What factors determine the outsourcing intensity? A dynamic panel data approach for manufacturing industries

The present article investigates the determinants of outsourcing production using a panel of 93 Spanish manufacturing industries for the period 1993 to 2002. Outsourcing is measured as production tasks which are contracting out to external suppliers, a more direct and suitable indicator. After controlling for unobserved heterogeneity and simultaneity, our results show a high persistence of the outsourcing intensity. Moreover, outsourcing of production is positively related to unit labour costs, skills requirements, national ownership and orientation to international markets. We also find evidence for a negative link between the outsourcing intensity and the share of small firms.     

Does computer-based training impact maintenance costs and actions? An empirical analysis of the US Navy’s AN/SQQ-89(v) sonar system

The United States Navy decided in the early 2000s to replace traditional, instructor-led schoolhouse training with computer-based training (CBT). While employing CBT may produce gains in knowledge acquisition and lower costs for repetitive, low-skill work, there is a lack of empirical evidence whether these benefits exist for more highly skilled Navy operations. Anecdotal evidence suggests that CBT failed to sufficiently prepare new sailors for sophisticated systems’ maintenance and operation. To determine the validity of this evidence, we examine how CBT has affected the AN/SQQ-89(v) sonar. We empirically analyse whether the Navy’s introduction of CBT significantly altered fleet maintenance costs, actions and training requirements, by assembling a unique data set of ships, locations, personnel, maintenance costs and maintenance actions. Controlling for the Navy’s plan to man the system, the number of authorized billets and the number of personnel on board, we find that CBT adversely impacts costs, actions and maintenance hours for the sonar system.     

Determinants of pension plan fees in Spain

Pension plans and funds represent a substantial part of the welfare systems in both Europe and Spain. One of the most important factors in the choice of a plan or fund is the performance it obtains. In view of the influence that fees have on performance, the objective of this study is to analyse the variables that determine the management and custodial fees of individual pension plans. The Spanish market for pension plans and funds sets legal caps on these fees, and at the same time the majority of them are commercialized and managed by financial institutions, which can in turn generate a conflict of interests. In this article, we estimate models with censured variables and our findings show how the average investment per plan, the legal status and the size of the management company to which the plan belongs, and the style of the plan are all relevant determinants of the management fee. In turn, the custodial fee is determined by the legal status of the custodial company, the size, the return and the type of plan.     

Leveraging supplier capabilities: The role of locus of capability deployment

This study adds to the resource‐based view by studying how client firms may gain performance benefits from supplier IT capabilities in market‐based arrangements where the supplier's IT capabilities are readily available to multiple client firms. I argue that the locus of supplier capability deployment, i.e. whether supplier capabilities are deployed at the client (in‐sourcing) or supplier (outsourcing), has implications for client firm performance. The findings show that in‐sourcing leads to complementary effects between supplier IT capabilities and client operational capabilities. In contrast, clients with weaker operational capabilities benefit from outsourcing the respective activity to the supplier, and may even be able to reduce their capability disadvantage through outsourcing. The data on 964 U.S. credit unions contracting with 22 technology solution providers is archival. Copyright © 2012 John Wiley & Sons, Ltd.     

Banking crises: An equal opportunity menace

The historical frequency of banking crises is similar in advanced and developing countries, with quantitative parallels in both the run-ups and the aftermath. We establish these regularities using a dataset spanning from the early 1800s to the present. Banking crises weaken fiscal positions, with government revenues invariably contracting. Three years after a crisis central government debt increases by about 86%. The fiscal burden of banking crisis extends beyond the cost of the bailouts. We find that systemic banking crises are typically preceded by asset price bubbles, large capital inflows and credit booms, in rich and poor countries alike.     

Implications of internal organization structure for firm boundaries

Knowledge issues are central to governance choice. Organization structure influences knowledge flows and costs of knowledge creation and exchange inside the firm. Yet the question of how a firm's internal structure affects its governance choice for new activities has received scant empirical attention. We examine the role of internal structure, specifically unit autonomy and lateral coordination, in a firm's governance decision for new, knowledge‐intensive activities. The findings show that internal structure is a ‘shift parameter’ that affects governance choice by moderating the relationship between task complexity and degree of integration. The empirical setting is the U.S. banking industry and its adoption of Internet banking. Copyright © 2013 John Wiley & Sons, Ltd.     

