Does market power discipline CEO power? An agency perspective

We examine how product market competition (PMC) shapes chief executive officer's (CEO) power. Using various measures to capture both PMC and CEO power, our analyses, which include a quasi‐natural experiment, find evidence that CEOs have less power when the product market is more competitive. Furthermore, the impact of PMC on CEO power is more pronounced for firms with entrenched management, lower CEO ownership, lower analyst coverage, and for firms experiencing good ‘luck’ (windfall performance). Our results suggest that market power can act as a substitute for corporate governance in disciplining CEO power, particularly when prone to agency problems.     

CSR for Happiness: Corporate determinants of societal happiness as social responsibility

Over the past decade, societal happiness has increasingly been considered important to public policy initiatives globally, supported by interdisciplinary scholarly efforts spanning the social sciences, economics, and public health. Curiously, despite for‐profit corporations being core social institutions of modern societies, scant attention has been given to the social role and responsibilities of corporations in relation to societal happiness. In this article, we review and integrate research from positive psychology and related disciplines to examine happiness as a social outcome of corporate activity. We propose that corporations have a social responsibility to respect, preserve, and advance people's right to, and experience of, happiness—which we term CSR for Happiness. Within the existing literature, stakeholder happiness has generally been narrowly conceptualized in hedonic terms and has failed to consider the broader impacts of corporate activities on societal happiness. Drawing on advances in psychological theory and research, we provide a holistic conceptualization of happiness, which includes objective, subjective, hedonic, and eudaimonic dimensions of happiness. We offer an integrative conceptual framework, which includes the macro‐to‐micro and micro‐to‐macro pathways through which corporations directly and indirectly impact upon societal happiness. Finally, we consider implications of happiness research for the intersections of business and society.     

Exploring quality of life perceptions in rural midwestern (USA) communities: an application of the core–periphery concept in a tourism development context

Tourism has increasingly become a preferred option for rural economic development. Like other economic opportunities, the purpose is to improve community viability and residents' quality of life. However, the impacts from tourism are sometimes negative and may lead to a decreased quality of life for residents. This empirical study investigates residents' quality of life using the core–periphery (CP) model. Periphery respondents reported a statistically higher overall quality of life, which is at odds with other research. Significant differences in quality of life scores and subsequent indicators highlight the usefulness of the CP model towards understanding tourism impacts to a rural destination. Copyright © 2010 John Wiley & Sons, Ltd.     

Observational Learning from Acquisition Outcomes of Innovation Leaders

We examine how learning from observing the acquisition outcomes of innovation leaders affects the acquisition decisions and performance of followers in an industry. Followers tend to increase the probability of acquisition and the size of an acquisition when innovation leader acquisitions produce more favorable outcomes, and reduce both when innovation leader acquisitions suffer more unfavorable outcomes. Industry competition, environmental uncertainty, prior acquisition experience, geographic proximity, and managerial incentives are important mechanisms affecting observational learning in acquisitions. Follower acquisitions perform better when innovation leaders’ acquisition outcomes convey more favorable signals, and more poorly when they convey more unfavorable signals.     

Attitude toward and Consumption of Fish in Vietnam

This study uses theory of planned behaviour (TPB) as a conceptual framework to investigate the attitude and intention toward the consumption of fish in a cross-sectional survey of Vietnamese consumers. Structural equation modelling (SEM) is used to test the reliability, validity, and relationships in the proposed model. The results show that the variation in the frequency of fish consumption is significantly explained by intention and perceived behavioural control. Intention to consume fish is significantly determined by subjective norms and attitude toward consuming fish as a meal. Perceived behavioural control is significantly related to fish consumption, but not to the intention to consume fish, indicating that there may be a difference between perceived control and actual control. At the specific-belief level, the study found that negative affect, perceived quality, and price are significant indicators that explain 60% of the variation in attitude. Perceived price, time needed to cook and prepare fish as a meal, and the availability of fresh fish are important factors explaining 63% of the variation of the perceived control over fish consumption. The study also provides some managerial implications and suggestions for the seafood sector to expand the domestic markets and gives recommendations for future research.     

Multinational management strategy and ASEAN regional development

This paper reports the findings of a cross-sectional survey of 128 senior managers of multinational corporations in Singapore. Specifically an attempt was made to link the development of ASEAN regionalism to the nature of MNC management, and the strategic posture of the MNC in the ASEAN region. Based on the work of Nye (1971) the study was designed to investigate the extent to which perceptions of the viability of ASEAN were associated to corporate strategic action. The results suggested that the origin of the manager (international expatriate, ASEAN expatriate and local) is statistically associated with technical product decrease, merger growth and market/product decrease strategies. There was no support for the notion that this was due to positive perceptions of ASEAN regionalism.     

Rise and Fall of Multinational Enterprises in Vietnam: Survival Analysis Using Census Data during 2000–2011*

This study examined the survival of multinational enterprises (MNE) in Vietnam during 2000–2011 using Cox hazard models. The characteristics and ownership structure of firms and the nationality of foreign partners are found to be associated with the probability of firm exit, with a firm having greater capital share of foreign partners surviving longer. An efficient local government requiring less time for bureaucratic procedures and inspections is found to be associated with a lower probability of MNE exiting. Meanwhile, transparency in business regulations and predictability in implementing central government policies accelerate the survival of highly competitive MNE.     

Stakeholder theory: A process-ontological perspective

Advocates of stakeholder theory have long known that grasping its key insights requires a specific worldview that is, unfortunately, still not prevalent within the community of strategic management scholars. We argue that this worldview encompasses a process ontology that is radically different from the substance-ontological outlook typical of the mainstream approaches to strategic management. The unquestioned commitment of strategic management scholarship to a substance ontology leads to the viewing of corporations as macro-entities comprising aggregations of discrete autonomous actors each relying on individual choice and instrumental rationality. In contrast, within a process-ontological worldview, corporations and their stakeholders are seen to be sustained and attenuated through social practices and relationships involving interlocking chains of coping actions taken in everyday interactions. We show that adopting a process-ontological worldview presents a much-needed step that may help strategic management scholars reach a better understanding of how stakeholder theory deals with three problems of today's capitalism, those value creation and trade, ethics of capitalism, and managerial mindsets. On this basis, we discuss how to process ontology may lead stakeholder theory to further refine its understanding of business strategy, corporate social responsibility, and the common ground between the firm and stakeholders.     

Spatial Cournot competition in a circular city with more than two dispatches

This paper investigates spatial Cournot competition in a circular city, where the maximal service range of a vehicle is less than half of the perimeter, and a firm needs to initiate more than two dispatches to serve the whole market. We examine a multi‐stage game of location and transportation mode choices, and the subsequent quantity competition between duopoly firms. The findings reveal that non‐maximum dispersion is the unique location equilibrium when duopoly firms deliver products in different transportation modes or when the transportation mode decisions are made endogenously and the fixed cost of a transportation instrument is relatively high.