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  • ItemOpen Access
    DOMINANT CURRENCIES: HOW FIRMS CHOOSE CURRENCY INVOICING AND WHY IT MATTERS*
    (The Quarterly Journal of Economics, 2022) Amiti, Mary; Itskhoki, Oleg; Konings, Jozef
    We analyze how firms choose the currency of invoicing and the implications of this choice for exchange rate pass-through into export prices and quantities. Using a new data set for Belgian firms, we find currency invoicing to be an active firm-level decision, shaped by the firm’s size, exposure to imported inputs, and the currency choices of its competitors. Our results show that a firm’s currency choice, in turn, has a direct causal effect on the exchange rate pass-through into prices and quantities. Moreover, the differential price response of similar firms that invoice in different currencies is large, persists beyond a one-year horizon, and gradually wanes in the long run. This results in allocative expenditure-switching effects on export quantities, which build up over time, suggesting a role for quantity adjustment frictions in addition to price stickiness. Our findings shed light on the mechanisms that make or break a dominant currency and the consequences it has for the international transmission of shocks.
  • ItemOpen Access
    A CLOSER LOOK AT HOW AND WHEN FAMILY-SUPPORTIVE SUPERVISION INFLUENCE WORK INTERFERENCE WITH FAMILY: THE ROLES OF FAMILY-ROLE OVERLOAD AND TASK CRAFTING
    (The International Journal of Human Resource Management, 2021) Walumbwa, Fred O.; Christensen-Salem, Amanda; Babalola, Mayowa T.; Kasimu, Paul; Garba, Omale A.; Guo, Liang
    Although family–supportive supervision (FSS) has been identified as one of the most useful social resources for reducing the occurrence of work interference with family (WIF), relatively little is known about the boundary conditions and the underlying mechanisms through which this relationship occurs. Drawing on conservation of resources (COR) theory, we examined how and when FSS relates to WIF in two field studies, focusing on family–role overload as a moderator and employee task crafting as a mediator. Results from Study 1, using multi-wave data from a high-technology firm, showed that family role–overload moderated the relationship between FSS and WIF such that the relationship was stronger for employees with more family role–overload than for those with less family role–overload. Results from Study 2, using multi-wave data from employees working in different industries, revealed that employee task crafting mediated the interactive effect of FSS and family–role overload on WIF. Implications of these findings for research and practice are discussed.
  • ItemOpen Access
    THE IMPACT OF ELECTRICITY PRICES ON EUROPEAN MANUFACTURING JOBS
    (APPLIED ECONOMICS, 2022) Bijnens, Gert; Konings, Jozef; Vanormelingen, Stijn
    Increased investment in clean electricity in combination with a rising cost of carbon will most likely lead to higher electricity prices. We examine the impact from changing electricity prices on European manufacturing employment and find a negative elasticity for the most electricity-intensive sectors. Since these sectors are unevenly spread across countries and regions, the negative employment impact from increasing electricity prices will also be unevenly spread. Policymakers should be well aware of this and take mitigating actions to ensure a positive public sentiment towards environment-related price increases. (JEL J23, H23, Q28, Q43)
  • ItemOpen Access
    CORPORATE GOVERNANCE IN RUSSIAN STATE-OWNED ENTERPRISES: REAL OR SURREAL?
    (Asian Journal of Comparative Law, 2022) Nurgozhayeva, Roza
    The narrative that defines privatisation, corporatisation, and the separation of ownership and regulatory functions as the key prerequisites for a successful state-owned enterprises’ (SOE) governance structure represents the literature's leading approach. This approach has been embedded in national laws and policies across many countries. Nonetheless, some legal scholars have scrutinised and questioned this single-minded perspective, emphasising the impact of existing institutional conditions and calling for an alternative understanding of corporate governance dynamics in different SOEs. Notwithstanding a vigorous debate on SOEs, it almost exclusively focuses on China, while Russia, being another large state-driven economy, has been missing. This article fills this gap and offers a comparative and critical perspective on the state ownership system in Russia. The analysis of Russian SOEs reveals classic governance and incentive problems attributable to state ownership. However, the question is how despite close affiliation to the State and high transaction costs caused by state interference, Russian SOEs have gained a substantial international market presence. This article answers this paradox.
