GLOBAL GAMES WITH STRATEGIC SUBSTITUTES

We study global games with strategic substitutes. Specifically, for a class of binary‐action, ‐player games with strategic substitutes, we prove that under payoff asymmetry, as incomplete information vanishes, the global games approach selects a unique equilibrium. We characterize this equilibrium profile ; players employ switching strategies at different cutoff signals, the order of which is directly determined by payoff asymmetry. We provide examples that illustrate our result and its connection with dominance solvability. We extend the global game literature, which has thus far been developed for games with strategic complementarities, to new applications in industrial organization, collective action problems, finance, etc .     

Entrepreneurial,market, learning and networking orientations as determinants of business capability and international performance: the contingent role of government support

International Entrepreneurship and Management Journal - This study presents a business capability model that connects strategic orientations, business capability, government support, and...     

Time Management in the Cost Evaluation of Limited Resource Programs

Planning, implementing and evaluating an intervention program all hinge around time. A program’s actions are planned according to a forecast of the time required to achieve certain objectives, and the program’s implementation among a group of users is conditioned by its real time application. Similarly, program evaluation needs to take into consideration the time resource when analysing objectively the extent to which a program’s targets have been reached, and when conducting a cost analysis of the program. In limited resource programs, any disparity between the scheduled time and the real time available can have serious consequences, and even undermine a program’s efficacy. Time management, above all where resources are limited, is therefore the linchpin in the planning, implementation and evaluation of an intervention program. In this study we analyse the utility of PERT and CPM as basic tools for the efficient time management of limited resource programs.     

The Performance of Structural Change Tests

This paper provides analytical and Monte Carlo studies of the effect of different types of structural change (residual variance, process mean and process persistence) on the performance of the Chow/Wald stability test. We focus on the first-order autoregressive model, which has been used to estimate and assess changes in inflation persistence. Our results show that the autoregressive model is a difficult subject for the Chow test.     

Initial Shelf Space Considerations at New Grocery Stores: An Allocation Problem With Product Switching and Substitution

Managing limited display areas is an increasingly challenging task in the grocery retail industry, especially given the current high levels of product proliferation. The decision of how to best allocate and manage shelf space is critical to grocery retail profitability. Moreover, this decision is escalated for initial shelf space considerations at new grocery stores. Without loss to generality, this paper presents a new approach to the shelf space allocation problem that could be applied to new grocery stores for determining their initial shelf space consideration by incorporating consumer behavior actions based on the consumer’s decision process.     

Reducing intentions to resist future change: Combined effects of commitment‐based HR practices and ethical leadership

Change management, and particularly the human side of change, is a central tenet of the strategy of contemporary organizations. However, there is little evidence concerning how strategic HR practices influence how individuals anticipate and react to the implementation of a major change and how direct supervisors influence that process. With a sample of 191 employees from multiple organizations, who completed two surveys with a four‐week lag, we examined the role of commitment‐based HR practices on employees’ intentions to resist future change. We found that commitment‐based HR practices contribute to a decrease in intentions to resist future change, measured four weeks later, via increased affective commitment to change. Moreover, we found that this relationship is conditional on ethical leadership, in that it is significant when ethical leadership is high but not when it is low. Building on social exchange and uncertainty reduction theories, our findings contribute to the literature by examining how and under what boundary conditions HR practices are an effective means for organizations to anticipate and manage change.     

Raising the bar (7)

This editorial summarises the papers published in issue 13.1 so as to raise the bar in applied spatial economic research and highlight new trends. The first paper adopts a scale neutral approach to investigate the spatial mechanisms that cause regional innovation and growth. The second paper claims that population-weighting when calculating indices of regional inequality might lead to inconsistent outcomes. The third paper estimates the effect of distance between family residence and higher education institution on a student's academic performance, thereby accounting for endogenous regressors. The fourth paper shows an inverted U-shaped relationship between economic development at region of origin and the propensity to migrate using a multilevel approach. The fifth paper provides spatial econometric evidence of price competition between sellers of used books on Amazon.com. The last paper estimates a hedonic housing price equation and parameterizes the spatial weight matrix to determine how far back in time buyers, sellers and realtors are looking at the housing market.     

The Microeconomic Impacts of Employee Representatives: Evidence from Membership Thresholds

Employee representatives in firms are a potentially key but not yet studied source of the impact of unions and works councils. Their actions can shape multiple drivers of firm performance, including collective bargaining, strikes, and training. This article examines the impact of union representative mandates by exploiting legal membership thresholds present in many countries. In the case of Portugal, which we examine here, while firms employing up to forty‐nine union members are required to have one union representative; this increases to two (three) union reps for firms with fifty to ninety‐nine (100–199) union members. Drawing on matched employer–employee data on the unionized sector and regression discontinuity methods, we find that a one percentage point increase in the legal union representative/members ratio leads to an increase in firm performance of at least 7 percent. This result generally holds across multiple dimensions of firm performance and appears to be driven by increased training. However, we find no effects of union representatives on firm‐level wages, given the predominance of sectoral collective bargaining.     

Ownership structure and debt maturity: new evidence from Spain

Companies can use supplier financing as a source of short-term finance. The main objective of this paper is to extend the literature on the determinants of accounts payable and to test whether the accounts payable follow a model of partial adjustment. To do this, we use a sample of 3,589 small and medium sized firms in the UK. Using a dynamic panel data model and employing GMM method of estimation we control for unobservable heterogeneity and for potential endogeneity problems. The results reveal that firms have a target level of accounts payable. In addition, we find that larger firms, with better access to alternative internal and external financing and with a lower cost, use less credit from suppliers. Moreover, firms with higher growth opportunities use more trade credit for financing sales growth.     

The return to firm investments in human capital

In this paper we estimate the rate of return to firm investments in human capital in the form of formal job training. We use a panel of large firms with detailed information on the duration of training, the direct costs of training, and several firm characteristics. Our estimates of the return to training are substantial (8.6%) for those providing training. Results suggest that formal job training is a good investment for these firms possibly yielding comparable returns to either investments in physical capital or investments in schooling.