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Selected AbstractsExchange Agreements Facilitate CollusionGERMAN ECONOMIC REVIEW, Issue 2 2001Hans-Theo Normann A duopoly model with quantity competition is analyzed in which firms collude in two markets. There is specialization in production in order to promote efficiency. Firms may then either exclusively market one good each, or they may agree to exchange goods and cross-supply a part of the production to the other firm. It is shown that, compared to specialization in marketing, positive exchanges of goods relax the incentive constraints that limit the extent of collusion. [source] R&D spillovers and strategic delegation in oligopolistic contestsMANAGERIAL AND DECISION ECONOMICS, Issue 3 2004Matthias Kräkel Considering oligopolistic contests with R&D spillovers and strategic delegation three results can be obtained: (1) There exist multiple asymmetric equilibria where one owner highly favors sales as a basis for his manager's incentives which drives the other firm out of the market. (2) If R&D spillovers are zero, a managerial firm will have a strong strategic advantage when competing with an entrepreneurial firm. If both owners endogenously decide about delegation, each owner's dominant strategy will be to delegate, given that the manager's reservation value is not too large. (3) If R&D spillovers are maximal, collusive market outcomes become very likely, which makes strategic delegation less important. Copyright © 2004 John Wiley & Sons, Ltd. [source] Strategic behavior in a service industryMANAGERIAL AND DECISION ECONOMICS, Issue 2 2002Pekka Ilmakunnas A model of service duopoly is formulated, where the arrival of customers and their service time in the firm are stochastic. The firms first choose the service capacity, and given the capacity they then choose the price in a Bertrand competition. Capacity choices have a negative externality on the competitor, since increased capacity in one firm decreases its expected full price (price plus cost of waiting) and leads to a flow of customers from the other firm. If the firms choose capacities strategically, it is optimal to underinvest compared to the non-strategic case, but this result may arise in different ways. By underinvesting the firms commit themselves to longer queues (lower quality) to relax price competition. Copyright © 2002 John Wiley & Sons, Ltd. [source] Optimal Regulation of Cooperative R&D Under Incomplete InformationTHE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 1 2004Isabelle Brocas A regulator offers a cooperation contract to two firms to develop a research project. The contract provides incentives to encourage skill-sharing and coordinate subsequent efforts. Innovators must get informational rents to disclose their privately known skills, which results in distorting R&D efforts with respect to the first-best level. When efforts are strategic complements, both efforts are distorted downwards. By contrast, when efforts are strategic substitutes, the effort of the firm with most valuable skills is distorted downwards (to decrease rents) and the effort of the other firm is distorted upwards (to compensate the previous efficiency loss). [source] DEFECTING FROM R&D COOPERATIONAUSTRALIAN ECONOMIC PAPERS, Issue 3 2006GAMAL ATALLAH This paper introduces defection into the strategic R&D model. In defecting, a firm cheats by choosing its R&D expenditures to maximise its own profits, instead of maximising the joint profits of the cooperating firms. Two cooperative environments are considered: R&D cartelisation, where firms coordinate R&D activities; and RJV cartelisation, where firms coordinate R&D activities and share information. Under R&D cartelisation, defection entails an increase (decrease) in R&D and effective spillovers for low (high) spillovers; whereas under RJV cartelisation, defection always entails a decrease in R&D and effective spillovers. Under R&D cartelisation, consumer surplus and total welfare increase (decrease) with defection when spillovers are low (high). Whereas consumer surplus and welfare always decrease with defection under RJV cartelisation. Under R&D cartelisation, the incentives for defection first decrease then increase with spillovers; they also increase with the size of the market, but decline with production costs and R&D costs. Moreover, the incentives for defection are higher under RJV cartelisation. With low spillovers under RJV cartelisation, a firm prefers to be subject to defection by the other firm, to not cooperating at all. Punishment for defection is considered, under the form of abstaining from information sharing. [source] The Difficult Client-Acceptance Decision in Canadian Audit Firms: A Field Investigation,CONTEMPORARY ACCOUNTING RESEARCH, Issue 2 2001Yves Gendron Abstract Auditing is often depicted in scientific and professional literature as being subject to conflicting forces, such as mechanization versus flexibility, and professionalism versus commercialism. This paper examines how auditors actually make the client-acceptance decision in the midst of these forces. The investigation was conducted via a field study at three Big 6 firms located in Canada. The results show that in all firms the client-acceptance decision process in action is largely flexible, being characterized