Recent Submissions

  • Institutional pressures and the adoption of responsible management education at universities and business schools in Central and Eastern Europe

    Preuss, Lutz; Elms, Heather; Kurdyukov, Roman; Golob, Urša; Zaharia, Rodica Milena; Jalsenjak, Borna; Burg, Ryan; Hardi, Péter; Jacquemod, Julija; Kooskora, Mari; et al. (Wiley, 2023-07-05)
    Business schools, and universities providing business education, from across the globe have increasingly engaged in responsible management education (RME), that is in embedding social, environmental and ethical topics in their teaching and research. However, we still do not fully understand the institutional pressures that have led to the adoption of RME, in particular concerning under-researched regions like Central and Eastern Europe (CEE). Hence, we undertook what is to our knowledge the most comprehensive study into the adoption of RME in CEE to date (including 13 countries: Belarus, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovenia and Ukraine). We find that, with regard to RME, isomorphic pressures seem to shape teaching and research in different ways, which suggests that the idea of a holistic approach to RME, promoted by, for example, the Principles of Responsible Management Education (PRME), needs to be revisited; rather, different trajectories of organizational engagement may emerge for each principle. As a contribution to institutional theory, we discuss how a highly fragmented organizational field—like RME with its multiple dimensions—impacts on notions of actor centrality, where actors achieve centrality with regard to some dimensions of the field but fail to do so for others. In particular, we found that the European Union holds centrality in the area of RME teaching, but not in RME research. Our findings thus suggest that the concept of field centrality needs further clarification.
  • Administrative barriers to trade

    Hornok, Cecília; Koren, Miklós (Elsevier BV, 2015)
    We build a model of administrative barriers to trade to understand how they affect trade volumes, shipping decisions and welfare. Because administrative costs are incurred with every shipment, exporters have to decide how to break up total trade into individual shipments. Consumers value frequent shipments, because they enable them to consume close to their preferred dates. Hence per-shipment costs create a welfare loss. We derive a gravity equation in our model and show that administrative costs can be expressed as bilateral ad-valorem trade costs. We estimate the ad-valorem equivalent in Spanish shipment-level export data and find it to be large. A 50% reduction in per-shipment costs is equivalent to a 9 percentage point reduction in tariffs. Our model and estimates help explain why policy makers emphasize trade facilitation and why trade within customs unions is larger than trade within free trade areas.
  • Learning to import from your peers

    Bisztray, Márta; Koren, Miklós; Szeidl, Adam (Elsevier BV, 2018)
    We use firm-level data from Hungary to estimate knowledge spillovers in importing through fine spatial and managerial networks. By identifying from variation in peers' import experience across source countries, by comparing the spillover from neighboring buildings with a cross-street placebo, and by exploiting plausibly exogenous firm moves, we obtain credible estimates and establish three results. (1) There are significant knowledge spillovers in both spatial and managerial networks. Having a peer which has imported from a particular country more than doubles the probability of starting to import from that country, but the effect quickly decays with distance. (2) Spillovers are heterogeneous: they are stronger when firms or peers are larger or more productive, and exhibit complementarities in firm and peer productivity. (3) The model-implied social multiplier is highly skewed, implying that targeting an import-encouragement policy to firms with many and productive neighbors can make it 26% more effective. These results highlight the benefit of firm clusters in facilitating the diffusion of business practices.
  • Business disruptions from social distancing

    Koren, Miklós; Pető, Rita (Public Library of Science (PLoS), 2020)
    Social distancing interventions can be effective against epidemics but are potentially detrimental for the economy. Businesses that rely heavily on face-to-face communication or close physical proximity when producing a product or providing a service are particularly vulnerable. There is, however, no systematic evidence about the role of human interactions across different lines of business and about which will be the most limited by social distancing. Here we provide theory-based measures of the reliance of U.S. businesses on human interaction, detailed by industry and geographic location. We find that, before the pandemic hit, 43 million workers worked in occupations that rely heavily on face-to-face communication or require close physical proximity to other workers. Many of these workers lost their jobs since. Consistently with our model, employment losses have been largest in sectors that rely heavily on customer contact and where these contacts dropped the most: retail, hotels and restaurants, arts and entertainment and schools. Our results can help quantify the economic costs of social distancing.
  • Media Capture Through Favor Exchange

    Szeidl, Adam; Szucs, Ferenc; Department of Economics and Business (The Econometric Society, 2021)
    We use data from Hungary to establish two results about the relationship between the government and the media. (i) We document large advertising favors from the government to connected media, and large corruption coverage favors from connected media to the government. Our empirical strategy exploits sharp reallocations around changes in media ownership and other events to rule out market‐based explanations. (ii) Under the assumptions of a structural model, we distinguish between owner ideology and favor exchange as the mechanism driving favors. We estimate our model exploiting within‐owner changes in coverage for identification and find that both mechanisms are important. These results imply that targeted government advertising can meaningfully influence content. Counterfactuals show that targeted advertising can also influence owner ideology, by making media ownership more profitable to pro‐government connected investors. Our results are consistent with qualitative evidence from many democracies and suggest that government advertising affects media content worldwide.
  • Using the area under an estimated ROC curve to test the adequacy of binary predictors

