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Research on strategic choices available to the firm are often modeled as a limited number of possible decision outcomes and leads to a discrete limited dependent variable. A limited dependent variable can also arise when values of a continuous dependent variable are partially or wholly unobserved. This chapter discusses the methodological issues associated with such phenomena and the appropriate statistical methods developed to allow for consistent and efficient estimation of models that involve a limited dependent variable. The chapter also provides a road map for selecting the appropriate statistical technique and it offers guidelines for consistent interpretation and reporting of the statistical results.

This study aims to critically evaluate resource dependence theory’s (RDT) assumptions and explanations about dependence and the dependent firm’s strategic options. The authors argue that RDT’s perception of dependence is problematic because it evaluates dependence as a purely negative situation in which all firms, by definition, seek to develop strategies to change the power structure of such relationships. On the contrary, the authors argue that there are situations in which dependent firms are in agreement with dependence and, therefore, develop strategies that do not aim to change the balance of power in the relationship, but rather to strengthen their position within the relationship.

The research is designed as a theoretical discussion. The authors critically evaluate and discuss current understanding and assumptions about RDT’s dependence explanations. Drawing on insights from the strategic management literature, the authors offer a new perspective on the problematic areas in the dependence explanations of the RDT.

Drawing on insights from the strategic management literature, the authors argue that dependent firms enjoy certain advantages due to the dependence relationship to gain sustainable competitive advantages over their rivals and potential competitors. These advantages include factors such as increasing growth potential, developing capabilities and competencies, building relationships of trust with powerful firms and leveraging their reputations and references that contribute to the sustainable strategic advantages of dependent firms. The authors believe that this study has the potential to spur new research that further challenges the assumptions of the RDT and empirically tests its propositions.

The authors propose a research framework on dependence as a strategic option that has the possibility of expanding RDT’s current dependence explanation.

This study focusses on dependent self-employment, which covers a situation where a person works for the same employer as a typical worker whilst on a self-employment contractual basis, i.e. without a traditional employment contract and without certain rights granted to “regular” employees.

The research exploits the individual-level dataset of 35 European countries extracted from the 2017 edition of the European Labour Force Survey (EU LFS) and compares the characteristics of employees and dependent self-employed individuals. Methodologically, the study relies on the estimation of a multivariate logistic regression model.

The main hypothesis assuming that dependent self-employed work most often in low-skilled occupations was empirically supported. There was also a non-linear (u-shaped) relationship between the years of accumulated experience (with a turning point at 35 years) and the likelihood of being dependent self-employed. Other results showed that dependent self-employed are less likely to be women and the dependent self-employed are more likely born outside of the countries where the dependent self-employed participate in the labour markets.

The study contributes to the field by adopting a comparable definition of dependent self-employment and exploiting the recent theoretical support of The Work Precarity Framework. The phenomenon should still be addressed by policymakers and labour office representatives, aiming to protect, primarily, vulnerable lower-skilled workers. The ongoing research should study the longitudinal dimension of dependent self-employment with a focus on motivational aspects.

In recent years, there has been a concern that employers are falsely classifying employees as self-employed to evade collective agreements and labour laws (e.g. minimum wages, working time legislation and protection in case of redundancy), and the result is that these dependent self-employed suffer poorer working conditions. The purpose of this paper is to provide an extensive evaluation of the working conditions of those in dependent self-employment compared with the genuine self-employed.

To do so, data are reported from a 2015 European Working Conditions Survey of 35,765 workers in 28 European Union member states.

Of the 4.3 per cent of the working population found to be in dependent self-employment, the finding is that they have similar working conditions to the genuine self-employed in terms of their physical and social environment and intensity of work. However, they have poorer job prospects and less ability to use their skills and discretion than the genuine self-employed. In terms of the working time quality, meanwhile, the finding is that they have better conditions than the genuine self-employed. Therefore, this analysis uncovers the need for a more nuanced understanding of the relative working conditions of the dependent self-employed.

If the working conditions of the dependent self-employed are to be tackled, evaluation is now required of whether the current policy approaches, such as developing a hybrid category of employment with legal rights attached, address the specific working conditions that are worse for the dependent self-employed.

This is one of the few papers which provides an extensive evaluation of the working conditions of those in dependent self-employment in the EU28.

In this paper the authors examine evidence on exchange rate predictability through commodity prices for a set of countries categorized as commodity import- and export-dependent developed and emerging countries.

The authors perform in-sample and out-of-sample forecasting analysis. The commodity prices are modeled to predict the exchange rate and to analyze whether this commodity price model can perform better than the random walk model (RWM) or not. These two models are compared and evaluated in terms of exchange rate forecasting abilities based on mean squared forecast error and Theil inequality coefficient.

The authors find that primary commodity prices better predict exchange rates in almost two-thirds of export-dependent developed countries. In contrast, the RWM shows superior performance in the majority of export-dependent emerging, import-dependent emerging and developed countries.

Previous studies examined the exchange rate of commodity export-dependent developed countries mainly. This study examines both developed and emerging countries and finds for which one the changes in prices of export commodities (in case of commodity export-dependent country) or prices of major importing commodities (in case of import-dependent countries) can significantly predict the exchange rate.

The purpose of this paper is to determine if there is a significant difference in the investment risks between small-cap manufacturers that heavily depend on one or a few buyers, referred to as “dependent-buyers,” and small-cap manufacturers that have a more diversified customer base. If there is a significant difference both statistically and economically, then investors need to be aware of the dependent-buyer effect in their security selection and portfolio construction efforts.

Using large samples of firm-level data from 2000 through 2011, the authors employ standard risk estimation modeling to compute βs, idiosyncratic risks, and total risks of both dependent-buyer firms and firms with a more diversified customer base.

