When do incentives work in channels of distribution?

The incentive dilemma refers to a situation in which incentives are offered but do not work as intended. The authors suggest that, in an interorganizational context, whether a principal-provided incentive works is a function of how it is evaluated by an agent: for its contribution to the agent's bottom line (instrumental evaluation) and for the extent it is strategically aligned with the agent's direction (congruence evaluation). To further understand when incentives work, the influence of two key contextual variables-industry volatility and dependence-are examined. A field study featuring 57 semi-structured depth interviews and 386 responses from twin surveys in the information technology and brewing industries provide data for hypothesis testing. When and whether incentives work is demonstrated by certain conditions under which the agent's evaluation of an incentive has positive or negative effects on its compliance and active representation. Further, some outcomes are reversed in the high volatility condition. © 2013 Academy of Marketing Science.

The Role of Leadership Style in Employee Engagement

This paper explores the relationship between leadership styles and engagement in the workplace. The competitive global markets are forcing organizations to look past their products and the bottom line and move beyond just employee motivation and towards having an engaged workforce.

Ethics, Value Systems And The Professionalization Of Hoteliers

In the discussion - Ethics, Value Systems And The Professionalization Of Hoteliers by K. Michael Haywood, Associate Professor, School of Hotel and Food Administration, University of Guelph, Haywood initially presents: “Hoteliers and executives in other service industries should realize that the foundation of success in their businesses is based upon personal and corporate value systems and steady commitment to excellence. The author illustrates how ethical issues and manager morality are linked to, and shaped by the values of executives and the organization, and how improved professionalism can only be achieved through the adoption of a value system that rewards contributions rather than the mere attainment of results.” The bottom line of this discussion is, how does the hotel industry reconcile its behavior with that of public perception? “The time has come for hoteliers to examine their own standards of ethics, value systems, and professionalism,” Haywood says. And it is ethics that are at the center of this issue; Haywood holds that component in an estimable position. “Hoteliers must become value-driven,” advises Haywood. “They must be committed to excellence both in actualizing their best potentialities and in excelling in all they do. In other words, the professionalization of the hotelier can be achieved through a high degree of self-control, internalized values, codes of ethics, and related socialization processes,” he expands. “Serious ethical issues exist for hoteliers as well as for many business people and professionals in positions of responsibility,” Haywood alludes in defining some inter-industry problems. “The acceptance of kickbacks and gifts from suppliers, the hiding of income from taxation authorities, the lack of interest in installing and maintaining proper safety and security systems, and the raiding of competitors' staffs are common practices,” he offers, with the reasoning that if these problems can occur within ranks, then there is going to be a negative backlash in the public/client arena as well. Haywood divides the key principles of his thesis statement - ethics, value systems, and professionalism – into specific elements, and then continues to broaden the scope of each element. Promotion, product/service, and pricing are additional key components in Haywood’s discussion, and he addresses each with verve and vitality. Haywood references the four character types - craftsmen, jungle fighters, company men, and gamesmen – via a citation to Michael Maccoby, in the portion of the discussion dedicated to morality and success. Haywood closes with a series of questions derived from Lawrence Miller's American Spirit, Visions of a New Corporate Culture, each question designed to focus, shape, and organize management's attention to the values that Miller sets forth in his piece.

Managing Quality in the Hospitality Industry:

In - Managing Quality In the Hospitality Industry – an observation by W. Gerald Glover, Associate Professor, Hospitality Management Program, Appalachian State University, initially Glover establishes: “Quality is a primary concern in the hospitality industry. The author sees problems in the nature of the way businesses are managed and discusses approaches to ensuring quality in corporate cultures.” As the title suggests, the author wants to point out certain discrepancies in hospitality quality control, as well as enlighten you as to how to address some of these concerns. “A discussion of quality presents some interesting dilemmas. Quality is something that almost everyone wants,” Assistant Professor Glover notes. “Service businesses will never admit that they don't provide it to their customers, and few people actually understand what it takes to make it happen,” he further maintains. Glover wants you to know that in a dynamic industry such as hospitality, quality is the common denominator. Whether it be hotel, restaurant, airline, et al., quality is the raison d’être of the industry. “Quality involves the consistent delivery of a product or service according to the expected standards,” Glover provides. Many, if not all quality deficiencies can be traced back to management, Glover declares. He bullet points some of the operational and guest service problems managers’ face on a daily basis. One important point of note is the measuring and managing of quality. “Standards management is another critical area in people and product management that is seldom effective in corporations,” says Glover. “Typically, this area involves performance documentation, performance evaluation and appraisal, coaching, discipline, and team-building.” “To be effective at managing standards, an organization must establish communication in realms where it is currently non-existent or ineffective,” Glover goes on to say. “Coaching, training, and performance appraisal are methods to manage individuals who are expected to do what's expected.” He alludes to the benefit quality circles supply as well. In addressing American organizational behavior, Glover postures, “…a realization must develop that people and product management are the primary influences on generating revenues and eventually influencing the bottom line in all American organizations.” Glover introduces the concept of pro-activity. “Most recently, quality assurance and quality management have become the means used to develop and maintain proactive corporate cultures. When prevention is the focus, quality is most consistent and expectations are usually met,” he offers. Much of the article is dedicated to, “Appendix A-Table 1-Characteristics of Corporate Cultures (Reactive and Proactive. In it, Glover measures the impact of proactive management as opposed to the reactive management intrinsic to many elements of corporate culture mentality.

