Long- versus short-term orientation: new perspectives

Long- versus short-term orientation, a national value dimension originally found by Bond among students in 23 countries, became Hofstede's (1991 Hofstede, G. 1991. Cultures and organizations: software of the mind, London: McGraw-Hill.  [Google Scholar]) fifth dimension of national cultures. Recent analyses by Minkov (2007 Minkov, M. 2007. What makes us different and similar: a new interpretation of the World Values Survey and other cross-cultural data, Sofia: Klasika i Stil.  [Google Scholar]) of World Values Survey data, collected from representative samples of national populations, allow the calculation of a new version of this dimension, this time across 93 countries. National scores on the dimension correlate with certain family values, with school results, with business values, with environmental values and, under favorable historical conditions, with economic growth. In 1988 the dimension scores led to a prediction of China's economic success. The new scores allow new predictions for economic developments in different parts of the world.     

International Production Sharing Opportunities in Mexico and the Caribbean

Abstract

In an effort to take advantage of access to valuable resources and increased market presence, many U.S. manufacturers have pursued production sharing relationships in a variety of overseas locations. These efforts are seen as methods of combating several threats to firm performance: increased domestic production costs, escalating international manufacturing competition, and ever changing barriers to entry regulations. From the perspective of an integrated North American competitive strategy, two geographic areas-Mexico and the Caribbean Basin-have received much attention as potential operating locations. Using a survey of corporate managers responsible for strategic business unit operations, this study investigates and compares the manufacturing and logistics performance of U.S. manufacturers operating in Mexico and the Caribbean. Relationships between logistics performance, manufacturing performance, and firm performance are examined and managerial implications are discussed.     

Does Capital Structure Matter? Revisiting Modigliani and Miller's Empirical Work Using Latin American and North American Data

ABSTRACT

Modigliani and Miller (M-M) performed the first empirical test of their capital structure irrelevance propositions in 1958. Their results confirmed the irrelevance hypothesis. In this paper, the M-M tests are replicated with contemporary data from Latin American and North American firms, but with two fundamental differences from M-M's original work: (a) the CAPM is used for estimating the cost of a firm's equity and (b) fuller specifications for the empirical models are adopted in order to improve their statistical quality. The results do not lend support to M-M's 1958 model, but are in line with their corrected 1963 propositions.

RESUMEN.En 1958, Modigliani y Miller (M-M) realizaron el primer ensayo empírico sobre la irrelevancia de las propuestas sobre la estructura de capital. Sus resultados confirman la hipótesis de su poca importancia. En este estudio, los ensayos M-M se reprodujeron utilizando los datos contemporáneos obtenidos de empresas latinoamericanas y norteamericanas usando, sin embargo, dos diferencias esenciales del trabajo original realizado por M-M: (a) el CAPM se utiliza para estimar el costo del capital social de una empresa y (b) para mejorar la calidad estadística se han adoptado especificaciones más amplias para los modelos empíricos. Los resultados no respaldan el modelo M-M de 1958, pero se encuentran alineados con las propuestas corregidas en 1963.

RESUMO:Modigliani e Miller (M-M) apresentaram o primeiro ensaio empírico de suas proposições sobre a irrelevância da estrutura do capital em 1958. Os resultados confirmaram a irrelevância da hipótese. Neste estudo, os ensaios de M-M são reproduzidos com dados contemporâneos das empresas da América Latina e da América do Norte, mas com duas diferenças fundamentais do seu trabalho original: (a) o CAPM é utilizado para estimar o custo do capital social de uma empresa e (b) especificações mais completas dos modelos empíricos são adotadas para melhorar a sua qualidade estatística. Os resultados não sustentam o modelo de M-M de 1958, mas estão de acordo com as suas proposições revistas de 1963.     

Measuring Executive Education Service Quality: A Construct Validity Study in Latin America

ABSTRACT

This article reports on the development of a measurement tool to assess service quality in an executive education setting. For this purpose, two studies were performed at a Peruvian business school. In the first study, data were collected from 205 executive students to establish the dimensionality of the measurement instrument. The follow-up study, performed a year later with data gathered from 354 executive students, was devoted to examining the stability of the factor structure in addition to the reliability and construct validity of the scale's scores. Results provide strong support for the validity and reliability of the scores on the five EXEQ subscales. The findings also showed that students not only evaluate executive education service quality through five factors but that they also view overall executive education service quality as a higher-order construct that captures elements of all its constitutive dimensions.

RESUMEN. El propósito de este estudio es informar sobre el desarrollo de una herramienta de medición para evaluar la calidad del servicio, en un entorno educacional para ejecutivos. Para lograrlo, se realizaron dos estudios en una escuela de negocios (business schools) de Perú. En el primer estudio, se recopilaron datos provenientes de 205 estudiantes ejecutivos para establecer la dimensión del instrumento de medición. El estudio de seguimiento, a su vez, se realizó un año más tarde con los datos obtenidos de 354 estudiantes ejecutivos, que se utilizaron para examinar la estabilidad del factor estructura, y la confiabilidad y validación constructiva de la clasificación de escala. Los resultados obtenidos respaldaron fuertemente la validación y confiabilidad de la clasificación en cinco subescalas EXEQ. Los hallazgos también demostraron que los estudiantes no sólo evalúan la calidad de los servicios educacionales brindados a los ejecutivos con base en cinco factores, sino que ellos también analizan la calidad de este servicio educacional desde una perspectiva mucho más amplia, que captura los elementos que constituyen sus propias dimensiones y alcance.