by a high degree of informal communication and the adaptation of the client-acceptance written policies and decision aids to circumstances. Furthermore, while commercialism in one firm (A) has a significant influence on the decision process, in the two other firms (B and C) the decision process is mostly consistent with professionalism. This result conflicts with the concerns that North American regulators have recently expressed about auditors' professionalism. [source] THE PROCYCLICAL LEVERAGE EFFECT OF COLLATERAL VALUE ON BANK LOANS,EVIDENCE FROM THE TRANSACTION DATA OF TAIWANECONOMIC INQUIRY, Issue 2 2007NAN-KUANG CHEN We investigated the empirical relationship between firms' collateral values and land-secured loans over asset price cycles. A simultaneous equation model of loan demand and supply was estimated using a transaction-level data set from Taiwan. The data set contains collateral information and identifies lenders and borrowers. We found that the value of collateralizable assets has positive and significant effects on loan amounts and that the leverage effect of collateral is procyclical to asset price cycles. Firms in the electronics industry, the star industry in the sample period, are found to borrow more than other firms do at each marginal dollar of collateral. (JEL C50, E30, G20) [source] The Impact of Interorganizational Imitation on New Venture International Entry and PerformanceENTREPRENEURSHIP THEORY AND PRACTICE, Issue 1 2010Stephanie A. Fernhaber We examine the impact of interorganizational imitation on new venture international entry and subsequent performance. Using a sample of 150 U.S.-based publicly held new ventures, we find that new venture international entry is in part an imitative response to the internationalization of other firms in the venture's home country industry and/or subsets of firms with certain traits or outcomes. We also find that interorganizational imitation moderates the relationship between new venture international entry and profitability, but not the relationship between new venture international entry and sales growth. These findings contribute to the growing body of literature on new venture internationalization. [source] Why Do Some Family Businesses Out-Compete?ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006Governance, Long-Term Orientations, Sustainable Capability This article seeks to link the domains of corporate governance, investment policies, competitive asymmetries, and sustainable capabilities. Conditions such as concentrated ownership, lengthy tenures, and profound business expertise give some family-controlled business (FCB) owners the discretion, incentive, knowledge, and ultimately, the resources to invest deeply in the future of the firm. These long-term investments accrue from particular governance conditions and engender competitive asymmetries,organizational qualities that are hard for other firms to copy, and thus, if tied to the value chain, create capabilities that are sustainable. Investments in staff and training, e.g., create tacit knowledge and preserve it within the firm. Investments in enduring relationships with partners enhance access to resources and free firms to focus on core competencies. And devotion to a compelling mission dedicates most of these investments to a core competency. When such investments are farsighted, orchestrated, and ongoing, capabilities will tend to evolve in a cumulative trajectory, making them doubly hard to imitate and thereby extending competitive advantage. Arguments are supported by making reference to the literature on corporate governance and agency theory and to emerging research on FCBs. [source] Can Diversification Create Value?FINANCIAL MANAGEMENT, Issue 1 2005Evidence from the Electric Utility Industry Despite SEC and state-level resistance, and contrary to the trend pursued by other firms, many electric utilities have diversified into non-electric and unregulated businesses. Moreover, this failure to focus has been rewarded with higher firm values, again contrary to the discounts documented in the literature for other diversifying firms. Prior literature has questioned whether these premiums (or discounts) can be attributed to diversification per se. Rather, these premiums could arise from the characteristics of the diversifying firms, which have then endogenously chosen to diversify. In a new approach, where regulation can make the diversification decision largely exogenous, we examine the investment policies of the comparable electric-segments in the diversifying and non-diversifying utilities. We find that single-segment electric utilities over-invest compared to diversifying utilities, which explains their diversification premiums and implies that diversification can create value by opening up new investment opportunities. [source] The determinants of corporate sustainability performanceACCOUNTING & FINANCE, Issue 1 2010Tracy Artiach M14 Abstract This paper investigates the factors that drive high levels of corporate sustainability performance (CSP), as proxied by membership of the Dow Jones Sustainability World Index. Using a stakeholder framework, we examine the incentives for US firms to invest in sustainability principles and develop a number of hypotheses that relate CSP to firm-specific characteristics. Our