A Flow-Through Analysis of the US Lodging Industry During the Great Recession

Purpose – The objective of this exploratory study is to investigate the “flow-through” or relationship between top-line measures of hotel operating performance (occupancy, average daily rate and revenue per available room) and bottom-line measures of profitability (gross operating profit and net operating income), before and during the recent great recession. Design/methodology/approach – This study uses data provided by PKF Hospitality Research for the period from 2007-2009. A total of 714 hotels were analyzed and various top-line and bottom-line profitability changes were computed using both absolute levels and percentages. Multiple regression analysis was used to examine the relationship between top and bottom line measures, and to derive flow-through ratios. Findings – The results show that average daily rate (ADR) and occupancy are significantly and positively related to gross operating profit per available room (GOPPAR) and net operating income per available room (NOIPAR). The evidence indicates that ADR, rather than occupancy, appears to be the stronger predictor and better measure of RevPAR growth and bottom-line profitability. The correlations and explained variances are also higher than those reported in prior research. Flow-through ratios range between 1.83 and 1.91 for NOIPAR, and between 1.55 and 1.65 for GOPPAR, across all chain-scales. Research limitations/implications – Limitations of this study include the limited number of years in the study period, limited number of hotels in a competitive set, and self-selection of hotels by the researchers. Practical implications – While ADR and occupancy work in combination to drive profitability, the authors' study shows that ADR is the stronger predictor of profitability. Hotel managers can use flow-through ratios to make financial forecasts, or use them as inputs in valuation models, to forecast future profitability. Originality/value – This paper extends prior research on the relationship between top-line measures and bottom-line profitability and serves to inform lodging owners, operators and asset managers about flow-through ratios, and how these ratios impact hotel profitability.

The Influence of Table Top Technology in Full-service Restaurants

The use of tabletop technology continues to grow in the restaurant industry, and this study identifies the strengths and weakness of the technology, how it influences customers, and how it can improve the bottom line for managers and business owners. Results from two studies involving a full-service casual dining chain show that dining time was significantly reduced among patrons who used the tabletop hardware to order or pay for their meals, as was the time required for servers to meet the needs of customers. Also, those who used the devices to order a meal tended to spend more than those who did not. Patrons across the industry have embraced guest-facing technology, such as online reservation systems, mobile apps, payment apps, and tablet-based systems, and may in fact look for such technology when deciding where to dine. Guests’ reactions have been overwhelmingly positive, with 70 to 80 percent of consumers citing the benefits of guest-facing technology and applications. The introduction of tabletop technology in the full-service segment has been slower than in quick-service restaurants (QSRs), and guests cite online reservation systems, online ordering, and tableside payment as preferred technologies. Restaurant operators have also cited benefits of guest-facing technology, for example, the use of electronic ordering, which led to increased sales as such systems can induce the purchase of more expensive menu items and side dishes while allowing managers to store order and payment information for future transactions. Researchers have also noted the cost of the technology and potential problems with integration into other systems as two main factors blocking adoption.

