Mobile technology & resident attitude research

This research note highlights the novelty of integrating location-based services (LBS) available on Smart Phones and Tablets into traditional resident attitude survey methodologies such as door-to-door data collection. It specifically reviews how the LBS technology available on mobile devices can be used to systematically capture GPS coordinates of one's residence and integrate this captured spatial information into software such as ArcGIS and SPSS for further analysis. By having GPS coordinates associated with respondents' answers, researchers have an additional layer of information available for conducting a multitude of tests previously not possible with subjective categorical spatial data. Two research applications using the spatial location of residences are provided as examples of how LBS available on mobile devices can be integrated within resident attitude projects. The use of LBS technology can help researchers better understand how the distance residents live from major tourist attractions influences their attitudes towards tourism.     

Data mining framework based on rough set theory to improve location selection decisions: A case study of a restaurant chain

Location selection plays a crucial role in the retail and service industries. A comprehensive location selection model and appropriate analytical technique can improve the quality of location decisions, attracting more customers and substantially impacting market share and profitability. This study developed a data mining framework based on rough set theory (RST) to support location selection decisions. The proposed framework consists of four stages: (1) problem definition and data collection; (2) RST analysis; (3) rule validation; and (4) knowledge extraction and usage. An empirical study focused on a restaurant chain to demonstrate the validity of the proposed approach. Twenty location variables relevant to five location aspects were examined, and the results indicated that latent knowledge can be identified to support location selection decisions.     

The emergence of home-based accommodations in Iran: A study of self-organization

This paper examines the Iranian home-based accommodation sector using the theory of self-organization. With the aim of identifying the sector's organizing principles, interviews were conducted with the accommodation operators, providing 117 statements which were linked based on their key ideas and/or words. Using UCINET6, a network diagram of five organizing principles were identified: collective identity, balanced legitimacy, local embeddedness, mindful market, and networked finance. While the combination of these organizing principles is interpreted within the Iranian context, broad assumptions can be inferred. It is speculated that a collective aiming to organize itself needs to be considerate of its interactions with members of the collective, the authoritative body, the local community, the market, and capital. Additionally, each separate organizing principle might have relevance for small businesses in various industries. The study contributes to the commercial home and home-based accommodation literature while also providing insights into tourism development in Iran. Furthermore, the method used to identify organizing principles is considered novel and can be used with other collectives.     

Ethical leadership and its impact on service innovative behavior: The role of LMX and job autonomy

This study examined the effect of ethical leadership on service innovative behavior of employees at small and medium sized tourist hotels in Uttarakhand, India. It has forwarded an integrated model that highlights the relationship between ethical leadership and employees' service innovative behavior while interacting through leader-member exchange and job autonomy. Using a sample of 468 customer contact employees and their 117 supervisors, hierarchical regression was conducted to establish the relationship. Findings of the study revealed that ethical leadership promoted service innovative behavior of the hotel employees mediated through leader-member exchanges. Further, it was also found that the level of service innovative behavior was commensurate to the perception of employee job autonomy. Based on the study findings, implications for theory and practice are discussed.     

Optimal dynamic reinsurance with dependent risks: variance premium principle

In this paper, we consider the optimal proportional reinsurance strategy in a risk model with two dependent classes of insurance business, where the two claim number processes are correlated through a common shock component. Under the criterion of maximizing the expected exponential utility with the variance premium principle, we adopt a nonstandard approach to examining the existence and uniqueness of the optimal reinsurance strategy. Using the technique of stochastic control theory, closed-form expressions for the optimal strategy and the value function are derived for the compound Poisson risk model as well as for the Brownian motion risk model. From the numerical examples, we see that the optimal results for the compound Poisson risk model are very different from those for the diffusion model. The former depends not only on the safety loading, time, and the interest rate, but also on the claim size distributions and the claim number processes, while the latter depends only on the safety loading, time, and the interest rate.     