The authors find that the βs, idiosyncratic risks, and total risks of dependent-buyer firms are much greater than that of firms not in dependent relationships. These differences are both statistically and economically significant.

Buyer-supplier relationships can change quickly, and so a firm that has a diversified base in one period, for example, could be a dependent-buyer in the next period. Much depends on the reporting accuracy of firms and the ability of the securities exchange commission (SEC) to track the relationships.

First, the risk of individual small-cap stocks is likely to be greater than perceived from macro-level data, leading to the need for more securities if idiosyncratic risk is to be eliminated. Second, small-cap investors have the opportunity to enhance portfolio construction efficiency by referencing data published by the SEC. Third, most investors interested in small-cap manufacturing stocks should find it prudent to allocate a large percentage of their small-cap investments to an index fund. While this may sacrifice higher returns, it also reduces the probability of experiencing an unpleasant small-stock effect.

This is the first study to show that the difference in investment risks between small-cap manufacturers that depend on one or a few firms for their outputs and small-cap manufacturers that have a well-diversified customer base is statistically and economically significant, information that should be valuable to investors in their security selection and portfolio construction efforts.

Context-awareness has emerged as an important principle in the design of flexible business processes. The goal of the research is to develop an approach to extend context-aware business process modeling toward location-awareness. The purpose of this paper is to identify and conceptualize location-dependencies in process modeling.

This paper uses a pattern-based approach to identify location-dependency in process models. The authors design specifications for these patterns. The authors present illustrative examples and evaluate the identified patterns through a literature review of published process cases.

This paper introduces location-awareness as a new perspective to extend context-awareness in BPM research, by introducing relevant location concepts such as location-awareness and location-dependencies. The authors identify five basic location-dependent control-flow patterns that can be captured in process models. And the authors identify location-dependencies in several existing case studies of business processes.

The authors focus exclusively on the control-flow perspective of process models. Further work needs to extend the research to address location-dependencies in process data or resources. Further empirical work is needed to explore determinants and consequences of the modeling of location-dependencies.

As existing literature mostly focusses on the broad context of business process, location in process modeling still is treated as “second class citizen” in theory and in practice. This paper discusses the vital role of location-dependencies within business processes. The proposed five basic location-dependent control-flow patterns are novel and useful to explain location-dependency in business process models. They provide a conceptual basis for further exploration of location-awareness in the management of business processes.

Research in the area of financial distress often uses a proportional hazards model to determine the influence of covariates on the duration of time that precedes financial distress. Acritical issue in the use of a proportional hazards model is the use of time‐invariant and time‐dependent covariates. Time‐invariant covariates remain fixed while time‐dependent covariates change during the estimation of the model. Although the choice of covariates might substantially affect the estimation of the proportional hazards model, existing literature often fails to consider the potential effect of this choice on model estimation. This paper reviews the distinction between time‐invariant and time‐dependent covariates and the effect of covariate selection on the estimation of a proportional hazards model. Using a sample of financially distressed and non‐financially distressed firms, this paper suggests the choice of time dependence substantially influences model estimation and that covariate selection should be given more serious consideration in financial distress research.

Building on the transaction cost theory and power structure literature, this paper aims to investigate the extent to which firms use two safeguarding mechanisms (supply chain relational investments and electronic collaboration) in different network dependency contexts in order to protect their portfolios of business relationships.

Empirical evidence is gathered though a survey data conducted with 159 firms in the wireless communication sector. The paper tests the assumption that the two safeguarding mechanisms are used to a greater extent in interdependency‐intensive networks than in other supply chain contexts.

This empirical study suggests that: in a network‐dependent context, relational investments allow firms to safeguard their portfolios of relationships; electronic collaboration seems to be a safeguarding mechanism for firms in downstream‐dependent network contexts; in general, firms appear to use both relational investments and electronic collaboration to manage their relationships in a supply chain network; and the knowledge‐based theory may explain the strong relationship between upstream and downstream use of electronic collaboration.

Overall, the present study complements the extant literature on supply chain management and inter‐firm electronic collaboration by showing how an important structural characteristic of supply chain networks (i.e. dependency) operates on the choice of using two key safeguarding mechanisms.

Results stress the importance of these safeguarding mechanisms in joint actions such as collaborative planning, forecasting and replenishment.

The paper addresses interdependencies from a network perspective which encompasses the firms' complete portfolio of relationships.

Without an understanding of the factors that influence the expenditure of alcohol-dependent individuals on alcohol, it is unclear whether policies to control excessive consumption of alcohol can be effective. The purpose of this paper is to empirically investigate the factors that affect the expenditure of alcohol-dependent individuals on alcohol.

The main contribution of this paper is that it relies on a survey consisting exclusively of 300 alcohol-dependent individuals to capture the variables influencing their expenditure on alcohol. The survey was carried out by fieldworkers in the year 2012. The respondents come from varied socio-economic backgrounds and consist of both male and female alcohol-dependent individuals living in various geographical parts of the island of Mauritius.

The results obtained indicate that expenditure on alcohol by alcohol-dependent individuals increases as income increases. Given that the coefficient on the income variable is positive but less than one, this indicates that alcohol is viewed as a necessity. Apart from income, the age when the person first started drinking and the family size are important variables influencing the expenditure of alcohol-dependent individuals on alcohol.

The findings indicate that alcohol-dependent individuals should be sensitized so that they are not tempted to increase expenditure on alcohol as their income increases. Sensitization should be aimed at making them understand that the increase in income allocated toward alcohol expenditure could be better spent. Awareness programs could also help to address the issue of over-consumption of alcohol among the youth.

As far as the authors know, there has not been any empirical studies conducted in Mauritius on the expenditure on alcohol by alcohol-dependent individuals.