Business cycle asymmetry via occasionally binding international borrowing constraints

This paper illustrates how occasionally binding credit constraints can be quantitatively important to delivering business-cycle asymmetries. An empirical exercise suggests that countries display some business-cycles asymmetries, and an open-economy real business-cycle model is assessed where an international borrowing constraint binds occasionally. In the model, downward movements with a slack constraint are sharper and quicker than upward movements with a binding constraint, and this can deliver asymmetry over the business cycle. The model is calibrated to Canadian data and suggests that a necessary ingredient for asymmetry is a high initial level of foreign debt.     

The role of relationship quality in the stratification of vendors as perceived by customers

Companies implement preferred supplier programs to reduce their vendor relationships to a reasonable few. Consequently, vendors who do not effectively manage their customer-based relationships are strong candidates for deletion from a customer’s list of long-term suppliers. The emergence of preferred supplier programs suggests that businesses are beginning to formally recognize and reward differences between their qualified vendors. Vendor stratification is proposed as a framework for understanding the evolution of preferred vendor programs. With the growing interest in relationship marketing, a study was conducted to empirically examine the extent to which businesses use relationship quality perceptions to differentiate their qualified vendors. The findings support the notion that relationship quality is a higher-order construct that can be used as a basis for developing vendor stratification systems. The article concludes with a discussion of the managerial and research implications of the study findings. Michael J. Dorsch (Ph.D., University of Arkansas) is an associate professor of marketing at Clemson University. His research has been published in theJournal of the Academy of Marketing Science, theJournal of Business Research, and theJournal of Personal Selling and Sales Management, among others. His research interests include issues concerning relationship marketing and marketing research methods. Scott R. Swanson (Ph.D., University of Kentucky) is an assistant professor of marketing at East Carolina University. He previously spent 9 years as a purchasing executive and his research interets include issues related to services marketing, atmospherics, and marketing ethics. His research has been published in theJournal of Business to Business Marketing, theInternational Journal of Quality and Reliability Management, AMA Educators’ Proceedings, andRetailing: Theories and Practices for Today and Tomorrow. Scott W. Kelley (D.B.A., University of Kentucky) is an associate professor of marketing. His research has been published in theJournal of the Academy of Marketing Science, theJournal of Retailing, theJournal of Business Research, theJournal of Advertising, and theJournal of Personal Selling and Sales Management, among others. His research interests include issues concerning services marketing and marketing ethics.     

Forecasting interest rates with shifting endpoints

We consider forecasting the term structure of interest rates with the assumption that factors driving the yield curve are stationary around a slowly time‐varying mean or ‘shifting endpoint’. The shifting endpoints are captured using either (i) time series methods (exponential smoothing) or (ii) long‐range survey forecasts of either interest rates or inflation and output growth, or (iii) exponentially smoothed realizations of these macro variables. Allowing for shifting endpoints in yield curve factors provides substantial and significant gains in out‐of‐sample predictive accuracy, relative to stationary and random walk benchmarks. Forecast improvements are largest for long‐maturity interest rates and for long‐horizon forecasts. Copyright © 2013 John Wiley & Sons, Ltd.     

The effects of technological turbulence and breadth on supply chain technology acceptance and adoption

The current empirical study examines the intention to use and subsequent implementation of a supply chain technology. Specifically, the authors extend the technology acceptance model (TAM) to incorporate the state of the technology environment (technological turbulence) and the extent to which other supply chain technologies have already been adopted by the firm (technological breadth). A series of seemingly unrelated regressions (SUR) were used to analyze survey data from 195 respondents. The results show that in technologically turbulent environments, the relationships between the firm's perceived usefulness and ease of use and the firm's intention to use a supply chain technology are stronger. The study also finds that the relationship between the firm's intention to use a supply chain technology and the implementation of the technology is weaker in firms with greater technological breadth.     

Developing holistic leaders: Four domains for leadership development and practice

Leadership development and practice have traditionally been quite narrow, with a decided focus on the analytical realm of leadership. However, the contemporary climate of corporate scandal and resultant loss of societal confidence, coupled with the evolving demands, needs, and expectations of employees, point to the potential need for a more holistic approach to leadership. Thus, this article proposes how management education and leadership development programs can develop holistic leaders that are adept at operating in the analytical, conceptual, emotional, and spiritual domains of leadership practice. An integrated model for holistic leadership development and practice that addresses all four of these domains is proposed, and grounded in both established and emerging leadership development theory. Additionally, a leadership development classification scheme is proposed based on classroom, job, and organizational contexts.     

First mover or higher quality? Optimal product strategy in markets with positive feedbacks

Conventional wisdom holds that in markets with positive feedbacks being first to market can matter more than product quality. In this paper, we test that intuition within a generalized Pólya urn model. We find that if we assume constant feedbacks, in the long run, higher quality products dominate the market regardless of initial market shares, contradicting the common wisdom. However, when we allow for variable feedbacks, initial advantages persist almost indefinitely. Thus, the choice of whether to rush to market or focus on quality depends on market characteristics such as whether the positive feedbacks result from more consistent returns to scale or from more variable social influences.     

Strategic nonlinear pricing

The objective of this paper is to examine the role of nonlinear strategies in a standard oligopoly framework. We demonstrate that nonlinear pricing may indeed emerge as an equilibrium strategy, but only when firms produce differentiated products, when one firm retains market power due to a cost advantage, or as part of an equilibrium in mixed strategies. In addition, we examine the role of nonlinear pricing in a spatial-competition framework. Our main conclusion is that in highly competitive markets, nonlinear pricing strategies are not likely to emerge as an equilibrium.     

Can genetic factors influence the likelihood of engaging in entrepreneurial activity?

This article offers an argument for how genetic factors may influence the tendency of people to engage in entrepreneurial activity, and describes four mechanisms through which genetic factors could operate. It also explores ways that researchers can use quantitative and molecular genetics to examine entrepreneurship, and discusses the potential implications of a genetic perspective for management research on entrepreneurship.