Abstract

In the literature on monetary economics, there is the ‘inflationary bias’ result which predicts that the rate of inflation will be biased towards a higher level under discretionary monetary policy than under a rule‐based policy regime. It is established that a credible nominal target can eliminate this ‘inflationary bias’. In this paper, we examine the case of nominal GDP targeting, which is a rule‐based monetary regime. Depending on the degree of conservativeness by the central bank, we show in a stylized model the choice of different combination of inflation and real GDP targets can still result in an ‘inflationary bias’, and there also exists the possibility of a ‘dis‐inflationary bias’.

Keyword

monetary policy ;  nominal GDP targeting ;  central bank ;  conservatism ;  inflationary bias ;  E52 ;  E58

Abstract

Expressing (vs. withholding) forgiveness is often promoted as a beneficial response for victims. In the present research, we argue that withholding (vs. expressing) forgiveness can also be beneficial to victims by stimulating subsequent transgressor compliance - a response that is valuable in restoring the victim's needs for control. Based on deterrence theory, we argue that a victim's withheld (vs. expressed) forgiveness promotes transgressor compliance when the victim has low power, relative to the transgressor. This is because withheld (vs. expressed) forgiveness from a low-power victim elicits transgressor fear. On the other hand, because people are fearful of high-power actors, high-power victims can expect high levels of compliance from a transgressor, regardless of whether they express forgiveness or not. A critical incidents survey (Study 1) and an autobiographic recall study (Study 2) among employees, as well as a laboratory experiment among business students (Study 3), support these predictions. These studies are among the first to reveal that withholding forgiveness can be beneficial for low-power victims in a hierarchical context - ironically, a context in which offering forgiveness is often expected.

Keyword

compliance ;  deterrence theory ;  fear ;  forgiveness ;  Power

Abstract

While a large body of research has investigated cultural differences in behavior, this typical study assesses a single behavioral outcome, in a single context, compared across two countries. The current study compared a broad array of behaviors across 21 countries (N = 5,522). Participants described their behavior at 7:00 p.m. the previous evening using the 68 items of the Riverside Behavioral Q-sort (RBQ). Correlations between average patterns of behavior in each country ranged from r = .69 to r = .97 and, in general, described a positive and relaxed activity. The most similar patterns were United States/Canada and least similar were Japan/United Arab Emirates (UAE). Similarities in behavior within countries were largest in Spain and smallest in the UAE. Further analyses correlated average RBQ item placements in each country with, among others, country-level value dimensions, personality traits, self-esteem levels, economic output, and population. Extroversion, openness, neuroticism, conscientiousness, self-esteem, happiness, and tolerant attitudes yielded more significant correlations than expected by chance.

Keyword

behavior ;  cross-cultural ;  personality ;  Riverside Behavioral Q-sort

Abstract

In complex and competitive business environment, there have been many examples of supply chain members fighting for power. Therefore, researchers have begun focusing on the impact of control power allocation on the supply chain. This paper examines the allocation of power in different service supply chain relationships, analyzing the impact of service level on optimal control power allocation and comparing the differences between the optimal power distribution in service supply chains and that of manufacturing supply chains. We adopt a mathematical model building method to discuss this issue, verifying the theoretical perspectives through empirical studies of China's largest state-owned logistics company, the China Railway Company, and the private ownership enterprise, Tianjin SND Logistics Company. We also develop a conceptual model of the influence of control power on the performance of service supply chains, based on the modeling and case analysis. The conceptual model shows several results: the control power allocation determines the dominant structure of the supply chain; the service provider's wholesale pricing strategy and the service integrator's sales price strategy present different outcomes under various dominant structures of the supply chain, which will greatly affect the performance of the corresponding supply chain; and the relationship between the supply chain dominant structure and the price can be adjusted by the service level.

Keyword

Case study ;  Conceptual model ;  Control power ;  Model analysis ;  Service level ;  Service supply chain

Abstract

Keyword

Health Care ;  Health Policy

Abstract

Purpose The paper examines accounting changes in the Ashanti Gold Corporation (AGC) in Ghana over 120 years from pre-colonialism to recent times and whether the framework of management accounting transformations in Hopper et al. (2009) is applicable. Design/methodology/approach Mixed data sources are used, namely interviews, some observations of practices, historical documentation, company reports, and research papers and theses. The results are categorized according to the periods and contextual factors in the Hopper et al. framework to test whether it matches the data collected. Findings Despotic controls with minimal management accounting but stewardship accounting to the head office in London prevailed under colonialism. Upon independence state capitalist policies descended into politicized state capitalism. Under nationalization the performance of mines deteriorated and accounting became decoupled from operations. In the early 1980s fiscal crises forced Ghana’s government to turn to the World Bank and IMF for loans. This period marked a gradual transformation of AGC into a foreign multinational, organized along divisional lines and today exercises despotic control through supply chain management that renders labour precarious, and is neglectful of corporate social accounting issues. Research limitations/implications The work challenges neo-classical economic prescriptions and analyses of accounting in developed countries by indicating its neglect of the interests of other stakeholders, especially labour and civil society. Accounting is important for development but the article infers other forms may better serve the public interest. Originality/value The paper tests the Hopper et al. framework with respect to a large private multinational in the commodity sector over an extended period, which differs from the case studies drawn on originally.