  • ItemOpen Access
    PUTTING CUSTOMER SERVICE AT RISK: WHY AND WHEN FAMILY OSTRACISM RELATES TO CUSTOMER-ORIENTED BEHAVIORS
    (International Journal of Hospitality Management, 2022) Rahaman, H M Saidur; Kwan, Ho Kwong; Babalola, Mayowa T.; Chen, Haixiao
    This study examines why and when family ostracism can have an adverse effect on employees’ customer service behaviors. Drawing on self-determination theory (SDT), we theorize the existence of moderated multi-mediation relationships between family ostracism and employees’ customer service behaviors (i.e., customer-oriented organizational citizenship behaviors and customer-oriented voice behaviors) through harmonious passion for work and customer orientation, with social skills playing a moderating role. We used a time-lagged design to collect data from service employees in China. Our results show that controlling for workplace ostracism at Time 1, the relationship between family ostracism and employees’ customer service behaviors is negative and serially mediated by both harmonious passion for work and customer orientation. Furthermore, employees who are less socially skilled are more prone to the adverse effects of family ostracism. Last, female employees are more vulnerable to the effects of family ostracism on their customer service.
  • ItemOpen Access
    BRINGING EXCITEMENT TO EMPIRICAL BUSINESS ETHICS RESEARCH: THOUGHTS ON THE FUTURE OF BUSINESS ETHICS
    (Journal of Business Ethics, 2022-09-15) Babalola, Mayowa T.; Bal, Matthijs; Cho, Charles H.; Garcia‑Lorenzo, Lucia; Guedhami, Omrane; Liang, Hao; Shailer, Greg; Gils, Suzanne van
    To commemorate 40 years since the founding of the Journal of Business Ethics, the editors-in-chief of the journal have invited the editors to provide commentaries on the future of business ethics. This essay comprises a selection of commentaries aimed at creating dialog around the theme Bringing Excitement to Empirical Business Ethics Research (inspired by the title of the commentary by Babalola and van Gils). These editors, considering the diversity of empirical approaches in business ethics, envisage a future in which quantitative business ethics research is more bold and innovative, as well as reflexive about its techniques, and dialog between quantitative and qualitative research nourishes the enrichment of both. In their commentary, Babalola and van Gils argue that leadership research has stagnated with the use of too narrow a range of perspectives and methods and too many overlapping concepts. They propose that novel insights could be achieved by investigating the lived experience of leadership (through interviews, document analysis, archival data); by focusing on topics of concern to society; by employing different personal, philosophical, or cultural perspectives; and by turning the lens on the heroic leader (through “dark-side” and follower studies). Taking a provocative stance, Bal and Garcia-Lorenzo argue that we need radical voices in current times to enable a better understanding of the psychology underlying ethical transformations. Psychology can support business ethics by not shying away from grander ideas, going beyond the margins of “unethical behaviors harming the organization” and expanding the range of lenses used to studying behavior in context. In the arena of finance and business ethics, Guedhami, Liang, and Shailer emphasize novel data sets and innovative methods. Significantly, they stress that an understanding the intersection of finance and ethics is central to business ethics; financial equality and inclusion are persistent socio-economic and political concerns that are not always framed as ethics issues, yet relevant business policies and practices manifest ethical values. Finally, Charles Cho offers his opinion on the blurry line between the “ethical” versus “social” or “critical” aspects of accounting papers. The Journal of Business Ethics provides fertile ground for innovative, even radical, approaches to quantitative methods (see Zyphur and Pierides in J Bus Ethics 143(1):1–16, https://doi.org/10.1007/s10551-017-3549-8, 2017), as part of a broad goal of ethically reflecting on empirical research.
  • ItemOpen Access
    MISPRICED INDEX OPTION PORTFOLIOS
    (Financial Management, 2019) Constantinides, George M.; Czerwonko, Michal; Perrakis, Stylianos
    In model-free out-of-sample tests, we find that the optimal portfo lio of a utility maximizing investor trading in the S&P500 Index, cash, and index options bought at ask and written at bid prices stochas tically dominates the optimal portfolio without options and yields returns with higher mean and lower volatility in most months from 1990 to 2013. Unlike earlier claims of overpriced puts, our portfolios include mostly short calls and are particularly profitable when matu rity is short and volatility is high. Similar results are obtained with the CAC and DAX indices. Neither priced factors nor a nonmonotonic stochastic discount factor explains the excess returns.
