Market orientation, innovation capability and business performance:insights from the global financial crisis

Purpose - The paper aims to examine the role of market orientation (MO) and innovation capability in determining business performance during an economic upturn and downturn. Design/methodology/approach - The data comprise two national-level surveys conducted in Finland in 2008, representing an economic boom, and in 2010 when the global economic crisis had hit the Finnish market. Partial least square path analysis is used to test the potential mediating effect of innovation capability on the relationship between MO and business performance during economic boom and bust. Findings - The results show that innovation capability fully mediates the performance effects of a MO during an economic upturn, whereas the mediation is only partial during a downturn. Innovation capability also mediates the relationship between a customer orientation and business performance during an upturn, whereas the mediating effect culminates in a competitor orientation during a downturn. Thus, the role of innovation capability as a mediator between the individual market-orientation components varies along the business cycle. Originality/value - This paper is one of the first studies that empirically examine the impact of the economic cycle on the relationship between strategic marketing concepts, such as MO or innovation capability, and the firm's business performance.

Entrepreneurial intention and entrepreneurial behaviour:a social psychological perspective

Increasing the supply of entrepreneurs reduces unemployment and accelerates economic growth (Acs, 2006; Audretsch, 2007; Santarelli et el. 2009; Campbell, 1996; Carree & Thurik, 1996). The supply of entrepreneurs depends on the entrepreneurial intention and activity of the people (Kruger & Brazeal, 1994). Existing behavioural theories explain that entrepreneurial activity is an attitude driven process which is mediated by intention and regulated by behavioural control. These theories are: Theory of Planned Behaviour (Ajzen, 1991; 2002, 2012); Entrepreneurial Event Model (Shapiro & Shokol, 1982), and Social Cognitive Theory (Bandura, 1977; 1986; 2012). Meta-analysis of existing behavioural theories in different fields found that the theories are more effective to analyse behavioural intention and habitual behaviour, but less effective to analyse long-term and risky behaviour (McEachan et al., 2011). The objective of this dissertation is to improve entrepreneurship behaviour theory to advance our understanding of the determinants of the entrepreneurial intention and activity. To achieve this objective we asked three compelling questions in our research. These are: Firstly, why do differences exist in entrepreneurship among age groups. Secondly, how can we improve the theory to analyse entrepreneurial intention and behaviour? And, thirdly, is there any relationship between counterfactual or regretful thinking and entrepreneurial intention? We address these three questions in Chapters 2, 3 and 4 of the dissertation. Earlier studies have identified that there is an inverse U shaped relationship between age and entrepreneurship (Parker, 2004; Hart et al., 2004). In our study, we explain the reasons for this inverse U shape (Chapter 2). To analyse the reasons we use Cognitive Life Cycle theory and Disuse theory. We assume that the stage in the life cycle of an individual moderates the influence of opportunity identification and skill to start a business. In our study, we analyse the moderation effect in early stage entrepreneurship and in serial entrepreneurship. In Chapter 3, the limitations of existing psychological theories are discussed, and a competency value theory of entrepreneurship (CVTE) is proposed to overcome the limitations and extend existing theories. We use a ‘weighted competency’ variable instead of a ‘perceived behavioural control’ variable for the theory of planned behaviour (TPB) and self-efficacy variable for social cognitive theory. Weighted competency is the perceived competency ranking assigned by an individual for his total competencies to be an entrepreneur. The proposed theory was tested in a pilot survey in the UK and in a national adult population survey in a South Asian Country. The results show a significant relationship between competencies and entrepreneurial intention, and weighted competencies and entrepreneurial behaviour as per CVTE. To improve the theory further, in Chapter 4, we test the relationship between counterfactual thinking and entrepreneurial intention. Studies in cognitive psychology identify that ‘upward counterfactual thinking’ influences intention and behaviour (Epstude & Rose, 2008; Smallman & Roese, 2009). Upward counterfactual thinking is regretful thinking for missed opportunities of a problem. This study addresses the question of how an individual’s regretful thinking affects his or her future entrepreneurial career intention. To do so, we conducted a study among students in a business school in the UK, and we found that counterfactual thinking modifies the influence of attitude and opportunity identification in entrepreneurial career intention.

