Market Frictions, Governance and Economic Rents: Taking Stock and Looking Ahead

This paper develops a more unified organizational economics theory within Strategy. We begin with perfectly competitive markets derived from the first fundamental welfare theorem of economics, and develop a parsimonious typology of market frictions. We show how two primary questions in Strategy--why firms exist and why some firms outperform others--can be evaluated from this market frictions logic. Building on this logic enables more systematic explanations and predictions concerning governance structures and economic rents in Strategy research.

Growth and Performance Factors in Polish Manufacturing Firms in 1998-2003 in the Light of Survey Data

We investigate possible factors of change in employment between 1998 and 2003 in 220 companies from four industries of Polish manufacturing (food, electronics, automotive and pharmaceuticals), that were subject to an enterprise survey. We also seek to explain the differences in performance among companies. We find that firms that were more competitive and more innovative laid off relatively less workers. Ownership status and history seem to be relevant factors too, as companies that were started as private businesses slightly increased employment, while the state-owned enterprises experienced proportionally the largest employment cuts; as for privatized companies, those taken over earlier performed better in terms of employment than those privatized later. However, econometric analysis of premia of early privatization and foreign ownership showed that only the latter factor played a significantly positive role for companies' revenues, productivity, profitability and the level of wages.employment, privatization, FDI, competitiveness, manufacturing

Convergence and Diversity in International and Comparative Industrial Relations

[Excerpt] In this essay, we reexamine a critical paradox in international and comparative industrial relations, a paradox that already decades ago demonstrated its ability to intrigue scholarly curiosity (Galenson, 1952,1963; Kerr et al, 1960). As we see it, convergence along a number of important dimensions, such as labor law and organizational and bargaining structure, is occurring simultaneously with widespread cross-national and local divergence, or diversity, in industrial relations practices and outcomes. Along with economic and political interdependence and with intensifications of market competition, convergence and diversity both appear to be product of an increasing spread of markets and ideas sometimes referred to as globalization. In employing this term, we intend to make the point that the conduct of global business is no longer confined to the sort of international trading and related activities that have been carried on for centuries already. In the modern era, the production and exchange of both goods and services occur increasingly on a global scale (Reich, 1991). At this level, as capital mobility expands and trade agreements proliferate (NAFTA, CATT, the single European market), national governments find it increasingly difficult to regulate markets. This globalization of markets, we suggest, is the dominant force driving change (whether toward convergence or diversity) in the contemporary period. Our observations are especially applicable to the advanced industrial countries of the Organization for Economic Cooperation and Development (OECD), the primary focus of this paper, although the trends identified here probably also hold to some extent for newly industrialized countries and less developed societies as well

The Mediating Effect of Emotive Factor on the Constructs That Influence Entrepreneurial Failure

