Commitment and Trust as Drivers of Loyalty in Logistics Outsourcing Relationships: Cultural Differences Between the United States and Germany

This study examines differences in loyalty formation within logistics outsourcing relationships between Germany and the United States. A model of loyalty formation on the basis of commitment and trust is developed and differences between Germany and the United States are hypothesized. They are tested based on 795 logistics outsourcing relationships in the two countries using structural equation modeling. The results indicate that these relationships differ depending on cultural traits relating to trust and commitment. The findings are relevant for practitioners and academics as they paint a more globally informed picture of loyalty formation within logistics outsourcing relationships in which to base both managerial decisions and future research.     

A note on different models of stochastic processes dealt with in the collective theory of risk

Abstract

1. For the definition of general processes with special regard to those concerned in Collective Risk Theory reference is made to Cramér (Collective Risk Theory, Skandia Jubilee Volume, Stockholm, 1955). Let the independent parameter of such a process be denoted by τ, with the origin at the point of departure of the process and on a scale independent of the number of expected changes of the random function. Denote with p(τ, n)dt the asymptotic expression for the conditional probability of one change in the random function while the parameter passes from τ to τ + dτ: relative to the hypothesis that n changes have occurred, while the parameter passes from 0 to τ. Assume further—unless the contrary is stated—that the probability of more than one change, while the parameter passes from τ to τ + dτ, is of smaller order than dτ.     

The impact of collinearity on regression analysis: the asymmetric effect of negative and positive correlations

The purpose of this paper is to ascertain how collinearity in general, and the sign of correlations in specific, affect parameter inference, variable omission bias, and their diagnostic indices in regression. It is found that collinearity can reduce parameter variance estimates and that positive and negative correlation structures have an asymmetric effect on variable omission bias. It is also shown that the effects of collinearity are moderated by the relationship between the dependent variable and the regressors, a consideration not incorporated into most commonly used collinearity diagnostics. The formulae derived enable researchers to assess the sensitivity of regression results to the underlying correlation structure in the data.     

The effects of the Works Progress Administration's anti-malaria programs in Georgia 1932–1947

From 1900 to 1950, malaria rates declined rapidly in the southeast United States. At its peak, malaria infected over 30% of the population. Malaria declined over the period for several reasons: improvements in public infrastructure; development of new insecticides; improvements in agriculture that promoted drainage; increases in incomes; and changes in migration patterns. This paper focuses on public works constructed by the Works Progress Administration (WPA) during the 1930s and subsequent interventions during the 1940s. To estimate the relationship between these malaria programs and malaria rates, I construct a panel of annual county level malaria rates in Georgia from 1932 to 1947. Between 1932 and 1940 the malaria rate in counties that received WPA malaria projects fell from 25.9 deaths per 100,000 to 5.3 deaths per 100,000. The empirical estimates suggest that WPA malaria projects led to 9.1 fewer deaths per 100,000 or roughly 44% of the observed decline in treated counties. Additional public works constructed by the MCWA during World War II, and the introduction of DDT after 1945 completely eliminated malaria in Georgia by 1947.     

A combination of differentiation and consolidation theory and risk-benefit analysis to examine decisions on mastitis prevention

Abstract

Mastitis infections cause severe pain in dairy cows and are the most costly illness to farmers. This study combined differentiation and consolidation (Diff-Con) theory with risk-benefit analysis to explore how risky decisions are perceived and justified after a decision has been taken. More specifically, using survey data from 428 Swedish dairy farmers, their decisions about adopting preventive measures to control mastitis (mastitis control options, MCO) in dairy herds were examined. The analyses included group comparisons with non-parametric rank tests and use of both ordinary least squared regression and seemingly unrelated regression analysis to examine how prior adoption of MCO affects farmers’ attitudes to the MCO. The results showed that MCOs already adopted were rated higher in perceived riskiness (if not implemented) and in expected benefit (for illness prevention) than non-adopted MCOs. Having made the decision to implement a strategy increased the likelihood of that decision being perceived as more beneficial (reducing mastitis) and risky (in terms of disease increase if not implemented), irrespective of the combination of strategies used on the farm, during the post-consolidation stage. No difference in perceived illness prevalence could explain the farmers’ rating of the MCOs. These findings suggest that there may be a path dependency in farmers’ decision-making with respect to MCO. This implies that novel MCOs may have difficulty in achieving wider implementation. These results have implications for the development of strategies to communicate best practices for use of MCOs and for new research on MCOs and farmers’ decision-making.