Trust and efficiency

Agency problems within the firm are a significant hindrance to efficiency. We propose trust between coworkers as a superior alternative to the standard tools used to mitigate agency problems: increased monitoring and incentive-based pay. We model trust as mutual, reciprocal altruism between pairs of coworkers and show how it induces employees to work harder, relative to those at firms that use the standard tools. In addition, we show that employees at trusting firms have higher job satisfaction, and that these firms enjoy lower labor cost and higher profits. We conclude by discussing how trust may also be easier to use within the firm than the standard agency-mitigation tools. © 2002 Elsevier Science B.V. All rights reserved.

Evolving brand-name and generic drug competition may warrant a revision of the Hatch-Waxman Act.

The evolution of pharmaceutical competition since Congress passed the Hatch-Waxman Act in 1984 raises questions about whether the act's intended balance of incentives for cost savings and continued innovation has been achieved. Generic drug usage and challenges to brand-name drugs' patents have increased markedly, resulting in greatly increased cost savings but also potentially reduced incentives for innovators. Congress should review whether Hatch-Waxman is achieving its intended purpose of balancing incentives for generics and innovation. It also should consider whether the law should be amended so that some of its provisions are brought more in line with recently enacted legislation governing approval of so-called biosimilars, or the corollary for biologics of generic competition for small-molecule drugs.

Does culture affect a brand's personality?

Global branding brings with it exposure to an increasingly culturally-diverse audience. Examples of Islamic finance products being consumed by non-Muslims, and designer labels being adopted, by those outside of their intended target audience; seem to suggest that brands are being shaped more and more by consumers. Within current literature on branding, and cross-cultural consumer behaviour; there appears to have emerged a difference of opinion - as to whether a consumer’s culture has any bearing on their decision making; or subsequent influence brand personalities. The purpose of this paper is to present existing evidence; as a basis for undertaking future research.

‘The Pinocchio Effect’ – when managing the brand creation process, across cultures

In global marketing and international management, the fields of Branding and Culture are well discussed as separate disciplines; within both academia and industry. However, there appears to be limited supporting literature, examining brands and culture as a collective discipline. In addition, environmental factors such as ethnicity, nationality and religion are also seen to play a significant role. This in itself adds to the challenges encountered, by those looking to critically apply learning and frameworks, to any information gathered. In the first instance, this paper tries to bring aspects together from Branding and Culture and in doing so, aims to find linkages between the two. The main purpose of this paper is to distil current brand thinking and explore what impact cross-cultural, cross-national, and ethnic interactions have on a brand’s creation. The position of the authors is that without further understanding in this field, a brand will experience what has been termed by them as the ‘Pinocchio Effect’. Pinocchio was a puppet who longed to become a real human being; but sadly encountered difficulties. The conclusion presented is that the critical long-term success of a brand lies in three areas: how it is created; the subsequent associated perceptions; and more specifically in the reality of the relationships that it enjoys. Collectively these processes necessitate an appraisal of connecting strategic management procedures and thinking. Finally, this paper looks into proposing future methods for brand evaluation and strategic management. The aim is to stimulate further thinking in a field; which transcends national, ethnic and cultural boundaries - in the interests of developing new insight, and to provide a platform for marketers to develop more effective communications.

Trust, leadership and economic necessity in post-compulsory education

Trust is a complex concept that has increasingly been debated in academic research (Kramer and Tyler, 1996). Research on 'trust and leadership' (Caldwell and Hayes, 2007) has suggested, unsurprisingly, that leadership behaviours influence 'follower' perceptions of leaders' trustworthiness. The development of 'ethical stewardship' amongst leaders may foster high trust situations (Caldwell, Hayes, Karri and Bernal, 2008), yet studies on the erosion of teacher professionalism in UK post-compulsory education have highlighted the distrust that arguably accompanies 'new managerialism', performativity and surveillance within a climate of economic rationalisation established by recent deterministic skills-focused government agendas for education (Avis, 2003; Codd, 1999, Deem, 2004, DFES, 2006). Given the shift from community to commercialism identified by Collinson and Collinson (2005) in a global economic environment characterised by uncertainty and rapid change, trust is, simultaneously, increasingly important and progressively both more fragile and limited in a post compulsory education sector dominated by skills-based targets and inspection demands. Building on such prior studies, this conference paper reports on the analysis of findings from a 2007-8 funded research study on 'trust and leadership' carried out in post-compulsory education. The research project collected and analysed case study interview and survey data from the lifelong learning sector, including selected tertiary, further and higher education (FE and HE) institutions. We interviewed 18 UK respondents from HE and FE, including principals, middle managers, first line managers, lecturers and researchers, supplementing and cross-checking this with a small number of survey responses (11) on 'trust and leadership' and a larger number (241) of survey responses on more generalised leadership issues in post-compulsory education. A range of facilitators and enablers of trust and their relationship to leadership were identified and investigated. The research analysed the ways in which interviewees defined the concept of 'trust' and the extent to which they identified that trust was a mediating factor affecting leadership and organisational performance. Prior literature indicates that trust involves a psychological state in which, despite dependency, risk and vulnerability, trustors have some degree of confident expectation that trustees will behave in benevolent rather than detrimental ways. The project confirmed the views of prior researchers (Mayer, Davis and Schoorman, 1995) that, since trust inevitably involves potential betrayal, estimations of leadership 'trustworthiness' are based on followers' cognitive and affective perceptions of the reliability, competence, benevolence and reputation of leaders. During the course of the interviews it also became clear that some interviewees were being managed in more or less transaction-focused, performative, audit-dominated cultures in which trust was not regarded as particularly important: while 'cautious trust' existed, collegiality flourished only marginally in small teams. Economic necessity and survival were key factors influencing leadership and employee behaviours, while an increasing distance was reported between senior managers and their staff. The paper reflects on the nature of the public sector leadership and management environment in post-compulsory education reported by interviewees and survey respondents. Leadership behaviours to build trust are recommended, including effective communication, honesty, integrity, authenticity, reliability and openness. It was generally felt that building trust was difficult in an educational environment largely determined by economic necessity and performativity. Yet, despite this, the researchers did identify a number of examples of high trust leadership situations that are worthy of emulation.