    Lieli, Robert P.; Hsu, Yu-Chin; Department of Economics and Business (Taylor & Francis, 2019)
    We consider using the area under an empirical receiver operating characteristic curve to test the hypothesis that a predictive index combined with a range of cutoffs performs no better than pure chance in forecasting a binary outcome. This corresponds to the null hypothesis that the area in question, denoted as AUC, is 1/2. We show that if the predictive index comes from a first-stage regression model estimated over the same data set, then testing the null based on the standard asymptotic normality results leads to severe size distortion in general settings. We then analytically derive the proper asymptotic null distribution of the empirical AUC in a special case; namely, when the first-stage regressors are Bernoulli random variables. This distribution can be utilised to construct a fully in-sample test of H0:AUC=1/2 with correct size and more power than out-of-sample tests based on sample splitting, though practical application becomes cumbersome with more than two regressors.
  • From refuge to trap: formalist misadventures of Poland’s postsocialist legal profession

    Kisilowski, Maciej; Department of Economics and Business (Taylor & Francis, 2019)
    Since 2015 the populist government of the Law and Justice Party in Poland has spearheaded a highly effective campaign against the country’s lawyers, encountering relatively muted social opposition. Using Bourdieuan lenses, the article traces the roots of that remarkable institutional weakness of the Polish legal profession to the highly formalist approach to law and legal thinking that Poland’s lawyers espoused. Prior to the fall of communism, and in democratic Poland, the role of lawyers in society was to act as guardians of “neatness” of the legal system – or that system’s internal clarity, cohesion, and completeness. Such a sterile approach to legal practice was initially attractive, among other reasons, because it protected the legal profession from difficult legitimacy challenges stemming from that profession’s pre-1989 coexistence with the communist regime. With time, however, the refuge that formalism offered became a trap that undermined lawyers’ political and economic power.
  • Intergenerational influence on sustainable consumer attitudes and behaviors: Roles of family communication and peer influence in environmental consumer socialization

    Essiz, Oguzhan; Mandrik, Carter; Department of Economics and Business (Wiley, 2021)
    Intergenerational research on sustainable consumption remains scarce, particularly in relation to which factors may affect the level of intergenerational similarity and the direction of intergenerational transmission. The present study addresses these gaps and adds to the growing body of literature in environmental consumer socialization by examining intergenerational influence on sustainable consumer attitudes and behaviors in a sample of 146 dyads comprised of mothers and college-age daughters. In the domain of intergenerational influence, we study two potential moderating factors suggested in past consumer research: communication effectiveness and peer conformity. Using the co-orientational model and nominal dyad method, we reveal the existence of intergenerational similarity in dyads' sustainable consumer attitudes and behaviors—after accounting for nominal effects— and show that stronger parent–child communication between mother–daughter pairs leads to greater intergenerational similarity, whereas stronger peer influence on daughters reduces intergenerational agreement. Our analysis further suggests the presence of reverse environmental socialization, in which intergenerational influence predominantly occurs from daughter to mother. Dyads' subjective knowledge regarding sustainable consumption provides empirical insights for this co-orientational model finding on reverse intergenerational transfer. Overall, outcomes of this study encourage marketing managers to leverage young-adult offspring in the process of communicating sustainable marketing strategies.
  • Exploring the Value-Action Gap in Green Consumption: Roles of Risk Aversion, Subjective Knowledge, and Gender Differences

    Essiz, Oguzhan; Yurteri, Sidar; Mandrik, Carter; Senyuz, Aysu; Department of Economics and Business (Taylor & Francis, 2023)
    Concern for the environment is widespread and consumers generally hold favorable values toward green consumption; however, they often struggle to translate these values into actual green consumption behaviors. This so-called “green gap” has attracted much research interest in recent years, yet questions remain regarding the factors that may influence it and what form this influence takes. Taking the cognitive view in studying green consumption, we seek to shed light on the green gap by empirically testing the roles of risk aversion and subjective knowledge as potential moderators of the green value-action disparity. Proposing a moderated moderation model, we additionally explore the categorical interaction effect of gender differences with risk aversion and subjective knowledge in predicting green purchase behaviors. Using structured survey data (N = 328), we demonstrate that consumers lower in general risk aversion and higher in green subjective knowledge have greater consistency between their values and behaviors in the green consumption context. Further, we reveal a conditional interaction effect of gender in which women were less risk-averse and more knowledgeable than men, resulting in greater green value-behavior consistency. Our study contributes to the growing body of research on sustainable consumption by offering psychographic explanations for the inconsistency between what consumers say and do when it comes to green purchasing. Implications of this study encourage consumer researchers, global managers, and public policy makers, when developing green marketing programs or when seeking to strengthen the green value-action relationship in general, to consider how risk aversion and subjective knowledge may interact with gender differences.
  • Bargaining and Nonbargaining Nonmarket Strategies: A General Model and Data From Post-Communist Countries

