Is there a J-curve for Azerbaijan? New evidence from industry-level analysis

This paper estimates the J-curve for Azerbaijan using quarterly industry-level data over the 2000–2009 period. Empirical results show that in 3 of the 10 strategic industries there is strong evidence for the fulfilment of the Marshall–Lerner condition, as the trade balance improves in the long run in reaction to a currency devaluation. In most industries the J-curve pattern is observed in the short run. All 10 cases exhibit long-run cointegration and are stable according to the CUSUM and CUSUMSQ stability tests. These findings are largely consistent with the existing literature on the Azerbaijani J-curve and carry important policy implications.     

Indirect networks: an intangible resource for biotechnology innovation

In the context of the emergence of new modular organizational forms, especially in high-tech sectors such as the biotechnology sector, this article proposes that while a firm observes benefits from direct alliances, it also benefits from indirect linkages. First, a theoretical framework revolving around indirect ties is built on the basis of social network and innovation management literature. It ends with the proposition of two research hypotheses linking the indirect network position of a firm to its innovation capacities. To test those hypotheses, data on strategic partnerships and collaborations were collected through 40 interviews with biotech firms from the nutrition sector in the biotech clusters of Quebec (Canada). Using network analysis, centrality measures and hierarchical regressions, results of this study indicate that by occupying a central position in a network of indirect ties, a firm is more likely to access useful knowledge from its direct partners and increase innovation. We suggest, as a conclusion, that indirect network position could be considered as an intangible strategic resource for biotech firms.     

Impact of organizational justice on customer satisfaction in the hospitality industry of Pakistan: The moderating role of uncertainty avoidance

This study investigates the impact of distributive justice, procedural justice, interactional justice, and informational justice on customer satisfaction in the hospitality industry of Pakistan, also the study investigates the moderating role of uncertainty avoidance on all relationships. Data were collected from 309 consumers from all provinces of Pakistan. A significant positive impact of dimensions of organizational justice on customer satisfaction is found; however, contrary to expectations, no moderating role of uncertainty avoidance is proved for any of the relationships. At the end of the article, the results of the study are discussed. This study shows potential implications for service providers.     

The Libertarian Character of the Islamic Economy

This article reviews the shari'a approach to markets and examines its treatment by certain twentieth‐century Islamic economists such as Nejatullah Siddiqui, Nawab Haider Naqvi, Umer Chapra and M.A. Mannan. It characterises the arguments of these economists as largely statist, redistributive and socialist, possibly reflecting post‐colonial intellectual experiences. Yet shari'a endorses negative freedom by proscribing price controls and guaranteeing consumer protection from coercion. Islamic law, this article argues, as evinced in both revealed knowledge and human exegesis, has endorsed a market‐friendly, libertarian and limited‐government philosophy.     

Multi-item dynamic lot-sizing with delayed transportation policy

We optimize ordering and inbound shipment decisions for a manufacturer that sources multiple items from a single supplier. The objective is to satisfy the requirements in the production plan with minimum transportation and inventory holding costs over a multi-period planning horizon. Transportation costs are charged to the manufacturer on a per truck shipment basis. We investigate the option of delaying a less-than-full truckload shipment to the next period, by utilizing the safety stocks as needed. We analyze the impact of delaying shipments on both cost and service levels in stochastic environments through experiments with data from a bus manufacturer. The results indicate that the proposed policy reduces both holding and transportation costs without creating much stock-out risk.     

Estimating Tourist Demand through Cointegration Analysis: Swedish Data

The purpose of this paper is to use co-integration analysis to estimate the long-run relationship between monthly tourist flows to Sweden from American, European and Scandinavian countries. Also, the factors that influence arrivals, such as income, price, exchange rate, the Chernobyl nuclear accident and the 1991 Gulf War are estimated. An econometric model approach of cointegration analysis is adopted to estimate the effect of the above factors on the number of visitors to Sweden and the area No.6 in Sweden (SW:6). Monthly time-series data for the period 1980-1998 were used. The estimated model does not indicate any statistically significant effect of the Chernobyl nuclear accident, or the 1991 Gulf War on international tourism demand. On the other hand, the estimated model does indicate statistically significant effect of income, exchange rate and the consumer price index (CPI) on international tourism demand. The estimation and diagnostic testing strategy supports the specification of the model.     

Should the government directly intervene in stock market during a crisis?

Unlike foreign exchange markets where central banks frequently intervene, the governments strive not to intervene in the stock markets since intervention transmit negative signals and carry market-related side effects. The main reasons often cited in support of intervention are to bring price stability and to restore investors’ confidence. During the recent economic turmoil, opportunities for the governments to intervene in the stock markets were mainly exploited in emerging and developing countries. We study the outcome of the Russian government's intervention in its major stock market between September and October 2008. This intervention was intended to reverse the sudden and swift declining trend in traded security prices by altering the market's expectations. By using a combination of event study and a multivariate GARCH model, our findings does not support direct government intervention in the stock market during a crisis.     

Innovation and corporate sustainability: An investigation into the process of change in the pharmaceuticals industry

Although there has been considerable research effort directed at refining the content of corporate environmental performance, e.g. corporate environmental reporting and accounting, there has been relatively little empirical investigation to date on the process of corporate eco‐change. This research reports on the quantitative and qualitative results of a survey of German and UK pharmaceuticals firms, which evaluated the significance of the various incentives, both intra‐firm and external to the organization, that have stimulated eco‐change. We find that, although the industry is one that has been characterized by voluntary agreements and proactive behaviour in the past, regulation still remains the main driver for sustainability improvements. New technology is the second most important driver. Stakeholder dialogue and inter‐firm cooperation were both revealed to be relatively weak forces for eco‐change. The study also tested the validity of the conventional neo‐classical economic world‐view of innovation in firms versus a more radical co‐evolutionary one. The former assumes that firms respond only to profit signals and do so efficiently, whereas the latter assumes that change is path dependent; i.e., the firms’ norms and routines and past experiences are influential. We find that, although the neo‐classical perspective stands up to our empirical investigation of eco‐innovation to some degree, the co‐evolutionary approach better captures the complexity of the corporate eco‐change process. Copyright © 2001 John Wiley & Sons, Ltd. and ERP Environment