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Market Strategies (market + strategy)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	83%

Selected Abstracts

The Impact of Capital Structure on Efficient Sourcing and Strategic Behavior

FINANCIAL REVIEW, Issue 4 2000
Sudha Krishnaswami
D43/G32/L14 Abstract We model the capital structure choice of a firm that operates under imperfect competition. Extant literature demonstrates that debt commits a firm to an aggressive output stance, which is an advantage to the firm under Cournot competition. However, empirical evidence, indicates that debt is a disadvantage under imperfect competition. We reconcile the theory with the evidence by incorporating firms' relations with their suppliers, in a model of strategic firmrival interactions. Under imperfect competition and incomplete contracting, we show that although debt financing improves a firm's input sourcing efficiency it could also benefit the firm's rivals by lowering their input costs. This effect offsets the benefits due to aggressive product market strategies that result from increased debt. Under certain conditions this subsidy effect is sufficiently strong that debt is suboptimal in equilibrium and leads to an increase in rival's shareholder value. [source]

Communication Flows in International Product Innovation Teams

THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 5 2000
Rudy K. Moenaert
Recently, we have witnessed a strong growth in the internationalization of many firms' product development activities. However, the lack of attention devoted by scientific research to the management of international innovation contrasts sharply with the importance attached to it as a cornerstone of international business success. Although several empirical studies and normative theories have specified the communication requirements in innovation teams, an empirically based insight is definitely needed on the communication requirements and requirements that prevail in the complex context of international innovation teams, in which the participants are located in different company units, countries, and cultures. This article addresses the following research question: viewing international innovation as an interfunctional activity, what are the communication requirements an international innovation team is facing, and what are the communication capabilities (interface mechanisms) that may be adopted to initiate, develop, and launch the new product effectively and efficiently? An extensive case study research project was designed to develop a comprehensive theoretical framework. Over a two year time period, the research team has investigated selected innovation projects in four European multinational corporations. The analysis of the case study data suggests five requirements that determine the effectiveness and efficiency of communication in international product development teams: network transparency, knowledge codification, knowledge credibility, communication cost, secrecy. To cope with these communication requirements, organizations may create firm level capabilities (parallel structures, cross-functional and inter-unit climate, communication infrastructure, goal congruence) and team level capabilities (core team, team leadership, formalization, procedural justice). The evidence from the in-depth case study research indicates that these mechanisms provide a parsimonious and powerful approach to address the communication requirements in international product innovation teams. After the information processing framework proposed by Tushman and Nadler [124], the adoption of these mechanisms is expected to improve innovation effectiveness. This holds important consequences for the management of international product innovation projects. First, the innovating firm must balance centralization and decentralization, employ formal as well as informal strategies, and integrate ad-hoc and permanent strategies. Second, it highlights the critical role of the project leader. Given the fact that companies often select the most available person, rather than the best person for the job, the allocation of light weight project leaders may create heavyweight problems in international teams. Third, following the argument in favor of procedural justice, the absence of involvement may severely hinder cross-functional commitment to international innovation projects. Fourth, the innovating firm must also actively manage the communication flows with external parties. Failure to do so may result in flawed specifications, and a limited understanding about product design and market strategies. [source]

Structural Adjustment, Spatial Imaginaries, and "Piracy" in Guatemala's Apparel Industry

ANTHROPOLOGY OF WORK REVIEW, Issue 1 2009
Kedron Thomas
Abstract This article examines how urban violence influences the everyday lives of Guatemalan Maya entrepreneurs who make nontraditional clothing to sell in highland markets and Guatemala City. How urban space is imagined and experienced among apparel producers reflects a process of class differentiation linked to Guatemala's entrance into international trade and legal agreements. Realities of uneven access and unequal resource distribution allow some producers to take advantage of formal markets and official networks in the capital city, while others avoid the city streets out of fear. Such inequalities are obscured when entrepreneurs who benefit from urban connections talk about relative success in terms of a moral division between those who engage in brand piracy and those who do not. In line with an official discourse that blames "pirates," gangs, and other marginalized groups for the country's social and economic ills, apparel producers who do not copy popular brands often view those who do as immoral and illegal. The case study presented here is fruitful ground for theorizing how cultural representations of urban space influence market strategies and moral logics amidst processes of economic and legal restructuring. [source]

External labor market strategy and career success: CEO careers in Europe and the United States

HUMAN RESOURCE MANAGEMENT, Issue 3 2009
Monika Hamori
Abstract In this paper, we examine the career histories of the chief executive officers (CEOs) affiliated with the 500 largest organizations in Europe and the 500 largest in the United States. Our purpose is to determine whether frequent career moves across employers, a phenomenon we label an "external labor market strategy," brings greater career rewards than moves inside the same organization. The results reveal that an external labor market strategy is negatively related to career success. On both continents, CEOs who have spent a smaller fraction of their career in their current organization or have changed employers more often have taken a longer time from the start of their career to be promoted to the most influential corporate positions. The labor market institutions in the 22 countries sampled do not influence the relationship between an external labor market strategy and career success, while the specific geographic region in which the employers are located has a limited impact on this relationship. © 2009 Wiley Periodicals, Inc. [source]