A buyer's perspective on collaborative versus transactional relationships

This research examines collaborative and transactional relationships in buying firms to determine whether collaborative relationships offer greater benefits than transactional relationships, and to ascertain which relational factors drive satisfaction and performance for both collaborative and transactional relationship types. Factor analysis, t-tests and step-wise regression were used to analyze data from a survey of buying firms. Results show that collaborative relationships offer higher levels of satisfaction and performance than transactional relationships. Satisfaction factored into two separate constructs: satisfaction with the relationship and satisfaction with the results. Of the relational factors examined, trust is the most important predictor of performance and satisfaction with the relationship regardless of the type of relationship examined.     

The climate and culture of environmental compliance within SMEs

This paper reports some of the findings of an ESRC Global Environmental Change Programme project which considered the attitudes of individuals (management and non‐management) in small and medium‐sized enterprises (SMEs) to the environment and environmental compliance. The focus on individuals and an understanding of the relationship between attitudes and behaviour within businesses is essential to implementation of effective sustainable development and self‐regulation policies. The research revealed that the environment is important to individuals and that environmental compliance is regarded as ‘the right thing to do’. However, the influence of the regulatory domain on businesses is revealed as considerably more complex than suggested by some other surveys. In particular the positive culture amongst individuals in businesses to the importance of compliance appears to differ from the operational climate of many SMEs; i.e. their capacity and feasibility to act. The research suggests that SMEs in general are ‘vulnerably compliant’ due to a mismatch between climate and culture. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?

Why are some places more entrepreneurial than others? We use Census Bureau data to study local determinants of manufacturing startups across cities and industries. Demographics have limited explanatory power. Overall levels of local customers and suppliers are only modestly important, but new entrants seem particularly drawn to areas with many smaller suppliers, as suggested by Chinitz (1961) . Abundant workers in relevant occupations also strongly predict entry. These forces plus city and industry fixed effects explain between 60% and 80% of manufacturing entry. We use spatial distributions of natural cost advantages to address partially endogeneity concerns.     

Why (not) cooperate? A cognitive model of farmers’ intention to join producer groups in Romania

After the breakdown of the communist regime in Romania, collective farms were replaced by a large number of small-scale private farms. Although cooperation seems to be a favourable choice for these smallholders, it did not develop as perhaps expected. This article explores the factors that determine the formation of the intention of Romanian vegetable farmers to join marketing cooperatives in the form of so called producer groups. Our theoretical framework refers to Ajzen’s Theory of Planned Behaviour, which we model with a structural equation model. We identified as main intention drivers the expectation for better prices and easier access to capital. Perceived family support is another significant factor. The level of distrust is high. Although our trust variable is not significant as a predictor of the intention to cooperate in the model, we find qualitative indications that trust plays a role when the intention is translated into actual behaviour.     

On the Incentive Effects of Sample Size in Monitoring Agents – A Theoretical and Experimental Analysis

When agents compete for a bonus and their productivity in each of several possible occasions depends stochastically on (constant) effort, the number of times this is checked to assign the bonus affects the level of uncertainty in the selection process. Uncertainty, in turn, is expected to increase the effort made by competing agents (Cowen and Glazer, 1996; Dubey and Haimanko, 2003; Dubey and Wu, 2001). Theoretical predictions are derived and experimental evidence is collected for two competing agents, with the bonus awarded to that agent who outperforms the other. Sampling occasions (1 or 3), cost of production (high or low), cost symmetry (asymmetric or symmetric), and piece‐rate reward are manipulated factorially to test the robustness of the effects of uncertainty. For control, a single‐agent case is included. Results indicate that, for tournaments, greater uncertainty does indeed lead to greater than expected effort and lower average variable costs.     

Verteilungswirkungen des EEG

The Renewal Energies Act has so far been one of the cornerstones of the energy revolution. As a result of the Act the production of electricity from renewable sources has been considerably increased. As the most expensive forms of renewable energies have grown fastest, average costs have not shrunk but have risen significantly. The ongoing growth led to increasing subsidies for renewable energies and growing costs for electricity consumers in business and private households. It would be insufficient to look at absolute cost developments only, as distribution effects may be critical. As electricity consumption only slightly depends on household income, higher income leads to lower significance of electricity costs. Therefore, low income households bear a relatively higher burden of costs for renewable energies. Furthermore, wealthy households could benefit from the subsidies as they can invest in renewable energy systems.     

The Environmental and Economic Impact of the Carbon Tax in Australia

To fulfil its emission reduction target pledged in the Copenhagen accord, the Australian Government has determined to introduce a carbon tax from July 1st 2012. This paper simulates the effects on the environment and on the economy of a carbon tax of A$23 per tonne of carbon dioxide proposed by the government with, and without, a compensation policy. We employ a computable general equilibrium model with an environmentally extended Social accounting matrix. According to the simulation results, the carbon tax can cut emissions effectively, but will cause a mild economic contraction. Because the price signal is intact, the proposed compensation plan has little impact on emission cuts while significantly mitigating the negative effect of a carbon tax on the economy.     

The regulation of water services in the EU

The European Commission’s proposal for a Directive on the award of concession contracts has sparked vigorous public debate and intense opposition. This Directive is controversial because of the nature of the policy it proposes and because the sectors involved are highly sensitive. This Forum examines the weaknesses of the Commission’s proposal and presents an overview of the current issues in water regulation and the provision of water services. The authors analyse the regulation of natural monopolies, water efficiency and upstream competition in the water industry.     

Is tourism employment a sufficient mechanism for poverty reduction? A case study from Nkhata Bay,Malawi

Extensive attention has been paid to the magnitude and distribution of economic benefits derived from tourism employment by impoverished populations. However, less is known about how economic benefits, such as increased income, relate to poverty conditions at the intra-household level, particularly within the unique contexts of least developed countries. In this paper, we examine the relationship of tourism employment to poverty conditions in a lakeshore community in Malawi. First, we quantitatively compare employment and poverty conditions among the households of tourism employees with those of employees of non-tourism sectors. Secondly, we undertake a qualitative investigation into lodge employment, and its remuneration and fringe benefits from the perspectives of lodge owners and employees. Our findings of the former analysis reveal that while employees of the tourism sector experienced better working and monetary conditions, this group did not exhibit an improved status in other poverty conditions. The latter qualitative analysis shows that most tourism lodge owners adhered to labour standards of minimum wage, and voluntarily offered fringe benefits such as paying medical, funeral, and education expenses of lodge employees. However, despite this adherence to labour standards, there is little evidence that lodge employees and their households experience an improvement in poverty conditions.