Why do Emerging Market Firms Engage in Voluntary Environmental Management Practices? A Strategic Choice Perspective

In this paper, we investigate firms’ decisions to engage in voluntary environmental management (VEM) practices within an emerging market context. Drawing on the strategic choice and the resource‐based view perspectives, we report results from a survey of VEM practices – a specific form of self‐governance – drawing on a sample of 519 Turkish firms from various industries to identify important strategic antecedents of firms’ decisions to engage in such practices. We find that as firms become more customer focused, more inclined to pursue a differentiation strategy and subject to a higher level of strategy‐oriented stakeholder focus, they tend to implement higher levels of VEM practices, with important implications for research, policy and practice for both emerging and developed markets.     

Judgments of Personal and Environmental Risks of Consumer Products—Do they Differ?

Many psychometric studies have investigated judgments concerning personal risks from technologies, activities or consumer products, but only a few studies have included judgments of risk to the environment. Thus, little is known about this aspect of environmental risk perception, and whether it differs from personal risk perception. This study investigates risk judgments for 30 consumer products of various types such as herbal remedies, mobile telephones, genetically engineered drugs, or garden pesticides. A survey was conducted in two German cities: Leipzig and West Berlin. In total, 408 subjects evaluated the consumer products with regard to personal and environmental risk (and other risk-related aspects) and whether they would recommend the product to others. The findings show statistically significant differences between the mean values of perceived personal risk and environmental risk for most products. Despite these differences, the rank order of mean personal risk and environmental risk judgments for the products is quite similar. However, separate analyses for each product reveal that correlations between perceived personal and environmental risk vary strongly across products. Multiple regression analyses with personal and environmental risk judgments as predictors and product recommendation as criterion, run separately for each consumer product, show that it is mainly the judgment of perceived personal risk that explains product recommendation. Perceived risk to the environment adds little explanatory power. The study also explores differences in judgments of personal and environmental risk with regard to two sociodemographic variables: location (former East Germany vs. West Germany) and gender. Differences in both types of risk judgments are found with regard to location but not for gender.     

Why Do Neighbors Have Different Environmental Priorities? Analysis of Environmental Risk Perception in a Beirut Neighborhood

Differences in environmental priorities within an urban neighborhood of Beirut are analyzed. The explanatory capabilities of five categories of contextual variables are compared: socioeconomic status, locality, health, behavior, and environmental beliefs. Semi-structured interviews with key individuals in the community and residents were first conducted. Four environmental issues of concern were identified. A survey was carried out to identify the relative priority accorded by respondents to these four issues, and to measure variables likely to explain differences of opinion. Bivariate and multivariate logistic regression analyses were conducted for each of the four problems. The 99% confidence interval (CI) of the odds ratio (OR) was used as a test of significance. Respondents suffering from a respiratory disease (OR = 6.94, 99%CI = 1.54-31.25), those living in less crowded houses (OR = 4.88, 99%CI = 1.38-17.24), and those not living close to the neighborhood's industrial street (OR=5.26, 99%CI = 1.01-27.78) are significantly more likely to rank poor air quality first. Significant associations are found between poor water quality as first priority and nonpresence of a smoker in the household (OR = 6.12, 99%CI = 1.84-20.32) and perception of water salinity as a problem (OR = 7.46, 99%CI = 1.50-37.03). Males (OR = 6.94, 99%CI = 1.02-47.62) and tenants versus owners (OR = 10.49, 99%CI = 1.36-80.61) are significantly more likely to rank the residential-industrial mix first. Socioeconomic variables retain their explanatory capability in the studied neighborhood, despite relatively small income disparities. Behavioral variables, such as smoking, may be causative factors of priorities. Analyzing relative priorities, rather than "concern" or lack of it, reveals more complex patterns of association. Identifying environmental-perception divide lines can help develop a more inclusive and effective participatory environmental management.     

What Risks Do People Perceive in Everyday Life? A Perspective Gained from the Experience Sampling Method (ESM)

The experience sampling method (ESM) was used to collect data from 74 part-time students who described and assessed the risks involved in their current activities when interrupted at random moments by text messages. The major categories of perceived risk were short term in nature and involved "loss of time or materials" related to work and "physical damage" (e.g., from transportation). Using techniques of multilevel analysis, we demonstrate effects of gender, emotional state, and types of risk on assessments of risk. Specifically, females do not differ from males in assessing the potential severity of risks but they see these as more likely to occur. Also, participants assessed risks to be lower when in more positive self-reported emotional states. We further demonstrate the potential of ESM by showing that risk assessments associated with current actions exceed those made retrospectively. We conclude by noting advantages and disadvantages of ESM for collecting data about risk perceptions.     