Interest rate (in)sensitivity of emerging market corporate debt : economic analysis based on 2002-2015 empirical evidence

Interest rate sensitivity assessment framework based on fixed income yield indexes is developed and applied to two types of emerging market corporate debt: investment grade and high yield exposures. Our research advances beyond the correlation analyses focused on co- movements in yields and/or spreads of risky and risk-free assets. We show that correlation- based analyses of interest rate sensitivity could appear rather inconclusive and, hence, we investigate the bottom line profit and loss of a hypothetical model portfolio of corporates. We consider historical data covering the period 2002 – 2015, which enable us to assess interest rate sensitivity of assets during the development, the apogee, and the aftermath of the global financial crisis. Based on empirical evidence, both for investment and speculative grades securities, we find that the emerging market corporates exhibit two different regimes of sensitivity to interest rate changes. We observe switching from a positive sensitivity under the normal market conditions to a negative one during distressed phases of business cycles. This research sheds light on how financial institutions may approach interest rate risk management, evidencing that even plain vanilla portfolios of emerging market corporates, which on average could appear rather insensitive to the interest rate risk in fact present a binary behavior of their interest rate sensitivities. Our findings allow banks and financial institutions for optimizing economic capital under Basel III regulatory capital rules.

The moderating role of firm age in the relationship between R&D expenditure and financial performance: evidence from Chinese and US mining firms

We examine the impact of Research and Development (R&D) on the profitability and sales of mining firms in China and the United States (US) and the moderating effect of firm age using Coarsened Exact Matching (CEM). For the combined panel of 168 major US and Chinese mining firms, we find that, on average, a firm engaging in R&D activities earns 4% to 11% higher sales and generates 4% to 13% more profits than firms that do not engage in R&D activities. We also show that, in the mining industry, firm age moderates the relationship between R&D activities and financial performance. A comparatively mature R&D active firm earns 4.4% more profit and generates 7.2% more sales than a younger non-innovative firm. The turning point at which R&D activities switch from making a negative, to positive, contribution to profit and sales is 37 years and 22 years, respectively. Our results are consistentwith the liability of newness, meaning that firm investment in R&D takes time to have a real impact on bottom line measures of financial performance. We conclude with a discussion of the practical implications of our results for Chinese and US mining firms.

Descripción de funcionamiento del área de sostenibilidad en Colombia caso de estudio Bancolombia

La Responsabilidad Social Empresarial renueva la concepción de la empresa, otorgando a ésta una dimensión amplia e integradora, que va más allá de la cuestión económica en la que se incorpora perfectamente la triple faceta de la sostenibilidad: económica, social y medioambiental. El término Responsabilidad Social Corporativa ha sido definido “La RSE es la integración voluntaria, por parte de las empresas, de las preocupaciones sociales y ambientales en sus operaciones comerciales y en sus relaciones con sus interlocutores”.

Liderazgo Responsable: Una revisión de la literatura

El objetivo del presente artículo es profundizar en los conceptos de liderazgo responsable y responsabilidad social empresarial, basándose en un marco referencial y bibliográfico pertinente para la investigación. Para ello, se realizó una exhaustiva búsqueda de referencias bibliográficas, tales como artículos científicos, publicaciones académicas y estudios de caso, que ayudaron a dar un acercamiento conceptual al tema principal. Se encontraron diferentes aproximaciones conceptuales sobre el liderazgo responsable y la importancia que tiene en términos de responsabilidad social, algunas teorías del liderazgo, estilos de liderazgo responsable, la satisfacción laboral y por ultimo una serie de casos empresariales que ponen estos conceptos en práctica.

Corporate sustainability reporting of major commercial banks in line with GRI : Bangladesh evidence

Purpose – This paper aims to examine the tendencies of sustainability reporting by major commercial banks in Bangladesh in comparison with global sustainability reporting indicators outlined in the GRI framework together with banks' predilection toward reporting 16 GRI financial service sector (FSS) specific performance indicators. Design/methodology/approach – Based on the GRI G3 guidelines, the paper investigated banks' reporting in five broad areas of sustainability, such as environment, labour practices and decent works, product responsibility, human rights and society. The 2008/2009 annual reports of 12 major commercial banks listed on Dhaka stock exchange were analysed and coded using a content-based technique. Findings – The results show that information on society is addressed most extensively with regard to extent of reporting. This is followed by the disclosures prepared on decent works and labour practices and environmental issues. Furthermore, the disclosures of product responsibility information and the information for human rights are rather scarce in banks' reporting; on the subject of FSS-specific disclosures, only seven items out of 16 are disclosed by all sample banks. Research limitations/implications – The findings of the study indicate that Bangladeshi commercial banks' social disclosures could develop in this style to become more holistic and over time (in association with the country's central bank involvement) to resemble a type of structured reporting to the point where they are properly labelled per se. Originality/value – The study contributes to the social disclosure literature, in particular in a developing countries banking sector context, seeing as it disseminates evidence of the standing on social disclosures practices at the level of GRI with developing countries' banks data.