  • ItemOpen Access
    RULE-MAKING, RULE-TAKING OR RULE-REJECTING UNDER THE BELT AND ROAD INITIATIVE: A CENTRAL ASIAN PERSPECTIVE
    (The Chinese Journal of Comparative Law, 2020-05-21) Nurgozhayeva, Roza
    Since the Belt and Road Initiative (BRI) was announced in 2013, China’s expanding economic, geopolitical, and business presence demonstrates its eagerness to play a more significant role in the systems of international governance and law. The BRI’s scale and influence have captured immense attention among politicians, policymakers, experts, and academics. They offer numerous interpretations of the BRI’s global and regional impact. If China claims to be a stakeholder in the international system, what are the implications for the legal systems of the BRI countries and their governance systems? To what extent does the BRI lead to the expansion of China’s institutions and legal norms? How can the BRI countries ensure that their interests in BRI projects are adequately protected? This article analyses the Central Asian perspective on the BRI. Central Asia and Kazakhstan, in particular, have strategic relevance to the BRI. Remarkably, the BRI was launched during the visit of President Xi Jinping to Kazakhstan, which means that Kazakhstan plays a critical transit role as China’s pivot to Europe. Although the BRI is an ambitious global strategy, it has provoked much criticism, especially in liberal countries. Despite China’s efforts to promote the BRI as a win–win endeavour, China’s increased economic and political influence has already led to heightened scrutiny of its role in shaping ideology, economic development, and the legal and institutional landscapes. While many academic publications address different perspectives of the BRI, the context behind BRI projects requires further attention. This article contributes to the literature by studying BRI projects in Kazakhstan and their legal framework and governance.
  • ItemOpen Access
    WHERE DOES CORPORATE SOCIAL CAPITAL MATTER THE MOST? EVIDENCE FROM THE COVID-19 CRISIS
    (Finance Research Letters, 2021-11-10) Fiordelisi, Franco; Galloppo, Giuseppe; Lattanzio, Gabriele
    Firms with high social capital systematically outperform their peers during periods of economic distress. Yet, it is not clear under which institutional conditions corporate social capital is the most valuable to shareholders. By studying the performance of 1,789 firms in 27 countries during the initial phases of the COVID-19 pandemic, we document that the resilience effect of social capital is heterogeneous across countries. We identify the flexibility of a country's labor market as a critical determinant of corporate's returns on social capital-related investments. These findings are consistent with social capital hedging firms against systematic shocks by mitigating employee-related litigation risk.
  • ItemOpen Access
    HOW LOCKDOWN CAUSES A MISSING GENERATION OF START UPS AND JOBS
    (International Economics and Economic Policy, 2021-08-21) Karimov, Shyngys; Konings, Jozef
    This paper explores the impact of the COVID-19 lockdown on aggregate employment in Belgium. To this end, we use microdata of all Belgian frms and apply a machine learning-based approach to simulate the impact of the lockdown on employment growth under various economic scenarios. In doing so, we distinguish between start-ups and incumbent frms with both short and long-term efects. In the short term, we expect to see signifcant losses of employment coming mainly from mature incumbent frms. In the long term, the missing generation of start-ups formed during the lockdown will have a signifcant and growing efect of slowing down the employment growth even a decade after the lockdown.
  • ItemOpen Access
    BUILDING COHESIVE TEAMS—THE ROLE OF LEADERS’ BOTTOM-LINE MENTALITY AND BEHAVIOR
    (Sustainability, 2021-07-19) Riisla, Katrin; Wendt, Hein; Babalola, Mayowa T.; Euwema, Martin
    Team cohesiveness plays a crucial role in effective teamwork, innovation, and improved performance, and as such, its development among team members is an essential part of team management. However, it may be disregarded by leaders with a high bottom-line mentality (BLM; a single-minded focus on the bottom line at the expense of other values or priorities). These leaders may show little interest in other priorities, such as ethical, social, or environmental considerations, and may be tempted to push their followers to go above and beyond what is expected, even if it means bending the rules, cutting corners, or engaging in other ethically problematic behaviors. We argue that although a team leader’s BLM may motivate followers to come together around the pursuit of a common goal, it may come at the expense of nurturing healthy interpersonal relationships, trust, and other important social resources within the team. Specifically, we argue that the way leaders with a high BLM approach their goals may affect team cohesiveness, and that it is particularly negative for female leaders. Using a large multi-national study, we found that this happens through increased directive and lowered participative leader behaviors.
