Drivers of private-label purchase behavior across quality tiers and product categories

Private labels hold a substantial share of consumers’ wallets and their popularity is still growing as they spread into various product categories and quality tiers. To determine the right branding strategy, in terms of offering uniform or different private-label brands across product categories, retailers have to know whether consumers use their private-label experience across product categories and private-label tiers. Therefore, we examine different determinants of consumers’ consideration sets. We apply proneness for certain private-label tiers, product categories purchased, purchase frequency, and variety seeking as internal determinants, which contribute to consumers’ knowledge and experience with private labels. Further, we use consumers’ price consciousness and promotion sensitivity as external determinants, which the retailer can use to influence consumers’ consideration sets in the short run. Our analyses are based on large-scale loyalty program data for a period of 24 months. In particular, we use the first 12 months to derive the determinants of consumers’ share of wallets regarding different private-label quality tiers in the second half of the sample. We conduct our analyses for 12 different product categories and aggregate the results by using meta-analytic techniques. Notably, some determinants show dissimilar effects across product categories (e.g., price consciousness and promotion sensitivity), while others (e.g., private-label proneness) are rather similar. We find that consumers’ general proneness for certain private-labels tiers leads to a propensity to purchase them in a specific category and in adjacent quality tiers. Further, we reveal that product category characteristics moderate the determinants of private-label share.     

Internal audit function quality and financial reporting: results of a survey on German listed companies

Most prior studies on internal audit function (IAF) quality and financial reporting have focused on the US setting and have found a positive association between IAF quality proxies and both financial reporting quality and audit efficiency. In this study, we apply the German setting that is characterized by a two-tier board system of corporate governance and different prerequisites for the serving-two-masters problem. This might weaken the IAF’s ability to monitor financial reporting-related processes. To analyze this, we use survey data to measure IAF quality in the German setting and run multiple regressions to examine the association of several IAF quality characteristics and a self-developed IAF quality score with financial reporting quality and audit efficiency. The results show that also in a two-tier system, a high-quality IAF is able to contribute to both financial reporting quality and audit efficiency. Our findings support the notion that the IAF serves as an essential element of effective corporate governance and plays an important role in financial reporting. Moreover, as a practical implication of interest to regulators and managers, we identify that the external certification of the IAF and internal audit-related certifications of IAF employees may contribute to higher financial reporting quality and lower audit fees.     

Leveraging global sources of knowledge for business model innovation

This article explores the concept of leveraging global knowledge for business model innovation, whereby knowledge is transferred across space and firm boundaries for the reconfiguration of an incumbent firm's business model. Considering the implications of an ever-increasing fragmentation of global value chains and the associated dispersion of global knowledge sources, we propose that supply chain partners at foreign locations can provide valuable knowledge that incumbents can leverage to change their business model. Integrating insights from global supply chain, business model, and organizational learning literature, we theorize and empirically test how different organizational capabilities enable firms to acquire knowledge from foreign partners, integrate external with internal knowledge, transform knowledge through experimentation, and finally apply global knowledge in the form of business model innovation. We conclude with suggestions for future research.     

Interactive production planning and ergonomic assessment with Digital Human Models--introducing the Editor for Manual Work Activities (ema)

The aging workforce is a risk factor for manufacturing industries that contain many jobs with high physical workloads. Thus, ergonomic risk factors have to be avoided in early phases of production planning. This paper introduces a new tool for simulating manual work activities with 3D human models, the so-called emaΦ. For the most part, the emaΦ software is based on a unique modular approach including a number of complex operations that were theoretically developed and empirically validated by means of motion capturing technologies. Using these modules for defining the digital work process enables the production planner to compile human simulations more accurately and much quicker compared to any of the existing modeling tools. Features of the emaΦ software implementation, such as ergonomic evaluation and MTM-time analyses, and the workflow for practical application are presented.     

NGOs and Aid Fragmentation: The Belgian Case

Aid fragmentation is considered a burden for recipient countries. NGOs as important channellers of official development assistance can contribute significantly to this fragmentation. This article is a first attempt to conceptualize and measure NGO aid fragmentation while identifying the complex set of (contradictory) incentive structures. The Belgian case, with its multi-ethnic, multi-linguistic setting, and multi-layered government structures is a crucial case for showing the possible variety of factors which may influence fragmentation. The research finds that fighting aid fragmentation may prove a lot more difficult than suggested because, in the Belgian case, with its multiple incentive structures, fragmentation actually pays off for NGOs.     

Privatization of Public Services in Leipzig: A Balancing Act between Efficiency and Legitimacy

Since 1992, the budget deficits of larger German cities increased from less than one billion Euros to more than nine billion in 2005. The reasons for this fiscal collapse were a worsening economic situation partly caused by lower government revenue and higher costs of unemployment benefits. In order to reduce their deficits, the municipalities started privatizing and outsourcing large sectors of public administration. Leipzig rejected the path of privatization and became the pioneer in organizing large-scale municipal companies. This approach brought essential social benefits, most needed revenues, greater efficiency in delivering services and allowed the city to reduce almost by 50% the number of its administrative staff.     

Intraday futures patterns and volume–volatility relationships: the German evidence

This paper examines the intraday behavior of 5-min DAX futures return volatility, volume and transactions, employing data from between January 1999 and September 2011, thus covering major market up and down trends. We focus on the interplay of the above variables finding a W-shape due to US macroeconomic news releases and the opening of US markets. By carefully modeling regular but infrequent events, we show that the last trading days of the FDAX and ODAX have significant impact on volatility and alter the intraday patterns. Additionally, we pay special attention to interactions between the futures and cash market caused by different trading hours at the Eurex. Thereby, we discover a uW-shape lending support for Daigler’s (J Futures Markets 17:45–74, 1997) extended market closure theory. Focusing on possible changes in the interplay of volume and volatility, we empirically analyze the implications of different volume–volatility theories. Finally, we model simultaneously the main volatility components—intraday calendar effects, macroeconomic announcement effects and interday volatility clustering—employing the framework of Andersen and Bollerslev (J Finance 53:219–265, 1998) to quantify and compare the impact of macroeconomic news announcements during contractions and expansions and focus on the economic impact of the crisis 2007/2008 on intraday volatility.     

Inequality and growth: evidence from panel cointegration

This paper uses heterogeneous panel cointegration techniques to estimate the long-run effect of income inequality on per-capita income for 46 countries over the period 1970–1995. We find that inequality has a negative long-run effect on income, both for the sample as a whole and for important sub-groups within the sample (developed countries, developing countries, democracies, and non-democracies). The effect is economically important, with a magnitude about half as high as the magnitude of an increase in the investment share.     

Gone to war: have deployments increased divorces?

Owing to the armed conflicts in Iraq and Afghanistan, members of the US military have experienced very high rates of deployment overseas. Because military personnel have little to no control over their deployments, the military setting offers a unique opportunity to study the causal effect of major disruptions on marital dissolution. In this paper, we use longitudinal individual-level administrative data from 1999 to 2008 and find that an additional month in deployment increases the divorce hazard of military families, with females being more affected. A standard conceptual framework of marital formation and dissolution predicts a differential effect of these types of shocks depending on the degree to which they are anticipated when a couple gets married. Consistent with this prediction, we find a larger effect for couples married before 9/11, who clearly expected a lower risk of deployment than what they faced post 9/11.