Albert Hirschman's Exit-voice Framework and its Relevance to Problems of Public Education Performance in Latin America

This paper applies Albert Hirschman's exit-voice framework to the problems of education coverage and quality in Latin America. It argues that the combination of low direct taxation and high levels of private primary enrolment provides exit options for the wealthy and reduces their incentive to exercise their “voice”, or protest mechanisms, in the face of poor education performance. It also argues that fragmented and clientelist political party structures limit the provision and monitoring of public education, and also reduce the political capacity of the poor to exercise their voice regarding public education coverage and quality. The main policy implication of the paper is that good governance in education cannot realistically be addressed without analysing how the structure of power and voice, and of conflicts of interest within civil society, affect the actual political pressures that state institutions face.     

Evidence-based policy in Ethiopia: A diagnosis of failure

The need for sound, progressive policy is important, but the robust evidence upon which to base realistic policy, and the institutional capacity and political appetite to deliver it, are often lacking. This article reviews the link between evidence and policy, and highlights recent methodological advances in value chain analysis which allow researchers to efficiently collect relatively robust policy-relevant evidence in data-poor contexts. The article summarises the evidence generated from a World Bank study of tourism in Ethiopia that questioned important tenets of tourism policy and strategy, to assess the extent to which this evidence has been taken up into policy and to account for the apparent failure of evidence up-take. We conclude that the failure of evidence-based policy may have had as much to do with weaknesses in the research process as with the indigenous policy-making process.     

Business start-up regulations and the complementarity between foreign and domestic investment

This paper shows that the complementarity between foreign direct investment (FDI) and domestic investment significantly depends on regulations required to start a new domestically owned business in host economies. It finds evidence that FDI crowds out domestic investment in countries with entry regulation cost above a certain level, and many of these countries are in the bottom quartile of GDP per capita. Reforms in business start-up regulations can therefore play a critical role in enhancing the complementarity between foreign and domestic investment and thereby increase entrepreneurship and economic growth in low-income countries. The analysis takes into account other significant factors which affect domestic investment such as the cost of capital, government’s economic growth track record, institutional quality, and market size.     

Exploring the benefits of using stock characteristics in optimal portfolio strategies

I examine the benefits of using stock characteristics to model optimal portfolio weights in stock selection strategies using the characteristic portfolio approach of Brandt, Santa-Clara, and Valkanov. [2009. “Parametric Portfolio Policies: Exploiting Characteristics in the Cross-section of Equity Returns.” Review of Financial Studies 22: 3411–3447]. I find that there are significant out-of-sample performance benefits in using characteristics in stock selection strategies even after adjusting for trading costs, when investors can invest in the largest 350 UK stocks. Imposing short selling restrictions on the characteristic portfolio strategy leads to more consistent performance. The performance benefits are concentrated in the earlier part of the sample period and have disappeared in recent years. I find that there no performance benefits in using stock characteristics when using random subsets of the largest 350 stocks.     

Measurement Properties of Constraints to Sport Participation: A Psychometric Examination with Adolescents

Constraint are a major focus of theoretical and empirical study in leisure research. However, analyses of psychometric properties of constraints measures are rare. This study assessed the factor structure and invariance of a leisure constraints measure applied to sport participation among middle school adolescents (ages 11 to 15 years old) using panel data over two time periods nine months apart (N = 2,029). We compared the validity of three baseline models: a theoretical 3-factor model, a 7-factor model, and a second-order factor model. The 7-factor model exhibited a more appropriate measurement model based on fit indices and statistical comparisons. Using the 7-factor model, construct validity and invariance of the model over time (Time 1 and Time 2) was examined by gender, grade level, race/ethnicity, and socioeconomic status. The model was found to be invariant at the factor loading and intercept levels, while there was some evidence of non-invariance at further constrained levels. In general, the 7-factor model appeared to be psychometrically stable and applicable over a range of demographic subgroups, lending evidence to its use as a measure in leisure or sport participation constraint studies that involve socio-demographic comparisons. The findings suggest that while the theoretical structure may be effective in simplifying constraint categories, a more detailed specification using subfactors of the dimensions is better for measurement.     

The Interplay of Customer and Product Innovation Dynamics: An Exploratory Study

The challenges of successfully developing radical or really new products have received considerable attention from a variety of marketing, strategic, and organizational perspectives. Previous research has stressed the importance of a market‐driven customer orientation, the resolution of market and technological uncertainty, and organizational processes such as cross‐functional teams and organizational learning. However, several fundamental issues have not been addressed. From a customer's perspective, a more innovative product tends to have uncertain benefits and requires customers to learn new behaviors. Customer preferences can, therefore, change as product experience and learning increase. From a firm's perspective, it is unclear how to be customer‐oriented under such dynamic preferences, and product strategies using evolving technologies will tend to interact with how customers learn about an innovation. This research focuses on identifying unresolved issues about these customer and product innovation dynamics. A conceptual framework and series of propositions are presented that relate both changing technology and customer learning to a firm's strategic decisions in developing and launching really new products. The framework is based on in‐depth interviews with high‐tech product managers across several sectors, focusing on the business‐to‐business context. The propositions resulting from the framework highlight the need to consider relevant customer dynamics as integral to a firm's product innovation process. Successful innovation strategies and future research challenges are discussed, and applications to better understanding customer needs and theories of disruptive innovation are examined. Several key insights for innovation success hinge on a broad, downstream orientation to customer needs and product innovation dynamics. To be effective innovators, firms must know their customers' customers and competitors as well as or better than their immediate customers do. Market research must extend downstream for a comprehensive understanding of customer needs dynamics. In the context of disruptive innovation, new dimensions of customer needs may become more valuable based on perceived downstream customer trends. Firms may also innovate on secondary needs because mainstream customers do not always give firms the design freedom to radically innovate on primary features. Understanding customer commitments and how they develop under evolving needs can help firms focus resources on innovative efforts more likely to be accepted by customers.     

The Competence Pyramid: A Framework for Identifying and Analyzing Firm and Industry Competence

The core capability and competence perspective is respected by both academics and practitioners. The efficacy of this strategic orientation is dependent on a firm's ability to identify its specific technological competencies and managerial capabilities and match these strengths with the assets necessary to gain competitive advantage in the firm's chosen markets. Here a systematic process for the identification of competencies and capabilities present within a firm and those competencies and capabilities needed for development of competitive advantage in an industry is presented. This system uses a pictorial representation referred to as the competency pyramid. The competency pyramid assists with the implementation of a strategy based on the core competency perspective; by assisting a firm in understanding which competencies they currently posses and which they require for success in the markets they have targeted. The use of the competency pyramid is illustrated using both service and manufacturing examples.