Capability Matrix : A Framework for Analyzing Capabilities in Value Chains

This paper develops a Capability Matrix for analyzing capabilities of developing country firms that participate in global and national value chains. This is a generic framework to capture firm-level knowledge accumulation in the context of global and local industrial constellations, by integrating key elements of the global value chain (GVC) and technological capabilities (TC) approaches. The framework can visually portray characteristics of firms’ capabilities, and highlight a relatively overlooked factor in the GVC approach: local firms’ endogenous learning efforts in varieties of relationship with lead firms.Developing Countries, Industrial Management, Business Enterprises, Capability Matrix, Capabilities, Value Chains, Lead Firms, Local Firms

Tourism supply chain & strategic partnerships for managing the complexity in tourism industry

The paper aims to investigate the possible relationship between Tourism Supply Chain and Strategic Partnership, read as a way to reduce and better manage the complexity in Tourism Industry. This last has been analysed under multi-disciplinary approaches (economic, sociological, psychological, anthropological and geographic) to better understand its main components. A synthesis of origin of Tourism Supply Chain term was provided. VRIO framework and PEST analysis was used with the aim to better understand the strategic decision of integration the chain with a single or multiple rings. Starting from this, a theoretical framework from a holistic analysis is provided

Does institution type affect access to finance for cassava actors in Nigeria?

The cassava system in Nigeria is developing, with increasing attention to its potential positive outcomes. However, credit access is a major problem in expanding productive activities of the different actors across the value chains of cassava products. This study investigates the extent of access to credit by cassava actors with respect to the different financial institutions in the country using data obtained from a sample of 168 actors, including producers, processors, marketers, fabricators and end users. The study found that commercial banks had the highest disbursement rate (88.0%) despite higher interest rate charged, while government banks had the least (73.6%). Processors (79.5%) and marketers (79.4%) had highest credit access rate while fabricators (67.5%) had the least. Regression results revealed that cassava actors that patronized commercial banks particularly those who are medium scale had access to higher amount of credit. However, female actors and those using cooperative banks secured lower credit amount. In line with the results, Nigeria should champion private-sector-led credit provision through appropriate policies aimed at improving the capacity of the institutions. Financial institutions should be strengthened for better credit access by the cassava actors, and hence improve their productivity

Organisation of Innovation in High-Tech Industries: Acquisitions as Means for Technology Sourcing.

Innovation activities in the semiconductor industry provide considerable challenges for technology and innovation management. In particular, firms frequently face make-or-buy decisions and such decisions have considerable management implications. The semiconductor industry has a long history of radical innovations which are taking place through distinct industry cycles of high and low demand. The paper investigates these issues for the Electronic Design Automation industry which is a specific sub-segment of the semiconductor industry. Based on database searches and structured interviews, the paper analyses empirically the reasons for make or buy decisions with regard to innovation and the level of acquisition activities of innovative small firms in the Electronic Design Automation industry. This analysis is supported by an analysis of the SEC filings of large firms in the Electronic Design Automation industry.

Long-term Financing in US and European Agricultural Co-operatives: Emerging Methods for Ameliorating Investment Constraints

During recent years, dramatic changes in the world food system have led to unprecedented competition between agribusiness firms. To compete in this environment, agricultural cooperatives should invest substantially in long-term activities such as R&D and advertisement. Co-operatives have a difficult problem in acquiring equity capital because the residual claimant (benefactor) is the patron of the firm, not the investor. This organizational design poses to cooperatives three investment constraints: a) the free rider problem, b) the horizon problem, and c) the portfolio problem. Empirical analysis utilizing a latent variable structural equation model and a large dual response survey suggests that in the U.S. member-patrons are more likely to invest in co-operatives which adopt well defined property rights policies and structures than traditional co-operatives characterized by vaguely-defined property right structures. Agribusiness co-operatives in the European Union are gradually adopting long-term financing methods that possess one or more of the characteristics found in successful U.S. 'New Generation Cooperatives.' However, it seems that they have paid less attention in designing their organizational structures (e.g., membership policies). This may inhibit their efforts to gain a competitive advantage over investor-owned firms.agribusiness co-operatives, Investment constraints, Structural equation model, Agribusiness, Agricultural Finance,

Internationalisation in the household appliances sector in Fabriano (Italy). A case study

This paper analyses the household appliances district of Jesi-Fabriano. It shows how the internationalisation strategies of many enterprises are gradually modifying the organizational structure of the local production system. The diverse goals that have led the internationalisation processes and the strategies chosen by enterprises to effectively approach far away markets are at the core of the paper that includes a broad review of the fragmentation actions of the local enterprises. Special attention is paid to the effects of the internationalisation process on the relationships among actors along the whole filire and on the models of internal enterprise management. After an analysis of the history of the district and its current transformations, the main conclusions focus on possible scenarios regarding external and endogenous factors, on the main opportunities that enterprises should seize in order to successfully complete the ongoing internationalisation process and on the important role of local and national institutions in supporting the evolution of the model of local economic development.Internationalisation, Iinternational Fragmentation, Industrial Districts, Household Appliance Industry

Corporate social responsibility and inventory policy

In this article, we study the impact of implementing corporate social responsible (CSR) practices on a firm’s inventory policy. Our proposal is that there is an inverted U-shape relationship between firms’ CSR and their inventory levels. Two elements explain such proposal. First, stakeholders have different interests regarding the outcome of the inventory system. Specifically, we hypothesize that customers pressure firms to increase inventories; employees have conflicting views regarding inventories and, for this reason, they do not pressure firms in a particular direction; and environmental activists force firms to reduce inventories. The second reason is that there is different level of stakeholder proactiveness contingent on the intensity in the implementation of social responsible policies. In particular, we posit that for low levels of CSR, customers are more relevant, while for larger levels other stakeholders gain more importance. We test this theoretical prediction by crossing two databases, COMPUSTAT, for financial data, and KLD for data on social responsibility. Our final database contains data on 1881 different US companies for the period 1996-2006. The results found conform to our theoretical prediction. Our analysis will be helpful to strategic and tactical decision-making processes on inventory management and will allow researchers to offer concrete advice on the likely outcomes of various stakeholder relationship practices in order to improve the effectiveness of inventory systems. Additionally, the connection between CSR and inventory policies has interest at a macroeconomic level given that, on the one hand, there is a growing tendency for firms to behave in a socially responsible way. On the other, inventories are responsible for up to 87% of the total peak-to-trough movement in GDP. Thus, our results suggest that this tendency to incorporate the social dimension in firms’ strategy should smooth out the overall economic cycle given that firms apply more intensive CSR policies in the expansive periods (decreasing inventories) rather than during the downturns (increasing inventories).Corporate social responsibility, Stakeholders, Inventories