Anne Case and Angus Deaton: Deaths of despair and the future of capitalism

Business Economics -     

Corporate Responsiveness to Social Pressure: An Interaction-Based Model

The study introduces an interaction-based model that illustrates the iterative process of corporate responsiveness to social pressure. The model is then applied to a recent case of international relevance. The study implies that corporate management can apply three types of management approaches when managing relations with society, depending on their perception of social pressure: tactic, strategic or no action. This is then reflected in their practice of public relations (PR). Ethical leadership is considered to be manifested by the proactive practice of PR, which aims at mutual understanding between the organisation and the stakeholders. The firm??s interaction with the stakeholders does not guarantee that social pressure would actually be relieved. Rather, PR fails in its task of establishing and maintaining favourable relationships if it does not meet stakeholders?? expectations. Identifying emerging issues, relevant publics and preferable communication methods within a given context is the precondition for strategic, proactive management of stakeholder relations. This is especially relevant in the international business environment where the firm is challenged with increased institutional distance and pressure.     

Using enterprise architecture to analyse how organisational structure impact motivation and learning

When technology, environment, or strategies change, organisations need to adjust their structures accordingly. These structural changes do not always enhance the organisational performance as intended partly because organisational developers do not understand the consequences of structural changes in performance. This article presents a model-based analysis framework for quantitative analysis of the effect of organisational structure on organisation performance in terms of employee motivation and learning. The model is based on Mintzberg’s work on organisational structure. The quantitative analysis is formalised using the Object Constraint Language (OCL) and the Unified Modelling Language (UML) and implemented in an enterprise architecture tool.     

The Psychic Distance Postulate Revised: From Market Selection to Speed of Market Penetration

In this paper we revise the psychic distance postulate of the Uppsala Model (Johanson and Vahlne, 1977, 1990) by injecting more recent findings (i.e., distinguishing between selection of foreign markets and time needed to achieve sufficient penetration in foreign markets and the role of social capital). The model we propose posits that a higher psychic distance decreases the speed of market penetration. On distant markets, internationalizing technology-based ventures need more time to establish a position in the foreign network and to obtaining positive cash flow. Our model presents social capital as a mean to overcome the psychic distance and to increase the speed of market penetration. We build our model on four case studies on technology-based new ventures internationalizing at very early ages.     

David Hume on Banking and Hoarding

David Hume opposes banks and favors hoarding. The only bank he reluctantly approves of is a public, 100% reserve bank. Other banks increase money supply and prices, hindering exports and economic growth. For Hume, a 100% reserve public bank would lead to “the destruction of paper‐credit” ([1752] 1985, p. 285), fostering economic growth instead by preventing inflation. Additionally, a 100% reserve bank hoards a large quantity of gold and silver, which is available in case of national emergency.     

Pursuing fitness: how dialectic goal striving and intersubjectivity influence consumer outcomes

Consumers increasingly engage expert service providers in their goal pursuits. While the literature focuses primarily on goal attainment, this presents just one stage of extended goal striving. Using Bagozzi and Dholakia’s [(1999). “Goal Setting and Goal Striving in Consumer Behavior.” Journal of Marketing 63 (Special Issue): 19–32] goal-striving framework as the foundation, this qualitative research examines the client–trainer interactions in the goal-striving process. We find that goal striving with the aid of expert service providers entails intersubjectivity. The consumer wrestles with multiple understandings of fitness to determine and pursue a goal. This considers the individual’s perceptions and desires, cultural and societal discourses, and trainer’s views. Effective goal pursuit requires shared understanding between client and trainer. It entails a moment of release when consumers accept their inability to translate goals into actions alone. This occurs at multiple stages of the process. By examining the influence of service providers on goal strivers, this research extends our understanding of goal striving as an accepted agreement between the Self and Other.     

Nature and dynamics of appropriability: strategies for appropriating returns on innovation

The appropriability regime represents a combination of available and effective means of protecting intangibles and innovations, their profitability, and the increased rents due to research and development. It has a central role in appropriating returns on investment, but the nature of appropriability and the strategies for appropriation may not be fully known to managers, or even to researchers. The aim in this study, therefore, is to categorise the appropriability regime by extending, combining and complementing previous research. We also conducted a survey among 299 companies in order to determine the roles, availability, strength and efficiency of appropriability mechanisms. Such mechanisms offer institutional protection in the form of intellectual property rights, contracts and labour legislation, tacitness of knowledge, lead-time, practical secrecy and human-resource management. As a result, we suggest a conceptual clarification of the appropriability regime, and offer empirical evidence to increase understanding of the appropriation of returns on innovation.     

The Impact of Price Level and Appeal Type in Hotel Advertising: A Pilot Study

Limited extant experimental research on advertising appeal effectiveness in the presence of price cues in a service offer provides the motivation for this study. While past research has found support for the effectiveness of both rational and emotional appeals in services marketing, this research, in the context of hotel advertising, shows that appeal type effectiveness may vary with the price level of the service. More specifically, this study finds that rational appeals are more effective than emotional appeals for low-priced hotels, but for high-priced hotels, rational and emotional appeals show no significant difference in influencing consumer evaluations of the offer.