On strategic management decision processes

This paper attempts to bridge the divide between rational/analytical and behavioural/political conceptions of strategic decision making. The linkages and interactions between these approaches to the making of strategic decisions are explored in the context of a specific decision arena—strategic energy management.     

Toward understanding strategic issue diagnosis

This paper calls attention to a central but neglected process in strategic decision making, i.e. strategic issue diagnosis (SID). A framework for discussing SID is presented in terms of three critical components: inputs, process characteristics and outputs. The framework is illustrated in the context of PIMS and BCG, two widely recognized strategy models. The major implications highlight the theoretical significance of SID for understanding strategic decision making.     

A Theory of Trade Union Membership Retention

The retention rate of unemployed members can vary substantially between trade unions and may not particularly reflect the structure of the labour market within which a union operates. This raises the issue of whether retention of these members is due to supply-side factors characterised by individuals or to the policy of trade unions towards their unemployed members.     

Consumer willingness to pay for in-flight service and comfort levels: A choice experiment

In the competitive aviation market as a result of the emergence of low cost carriers, charter airlines have had to reconsider their approach to service provision. Specifically, the reduction in service and comfort levels offered by the low cost airlines provides charter carriers with an opportunity to differentiate their product based on the quality of the offering. To consider this strategic option we employ an on-line choice experiment to examine consumer choices with respect to the bundle of services on offer when deciding to purchase a flight. With these data we use the Bayesian methods to estimate a mixed logit specification. Our results reveal that in principle passengers are willing to pay a relatively large amount for enhanced service quality.     

The Political Economy of Addressing the Climate Crisis in the Earth System: Undermining Perverse Resilience

The Earth system is a complex adaptive system, characterised by non-linear change and with significant capacity for surprise. In times of systemic crisis, such as dangerous anthropogenic climate change, perverse resilience (for example the structural power of fossil fuel interests in the global economy) can threaten overall Earth system stability. Critical political economic analysis recognises climate change as a threat with significant political economic characteristics and implications. However, key dimensions of climate change as a globally coherent phenomenon, including the important implications of Earth system dynamism and non-linear change, can remain unrecognised, mischaracterised or underestimated. In contrast, resilience approaches describe social-ecological systems but neglect the significance of norms and power relations in human societies. This article builds theory by linking key concepts – hegemony and resilience – from neo-Gramscian political economic analysis and resilience approaches to social-ecological systems. Our objective is to generate a new conceptual framework to improve understanding of the role of politics in social-ecological systems. We use climate change and its mitigation to demonstrate the new framework's potential.     

Families at leisure outdoors: well-being through adventure

ABSTRACT

This study investigates families who choose to co-participate in outdoor adventure holidays, and explores how they benefit from these shared experiences. In so doing, it seeks to determine the role of adventure tourism in developing and enhancing family well-being (FWB). Hyper-modern family life for many is powered by technological hardware, each room in the house replete with on-line pleasures, distractions and identities. In response to this dystopia, some families opt to take adventure holidays together. However, scholarship concerning collective experiences of adventurous leisure, in this case as families, is limited. Using a qualitative whole family approach, 15 (adventure tourist) families were interviewed, totalling 62 interviewees (29 adults and 33 children under 18 years old), in their home environments. Four key themes related to FWB emerged. First, families extended their active lifestyles to adventure holidays and repeatedly mentioned the health and fitness benefits gained from these experiences. Second, adventure holidays facilitated unmediated time together for families. Third, parents harboured ideals of positive personal development for their children in these adventure settings. Fourth, making memories during adventure holidays, and recollecting these post-trip, were integral to family bonding. Further research should consider non-traditional families, and various socio-economic and cultural groups in this context.     

Can exchange traded funds be used to exploit industry and country momentum?

There is overwhelming empirical evidence on the existence of country and industry momentum effects. This line of research suggests that investors who buy country and industry portfolios with relatively high past returns and sell countries and industries with relatively low past returns will earn positive risk-adjusted returns. These studies focus on country and industry indexes that cannot be traded directly by investors. This raises the question of whether country and industry momentum effects really can be exploited by investors or whether they are illusionary in nature because they exist only on non-tradable assets. We analyze the profitability of country and industry momentum strategies using actual price data on exchange traded funds (ETFs). We find that over the sample periods during which these ETFs were traded, an investor would have been able to exploit country and industry momentum strategies with an excess return of about 5 % per annum. These returns cannot be explained by unconditional exposures to the Fama–French factors. The daily average bid-ask spreads on ETFs are substantially below the implied break-even transaction cost levels. Hence, we conclude that investors who are not willing or able to trade individual stocks may use ETFs to benefit from momentum effects in country and industry portfolios.     

Dynamic almost ideal demand systems: an empirical analysis of alcohol expenditure in Ireland

This paper presents a dynamic form of the Almost Ideal Demand System (AIDS). Three versions of the static AIDS model are employed to determine the preferred long-run equilibrium model and represents the short-run dynamics by an error correction mechanism. This estimation procedure is then applied to alcohol expenditure in Ireland. The estimated point elasticities are consistent with previous studies and a priori expectations. Beer and spirits are found to be price inelastic in both the short and long run. While wine is price inelastic in the short run and price elastic in the long run.