How much is the gap?—Efficient jump risk-adjusted valuation of leveraged certificates

This paper develops a novel and highly efficient numerical algorithm for the gap risk-adjusted valuation of leveraged certificates. The existing literature relies on Monte Carlo simulations, which are not fast enough to be used in a market-making environment. This is because issuers need to compute thousands of price updates per second. By valuing leveraged certificates as multi-window barrier options, we explicitly model random jumps that occur at known times, such as between the exchange closing and re-opening. Our algorithm combines the one-day transition probability with Simpson’s numerical integration rule. This yields a backward induction scheme which requires a significantly coarser spatial and time grid than finite-difference methods. We confirm its robustness and accuracy through Monte Carlo simulations.     

Enhancing customers’ brand loyalty via branded hotel apps

Many hotels have launched their own branded mobile applications to develop relationships with customers. Yet, research examining the benefits of branded hotel apps on brand loyalty is scant. The current research investigates the role of branded hotel apps on brand loyalty through customer engagement and brand trust in the hotel industry, based on uses and gratifications theory. Results identified cognitive and social benefits of the branded hotel apps positively influenced customer engagement and brand trust. Hedonic benefits positively influenced customer engagement and they indirectly influenced brand trust through customer engagement. Both customer engagement and brand trust positively influenced brand loyalty. Moreover, mediation effects of customer engagement and brand trust were identified. Results highlight how branded hotel apps serve as a facilitator of brand loyalty, providing theoretical and managerial implications.     

Co-location as a catalyst for service innovation: a study of Scottish health and social care

Academic literature and policy on co-location of local public services focus on the cost benefits. Other benefits and outcomes of co-location, including service innovations benefiting users, are under-conceptualized. This paper suggests a framework for evaluating co-location as a learning environment for innovation, drawing on new case studies of five Community Health Partnerships in Scotland charged with more closely coordinating health and social care. We conclude that partnerships using co-location are benefiting from additional service innovations.     

Changing management roles in the Scottish NHS: implications for management learning and development

The UK government's austerity means that public service providers, such as the National Health Service (NHS), are looking for efficiencies from service integration and collaborative working. This paper highlights how NHS (Scotland) management is coping with these changes and how the role of the manager and the nature of management development is being transformed. New forms and processes of management learning and development are needed for collaborative partnership working in multi-agency public service environments.     

Rainwater harvesting in the UK: Socio-technical theory and practice

There is currently a window of opportunity in the UK, with respect to promoting sustainable water management (SWM). Periods of alternating drought and flooding have brought water management issues to the fore of UK media coverage and policy development. Unchallenged reliance on the historic legacy of piped infrastructure is declining, as its resilience and adaptability in the face of climate change become increasingly questioned. Despite its prevalence in other countries and a recent surge in sales, rainwater harvesting (RWH) has yet to transition from niche to mainstream in the UK. This paper provides an overview of the development of a strategic framework for enabling RWH to transition from novel to mainstream, informed by a number of evidence bases and devised using insight gained through the application of a number of theories. Identified strategic areas for action include (i) Technical Relevance (product development); (ii) Social Receptivity (capacity building) and (ii) Institutional Commitment (support services).     

The contested environmental governance of Maori-owned native forests in South Island,Aotearoa/New Zealand

In this study we set out to critically examine the environmental governance of native forests owned and managed by the Maori in New Zealand, with a specific focus on ‘SILNA’ lands given to the South island Maori as compensation lands for lost ancestral tribal lands. We will interrogate reasons for different forestry pathways in terms of how the process of European colonisation unfolded politically and spatially, the response of the Maori SILNA forest owners to pressures linked to land allocation and land rights issues over time, and the repercussions of these responses for biodiversity preservation in indigenous forest management systems. In order to unravel the complex environmental governance processes at play in the New Zealand context, we will pay particular attention to ‘exogenous’ (i.e. propelling forces outside Maori communities) and ‘endogenous’ regulation mechanisms (i.e. regulation of native forest management within SILNA forest blocks). New Zealand is a particularly appropriate setting as Maori governance, forest management and land rights issues have come to the fore over the past decades. Our findings suggest that Maori SILNA forest owners have used the full spectrum of forest management pathways, ranging from outright clearfelling and associated biodiversity depletion to forest preservation. The study highlights the complex interplay between endogenous environmental governance processes (actor embeddedness with their land and the role played by trusts and committees in particular) and exogenous drivers, in particular through the influence of international logging companies, and the policy environment which has sent mixed, and at times confusing, messages to Maori SILNA native forest owners.     

Play at work,learning and innovation

ABSTRACT

Suggesting a virtuous triangle constituting public service innovation of new governances, innovation and learning, the paper examines how and why a particular mode of learning occurs: that of play. Having identified an absence of research literature on play as a catalyst for new ideas in public services, the paper argues that the diversified nature of public services and disciplinary intermixing offers fertile ground for playing with new service ideas. Our conception of play avoids functional interpretations, such as Amabile or individualizing the results of play and instead draws upon Vygotsky’s social learning theory to conceptualize play as a group activity from which new ideas emerge and suggest a new framework for understanding purposive play at work and the contribution it can make to public service innovation.     

The relationship between Internet addiction and negative eWOM

Customers prevalently use social media (SM) to post their experiences and to review others’ experiences. This study investigated how Internet addiction (IA) influenced customers’ word-of-mouth behaviors on SM after a service failure, focusing on both young and older customers. Two experiments were conducted. The first study was conducted with young customers and second experiment with older customers. Results suggest that the group of young customers had significantly higher levels of IA, compared to older customers. The analysis identified that IA and functional/technical service failure partially influenced four negative types of electronic word-of-mouth (eWOM) (i.e. Badmouthing, Tattling, Spite, and Feeding the Vultures). Both young and older customers tended to show more negative eWOM types for technical service failures. For the functional service failures, IA was the main predictor of negative eWOM for both young and older customers.