Why Doesn't Technology Flow From Rich to Poor Countries?

What is the role of a country's financial system in determining technology adoption? To examine this, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation. The terms of finance are dictated by an intermediary's ability to monitor and control a firm's cash flow, in conjunction with the structure of the technology that the firm adopts. It is not always profitable to finance promising technologies. A quantitative illustration is presented where financial frictions induce entrepreneurs in India and Mexico to adopt less‐promising ventures than in the United States, despite lower input prices.     

Do People Believe Combined Hazards Can Present Synergistic Risks?

The risk attributable to some hazard combinations can be greater than the sum of the risk attributable to each constituent hazard. Such "synergistic risks" occur in several domains, can vary in magnitude, and often have harmful, even life-threatening, outcomes. Yet, the extent to which people believe that combined hazards can present synergistic risks is unclear. We present the results of two experimental studies aimed at addressing this issue. In both studies, participants examined synergistic and additive risk scenarios, and judged whether these were possible. The results indicate that the proportion of people who believe that synergistic risks can occur declines linearly as the magnitude of the synergistic risk increases. We also find that people believe, despite scientific evidence to the contrary, that certain hazard combinations are more likely to present additive or weakly synergistic risks than synergistic risks of higher magnitudes. Furthermore, our findings did not vary as a simple function of hazard domain (health vs. social), but varied according to the characteristics of the specific hazards considered (specified vs. unspecified drug combinations). These results suggest that many people's beliefs concerning the risk attributable to combined hazards could lead them to underestimate the threat posed by combinations that present synergistic risks, particularly for hazard combinations that present higher synergistic risk magnitudes. These findings highlight a need to develop risk communications that can effectively increase awareness of synergistic risks.     

Do Women Cause Unemployment? Evidence from Eight OECD Countries

ABSTRACT: In this paper the authors present the results of preliminary estimates on the effects of changes in the composition of labour forces throughout eight OECD countries during the period 1966-1986. The analysis proceeds in two steps. First, the effect of changes in the distribution of the labour force on group unemployment is computed. Second, the impact of this effect is combined with the direct effect of changes in the distribution of participation on total unemployment rates, to calculate a hypothetical unemployment rate which corresponds to what would have occured had there been no compositional changes. The paper challenges the thesis which sustains that alterations in the age-sex composition of the labour force have exerted an upward pressure on the aggregate unemployment rate.     

Can Property Values Capture Changes in Environmental Health Risks? Evidence from a Stated Preference Study in Italy and the United Kingdom

Hedonic models are a common nonmarket valuation technique, but, in practice, results can be affected by omitted variables and whether homebuyers respond to the assumed environmental measure. We undertake an alternative stated preference approach that circumvents these issues. We examine how homeowners in the United Kingdom and Italy value mortality risk reductions by asking them to choose among hypothetical variants of their home that differ in terms of mortality risks from air pollution and price. We find that Italian homeowners hold a value of a statistical life (VSL) of €6.4 million, but U.K. homeowners hold a much lower VSL (€2.1 million). This may be because respondents in the United Kingdom do not perceive air pollution where they live to be as threatening, and actually live in cities with relatively low air pollution. Italian homeowners value a reduction in the risk of dying from cancer more than from other causes, but U.K. respondents do not hold such a premium. Lastly, respondents who face higher baseline risks, due to greater air pollution where they live, hold a higher VSL, particularly in the United Kingdom. In both countries, the VSL is twice as large among individuals who perceive air pollution where they live as high.     

Do People Actually Pursue Risk Elimination in Environmental Risk Management?

