Carmela Di Mauro

Attitudes to risk and attitudes to uncertainty: experimental evidence

In a series of experiments the interactions among individual attitudes towards risk and uncertainty, the sign of the outcome domain, and the way uncertainty is represented are tested. This is done in a unified framework, eliciting individual values by means of a second price auction. Results confirm the presence of the well-known fourfold pattern of risk attitude (risk aversion for gains and risk seeking for losses at high probability, and risk seeking for gains and risk aversion for losses at low probability) and show that this pattern can also be extended to uncertainty. In the valuation of losses the modal pattern is decreasing risk and uncertainty aversion as the probability of loss increases, while increasing risk and uncertainty aversion is observed for gains. Moreover, it is found that the size of reaction to uncertainty does not depend on the outcome domain, and that it persists in the face of an incentive-compatible mechanism to elicit preferences.

Motivations of manufacturing reshoring: an interpretative framework

Purpose – The purpose of this paper is to present a framework for the analysis of reshoring. The framework is then applied to analyze motivations for reshoring, as they emerge from extant literature and from new evidence collected. Design/methodology/approach – The authors start by formulating a literature-grounded definition of reshoring and reviewing some key theoretical approaches for international manufacturing location. In light of these theories, the authors then propose an interpretative framework for the analysis of reshoring motivations. Finally, the authors provide new evidence on this phenomenon, by presenting the findings of an extensive data collection of reshoring cases built on secondary data. Findings – The authors show that a vast array of single drivers of reshoring can be extracted from extant literature; however, the interpretative framework eventually highlights four main typologies of reshoring motivations, thus allowing for a more sound comprehension of why the phenomenon happens. T...

An Experimental Investigation of the Impact of Ambiguity on the Valuation of Self-Insurance and Self-Protection

We build two experimental markets to examine individual valuations of risk reductions with two risk-management tools: self-insurance and self-protection. We find no positive evidence that the risk-reducing mechanisms constitute a “frame.” Ambiguity in the probability on average affects valuation only weakly, and changes in the representation of ambiguity do not alter valuation. Finally, unlike the results obtained by Hogarth and Kunreuther for the case of market insurance, our findings do not provide a strong support for the “Anchoring and Adjustment” ambiguity model.

Manufacturing Back-Reshoring as a Nonlinear Internationalization Process

Abstract Purpose The first aim of the chapter is to offer a characterization of back-reshoring as a possible step of the firm’s nonlinear internationalization process. The second aim is to review the empirical literature on back-reshoring and to complement it with the findings of an extensive data collection. Methodology/approach In this chapter we adopted an explorative approach building on both theoretical and empirical literature from the fields of international business and international operations Management. We also collected secondary data on back-reshoring decisions in order to define the magnitude of the investigated phenomenon and to offer a primary characterization. Findings Our findings confirm that, though it cannot be considered a generalized trend, back-reshoring is a very topical issue for international business scholars. It represents an autonomous phenomenon consistent with the idea of nonlinear internationalization process. Research limitations/implications The chapter is based on cross-sectional data. Longitudinal research is required in order to address the proposed research questions and help understanding “how much” and what kind of manufacturing will be housed in western countries in the near future. Originality/value This is the first attempt to conceptualize back-reshoring as a possible step of the firms’ internationalization process. It is also the first chapter that summarizes and discusses the literature and empirical evidence on back-reshoring emerging from a wide range of countries.

Ex ante and ex post moral hazard in compensation for income losses: results from an experiment

Abstract Compensation for income losses may create a problem of double moral hazard: the party at risk may not undertake any risk-reducing effort, and if the extent of the loss suffered is unobservable to the party liable for compensation, the size of claim may be exaggerated. This paper uses experimental methods to investigate the effort and reporting decisions of an individual subject to the risk of a monetary loss. We find that the decision to over-report the loss suffered is sensitive to the probability of obtaining compensation, as intuition suggests. However, most subjects chose to expend effort ex ante although it would have been rational not to do so.

