Returns to Schooling in Spain: How Reliable are Instrumental Variable Estimates?

This paper studies the ordinary least–squares (OLS) and instrumental variable (IV) estimates of the returns to schooling for male workers in Spain. OLS estimates are often biased due to the endogeneity of schooling, measurement errors or omitted variables. Proper IV estimates correct this bias. The reliability of family background, natural experiments (based on changes in the education system and season of birth) and the availability of a college in the province is checked using Spanish data. The results suggest that background and college availability are valid instruments and that the IV estimates of the returns to schooling are higher than OLS estimates. These results are in line with the majority of previous results in the literature.     

How Does Government Size and Structure Respond Empirically to Changes in its Organisational Environment?

Does government size and structure adapt to changes in government’s organisational environment (particularly to uncertainty and complexity) as predicted by organisational theory? We find – using a range of statistical analyses – support for each of the major theories of organisation adaptation (the contingency-based view, resource-based view, and the rational choice view). We find that both government size and structure change – holding other factors constant – for changes in the uncertainty and complexity of governments’ organisational environments. We find seven clusters of governments which adapt their organisational sizes differently in response to changes in the uncertainty and complexity of their organisational environments – and four clusters of governments with differing preferences for the way they adapt governmental structures. We also use the available data to divide governments according to the extent to which they adapt their organisational size and structure reactively (after changes occur in their organisational environment), contemporaneously or strategically (before these changes in their organisational environment occur).     

Returns to Tenure or Seniority?

This study documents two empirical facts using matched employer–employee data for Denmark and Portugal. First, workers who are hired last, are the first to leave the firm. Second, workers' wages rise with seniority, where seniority is defined as a worker's tenure relative to the tenure of his colleagues. Controlling for tenure, the probability of a worker leaving the firm decreases with seniority. The increase in expected seniority with tenure explains a large part of the negative duration dependence of the separation hazard. Conditional on ten years of tenure, the wage differential between the 10th and the 90th percentiles of the seniority distribution is 1.1–1.4 percentage points in Denmark and 2.3–3.4 in Portugal.     

How Is Power Shared in Africa?

Is African politics characterized by concentrated power in the hands of a narrow group (ethnically determined) that then fluctuates from one extreme to another via frequent coups? Employing data on the ethnicity of cabinet ministers since independence, we show that African ruling coalitions are surprisingly large and that political power is allocated proportionally to population shares across ethnic groups. This holds true even restricting the analysis to the subsample of the most powerful ministerial posts. We argue that the likelihood of revolutions from outsiders and coup threats from insiders are major forces explaining allocations within these regimes. Alternative allocation mechanisms are explored. Counterfactual experiments that shed light on the role of Western policies in affecting African national coalitions and leadership group premia are performed.     

Is There Any Hope? How Climate Change News Imagery and Text Influence Audience Emotions and Support for Climate Mitigation Policies

Using a national sample, this study experimentally tests the effects of news visuals and texts that emphasize either the causes and impacts of climate change or actions that can be taken to address climate change. We test the effects of variations in text and imagery on discrete emotions (i.e., hope, fear, and anger) and, indirectly, on support for climate mitigation policies. Political ideology is examined as a moderator. The findings indicate that news images and texts that focus on climate‐oriented actions can increase hope and, in the case of texts, decrease fear and anger, and these effects generally hold across the ideological spectrum. In turn, the influence of emotions on policy support depends on ideology: Hope and fear increase support for climate policies for all ideological groups but particularly conservatives, whereas anger polarizes the opinions of liberals and conservatives. Implications for climate change communication that appeals to emotions are discussed.     

How to motivate yourself and others? Intended and unintended consequences

To achieve goals, individuals and organizations must understand how to effectively motivate themselves and others. We review three broad strategies that people employ to increase motivation: giving feedback, setting goal targets, and applying incentives. Although each of these strategies can effectively motivate action under certain circumstances and among certain people, they can also result in unintended consequences: not helping or even hurting motivation. For example, employers may give positive feedback that leads employees to relax their effort or negative feedback that undermines employees’ commitment, organizations may set goals that are overly ambitious and consequently reduce motivation, and certain incentives might appear attractive before pursuing an action but uncertain incentives better motivate action during goal pursuit. By identifying when and how these common motivational strategies work versus fail, we are able to prescribe a specific set of guidelines that will help people understand how to motivate themselves and others.     

