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Article
Publication date: 12 September 2016

Rodney Paul, Colby Conetta and Jeremy Losak

The purpose of this paper is to use financial market prices formed in betting markets as a measure of uncertainty of outcome and other factors as it relates to hockey…

Abstract

Purpose

The purpose of this paper is to use financial market prices formed in betting markets as a measure of uncertainty of outcome and other factors as it relates to hockey attendance in three top European leagues, the KHL, SHL, and Liiga. This is the first study of European hockey to use betting market odds to estimate the impact of home team win probability and uncertainty of outcome on attendance.

Design/methodology/approach

The design of this study is a multivariate regression model with log of attendance and percentage of arena capacity as dependent variables in two separate regressions. Controlling for other factors, the role of the home team win probability and its square are explored for individual game attendance.

Findings

Fans of the KHL and SHL are found to prefer to see their home team win, but also exhibit strong preferences for uncertainty of outcome. Fans of Liiga prefer to see the home team win, but do not exhibit as strong a preference for uncertainty of outcome. This differs from recent findings in the sport of baseball and from previous findings for the NHL.

Practical implications

Having a competitive league is not only important for television ratings, but also for in-person attendance in these European hockey leagues. Importance of uncertainty of outcome varies across leagues.

Originality/value

The paper uses financial market prices, betting market odds, as a measure of game expectations (home team win probability) and uncertainty of outcome and applies it to a new setting for three of the top European hockey leagues. The findings illustrate that uncertainty of outcome is important for the KHL and SHL, but statistically insignificant for Liiga.

Details

Managerial Finance, vol. 42 no. 9
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 1 January 1986

J. Cairns, N. Jennett and P.J. Sloane

Since the appearance of Simon Rottenberg's seminal paper on the baseball players' labour market in the Journal of Political Economy (1956), the literature on the economics…

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3096

Abstract

Since the appearance of Simon Rottenberg's seminal paper on the baseball players' labour market in the Journal of Political Economy (1956), the literature on the economics of professional team sports has increased rapidly, fuelled by major changes in the restrictive rules which had pervaded these sports, themselves a consequence of battles in the courts and the collective bargaining arena. These changes have not been limited to North America, to which most of the literature relates, but also apply to Western Europe and Australia in particular. This monograph surveys this literature covering those various parts of the world in order to draw out both theoretical and empirical aspects. However, to argue that the existence of what is now an extensive literature “justifies” such a survey on professional team sports clearly begs a number of questions. Justification can be found in at least two major aspects.

Details

Journal of Economic Studies, vol. 13 no. 1
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 28 October 2014

S. Mahdi Hosseinian and David G. Carmichael

The purpose of this paper is to address a shortfall in the literature dealing with optimal sharing arrangements. In construction projects, where the owner is concerned…

Abstract

Purpose

The purpose of this paper is to address a shortfall in the literature dealing with optimal sharing arrangements. In construction projects, where the owner is concerned about multiple project outcomes (cost, time, quality, […]), there exist no guidelines in the literature on what a sharing arrangement should be between the owner and the contractor. This paper gives that arrangement, under defined risk assumptions on the contractor (risk averse ranging to risk neutral) and the owner (risk neutral). The sharing aligns the contractor's interests with those of the owner.

Design/methodology/approach

The results are based on solving a constrained maximisation problem involving the expected utilities of both the owner and contractor. Construction practitioners were interviewed in a designed experiment to validate the results.

Findings

It is demonstrated that, at the optimum, the proportions of outcomes sharing to the contractor should be higher for outcomes with lower effort cost and a lower level of uncertainty, and by increasing the correlation between outcomes, the fixed component of the contractor’s fee should increase and the proportions to the contractor should decrease.

Research limitations/implications

The theoretical results assume that the contractor is risk-averse ranging to risk-neutral, and that the owner is risk-neutral. The theory is supported through conducting an empirical study based on interviewing a sample of practitioners working for medium-sized contractors, and hence the support is limited to similar situations, until further data are assembled.

Practical implications

By providing a broader understanding of sharing arrangements within contracts, a contribution is made to the current practice of contracts management. The results may be used in the design of contracts, or as benchmarks, by which contracts designed differently, may be compared.

Originality/value

The results address a shortfall in the literature and are an original solution to establishing an optimal multiple-outcome sharing arrangement.

Details

Journal of Financial Management of Property and Construction, vol. 19 no. 3
Type: Research Article
ISSN: 1366-4387

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Article
Publication date: 16 April 2020

Hussein Abdoh and Aktham Maghyereh

The purpose of this study is to examine the effect of product market competition on the oil uncertainty–investment relation.

Abstract

Purpose

The purpose of this study is to examine the effect of product market competition on the oil uncertainty–investment relation.

Design/methodology/approach

The authors use firm-level financial data from the COMPUSTAT database, competition proxies from Hoberg and Phillips (2016) and macroeconomic data on crude oil price uncertainty. Corporate investment is measured as capital expenditure scaled by total assets or as the annual change in (net) total fixed assets plus depreciation. Since our panel data covers a short period (22 years) and the regressions include a combination of a lagged dependent variable and firm fixed effects, the authors apply Blundell and Bond’s (1998) GMM system when regressing corporate investment on the interaction between oil uncertainty and competition.