results indicate that leading CSP firms are significantly larger, have higher levels of growth and a higher return on equity than conventional firms. Contrary to our predictions, leading CSP firms do not have greater free cash flows or lower leverage than other firms. [source] Accounting Choices and Director Interlocks: A Social Network Approach to the Voluntary Expensing of Stock Option GrantsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 9-10 2008Eugene Kang Abstract:, We adopt a social network perspective of accounting choices and argue that voluntary expensing of stock option grants by firms may be driven by social influence and learning within a network of director interlocks. We find that firms are more likely to expense stock option grants voluntarily when they have inside director interlocks with (1) other firms that do likewise, and (2) institutional investors of firms accused of financial reporting fraud. This study contributes to extant research by highlighting that a social network approach complements a cost-and-benefit approach (or an economic perspective) when examining the accounting practices of firms. [source] Managing Earnings with Intercorporate InvestmentsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 5-6 2006Øyvind Bøhren Abstract:, We explore to what extent firms deliberately manage their financial reports by exploiting the flexibility of generally accepted accounting principles. Using a sample of Oslo Stock Exchange-listed firms with 20,50% equity holdings in other firms, we find that firms with high financial leverage tend to maximize reported earnings from these investments through their choice between the cost method and the equity method, possibly in an attempt to reduce debt renegotiation costs or to avoid regulatory attention. In contrast, managers do not systematically bias reported earnings to extract private benefits or to signal revised expectations about future cash flows. Firms use different earnings management tools in a consistent way, as the earnings effect of the cost/equity choice is not offset by discretionary accruals. [source] Consumer response to tobacco smoke in service settingsJOURNAL OF CONSUMER BEHAVIOUR, Issue 4 2010Frederic B. Kraft Establishing smoking policies which accommodate customers' smoking preferences is a major problem for restaurants, bars, hotels, and other firms in the service industry. This study is based on the premise that tobacco smoke can be considered a component of both the physical and ambient retail service environment. Because of legal and ethical concerns, the presence or absence of environmental tobacco smoke (ETS) in two types of eating facilities (bar and fine dining restaurant) was operationalized by the presentation to respondents of photographs which pictured customers in a setting where smoking was either present or absent. The success of this method of manipulation of the treatment variable was assessed with a thought listing procedure. Thought listing responses indicate that both treatments (type of facility and smoking policy) were adequately conveyed by the photographs. Results indicate that cognitive, emotional, and behavioral responses were all negatively affected by the presence of tobacco smoke. The conclusion is that managers who permit smoking in their facilities risk losing non-smoking patrons while smokers are little affected by either the presence or absence of smoke. The major contributions of this study include both the exploration of tobacco smoke as part of the retail service environment for eating establishments and the use of thought listings as a manipulation check for variables which were manipulated through use of photographs depicting the treatment conditions. Copyright © 2010 John Wiley & Sons, Ltd. [source] Differential effects of strain on two forms of work performance: individual employee sales and creativityJOURNAL OF ORGANIZATIONAL BEHAVIOR, Issue 1 2002Linn Van Dyne In this research, we develop and test a model of the links between psychological strain (subjective experiences of feeling conflict and tension) and work performance. Our model includes two types of strain (work strain and home strain) and two forms of work performance (quantity of individual sales performance and creativity). Thus we acknowledge the importance of work and non-work sources of strain as well as the multidimensional nature of work performance. We test the proposed relationships with data collected over six months from a field sample of 195 hair salon stylists (personal service workers who interact directly with customers and provide services directly to individuals and not to other firms). Results demonstrate a positive relation between work strain and individual employee sales performance and a negative relation between home strain and employee creativity at work. Leader,member exchange moderated the effects of work strain and home strain on creativity. We discuss findings and implications, emphasizing multiple roles, the importance of differentiating types of strain, and the multidimensionality of work performance. We conclude by suggesting that strain may be particularly relevant to work performance of employees in jobs like those in our sample which are characterized by high social interdependence and low task interdependence. Copyright © 