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We present an approach for pricing American put options with a regime-switching volatility. Our method reveals that the option price can be expressed as the sum of two components: the price of a European put option and the premium associated with the early exercise privilege. Our analysis demonstrates that, under these conditions, the perpetual put option consistently commands a higher price during periods of high volatility compared to those of low volatility. Moreover, we establish that the optimal exercise boundary is lower in high-volatility regimes than in low-volatility regimes. Additionally, we develop an analytical framework to describe American puts with an Erlang-distributed random-time horizon, which allows us to propose a numerical technique for approximating the value of American puts with finite expiry. We also show that a combined approach involving randomization and Richardson extrapolation can be a robust numerical algorithm for estimating American put prices with finite expiry.

The changing roles of the United Nations (UN) and national institutions have made addressing climate change a critical concern for many multinational enterprises’ (MNEs) survival and growth. This chapter discusses how such institutions, which vary in their nature and characteristics, shape firm strategies for climate change adaptation. Exploring different versions of institutional theory, the chapter demonstrates how and why institutional characteristics affect typical patterns of firm ownership, governance, and capabilities. These, in turn, influence companies’ internationalisation and climate-change strategies. Climate change poses challenges to how we understand firms’ strategic decisions from both an international business (IB) (HQ–subsidiary relations) and global value chains (GVC) (buyer–supplier relations) perspective. However, climate change also provides opportunities for companies to gain competitive advantages – if firms can reconfigure and adapt faster than their competitors. Existing IB and GVC research tends to downplay the importance of climate change strategies and the ways in which coherent or dysfunctional institutions affect firms’ reconfiguration and adaptation strategies in a globally dispersed network of value creation. This chapter presents a perspective on the institutional conditions that affect firms’ climate change strategies regarding ownership, location, and internalisation (OLI), and GVCs, with ‘investment’ and ‘emerging standards’ playing a significant role. The authors illustrate the discussion using several examples from the Global South (i.e. Bangladesh) and the Global North (i.e. Denmark, Sweden, and Germany) with a special emphasis on the garment industry. The aim is to encourage future research to examine how a ‘business systems’, or varieties of capitalism, institutional perspective can complement the analysis of sustainability and climate change strategies in IB and GVC studies.

Quality management (QM) can support organisations in contributing to sustainable development. As a result of an expanding focus from customers towards stakeholders within QM, the perspectives to consider multiply. Understanding how practices and tools for process management are specifically affected by this increase in perspectives is key to creating the right conditions for improvement initiatives that support sustainable development.

This paper constructs a typology wherein the use of process management practices and tools is described in nine distinguished system contexts. Inductive discrimination is used to differentiate the system contexts and different use cases for process practices and tools.

Using the system of systems grid (SOSG), mainstream business process management (BPM) practices are positioned in a simple unitary context, whilst sustainability challenges also involve more complex contexts. Addressing these challenges requires integrating new tools and methods from paradigms outside of traditional functionalist business process management practices.

This paper highlights the necessity to consider system contexts when developing feasible practices and tools for effective process management.

Practical implications are that quality practitioners aiming to exploit the potential in process management to support sustainability get support for planning and conducting process improvement initiatives aiming to consider several stakeholder perspectives.

This paper presents a new typology for understanding the context of QM process initiatives and BPM in light of a contemporary sustainability focus.

A major obstacle regarding the measurement of an organization's sustainability and accountability in the space economy is defining the context and boundaries of commercial activity in outer space. Here, we introduce an ecosystem framework to address this obstacle. We utilize this framework to analyze the space mining sector. Our ecosystem framework sets the space mining sector's boundaries and helps a firm identify key stakeholders, activities, policies, norms and common pool resources in that sector and the interactions between them; a significant step in structuring how to measure space sustainability and accountability.

Borrowing theories and perspectives from a wide range of academic fields, this paper conducts a comprehensive context analysis of the space mining ecosystem.

Using our ecosystem framework to define the context and set boundaries for the space mining sector allowed us to identify sustainability-related issues in the sector and offer roadmaps to develop sustainability measures and standards.