Cross-cultural partnerships must talk to build trust

Academic partnerships bring knowledge and drive economic growth, but success depends on good communications that build trust, says Tim Gore.

Investigating antecedents and consequences of brand identification

Purpose – This study aims to analyse the influences of prestige, satisfaction, and communication on brand identification and to show how brand identification influences word-of-mouth and brand repurchase. Design/methodology/approach – A theoretical model is developed and tested with a sample of car owners in the UK of two global car brands. Structural equation modelling was used with LISREL 8.54 and the maximum likelihood (ML) method. Findings – This paper draws mainly on the theory of social identity to provide a comprehensive understanding of conditions under which brand owners are likely to identify with their brand and the bases and consequences of such identification. It was shown that prestige, satisfaction, and communication effect brand identification. The study confirms that consumers' development of relationships via brand identification results in word of mouth about the brand and intentions to repurchase the brand. Furthermore, it was found that brand identification fully mediates the influences of prestige, satisfaction, and communication on word of mouth and brand repurchase. Research limitations/implications – The focus was on one country and one industry. Practical implications – Managers are provided with strategies that enhance the identification of their customers with their brand so that they can strengthen the customers' brand identification. Areas for future research are suggested. For instance, it could be interesting to test the model in a different industry and/or cultural context. Originality/value – Very few previous studies have looked at brand identification which is surprising considering it is such an important variable to influence word-of-mouth and brand repurchase. The study tests three antecedents to brand identification and two outcomes that have not been investigated previously. Overall, the study adds knowledge in this somewhat neglected area.

Can we trust simple marine DMS parameterisations within complex climate models?

Dimethylsulphide (DMS) is a globally important aerosol precurser. In 1987 Charlson and others proposed that an increase in DMS production by certain phytoplankton species in response to a warming climate could stimulate increased aerosol formation, increasing the lower-atmosphere's albedo, and promoting cooling. Despite two decades of research, the global significance of this negative climate feedback remains contentious. It is therefore imperative that schemes are developed and tested, which allow for the realistic incorporation of phytoplankton DMS production into Earth System models. Using these models we can investigate the DMS-climate feedback and reduce uncertainty surrounding projections of future climate. Here we examine two empirical DMS parameterisations within the context of an Earth System model and find them to perform marginally better than the standard DMS climatology at predicting observations from an independent global dataset. We then question whether parameterisations based on our present understanding of DMS production by phytoplankton, and simple enough to incorporate into global climate models, can be shown to enhance the future predictive capacity of those models. This is an important question to ask now, as results from increasingly complex Earth System models lead us into the 5th assessment of climate science by the Intergovernmental Panel on Climate Change. Comparing observed and predicted inter-annual variability, we suggest that future climate projections may underestimate the magnitude of surface ocean DMS change. Unfortunately this conclusion relies on a relatively small dataset, in which observed inter-annual variability may be exaggerated by biases in sample collection. We therefore encourage the observational community to make repeat measurements of sea-surface DMS concentrations an important focus, and highlight areas of apparent high inter-annual variability where sampling might be carried out. Finally, we assess future projections from two similarly valid empirical DMS schemes, and demonstrate contrasting results. We therefore conclude that the use of empirical DMS parameterisations within simulations of future climate should be undertaken only with careful appreciation of the caveats discussed.

Live discrimination of Calanus glacialis and C. finmarchicus females: can we trust phenological differences?

Two key players in the Arctic and subarctic marine ecosystem are the calanoid copepods, Calanus finmarchicus and C. glacialis. Although morphologically very similar, these sibling species have different life cycles and roles in the Arctic pelagic marine ecosystem. Considering that the distribution of C. glacialis corresponds to Arctic water masses and C. finmarchicus to Atlantic water masses, the species are frequently used as climate indicators. Consequently, correct identification of the two species is essential if we want to understand climate-impacted changes on Calanus-dominated marine ecosystems such as the Arctic. Here, we present a novel morphological character (redness) to distinguish live females of C. glacialis and C. finmarchicus and compare it to morphological (prosome length) and genetic identification. The characters are tested on 300 live females of C. glacialis and C. finmarchicus from Disko Bay, western Greenland. Our analysis confirms that length cannot be used as a stand-alone criterion for separation. The results based on the new morphological character were verified genetically using a single mitochondrial marker (16S) and nuclear loci (six microsatellites and 12 InDels). The pigmentation criterion was also used on individuals (n = 89) from Young Sound fjord, northeast Greenland to determine whether the technique was viable in different geographical locations. Genetic markers based on mitochondrial and nuclear loci were corroborative in their identification of individuals and revealed no hybrids. Molecular identification confirmed that live females of the two species from Greenlandic waters, both East and West, can easily be separated by the red pigmentation of the antenna and somites of C. glacialis in contrast to the pale opaque antenna and somites of C. finmarchicus, confirming that the pigmentation criterion is valid for separation of the two species