How to Become Central in an Informal Social Network: An Investigation of the Antecedents to Network Centrality in an Environmental SCM Initiative

Environmental supply chain management (SCM) initiatives often evolve as informal, grassroots efforts that are driven by policy entrepreneurs at lower management levels in an organization. These individuals usually are not in positions of power or authority to convince others to support the initiative. They thus rely on central positions in informal networks to gain access to and influence over other employees to be better able to sell these initiatives. This study examines how individuals arrive at positions of centrality within the networks surrounding environmental SCM initiatives. Linking social network theory and social capital theory with findings from the organizational behavior and environmental arena, the study investigates how an individual's proactive personality and commitment profile—affective, normative, and continuance commitment—might affect network centrality through the mediating role of championing behavior. Investigating the implementation of an environmental SCM initiative at a multinational enterprise, the authors identified a 90‐actor social network surrounding the initiative. The results provide evidence that championing behavior fully mediates the relationship between commitment and network centrality and to a lesser extent between proactive personality and network centrality. These findings suggest that championing behavior can enable an actor to become more central in social networks. Further, the results indicate that in an environmental SCM context, engendering the right type of commitment is a much more important driver of championing behavior than the proactive personalities of individual actors. This finding suggests that even employees who do not have proactive personalities can champion environmental initiatives and become central within the informal networks that surround these initiatives, if they strongly desire to support the initiative and believe that the initiative will lead to positive change.     

PROPERTIES OF OPTION PRICES IN MODELS WITH JUMPS

We study convexity and monotonicity properties of option prices in a model with jumps using the fact that these prices satisfy certain parabolic integro–differential equations. Conditions are provided under which preservation of convexity holds, i.e., under which the value, calculated under a chosen martingale measure, of an option with a convex contract function is convex as a function of the underlying stock price. The preservation of convexity is then used to derive monotonicity properties of the option value with respect to the different parameters of the model, such as the volatility, the jump size, and the jump intensity.     

Interorganizational Trust and Technology Complexity: Evidence for New Technology‐Based Firms

Integrating the transaction cost economics and relational perspectives, this paper puts forward that technology complexity within new technology‐based firms negatively influences the level of interorganizational trust in key partner relationships. Using a data set of 105 key partner relationships of 59 new technology‐based firms, we find that the new technology‐based firm's level of trust in its key partners is lower when the level of technology complexity is high. Findings further show that both relationship and partner characteristics moderate the technology complexity—trust relationship. These results show that technology complexity as an appropriability mechanism becomes endogenous to collaboration, thereby extending the Teece framework.     

BOOK REVIEWS

Purpose: Companies engage in business relationships for a variety of reasons, including specialization, product development, and building competitive networks. Research has demonstrated that mergers and acquisitions (M&As) may challenge ongoing business relationships. The purpose of this article is to investigate whether and how competition authorities consider business relationships when evaluating M&As.

Methodology: The article uses the documentation from 450 M&As reported to the Swedish competition authority to capture the way in which an authority evaluates M&As. The Swedish competition authority evaluation corresponds to other national and international evaluation procedures.

Findings: The findings indicate that the competition authorities neglect an important aspect of business life, namely companies forming business relationships. The competition authorities evaluate M&As on the basis of risk for price increases, and consequently disregard such issues as heterogeneity in demand and offerings, and values built into existing business relationships.

Originality/Value/Contribution: The article contributes to research on business relationships through exploring how a public authority deals with such relationships. It also contributes to research on mergers and acquisitions through examining how these activities are evaluated by competition authorities. Furthermore, the article contributes to competition research by reflecting on competition law concerning M&A regulations in relation to business relationships.     

Exciting on Facebook or competent in the newspaper? Media effects on consumers’ perceptions of brands in the fashion category

Abstract

Media investments are continuously shifting from traditional media like newspapers to digital alternatives like websites and social media. This study investigated if and how media choice between the two rival channels can influence consumers’ perceptions of a novel brand. 504 Swedish retail fashion customers participated in an experiment to evaluate the identical advertisement placed either in a national newspaper or on Facebook. The results revealed that advertising in a newspaper can have a positive effect on brand equity facets and purchase intention through brand personality perceptions of being competent, while advertising on Facebook have similar effects but through perceptions of being exciting. Besides some evidence that choice between traditional and new media affects brand personality this study is one of the first attempts to incorporate media channel choice into the broader customer-based brand equity framework. The results from this particular study suggest that media channel choice should be considered from a brand equity building perspective at least in the fashion category. This study shows that different media channels could complement each other strategically, as traditional media channels still can have valuable and unique contributions to brand building through brand personality perceptions, especially for brands striving to be perceived as competent.     