2001 John Wiley & Sons, Ltd. [source] Founding Family Controlled Firms: Performance, Risk, and ValueJOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 1 2001Daniel L. McConaugby An agency theory framework is used to test the effects of founding family control on firm performance, capital structure, and value. Both the finance and management literatures regarding the relationship between firm control and firm value are explored. Controlling for size, industry, and managerial ownership, the results suggest that firms controlled by the founding family have greater value, are operated more efficiently, and carry less debt than other firms. [source] Towards valid measures of self-directed clinical learningMEDICAL EDUCATION, Issue 11 2003Tim Dornan Aim, To compare the validity of different measures of self-directed clinical learning. Methods, We used a quasi-experimental study design. The measures were: (1) a 23-item quantitative instrument measuring satisfaction with the learning process and environment; (2) free text responses to 2 open questions about the quality of students' learning experiences; (3) a quantitative, self-report measure of real patient learning, and (4) objective structured clinical examination (OSCE) and progress test results. Thirty-three students attached to a single firm during 1 curriculum year in Phase 2 of a problem-based medical curriculum formed an experimental group. Thirty-one students attached to the same firm in the previous year served as historical controls and 33 students attached to other firms within the same module served as contemporary controls. After the historical control period, experimental group students were exposed to a complex curriculum intervention that set out to maximise appropriate real patient learning through increased use of the outpatient setting, briefing and supported, reflective debriefing. Results, The quantitative satisfaction instrument was insensitive to the intervention. In contrast, the qualitative measure recorded a significantly increased number of positive statements about the appropriateness of real patient learning. Moreover, the quantitative self-report measure of real patient learning found high levels of appropriate learning activity. Regarding outpatient learning, the qualitative and quantitative real patient learning instruments were again concordant and changed in the expected direction, whereas the satisfaction measure did not. An incidental finding was that, despite all attempts to achieve horizontal integration through simultaneously providing community attachments and opening up the hospital for self-directed clinical learning, real patient learning was strongly bounded by the specialty interest of the hospital firm to which students were attached. Assessment results did not correlate with real patient learning. Conclusions, Both free text responses and students' quantitative self-reports of real patient learning were more valid than a satisfaction instrument. One explanation is that students had no benchmark against which to rate their satisfaction and curriculum change altered their tacit benchmarks. Perhaps the stronger emphasis on self-directed learning demanded more of students and dissatisfied those who were less self-directed. Results of objective, standardised assessments were not sensitive to the level of self-directed, real patient learning. Despite an integrated curriculum design that set out to override disciplinary boundaries, students' learning remained strongly influenced by the specialty of their hospital firm. [source] Strategic dalliances as an enabler for discontinuous innovation in slow clockspeed industries: evidence from the oil and gas industryR & D MANAGEMENT, Issue 2 2008Hannah Noke The concept of ,strategic dalliances', defined as non-committal relationships that companies can ,dip in and out of,' or dally with, while simultaneously maintaining longer-term strategic partnerships with other firms and suppliers , has emerged as a promising strategy by which organizations can create discontinuous innovations. But does this approach work equally well for every sector? Moreover, how can these links be effectively used to foster the process of discontinuous innovation? Toward assessing the role that industry clockspeed plays in the success or failure of strategic dalliances, we provide case study evidence from Twister BV, an upstream oil and gas technology provider, and show that strategic dalliances can be an enabler for the discontinuous innovation process in slow clockspeed industries. Implications for research and practice are discussed, and conclusions from our findings are drawn. [source] Commercial exploitation of new technologies arising from university research: start-ups and markets for technologyR & D MANAGEMENT, Issue 4 2007Fred Pries The creation of start-up firms is an important method of commercializing new technologies arising from R&D at universities and other research institutions. Most research into start-ups presumes that these firms develop products or services. However, start-ups may operate through markets for technology by selling or licensing rights to use their technology to other firms , typically established firms , who develop and sell new products or services based on the technology. In this study of 57 public start-up