  • ItemOpen Access
    BUILDING CHARACTER: THE FORMATION OF A HYBRID ORGANIZATIONAL IDENTITY IN A SOCIAL ENTERPRISE
    (Wiley, 2020-09) Cornelissen, Joep P.; Akemu, Ona; Jonkman, Jeroen G. F.; Werner, Mirjam D.
    The formation of a hybrid organizational identity is a significant challenge for many social enterprises. Drawing on in-depth longitudinal data from the first three years of a successful social enterprise – Fairphone, founded in Amsterdam – we induce an empirically grounded theoretical model of how a hybrid organizational identity is formed. We identify a general process of organizational identity formation, with founders, leaders and members experimenting with different organizational characters describing ‘who they are’ as well as with alternative social impact strategies defining ‘what they do’. As part of this experimental process, we elaborate the role of a key leadership process – ‘rekeying’, which involves leaders re-figuring prior understandings into more dual readings – which we found facilitates ongoing adaptation and helps members of the organization to become progressively better able at combining multiple objectives and values as part of a shared hybrid identity. Our theoretical model of hybrid organizational identity formation has a number of direct implications for ongoing research on organizational identity formation and hybrid organizations.
  • ItemOpen Access
    Confronting the Digital: Doing Ethnography in Modern Organizational Settings
    (SAGE Publications, 2020-04-01) Akemu, Onajomo; Abdelnour, Samer
    Digital technologies pervade modern life. As a result, organizational ethnographers must contend with informants interacting in face-to-face and digitally mediated encounters (e.g., through email, Facebook Messenger, and Skype). This overlap of informants’ digital and physical interactions challenges ethnographers’ ability to demonstrate authenticity and multivocality in their accounts of contemporary organizing. Drawing on recent theorizing about the nature of digital artifacts and two cases of ethnographic fieldwork, we argue that digital artifacts afford ethnographers different modes of being co-present with research participants: digital as archive and digital as process. We offer guidelines to researchers on how to deploy these modes of co-presence in order to improve authenticity and multivocality in ethnographic studies of modern organizations. We also explore the implications for methodological concerns such as ethics, analytical choice, and reflexivity.
  • ItemOpen Access
    Stochastic Spanning
    (AMER STATISTICAL ASSOC, 2018) Arvanitis, Stelios; Hallam, Mark; Post, Thierry; Topaloglou, Nikolas
    This study develops and implements methods for determining whether introducing new securities or relaxing investment constraints improves the investment opportunity set for all risk averse investors. We develop a test procedure for “stochastic spanning” for two nested portfolio sets based on subsampling and linear programming. The test is statistically consistent and asymptotically exact for a class of weakly dependent processes. A Monte Carlo simulation experiment shows good statistical size and power properties in finite samples of realistic dimensions. In an application to standard datasets of historical stock market returns, we accept market portfolio efficiency but reject two-fund separation, which suggests an important role for higher-order moment risk in portfolio theory and asset pricing. Supplementary materials for this article are available online.
  • ItemOpen Access
    Numerical solution of an inverse problem of determining the parameters of a source of groundwater pollution
    (Eurasian Journal of Mathematical and Computer Applications, 2017-01-01) Turganbayev, Y. M.; Karchevsky, A. L.,; Rakhmetullina, S. J.; Beldeubayeva, Z. H.T.
    The article deals with an inverse problem of determining parameters of groundwater pollution sources. We test three ways to solve the problem on the simulated data for a simple case of contamination. We discover that, in the presence of noise in the data of the inverse problem, the first method does not produce satisfactory recovery results, while the second and third ones are comparable in accuracy of the recovery of required parameters. Taking into account the ease of implementation, the speed of computing and parallelization feasibility the second method of solving the inverse problem is found to be most preferable. We also propose a method of finding pollution parameters in general case...