Wine choice and drivers of consumption explored in relation to generational cohorts and methodology

The objectives of the present study were to: (1) assess the relative importance of driver and choice factors in wine consumption behaviour, (2) assess the impact of generational cohorts upon drivers of wine consumption and wine choice factors, and (3) compare the present study's survey results relating to wine choice to those obtained by means of Discrete Choice Analysis (DCA). A geographically balanced sample of 1,229 Australian wine consumers was obtained via means of telephone survey. The results of the present study indicate that taste is the primary choice and driver factor. The present findings failed to support the empirical literature's predications relating to generational cohorts and wine consumption behaviour. Further research is required in order to assess the suitability of making and marketing wine based on generational cohort characteristics. Finally, the findings of the present study suggest that, when it comes to wine choice, a simple, cost and time effective questionnaire that utilises indirect questioning may be equally as effective as DCA. If further research continues to show congruence between results collected using both methodologies, the research community may be behoved to continue the use of traditional survey methodology.     

Linking HRM and Small Business Performance: An Examination of the Impact of HRM Intensity on the Productivity and Financial Performance of Small Businesses

Attempts to explore empirically the link between HRM and firm performance are numerous. Yet, research on this link remains restricted to large companies. Little is known about the extent to which the existing results extend to small businesses. The purpose of the present study is to develop and test a conceptual framework linking HRM to financial performance that fits small businesses. The central question is whether the development of an intensive HRM is profitable for smaller organizations. For the development and optimization of the conceptual framework, we rely on human capital theory and bankruptcy prediction models. Using structural equation modeling, we study the mediating effect of voluntary turnover and productivity on the relationship between HRM intensity and one year lagged financial performance. The results show both productivity and profitability enhancing effects as well as a cost increasing impact of HRM intensity.     

Business Dilemmas and Religious Belief: An Explorative Study among Dutch Executives

This paper explores the relationship between religious belief and the dilemmas Dutch executives confront in daily business practice. We find that the frequency with which dilemmas arise is directly related to various aspects of religious belief, such as the belief in a transcendental being and the intensity of religious practice. Despite this relationship, only 17% of the dilemmas examined involve a religious standard. Most dilemmas originate from a conflict between moral and practical standards. We also find that 79% of the identified dilemmas stem from a conflict between two or more internalized standards of the executive.Johan Graafland is a Professor of Economics, Business and Ethics at Tilburg University and Director of the Centre for Corporate Social Responsibility at the Department of Philosophy of Tilburg University. He has published articles in The Journal of Business Ethics, Business Ethics: A European Review, Philosophia Reformatica, Journal of Corporate Citizenship, Applied Economics, Economics Letters, Oxford Bulletin of Economics and Statistics, Empirical Economics, Journal of Policy Modelling, Public Finances/Finances Publique, Economic Modeling, Journal of Public Economics and others. His current research interests are corporate social responsibility and philosophy of economics.Muel Kaptein is a Professor of Business Ethics and Integrity Management at the RSM Erasmus University, where he chairs the Department of Business-Society Management. Muel is also a Director at KPMG Integrity and Investigation Services. He has published articles in a number of journals, including The Journal of Business Ethics, Business & Society Review, Organization Studies, Academy of Management Review and European Management Journal. His most recent books are The Six Principles of Managing with Integrity (Spiro Press) and The Balanced Company (Oxford University Press). His research interests include the management of ethics, the measurement of ethics and the ethics of management. Muel is a Section Editor of the Journal of Business Ethics.Corrie Mazereeuw-van der Duijn Schouten is a senior researcher at the Centre for Corporate Social Responsibility at Tilburg University, the Netherlands. She has several years of experience as business consultant in the field of organizational change and group processes within organizations. Her research interests include leadership, religion and corporate social responsibility. She is currently working on a PhD thesis on religion and leadership.     

Games in Dynamic‐Epistemic Logic

The author discusses games of both perfect and imperfect information at two levels of structural detail: players' local actions, and their global powers for determining outcomes of the game. Matching logical languages are proposed for both. In particular, at the 'action level', imperfect information games naturally model a combined 'dynamic‐epistemic language'– and correspondences are found between special axioms in this language and particular modes of playing games with their information dynamics. At the 'outcome level', the paper presents suitable notions of game equivalence, and some simple representation results.     

A quantitative determination of the food security status of rural farming households in the Northern Province of South Africa

The majority of South Africans living in rural areas are food insecure despite high levels of national food self-sufficiency. The household food security position of two groups of rural farming households in the Venda region was evaluated quantitatively: one group produces vegetables that are sold or consumed locally, the other group produces cash crops – mangoes and other subtropical fruits. Using the collected data, food availability and energy, protein and fat requirements were calculated and balances derived. It was found that more than 80 per cent of the households had a negative balance of energy, protein and fat intake. The average energy, protein and fat coverage consumption was the same for both groups of farmers. A number of agricultural determinants were tested, but only non-agricultural determinants were found to be significant. These include household size, household (food) expenditure and proportion of the budget spent on food.