Trust in Risk Regulation: Cause or Consequence of the Acceptability of GM Food?

Although there is ample empirical evidence that trust in risk regulation is strongly related to the perception and acceptability of risk, it is less clear what the direction of this relationship is. This article explores the nature of the relationship, using three separate data sets on perceptions of genetically modified (GM) food among the British public. The article has two discrete but closely interrelated objectives. First, it compares two models of trust. More specifically, it investigates whether trust is the cause (causal chain account) or the consequence (associationist view) of the acceptability of GM food. Second, this study explores whether the affect heuristic can be applied to a wider number of risk-relevant concepts than just perceived risk and benefit. The results suggest that, rather than a determinant, trust is an expression or indicator of the acceptability of GM food. In addition, and as predicted, "affect" accounts for a large portion of the variance between perceived risk, perceived benefit, trust in risk regulation, and acceptability. Overall, the results support the associationist view that specific risk judgments are driven by more general evaluative judgments The implications of these results for risk communication and policy are discussed.     

Does Experience Teach? Professionals and Minimax Play in the Lab

Does expertise in strategic behavior obtained in the field transfer to the abstract setting of the laboratory? Palacios‐Huerta and Volij (2008) argued that the behavior of professional soccer players in mixed‐strategy games conforms closely to minimax play, while the behavior of students (who are presumably novices in strategic situations requiring unpredictability) does not. We reexamine their data, showing that the play of professionals is inconsistent with the minimax hypothesis in several respects: (i) professionals follow nonstationary mixtures, with action frequencies that are negatively correlated between the first and the second half of the experiment, (ii) professionals tend to switch between under‐ and overplaying an action relative to its equilibrium frequency, and (iii) the distribution of action frequencies across professionals is far from the distribution implied by minimax. In each respect, the behavior of students conforms more closely to the minimax hypothesis.     

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.     

Elusive Critical Elements of Transformative Risk Assessment Practice and Interpretation: Is Alternatives Analysis the Next Step?

This article argues that “game‐changing” approaches to risk analysis must focus on “democratizing” risk analysis in the same way that information technologies have democratized access to, and production of, knowledge. This argument is motivated by the author's reading of Goble and Bier's analysis, “Risk Assessment Can Be a Game‐Changing Information Technology—But Too Often It Isn't” (Risk Analysis, 2013; 33: 1942–1951), in which living risk assessments are shown to be “game changing” in probabilistic risk analysis. In this author's opinion, Goble and Bier's article focuses on living risk assessment's potential for transforming risk analysis from the perspective of risk professionals—yet, the game‐changing nature of information technologies has typically achieved a much broader reach. Specifically, information technologies change who has access to, and who can produce, information. From this perspective, the author argues that risk assessment is not a game‐changing technology in the same way as the printing press or the Internet because transformative information technologies reduce the cost of production of, and access to, privileged knowledge bases. The author argues that risk analysis does not reduce these costs. The author applies Goble and Bier's metaphor to the chemical risk analysis context, and in doing so proposes key features that transformative risk analysis technology should possess. The author also discusses the challenges and opportunities facing risk analysis in this context. These key features include: clarity in information structure and problem representation, economical information dissemination, increased transparency to nonspecialists, democratized manufacture and transmission of knowledge, and democratic ownership, control, and interpretation of knowledge. The chemical safety decision‐making context illustrates the impact of changing the way information is produced and accessed in the risk context. Ultimately, the author concludes that although new chemical safety regulations do transform access to risk information, they do not transform the costs of producing this information—rather, they change the bearer of these costs. The need for further risk assessment transformation continues to motivate new practical and theoretical developments in risk analysis and management.     

