Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country

This study investigates the role of intra-cluster ties, extra-cluster ties, and entrepreneurial orientation in shaping firms’ innovative performance. We conduct our analysis on a primary data set of 120 small and medium enterprises located in the Cibaduyut footwear-manufacturing cluster, Indonesia. We explore the effectiveness of knowledge acquisition through intra-cluster ties and extra-cluster ties on innovative performance. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. Also, a combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance. Surprisingly, we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance. Over-reliance on within-cluster knowledge sharing may result in the diffusion of redundant knowledge rather than making new knowledge available to the firm. Overall, our findings point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance.     

Assessing Brand Origin Recognition Accuracy and its Antecedents in a Developing Country

The aim of the present study was to examine two main questions regarding Indonesian consumers. First, what are the brand origin recognition accuracy (BORA) scores for both foreign brands and local brands among Indonesian consumers? Second, are socio-economic characteristics (education and income/spending), international experience (international travel and foreign language expertise), and demographic factors (age and gender) related to consumers’ brand origin recognition accuracy? The present research follows BORA procedures in the selection of 88 brands (44 foreign and 44 local brands). Questionnaires were distributed both offline and online, with 138 respondents participating offline and 163 people responding online. The BORA scores for both foreign and local brands among Indonesian consumers were relatively low (28.79% and 53.85%, respectively). BORA was also related to socio-economic characteristics, international experience, and age. In addition, men demonstrated higher BORA levels for foreign brands than women did. Most consumers were unable to differentiate brand origins because of the use of foreign languages for the brand names. Therefore, the foreign branding strategy of using languages of other countries (e.g., English, Chinese, Japanese, and so forth) that have positive images for particular product categories could be effectively employed in Indonesia.     

Wettbewerb zwischen wirtschaftspolitischen Modellen in Europa

In 2000 the European Union adopted its motto, of “Unity in diversity”. But in fact, economic policy regimes differ among member states and the people are not willing to leave the current path or to vote for painful political actions. In the midst of the present crisis, Europe is at the crossroads. Should people decide on a new constitution which allows more centralisation of powers, or should the principle of subsidiarity be reinforced? Problems in the eurozone intensified the coordination and monitoring of economic policy of the member states. The preconditions for a competition among different economic policy regimes vanish more and more. Institutional competition is not only price (tax) competition, but also quality (yardstick) competition. This is shown using debt brakes as a role model for other member countries of the European Union. But the debt brakes of the German Länder show that it can be problematic to transfer an institution from one country to another without taking into account its institutional environment.     

Öffentliche Wohnraumförderung — auf dem richtigen Weg?

In Germany, in times of extreme low interest rates there is a boom in housing construction, housing demand and housing prices. In order to relieve the housing market, the Federal Government is planning to expand the funding for social housing considerably. Affordable housing has been decreasing in German metropolitan areas in recent years, the same applies to social housing. Meanwhile, the demand for dwellings in the lower and middle price segment is rising, partly due to an increased migration rate. This is why a strong social housing promotion needs to be combined with an effective direct subsidy, such as a dynamic housing allowance. However, the targeting of social housing is highly inaccurate. Thus, it would be better to strengthen housing allowances and to help lowincome households to purchase homes in order to reduce living costs. Nowadays, property credits stabilize the banking sector. However, just a small increase in interest rates could result in a new financial crash. Ever since their foundation, housing cooperatives have created affordable private dwellings and a safe living place for their members. They are able to produce not only tenants but owners of the dwellings. Thus public assistance schemes and subsidies should not exclude housing cooperatives.     

Consumer guilt and green banking services

Banks offer loans to support many projects; however, some of these projects may not give adequate consideration to the environment. Little is known regarding the extent to which banking customers experience guilt when discovering that their bank supports projects that disregard the environment. An experiment with 313 participants was conducted, and the results showed that customers do experience guilt when discovering that their bank supports projects that do not give adequate consideration to the environment. This study found that guilt drives perceived consumer effectiveness and negative word‐of‐mouth regarding banking projects that neglect environmental considerations but not attitudes towards green banking. Negative word of mouth, but not the attitude towards green banking, mediates the effect of perceived consumer effectiveness on the intention to use green banking services. Negative word‐of‐mouth, rather than attitudes towards green banking and its perceived consumer effectiveness, drives the intention to use green banking services. These findings imply that banks need to encourage their customers to perceive that they are eco‐friendly to avoid a significant loss of customers.     

Development costs and funding of extra care housing

This article reports findings from an indepth evaluation of extra care housing (a form of assisted living positioned between sheltered housing and care homes) for older people in the UK. The information presented is a significant improvement on that previously in the public domain. The authors conclude that a careful reappraisal of cost components and a more integrated approach across housing, health and social care is required, particularly in a climate of public funding cuts.