Le cycle hydrosocial et la fluoration de l'eau : la production des eaux fluorées

La fluoration artificielle de l’eau est une méthode employée en tant que moyen de prévention de la carie dentaire. Il s’agit d’un traitement de l’eau dont le but est d’ajuster de façon « optimale » la concentration en fluorure dans l’eau potable pour la prévention de la carie dentaire, par l’ajout d’un composé fluoré. La fluoration de l’eau fait l’objet d’un débat de société depuis le début des années 1950. La théorie du cycle hydrosocial nous invite à réfléchir sur la manière dont l’eau et la société se définissent et se redéfinissent mutuellement dans le temps et dans l’espace. Cette théorie nous permet d’aborder l’étude du sujet de la fluoration avec une nouvelle perspective d’analyse. Il y a peu d’études en sciences sociales qui portent sur le sujet de la fluoration, généralement abordé d’un point de vue des sciences de la santé. Nous proposons de décrire le processus de production des eaux fluorées dans un contexte hydrosocial. Ce mémoire est structuré en quatre chapitres. Nous commençons par familiariser le lecteur avec la théorie du cycle hydrosocial. Ensuite, nous faisons une mise en contexte de la fluoration de l’eau, d’une part en présentant un état des lieux, et d’autre part en présentant ce en quoi consiste la pratique de la fluoration de l’eau. Après avoir familiarisé le lecteur avec les thèmes généraux concernant la fluoration de l’eau, nous proposons de reconstituer une histoire hydrosociale de la fluoration. Cette histoire nous permet de mettre en évidence les relations hydrosociales desquelles découle la production des eaux fluorées. L’histoire hydrosociale de la fluoration comporte une phase contemporaine que nous abordons en présentant les principales idées de l’opposition à la fluoration artificielle de l’eau à l’aide notamment d’une analyse iconographique d’images portant sur le thème de la fluoration. Finalement, nous discutons des implications de la théorie du cycle hydrosocial pour étudier la problématique de la fluoration.

Social economy, youth and employment

Organizations of the Social Economy in Spain accounted for 13% of employment and 12% of GDP in 2013, according to the Spanish Confederation fo Social Economy. Also, according to various institutions and studies, the role of Social Economy has become relevant due to they represent a model promoting the creation of collective business projects with greater sustainability and potential than models of individual self-employment. However, despite all this, there are few academic studies or sectoral reports analyzing employment in this sector, especially in the case of youth employment. This study aims to fill this gap in the literature analyzing the scared available data in order to show the numbers and characteristics of youth employment in this sector. Results show the weight of youth employment in the Social Economy is higher than the economy overall.

What is social innovation? The paradigm shift and its relationship with Social Work

Innovation is a fundamental part of social work. In recent years there has been a shift in the innovation paradigm, making it easier to accept this relationship. National and supranational policies aimed at promoting innovation appear to be specifically guided by this idea. To be able to affirm this hypothesis, it is necessary to review the perception that social workers have of their duties. It is also useful to examine particular cases that show how such social innovation arises.