To the best of the authors’ knowledge, this is one of the first papers to introduce a framework to define boundaries in the global space economy and provides a tool to understand, measure and evaluate the space mining sector's environmental, social and economic issues.

By building and examining an integral model, the principal objectives of this research are to systematically explore how indirect and direct network externalities lead to user loyalty toward WeChat through the mediating effect of perceived gratifications.

The data were collected through an online survey of 688 young people in Mainland China. To empirically assess the conceptual model, zero-order correlation analyses and structural equation modeling were carried out utilizing web-based data.

Path analysis results demonstrate that indirect network externalities and direct network externalities exert a significant impact on users' hedonic gratifications and utilitarian gratifications. Moreover, the study discovers the significant mediating influences of utilitarian gratifications on the association between indirect network externalities and user loyalty.

Theoretically, this article may extend the scope of diverse studies on the association between network externalities and perceived gratifications and offer fresh insights into how mobile social media could actually improve user loyalty through enhancing perceived values among younger generation. Practically, this research assists mobile social media practitioners in retaining users and gaining competitive advantages over rival applications.

Although the extraordinary growth of WeChat has successfully become the dominant media by which individuals develop interpersonal network and contact with others, the roles of perceived gratifications between network externalities and user loyalty toward WeChat have not yet been investigated in depth. These obtained outcomes not only enrich the existing literature regarding the relationship between network externalities and affective response, but also offer fresh insights to mobile social media designers, marketers and users.

The purpose of this paper is to investigate how different manufacturing technologies are bundled together and how these bundles influence operations performance and, indirectly, business performance. With the emergence of Industry 4.0 (I4.0) technologies, manufacturing companies can use a wide variety of advanced manufacturing technologies (AMT) to build an efficient and effective production system. Nevertheless, the literature offers little guidance on how these technologies, including novel I4.0 technologies, should be combined in practice and how these combinations might have a different impact on performance.

Using a survey study of 165 manufacturing plants from 11 different countries, we use factor analysis to empirically derive three distinct manufacturing technology bundles and structural equation modeling to quantify their relationship with operations and business performance.

Our findings support an evolutionary rather than a revolutionary perspective. I4.0 technologies build on traditional manufacturing technologies and do not constitute a separate direction that would point towards a fundamental digital transformation of companies within our sample. Performance effects are rather weak: out of the three technology bundles identified, only “automation and robotization” have a positive influence on cost efficiency, while “base technologies” and “data-enabled technologies” do not offer a competitive advantage, neither in terms of cost nor in terms of differentiation. Furthermore, while the business performance impact is positive, it is quite weak, suggesting that financial returns on technology investments might require longer time periods.

Relying on a complementarity approach, our research offers a novel perspective on technology implementation in the I4.0 era by investigating novel and traditional manufacturing technologies together.

Advanced servitization is the process that involves the combination of different services that facilitate both the use of a product and customer operations. Although servitization has emerged as a frequent strategy for manufacturers to differentiate themselves from the competition, its implementation can pose major challenges and may not always result in superior firm performance. Consequently, successful advanced servitization may require specific organizational capabilities to unleash performance-enhancing effects. To date, little is known about how to effectively configure advanced servitization to achieve such performance gains.

Adopting a fit theory perspective and using a configurational approach, we examine the interplay between servitization, organizational capabilities, contextual factors and financial performance. Specifically, we focus on advanced servitization and assess its necessity and sufficiency for achieving high financial performance. In addition, we study how the alignment of servitization approaches with organizational capabilities and contextual factors affects financial performance. We analyze data from 151 manufacturers in an emerging economy using fuzzy-set Qualitative Comparative Analysis (fsQCA).

Our findings indicate that advanced servitization is sufficient, but not necessary for high financial performance. In addition, the findings indicate that the alignment of servitization approaches with specific service-related capabilities unfolds complementarity effects that contribute to achieving high financial performance for manufacturers with different firm size and competitive intensity. The findings indicate three configurations that may serve as templates for managers to orchestrate resource allocation and successfully deploy advanced servitization.