Findings

Consistent with the theories in the irreversible investment literature, the authors first show that investments are negatively related to oil uncertainty. Second, they show that firms in competitive industries decrease their investments in response to heightened uncertainty by a higher degree than firms in concentrated industries, suggesting that competition can exacerbate negative investment outcomes when success is uncertain. The authors also examine how competition relates to investment asymmetric reactions to positive and negative oil price return volatilities and find a stronger negative relationships between competition and investment-positive oil price volatility, indicating that increasing the probability of a negative outcome due to uncertainty leads firms to reduce investment to a larger extent.

Practical implications

The findings provide useful insights to guide corporate investment decisions under oil price change uncertainty. In particular, if firms can wait for the resolution of uncertainty before deciding to pursue irreversible investment in a competitive market, they can avoid potentially large losses by foregoing investment when the outcomes are unfavorable. This is because competition brings a greater uncertainty to firm performance if the investment outcome is poor, as firms in competitive industries share a large proportion of industry-wide profits with rivals and, thus, competition could erode profit margins and increases the likelihood of being driven out of the market. Hence, firms in competitive markets should balance between strategic preemptive motives and waiting for the resolution of uncertainty before deciding to pursue investment.

Originality/value

This study is the first to examine the effect of competition on the relationship between investment and oil price uncertainty. Moreover, it is the first to examine the effect of competition on the asymmetric response of investment to oil price uncertainty emanating from positive and negative changes in oil price.

Details

International Journal of Managerial Finance, vol. 16 no. 5
Type: Research Article
ISSN: 1743-9132

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Article
Publication date: 9 May 2008

Domingo Verano‐Tacoronte and Santiago Melián‐González

The purpose of this research is to study the relationship between the HR control system and organizational results, examining the moderating effect of uncertainty and HR…

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2981

Abstract

Purpose

The purpose of this research is to study the relationship between the HR control system and organizational results, examining the moderating effect of uncertainty and HR risk behavior.

Design/methodology/approach

The study analyzes the relationship between HR control systems and organizational results introducing two major moderating variables as, uncertainty and risk behavior. The data used for this study comes from questionnaire responses by sales and human resource managers of 108 Spanish firms.

Findings

The empirical results show that these moderating variables have an influence on the success of the control system, but it can be stated that the control system has an independent impact on the organizational and sales force performance.

Research limitations/implications

Small sample size and cross sectional study, and the use of subjective measures of company and HR performance are the main limitations of the work.

Practical implications

To make correct decisions about HR control systems, managers should assess their environment and the composition of the workforce. There is not a control system that is good for all situations.

Originality/value of paper

An analysis was made of an important non‐executive employee group, as the sales force is, and addressed the important issue of control and performance while the literature is focused on management control systems. The study does not limit the performance measures only to company variables, displaying customer satisfaction and human resource performance factors.

Details

International Journal of Manpower, vol. 29 no. 2
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 9 May 2016

Alice H.Y. Hon and Steven S. Lui

The purpose of this paper is twofold. First, the study considers research on creativity and innovation in the field of general management and hospitality. Second, the…

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6627

Abstract

Purpose

The purpose of this paper is twofold. First, the study considers research on creativity and innovation in the field of general management and hospitality. Second, the paper develops a theoretical model to integrate individual- and group-level creativity particularly for service organizations.

Design/methodology/approach

This paper provides a comprehensive, albeit non-inclusive, review of research on creativity and innovation in organizations. The review reveals that hospitality research on creativity and innovation has not matched the new advances in management research, particularly the multilevel nature of creativity and the outcomes of creativity. Thus, to advance research in hospitality, this paper proposes a multilevel model of creativity based on a strategic contingency power theory. This model examines how individual- and group-level uncertainties hinder creativity. Moreover, the model also considers several uncertainty coping strategies and examines individual- and group-level outcomes of creativity.

Findings

The proposed theoretical model integrates individual- and group-level uncertainty determinants of creativity and yields a multilevel approach to creativity. Several testable hypotheses are proposed.

Research limitations/implications

This paper highlights the strategic contingency power approach between individual- and group-level uncertainties in creativity. Uncertainty coping practices that alleviate the negative effects of uncertainties on creativity will be useful to managers and service organizations.

Originality/value

The proposed model provides plausible guidelines that advance creativity research in hospitality management.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 5
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 1 June 1995

Paul Munter and Leslie Kren

Executive compensation and incentive packages have received a greatdeal of attention recently in the professional business literature aswell as from the accounting…

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1717

Abstract

Executive compensation and incentive packages have received a great deal of attention recently in the professional business literature as well as from the accounting standard setters. Examines the design of compensation systems. Suggests that environmental uncertainty and monitoring by the board of directors are both negatively related to the use of outcomebased compensation systems and that additionally, since this topic has both management accounting as well as financial accounting implications, it may provide a more comprehensive framework for investigating control system designs.