firms created to commercialize the results of university research, we find evidence that (1) operating through markets for technology is a common approach to commercialization, (2) start-ups that operate in markets for technology can be effectively distinguished in practice from start-ups operating through product markets, and (3) there are substantive differences in the business activities of firms depending on whether they operate through product markets or markets for technology. [source] Communication as a determinant of organizational innovationR & D MANAGEMENT, Issue 1 2000Mika Kivimäki This study of 32 small and medium-sized industrial enterprises explored eight distinct aspects of communication, as appraised by the staff (n = 493), and innovative performance, assessed by two indicators: perceived innovation effectiveness and patent statistics obtained from the Patent Register at the National Board of Patents and Registration of Trademarks. The results showed that intra-organizational aspects of communication, such as encouragement of initiatives and critical evaluation of performance, were associated with both indicators of innovative performance. In addition, a participative climate and interaction between the personnel in R&D, marketing and production were related to perceived innovative effectiveness, whereas interaction with clients and other firms related to the number of patents in the organization. The link between communication and innovation was interdependent with the organizational and staff characteristics including the number of personnel, administrative and R&D intensity, the level of vocational training, and the age distribution of the staff. [source] Choice of Technology and Labour Market Consequences: An Explanation of US-Japanese DifferencesTHE ECONOMIC JOURNAL, Issue 468 2001Hodaka Morita This paper provides an explanation for U.S.-Japanese differences concerning continuous process improvement, turnover rate, and the level and firm-specificity of human capital accumulation. Connection between continuous process improvement and the firm-specificity of training causes multiplicity of equilibria. In the Japanese equilibrium, each firm conducts continuous process improvement because other firms do so, and as a consequence training provided by such a firm becomes less effective in other firms. This lowers the turnover rate, which, in turn, increases firms' incentives to train employees. In the US equilibrium, training is general, which raises the turnover rate and decreases incentives to train. [source] ECONOMICS OF THE LIVING DEAD,THE JAPANESE ECONOMIC REVIEW, Issue 1 2006TAKEO HOSHI Zombie firms are those firms that are insolvent and have little hope of recovery but avoid failure thanks to support from their banks. This paper identifies zombie firms in Japan, and compares the characteristics of zombies to other firms. Zombie firms are found to be less profitable, more indebted, more dependent on their main banks, more likely to be found in non-manufacturing industries and more often located outside large metropolitan areas. Overall, larger size makes the firm less likely to be a zombie, but among small firms, relatively larger firms are more likely to be protected and become zombies. Controlling for profitability, the exit probability for zombie firms does not differ from that for non-zombies. Zombie firms tend to increase employment by more (but do not reduce employment by more) than non-zombies. Finally, when the proportion of zombie firms in an industry increases, job creation declines and job destruction increases, and the effects are stronger for non-zombies. [source] Driven to Distraction: Extraneous Events and Underreaction to Earnings NewsTHE JOURNAL OF FINANCE, Issue 5 2009DAVID HIRSHLEIFER ABSTRACT Recent studies propose that limited investor attention causes market underreactions. This paper directly tests this explanation by measuring the information load faced by investors. The,investor distraction hypothesis,holds that extraneous news inhibits market reactions to relevant news. We find that the immediate price and volume reaction to a firm's earnings surprise is much weaker, and post-announcement drift much stronger, when a greater number of same-day earnings announcements are made by other firms. We evaluate the economic importance of distraction effects through a trading strategy, which yields substantial alphas. Industry-unrelated news and large earnings surprises have a stronger distracting effect. [source] DO OLIGOPOLISTS POLLUTE LESS?THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 4 2007EVIDENCE FROM A RESTRUCTURED ELECTRICITY MARKET Electricity restructuring has created the opportunity for producers to exercise market power. Oligopolists increase price by distorting output decisions, causing cross-firm production inefficiencies. This study estimates the environmental implications of production inefficiencies attributed to market power in the Pennsylvania, New Jersey, and Maryland electricity market. Air pollution fell substantially during 1999, the year in which both electricity restructuring and new environmental regulation took effect. I find that strategic firms reduced their emissions by approximately 20% relative to other firms and their own historic emissions. Next, I compare observed