Tradeoffs in Manufacturing? A Meta‐Analysis and Critique of the Literature

An ongoing, important question in the operations strategy literature pertains to tradeoffs: Can manufacturers focus on multiple priorities simultaneously or achieve strength on multiple capabilities without sacrificing performance of another? In this paper, we accumulate, integrate, and examine the wide spectrum of conclusions reached in the literature concerning tradeoffs using modified meta‐analysis methods. Based on two decades of empirical research in operations strategy, we find that the evidence in the literature indicates manufacturers, on average, do not report experiencing tradeoffs among the competitive dimensions of quality, delivery, flexibility, and cost as suggested by the classical tradeoffs model. Our meta‐analysis also reveals that the way variables are operationalized, whether initiatives are implemented, and the unit of analysis are all related to the degree and nature of the evidence a paper contains with respect to the tradeoffs issue. We interpret our meta‐analysis results in the context of the prevailing model of manufacturing strategy and the theory of performance frontiers. We also discuss how the research designs used in this literature, which are predominantly cross‐sectional, affect the nature of the evidence generated and the conclusions that can be drawn. We go on to suggest research designs that more directly assess the tradeoffs issue.     

What jobs will there be in the future?

Physicians often ask what kinds of jobs there will be for physician executives in the future. Learn what two futurists and four recruiters think about this issue in this excerpt from ACPE's recent book: A Career Guide for Physician Executives.     

What is the board of directors good for?

The history of corporate crisis in recent years indicates that the present method of operation of boards of directors is inadequate to deal with crises or influence events. Whether the remedies lie within the present structure or whether they should be found by establishing a new system is the challenge facing the corporate world and the academic business school. If, however, remedies are difficult or impossible to find, then at least the limitations of the boards of directors should be made clear.     

A Multi‐theory Perspective of Board Leadership Structure: What Does the Egyptian Corporate Governance Context Tell Us?

Much of the existing research in corporate governance has been directed at examining the consequences of board leadership structure on various organizational issues, with little to say about the determinants of this structure. By exploring either agency theory or stewardship theory, researchers provide contested conclusions regarding board leadership structure. The underlying premise of both theories is that ‘one universal structure fits all’. However, the main argument of this paper is that the appropriate board leadership structure varies with some contextual variables and certain actors in a given environment. Econometric analysis demonstrates that board leadership structure varies with firm size, age and ownership structure. The implication of this result is that the assertion of both agency theory (CEO non‐duality structure) and stewardship theory (CEO duality structure) may be valid under certain conditions. Thus, existing theories might need to be treated as complementary viewpoints, each of which draws upon a part of the whole picture, because depending on just one single perspective is more likely to result in misleading conclusions about the structure as a whole.     

What is the impact of sustainable development on the re-localisation of manufacturing enterprises?

Rendering the supply chain more eco-friendly is an innovative idea progressively adopted by industry. Our research focuses on the CO₂ equivalent emissions along the supply chain due to freight energy use and storage. A supply chain model based on discrete event simulation was developed. The model uses reorder point production management policy (ROP) within a make to stock (MTS) demand response strategy. Manufacturing capability is also taken into account using an overall equipment effectiveness indicator (OEE). In addition, the location of the firms and their types of products are modelled. The purpose is to compare supply chain CO₂ equivalent emissions of different configurations. This method is applied to two industrial cases: Carrier (UTC group), a large cooler manufacturer and Zannier group, a textile industry. The principle objective of the study is to conduct pertinent experiments to give green guidelines to Carrier and Zannier group.     

Will the Truth Set Us Free? An Exploration of CSR Motive and Commitment

This article examines why firms engage in Corporate Social Responsibility (CSR). Specifically, it investigates the relationship between a firm's motivation to engage in CSR and the depth of its commitment. I propose that the enduring debate over CSR and financial performance is misaligned, and that scholars should instead focus on the underlying components of CSR engagement. This research sheds light on the motivational antecedents of a firm's engagement in CSR and their effect on CSR commitment. Despite calls for scientific investigation of this linkage, it has received scant attention in the literature. Pursuing this area of research requires the construction of measures of CSR motivation and CSR commitment, as prior work generally lacks objective analysis. I present measures and a research methodology that test hypotheses about how CSR motivation relates to different levels of CSR commitment. The results of this research both validate and challenge current theory. This refined understanding of CSR engagement may enhance firm transparency and accountability to stakeholders. It may reduce the uncertainty in both internal and external assessments of firm CSR and the potential for social and financial impact.     