RESUMO. Este estudo relata o desenvolvimento de uma ferramenta de medição para avaliar a qualidade do serviço num cenário de formação de executivos. Com esse objetivo, dois estudos foram realizados numa escola de negócios (business school) peruana. No primeiro estudo, dados foram coletados de 205 estudantes executivos para verificar a dimensionalidade do instrumento de medição. O estudo de follow-up, realizado um ano depois com dados coletados de 354 estudantes executivos, dedicou-se a examinar a estabilidade da estrutura de fator e a confiabilidade e validade de constructo dos escores da escala. Os resultados dão fortes sinais da validade e confiabilidade dos escores nas cinco subescalas EXEC. Constatou-se também que os estudantes não apenas avaliam a qualidade do serviço de formação de executivos mediante cinco fatores, mas também vêem a qualidade do serviço de formação de executivos como um constructo de ordem superior, que capta elementos de todas as suas dimensões constitutivas.     

Intra-Industry Trade in Latin America and the Caribbean

An increasingly important component of total world trade is intra-industry trade (IIT). The large volume of literature on IIT is reflective of this importance. However, this extensive literature has focused almost completely on explaining the causes of IIT. This focus has left a puzzling gap in the literature. Specifically, it is almost impossible to determine the level of IIT for a particular country or region. Further, there is almost no information on the level of IIT at the industry level either globally or for a region or country. In this article we provide estimates of IIT for the world and for the countries of the Western Hemisphere. Further, we provide estimates of IIT for ten different SITC product categories on the same basis. The findings of the article indicate that in most industries, IIT in Latin America is substantially lower overall than the world average. There are, however, substantial variations observed both by country and by industry. Because the results are the first available for the region as a whole, they should allow researchers to get a better picture of the extent of IIT in Latin America and the Caribbean by country and by industry.     

Teaching Competitive Intelligence Skills to North American and Overseas Audiences: A World of Difference in Pedagogical Effectiveness

This article contrasts teaching methodologies and pedagogical effectiveness in executive development programs delivered in North America and three diverse regions of the world. Based on the authors' collective teaching experience exceeding 40 years encompassing over 24 countries, and augmented by a review of the literature, a theoretical model is posited addressing 10 criteria deemed discerning when executive development programs are delivered in diverse locales around the globe, with the aim of improving the effectiveness of teaching and learning.     

Strategic Implications of Alliances and Other Linkages of Leading Telecom Operators in Brazil: Network and International Perspectives

In response to competitive pressures created by privatization, telecom firms in developing countries are establishing alliances and other types of linkages—mergers and acquisitions—with foreign partners to ensure customer competitive advantages in global markets. However, there have been very few studies on the alliances of telecom operators in Brazil, an increasingly important BRIC. This article presents the results of research that aimed to fill this gap by identifying, from a network/international perspective, the opportunities/threats created by the relevant linkages of leading telecom operators in Brazil. The results suggest that acquisitions—and especially alliance-type linkages with foreign partners—have created opportunities for boosting performance, in keeping with their new strategic profile.     

BOOK REVIEW

Using panel data methods to analyze data from 14 Latin American countries from 1978 to 2003, this paper empirically examines the links between foreign direct investment (FDI), local conditions, and economic growth. The results suggest that FDI plays an important role in contributing to economic growth. However, the effect of FDI on economic growth is dependent on host economy–based conditions. The empirical results from this study show that there is a positive interaction effect of FDI with technology gap and a negative interaction effect of FDI with the level of school attainment on economic growth. Furthermore, the empirical results from the FDI equation suggest that inflation, trade, school attainment, and telephone lines are the most determinant of location decisions for foreign investors. To explore the relationship between FDI and economic growth further, this paper examines Granger-causality between FDI and economic growth. Our empirical evidence shows that the direction of causality is from economic growth to FDI and not the reverse for Asian countries. Therefore, the causal link between FDI and economic growth is unidirectional. We also provide evidence that the link between FDI and economic growth is bidirectional for Latin American countries, which indicates that economic growth initially could attract more FDI, which, in turn, would then result in accelerated economic growth.     

Differentiation strategies in emerging markets: The case of Latin American agribusinesses

This study furthers the research agenda on Porter's generic strategies by exploring their implementation by firms that suffer from under representation in the literature. It focuses on agribusinesses based in emerging markets that specialize in high value added products. Relying on information collected through interviews, and a survey with 66 agribusinesses based in eight countries of Latin America, it examines the factors that distinguish firms implementing a differentiation strategy (DS). The findings provide interesting insights for scholars and practitioners alike, illustrating the strategic initiatives that DS firms use to ensure they command higher than average prices.