Our study advances the servitization literature by further illuminating advanced servitization as a more complex servitization process. We show how high-performing manufacturers align servitization and organizational capabilities across different contexts, and thus provide design choices for managers in configuring servitization.

Multinational enterprises (MNEs) own and control technological resources and capabilities that make them critical actors in accelerating the transition toward net zero. Even beyond the energy sector, stakeholders are putting increasing pressure on MNEs to reduce the carbon intensity of their operations, that is, to improve their carbon performance. While there is unambiguous evidence that national climate policy is a critical catalyst for long-term carbon performance improvements, there is limited research on how MNEs’ carbon strategies react to climate policies. This chapter reviews the concepts, drivers, and strategies connected to carbon performance in the broader sustainability and management literature to clarify potential complementarities to international business (IB). The authors then highlight how MNEs will face increasing institutional complexity along two dimensions: (1) the structural diversity of institutional environments and (2) institutional dynamism, primarily reflected by public policy. The proposed conceptual framework maps these two dimensions to national and subnational levels, and the authors present two data sources that allow the quantitative analysis of country differences in the diversity and dynamism of national climate policy. The authors conclude that there are ample opportunities for IB researchers to explore MNEs’ strategic reactions to climate policy and to inform policymakers about the consequences of national climate policy in the global economy.

Although earlier research suggests a positive relationship exists between engaging in entrepreneurial marketing activities and firm performance, there may be contingent issues that impact the association. This investigation unpacks the relationship between entrepreneurial marketing behaviour and firm performance under the moderating role of coopetition, in an immediate post-COVID-19 period.

A resource-based theoretical lens, alongside an outside-in perspective, underpins this study. Following 20 field interviews, survey responses via an online survey were obtained from 306 small, passive exporting wine producers with a domestic market focus in the United States. The data passed all major robustness checks.

The statistical findings indicated that entrepreneurial marketing activities positively and significantly influenced firm performance, while coopetition provided a non-significant moderation effect. Field interviews suggested that entrepreneurs’ attemps to scale up from passive to more active export activities in an immediate post-pandemic period helped explain the findings. Owner-managers rejoined trustworthy and complementary pre-pandemic coopetition partners in the immediate aftermath of coronavirus disease 2019 (COVID-19) for domestic market activities. In contrast, they had to minimise risks from dark-side/opportunistic behaviour when joining coopetition networks with partners while attempting to scale up export market activities.

Unique insights emerge to unpack the entrepreneurial marketing–performance relationship via the moderation effect of coopetition, namely, with the temporal setting of an immediate post-COVID-19 period. Firstly, new support arises regarding the likely performance-enhancing impact of owner-managers’ engagement in entrepreneurial marketing practices. Secondly, novel findings emerge in respect of the contrasting role of coopetition in both domestic and export market activities. Thirdly, new evidence arises in relation to a resource-based theoretical lens alongside an outside-in perspective, whereby, strategic flexibility in pivoting facets of a firm’s business model needs effective management following a crisis.

This paper aims to analyse the influence of workforce diversity on the firm’s likelihood to develop organisational innovations. Operationalising human resources diversity is not straightforward, and its effect has been rather overlooked in the context of non-technological innovations. This study analyses the impact of task-related diversity among research and development (R&D) unit workers and women R&D workers, in particular.

To estimate the impact of task-related diversity on firm propensity to undertake organisational innovation, this study uses a generalised linear model (GLM) – with a binomial family and log–log extension. GLMs are used to control problems of over-dispersion, which, in models with binary response variables, could generate inaccurate standard error estimates and provide inconsistent results.

This paper provides three important results. Firstly, employee diversity increases the firm’s propensity to engage in organisational innovations. Secondly, the influence of each facet of task-related diversity varies depending on the type of organisational innovation considered. Thirdly, gender has an effect on the innovation process; this study shows that women play a different role in the production of non-technological innovations.

This paper makes several contributions to the literature. Firstly, it makes a theoretical contribution to research on innovation management by considering the influence of human resources diversity on the development of non-technological innovations. Secondly, this study analyses the role of workforce diversity in an R&D department context to clarify the contribution made by women R&D workers.