Growth expectations, capital flows and international risk sharing

Over the past decades, cross-border financial flows have increased in importance and have in many occasions exceeded the underlying current account positions. This phenomenon has been accompanied by an increase in the volume of international equity transactions that accentuate the role of international risk sharing as a factor for the macroeconomic response to shocks. We use a stylised two-bloc, two-period model of the global economy, with a simple stochastic productivity shock affecting only one country. Efficient global risk-sharing imply that expected productivity gains in one country will attract equity inflows in excess of those needed to finance the current account. Upward-biased expectations about prospects for the productivity gains can further increase the risk exposure of foreign shareholders. The model is calibrated to show how ex post market losses ­ whether due to "normal" stock market downturn or ex ante over-optimism ­ are distributed and how they affect global consumption and current account positions. The results suggest that international spillover effects of stock market bubbles can contribute to business cycle synchronisation across economic areas. JEL Classification: F41, F32, G15Capital flows, consumption smoothing, international business cycle synchronisation, international risk –sharing, risk aversion

RFID in the supply chain: lessons from European early adopters

Purpose Radio frequency identification (RFID) is increasingly being presented as a technology with the potential to improve supply chain performance, but empirical evidence from early adopters is sparse. This paper aims to rectify this scarcity and contribute to a more informed discussion in and between academic and practitioner communities. Design/Methodology/Approach The paper is based on a conceptual model of factors influencing the success of adoption efforts. It then reports the results of a survey of 612 European supply chain managers, focusing on the 128 respondents who have begun RFID trials. Findings A significant influence on operational deployment is the presence of mandates from key customers requiring the technology’s use. Customer mandates also impact the anticipated benefits of a faster sales cycle and of enhanced systems integration, though the relationships are complex. By contrast, greater cost reduction benefits are anticipated in two industries where mandates are less common – industrial goods and logistics. Perceived organizational innovativeness positively impacts anticipated ROI from RFID. Companies adopting a ‘slap and ship’ approach are less likely to anticipate pricing benefits than those integrating RFID into enterprise systems Research Limitations/Implications The limitations of the paper include the limited sample size of early adopters. In addition, qualitative research is needed into RFID supply chain applications and into different approaches to IS integration of RFID, to inform future survey work. Practical Implications This paper informs supply chain managers and senior decision makers who are examining the potential of RFID technology. It offers guidance on what issues to look for when adopting this technology, approaches to take and the benefits that might be accrued. Originality/Valuer This paper offers a major contribution to understanding the current status of the adoption of RFID in European supply chains. This understanding is put in the context of the wider literatures on supply chain management and the adoption of information systems and te

Open-Source, Open-Architecture SoftwarePlatform for Plug-InElectric Vehicle SmartCharging in California

This interdisciplinary eXtensible Building Operating System–Vehicles project focuses on controlling plug-in electric vehicle charging at residential and small commercial settings using a novel and flexible open-source, open-architecture charge communication and control platform. The platform provides smart charging functionalities and benefits to the utility, homes, and businesses.This project investigates four important areas of vehicle-grid integration research, integrating technical as well as social and behavioral dimensions: smart charging user needs assessment, advanced load control platform development and testing, smart charging impacts, benefits to the power grid, and smart charging ratepayer benefits

Industrial reorganisation in France: changing relationships between large and small firms

