“Organizational Terrorism” and Moral Choices – Exercising Voice When the Leader is the Problem

We introduce the concept of “organizational terrorism” to describe dysfunctional leaders who are abusive and who treat organizational members with contempt and disregard. After identifying the moral duties of leaders in organizations, we explain how organization members respond to their dissatisfaction with organizations through Exit, Voice, Loyalty, or Neglect. We explain why exercising voice is the most effective moral choice in dealing with dysfunctional leaders.     

The use of Fx derivatives and the cost of capital: Evidence of Brazilian companies

Large corporations have been using derivative instruments as a tool to protect their indirect exposure, as FX risks. A sample with 47 non-financial Bovespa Listed Brazilian companies from 2004 and 2010 was used to test the hypothesis that use of derivatives as a risk management policy tool reduces companies' cost of capital. In contrast to other countries, results rejected this hypothesis, showing that in Brazil there is a positive relationship between using these tools and cost of capital. However, a more in-depth analysis based on the TACC model for a Brazilian company, this hypothesis was not rejected after the 2008 crisis.     

The effectiveness of R&D subsidies

In this paper, the effectiveness of R&D subsidies is analyzed in an oligopolistic model that we apply to the cases of international R&D competition and cooperation. We find that the existence of asymmetric information among firms on whether a rival (or partner) is being subsidized or not may play a key role in explaining whether subsidies are effective or not in increasing R&D investments. In particular, it is shown that if the existence of the subsidy is made public (e.g. because strict information release regulation about R&D subsidies is enforced) and depending on the strategic relationship between the firms’ R&D efforts, an R&D subsidy could even hurt the subsidized firm.     

Becoming a preferred customer one step at a time

A preferred customer is a buying organization who receives better treatment than other customers from a supplier, in terms of product quality and availability, support in the sourcing process, delivery or/and prices. The decision to become a preferred customer implies a continuous commitment by the purchaser to a complex, expensive and often uncertain process. It is important to use a strategic approach, as well as appropriate tactics. Based on well-known models on the development of buyer-supplier relationship, on customer portfolio analysis and on the emergent literature in customer attractiveness and preferred customer status, we suggest four steps to become – and remain – a preferred customer: initial attraction, performance, engagement and sustainability. The process takes the perspective of a buyer willing to obtain the preferential status and focuses on the strategies and tactics that could influence the supplier's decision of granting this status. The proposed process considers that the supplier is continuously comparing the value offered by the customer to its expectations, and to the value offered by other customer relationships.     

Organizational buying behaviour for perishable-food packaging in grocery retail

This qualitative study investigates the structure of the buying centre, the buying process, and the factors that influence buying decisions for perishable-products packaging. This empirical investigation is based on the case study of a major Quebec food retailer. We show that the purchase of packaging changes significantly depending on whether the product is considered more or less strategic for the organization, which determines the required level of packaging customization. Buying centre structure becomes more complex as packaging customization increases. Given the multi-functionality and the interdisciplinarity of packaging, we propose a multi-criteria analysis grid to improve buying decision efficiency and to streamline communication between the various levels of the buying centre.     

Destination social capital and innovation in SMEs tourism firms: an empirical analysis in an adverse socio-economic context

Abstract

This study examines the structural relationships between internal and external resources that explain the innovation of small tourism firms in adverse socio-economic contexts. Specifically, it analyzes two internal resources, human and organizational-technological capital, and the valuable intangible resources derived from social interactions between the agents in the destination (other companies, institutions, and community). The research hypotheses are tested by means of structural equation analysis applied to an empirical study of 180 tourism firms located in Isla Margarita (Venezuela). The findings confirm the importance of external resources derived from relationships with destination agents in the innovation behavior of tourism small and medium-sized enterprises (SMEs). While business social capital affects innovative behavior directly, other types of internal intellectual capital mediate the relationship between innovative behavior and institutional and community social capital. It is the first to address the local community’s role in the innovation of tourism SMEs. The importance of integrating firm and destination resources should inform SMEs’ innovation policies in adverse contexts where the scarcity of resources make vulnerable the economic, social and environmental sustainability.