Book Reviews

Indonesia: the making of a culture. James J. Fox (ed.). 286pp, maps, figures, tables, bibliographies. (Vol. 1 in Indonesia: Australian Perspectives. James J. Fox, Ross Garnaut, Peter McCawley, J.A.C. Mackie (eds).) Canberra: Research School of Pacific Studies, The Australian National University. 1980. $10.

Mekeo: inequality and ambivalence in a village society. Epeli Hau’ofa. x, 3 39pp., maps, figures, tables, plates, appendices, glossary, bibliography, index. Canberra: Australian National University Press. 1981. $19.50.

Tribal communities in rural areas. Elspeth Young, xxiii, 230pp., maps, figures, tables, bibliography. (The Aboriginal Component in the Australian Economy, no. 1.) Canberra: Development Studies Centre, Research School of Pacific Studies, The Australian National University. 1981. $9.

Women in India and Nepal. Michael Allen and S.N. Mukerjee (eds). xiii, 286pp., figures, bibliographies, index. Canberra: The Australian National University (Monographs on South Asia no. 8). 1982. $10.     

Employment Relationships and Firm Innovation: The Double Role of Human Capital

We examine how employment relationships and human capital influence innovation in a sample of Spanish firms. Previous research has indicated that human capital directly affects innovation, but few studies have considered human capital as a variable that mediates or moderates the effects of other variables on innovation. We tested our hypotheses using a sample of 150 innovative Spanish firms and confirmed that, while human capital favours innovations, employment relationships are not directly associated with innovation unless they take human capital into account. Specifically, our analyses suggest that human capital mediates the relationship between a mutual investment employment relationship and innovation, which is characterized by high levels of incentives and expectations. However, we also found that human capital plays a moderating role when organizations develop an employment relationship characterized by low investments in personnel but high expectations from their work (the underinvestment model). We discuss the theoretical and practical implications of these results.     

Design Improvements for Message Propagation in Malleable Social Networks

This study presents the formal problem definition and computational analysis of the network design improvements for idea and message propagation in both enterprise and consumer social networks (ESN and CSN, respectively). Message propagation in social networks is impacted by how messages are seeded in the network, and by propagation characteristics of the network topology itself. It has been recognized that the propagation properties of these networks can be actively influenced by network design interventions, such as the deliberate creation of new connections. We address the problem of finding cost‐effective message seeding, and identifying potential new network connections that allow improved propagation in social networks with cascade propagation. We use the hop‐constrained minimum spanning tree (HMST) model to find the seeds and possible new connections that result in networks with improved propagation properties. Moreover, we present new heuristic algorithms that substantially improve the solution quality for the HMST problem. Computational results posit that the design improvements proposed by the HMST approach can greatly improve cascade propagation performance of the networks at low cost.     

The Financial Impact of FSC Certification in the United States: A Contingency Perspective

This article focuses on an important and emergent standard for sustainable operations management: the Forest Stewardship Council (FSC) certification. Unlike similar certifications, its focus is on the entire upstream supply chain, reflecting the criticality of supply chain management to ensure sustainable products. We investigate the financial impact from FSC certification, offering valuable decision support for managers considering this certification. Taking a contingency perspective, we view a firm's supply chain position and its prior certification to the ISO 14001 standard as influencing the results. Drawing on signaling theory, we suggest that firms farther downstream in the supply chain realize significantly greater abnormal financial performance benefits than firms upstream in the supply chain. We further hypothesize that firms that were not ISO 14001 certified at the time of FSC certification realize significantly greater abnormal financial performance benefits than firms that did have the ISO 14001 certification. To test these hypotheses, we utilize financial data of all publicly traded firms in the United States that have obtained the FSC certification, and assess whether FSC certification leads to abnormal performance benefits considering the above contingencies. Data collected from the FSC Certificate Database and Compustat, employed in an event study, provide support for our hypotheses. Overall, our findings contribute to research on decision making in the context of sustainable operations management, and offer a plausible explanation for contradictory results in prior studies. We highlight the applicability of signaling theory to decision sciences research, and stress the need to consider contingencies in sustainability management research.     

Students’ Vocational Choices and Voluntary Action: A 12-Nation Study

Previous research on student involvement suggested that business and engineering students manifest lowest rates of voluntary action. Similarly, it was thought that social science students are the most involved in voluntary action, with students of natural sciences and humanities in the middle. However, there were very few studies that empirically compared these assertions. Furthermore, these assertions were not investigated from cross-cultural perspectives. Based on a study of students in 12 countries (N = 6,570), we found that even when controlling for background variables, social science students are actually less engaged in voluntary action than other students. Engineering students are higher than expected on voluntary action while students of humanities are the most involved in voluntary action. When studying these differences in the 12 selected countries, local cultures and norms form different sets of findings that suggest that there is no universal trend in choice of academic field and voluntary action.     

Medical tourism in the Caribbean

Although travel for medical reasons has a long history, it has more recently evolved from a cottage industry to a worldwide enterprise. A number of countries are positioning themselves to attract visitors who are willing to travel to obtain health services that are more accessible, less expensive, or more available than in their countries of origin. This has in turn given rise to medical packages that combine tourism with health. Several Caribbean nations - including Cuba, Barbados, Jamaica, and Puerto Rico - hope to expand their revenues in this new market. Each country has selected specific service niches and promotes its services accordingly. While Cuba has been promoting its services to other countries for several decades, medical tourism is just beginning in the other islands. Ultimately, these nations' economic success will hinge on their comparative advantage vis-à-vis other options, while their success in terms of improving their own health care depends on the extent to which the services for tourists are also available to the islands' populations.