Bayesian Conjoint Choice Designs for Measuring Willingness to Pay

In this paper, we propose a new criterion for selecting efficient conjoint choice designs when the interest is in quantifying willingness to pay (WTP). The new criterion, which we call the WTP-optimality criterion, is based on the c-optimality criterion which is often used in the optimal experimental design literature. We use a simulation study to evaluate the designs generated using the WTP-optimality criterion and discuss the design of a real-life conjoint experiment from the literature. The results show that the new criterion leads to designs that yield more precise estimates of the WTP than Bayesian D-optimal conjoint choice designs, which are increasingly being seen as the state-of-the-art designs for conjoint choice studies, and to a substantial reduction in the occurrence of unrealistically high WTP estimates.     

How dynamic can organizational capabilities be? Towards a dual‐process model of capability dynamization

The recent discussion in the field of strategic management broadly favors the idea of dynamic capabilities in order to overcome potential rigidities of organizational capability building. The major question addressed in this paper is whether capabilities can actually be conceived as being in flux—and if so, to what extent and in which way? After briefly recapitulating the distinguishing features of organizational capabilities, path dependency, structural inertia, and commitment are identified as the main capability‐rigidity drivers causing a managerial dilemma. In the search for a resolution of this dilemma different approaches of dynamic capabilities are identified and discussed. The analysis shows that the approaches suffer from inherent conceptual contradictions: the dynamization runs the risk of dissolving the original idea and strength of organizational capability building. Ultimately, capabilities would lose the strategic power attributed to them in the resource‐based view. The last section of this paper therefore aims to develop an alternative approach, which aims at preserving the original merits of organizational capability and solving the rigidity issue not by integrating a dynamic dimension into the capability construct but rather by establishing a separate function (‘capability monitoring’). The suggestions mount up to a tier solution. Its logic builds on the dynamics of countervailing processes and second‐level observation. Copyright © 2007 John Wiley & Sons, Ltd.     

Subcultures and sustainability practices: the impact on understanding corporate sustainability

In this paper we present findings of how employees from a single organization understand corporate sustainability. Responses from 255 survey participants indicate (1) that differences exist in how employees understand corporate sustainability and (2) that these differences can be partially explained by the presence of organizational subcultures and by differences in employee awareness of the organization's sustainability practices. In particular, findings reveal that employees from a subculture with a stronger emphasis on hierarchical and bureaucratic values emphasize an economic understanding of corporate sustainability. Implications for research and practice are discussed. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

Beyond the line: exploring the HRM responsibilities of line managers,project managers and the HRM department in four project-oriented companies in the Netherlands,Austria, the UK and the USA

The topic of what human resource management (HRM) responsibilities are devolved from the HRM department to line managers has attracted much interest in recent years. We report findings from a study on the devolution of HRM practices in four project-oriented companies (POCs) and argue that although HRM practices are carried out beyond the HRM department, they are also carried out beyond the line. While the literature on devolving HRM responsibilities to line management is burgeoning, the HRM responsibilities of managers beyond the line organization are neglected. We make two contributions to the literature. Firstly, our study reveals that some HRM practices are the domain of the project manager rather than either the line manager or the HRM department. The complex interplay of the roles of the HRM department, line management and project management creates challenges and pitfalls where people are managed across the boundaries of the permanent and temporary organization. We identify a potentially powerful role for the HRM department in both monitoring and guiding the different players from the line and the project organizations, and in protecting the well-being of employees whose work traverses these organizational boundaries. Our second contribution is that we map the diversity of practices in different POCs for managing the interplay between the three main parties delivering HRM practices and offer project orientation as a contextual indicator that contributes to diversity in HRM practices.     

Retirement and Healthy Eating

This paper investigates the effect of retirement on healthy eating using data drawn from the Survey of Health, Ageing and Retirement in Europe (SHARE). We estimate the causal effect of retiring from work on daily fruit or vegetable consumption by exploiting policy changes in eligibility rules for early and statutory retirement. Our results show that changes in eating behaviour upon retirement are gender-specific: retirement induces men to reduce healthy eating; it has no effect on women. We further show that, for men, retirement increases the probability of becoming obese.     

Measuring Farmer Risk Preferences in Europe: A Systematic Review

We present a systematic review of the extensive body of research on farmer risk preference measurement across Europe. We capture the methodological developments over time and discuss remaining challenges and potential areas for further research. Given the constantly evolving policy environment in Europe, and increasing climate-change related risks and uncertainties, there is large value to be gained from enhancing our understanding of this fundamental aspect of farmers’ decision-making processes and consequent actions.     

Firm strategies in expanding and diversifying exports

This paper provides novel empirical evidence on the patterns and dynamics of exports by Irish firms over the past two decades from a highly detailed data set of export records at the firm‐product‐destination level. We identify patterns of export concentration and specialisation and how these evolved over time. Firms’ strategies for export growth along product and destination markets mixes are then examined and the contributions of intensive (average sales) and extensive (number of products or markets) margins to overall exports and to export growth are calculated. We find that most exporting firms are quite small, selling a few products to a small number of destinations while export values are dominated by a relatively small group of highly globalised large firms selling many products to many destinations. Continuing exporters frequently introduce new products, drop products and enter and exit markets. Export growth in the case of Irish‐owned exporters appears largely driven by the extensive margin of product and destination changes. However, the opposite pattern holds for foreign‐owned firms with growth mainly coming from the intensive margin.     

Die Wirkung der Produktpräsentation auf die Abschlussentscheidung und die Entscheidungszufriedenheit bei Versicherungsprodukten

For insurances sales and communication it is important to know, how the context of presenting products influences purchasing decision and customer satisfaction. Within an experimental study we analyzed the influence of presentation (one vs. multiple products, sequential vs. simultaneous presentation, and three vs. two products). The results show that customers are more likely to buy an insurance product if they are exposed to multiple products rather than to only one product, though decision satisfaction suffers if multiple options are presented. Practical implications and limitations are presented and future research opportunities are discussed.     

Credit-based early warning indicators of banking crises in emerging markets

This article explores the role of credit-based variables as early warning indicators (EWIs) of banking crises in the context of emerging economies. We collect data on bank and total credit to the private sector in emerging markets and evaluate the signalling performance by using the area under the receiver operating characteristics (ROC) curve (AUC). Our results show that nominal credit growth and the change in the credit-to-GDP ratio have the best signalling properties and significantly outperform the credit-to-GDP gap in almost all specifications for policy-relevant horizons. These findings are in stark contrast with the results on advanced economies, where the credit-to-GDP gap is the single best performing EWI. Our results emphasize the importance of caution when applying statistical methods calibrated for advanced markets to emerging economies.