Descriptions of the U.S. Gulf of Mexico Reef Fish Bottom Longline and Vertical Line Fisheries Based on Observer Data

In July 2006, a mandatory observer program was implemented to characterize the commercial reef fish fishery operating in the U.S. Gulf of Mexico. The primary gear types assessed included bottom longline and vertical line (bandit and handline). A total of 73,205 fish (183 taxa) were observed in the longline fishery. Most (66%) were red grouper, Epinephelus morio, and yellowedge grouper, E. flavolimbatus. In the vertical line fishery, 89,015 fish (178 taxa) were observed of which most (60%) were red snapper, Lutjanus campechanus, and vermilion snapper, Rhomboplites aurorubens. Based on surface observations of discarded under-sized target and unwanted species, the majority of fish were released alive; minimum assumed mortality was 23% for the vertical line and 24% for the bottom longline fishery. Of the individuals released alive in the longline fishery, 42% had visual signs of barotrauma stress (air bladder expansion/and or eyes protruding). In the vertical line fishery, 35% of the fish were released in a stressed state. Red grouper and red snapper size composition by depth and gear type were determined. Catch-per-unit-effort for dominant species in both fisheries, illustrated spatial differences in distribution between the eastern and western Gulf. Hot Spot Analyses for red grouper and red snapper identified areas with significant clustering of high or low CPUE values.

Socio-economic and marketing aspects of Laila and Bottom Long Line fisheries in the Kalpitiya peninsula of Sri Lanka

Surrounding Net Fishery (laila) and Bottom Long Line Fishery which operate in the coastal waters of Kalpitiya Peninsula, compete for the same fish resources, resulting in a fishery dispute between the respective fishermen. Both fisheries target demersal as well as mid pelagic fishes, such as travellys (parava), mullets (galmalu) and barracudas (ulava). As the dispute had an adverse impact on the social harmony in the fishing community of the area, a socio-economic survey was conducted to study the underlying factors and to suggest policy measures to resolve the issue. The laila fishermen were resident fishermen in the Kalpitiya Peninsula while bottom long line fishermen were migratory fishermen from Negombo and Chilaw areas in the west coast of Sri Lanka. The Kalpitiya peninsula is located in the North West coast, some 50 km away from the west coast. Although the educational level and literacy rate of the laila community was below that of the bottom long line community, the laila community was economically better off. The net economic returns from laila fishery were superior to that from bottom long line fishery. The boat owner's and crew's share per operation of laila fishery were Rs.3,736 and Rs.947 respectively. The same figures for bottom long line fishery were Rs.588 and Rs.327 respectively. The resource rent from laila fishery was Rs.5,860, however, and much higher than that for bottom long line fishery (Rs.275), showing that the laila fishery exploits the targeted fish resource at a much higher rate compared to bottom long line fishery. This situation badly affects the equitable distribution of resources between the two fishing communities and results in unequal economic gains. Based on the findings of this study, certain input/output controls are proposed to address this problem, among which is the need to increase license fee for laila fishery units to offset the higher exploitation rate of fish resources.

Corporate sustainability reporting of major commercial banks in line with GRI : Bangladesh evidence

Purpose – This paper aims to examine the tendencies of sustainability reporting by major commercial banks in Bangladesh in comparison with global sustainability reporting indicators outlined in the GRI framework together with banks' predilection toward reporting 16 GRI financial service sector (FSS) specific performance indicators.

Design/methodology/approach – Based on the GRI G3 guidelines, the paper investigated banks' reporting in five broad areas of sustainability, such as environment, labour practices and decent works, product responsibility, human rights and society. The 2008/2009 annual reports of 12 major commercial banks listed on Dhaka stock exchange were analysed and coded using a content-based technique.

Findings – The results show that information on society is addressed most extensively with regard to extent of reporting. This is followed by the disclosures prepared on decent works and labour practices and environmental issues. Furthermore, the disclosures of product responsibility information and the information for human rights are rather scarce in banks' reporting; on the subject of FSS-specific disclosures, only seven items out of 16 are disclosed by all sample banks.

Research limitations/implications – The findings of the study indicate that Bangladeshi commercial banks' social disclosures could develop in this style to become more holistic and over time (in association with the country's central bank involvement) to resemble a type of structured reporting to the point where they are properly labelled per se.

Originality/value – The study contributes to the social disclosure literature, in particular in a developing countries banking sector context, seeing as it disseminates evidence of the standing on social disclosures practices at the level of GRI with developing countries' banks data.