver Behaviour Questionnaire (DBQ). A sample of secondary school students (N?=?1749; age range: 13-18 years) filled out the questionnaire. Factor analysis revealed a three-factor structure underlying the questionnaire, which was confirmed on two equally large portions of the entire sample. These three underlying factors were identified as errors, common violations and exceptional violations. The ACBQ is a useful instrument for measuring adolescents' risky cycling behaviour.     

Local institutions: Regulation and valuation of forest use—Evidence from Central Sulawesi,Indonesia

Forest management poses particular challenges as the pressure on forests is huge due to deforestation. In this context, the establishment of protected areas is a common conservation measure where institutions are put in place and sanctions regarding forest use are enforced. This paper focuses on the practice of sustainable forest management and the associated perspectives of local institutions at the rainforest margins of Lore Lindu National Park (LLNP) in Central Sulawesi, Indonesia.