Aligning corporate transfer intentions and subsidiary HRM practice implementation in multinational corporations

We study HRM practice implementation in subsidiaries of multinational corporations (MNCs) and diverge from extant research by focusing on alignment, which we conceptualize as the degree to which subsidiary implementation of HRM practices corresponds with the subsidiary-specific transfer intentions of corporate headquarters. In explaining alignment we examine different aspects of the headquarters–subsidiary relationship, namely, the extent of formal control, interpersonal relationships and subsidiary strategic HRM capabilities. Based on a sample of 105 subsidiaries from 12 Nordic MNCs, the results highlight the importance of expatriates, trust and the strategic HRM capabilities of the subsidiary HR function. We conduct post hoc analyses to shed further light on (i) the relationship between our independent variables and the two separate components of alignment – corporate intentions and subsidiary implementation, and (ii) two different types of misalignment – excessive and insufficient.     

Wealth effects and agency costs

We analyze how the agent's initial wealth affects the principal's expected profits in the standard principal–agent model with moral hazard.We show that if the principal prefers a poorer agent for all specifications of action sets, probability distributions, and disutility of effort, then the agent's utility of income must exhibit a coefficient of absolute prudence less than three times the coefficient of absolute risk aversion for all levels of income, thus strengthening the sufficiency result of Thiele and Wambach (1999). Also, we prove that there is no condition on the agent's utility of income alone that will make the principal prefer richer agents. Moreover, we show that, for an interesting class of problems, the principal prefers a relatively poorer agent if agent's wealth is sufficiently large. Finally, we discuss how alternative ways of modeling the agent's outside option affects the principal's preferences for agent's wealth.     

Measuring the economic impacts of major sports events: the case of Formula One Grand Prix (F1)

This study was examined the new money generated from Formula One Grand Prix (F1) and the economic impacts of this new money on the host economy using input–output analysis. We find that the impact of the new money from non-local attendees or international attendees is more pronounced compared to that from local attendees. Also, F1 event appears to influence on sports-related industry as well as other industries such as manufacturing industry. Our findings suggest that the host cities should focus on increasing the non-local and international attendees in order to enhance the economic impacts of a sport event.     

An economic evaluation of market development programmes for US dairy products

‘This study measured the effectiveness of US dairy export promotion programmes on increasing foreign demand and enhancing producers’ revenues. An import demand equation based on panel data was used to test whether export promotion has a positive and significant impact on US dairy exports. The effects of various promotion scenarios on the dairy market were then simulated, and benefit–cost ratios (BCRs) for these programmes were estimated. There were three key findings. First, the combined effort of public and private dairy export promotion expenditures had a positive and statistically significant impact on demand for US dairy products in the world market. The findings indicated that export promotion stimulated total dairy exports by 4.14 billion pounds, on average, per year, which represented 55.8% of total exports. Second, US dairy export promotion has been highly profitable for the nation’s dairy farmers. The calculated BCRs, based on assumed elasticity of supply, ranged from a low of 8.54 for the most elastic assumption to a high of 30.12. Third, from an optimality standpoint, dairy farmers are underinvesting in export promotion. The marginal BCRs ranged from a low of 3.79 to a high of 15.22, which means that, at the margin, increasing export promotion expenditures would be profitable for dairy farmers.     

Effective and equitable supply of gasoline to impacted areas in the aftermath of a natural disaster

The focus of this research is on supplying gasoline after a natural disaster. There are two aspects for this work: determination of which gas stations should be provided with generators (among those that do not have electric power) and determination of a delivery scheme that accounts for increased demand due to lack of public transportation and considerations such as equity. We develop a mixed integer program for this situation. Two case studies based on Hurricane Sandy in New Jersey are developed and solved in CPLEX. As expected, increasing equity increases cost and also tends to place generators to stations with large initial inventories. It is further observed that CPLEX can solve the largest instances of the problem for a 5% tolerance gap, indicating that the model is efficient.