    Akbar, Yusaf H.; Kisilowski, Maciej; Department of Economics and Business (SAGE, 2023)
    This article addresses a theoretical gap in the literature by highlighting the significance of nonbargaining nonmarket strategies of firms. Relying on neo-statist political theory, we propose a theoretical model that hypothesizes a reliance on nonbargaining nonmarket strategies in situations marked by historically and situationally conditioned weakness of societal forces relevant to a firm (including the firm itself) as well as when relevant state institutions display high degrees of professional, structural, and ideological bureaucratic insularity. We survey 165 managers (each representing a separate firm) from 14 countries in Eastern Europe and Central Asia about the strategic importance of the nonmarket strategic initiatives. Our novel survey instrument captures a broader range of nonmarket strategic initiatives than previous empirical research has examined. The survey results provide preliminary support for our model, although the findings suggest the need for more research in different regional contexts.
  • A társadalmi felelősségvállalás és a munkahelyi drog- és alkohol-megelőzés aspektusai Magyarországon

    Hardi, Péter; Radácsi, Gergely; Department of Economics and Business (Center for Business and Society, CEU Business SchoolBudapest, 2009)
  • Global integrity survey report 2013

    Department of Economics and Business (Center for Integrity in Business and Government (CIBG) CEUBudapest, 2013)
  • Per-shipment costs and the lumpiness of international trade

    Hornok, Cecília; Koren, Miklós; Department of Economics and Business (2015)
    Using detailed U.S. and Spanish export data, we document that trade costs of a per-shipment nature are associated with less frequent and larger shipments (i.e., more lumpiness) in international trade. This finding is pervasive across broad product categories, but most apparent for industrial supplies, parts and accessories, and food products.
  • The Emergence of a CEE-Regional Multinational. A narrative of the MOL Group plc

    Buzady, Zoltan; Department of Economics and Business (Rainer Hampp VerlagMering, 2010)
    This article describes the transition of MOL, the Hungarian Oil and Gas Company, from a state-owned enterprise to a privately owned regional-multinational company and outlines its growth to become a leading player in the CEE region. It also illustrates how the company went through the internal restructuring process before and during its acquisition period. Over three distinct development phases it then emerged as a new species in the CEE, as a “regional multinational”. The case also gives valuable strategic insights into the oil industry of the majority of CEE countries.
  • The estimation of three-dimensional fixed effects panel data models

    Mátyás, László; Balázsi, László; Department of Economics and Business (2011)
    The paper introduces for the most frequently used three-dimensional fixed effects panel data models the appropriate Within estimators. It analyzes the behaviour of these estimators in the case of no-self-flow data, unbalanced data and dynamic autoregressive models.
  • Will software eat your food? Digital transformation of agriculture

    Bőgel, György; Department of Economics and Business (CEU Business SchoolBudapest, 2015)
    The world's rapidly growing population and increasing concern everywhere about food security and environmental sustainability requires - really demands - that agriculture accelerates its digital transformation and develops its smart digital ecosystem (SDE). Those systems are spreading fast in other sectors, whereas agriculture lags greatly behind. The professional introduction of a smart digital ecosystem offers large improvement opportunities in agricultural production, food security, and environmental sustainability. At the same time, fast developing technical solutions and the disruptive nature of technology innovation offer unique entrepreneurial opportunities. This study first defines SDEs and then demonstrates their rapid but uneven spread in the global economy. The author offers a framework for classifying where a particular industry, branch or producing unit may be located in the evolving activity-sector matrix used for describing SDEs. Applying that matrix, he finds that the diffusion of technology innovation in agriculture is slower than expected. Much of the rest of the article demonstrates the large potential gains that the agricultural sector could enjoy by moving faster and better in the SDE area, offering case studies on the methods and experiences of some of the large and small pioneers.
  • The impact of EU accession on Hungarian SMEs

    Mayer, Charles S.; Department of Economics and Business (Business Perspectives, 2009)
    The enlargement of the European Union on May 1, 2004 has presented many opportunities and challenges for SMEs in the newly admitted countries. This paper examines the history of five Hungarian companies, and what the enlargement has meant for them. They are Wizz Air, Artis Restaurant, Lidl/CBA, Kaposplast and Subway Sandwich. The impact of heightened competition, increased market opportunities and environmental differences are examined.
  • Interfirm networks in the Hungarian wine industry

    Hardi, Péter; Buti, Krisztina; Sidlovits, Diana; Department of Economics and Business (CEU Business SchoolBudapest, 2010)
  • Study on the impact of business education on the Georgian economy

    Buzády, Zoltán; Romelashvili, Helen; Department of Economics and Business (CEU Business SchoolBudapest, 2010)

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