Hospital safety climate and safety behavior: A social exchange perspective

BACKGROUND Safety climate is considered beneficial to the improvement of hospital safety outcomes. Nevertheless, the relations between two of its key constituents, namely those stemming from leader-subordinate relations and coworker support for safety, are still to be fully ascertained. PURPOSE This article uses the theoretical lens of Social Exchange Theory to study the joint impact of leader-member exchange in the safety sphere and coworker support for safety on safety-related behavior at the hospital ward level. Social exchange constructs are further related to the existence of a shame-/blame-free environment, seen as a potential antecedent of safety behavior. RESEARCH DESIGN A cross-sectional study including 166 inpatients in hospital wards belonging to 10 public hospitals in Italy was undertaken to test the hypotheses developed. METHODOLOGY Hypothesized relations have been analyzed through a fully mediated multilevel structural equation model. This methodology allows studying behavior at the individual level, while keeping into account the heterogeneity among hospital specialties. FINDINGS Results suggest that the linkage between leader support for safety and individual safety behavior is mediated by coworker support on safety issues and by the creation of a shame-free environment. PRACTICAL IMPLICATIONS These findings call for the creation of a safety climate in which managerial efforts should be directed not only to the provision of new safety resources and the enforcement of safety rules but also to the encouragement of teamwork and freedom to report errors as ways to foster the capacity of the staff to communicate, share, and learn from each other.

Successful digital transformations need a focus on the individual

Digitalization represents a challenge for organizations. Some organizational functions such as purchasing, sales, logistics and in general all those that are part of the wider area of supply chain management will be asked to achieve a closer integration to fully exploit the potential of big data and business analytics. In order to achieve the successful implementation of digitalization, organizations need to invest in staff training, empower employees, change the organizational culture to embrace the key role of analytics for the company, and hire leaders who actively support digitalization.

Work engagement in public hospitals: a social exchange approach

Abstract We develop and test a model that envisages work engagement in public services as determined by interactions with supervisor and co-workers. Specifically, we apply the framework of Social Exchange Theory to explore the impact of Leader–Member exchange (LMX) and Team–Member exchange (TMX) on Work Engagement in the provision of health care in public hospitals. Our investigation suggests that both LMX and TMX represent significant factors associated with work engagement among the hospital medical staff.

Does Religious Diversity in Health Team Composition Affect Efficiency? Evidence from Dubai

Team cultural diversity, the degree to which working team members differ in culture-related factors, may affect healthcare teams’ outcomes. This paper focuses on one particular source of cultural diversity, namely religion, and examines its relation to the production efficiency of hospital wards. Building on the categorization-elaboration model of organizational diversity, the authors test an empirical model positing that team religious diversity has non-linear effects on efficiency, and considering the role of moderating variables of the relation diversity–efficiency. Empirically, the authors adopt a two-step approach, whereby the first step applies data envelopment analysis to estimate efficiency scores for each team, and the second investigates the effect of diversity and of moderating variables. The model is tested on a sample of hospital wards from three large hospitals in Dubai. The results suggest an inverse U-shaped relation between religious diversity and the wards’ efficiency. Evidence is provided that the relation is moderated by task complexity, task conflict, team leader tenure and diversity in nationality. This study advances research on the management of hospital team diversity by emphasizing the complexity of diversity effects and the importance of contextual factors.

Prices in experimental asset markets under uncertainty

This paper presents an experiment which investigates whether asset prices are affected in markets where state probabilities are not exactly known and traders have to form subjective probabilities of payoffs. Results show that the presence of vague probabilities leads to higher average prices with respect to assets characterised by known probabilities. However, prices under known and vague probabilities draw closer when traders get a sounder understanding of how to arbitrate between markets.This paper presents an experiment which investigates whether asset prices are affected in markets where state probabilities are not exactly known and traders have to form subjective probabilities of payoffs. Results show that the presence of vague probabilities leads to higher average prices with respect to assets characterised by known probabilities. However, prices under known and vague probabilities draw closer when traders get a sounder understanding of how to arbitrate between markets.