The Effect of Product Innovation,Promotion, and Price on Consumer Switching to Private Labels

The channel conflict that exists between retailers and manufacturers of branded products has dynamically shifted as large retailers have expanded their offerings of private label products. This study investigates the ability of consumer packaged goods companies to exert influence in the channel by testing which marketing initiatives implemented by manufacturer brands are more efficient in preventing consumer switching to private labels. We use a hazard model to simultaneously measure the effects due to product innovation, promotion, and price on consumer switching and how strong those effects are. We find that as expected product innovation, promotion, and price exert a negative effect on the consumer likelihood of switching to private labels. However, we find the strongest effect on promotion suggesting the importance of understanding how consumers perceive value in the national brands offer.     

A Triple Bottom Line Dominant Logic for Business Sustainability: Framework and Empirical Findings

ABSTRACT

Purpose: A limited number of studies have attempted to reveal the mechanism underlying integration amongst the economic, environmental, and social components of business sustainability (BS). BS refers to a company’s efforts to go beyond focusing only on profitability, also to manage its environmental, social, and broader economic impact on the marketplace and society as a whole. The research objective of this study is therefore to develop and test a framework of BS, based upon the triple bottom line (TBL) approach.

Methodology/approach: Companies with more than 100 employees were identified to take part in the study. Respondents included executives in charge of BS initiatives, such as chief sustainability officers, sustainable business managers, and CEOs. Ultimately, 261 companies agreed to participate. Questionnaires (and an accompanying letter with survey details and contact information on the researchers) were sent to the targeted key informant in the company. A total of 110 usable questionnaires were returned, generating a final response rate of 42.1%.

Findings: To assess the underlying pattern of dimensions and items of the BS framework, factor analyses were conducted. An initial factor analysis revealed 3 separate subframeworks of BS (economic, social, and environmental dimensions of the TBL-approach), all of which demonstrate satisfactory factor solutions. A second factor analysis iteration, containing all subframeworks of BS (i.e., 20 dimensions and 60 items) generated a total explained variance of 80%, although the factor loadings of 3 dimensions and their items merged with 3 other dimensions. The final factor solution generated a satisfactory 17-factor solution and explained 83% of the variance, indicating satisfactory convergent, discriminant, and nomological validity, as well as reliability of each dimension.

Research implications: The study proposes a BS framework and concludes that the measurement metrics of the BS framework, which were developed and tested, are valid and reliable. Suggestions for applications, research limitations, and further research are provided. The BS framework may be used by companies to assess and monitor their sustainable business practices in the marketplace and society. The framework provides managerial structure and guidance in terms of the dimensions to be taken into consideration and also the items for measuring each of the dimensions of the BS framework in the market and society. The study is not without its limitations and further work is needed to verify the validity and reliability of the empirical findings of the BS framework across contexts and over time. As it stands, the investigation provides a foundation for further research, offering opportunities for updates, amendments, and refinements. Originality/value/contribution: A principal contribution of this study is the empirically developed and tested BS framework. It is based on the elements of the TBL approach, consisting of dimensions and measurement items. The BS framework and its hierarchical layers provide a structured contribution that assesses and monitors the managerial implementation of sustainable business practices and sustainable business models. Furthermore, the structural properties of the BS framework, in relation to contextual variables, provide additional research opportunities for the future.     

The role of comparative advantage in trade within industries: A panel data approach for the European Union

The Role of Comparative Advantage in Trade within Industries: A Panel Data Approach for the European Union. — A large share of EU member states trade is intra-industry trade (IIT) in the period 1985-1996; in particular, IIT is based on products differentiated in quality (vertical IIT). Moreover, exports from southern countries are located mainly at the lower end of the price-quality spectrum, whereas those countries with higher per capita incomes are located at the higher end. According to the vertical IIT models, we hypothesize that commercial specialization of members states over the quality spectrum within industries is explained by differences in technological, physical and human capital. The results show that comparative advantage is an important driver of the pattern of European trade within industries.