Michael J. Pisani

Self-employment in the era of the new economic model in Latin America: a case study from Nicaragua

Using data from the 1993 and 1998 Nicaraguan Living Standards Measurement Survey, this paper analyses the desirability of self-employment for Nicaraguan men and women over two points in time in a changing economic environment characterized by market-based reforms called the New Economic Model. Switching regressions of the self-employed and waged and salaried sectoral choice suggest that experience is the major determinant of self-employment for both Nicaraguan men and women. Mixed findings are reported for sectoral selection suggesting that the self-employed men, depending upon current economic conditions, may alternate back and forth between the sector (self-employment or waged and salaried employment) with the highest returns. For women, improvement in economic conditions reflected negative selection in both sectors suggesting that much of the economic gains in the 1990s accrued to men.

Is Six Sigma culture bound? A conceptual model and propositions for further inquiry

Six Sigma has been developed and refined by American companies in an American culture. As such, it is based on American values and behaviours. This paper suggests that applying Six Sigma in other national cultures may find discrepancies between their cultural values and behaviours and the assumptions of how the Six Sigma process improvement methodology is to be implemented. A conceptual model utilising Hofstedes cultural dimensions is proposed to examine the potential national cultural impact at each stage of the Six Sigma process. Examples of cultural disparities in the Six Sigma methodology are presented utilising Hofstedes dimensions.

Cross-border informal entrepreneurs across the South Texas–Northern Mexico boundary

The border acts as a conduit for some, a funnel for others and as a barrier for many engaged in economic and entrepreneurial activities in South Texas (US) and Northern Mexico. Within this border zone, there are many informal entrepreneurs who actively use the border not only as a wedge against the competition, but also as a lever to gain competitive advantage. Utilizing both qualitative (600 ethnographic interviews) and quantitative (526 survey respondents) research methods, we examine informal cross-border entrepreneurs within the South Texas–Northern Mexico border corridor. Our most salient empirical results indicate: (1) the undocumented are nearly nine times more likely to be engaged in informal cross-border economic activity than US citizens and (2) those informals who possess at least one business permit to operate on either side of the border were two to three times more likely to engage in cross-border activity than those respondents without a business permit. Our ethnographic accounts provide context for our findings

Internationalizing the Community College Experience

September 11, 2001 heightened the need for America to train a new generation of leaders with the ability to navigate different cultures and to succeed in the international marketplace. This paper seeks to place the community college firmly in the mix of developing such leaders through the internationalization of the community college experience. Specifically, we suggest that a focus on the 3Is— Internet (technology in the classroom); Internationalization of the curriculum (encouraging international activities in the classroom); and Interdependency (understanding of other cultures, languages, and customs)—through the illustration of case studies, will create a more educated global citizenry.

Exchange rate premia and discounts for retail purchases using Mexican pesos in El Paso, Texas

Abstract This paper studies the exchange rates at which Mexican pesos are accepted for retail purchases in El Paso, Texas. A stratified random sample of 586 participating firms is surveyed to examine two aspects of reverse dollarization in the El Paso/Ciudad Juárez border region. The first is to determine the percentage of retail businesses in El Paso that accept foreign currency in the form of Mexican pesos. The results suggest that just over 13.1% (77/586) of all retail firms in this market accept pesos, which on average, comprise 4.35% of total sales for those firms. The second is to calculate the effective exchange rate at which firms accept Mexican pesos. We find that 68.5% of firms accepting the peso do so at a premium. We discern these two aspects further utilizing various multivariate analyses.

An American Management Training Model in a Latin American Context: Some Implications for International Business Consultants.

Abstract This paper evaluates an American management training program within a Latin American context. The efficacy of using exported pre-packaged training materials within a different cultural realm is explored through the use of a management training case study from rural Nicaragua. The implications for international business consultants facilitating training sessions abroad are examined and the preliminary findings suggest that exported management training programs ought to be modified to the Latin American environment to be most effective.

Utilizing Informal Household-Work Substitutes along the US–Mexico Border: Evidence from South Texas

Abstract Utilizing a unique sample of 357 consumers from South Texas, this paper explores the informal or “off the books” consumption of house-work substitutes. Specifically, two ubiquitous house-work services, house cleaning and yard work, are examined. Regionally, these household maid and gardening services are typically exchanged within an informal cross-border market. As such the determinants of consuming these services are estimated from the perspective of the South Texas borderlands informal consumer. Among the key results, income is an important marker in the ability to consume house-work substitutes where those with more resources are able to pass along house-work duties to others. Hence, informal maid and gardening services are normal goods. Other results and policy considerations are discussed.

Conceptualizing Household Consumption Informality in the South Texas Borderlands

AbstractIn this paper we introduce a conceptual model and corresponding research propositions for consumption informality, utilizing households as the unit of analysis and the South Texas borderlands as our geographic exemplar. The model connects demographic and facilitation mechanisms as the primary determinants of consumption informality. In an initial and exploratory appraisal of the model, we find that a majority of households engage in informal consumption, when modeled, utilizing household work substitution services; and hence, we offer preliminary support for the conceptual model.

When informality meets formality: evidence from China

Purpose n n n n nThis study aims to explore “what impact does competition from informal enterprises have on formal firms” within the Chinese economic and business environment. n n n n nDesign/methodology/approach n n n n nThe paper opted for an exploratory study utilizing the cross-sectional survey data “2012 China Enterprise Survey” conducted by the World Bank. The survey is composed of approximately 200 business-related questions across the spectrum of business operations. In all, 2,700 privately owned Chinese firms are included in the logistic regression analysis. n n n n nFindings n n n n nResults show the impact of informal firm competition upon formal firms in China are influenced by geographical location, industry sector, ownership profile, governmental ownership, online presence and the extent of obeying labor regulations or the time spent in handling the governmental regulatory environment. There is a competitive and complementary simultaneous intertwined relationship between formal and informal economy. It occurs in a formal economy not fully divorced from the structural inertia of the planned economy as it transitions to a market-based economy. n n n n nPractical implications n n n n nThis paper extended the assumption of institutional theory and presented it as a dynamic view of the evolution of organizations. It contributes by offering a simultaneous dual relationship between the formal and informal economy. It also adds one more potential feature of populations in the population ecology theory. n n n n nOriginality/value n n n n nThis exploratory paper empirically examines the impacts of informal sector enterprises on formal sectors firms in China and proposes a dual force effect of the informal economy to the formal economy given the current Chinese institutional environment. The study also provides a platform for further research on the interactions between the formal and informal sectors in emerging markets.