Keyword

accounting change ;  Ashanti Gold ;  development policies ;  Ghana

Abstract

Purpose The purpose of this paper is to contribute to the human resources (HR) literature by using exploratory network analysis (ENA), a data-driven technique. This technique was employed to discover how the perceived effectiveness of HR practices interrelate with employee perceptions on organizational cultural factors to enhance organizational commitment. Design/methodology/approach The authors used data from 1,459 employees of a large South Korean conglomerate and studied how individual HR practices could be enhanced by specific organizational cultural factors. The data were analyzed using ENA, which is an inductive approach. Findings The authors found that organizational commitment is associated with the positive perceptions of employees on the effectiveness of HR practices, such as performance appraisal, training and development, and compensation. Results show that when both HR practices and organizational cultural factors are considered, they appear to influence organizational commitment independently. Research limitations/implications Data were collected from a large conglomerate. The authors were limited by the use of the scales developed by a consulting firm. Therefore, readers should be cautious about the generalizability of the findings. Originality/value The application of a data-driven technique (ENA) highlights the potentially fertile methodological grounds for HR research. Literature on strategic HR management may benefit from inductive approaches, wherein data serve as primary foundation for the design and development of new theories.

Keyword

Exploratory network analysis ;  HR systems ;  Organizational commitment ;  Organizational culture

Abstract

Purpose The purpose of this paper is to develop the theoretical linkage between culture and economic growth and empirically test the relationship by measuring culture and how it affects labor productivity. Design/methodology/approach This study uses a cross-section study of developing countries and regresses economic productivity growth on a set of control variables and cultural factors. Findings It is found that three cultural factors, economic attitudes, political attitudes, and attitudes towards the family, affect economic productivity growth. Originality/value Many economists ignore culture as a factor in economic growth, either because they discount the value of culture or because they have no simple way to quantify culture, resulting in the role of culture being under-researched. The study is the first to extensively examine the role of culture in productivity growth using large-scale data sources. The authors show that culture plays an important role in productivity gains across countries, contributing to the study of the effects of culture on economic development, and that culture can be empirically measured and linked to an activity that directly affects the economic growth – labor productivity.

Keyword

Cross-country comparison ;  Culture ;  Economic development ;  roductivity growth

Abstract

Purpose The purpose of this paper is to apply the concept of blind spot to illustrate the misapplication of extant global strategies to emerging markets. The authors discuss cases of multinationals and indigenous local companies to draw insights on firm operations in emerging markets. The authors unpack four specific blind spots that have resonated repeatedly in their operations: an adherence to unqualified scaling, the intractability of localization, the opacity of non-government intervention, and an undue attention to disruption rather than transformation. The study concludes with recommendations that can help companies be better aware of the blind spots and manage more effectively in emerging markets. Design/methodology/approach Conceptual. Findings Four blind spots: an adherence to unqualified scaling, the intransitivity of localization, the illusion of non-government intervention, and an undue attention to disruption rather than transformation. Practical implications The paper is primarily for practitioners. Originality/value This study presents some of the key findings from our previous studies on emerging market issues. The authors recently published four different books on various themes on emerging markets. The findings presented in this paper come strictly from these previous projects.

Keyword

Scaling ;  Emerging markets ;  Blind spots ;  Marketing-centric and production-centric modalities ;  Surface and deep structures ;  Unbalanced growth

Abstract

Decision making has been studied from various angles and perspectives. Despite much progress, the role of paradox and the ways it reveals itself in decision making has received little attention. Perhaps, part of the reason is that paradox has been studied in the West based on the analysis of Western managers’ activities while neglecting the fact that in the East, and especially in China, paradox has always been integral to managerial decision making. This “viewpoint” article seeks to highlight China as an important research setting that could add impetus to the study of paradox and decision making. It sheds light on questions such as: What do we know about paradox today and how do Western scholars treat this notion? What does research say about decision making in China? Is there a potential to get a better understanding of the concepts of paradox if study it in decision making in China?.

Keyword

China ;  Decision making ;  paradox