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.     

What can we learn from the history of technology?

This article focuses on exploring what technology scholars and students of management of technology stand to benefit most by foraging through the history of technology. In order to show how historical sensitivity could sharpen scholarship, three strategies for complicating the simple are drawn from the historian's toolkit. Implications for research in technology and innovation management are discussed.     

Japan’s Innovation of Public Organizations in the Research and Development Field

The Japanese government implemented drastic restructuring of the central government in 2001. As a part of this reform, the incorporated administrative agency (IAA) system was newly introduced in view of carrying out certain public functions in a more flexible, business-like and autonomous way. Research and development activities in the public sector are now mostly conducted by the incorporated administrative agencies. In this article, the purpose of this reorganization is firstly described followed by the outline of this system and current accomplishments. In concluding, the Japanese undertaking of a new public organization is analyzed in comparison with the European and “Anglo-Saxon” countries.

Requirement or Promise? An Analysis of the First‐Mover Advantage in Quality Contracting

Quality contracting is critical and challenging due to the many unique issues related to quality. In this study, we analyze the first‐mover right in quality contracting by considering two different strategies for the buyer: the quality requirement strategy (QR) where buyer moves first by posting quality requirement to suppliers and quality promise strategy (QP) where buyer voluntarily gives up the first‐mover right to suppliers to ask them to promise quality. We study which strategy (1) better encourages suppliers' quality improvement efforts and (2) leads to a higher expected profit for the buyer. To analyze the drivers behind the buyer's choice between QR and QP, we start with the basic model where buyer faces only one supplier who has the opportunity to make quality improvements. We then gradually add other business features such as information asymmetry and supplier competition, analyzing how each feature adds/changes the driving forces and how they interact in the buyer's decision between QR and QP. We consider both the case where the wholesale price is fixed (when the buyer has the power to dictate price or price is set by the market) and the case where the wholesale price is included as a variable (when price is part of the negotiation). We find that QP always leads to the first‐best quality efforts from the supplier(s) while QR limits their efforts. However, this does not guarantee higher expected profit for the buyer under QP. We provide insightful guidelines in buyer's choice between QP and QR. This research enriches the limited literature on quality contracting with quality improvement opportunity and asymmetric information.     

What explains variation in voluntary disclosure? A study of the annual reports of corporations listed on the Stockholm Stock Exchange

The demand for information and transparency from listed corporations has recently increased. In spite of an increased demand for mandatory disclosures from regulators, corporations choose to voluntarily disclose additional information in order to satisfy demands from the capital market. However, the extent and content of information in those voluntary disclosures vary across corporations. The aim of this study is to explain the variation in the content of information in voluntary disclosures by listed corporations. The analyses are based on data collected from 431 annual reports from corporations listed on the Stockholm Stock Exchange during the years 2002 and 2005. The findings support explanations from agency theory and positive accounting theory that size and the debt ratio are positively correlated with the content of information in voluntary disclosures. Corporations with a high share of management ownership disclosed less information than corporations with a low share of management ownership. The study also shows that variations in voluntary disclosures can be explained by factors derived from institutional theory and ‘international capital market pressures’. The results indicate that foreign ownership and international listing to some extent have a positive effect on the content of information in voluntary disclosures. Industry was another factor that had a significant influence on voluntary disclosures. One important finding is that regulation to some extent can stimulate voluntary disclosures; our results did not indicate an ‘unintended chilling effect’ due to too much regulation. In general, the corporations disclosed more voluntary information after the introduction of IFRS.