Assessment of Acceptance Sampling Plans Using Posterior Distribution for a Dependent Process

In this study, performance of single acceptance sampling plans by attribute is investigated by using the distribution of fraction nonconformance (i.e., lot quality distribution (LQD)) for a dependent production process. It is the aim of this study to demonstrate that, in order to emphasize consumer risk (i.e., the risk of accepting a bad lot), it is better to evaluate a sampling plan based upon its performance as assessed by the posterior distribution of fractions nonconforming in accepted lots. Similarly, it is the desired posterior distribution that sets the basis for designing a sampling plan. The prior distribution used in this study is derived from a Markovian model of dependence

Firm-Specific Assets, Multinationality, and Financial Performance: A Meta-Analytic Review and Theoretical Integration

Through a meta-analysis of 120 independent samples reported in 111 studies, we test the predictions of internalization theory in the context of the multinationality-performance relationship. Findings indicate that multinationality provides an efficient organizational form that enables firms to transfer their firm-specific assets to generate higher returns in international markets. In addition, the results delineate the conditions under which firm-specific assets have the strongest impact on the multinationality-performance relationship. Meta-analytic evidence also suggests that multinationality has intrinsic value above and beyond the intangible assets that firms possess, given analyses controlling for firms\u27 international experience, age, size, and product diversification

Multinational country risk: Exposure to asset holding risk and operating risk in international business

We address the phenomenon of country total risk, confounded by the risk of holding assets abroad and operating them in the foreign market. The findings point to deep differences in risk patterns as ownership of intangible assets exposes the holders to a higher risk. Indeed, the asset-specific risk is the dominant component of advance market volatility, explaining more than 80 percent of the cross-sectional variance. The model in the study accounts for the deficiencies in the related research streams and attempt to alleviate the typical problems in popular estimation methods

Gauging The Liability in Broken Trust: Relational Contracting and The Consequent Cost

If trust were purchasable, how much value you would attribute to it and be willing to incur a cost for safeguarding yourself from its breach? This question is the central theme of this article. The key issue in our discussion is that liability is part of all trust laden relationship and someone has to cover it. In our context, this obligation falls on the underdog. The conditions force the underdog to take a liability above the fair price level, just because the asymmetry of liabilities and limited information self-select the underdog. The adverse selection occurs due to individuals who opt out of insurance (because their willingness to pay is less than the average cost of the insurance). Those who opt out, distort mechanism which makes the price to be the fair price. The result allows the top dog to evade risk at someone else\u27s expense. The article argues, under certain conditions, broken trust breeds a set of strategic issues including over- or under-investment, contractual issues and agency problems

Number of R&D Alliances and Innovation Output: Non-Linear Relationship Evidence From The Pharmaceutical Industry

What is the precise nature of the relationship between a firm’s research and development alliance portfolio size and its innovation output? The existing literature is inconclusive between a positive linear relationship and a nonlinear variant. To address the issue, this study explores the relationship between alliance portfolio size and innovation output in the context of the pharmaceutical industry. Contrary to previous investigations, our results suggest increasing returns at a diminishing rate at a low to moderate alliance portfolio level while exhibiting increasingly higher returns at a moderate to high level of portfolio size. An advantage of the present investigation is that we draw from a larger data set of alliance agreements compared to earlier investigations. Additionally, the results provide improved reliability compared to previous studies where violations of some underlying assumptions have been overlooked. The paper concludes with a discussion of findings and suggestions for future research

Middle-Class Consumers in Emerging Markets: Conceptualization, Propositions, and Implications for International Marketers

As emerging markets gain significance in the global economy, understanding the middle-class customers within these dynamic economies becomes even more critical for international marketers. This article contributes to the limited but growing literature on this topic. International marketing scholars and practitioners should be better informed about this megatrend. What does the “middle class” really mean? What are the theoretical underpinnings for the middle-class phenomenon? What are the implications for international marketing? To address these pressing questions, the authors explore the middle-class phenomenon in emerging markets. Through an examination of conceptual underpinnings and empirical observations, they present a conceptualization and several theoretical propositions. Finally, they provide managerial and scholarly implications of the middle-class phenomenon and offer suggestions for further research

Developing strategic supplier networks:An institutional perspective

This study examines the exposure of the members of supplier networks to two layers of social influences. First, as the network connects an actor to a foreign constellation, the actor faces influences of a global character. Second, each individual actor experiences different forces emanating from its indigenous institutional environment. The exposure to two institutional practices presents a conundrum for each network member. In this duality they alter their behavior in order to resolve the contrast and clashes of layered forces. By drawing upon institutional theory and in-depth study of a global retailer, IKEA, this study shows how the retailer handles this duality. The study increases understanding of how a supplier network can be socially transformed into an idiosyncratic asset which is costly to imitate for rivals and thus offers a unique competitive advantage to the firm. The framing which is used for IKEA's strategy under institutional theory in this article underscores the regulative, cognitive, and normative socialization as part of a company's strategic process to align relationships with its partners. (C) 2012 Elsevier Inc. All rights reserved