Details

Managerial Auditing Journal, vol. 10 no. 4
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 23 September 2013

Ethel Brundin and Veronika Gustafsson

The purpose of this paper is to investigate entrepreneurs’ investment decisions under uncertainty in continued investments where the authors test the role of emotions to…

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3369

Abstract

Purpose

The purpose of this paper is to investigate entrepreneurs’ investment decisions under uncertainty in continued investments where the authors test the role of emotions to continue or discontinue the investment.

Design/methodology/approach

A conjoint analysis is carried out on 101 entrepreneurs’ 3,232 investment decisions. The entrepreneurs were provided with a scenario of an investment where the dependent variable was the entrepreneur's propensity to allocate further resources to the described investment. They assessed their willingness to allocate further resources to the investment on a seven-point Likert-type scale. The independent variables in the experiment were the experienced emotions of the entrepreneur each of which was described by the two levels of high and low.

Findings

It was found that self-confidence, challenge, and hope increase the propensity to continue investments as do increased level of uncertainty. Embarrassment and strain do not increase this propensity, however, high uncertainty decreases the propensity to continue investments. In contrast to the escalation of commitment theory, embarrassment does not make entrepreneurs more prone to invest under uncertainty. Frustration does not yield significant results, which runs contrary to the theory and the hypothesis finds no support.

Research limitations/implications

The paper focussed on a limited number of emotions, and also on one specific moderating factor that impacts the effect of these emotions on the investment decision.

Practical implications

To understand the role of their emotions in investment decisions under different levels of uncertainty may help entrepreneurs to improve the quality of their decision making.

Originality/value

This study is an experiment where practitioner entrepreneurs participate which increases the ecological validity of the study. Emotions can explain, partly, why entrepreneurs persist with some underperforming projects, but not others. Uncertainty is a powerful moderating variable in the decision-making process. The results enhance existing knowledge about the emotive side of entrepreneurs’ propensity to make investment decisions under uncertainty. The results also supplement and refine existing theories on self-justification.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 19 no. 6
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 16 August 2010

Judith M. Whipple and Joseph Roh

The purpose of this paper is to propose using agency theory for assessing the likelihood of quality fade in buyer‐supplier relationships and prescribing contractual…

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3225

Abstract

Purpose

The purpose of this paper is to propose using agency theory for assessing the likelihood of quality fade in buyer‐supplier relationships and prescribing contractual mechanisms for reducing quality fade. In this paper, quality fade, an element of supply chain vulnerability, is defined as the unforeseen deterioration of agreed to or expected quality levels with respect to product and/or service requirements. The use of outcome‐based, behavior‐based, or mix contracts can be used to reduce the likelihood of quality fade and illustrate preferred scenarios for buyer and suppliers.

Design/methodology/approach

This paper proposes a conceptual model for using agency theory to explain and address a type of supply chain vulnerability called quality fade. A 2×2 matrix is proposed that contrasts outcome measurability with outcome uncertainty to illustrate buyer and supplier vulnerability and to suggest contractual mechanisms that can be used to mitigate vulnerability for both parties.

Findings

A typology of governance mechanisms is presented and described with the use of a manufacturer third‐party logistics provider example to illustrate the theoretical framework. Four different scenarios are discussed and described. Contractual mechanisms are provided to mitigate vulnerabilities and reduce quality fade.

Originality/value

Quality fade is a term that has not been described extensively in academic literature but is a term that is relevant in the broader discussion of supply chain vulnerability. Given that quality fade is a behavioral, as opposed to process oriented, approach, it requires a theoretical framework rooted in behavioral considerations. Agency theory is an appropriate framework for studying governance options.

Details

The International Journal of Logistics Management, vol. 21 no. 3
Type: Research Article
ISSN: 0957-4093

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Book part
Publication date: 17 September 2021

Oliver Ibert, Gregory Jackson, Tobias Theel and Lukas Vogelgsang

This study explores the yet understudied productive aspects of uncertainty in the organization of creative collaboration and scrutinizes the practices that allow…

Abstract

This study explores the yet understudied productive aspects of uncertainty in the organization of creative collaboration and scrutinizes the practices that allow participants to fruitfully use it as a resource for the creation of novelty. In contrast to former conceptualizations of uncertainty as a quantity to be reduced through organizing, we apply a qualitative heuristic where uncertainty may shift different dimensions regarding participation (who?), procedure (how?) and content (what?). Based on eight creativity biographies in two creative fields, music production and pharmaceutical development, encompassing 36 semi-structured qualitative interviews, we identify embracing, ignoring, and fixing uncertainty as three distinct, yet interrelated practices to engage with uncertainty and thereby enable the emergence of valuable novelty in interaction. We further discover that the participants shift these practices between the different dimensions of uncertainty during the process of creative collaboration. Moreover, we argue that these shifts are necessary to maintain creativity in collaborative processes. Thereupon, we contribute insights to the so far enigmatic notion of organizing for collaborative creativity.

Details

Organizing Creativity in the Innovation Journey
Type: Book
ISBN: 978-1-83982-874-4

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