behavior with estimates of production, and therefore emissions, in a competitive market. According to a model of competitive behavior, changing costs explain approximately two-thirds of the observed pollution reductions. The remaining third can be attributed to firms exercising market power. [source] PAYING FOR LOYALTY: PRODUCT BUNDLING IN OLIGOPOLY,THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 1 2006JOSHUA S. GANS In recent times, pairs of retailers such as supermarket and retail gasoline chains have offered bundled discounts to customers who buy their respective product brands. These discounts are a fixed amount off the headline prices that allied brands continue to set independently. We show that a pair of firms can profit from offering a bundled discount to the detriment of other firms and consumers whose preferences are farther removed from the bundled brands. Indeed, when both pairs of firms negotiate bundling arrangements, there are no beneficiaries and consumers simply find themselves consuming a sub-optimal brand mix. [source] Which Tangible and Intangible Assets Matter for Innovation Speed in Start-Ups?,THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 4 2007Ans Heirman The launch of the first product is an important event for start-ups, because it takes the new venture closer to growth, profitability, and financial independence. The new product development (NPD) literature mainly focuses its attention on NPD processes in large firms. In this article insights on the antecedents on innovation speed in large firms are combined with resource-based theory and insights from the entrepreneurship literature to develop hypotheses concerning the antecedents of innovation speed in start-ups. In particular, tangible assets such as starting capital and the stage of product development at founding and intangible assets such as team tenure, experience of founders, and collaborations with third parties are considered as important antecedents for innovation speed in start-ups. A unique data set on research-based start-ups (RBSUs) was collected, and event-history analyses were used to test the hypotheses. The rich qualitative data on the individual companies are used to explain the statistical findings. This article shows that RBSUs differ significantly in their starting conditions. The impact of starting conditions on innovation speed differs between software and other companies. Although intuition suggests that start-ups that are further in the product development cycle at founding launch their first product faster, our data indicate that software firms starting with a beta version experience slower product launch. The amount of initial financing has no significant effect on innovation speed. Next, it is shown that team tenure and experience of founders leads to faster product launch. Contrary to expectations, alliances with other firms do not significantly affect innovation speed, and collaborations with universities are associated with longer development times. [source] The Estimation of a Cusp Model to Describe the Adoption of Word for Windows,THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 1 2004Rense Lange This article revisits earlier work in this journal by Paul Herbig (1991) that proposed a catastrophe model of industrial product adoption under certain conditions. Catastrophe models are useful for modeling situations where organizations can exhibit both smooth and abrupt adoption behavior. It extends Herbig's work by focusing on organizations' adoption of new products when network externalities are an important part of the decision process, and it presents an empirical estimation of the model. Network externalities occur when firms do not want to adopt a new innovation or product unless other firms do. The reason is that they do not want to end up with an innovation that ends up not being a standard of some sort. Mistakes of this nature can be costly as the firm must invest twice and loses time relative to competitors who have not made such a mistake. However, when such externalities exist, for example with regard to technological adoptions, then normal diffusion gives way to sudden discontinuous shifts as all firms seemingly act together an move to a new technology. Since, technology is an area where the authors expect network externalities to exist, that is the focus of this article. The specific application is developed from two sets of panel data on the organizational adoptions of Microsoft's (MS) Word for Windows software by organizations that previously were using either Word for DOS or Word for Macintosh (Mac). The theoretical framework for the analysis is based on work in the economics literature on network externalities. However, the organization and new product development catastrophe model comes primarily from Herbig (1991). The article focuses on an area of organizational adoption where relatively little empirical research has been done, namely organizational adoption "for use." Longitudinal data provided by Techtel Corporation is used to develop the estimations. Results of the empirical analysis are consistent with the theoretical framework suggested in Herbig's article and in those found in economics and catastrophe theory literatures. This lends clear support to the idea that organizations will adopt a