Modeling the demand reduction input-output (I-O) inoperability due to terrorism of interconnected infrastructures.

Interdependency analysis in the context of this article is a process of assessing and managing risks inherent in a system of interconnected entities (e.g., infrastructures or industry sectors). Invoking the principles of input-output (I-O) and decomposition analysis, the article offers a framework for describing how terrorism-induced perturbations can propagate due to interconnectedness. Data published by the Bureau of Economic Analysis Division of the U.S. Department of Commerce is utilized to present applications to serve as test beds for the proposed framework. Specifically, a case study estimating the economic impact of airline demand perturbations to national-level U.S. sectors is made possible using I-O matrices. A ranking of the affected sectors according to their vulnerability to perturbations originating from a primary sector (e.g., air transportation) can serve as important input to risk management. For example, limited resources can be prioritized for the "top-n" sectors that are perceived to suffer the greatest economic losses due to terrorism. In addition, regional decomposition via location quotients enables the analysis of local-level terrorism events. The Regional I-O Multiplier System II (RIMS II) Division of the U.S. Department of Commerce is the agency responsible for releasing the regional multipliers for various geographical resolutions (economic areas, states, and counties). A regional-level case study demonstrates a process of estimating the economic impact of transportation-related scenarios on industry sectors within Economic Area 010 (the New York metropolitan region and vicinities).     

The Blinders of Dominant Logic

This article argues that the dominant logic embedded in an organisation may keep it on the road ahead, but it also acts as a blinder to peripheral vision. It says that managers need to look at beyond the borders of their industries and geographies to find new opportunities and rethink the logic of the business. It refers to corporate examples where shifts in organisations’ dominant logic allowed traditional assumptions about value creation to be reassessed and resulted in successful forays into the periphery.     

Turning Three Sides into a Delta at General Motors: Enhancing Partnership Integration on Corporate Ventures

General Motors had enjoyed global operations that were based on exports, acquisitions, joint ventures and strategic alliances throughout the 20th century. Its global-programme strategy appeared assured. However, the carmaker came unstuck when it came to creating a large-scale collaborative effort involving its own internal units. The Delta Small Car Program, involving three fully internal GM units, was terminated after its goals failed to materialise. The carmaker’s long-standing cultural tradition of autonomy for its units was what made collaboration between them difficult. We examine this GM global programme, placing it in its historical context. Our primary database consists of the perceptions and experiences offered to us by a cross-section of programme participants. By examining partner integration at the working level, we identify insights and offer recommendations pertaining to venture structure and dynamics and their role in venture success.     

Social Loafing: A Field Investigation

Social loafing was investigated by testing a multilevel model among 23 intact work groups comprised of 168 employees representing two organizations. Results demonstrated that as hypothesized at the individual level, increases in task interdependence and decreases in task visibility and distributive justice were associated with greater occurrence of social loafing. At the group level, increased group size and decreased cohesiveness were related to increased levels of social loafing. Of particular interest was the finding that group member perceptions of perceived coworker loafing was associated with reduced social loafing, opposite of our predictions. We suggested that this unexpected finding may provide evidence of a social compensation effect.     

A General Formula for Valuing Defaultable Securities

Previous research has shown that under a suitable no‐jump condition, the price of a defaultable security is equal to its risk‐neutral expected discounted cash flows if a modified discount rate is introduced to account for the possibility of default. Below, we generalize this result by demonstrating that one can always value defaultable claims using expected risk‐adjusted discounting provided that the expectation is taken under a slightly modified probability measure. This new probability measure puts zero probability on paths where default occurs prior to the maturity, and is thus only absolutely continuous with respect to the risk‐neutral probability measure. After establishing the general result and discussing its relation with the existing literature, we investigate several examples for which the no‐jump condition fails. Each example illustrates the power of our general formula by providing simple analytic solutions for the prices of defaultable securities.     

When do Public Managers Imitate Each Other? Mimetic Decision Making in Contracting Decisions of Danish Municipalities

Using organizational new institutional theory, this paper explores a core mechanism underlying contracting decisions in public organizations. A central proposition of this branch of institutional theory is that uncertainty leads to organizational isomorphism. The present study investigates this proposition by asking: When does perceived uncertainty lead public managers to imitative behavior in contracting out decisions? Contrary to most previous studies, we apply an individual level approach and relate different types of perceived uncertainty of decision makers to mimetic decision making. We define mimetic decision making as when decision makers deliberately obtain information about other organizations in order to possibly imitate them. In a survey of Danish municipal managers facing important and complex contracting decisions, we test our hypotheses about three types of perceived uncertainty and mimetic decision making. The results show that technological uncertainty is strongly related to mimetic decision making among public managers. However, we do not find significant results for either volume uncertainty or performance uncertainty. The paper illustrates how uncertainty, through mimetic decision making, is connected to organizational isomorphism. It further highlights that future studies should pay attention to the multidimensionality of uncertainty and its consequences.     

Preis-Promotion-Framing – Ein Überblick zum Stand der Forschung

This article reviews published literature and provides an overview on present empirical evidence about the framing of price promotions. Concerning explicit price reductions (discounts, coupons, rebates), the effects of advertised reference prices and different frames of price discounts (relative versus absolute price discount, objective versus tensile price claims) on consumers’ reactions are discussed. Furthermore, the article examines empirical results on implicit price reductions (volume packs, free extra products) as well as on sale signs and restrictions (e.g. purchase limits, time limits) as popular ways of framing a deal. The key findings point out that framing a price promotion in different ways can affect consumers’ perceptions and evaluations of the deal. Based on the reviewed literature, the concluding section provides managerial implications and an agenda for further research.