Localized capabilities and the internationalization of manufacturing activities by SMEs

In this paper it is argued that the internationalization of production through foreign direct investment (FDI) by small and medium-sized enterprises (SMEs) is influenced by local level idiosyncracies. Although SMEs suffer from inherent constraints to international growth (due to the scarce availability of financial and managerial resources), the presence of qualified localized capabilities strengthen and complement their competitive/ownership advantages, thus favouring their internationalization. These capabilities are related to the advanced specialized services available to the firms, the existence of a ‘marshallian atmosphere’, and an environment conducive to innovation and learning. However, it is argued that negative externalities stemming from protectionism-oriented public intervention discourage the international growth of firms and negatively influence the propensity of SMEs to internationalize. Empirical support for these premises is provided by this study of the Italian case over the decade 1986–1995.     

How do corporate environmental policy and corporate reputation affect risk‐adjusted financial performance?

The current study aims to answer dual, related questions: Does corporate environmental policy affect corporate reputation, and does this link also influence risk‐adjusted profitability and company's risk? With a comprehensive framework involving analyses of each question, among a sample of firms traced by the Reputation Institute, this study reveals several notable results, after correcting for endogeneity biases. First, environmental engagement and green product innovation are both antecedents of corporate reputation. Second, corporate reputation has a positive impact on risk‐adjusted profitability and Z score indicator of financial distress risk. Thus, corporate environmental responsibility and green practices represent cospecialized assets that enhances an intangible asset, namely, corporate reputation. The latter influence constitutes a missing link between sustainable development and the firm's financial performance. Overall, environmental engagement and corporate reputation act as insurance‐like protections of firm competitiveness.     

NAFTA Students’ Whistle-Blowing Perceptions: A Case of Sexual Harassment

Business students from the three NAFTA countries were shown a possible Sexual Harassment scenario from Arthur Andersen’s Business Ethics Program. They were asked to respond to a pre-questionnaire concerning the three characters’ behaviors and possible actions and a post-questionnaire after writing a report from the points of view of the three characters in the scenario. The students were asked to consider whether the characters should report the possible harasser to their supervisor, and thus engage in whistle-blowing behavior, as well as directly confront the harasser. Hypotheses are formulated for the three NAFTA countries based on Hofstede’s cultural dimensions. There were significant differences, but in some cases not in the direction expected. Gender differences are also explored, but there were few significant differences.     

Detecting local environmental change: the role of experience in shaping risk judgments about global warming

Anthropogenic climate change is increasing the frequency and severity of extreme weather events (e.g. flooding, heat waves, and wildfires). As a result, it is often reasoned that as more individuals experience unusual weather patterns that are consistent with changing climate conditions, the more their concern about global warming will increase, and the more motivated they will become to respond and address the problem effectively. Social science research evaluating the relationships between personal experiences with and risk perceptions of climate change, however, show mixed results. Here, we analyze a representative statewide survey of Floridians and compare their risk perceptions of five-year trends in climate change with local weather station data from the five years preceding the survey. The results show that Floridians are unable to detect five-year increases in temperature, but some can detect changes in precipitation. Despite an inability to detect the correct direction of change, respondents were significantly more likely than not to correctly identify the season in which most change occurred. Nevertheless, compared to local experience, risk perceptions of climate change were more strongly predicted by subjective experiences of environmental change, personal beliefs about climate change, and political ideology. Results from the study suggest that long-term changes in climate patterns and extreme weather events need to be interpreted by weather and climate experts within the context of climate change; individuals cannot be expected to detect or comprehend such complex linkages directly.     

Whites,Blacks, and <Emphasis Type="Italic">Brown</Emphasis> in the Labor Market in Brazil: A Study About Inequalities

This paper examines inequalities between white and black and brown populations in Brazil within occupations that require university degree. The main result confirms that once reached the university degree, blacks/brown usually obtain smaller but comparable income to that of whites. Although some racial discrimination in labor market may exist, such result corroborates other studies that identify schooling differentials as the main reason for the high income inequality found in Brazil.     

Innovation and the geographical and organisational dimensions of outsourcing: Evidence from Italian firm-level data

The paper investigates the diversified patterns of outsourcing in the Lombardy region and relates them to the probability of introducing product and process innovation. Based on a large firm-level survey, we show that outsourcing processes are strongly regionally embedded and that offshoring is still a limited phenomenon. Outsourcing strategies are shown to be positively related to firms’ innovation. In particular, the outsourcing of service activities is mostly related to product innovation, thus suggesting that firms successfully pursue core strengthening strategies. Our econometric estimates show that both geographical and organisational proximity matter. Indeed, the positive association of services with innovation is strongly related to their regional dimension, which points towards the importance of local user–producer relationships. When outsourcing crosses national borders, keeping the outsourced activities within extended organisational boundaries (i.e. within the group or network of affiliates) appears relevant, particularly with reference to R&D activities.     

The impact of the Bolsa Escola/Familia conditional cash transfer program on enrollment, dropout rates and grade promotion in Brazil

We examine the impact of Brazil's Bolsa Escola/Familia program on Brazilian children's education outcomes. Bolsa provides cash payments to poor households if their children (ages 6 to 15) are enrolled in school. Using school census data to compare changes in enrollment, dropping out and grade promotion across schools that adopted Bolsa at different times, we estimate that the program has: increased enrollment by about 5.5% (6.5%) in grades 1-4 (grades 5-8); lowered dropout rates by 0.5 (0.4) percentage points in grades 1-4 (grades 5-8); and raised grade promotion rates by 0.9 (0.3) percentage points in grades 1-4 (grades 5-8). About one third of Brazil's children participate in Bolsa, so assuming no spillover effects onto non-participants implies that Bolsa's impacts are three times higher than these estimates. However, simple calculations using enrollment impacts suggest that Bolsa's benefits in terms of increased wages may not exceed its costs.