Le cycle hydrosocial et la fluoration de l'eau : la production des eaux fluorées

La fluoration artificielle de l’eau est une méthode employée en tant que moyen de prévention de la carie dentaire. Il s’agit d’un traitement de l’eau dont le but est d’ajuster de façon « optimale » la concentration en fluorure dans l’eau potable pour la prévention de la carie dentaire, par l’ajout d’un composé fluoré. La fluoration de l’eau fait l’objet d’un débat de société depuis le début des années 1950. La théorie du cycle hydrosocial nous invite à réfléchir sur la manière dont l’eau et la société se définissent et se redéfinissent mutuellement dans le temps et dans l’espace. Cette théorie nous permet d’aborder l’étude du sujet de la fluoration avec une nouvelle perspective d’analyse. Il y a peu d’études en sciences sociales qui portent sur le sujet de la fluoration, généralement abordé d’un point de vue des sciences de la santé. Nous proposons de décrire le processus de production des eaux fluorées dans un contexte hydrosocial. Ce mémoire est structuré en quatre chapitres. Nous commençons par familiariser le lecteur avec la théorie du cycle hydrosocial. Ensuite, nous faisons une mise en contexte de la fluoration de l’eau, d’une part en présentant un état des lieux, et d’autre part en présentant ce en quoi consiste la pratique de la fluoration de l’eau. Après avoir familiarisé le lecteur avec les thèmes généraux concernant la fluoration de l’eau, nous proposons de reconstituer une histoire hydrosociale de la fluoration. Cette histoire nous permet de mettre en évidence les relations hydrosociales desquelles découle la production des eaux fluorées. L’histoire hydrosociale de la fluoration comporte une phase contemporaine que nous abordons en présentant les principales idées de l’opposition à la fluoration artificielle de l’eau à l’aide notamment d’une analyse iconographique d’images portant sur le thème de la fluoration. Finalement, nous discutons des implications de la théorie du cycle hydrosocial pour étudier la problématique de la fluoration.

Credit risk & forward price models

Doutoramento em Gestão

Governed by the cycle : direct and inverted interest-rate sensitivity of emerging market corporate debt

An innovative approach to quantify interest rate sensitivities of emerging market corporates is proposed. Our focus is centered at price sensitivity of modeled investment grade and high yield portfolios to changes in the present value of modeled portfolios composed of safe-haven assets, which define risk-free interest rates. Our methodology is based on blended yield indexes. Modeled investment horizons are always kept above one year thus allowing to derive empirical implications for practical strategies of interest rate risk management in the banking book. As our study spans over the period 2002 – 2015, it covers interest rate sensitivity of assets under the pre-crisis, crisis, and post-crisis phases of the economic cycles. We demonstrate that the emerging market corporate bonds both, investment grade and high yield types, depending on the phase of a business cycle exhibit diverse regimes of sensitivity to interest rate changes. We observe switching from a direct positive sensitivity under the normal pre-crisis market conditions to an inverted negative sensitivity during distressed turmoil of the recent financial crisis, and than back to direct positive but weaker sensitivity under new normal post-crisis conjuncture. Our unusual blended yield-based approach allows us to present theoretical explanations of such phenomena from economics point of view and helps us to solve an old controversy regarding positive or negative responses of credit spreads to interest rates. We present numerical quantification of sensitivities, which corroborate with our conclusion that hedging of interest rate risk ought to be a dynamic process linked to the phases of business cycles as we evidence a binary-like behavior of interest rate sensitivities along the economic time. Our findings allow banks and financial institutions for approaching downside risk management and optimizing economic capital under Basel III regulatory capital rules.

Ciclos económicos, capital bancario y nuevas opciones de política económica

El objetivo de este trabajo es utilizar algunos hechos estilizados de la "Gran recesión", específicamente la drástica caída en el nivel de capitalización bancario, para analizar la relación entre los ciclos financieros y los ciclos reales, así como la efectividad de la política monetaria no convencional y las políticas macroprudenciales. Para esto, en el primer capítulo se desarrolla una microfundamentación de la banca a partir de un modelo de Costly State Verification, que es incluido posteriomente en distintas especificaciones de modelos DSGE. Los resultados muestran que: (i) los ciclos financieros y los ciclos económicos pueden relacionarse a partir del deterioro del capital bancario; (ii) Las políticas macroprudenciales y no convencionales son efectivas para moderar los ciclos económicos, pero son costosas en términos de recursos e inflación.