  • ItemOpen Access
    Зачем рынкам нужно «созидательное разрушение»
    (Капитал, 2017-11-27) Йохец (Jochec), Марек (Marek)
    Недавно я побывал на одной конференции и встретил там бельгийского профессора из Брюсселя. Он поинтересовался о жизни в Чешской Республике (моей родине, где состоялась конференция). А узнав, что теперь я работаю в Казахстане, ему было интересно узнать и о жизни там. Поскольку оба мы экономисты, вскоре наш разговор перешел к экономике. Можно ли достойно жить в текущей глобальной экономической ситуации? Есть ли у людей работа, обеспечивающая достаточный доход? Снижаются ли уровень и качество жизни, как это происходит (по его словам) в Бельгии?...
  • ItemOpen Access
    Размышления о бюрократии. Проблема с бюрократией остается острой.
    (Капитал, 2018-01-28) Йохец (Jochec), Марек (Marek)
    В повседневной жизни и на работе я нередко сталкиваюсь с бюрократией. Также слышу от людей, работающих в различных организациях Казахстана, что проблема с бюрократией остается острой. И не я один замечаю это. Менеджмент гуру Ицхак Адизес подметил ту же проблему в своем интервью, опубликованном под названием «Как избавить Самрук от бюрократии» (National Business, май 2017 г.).
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    An empirical investigation of the antecedents of partnering capability
    (International Journal of Production Economics, 2016-08-01) Colicev, Anatoli; De Giovanni, Pietro; Vinzi, Vincenzo Esposito; Anatoli, Colicev
    Abstract In this paper, we propose a new approach to evaluating firms’ Partnering Capability. While previous research treats Partnering Capability as an exogenous factor, we take into account its antecedents and thus conceive it as endogenous. Our motivations are driven by the fact that firms ex-ante evaluate their partners by assessing their Partnering Capability. We focus on departmental integration, customer service, and economic and operational performance as key antecedents of Partnering Capability. Our empirical findings show that Partnering Capability is directly induced by operational performance and departmental integration. In addition, customer service along with departmental integration generates a chain of indirect effects due to economic and operational performance. Finally, we investigate the importance-performance matrix analysis (IMPA) that further identifies the managerial levers to enhance Partnering Capability.
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    Higher-degree stochastic dominance optimality and efficiency
    (European Journal of Operational Research, 2017-09-16) Fang, Yi; Post, Thierry; Yi, Fang
    Abstract We characterize a range of Stochastic Dominance (SD) relations by means of finite systems of convex inequalities. For ‘SD optimality’ of degree 1 to 4 and ‘SD efficiency’ of degree 2 to 5, we obtain exact systems that can be implemented using Linear Programming or Convex Quadratic Programming. For SD optimality of degree five and higher, and SD efficiency of degree six and higher, we obtain necessary conditions. We use separate model variables for the values of the derivatives of all relevant orders at all relevant outcome levels, which allows for preference restrictions beyond the standard sign restrictions. Our systems of inequalities can be interpreted in terms of piecewise polynomial utility functions with a number of pieces that increases with the number of outcomes and the degree of SD. An empirical study analyzes the relevance of higher-order risk preferences for comparing a passive stock market index with actively managed stock portfolios in standard data sets from the empirical asset pricing literature.
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    Strategic Implications of Keeping Product Value Secret from Competitor’s Customers
    (Journal of Retailing, 2017-09-01) Harutyunyan, Mushegh; Jiang, Baojun; Mushegh, Harutyunyan
    Abstract Customers can sometimes learn unanticipated or hidden use value of a firm’s product whereas the non-customers remain uninformed about that extra value. A monopolist will increase its profit by informing the non-customers of its product’s hidden value. However, our analysis reveals that this may not be true when the firm faces competition in the market—the firm may actually make a higher profit if it keeps its hidden value secret from its competitor’s customers even if advertising to inform those customers is costless. This is because no advertising leads to information heterogeneity among consumers about the existence of the firm’s hidden value, which gives an incentive for both firms to continue targeting their own existing customers rather than poaching each other’s customers, alleviating price competition and increasing firms’ profits. This beneficial strategic effect of keeping some product value secret from the competitor’s customers can persist even when the firms anticipate the hidden value and compete more aggressively for customers in the early period. Our research suggests that firms can benefit from an “under-promise and over-deliver” strategy if they refrain from communicating their extra value to the competitor’s customers. Moreover, positive word of mouth about a firm’s product will not necessarily benefit the firm and can in fact make all firms worse off.