This study examines whether people pursue the total elimination of environmental risks even if the risk reduction occurs incrementally and requires steadily increasing amounts of money to achieve. Participants' willingness to pay (WTP) was measured for various levels of reduction in the risk of cancer caused by dioxin. Results showed that: (1) people were willing to pay more for an initial reduction in risk than for subsequent reductions, (2) the WTP for the final risk decrement-which achieved total risk elimination-was higher than the WTP for either of the two previous decrements but barely half of that for the first reduction, and (3) the manner in which the questions were framed did not affect participants' responses. These results suggest that the public will not always try to pursue perfect safety at the cost of a large sum of money, but rather may seek a decreasing expenditure as the risk level is reduced.     

Why Do Women's Wages Increase So Slowly Throughout Their Career? A Dynamic Model of Statistical Discrimination

Abstract. The aim of this paper is to explain the growing wage differentials between men and women during their working careers. We provide a dynamic model of statistical discrimination, which integrates specific human capital decisions: on‐the‐job training investment and wages are endogenously determined. We reveal a small wage differential at the beginning of women's career, but women's wages increase more slowly; this is partly due to a lower level of human capital investment by women and partly because firms smooth training costs between different periods.     

Why Do Established Practices Deinstitutionalize? An Actor‐Centred Approach

Drawing on 63 in‐depth interviews from three American multinationals, we investigate how individual actors negotiate the interplay of insider and outsider pressures on the deinstitutionalization of four employment practices in an institutionally complex setting. Existing institutional theory highlights different degrees of deinstitutionalization, from complete abandonment of practices to partial erosion, with an underlying presumption of organizations and actors striving for stability and stasis. However, the present study finds that actor reconciliation of interacting insider and outsider pressures can result in three distinct phases of deinstitutionalization (complete, partial and negotiated deinstitutionalization), which crucially coexist, suggesting perpetual instability and change. The authors conceptualize the individual‐level enabling conditions for each of these different phases of deinstitutionalization, highlighting a range of actor responses as well as differences in how actors exercise agency across each phase. Examining actor negotiation of the interplay of insider and outsider pressures improves our understanding of how individuals engage in differential institutional work when responding to practice deinstitutionalization.     

Part-Time Work in the Nordic Countries: A Trap for Women?

Abstract. The aim of the study is to examine the consequences of part-time employment at the individual level, especially for women. Are part-time jobs precarious as compared to full-time jobs, and are they traps, or perhaps rather bridges, in the labour market? The results indicate that the situation of part-timers varies in the Nordic countries. On one hand, the gap between part-time and full-time work has narrowed in Sweden and Norway, which may reflect a normalization of part-time work in these countries. On the other, part-timers' situation in the Finnish labour market still seems more precarious than that of full-timers. However, in most cases part-time work is a bridge rather than a trap in the Nordic labour market.     

Why Do People from Southern Italy Seek Jobs in the Public Sector?

This paper analyses the choice open to a worker seeking a job in the public and private sectors of the labour market. The private sector is identified by a steeper wage profile and by lower job security than the public sector. The reservation wage for the two sectors is calculated in the first part of the paper. The results reveal that the reservation wage for the public sector is higher than that for the private sector. The effect of career prospects, job riskiness and labour demand on optimal time allocation between the search in the two sectors is then analysed. Finally, an empirical analysis is made in order to study Italian workers’ search strategies. It highlights relevant geographical differences which can be interpreted through the theoretical results obtained in the paper.     

Detrimental Effects of Performance-Related Pay in the Public Sector? On the Need for a Broader Theoretical Perspective

Performance-related pay has been a key ingredient in New Public Management reforms. Nevertheless, the research presented here indicates some adverse effects of such incentives. These incentives may impair an initial motivation to work and change the norms that guide behavior. An issue which in particular has been given insufficient attention is fairness. Findings drawn from experimental economics supported by field studies demonstrate that perceived unfairness may have important negative effects on performance. The implication of a broader perspective in the analysis of performance-related pay in the public sector is that such a pay system, contrary to its aim, may have detrimental effects on performance.     

Why Do People Keep Their Promises? An Experimental Test of Two Explanations1

Numerous psychological and economic experiments have shown that the exchange of promises greatly enhances cooperative behavior in experimental games. This paper seeks to test two theories to explain this effect. The first posits that individuals have a preference for keeping their word. The second assumes that people dislike letting down others' payoff expectations. According to the latter account, promises affect behavior only indirectly, because they lead to changes in the payoff expectations attributed to others. I conduct an experiment designed to distinguish between and test these alternative explanations. The results demonstrate that the effects of promises cannot be accounted for by changes in payoff expectations. This suggests that people have a preference for promise keeping per se.     

