Technological Innovation Drivers in Rural Small Food Industries in Iran

The first step in devising the best incentives to support innovation is to investigate factors that affect the development of innovations. This article contributes to exploring such factors in small food industries in the rural areas of Tehran province, Iran. Using a census sampling method, 111 managers of 60 active firms were interviewed. The results showed that in general the level of technological innovation is low in the studied firms. The managers do not find the technological changes successful in bringing benefit to their firms. Even though correlation analysis indicated a complex association matrix between independent variables, only the firm's capacity of production was associated with technological innovation as a dependent variable. Furthermore, the regression analysis revealed that factors which influence technological innovation are the firm's age, formal research and development, fixed capital, and capacity of production. The results of this study were used to derive practical suggestions for managers and policymakers to increase technological innovation in the studied industry.     

A new look at factors influencing total quality management failure: work process control or workforce control?

By drawing on multi-case data, there is some evidence to suggest that total quality management (TQM) effectiveness can be viewed as a direct function of the controlling mechanisms that senior managers created prior to TQM implementation. More importantly, control tools of TQM were not used by non-managerial employees, with which they could reduce variability or achieve uniformity; rather, they were regarded as a weapon used by their managers against them.     

Shopping online for goods vs. services: where do experiential features help more?

This study investigates how the type of offer sold online (goods vs. services) moderates the relationships between perceived experiential values and customers' attitudes towards the website. A sample of 107 e‐shoppers of services and 110 e‐shoppers of physical goods responded to a survey on their most recent e‐shopping experiences. Results support the majority of hypotheses. It was found that although offering experiential values on the site improves customers' attitudes for both physical goods and services websites, the impact is much stronger in the case of services. Theoretical and managerial contributions are discussed.     

Marketing Innovation in Rural Small Food Industries in Iran

Marketing innovation is essential for small industries to transform products into profit; therefore, understanding its nature and determinants is of utmost importance. This study aimed at understanding marketing innovation and its determinants in the 60 small food industries in the rural areas of Tehran province, Iran. Using a census sampling method, 111 managers of these firms were interviewed. Results showed that the firms’ performance in marketing innovation is generally weak, and a higher level of radical innovation in marketing is perceived compared to the incremental innovation. Also, a cause-and-effect relationship exists between both product and organizational innovations and marketing innovation. Furthermore, while incremental marketing innovation was negatively influenced by formal R&D unit, product diversification, and the manager’s years of experience, radical marketing innovation was affected by the capacity of production, product diversification, and managers’ age and education. The study concluded that in order to boost marketing innovation, innovation should be made also in products and organization. In addition, in order to facilitate the process of marketing innovation, practical and updated training for managers encouraging incremental innovation in marketing, product diversification, and improving R&D activities in the studied firms should be regarded.     

Optimal reserve composition in the presence of sudden stops

We analytically derive optimal central bank portfolios in a minimum variance framework with two assets and transaction demands caused by sudden stops in capital inflows. In this model, transaction demands become less important relative to traditional portfolio objectives as debt to reserve ratios decrease. We empirically estimate optimal dollar and euro shares for 23 emerging market countries and find that optimal reserve portfolios are dominated by anchor currencies and, at current debt-to-reserve ratios, introducing transaction demand has a relatively modest effect for most countries. We find that, in general, the dollar acts as a safe haven currency during sudden stops for country specific and global sudden stops, increasing the optimal share of dollar bonds in central bank portfolios. Correspondingly, our model predicts that dollar shares should decline as debt-to-reserve ratios fall, as observed in recent data. We also find that the denomination of foreign currency debt has little importance for optimal reserve portfolios.     

The dynamics of university-industry-government relationships in Nanoscience: investigating the Triple-Helix differences between Iran and Switzerland

This study aims to find the differences between national and international relationships in Iran and Switzerland’s Nanoscience research between 2008–2015. The results show significant differences some of which are attributed to the general dichotomy of developed-developing countries like stronger University-Industry-Government relations in Switzerland; but others are not, especially those pertaining to bilateral relations. In summary, the Government-Industry relations in Switzerland are generally closer in this field because the emerging characteristics of Nanoscience call for more state intervention, even in the context of developed countries. Greater Government-University relations in Iran can be explained by referring to the structure of national innovation system of this country. However, the no significant differences between University-Industry relations result needs further research so that it may in turn lead to improvements of the triple-helix calculations. Lastly, some theoretical implications and further research directions are suggested at the end.     

Does tick size influence price discovery? Evidence from the Toronto Stock Exchange

We investigate the price discovery role of an exchange‐traded fund and the futures contract for the same market index. We find that the fund predicts the index in the subperiod after but not in the subperiod before a substantial decrease in the minimum tick size. The futures predict the index in both subperiods. The results are consistent with the view that the factors leading to successful price discovery do not depend on zero investment, as in futures markets, but do depend on a small tick size. © 2003 Wiley Periodicals, Inc. Jrl Fut Mark 23:49–66, 2003     

Optimal Entrepreneurial Financial Contracting

This paper studies the optimal financing (capital structure) of entrepreneurial activity in the context of risk-aversion by incorporating the deadweight costs of bankruptcy and taxes. Unlike the extreme debt ratio (corner solution) predicted by scholars using linear models, this paper provides unique interior results for risk-free as well as risky debt, irrespective of corporate taxes. The paper also shows the necessary and sufficient conditions for both forms of debt, and the pareto-optimality of one over the other. The important findings of this paper are: (i) the existence of an equilibrium, where the borrowing interest rate is greater than the lending rate, despite the violation of Fisher separation theorem (1930); (ii) wealth plays a critical role in determining the debt ratio and the equilibrium risk-free rate of interest, complementing the De Meza and Webb (1987 and 1999) studies; (iii) an explanation for the preferred stock and income bond puzzles, extending Fooladi et al. (1991) and McConnell and Schlarbaum (1991).     

Can Loan Valuation Adjustment (LVA) approach immunize collateralized debt from defaults?

This study focuses on structuring tangible asset backed loans to inhibit their endemic option to default. We adapt the pragmatic approach of a margin loan in the configuring of collateralized debt to yield a quasi‐default‐free facility. We link our practical method to the current Basel III (2017) regulatory framework. Our new concept of the Loan Valuation Adjustment (LVA) and novel method to minimize the LVA converts the risky loan into a quasi risk‐free loan and achieves value maximization for the lending financial institution. As a result, entrepreneurial activities are promoted and economic growth invigorated. Information asymmetry, costly bailouts and resulting financial fragility are reduced while depositors are endowed with a safety net equivalent to deposit insurance but without the associated moral hazard between risk‐averse lenders and borrowers.