Emprendimiento, instituciones y construcción de paz – Análisis de Influencia de Stakeholders en los departamentos de Nariño y Cauca

Nariño y Cauca son dos de los departamentos de Colombia más afectados por la violencia. La reciente firma de un acuerdo de un cese bilateral de hostilidades con las Fuerzas Armadas Revolucionarias de Colombia (FARC) y los diálogos de La Habana son apenas el comienzo de la Construcción de Paz (CP) que implica el esfuerzo continuo de diferentes actores (gubernamentales, sector privado, sociedad civil y organismos multilaterales) para lograr no solo una paz negativa sino una paz positiva. El apoyo al emprendimiento es una estrategia implementada por el Gobierno y por los stakeholders que participan en el proceso del posconflicto, que tiene como finalidad respaldar el proceso de integración económica de las víctimas y desmovilizados. El presente documento es un estudio exploratorio elaborado por medio de una investigación cualitativa en la temática de emprendimiento, instituciones y CP en los departamentos de Nariño y Cauca. Se utilizó una estrategia metodológica denominada Matrices de Stakeholders para representar gráficamente la influencia institucional sobre la toma decisiones e implementación de los stakeholders sobre las reformas o políticas de emprendimiento y CP en estos dos departamentos. En esta investigación se encontró que i) en general, las instituciones del gobierno de los de Nariño y Cauca son extractivas y limitan la participación de la sociedad; ii) los stakeholders de la sociedad civil a pesar de tener cierta organización y voz no están en capacidad de generar influencia más que a nivel local o comunitario; iii) los vacíos dejados por las instituciones extractivas del gobierno tienden a ser llenados por instituciones inclusivas de stakeholders del sector privado y de organismos multilaterales.

Análisis del concepto de liderazgo y sus aplicaciones en el contexto empresarial

El presente trabajo se realizó con el objetivo de tener una visión completa de las teorías del liderazgo, teniendo de este una concepción como proceso y poder examinar las diversas formas de aplicación en las organizaciones contemporáneas. El tema es enfocado desde la perspectiva organizacional, un mundo igualmente complejo, sin desconocer su importancia en otros ámbitos como la educación, la política o la dirección del estado. Su enfoque tiene que ver con el estudio académico del cual es la culminación y se enmarca dentro de la perspectiva constitucional de la Carta Política Colombiana que reconoce la importancia capital que tienen la actividad económica y la iniciativa privada en la constitución de empresas. Las diversas visiones del liderazgo han sido aplicadas de distintas maneras en las organizaciones contemporáneas y han generado diversos resultados. Hoy, no es posible pensar en una organización que no haya definido su forma de liderazgo y en consecuencia, confluyen en el campo empresarial multitud de teorías, sin que pueda afirmarse que una sola de ellas permita el manejo adecuado y el cumplimiento de los objetivos misionales. Por esta razón se ha llegado a concebir el liderazgo como una función compleja, en un mundo donde las organizaciones mismas se caracterizan no solo por la complejidad de sus acciones y de su conformación, sino también porque esta característica pertenece también al mundo de la globalización. Las organizaciones concebidas como máquinas que en sentido metafórico logran reconstituirse sus estructuras a medida que están en interacción con otras en el mundo globalizado. Adaptarse a las cambiantes circunstancias hace de las organizaciones conglomerados en permanente dinámica y evolución. En este ámbito puede decirse que el liderazgo es también complejo y que es el liderazgo transformacional el que más se acerca al sentido de la complejidad.

Asymmetry and duration dependence in Australian GDP and unemployment

The per iodic structure of business cycles suggests that significant asymmetries are present over different phases of the cycle. This paper uses markov regime-switching models with fixed and duration dependent transition probabilities to directly model expansions, contractions and durations in Australian GDP growth and unemployment growth. Evidence is found of significant asymmetry in growth rates across expansions and contractions for both series. GDP contractions exhibit duration dependence implying that as output recessions age the likelihood of switching into an expansion phase increases. Unemployment growth does not exhibit duration dependence in either phase. Evidence is also presented that non-linearities in unemployment growth are well explained by the asymmetries in the GDP growth cycle. The analysis suggests that recessions are periods of rapid and intense job destruction, that Australian unemployment tends to ratchet up in recessionary periods and, in contrast to US and UK studies, that shocks to Australian unemployment growth are more persistent in recessions than expansions. [E37 C5 C41].