This paper examines the presence of emotive factor that mediates the variables of voluntaristic, deterministic and opportunistic behaviour that impact entrepreneurial failure. The study is a quantitative study and uses causal analysis as its research approach. It relates the constructs of voluntaristic factor, deterministic factor, and opportunistic behaviour with the mediation of emotive factor to entrepreneurial failure. Sample of the study is 1541 nascent entrepreneurs in West Sumatra Province, Indonesia, who have experienced business failures. Analysis was undertaken by using causal step analysis in which the statistical protocol and rule were operated. The study found and argue that emotive factor of entrepreneurs is identified as individual psychological construct that partially mediates voluntaristic, deterministic and opportunistic behaviour in causing entrepreneurial failure experienced by nascent entrepreneurs. Originality and value of the study lies in the framework used – which considers the construct of opportunistic behaviour of entrepreneurs as an independent variable that can cause entrepreneurial failure. Other is related to the consideration that emotive factor that mediates the voluntaristic, deterministic and opportunistic behaviour in causing entrepreneurial failure.Abstrak dalam Bahasa Indonesia Penelitian ini membahas tentang keberadaan faktor emosi yang memediasi variabel voluntaristic, deterministic dan perilaku opportunis yang mengakibatkan terjadinya kegagalan berwirausaha. Studi ini merupakan studi kuantitatif dan menggunakan analisa kausal sebagai pendekatan penelitian. Sampel penelitian sebanyak 1541 orang wirausahawan pemula di Provinsi Sumatera Barat, Indonesia yang sebelumnya pernah mengalami kegagalan dalam berwirausaha. Analisa dilakukan dengan menggunakan causal step analysis yang menggunakan prosedur statistik tertentu. Studi ini menemukan dan lebih lanjut berpendapat bahwa faktor emotsi wirausahawan diidentifikasi sebagai konstruk psikologis individu yang secara parsial memediasi hubungan faktor voluntaristic, faktor determiniastic dan perilaku opportunis sebagai penyebab terjadinya kegagalan berwirausaha yang dialami oleh wirausahawan pemula. Keaslian dan nilai dari studi ini terletak pada kerangka penelitian yang digunakan, yang menempatkan faktor perilaku opportunis sebagai variabel bebas yang dapat mengakibatkan kegagalan berwirausaha. Hal lainnya terletak pada adanya unsur faktor emotsi yang memediasi faktor voluntaristic, faktor determiniastic dan perilaku opportunis sebagai penyebab kegagalan berwirausah

Policy in the Wake of the Banking Crisis: Taking Pluralism Seriously

This paper explores a pluralist approach to policy with respect to the financial system in the wake of the crisis. We consider first what is involved in a pluralist approach to policy more generally, and how this may be justified. This includes a pluralist stance with respect to different approaches to economic theory, pluralism in the sense of interdisciplinary enquiry, pluralism in terms of range of methods employed, and pluralism with respect to recognition of the plurality of culture and values in society. Implications are drawn for how the banking crisis is framed, how it is explained by theory and thus how policy is designed. In addressing these issues, current mainstream theory focuses on a narrow definition of rational behaviour which, within competitive markets, generates a socially-optimal outcome. This approach is governed by a mathematical formalist methodology, and encourages policy to incentivise this kind of rational behaviour, with respect for example to inflation targeting and addressing moral hazard. Pluralist theory would instead recognise the socio-psychological and institutional/evolutionary foundations of money and banking, such that policy needs to focus on rebuilding confidence and addressing moral (including distributional) issues. The relevant analysis would require a range of methods and would address pluralities within society

Thinking about growth : a cognitive mapping approach to understanding small business development

School of Managemen

The National Dialogue on the Quadrennial Homeland Security Review

Six years after its creation, the Department of Homeland Security (DHS) undertook the first Quadrennial Homeland Security Review (QHSR) to inform the design and implementation of actions to ensure the safety of the United States and its citizens. This review, mandated by the Implementing the 9/11 Commission Recommendations Act of 2007, represents the first comprehensive examination of the homeland security strategy of the nation. The QHSR includes recommendations addressing the long-term strategy and priorities of the nation for homeland security and guidance on the programs, assets, capabilities, budget, policies, and authorities of the department.Rather than set policy internally and implement it in a top-down fashion, DHS undertook the QHSR in a new and innovative way by engaging tens of thousands of stakeholders and soliciting their ideas and comments at the outset of the process. Through a series of three-week-long, web-based discussions, stakeholders reviewed materials developed by DHS study groups, submitted and discussed their own ideas and priorities, and rated or "tagged" others' feedback to surface the most relevant ideas and important themes deserving further consideration.Key FindingsThe recommendations included: (1) DHS should enhance its capacity for coordinating stakeholder engagement and consultation efforts across its component agencies, (2) DHS and other agencies should create special procurement and contracting guidance for acquisitions that involve creating or hosting such web-based engagement platforms as the National Dialogue, and (3) DHS should begin future stakeholder engagements by crafting quantitative metrics or indicators to measure such outcomes as transparency, community-building, and capacity