How to reconsider risk management in SMEs? An Advanced,Reasoned and Organised Literature Review

The purpose of this paper is two-fold: to reconsider the fundamental role of risk management (RM) in small and medium enterprises (SMEs) by identifying and critically analysing the most important international works; and to define opportunities for further studies by suggesting a different approach to study the topic. This research is based on a new hybrid method developed by the authors, called Advanced, Reasoned and Organised (ARO) literature review, which improves the quality of literature reviews by integrating the systematic review for quantitative papers, the meta-synthesis for qualitative research and the critical interpretative analysis. Forty-eight articles were included in the literature review. Bibliometric and cluster analyses were carried out. Two hypotheses were applied as filters in the interpretative synthesis of the content and guided the analysis to answer two research questions. The findings underline that RM in SMEs is still a ‘spot’ subject as they put little effort into the risk identification, assessment and monitoring. The lack of procedures and strategies is due to the lack of risk mindfulness and knowledge, and it is related to the managers’ and owners’ risk attitudes. It is fundamental to understand why risk procedures are not implemented and to find a way to raise awareness of the potential benefits of risk and control measures. The topic is current, and the multidisciplinary perspective and mixed-method approach enhance both theoretical and practical contributions for academics and SME owners.     

How to compare performances of firms operating in different sectors?

This paper seeks to address the question ‘How to measure different SMEs’ performances comparatively?’ An initial review reveals that the literature does not provide objective and explicit debate on the subject. Consequently, an approach is developed, informed by the literature, which is used to compare the performances of 37 SMEs. The consistency and reliability of the approach is tested, resulting in a ranking of the 37 firms according to their performances. Using cluster and factor analysis the paper demonstrates that leading indicators are somewhat redundant, and that lagging indicators have greater significance for the purpose of comparative measurement of different SMEs performances. Whilst the approach adopted here withstood internal and external validity tests and can be seen as a robust way of comparing SMEs performances, these results may be limited to this study.     

When to Carry Eccentric Products? Optimal Retail Assortment under Consumer Returns

To understand whether retailers should consider consumer returns when merchandising, we study how the optimal assortment of a retailer is influenced by its return policy. The retailer selects its assortment from an exogenous set of horizontally differentiated products. Consumers make purchase and keep/return decisions in nested multinomial logit fashion. Our main finding is that the optimal assortment has a distinct structure for relatively strict return policies: it is optimal to offer a mix of the most popular and most eccentric products when the refund amount is sufficiently low, which can be viewed as a form of risk sharing between the retailer and consumers. In contrast, if the refund is sufficiently high or when returns are disallowed, the optimal assortment is composed of only the most popular products (a common finding in the literature). We provide preliminary empirical evidence for one of the key drivers of our results: more eccentric products have higher probability of return—conditional on purchase. In light of our analytical findings and managerial insights, we conclude that retailers should take returns into account when merchandising.     

How to Use Technical Terms in Ads? An FCB Grid Perspective

Research on the optimal use of technical terms in advertising can help sponsors effectively communicate complex technical concepts to consumers. This study therefore examined how technical terms, and the extent to which they are explained, influence advertising effectiveness for four product types in the FCB grid. The sample comprised 436 college students. The analytical results of this study indicate that using two technical terms together with detailed explanation of the terms improves consumer attitudes towards the ad and consumer evaluation of the advertised product for thinking (products meeting consumer utilitarian needs) and high involvement products. For thinking and low involvement products, using two technical terms together with detailed/rough explanation improves consumer attitudes towards the ad and consumer evaluation of the advertised product. Moreover, using two unexplained technical terms improves consumer attitudes towards the ad for feeling (those providing consumer gratification, social acceptance and sensory satisfaction) and high involvement products. Using no technical terms improves consumer attitudes towards the ad for feeling and low involvement products. Finally, theoretical and managerial implications and future research directions are discussed.     