bandwagon-type behavior when network externalities are present. It further suggests that in such markets, the standard S-shaped diffusion curve is not an appropriate model for examining organizational behavior. From a managerial perspective, it means that buyers and sellers may face nonstandard diffusion curves. Instead of S-shaped curves, the actual curves have a break or rift where sales end, and there is a sudden shift to a new product that is relatively high very early on. Clearly, for new product development (NPD), it suggest that organizations' "for-use" purchases may be similar to regular consumers and may change rapidly from one product to another almost instantly, as in the case of the switch from vinyl records to compact discs (CDs). From an old product seller's viewpoint, the market is here today and gone tomorrow, while for the new seller it is a sudden deluge of sales requests. To put it in more everyday terms, sudden changes in adoption behavior are a September 11-type experience for the market. It is the day the world changes. [source] SEQUENTIAL MERGERS WITH DIFFERING DIFFERENTIATION LEVELS,AUSTRALIAN ECONOMIC PAPERS, Issue 3 2009TAKESHI EBINA We study sequential merger incentives under presence of product differentiation. Two sets of firms produce closely related goods, whereas each set produces more differentiated goods. Merger incentives under product differentiation are found to be stronger for two firms producing closely related goods than more differentiated goods. Also, after one merger, other firms are willing to follow with their own merger, resulting in sequential mergers. This result is consistent with the recent mergers in the video game software industry in Japan. [source] The Effect of Environmental Turbulence and Leader Characteristics on International Performance: Are Knowledge-Based Firms Different?CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 1 2004Olli Kuivalainen The aim of this paper is to study the effect of environmental turbulence and leader characteristics on international performance. It is suggested that these phenomena explain the differences between knowledge-intensive companies and traditional industrial enterprises in the internationalization process. The empirical part of the study is based on a large cross-industrial survey of Finnish small and medium-sized enterprises. Our results indicate that knowledge-intensive firms have experienced more intensive international growth than other firms. They are also operating in an environment in which technological turbulence is significantly higher, and their leaders put more emphasis on internationalization. Generally, environmental turbulence is a better indicator of international performance in knowledge-intensive firms than in others. Résumé Dans le présent article, nous étudions l'impact de la turbulence environnementale et des caractéristiques des leaders sur la performance internationale. On estime que ces phénomènes rendent compte des différences qui existent, dans le processus d'internationalisation, entre les entreprises à forte concentration de savoir et les entreprises industrielles traditionnelles. La partie empirique de l'étude s'appuie sur une grande enquête trans-industrielle de petites et moyennes entreprises finnoises. Nos résultats indiquent que les entreprises à forte concentration de savoir connaissent une croissance internationale plus grande que les autres entreprises. L'étude montre aussi que les entreprises à forte concentration de savoir opèrent dans un environnement marqué par une plus grande turbulence technologique. Par ailleurs, leurs leaders mettent plus l'accent sur l'internationalisation. D'une façon générale, la turbulence environnementale permet de mieux apprécier la performance internationale dans les entreprises à forte concentration de savoir que dans d'autres entreprises. [source] Selling licences for a process innovation: the impact of the product market on the selling mechanismCANADIAN JOURNAL OF ECONOMICS, Issue 3 2008Aniruddha Bagchi Abstract., This article considers the sale by a research lab of licences for a cost-reducing innovation. The marginal cost of a firm that wins a licence is private information and the acquisition of a licence imposes a negative externality on the other firms. The lab's optimal revenue is determined from a class of mechanisms in which the lab selects the number of licences and the reserve price before the sale. The role of the downstream product market in the determination of the number of licences is analyzed. Furthermore, it is also shown that the optimal reserve price may be zero. Ce mémoire étudie la vente par un laboratoire de recherche de licences pour l'utilisation d'une innovation qui réduit les coûts. Le coût marginal de la firme qui obtient la licence est une information qui demeure privée, et cette acquisition impose un effet externe négatif sur les autres firmes. Le revenu optimal du laboratoire est déterminé par le choix qu'il fait dans une classe de mécanismes: le laboratoire peut choisir le nombre de licences qu'il émettra et le prix le plus bas auquel il est prêt à vendre. On analyse le rôle de la nature du marché du produit en aval sur le nombre de licences. On montre aussi que le prix optimal auquel on voudra vendre peut être zéro. [source] | |||||||||||||||||||||||||