Entry deterrence and innovation in durable-goods monopoly

This paper investigates the efficiency of innovation investments in a durable-goods monopoly when a potential entrant threatens to innovate as well. We show that the durability of the good endows the monopolist with the power to discourage rival innovation since current sales alter the demand for a new generation of the good. The equilibrium is therefore determined not only by the incentive for intertemporal price discrimination in durable-goods monopoly, but also by the incumbent's concern for maintaining the technological leadership. We demonstrate that entry deterrence followed by no innovation always implies underinvestment in innovation.     

Analysing the performance of managed funds using the wavelet multiscaling method

We propose a new approach for investigating the performance of managed funds using wavelet analysis and apply it to an Australian dataset. This method, applied to a multihorizon Sharpe ratio, shows that the wavelet variance at the short scale is higher than that of the longer scale, implying that an investor with a short investment horizon has to respond to every fluctuation in the realized returns, while for an investor with a much longer horizon, the long-run risk associated with unknown expected returns is not as important as the short-run risk. Using multihorizon Sharpe ratios of six groups of managed funds, we find that none of the fund groups are dominant over all time scales.

The role of stochastic volatility and return jumps: reproducing volatility and higher moments in the KOSPI 200 returns dynamics

This paper investigates the role of stochastic volatility and return jumps in reproducing the volatility dynamics and the shape characteristics of the Korean Composite Stock Price Index (KOSPI) 200 returns distribution. Using efficient method of moments and reprojection analysis, we find that stochastic volatility models, both with and without return jumps, capture return dynamics surprisingly well. The stochastic volatility model without return jumps, however, cannot fully reproduce the conditional kurtosis implied by the data. Return jumps successfully complement this gap. We also find that return jumps are essential in capturing the volatility smirk effects observed in short-term options.

Entrepreneurial cognition and internationalization speed: towards a potential moderating effect of experiential and rational information processing

This study explores the influence that entrepreneurial cognition, in terms of the dichotomy in human information processing, has on the earliness of internationalization and post-entry speed. Entrepreneurial cognition is investigated through the lens of the dual-process theory, which posits that human information processing is formed of two systems, the experiential cognitive system (System 1) and the rational and analytical cognitive system (System 2). The speed of the entire internationalization process is analyzed in terms of earliness (how soon after inception a company enters its first international market) and post-entry speed (how fast it enters new markets after the first internationalization). Drawing on ten cases, we find that companies that internationalized earlier and faster were managed by entrepreneurs with higher levels of the experiential cognitive system. In contrast, companies that internationalized later and more gradually were managed by entrepreneurs with higher levels of the rational cognitive system. Thus, our study reveals that the speed of the entire process of internationalization is governed, at least partially, by the entrepreneur’s cognition. On the basis of our findings, we introduce three propositions on the moderation that the entrepreneur’s cognition exerts on the well-established relations between environmental signals and both earliness of internationalization and post-internationalization speed.

     

Language ability and entrepreneurship education: Necessary skills for Europe’s start-ups?

Language ability and entrepreneurial education are seen as essential resources for start-ups operating in intensified landscapes of internationalisation and globalisation. Deemed as the necessary skills for corporate effectiveness vis-à-vis rivals, this paper responds to calls for increased understandings of cultural components as vital to entrepreneurship and the product of institutional forces. Thus, it explores (a) the impact language ability has on start-up expansion; (b) the perceptions of international relations as based on language ability as a tool for cross-cultural communication; and (c) the role of educational context from the entrepreneurs’ perspective. Based on interviews from European online start-ups across three discrete contexts—Finland, Portugal and Sweden—it concludes that contextual trends regarding language and education are founded upon the cultural-cognitive and normative pillars of institutionalisation. Further, by combining actor-context perspectives, it poses that language ability and education are resources borne from the domestic environment which positively moderate the start-up’s international success. Nevertheless, the notion of learnt entrepreneurship remains contested. Taken together, this study contributes by offering deeper insight into the role of context on entrepreneurial tendencies by combining resource and institutional perspectives.     

Secrets to design an effective message on Facebook: an application to a touristic destination based on big data analysis

The objective of this research is to identify which are the key variables for designing a message in a social network that can be used by an advertiser to generate Positive/Negative Engagement. The message’s design variables have been classified into four main groups: (i) Message Tools (presence of text, images, video, labels, applications, interactive games and events calendar or others), (ii) Appropriate Message Structure (length and intelligibility), (iii) Informative Cues (links to the brand, orientation towards the product or the brand, topics relevant to the audience, and a remuneration’s promise) and (iv) Persuasive and Emotional Cues (emotional signals, valence, endorsement and influencer mentions). The focus has been a tourist destination: Brand Spain that is advertised through Facebook. A content analysis was carried out and regression analysis with optimal scaling was used on 180 Spain brand’s publications; 57,626 audience reactions to such publications; and 1361 audience comments on the Brand Spain Official Fan Page. According to our results, from the four blocks of predictive variables, only two of them are useful to predict Positive/Negative Engagement: (i) the use of Message Tools (videos), and (ii) the use of informative cues (relevant topics, links on posts, and post’s orientation towards product).     

Human Capital Factors Affecting Human Resource (HR) Managers' Commitment to HR and the Mediating Role of Perceived Organizational Value on HR

Human resource (HR) managers’ commitment to their occupation (HR) leads to the proper delivery and implementation of HR practices and, therefore, is deemed as a critical factor for the success of HR practices. Based on sociocognitive, human capital, and signaling theories, this study examines: (a) HR managers’ own and their chief HR officer's (CHRO) HR‐specific human capital as antecedents of their commitment to HR, and (b) the mediating mechanism through which the CHRO’s HR‐specific human capital positively influences HR managers’ commitment to HR. Based on 146 HR managers from 146 organizations in South Korea, the findings of the current study suggest that HR managers with higher levels of HR‐specific human capital and those working with CHROs with higher levels of HR‐specific human capital tend to have higher levels of commitment to HR. In addition, CHROs with higher levels of HR‐specific human capital positively influence HR managers’ commitment to HR by signaling to them that HR and its function are valued and cared about by their organizations. Theoretical and practical implications of this study are discussed along with study limitations and further research directions. © 2015 Wiley Periodicals, Inc.     

Where to vacation? An agent-based approach to modelling tourist decision-making process

Agent-based models (ABMs) are becoming more relevant in social simulation due to the potential to model complex phenomena that emerge from individual interactions. In tourism research, complexity is a subject of growing interest and researchers start to analyse the tourism system as a complex phenomenon. However, there is little application of ABMs as a tool to explore and predict tourism patterns. The purpose of the paper is to develop an ABM that increases knowledge in tourism research by (i) considering the complexity of tourism phenomenon, (ii) providing tools to explore the complex relations between system components and (iii) giving insights on the functioning of the system and the tourist decision-making process. A theoretical ABM is developed to improve knowledge on tourist decision-making in the selection of a destination to vacation. Tourists’ behaviour, such as individual motivation, and social network influence in the vacation decision-making process are hereby discussed.