Modelling to Learn — A Case Study in International Minerals Investment

This paper presents the system dynamics modelling methodology as a means of capturing the nature of complex systems. A case study is used to expose the fine points of the methodology. The theoretical underpinning for this case study is based on a highly detailed simulation model designed to examine the factors impacting the flow of international minerals investment funds. Emphasis here is on the usefulness of the modelling methodology as an aid to decision-making, the reader is referred elsewhere for a discussion of model development.     

Is there a liability of localness? How emerging market firms respond to regulatory punctuations

In the 1990s, emerging economies all over the world deregulated, privatized and liberalized their domestic markets. These regulatory punctuations caused radical institutional changes for emerging market firms (EMFs). We argue that, for EMFs, regulatory punctuations created a liability of localness, parallel to the liability of foreignness that firms face when they go abroad. Whereas liability of foreignness comes from the differences caused by changing one's geographic place from ‘here’ to ‘there’; liability of localness comes from changing one's point in time from ‘then’ (pre-exogenous regulatory shock) to ‘now’ (post-exogenous regulatory shock). In both cases, firms incur additional costs, and the ones that survive are ones that best develop strategies for coping with “being in a strange land”. We apply our arguments to the Mexican banking industry, which was privatized and liberalized in the 1990s.     

Investment planning in some Swedish companies — Criteria and uses

Institutional barriers as well as cultural differences tend to make the application of the capital theory more difficult in Sweden than in the U.S. In this study the capital investment planning in six Swedish companies with different characteristics is analyzed. We could conclude that the variations in the lines of reasoning, as well as in the use of different criteria, differed considerably from the capital theory. A wide range of heuristics were used which emanated from different lines of thought. A tentative typology of the use of criteria is formulated. We observed and analyzed some dysfunctional effects in the use of certain heuristics reducing the propensity to invest. Furthermore, these heuristics seem to create norms prescribed in handbooks of investments and are used regardless of the economic conditions.     

Nurse safety: How is safety climate related to affect and attitude?

Occupational accidents and injuries continue to be a critical concern for nurses, given the hazardous healthcare environment. This study advances the research on workplace safety by studying the process variables (i.e. job-related negative affect (JRNA) and job satisfaction) in explaining the relationship between safety climate and various safety criteria in nurses. Based on survey data from 326 nurses, our findings suggest that psychological safety climate is negatively related to JRNA, turnover intentions, safety workarounds, and workplace hazards. In addition, structural equation modelling indicated general support for a model in which psychological safety climate influences employee strain through job attitudes, including JRNA and job satisfaction. More specifically, job attitudes were found to mediate the relationship between psychological safety climate and turnover intentions, experience of hazards, and injuries. Safety workarounds did not significantly relate to injuries. The present study contributes to the ongoing improvement of interventions aimed at mitigating nurses’ injuries by integrating job attitudes into the safety climate–safety outcome framework.     

Changes to National Practitioner Data Bank reporting--effective or not?

Unless a physician has been living in another galaxy far, far away with Luke Skywalker, he or she is aware of the National Practitioner Data Bank. On March 31, 1994, the Department of Health and Human Services (HHS) announced that each practitioner can now place in the Data Bank a six-hundred character "rebuttal" of a report, without formally disputing the factual accuracy of the report. Does this change make the Data Bank fair? Not really. It is a step in the right direction, but further reform is needed. "Health Law" is a regular feature of Physician Executive contributed by Epstein Becker & Green. Mark Lutes of the law firm's Washington, D.C., offices serves as editor of the column.     

Do trust and distrust in coopetition matter to performance?

It is widely acknowledged that firms intensely engage in coopetition (i.e., simultaneous cooperation and competition) and obtain unique benefits from such relationships. However, limited knowledge exists about how and when coopetition intensity leads to superior performance. Building on the theoretical work documenting that both trust and distrust are critical for enhancing performance in interfirm relationships, we address the aforementioned gap by looking into the distinct yet beneficial roles of trust and distrust in coopetition. More specifically, we argue that whereas trust likely serves as an intervening mechanism through which coopetition intensity enhances relationship performance, distrust positively influences the association between coopetition intensity and relationship performance. We test our hypotheses on a sample of 225 Swedish firms engaged in coopetition, and provide empirical evidence that trust and distrust play distinct yet important roles in achieving superior performance from coopetition.     