Interactive expectations

In modeling expectation formation, economic agents are usually viewed as forming expectations adaptively or in accordance with some rationality postulate. We offer an alternative nonlinear model where agents exchange their opinions and information with each other. Such a model yields multiple equilibria, or attracting distributions, that are persistent but subject to sudden large jumps. Using German Federal Statistical Office economic indicators and German IFO Poll expectational data, we show that this kind of model performs well in simulation experiments. Focusing upon producers' expectations in the consumption goods sector, we also discover evidence that structural change in the interactive process occurred over the period of investigation (1970-1998). Specifically, interactions in expectation formation seem to have become less important over time.

The determinants of international equity and bond investment

The purpose of this research is fourfold. First, to investigate whether the determinants of international equity investment differ between investors with different degrees of information, experience and sophistication. For this purpose, the determinants of international equity investment of institutional and noninstitutional investors from 20 OECD countries, in the period 2001-2009, were analysed and compared. The results show that there are significant differences in the determinants of international equity investment between institutional and noninstitutional investors. Particularly, noninstitutional investors exhibit a more pronounced preference for equities of geographical nearby, contiguous and more transparent countries than institutional investors, suggesting that the effect of information costs and familiarity on international equity investment is stronger for less informed, experienced and sophisticated investors. Moreover, the preference for more developed equity markets and the contrarian behaviour are more severe for noninstitutional investors. Hence, the heterogeneity of institutional and noninstitutional investors in international equity investment is not negligible and therefore should be taken into account. Second, to investigate whether the determinants of international bond investment differ between investors with different degrees of information, experience and sophistication. For this purpose, the determinants of international bond investment of institutional and noninstitutional investors from 20 OECD countries, in the period 2001-2009, were analysed and compared. The results show that there are few significant differences in the determinants of international bond investment between institutional and noninstitutional investors. Particularly, the preference for bonds of more transparent countries and the return chasing behaviour are more pronounced for noninstitutional investors, whereas the preference for bonds with lower risk diversification potential is more pronounced for institutional investors. Hence, not only the results for international bond investment do not allow to support (or reject) the argument that information costs and familiarity are more important for less informed, experienced and sophisticated investors, but also they are contrary to the idea that financial variables, namely return and risk diversification, are more important for more informed, experienced and sophisticated investors. Third, to investigate whether the determinants of international equity investment differ from the determinants of international bond investment. For this purpose, the determinants of both international equity and bond investment of institutional and noninstitutional investors from 20 OECD countries, in the period 2001-2009, were analysed and compared. The results show that, although the effect of information costs on international equity investment tends to be stronger than on international bond investment, the differences between assets are not usually statistically significant, especially when the influence of financial variables is taken into account. Hence, it is not possible to conclude that international equity investment is much more information intensive than international bond investment, as suggested by Gehrig (1993) and Portes, Rey and Oh (2001), among others. Fourth, to investigate whether the flight to quality phenomenon is also observable in international investment and whether the flight to quality phenomenon is more pronounced for more sophisticated than for less sophisticated investors. For this purpose, a two-factor and three-factor ANOVA models, respectively, were applied to the international equity and bond investment of institutional and noninstitutional investors from 20 OECD countries in the period 2001-2009. The results suggest that the flight to quality phenomenon is also observable in international investment, as a change from business cycle of expansion to recession causes investors to significantly decrease the average weight invested in more risky assets (equities) and increase the average weight invested in less risky assets (bonds). The results also show that the variation on the average weight assigned to each type of asset, due to changes in business cycles, is significantly stronger for institutional investors than for noninstitutional investors, thereby suggesting that the flight to quality phenomenon is more pronounced for more sophisticated than for less sophisticated investors.