Profits,Layoffs, and Priorities

This study examines the deliberations of professional MBA students when presented with a dilemma that weighs the difference between commitments to profit- maximization against concerns for fired workers who would need to seek a new job during a recession. Using content analysis, accounting, economic, and ethically based rationales that differ from the profit-maximizing recommendation are categorized. Results also show that those who make non-profit-maximizing recommendations consider, but ultimately reject the profit-maximizing approach to layoffs.     

The study of emerging industries: Recognizing and responding to some central problems

The emergence of new industries is an important phenomenon that remains relatively neglected by researchers. We address several theoretical and methodological problems that impede the study of emerging industries. In doing so, we propose that historical archives represent a critical and under-utilized research resource. More generally, we contend that advancing the study of emerging industries will require scholars to develop several distinct categories of research, to make more extensive use of qualitative and historical data, to collaborate across traditional boundaries of domain and method and to engage key practitioners, including professional archivists and institutional entrepreneurs.     

EFFICIENT HEDGING OF EUROPEAN OPTIONS WITH ROBUST CONVEX LOSS FUNCTIONALS: A DUAL‐REPRESENTATION FORMULA

Motivated by numerical representations of robust utility functionals, due to Maccheroni et al., we study the problem of partially hedging a European option H when a hedging strategy is selected through a robust convex loss functional L(·) involving a penalization term γ(·) and a class of absolutely continuous probability measures . We present three results. An optimization problem is defined in a space of stochastic integrals with value function EH(·) . Extending the method of Föllmer and Leukerte, it is shown how to construct an optimal strategy. The optimization problem EH(·) as criterion to select a hedge, is of a “minimax” type. In the second, and main result of this paper, a dual‐representation formula for this value is presented, which is of a “maxmax” type. This leads us to a dual optimization problem. In the third result of this paper, we apply some key arguments in the robust convex‐duality theory developed by Schied to construct optimal solutions to the dual problem, if the loss functional L(·) has an associated convex risk measure ρ^L(·) which is continuous from below, and if the European option H is essentially bounded.     

Improving human capital through knowledge management practices in knowledge-intensive business services

This article studies how knowledge management (KM) practices improve human capital. We conceptualize KM practices through six dimensions and test the relationship between each dimension and human capital. The empirical study which was carried out in Spanish firms belonging to the biotechnology and telecommunications industries shows that introducing KM practices has a positive impact on the improvement of human capital. In fact, firms that introduce practices related to continuous learning and the development of an innovative culture that encourages R&D projects improve the skills or abilities of their human capital.     

Targeting and distribution in complex emergencies: Participatory management of humanitarian food assistance

The extensive literature on community participation in the targeting and management of humanitarian food assistance suggests that participatory approaches work best in slow-onset emergencies with no conflict or displacement. Yet the policies of many agencies—and compliance with Sphere minimum standards—require that the recipient community participate in decisions about the assistance they receive including targeting, regardless of the causes of the emergency. This paper analyzes current practice in the targeting and management of humanitarian food assistance in complex emergencies, the constraints to recipient communities’ participation, and the possibilities for participatory approaches to improve targeting.     

Comparing different explanations of the volatility trend

We analyze the puzzling behavior of the volatility of individual stock returns over the past few decades. The literature has provided many different explanations to the trend in volatility and this paper tests the viability of the different explanations. Virtually all current theoretical arguments that are provided for the trend in the average level of volatility over time lend themselves to explanations about the difference in volatility levels between firms in the cross-section. We therefore focus separately on the cross-sectional and time-series explanatory power of the different proxies. We fail to find a proxy that is able to explain both dimensions well. In particular, we find that Cao et al. [Cao, C., Simin, T.T., Zhao, J., 2008. Can growth options explain the trend in idiosyncratic risk? Review of Financial Studies 21, 2599-2633] market-to-book ratio tracks average volatility levels well, but has no cross-sectional explanatory power. On the other hand, the low-price proxy suggested by Brandt et al. [Brandt, M.W., Brav, A., Graham, J.R., Kumar, A., 2010. The idiosyncratic volatility puzzle: time trend or speculative episodes. Review of Financial Studies 23, 863-899] has much cross-sectional explanatory power, but has virtually no time-series explanatory power. We also find that the different proxies do not explain the trend in volatility in the period prior to 1995 (R-squared of virtually zero), but explain rather well the trend in volatility at the turn of the Millennium (1995-2005).     

Roadmapping for technology push and partnership: A contribution for open innovation environments

There are several tools in the literature that support innovation in organizations. Some of the most cited are the so-called technology roadmapping methods, also known as TRM. However, these methods are designed primarily for organizations that adopt the market pull strategy of technology-product integration. Organizations that adopt the technology push integration strategy are neglected in the literature. Furthermore, with the advent of open innovation, it is possible to note the need to consider the adoption of partnerships in the innovation process. Thus, this study proposes a method of technology roadmapping, identified as method for technology push (MTP), applicable to organizations that adopt the technology push integration strategy, such as SMEs and independent research centers in an open-innovation environment. The method was developed through action-research and was assessed from two analytical standpoints: externally, via a specific literature review on its theoretical contributions, and internally, through the analysis of potential users' perceptions on the feasibility of applying MTP. The results indicate both the unique character of the method and its perceived implementation feasibility. Future research is suggested in order to validate the method in different types of organizations     

Deforestation dynamics and policy changes in Bolivia's post-neoliberal era

This work compares the effects of neoliberal and post-neoliberal land-use policies on forest cover along the Corredor Bioceánico of southeastern Bolivia to determine if rates of agriculturally driven forest clearance have changed since the Morales’ administration came to office in 2005. Satellite image analysis, supported by semi-structured interviews with farmers and representatives of key institutions, shows that deforestation for commercial agriculture in Santa Cruz continues and has increased in certain “hotspots”. Previous research has shown that the environmental effects of neoliberalism on forest cover are varied, but more broadly, reduced state intervention has meant less environmental regulation and greater deforestation, while strong government is better able to curtail deforestation. Although neoliberal policies triggered an unprecedented level of forest clearing in Bolivia, rates have generally continued to increase and can be indirectly linked to the administration's new agrarian reform and pro-environmental regulations. This trend is counterintuitive and stems from unanticipated responses such as deforestation through fire to prove productive use under the reform's socio-economic function requirements. Given increased regulation and enforcement of forest clearing and burning under Morales, in contrast to the neoliberal era, our analyses suggest that rates will continue to increase under the current political climate, which has further polarized the opposition in Santa Cruz.     

The Economic Impact of Marena’s Investments on Sustainable Agricultural Systems in Honduras

This study examines the economic impact of sustainable agricultural production systems in Central America. In particular, we investigate the impact of investments promoted by the MARENA Programme in Honduras on the total value of agricultural production (TVAP) of its beneficiaries. Propensity Score Matching techniques along with the Difference‐in‐Differences framework are used to mitigate biases stemming from differences in observed as well as unobserved (time‐invariant) characteristics between beneficiaries and a control group. The econometric estimates suggest that MARENA has had a positive and significant effect on the TVAP of beneficiaries. In addition, the analysis shows that, under alternative scenarios, MARENA yielded higher than expected internal rates of return. The results of this study shed light on the response of small‐scale hillside farmers to economic incentives and lend support to the role of natural resource management projects in Central America as a tool to increase household income while also promoting the conservation of natural resources.