Globalization,greed, and exploitation. How to break the baleful path?

During the last decades, a globalized and free market economy has become the worldwide accepted paradigm for organizing economic affairs. Indeed many positive effects of globalization have materialized and improved the wellbeing of humans, particularly in the poorer parts of the world. However, there is a dark side to globalization—negative external effects, e.g. the exploitation and destruction of natural resources—that is causing growing discontent (e.g. Stiglitz, Globalization and its discontents. Penguin, London, 2002). Different initiatives have been taken in order to deal with the deficits of globalization but have not yet resulted in a resounding success. This paper deals with the downsides of globalization and is not telling a “success story”. For this reason, it is a scholarly article and an essay at the same time, dealing with its subject sometimes from a personal point of view. After presenting some examples for negative side effects of our current economic system, it is argued that capitalism is not only promoting growth through innovation, but that it follows a path of greed and exploitation. Building on path dependence theory, self-reinforcing mechanisms are identified that lead into a lock-in of the current path and make it hard to alter its course. Against this background, three suggestions to tackle the deficits of globalization are presented and critically discussed—the Principles for Responsible Education (PRME), the attempt to restrict globalization (e.g. Steingart), and the implementation of a global governance system (e.g. Homann). Finally, a careful conclusion is drawn: A sequenced approach of education, sanction, and institution building might be the best solution to fasten up the slow moving process of fixing the shortcomings of globalization. It has to be clearly understood that this is not a contribution aimed against globalization and global competition. However, the issues raised in this article urgently need to be addressed. It logically follows that further research is needed in time.     

How to Model a Negligible Probability Under the WTO Sanitary and Phytosanitary Agreement?

Since the 1997 EC – Hormones decision, World Trade Organization (WTO) Dispute Settlement Panels have wrestled with the question of what constitutes a negligible risk under the Sanitary and Phytosanitary Agreement. More recently, the 2010 WTO Australia – Apples Panel focused considerable attention on the appropriate quantitative model for a negligible probability in a risk assessment. The 2006 Australian Import Risk Analysis for Apples from New Zealand translated narrative probability statements into quantitative ranges. The uncertainty about a “negligible” probability was characterized as a uniform distribution with a minimum value of zero and a maximum value of 10^?6. The Australia – Apples Panel found that the use of this distribution would tend to overestimate the likelihood of “negligible” events and indicated that a triangular distribution with a most probable value of zero and a maximum value of 10^?6 would correct the bias. The Panel observed that the midpoint of the uniform distribution is 5 × 10^?7 but did not consider that the triangular distribution has an expected value of 3.3 × 10^?7. Therefore, if this triangular distribution is the appropriate correction, the magnitude of the bias found by the Panel appears modest. The Panel's detailed critique of the Australian risk assessment, and the conclusions of the WTO Appellate Body about the materiality of flaws found by the Panel, may have important implications for the standard of review for risk assessments under the WTO SPS Agreement.     

From strangers to social collectives? Sensemaking and organizing in response to a pandemic

The COVID-19 pandemic temporarily exposed the inadequacy of established institutions and markets to handle a multidimensional crisis, but it also revealed the spontaneous emergence of social collectives to mitigate some of its consequences. Building upon more than 600 responses from an open-ended survey and follow-up qualitative interviews, we seek to understand the spontaneous formation of social collectives in neighborhoods during the initial global lockdown. Applying the sensemaking lens, we theorize the process that prevented the collapse of sensemaking; motivated neighbors to comply with the pandemic-related restrictions; and inspired the development of collective initiatives and the sharing of resources, experiences, and a feeling of belonging. In doing so, we identify mechanisms that allow distributed sensemaking and organizing for resilience: widely shared and accepted cues and frames, simultaneous enactment of practices, embeddedness, visibility of actions, and sense of community. Contrary to the literature on local community organizing and entrepreneurship, which emphasizes the importance of shared values and beliefs, we reveal how the abovementioned mechanisms enable social collectives to emerge and build resilience in times of crisis, even in the absence of pre-existing ties and physical and social isolation. Implications for sensemaking, resilience, organization studies, and community psychology are discussed.