Why Do We Observe Stockless Operations on the Internet? Stockless Operations Under Competition

Due to the proliferation of electronic commerce and the development of Internet technologies, many firms have considered new pricing‐inventory models. In this paper, we study the role of stockless (i.e., zero‐inventory) operations in online retailing by a considering duopoly competition in which two retailers compete to maximize profit by jointly optimizing their pricing and inventory decisions. In our model, the retailers are allowed to choose either an in‐stock policy or stockless operations with a discounted price. We first present the characteristics and properties of the equilibrium. We then demonstrate that the traditional outcome of asymmetric Bertrand competition is observed under head‐to‐head competition. However, when the two firms choose different operational policies, with corresponding optimal pricing, they can share the market under certain conditions. Finally, we report interesting observations on the interaction between pricing and inventory decisions obtained from an extensive computational study.     

Warning Triggers in Environmental Hazards: Who Should Be Warned to Do What and When?

Determining the most effective public warnings to issue during a hazardous environmental event is a complex problem. Three primary questions need to be answered: Who should take protective action? What is the best action? and When should this action be initiated? Warning triggers provide a proactive means for emergency managers to simultaneously answer these questions by recommending that a target group take a specified protective action if a preset environmental trigger condition occurs (e.g., warn a community to evacuate if a wildfire crosses a proximal ridgeline). Triggers are used to warn the public across a wide variety of environmental hazards, and an improved understanding of their nature and role promises to: (1) advance protective action theory by unifying the natural, built, and social themes in hazards research into one framework, (2) reveal important information about emergency managers’ risk perception, situational awareness, and threat assessment regarding threat behavior and public response, and (3) advance spatiotemporal models for representing the geography and timing of disaster warning and response (i.e., a coupled natural‐built‐social system). We provide an overview and research agenda designed to advance our understanding and modeling of warning triggers.     

How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective

The growing tendency of local technological innovation (LTI) of multinational corporations (MNCs), together with the increasing significance of subsidiaries in MNCs' overseas operations, are promoting subsidiaries' engagement in conducting LTI activities in a host country. In this research, a systematic review methodology with the identification of 116 articles is adopted for the purpose of explicating MNCs' holistic and dynamic LTI process from subsidiaries' perspective. Concretely, we propose a thorough framework upon the typical input-process-output model by taking the antecedents, mechanisms, and consequences into consideration about the whole LTI process. It is suggested in this review that the trigger logic of LTI activities can be explained as the interactions between firm-specific advantages and country-specific advantages that took place at subsidiaries. Crucially, the elaborations on LTI mechanisms have been extended by means of evoking a duality lens of the top-down and the bottom-up pattern. Finally, the results show that differential consequences of LTI activities are presented by bringing divergent benefits to different parties. More importantly, the subsidiary takes the unique role in fostering a virtuous loop between dualistic LTI patterns. Overall, these insights reflect what we have obtained from extant literature and the challenges international business landscapes have ahead, which could point to the directions of future research.     

Do Interactions Between Environmental Chemicals and the Human Microbiome Need to Be Considered in Risk Assessments?

One of the most dynamic and fruitful areas of current health‐related research concerns the various roles of the human microbiome in disease. Evidence is accumulating that interactions between substances in the environment and the microbiome can affect risks of disease, in both beneficial and adverse ways. Although most of the research has concerned the roles of diet and certain pharmaceutical agents, there is increasing interest in the possible roles of environmental chemicals. Chemical risk assessment has, to date, not included consideration of the influence of the microbiome. We suggest that failure to consider the possible roles of the microbiome could lead to significant error in risk assessment results. Our purpose in this commentary is to summarize some of the evidence supporting our hypothesis and to urge the risk assessment community to begin considering and influencing how results from microbiome‐related research could be incorporated into chemical risk assessments. An additional emphasis in our commentary concerns the distinct possibility that research on chemical–microbiome interactions will also reduce some of the significant uncertainties that accompany current risk assessments. Of particular interest is evidence suggesting that the microbiome has an influence on variability in disease risk across populations and (of particular interest to chemical risk) in animal and human responses to chemical exposure. The possible explanatory power of the microbiome regarding sources of variability could reduce what might be the most significant source of uncertainty in chemical risk assessment.