Vertreter einer einflußreichen Argumentationsrichtung in der neueren Forschungüber die industrielle Reorganisation in modernen Industriegesellschaften sehen imAufbau zwischenbetrieblicher Vertrauensstrukturen und im relational contracting mögliche Wege, die betriebliche Organisation an die vom Markt geforderte Flexibilität anzupassen (Sabel, Gambetta). Über die zwischenbetrieblichen Beziehungen in Frankreich besteht traditionell die Vorstellung, daß es für große Unternehmen und ihre Zulieferer sehr schwer ist, auf Vertrauen basierende Netzwerke aufzubauen. Unterdessen ist das Verhältnis jedochvon Sub-Contracting geprägt: Die großen Unternehmen geben spezifizierteInformationen über die von ihnen geforderten Leistungen, welche die Subunternehmer detailgetreu auszuführen haben. Berichte und Veröffentlichungender letzten Jahre deuten darauf hin, daß sich das distanzierte Verhältnis der großenUnternehmen und ihrer Zulieferer zunehmend in eine Vertrauens-beziehungwandelt. Dieser Arbeit liegt die These zugrunde, daß die Beziehungen zwischen Zulieferern und großen Unternehmen zwar gewaltige Veränderungen erfahren, daß die Kategorie Vertrauen allerdings das Wesen dieser Veränderungen nichthinreichend erfassen kann. Die großen Unternehmen haben Macht und Einfluß aufdem Markt und politische Ressourcen auf ihrer Seite, was sie in eine starke Position gegenüber ihren Zulieferern versetzt. Bei diesem nach wie vor asymmetrischen Kräfteverhältnis bleiben die großen Unternehmen nach wie vor die stärkeren Partner. -- An influential position in the contemporary study of industrial reorganisationdiscusses the construction of inter-firm trust or relational contracting as ways toadjust the organisation of firms to the flexibility required by the market. Theconventional picture of the relation between large firms in France and small firmswho supply them, suggests that it is very hard for them to construct such trust-basednetworks. Instead, it is one of atomised sub-contracting: the large firm gives verydetailed specifications for the job that needs to be done, and the subcontractorexecutes. In recent years, however, several accounts have suggested that this arms-length relationship between larger firms and suppliers is changing.The argument of this paper is that, while the relationships between suppliers andlarge firms are indeed undergoing tremendous changes, the category of trust doesnot appear to capture the nature of these changes very well. The combined use oftheir market power and the political resources that large firms have at their disposal,allow them to remain the stronger partner in what always was an asymmetric powerrelationship. The argument is supported by detailed discussions of just-in-timedelivery, quality issues and the role of the large firms in organizing small firm finance.

Simplistic vs. Complex Organization: Markets, Hierarchies, and Networks in an 'Organizational Triangle'

Transaction cost economics explains organizations in a simplistic ‘market-vs.-hierarchy’ dichotomy. In this view, complex real-world coordination forms are simply considered ‘hybrids’ of those ‘pure’ and ideal forms, thus being located on a one-dimensional ‘line’ between them. This ‘organizational dichotomy’ is mainly based on relative marginal transaction costs, relative lengths of value-added chains, and ‘rational choice’ of coordination form. The present paper, in contrast, argues that pure ‘market’ and ‘hierarchy’, even including their potential hybrids, are a theoretically untenable and empirically void set. Coordination forms, it is argued, have to be conceptualized in a fundamentally different way. A relevant ‘organizational space’ must reflect the dimensions of a complex world such as dilemma-prone direct interdependence, resulting in strong strategic uncertainty, mutual externalities, collectivities, and subsequent emergent process. This, in turn, will lead either to (1) informally institutionalized, problem-solving cooperation (the instrumental dimension of the institution) or (2) mutual blockage, lock-in on an inferior path, or power- and status-based market and hierarchy failure (the ceremonial dimension of the institution). This paper establishes emergent instrumental institutionalized cooperation as a genuine organizational dimension which generates a third ‘attractor’ besides ‘market’ and ‘hierarchy’, i.e., informal network. In this way, an ‘organizational triangle’ can be generated which may serve as a more relevant heuristic device for empirical organizational research. Its ideal corners and some ideal hybrids on its edges (such as ideal clusters and ideal hub&spoke networks) still remain empirically void, but its inner space becomes empirically relevant and accessible. The ‘Organizational Triangle’ is tentatively applied (besides casual reference to corporate behavior that has lead to the current financial meltdown), by way of a set of criteria for instrumental problem-solving and a simple formal algorithm, to the cases of the supplier network of ‘DaimlerChrysler US International’ at Tuscaloosa, AL, the open-source network Linux, and the web-platforms Wikipedia and ‘Open-Source Car’. It is considered to properly reflect what is generally theorized in evolutionary-institutional economics of organizations and the firm and might offer some insight for the coming industrial reconstructions of the car and other industries.Market vs. Hierarchy; Transaction Costs; Complexity; Institutionalization; Network Formation; Hub&Spoke Supplier Networks; Open-Source Networks

Three uncertainties looming over the European auto industry

The European automotive industry has once again entered a period of uproar. The crisis of 2008/2009 is far from over but probably marks the start of a new era that some observers are starting to refer to as the second automobile revolution. In this article, we will be trying to emphasize three major uncertainties that weigh upon the European automotive industry. The first relates to the future products that the sector is looking to manufacture and sell. This will involve questions about electric vehicles but also how internal combustion vehicles might be sold to more tone-deaf European consumers. The second section will revisit the outsourcing strategies that have arisen over the past 30 years, together with their increasingly obvious limitations. The final section will highlight the profound geographic recomposition that has taken place under our eyes over the past decade or so, and which speaks directly to the issue of Old Europe’s productive capacities in the future.Automobile industry, electric vehicles, industrial architecture, carmakers, industrial geography, first tier suppliers