Functional Upgrading and Value Capture of Multinational Subsidiaries

This paper investigates the relationship between the value capture of multinational subsidiaries and functional upgrading, which is defined as a diversification of employment from primary business functions to higher value adding activities such as ICT, R&D, marketing or logistics. By combining survey-based business function indicators with longitudinal accounting data for a representative sample of multinational subsidiaries located in six Central and Eastern European countries (CEECs), we assess the impact of functional upgrading on foreign subsidiaries' value capture. The results provide robust evidence that the breadth as well as the scope of functional upgrading induces an upward shift of subsidiaries' value added. The effect of functional upgrading is stronger in the earlier phases after entry of the foreign investor, while the long-term growth trend remains unaffected.     

On the relationship between compliance with recommendations on the audit committee of codes of good practices and financial reporting quality

Codes of good practices provide a soft alternative to the hard legislation approach to corporate governance. These codes include a set of recommendations that companies are expected to follow in order to enhance governance structures and practices. Some of these recommendations specifically aim to improve the effectiveness of the audit committee. We investigate the relationship between the level of compliance with recommendations on the audit committee of the Spanish Unified Code and financial reporting quality, as measured by discretionary accruals and by the opinion of the audit report. We use a sample of companies listed in the Spanish stock market for the years between 2007 and 2013. Results show a strong and positive relationship between the level of compliance with recommendations and the quality of financial reporting. We also report significant results for some specific recommendations. These results are robust to various checks. Therefore, the level of compliance with recommendations on the audit committee might provide a feasible and reliable indicator of the quality of financial reports released by the company.     

International coopetition for innovation: Are the benefits worth the challenges?

International coopetition has rarely been studied in relation to innovation. Further exploration of effects of international coopetition, i.e. the pursuit of simultaneous cooperation and competition, on a firm’s innovation performance is especially important as such a relationship is challenging with a high propensity to fail. This observation formed the point of departure for this study, which aims to increase the understanding of the effects of international coopetition on firm innovativeness and how these effects are conditioned on the magnitude of the organizational adjustments a firm introduces. We use an unbalanced panel of 9839 firms that participated in four waves of the Swedish Community Innovation Survey between 2008 and 2014 as our empirical base. We illustrate that firms that cooperate with competitors internationally are more likely to exhibit higher propensity to introduce radical innovations, yet this effect is conditioned upon the magnitude of organizational adjustments. Overall, our study contributes to the understanding of the implications of international coopetition and what a firm needs to benefit from it.     

Coopetition in coworking-spaces: value creation and appropriation tensions in an entrepreneurial space

Coopetition has the potential to improve entrepreneurship and innovation. It will be prevalent in coworking-spaces building a growing field for individual and corporate entrepreneurship. The individuals’ physical closeness in the professional and social space of the coworking-space eases multifaceted transfers of explicit and implicit knowledge, stimulating creation, transfer, overhaul, and implementation of entrepreneurial ideas. While entrepreneurs in these coworking-spaces collaborate on sharing knowledge and resources and on finding creative ideas from which can breed new venture concepts, they simultaneously compete on the appropriation of values. Thus, entrepreneurs in coworking-spaces face coopetitive tensions of creating and appropriating the values. Based  on  interview data and secondary sources, this paper explains four different prototype institutions of coworking-spaces: the corporate coworking-space, the open corporate coworking-space, the consultancy coworking-space, and the independent coworking-space. Study explains different tensions of value creation and appropriation that occur within the coopetition in the different forms of coworking-spaces.     

Contract design and insurance fraud: an experimental investigation

This paper experimentally examines the impact of contract design on insurance fraud. We test how fraud behavior varies for insurance contracts with full coverage, a straight deductible or claim-dependent premiums (bonus-malus contracts), in a setup where rational and selfish individuals have an incentive to always claim the maximum possible indemnity. We find a substantial impact of contractual arrangements: Deductible contracts lead to a greater extent to claim build-up than full coverage contracts. In contrast, bonus-malus contracts that entail the same net gains from fraud as deductible contracts do not increase claim build-up. Thus, our results indicate that bonus-malus contracts may be superior to deductible contracts for behavioral reasons.     

Domains of Motivation in Men and Women for Initiating and Terminating Procreation in an Evolutionary Perspective

Children require considerable resources such as time and money to be raised. Still, despite the heavy costs involved, most people do decide to have children, a fact that raises the question of what motivates them to do so. Moreover, after having one or more children, people decide not to have additional ones, even though they might still be fertile. This raises the question of what motivates people to terminate procreation. The present paper aims to address these questions using a combination of qualitative and quantitative research methods. In Study 1, we used in-depth interviews and open-ended questionnaires that lead to the identification of 66 reasons for which people have children and 23 reasons for which people stop having children. In Study 2, we used principal component analysis that classified these reasons in broader motivation domains, 15 for procreating and 4 for terminating procreation. Sex differences were examined in each domain. By placing procreation in an evolutionary framework, this study aims to provide a deeper understanding of the motives that drive people toward and away from the process of having children.     

Discursive Methodologies for Couple and Family Therapy Research: Editorial to Special Section

In this article, we aim to introduce the special JMFT section on discursive research methodologies for couple and family therapy research. These are qualitative research methodologies which resonate with the systemic emphasis on the semantics and the pragmatics of therapy discourse. First, we provide a brief overview of such methodologies and their use in the family therapy field. We then introduce the context and the content of the special section, where four approaches, including conversation analysis, discursive psychology type of discourse analysis, poststructurally informed discourse analysis (subject positioning analysis), and semantic analysis, are introduced by means of analyzed extracts from a Tom Andersen consultation session with a couple in distress and their therapist. We conclude with implications for the field. For Tom and Michael     

Retrospective Paternal and Maternal Parenting Styles,Regulatory Self-Efficacy and Adolescent Risk Taking

This study aims to calculate a scaled risk-taking behavior index and to test a model in which maternal and paternal parenting styles affect risk-taking behavior with a mediation of adolescents’ regulatory self-efficacy. Participants were 816 adolescents (44% males) responding to a self-report questionnaire about their risk-taking behavior, regulatory self-efficacy, and retrospective memories of paternal and maternal parenting styles. Results suggested an item rating in the index showing that behaviors considered less risky referred to alcohol use and the unplanned first sexual intercourse, whereas behaviors considered more risky referred to the lack of use of contraceptives and the age of the first sexual intercourse. Results revealed a significant indirect effect of authoritative and authoritarian styles on risk-taking behavior. These styles shaped the adolescents’ regulatory self-efficacy, which in turn predicted adolescent risk-taking behavior. Results underline the complex interplay of relationships between parents and their children.