Organization,technology and management innovations through acquisition in China’s pork value chains: The case of the Smithfield acquisition by Shuanghui

This paper reviews the changes in Shuanghui’s operations after the Smithfield acquisition as well as transformations in China’s pork industries. As income grows and diets change, there has been an increasing demand for high-quality pork and more processed pork products. However, China’s swine and pork industries are still at an early stage of development as evidenced by the low market concentration, intensive use of labour, a proliferation of intermediaries, and low levels of technology. Bounded by the established consumer preferences for freshness and the status quo in the midstream and upstream segments, Shuanghui is in a slow process of upgrading its domestic operations with Smithfield’s leading brands, import of chilled and frozen pork, advanced technologies, and the vertically integrated business model after this acquisition. In particular, it remains unclear whether Shuanghui can follow Smithfield’s experience to establish stable and safe hog supplies by multiplying self-owned hog farms, maintain and expand its current contracts with large-scale commercial hog farms, or rely more on global sourcing of pork primarily from the U.S.     

Concentration behavior of the penalized least squares estimator

Consider the standard nonparametric regression model and take as estimator the penalized least squares function. In this article, we study the trade‐off between closeness to the true function and complexity penalization of the estimator, where complexity is described by a seminorm on a class of functions. First, we present an exponential concentration inequality revealing the concentration behavior of the trade‐off of the penalized least squares estimator around a nonrandom quantity, where such quantity depends on the problem under consideration. Then, under some conditions and for the proper choice of the tuning parameter, we obtain bounds for this nonrandom quantity. We illustrate our results with some examples that include the smoothing splines estimator.     

Bouncing Back from Extreme Weather Events: Some Preliminary Findings on Resilience Barriers Facing Small and Medium‐Sized Enterprises

Extreme weather events (EWEs) pose unprecedented threats to modern societies and represent a much‐debated issue strongly interlinked with current development policies. Small and medium‐sized enterprises (SMEs), which constitute a driving force of economic growth, employment and total value added, remain highly vulnerable to and ill prepared for such environmental perturbations. This study investigates barriers to SMEs’ resilience to EWEs in an attempt to shed light on enabling factors that can define effective organizational responses to non‐linear environmental stimuli. Relying on structural equation modeling and data gathered from 109 SMEs that recently experienced EWE impacts, we link the general concept of SMEs’ resilience barriers to EWEs with a series of elements to determine specific internal and external factors that contribute the most to EWE resilience. In particular, external barriers of institutional conditions and mechanisms of support and guidance as well as internal barriers of resources and managerial perceptions are found to be the most critical ones in determining resilience. The assessment offers essential research evidence for practitioners on SME management and sets forth linkages with current mechanisms for policy interventions towards an appropriate resilience agenda for SMEs. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment     

Co-movement in Stock Prices in Emerging Economies: The Case of the Caricom Region

The Grand Anse Declaration of 1989 recognised the need for financial integration within the emerging economies that comprise the CARICOM region, as a way of furthering the wider process of economic integration and, indeed, economic development in that region. Using co-movement as a measure of financial integration, this paper investigates the co-movement in stock prices among the Barbados, the Jamaica and the Trinidad and Tobago Stock Exchanges, the three major exchanges within the CARICOM region. It also examines how integrated these exchanges are with the New York Stock Exchange. The GARCH-Copula methodology and, to a lesser extent, estimated correlation coefficients, are used to attain this objective. There appears to be co-movement in stock prices and returns within the CARICOM stock markets and significant dependence structures between the returns of the three CARICOM stock markets. However, there is considerably less evidence of integration between the CARICOM markets and the New York Stock Exchange.     

Does educational diversity of managers matter for the performance of team‐managed funds?

We study the effect of the educational diversity of managers on the performance of team‐managed mutual funds using a large sample of U.S. equity funds from 1994 to 2013. We consider diversity in terms of both final educational degree and field of educational specialisation. We find that, in general, both types of diversity have a positive impact on fund performance, and our results are robust over a wide range of performance metrics and changes in market conditions.     

Investor behaviour and reaching for yield: Evidence from the sterling corporate bond market

We provide evidence on how corporate bond investors react to a change in yields, and how this behaviour differs in times of market‐wide stress. We also investigate ‘reaching for yield’ across investor types, as well as providing insights into the structure of the corporate bond market. Using proprietary sterling corporate bond transaction data, we show that insurance companies, hedge funds and asset managers are typically net buyers when corporate bond yields rise. Dealer banks clear the market by being net sellers. However, we find evidence for this behaviour reversing in times of stress for some investors. During the 2013 ‘taper tantrum’, asset managers were net sellers of corporate bonds in response to a sharp rise in yields, potentially amplifying price changes. At the same time, dealer banks were net buyers. Finally, we provide evidence that insurers, hedge funds and asset managers tilt their portfolios towards higher risk bonds, consistent with ‘reaching for yield’ behaviour.     

Cooperative conversion and communalization: Closely observed interactions between the material and the mental

Various authors, including Elinor Ostrom, have shown that the legal form of a cooperative has many of the characteristics of a Common. Here we focus on cooperative conversion, through which conventional enterprises become labor‐managed firms (LMFs), viewing it dynamically as a communalization process. These processes are addressed in the light of a field survey carried out in France, looking at six firms involved in cooperative conversion. The changes entailed are two‐dimensional, both material and mental. This is visible, for example, when finding the capital to mount an LMF: members of the workforce must draw on their own funds; they must also believe in the project. Through our empirical observations we highlight the obstacles in the way of forming an LMF. In particular participants must undertake a work of negotiation hinging on stakes marked by the two, largely inseparable dimensions. Ultimately we query the ethic brought into play in the collective action of constituting a Common. Specifically, individuals must contribute to a collective action underpinned by principles of self‐governance, or commoning, the rock on which the Common rests. A key finding of our study is to demonstrate that a Common can only be successfully created if the constituent processes are consistent with the overall goal. In other words the manner in which we travel is inseparable from our final destination; otherwise we shall surely lose our way.     

Alternative balanced scorecards built from paradigm models in strategic HRM and employment/industrial relations and used to measure the state of employment relations and HR system performance across U.S. workplaces

This paper constructs alternative balanced scorecards based on high‐performance work system (HPWS) and employment relations system (ERS) models. The models are depicted and compared in diagrams and used as framework skeletons for building separate HPWS and ERS scorecards, intended to provide a detailed data picture of the operational health and performance of an organization's employment/HR system and its operations, processes, and inputs/outputs. The scorecards are filled in with nationally representative data from 2,000+ U.S. workplaces using more than 50 employment/HR indicators, as reported by separate panels of managers and employees. The indicators for each workplace are aggregated into an overall HR/employment system score, ranked from low‐to‐high, and graphed as frequency distributions. These distributions provide a unique snapshot picture of the mean and dispersion of the state of employment relations and HR system performance for companies across the United State. They also reveal that “models matter” since the HPWS and ERS scorecards provide distinctly different evaluation assessments.